Nycomed sells pharma unit to Nordic Capital

Anglo-Norwegian health care group Nycomed Amersham has agreed to sellits Scandinavian pharmaceuticals subsidiary Nycomed Pharma to a new company, which will be 70% owned by private equity group Nordic Capital, for L340 million ($547.2 million). Nycomed will own 30% of the new entity once it reinvests L21 million for its equity interest and after the transaction is completed, its immediate cash proceeds will be L275 million.

Nycomed's chief executive Bill Castell said that the company can now focus on its imaging and life sciences units, and claimed that the group is "delighted to have found such a good home for our pharmaceuticals business." Industry observers believe that the sale paves the way for Nycomed to buy out Pharmacia & Upjohn's 45% stake in Amersham Pharmacia Biotech.

Nycomed Pharma had sales of L270 million and postoperating profits of L37.7 million in 1998. Hakan Bjorklund, formerly regional director for Northern Europe at Astra, has been appointed as chief executive and the company says it aims to list the new company within five years.