Danisco sells part of Genencor's Health Care product portfolio
Danisco sells part of Genencor's Health Care activities to Cambridge Antibody Technology (CAT) for USD 14 million. On closing, Danisco will hold USD 14 million in shares in CAT subscribed at market price. The CAT shares that Danisco will receive are free of any restrictions. The transaction is expected to close on 4 November 2005.
As announced on 1 August 2005, Genencor continued the development activities for GCR-8015 (pre-clinical) and GCR-3888 (clinical), two compounds for hematological malignancies. These activities have been successfully divested to CAT, which will also be hiring certain former Genencor key employees to be responsible for the development of these programmes.
CAT may be required to pay Danisco an additional consideration of up to USD 2 million, contingent on the availability for use in a clinical trial of bulk product material produced by Genencor, bringing the total consideration up to a possible USD 16 million.
From 1 November 2005, there will no longer be any staff employed in Genencor's Health Care segment.
The net restructuring costs involved and the possible proceeds from the sale of the Health Care activities were included in Danisco's previously announced DKK 300-350 million range of special items for 2005/06.
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