Dublin-based biopharmaceutical company Ovoca Bio said it had agreed the sale of some of its Russian assets, amid ongoing international sanctions imposed following the war in Ukraine.
The company, which is focused on women’s health, said it had agreed to sell some assets to private Russian company Desirix, for 84.6 million Russian roubles in cash, about €1.05 million at the current exchange rate. The deal includes the Russian patents for its clinical development product Orenetide, the results of completed scientific development of Orenetide in Russia, and the right to own a Russian marketing authorisation for Orenetide in Russia.
The proceeds from the disposal will be used for general corporate purposes.
The sale is expected to be completed by March 31st, and will mark the end of Ovoca’s operations in Russia, with its Russian subsidiary IVIX transferred to an inactive, non-operating status.
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The board said the sanctions and ongoing conflict meant there was no longer any practical opportunity for Ovoca to further invest in, or conduct normal operations and generate income for shareholders from, operating in Russia. It also cited potential legal and reputational risks for the company.
Ovoca will continue with its clinical development plans for Orenetide in major global markets.
“Regretfully, it has proved increasingly difficult to continue Ovoca’s operations in Russia under the current constraints and this has led us to conclude that a disposal of our Russian assets is the correct course of action for the wider business,” said Kirill Golovanov, chief executive of Ovoca Bio.
“However, we are optimistic about further increasing the value of our global assets associated with Orenetide as a potential treatment for hypoactive sexual desire disorder in wider international markets, including the US and EU.”
