TIDMDUKE
RNS Number : 7443D
Duke Royalty Limited
01 July 2021
1 July 2021
Duke Royalty Limited
("Duke Royalty", "Duke" or the "Company")
New Royalty Agreement with Fairmed Healthcare AG
Duke Royalty, a provider of alternative capital solutions to a
diversified range of profitable and long-established businesses in
Europe and abroad, is pleased to announce that it has further
diversified and increased its revenue base by entering into a EUR10
million royalty financing agreement (the "Financing") with Fairmed
Healthcare AG ("Fairmed"). Formed in 2012 and based in Zug,
Switzerland, Fairmed provides high quality generic prescription
medicines, over-the-counter pharmaceuticals, dermocosmetics and
dietary supplements in various EU countries.
Highlights:
-- Duke was selected as Fairmed's capital partner because of the
long-term nature of its capital and because it was able to
structure a non-dilutive solution for management while maintaining
its required internal rate of return.
-- Fairmed is majority owned by Strides Pharma Global Pte Ltd
("Strides Pharma Global") which is in turn a wholly-owned step-down
subsidiary of Strides Pharma Science Limited ("Strides"), a listed
public company.
-- Incorporated in 1990, Strides is a global pharmaceutical
company with more than 3,000 employees, headquartered in Bangalore,
India. Strides has a global manufacturing footprint with eight
manufacturing facilities spread across three continents with a
strong footprint across 100 countries.
-- Strides Pharma Global acquired its interest in Fairmed in
2019 to provide it with a platform for distribution of its
pharmaceutical products in the EU, post-Brexit.
-- The EUR10 million royalty is a 30-year senior secured
financing, with monthly payments commencing immediately in July
2021 on Duke's typical investment terms.
-- Duke has negotiated a comprehensive security package as the senior lender to Fairmed.
Neil Johnson, CEO of Duke Royalty, said:
"Fairmed's long history of operating in the EU
generic/over-the-counter pharmaceutical sector and the
well-established underlying demographic growth characteristics of
the market in which it operates, makes this an ideal investment
opportunity for Duke. Fairmed has reached an inflection point in
the evolution of its business plan that allowed Duke to propose its
alternative financing solution to support the business without
diluting management's equity stake.
"The business has an established track record of effectively
delivering growth, providing Duke with confidence in the team's
ability to continue this trend in the months and years ahead.
Strides' vision and strong backing of Fairmed in the post-Brexit EU
medical regulatory environment has given us additional confidence
in completing the opportunity.
"Duke is well positioned to make more investments in due course
as we focus on further deploying capital and diversifying the
portfolio to create value for shareholders."
Oren Weininger, CEO of Fairmed, said:
"Duke's investment solution has been a great fit for our group
of companies. Using the proceeds from this investment, we are
excited to take Fairmed's business plan to the next level and build
on the excellent reputation of the firm in the EU."
Further information regarding Fairmed
https://www.fair-med.com/
Formed in 2012 and based in Zug, Switzerland, Fairmed provides
high quality generic prescription medicines, over-the counter
pharmaceuticals, dermocosmetics and dietary supplements in c. 15
core markets. The combination of Strides' vast international
product portfolio and Fairmed's market access, particularly in the
Germany/Austria/Switzerland region, provides a strong growth
platform in continental Europe.
About Strides
Incorporated in 1990, Strides Pharma Science Limited is a global
pharmaceutical company with over 3,000 employees, headquartered in
Bangalore, India. The company has a global manufacturing footprint
with eight manufacturing facilities spread across three continents
with a strong footprint across 100 countries.
About the Financing
Duke has committed EUR10 million of capital to enable the
current management team to maintain its minority equity interest
and shape the future growth of the business with support from
Strides Global in the form of supply of products and strategic
alignment.
The terms of the Financing are in line with Duke's typical
royalty investment criteria whereby Duke will be entitled to
monthly distributions (the "Distribution") beginning in July 2021.
The Financing is provided as a senior secured loan with appropriate
covenants and rights.
Duke Royalty Portfolio
A full list of Duke's current Royalty Partners are now included
for reference on our Partners page of our website:
www.dukeroyalty.com/partners
This announcement contains inside information.
***ENDS***
For further information, please visit www.dukeroyalty.com or contact:
Neil Johnson / Charlie
Cannon Brookes / Hugo
Duke Royalty Limited Evans +44 (0) 1481 730 613
Cenkos Securities
plc Stephen Keys / Callum
(Nominated Adviser Davidson / Julian Morse
and Joint Broker) / Michael Johnson +44 (0) 207 397 8900
Canaccord Genuity Adam James / Georgina
(Joint Broker) McCooke +44 (0) 207 523 8000
SEC Newgate (PR) Elisabeth Cowell/ Richard + +44 (0) 20 3757 6880
Bicknell/ Megan Kovach dukeroyalty@secnewgate.co.uk
About Duke Royalty
Duke Royalty Limited provides alternative capital solutions to a
diversified range of profitable and long-established businesses in
Europe and abroad. Duke Royalty's experienced team provide
financing solutions to private companies that are in need of
capital but whose owners wish to maintain equity control of their
business. Duke Royalty's royalty investments are intended to
provide robust, stable, long term returns to its shareholders. Duke
Royalty is listed on the AIM market under the ticker DUKE and is
headquartered in Guernsey.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
AGRWPUMWQUPGGMU
(END) Dow Jones Newswires
July 01, 2021 02:00 ET (06:00 GMT)
Duke Capital (LSE:DUKE)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Duke Capital (LSE:DUKE)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
