Peptonic is a fintech company that develops and sells medical treatments and lifestyle products. Pharmiva for its part, is in full swing with the market launch of Vernivia, a product for the treatment of bacterial vaginosis. The two companies recently announced their intention to merge their businesses. It is a seemingly logical deal, with Vernivia complementing Peptonic's self-tests for the diagnosis of vaginal infections.
Creating new conditions for growth
"During the spring, we have worked intensively to ensure that the values that have been built up in Pharmiva to date are realized. Vernivia has been very well received on the Swedish market and will also be launched in Norway after the summer. In the ongoing work on geographical expansion, there are great advantages in being able to offer partners and distributors a broader product portfolio. The proposed merger with Peptonic is considered to create new conditions for expanding and launching in new markets for the companies," writes Pharmiva's CEO. Anna Linton in a comment on the merger.
The merger needs approval
According to the letter of intent, Peptonic's ownership interest in the new company will amount to approximately 85 percent. As merger consideration, shareholders in Pharmiva will receive twelve shares in Peptonic for each share they own in Pharmiva.
The completion of the merger is dependent on the boards of both companies deciding to adopt a joint merger plan and the approval of the merger at an extraordinary general meeting of Pharmiva. Shareholders representing approximately 37 percent of the shares in Pharmiva have committed or announced their intention to vote in favor of the proposed merger at the extraordinary general meeting, provided that other conditions are met.
Erik Sundquist, CEO of Peptonic, shares Anna Linton’s enthusiasm about the merger and looks forward to the operational and synergistic savings it will bring. He also notes that the merger will strengthen parts of the organization and that the new company will take “another very important step towards establishing a leading Swedish company in a global – and important – market.”
Further consolidation in the industry
The merger between Pharmiva and Peptonic is not the only deal on the Swedish femtech scene this year. In January, Lundabolaget announced Invent Medic acquiring the menstrual cup specialist FlowCup for a purchase price of approximately SEK 3,7 million. FlowCup is already one of Peptonic's sector colleagues, which offers intimate products through the brand Bezel.
Whether we will see continued consolidation in the near future remains to be seen. Invent Medics definitely has that ambition. If so, BioStock will have reason to return to the subject.