SurModics to sell Pharma assets to Evonik for $30 million

SurModics, Inc.Nov 2 2011

SurModics, Inc. (Nasdaq: SRDX), a leading provider of surface modification technologies to the healthcare industry, announced today that it has entered into a definitive agreement to sell its SurModics Pharmaceuticals assets to Evonik Industries AG ("Evonik") for $30 million in cash. Under the Asset Purchase Agreement, the entire portfolio of products and services of SurModics Pharmaceuticals, including the Company's cGMP development and manufacturing facility located in Birmingham, Alabama, will be acquired by Evonik. This grants Evonik ownership of SurModics' parenteral dosage technology platforms and services and bioresorbable lactide-glycolide polymers business.

"The sale of the Pharma assets is an important milestone towards achieving our goal of returning SurModics to sustainable, long-term profitability," said Gary Maharaj, president and chief executive officer. "This transaction will allow us to focus our full resources to advancing our core Medical Device and IVD businesses. Furthermore, the proceeds from the sale significantly strengthen the Company's financial profile."

"After conducting an efficient and thorough review process of our strategic alternatives, we believe this sale creates compelling value for all of the Company's stakeholders, including the employees of the Pharma business and the Birmingham community," continued Mr. Maharaj. "SurModics is grateful for the hard work and accomplishments of the Pharma employees and is confident in the opportunities created by the strong strategic fit with Evonik."

"Evonik's acquisition of SurModics' pharmaceuticals assets demonstrates our view of the pharmaceuticals market as a strategic core business in which we intend to continue to invest and grow. In addition to its parenteral products and biodegradable polymers, such as Lakeshore Biomaterials™ portfolio of polymers, its skilled employees and comprehensive services will add critical value to Evonik's operations. Together, we will operate as one stronger entity with the aligned strategy of becoming the leading global supplier of solutions for the parenteral and implant-based pharmaceutical forms," said Jean-Luc Herbeaux, head of Evonik's Health Care Business Line.