Orion to sell its Orion Diagnostica division - Due to the transaction Orion updates its outlook - Seite 2

"Together with Orion Diagnostica's management and employees, we intend to further develop the company into an even stronger operator in the global diagnostics market. On the back of an attractive customer proposition and a strong market position, we see great opportunity to grow Orion Diagnostica further both geographically and by expanding its product offering", says Thomas Blomqvist, Partner at Axcel.

Orion Diagnostica
In the Orion Group Orion Diagnostica is a second business area, in addition to the Pharmaceuticals business area, and in the Financial Statements it is reported as its own segment. During the 2017 financial period, Orion Diagnostica's net sales were EUR 54 million (about 5% of the Orion Group's net sales) and its operating profit was EUR 8.9 million (about 3% of the Group's operating profit). Its assets were EUR 52 million (about 5% of the Group's assets). At the end of 2017 Orion Diagnostica had 282 employees (about 8% of the Orion Group's employees).

Orion Diagnostica operates as an independent business, and it has no material business synergies with the Pharmaceuticals business.

As a result of the sale of Orion Diagnostica, Orion is updating its outlook for 2018 that was announced on 7 February 2018. Following the transaction Orion Diagnostica business will be reported as a discontinued operation. In the future, the Orion Group will have only one reporting segment, Pharmaceuticals business.
 
Updated outlook announced on 20 April 2018:
Due to generic and price competition Orion estimates that in 2018 the net sales excluding Orion Diagnostica will be at the same level or slightly lower than in 2017 (net sales were EUR 1,034 million excluding Orion Diagnostica in 2017).

Orion continues persistent actions to generate growth. Due to the estimated sales development and these actions the operating profit excluding Orion Diagnostica and material capital gains is estimated to be lower than in 2017 (operating profit excluding Orion Diagnostica and capital gains was EUR 284 million in 2017).

Orion estimates to recognise EUR 128 million capital gain in other operating income from the sale of Orion Diagnostica at the closing of the transaction. Due to the uncertainty relating to the variable component included in the transaction, the estimated capital gain does not include any part of the variable component.

Previous outlook announced on 7 February 2018:
Due to generic and price competition we estimate that in 2018 net sales will be at the same level or slightly lower than in 2017 (net sales were EUR 1,085 million in 2017).