Biotie Announces Restructuring Plan: Spin-Off in Radebeul
On October 29th Biotie announced that it will implement a restructuring plan to focus its business exclusively on clinical development and will transfer all operations to its headquarters in Finland. The restructuring would result in significant personnel and cost reductions. These initiatives are designed to leverage the company's development expertise and focus resources on the clinical assets that the company believes will best enhance shareholder value.
As part of the restructuring process, Biotie will spin-off its site in Radebeul, Germany in an MBO transaction and will take a minority interest in the spin-off company, biocrea GmbH. Thomas Kronbach, Biotie's Chief Scientific Officer, will leave Biotie to become Managing Director of the new entity, into which all employees and all pre-clinical assets of Biotie Therapies GmbH (Biotie's subsidiary in Radebeul, Germany) will be transferred.
Biotie will provide initial funding in the amount of up to EUR 4.8 million over the next 12 months to start off the new business, but it is anticipated that biocrea will attract and mainly rely on independent funding sources in the future. While Biotie will retain its German subsidiary Biotie Therapies GmbH, there will be no business operations or employees in its German site going forward.
source: Biotie Therapies Corp., Stock Exchange Release from October 29th, 2010