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July 17, 2006 - Volume 84, Number 29
- p. 11
PHARMACEUTICALS
Pharma Deal
German software mogul is leading the merger of two biopharma companies into one firm
Patricia Short
Dietmar Hopp, cofounder of industrial software giant SAP, is turning his attention to the drug industry. Hopp is leading the formation of a new company, as yet unnamed, through a complex merger of two German biopharmaceutical firms, Axaron Bioscience and Lion Bioscience.
The company will have funds of approximately $65 million and focus on central nervous system diseases. A little more than 40% of the funding will come from Hopp and his family. BASF, the majority shareholder in Axaron, will put in 14%, and the remainder will come from Lion. The Hopp family also has offered to buy out Lion shareholders.
The name of the new company will be decided at Lion's annual meeting this fall. It will be headed by Alfred Bach, who is on the management board of Axaron, and Peter Willinger, a Lion board member. The company aims to continue to expand through a combination of organic growth and acquisitions.
"I see great potential in the area of life sciences and in its professional business development," Hopp says. "The products, the past performance, and the expertise at Axaron convinced me to invest in this company. In addition, I believe we have gained an experienced partner and strong platform in the financial market in the form of Lion."
Axaron was founded in 1997 as a joint venture between BASF and California-based Lynx Therapeutics, now Solexa, and became independent in 2001. Lion was founded in 1997 to focus on integrating data and information in the life sciences field. New managers restructured the company at the end of 2004.
- Chemical & Engineering News
- ISSN 0009-2347
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