Norsk Hydro, who said the divestment is in line with its strategy of focusing on core activities, warned of a possible sale late last year.
This is Ferd's second acquisition in the health area, after investing in Collett Pharma early in December. Pronova already has a distribution agreement with Collett for sales to the consumer market and while Ferd said that there are no plans to merge the two companies, there may be further collaboration between the businesses.
The market for omega-3 fatty acids is growing strongly throughout the world, both in dietary supplements and as pharmaceuticals. In 2002, Pronova's turnover was NOK 266 million and it made an operating loss (EBIT) of NOK 10 million. Turnover in the current year however is likely to exceed NOK 300 million and the firm is expected to operate at a profit.
Most of Pronova's turnover takes place outside Norway. Sales of its Omacor pharmaceutical for secondary prevention in patients suffering a heart attack, are growing fast, with turnover up by almost 70 per cent in 2003. Belgium's Solvay and Spain's Grupo Ferrer license rights to the product in various European countries.
The company also has three consumer brands - Triomega, Pikasol and Triomar - and has seen strong growth in its industrial brands, giving it a global market share of around 20 per cent of the segment.
New owner Ferd Private Equity said it plans to invest around NOK 300 million in increased capacity at Pronova's pharmaceutical factory in Sandefjord over the next few years.
Pronova Biocare is currently producing at full capacity and in October last year said it would spend more than €6 million on increasing production at its Alesund plant to meet the rapid growth in the market for marine omega-3 fatty acids over the last year. The first batches from the new plant are expected this month with full capacity due by the end of the first quarter of 2004.
Last year, a study in The Lancet (3 February 2003) found that the omega-3 fatty acids used in Omacor were able to transform the fatty lesions in the blood vessels of patients with atherosclerosis into scars, making them less likely to rupture or form clots. The team, from the University Hospital in Southampton, UK, are now studying Omacor itself to see if it can prevent a second stroke in patients who have already suffered a first minor stroke.
Ferd Private Equity, which has a capital base of NOK 600 million, is managed by Gert W. Munthe, Tore Rynning-Nielsen and Morten Blix. It currently has a pre-emption right to take over Hydro's remaining holding.
