Knight Therapeutics Closes Share Sale to Medison Biotech
Knight Therapeutics Inc. has completed a transaction to sell its stake in Medison Biotech (1995) Ltd. for $77 million, finalizing the separation of their businesses.
Knight Therapeutics Inc. announced the closing of its previously disclosed transaction to separate its business interests from Medison Biotech (1995) Ltd. The deal involves Knight selling its 28.3% stake in Medison Biotech for a total consideration of $77 million.
Under the terms of the agreement, Knight Therapeutics received 75% of the payment, amounting to $57.75 million, at closing. The remaining 25%, totaling $19.25 million, will be held in escrow by a trustee and is expected to be released to Knight upon the issuance of a tax certificate by the Israel Tax Authority.
Knight Therapeutics, headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and select international markets. Its shares trade on the TSX under the symbol GUD.
The separation from Medison Biotech, an Israeli pharmaceutical company, marks a strategic shift for Knight Therapeutics. While the specifics of the rationale were not detailed in the press release, such divestitures can enable companies to refocus on core operations or pursue new growth opportunities.