Business
New Royalty Agreement with Fairmed Healthcare AG
New Royalty Agreement with Fairmed Healthcare AG.
About this update from Duke Capital Limited
[{"type":"text","content":"\n \n \n \n RNS Number : 7443D\n Duke Royalty Limited\n 01 July 2021\n \n \n \n \n 1 July 2021\n \n \n \n \n \n Duke Royalty Limited\n \n \n \n \n \n (\"Duke Royalty\", \"Duke\" or the \"Company\")\n \n \n \n \n \n New Royalty Agreement with Fairmed Healthcare AG\n \n \n \n \n \n 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 €10 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. \n \n \n \n \n \n Highlights:\n \n \n \n \n \n · \n Duke was selected as Fairmed's capital partner because of the long-term nature of its \n capital and because it was able to structure a non-dilutive solution for management while maintaining its required internal rate of return.\n \n \n · \n 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. \n \n \n · \n 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.\n \n \n · \n 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.\n \n \n · \n The €10 million royalty is a 30-year senior secured financing, with monthly payments commencing immediately in July 2021 on Duke's typical investment terms.\n \n \n · \n Duke has negotiated a comprehensive security package as the senior lender to Fairmed.\n \n \n \n \n \n Neil Johnson, CEO of Duke Royalty, said:\n \n \n \n \n \n \"Fairmed's long history of operating in the EU generic/over-the-counter pharmaceutical sector and the well-established underlying de...