Magle Group SEK 36.8m Capital Raise | Q4 2024

About Magle Group 

The Magle Group aims to establish itself as a leader in high-quality life-changing healthcare innovations to meet medical needs through scientific excellence. The Magle Group is founded on strategic acquisitions aimed at driving growth and diversifying risk. Today, the Group includes three operational areas. Magle Chemoswed – a contract development and manufacturing organization (CDMO) with a strong reputation for its high-quality development and manufacturing expertise, Magle PharmaCept – an established sales and marketing company for development and direct sales of the Group’s medical technology products and Magle Biopolymers A/S – a specialized manufacturing organization of Dextran technology. Learn more on www.maglechemoswed.com, www.maglegroup.com, www.maglepharmacept.com and www.maglebiopolymers.com. 

Press release

Background and motive 

The health and pharmaceutical industries are evolving rapidly and require new approaches and strategic partnerships to remain competitive and meet emerging market needs. During the second half of 2024, Magle Group has merged with both Amniotics and pK Chemicals to create a larger player that offers contract development and manufacturing services (CDMO) and sales of the group’s medical devices. 

The mergers with Amniotics and pK Chemicals have combined resources and expertise, which is opening up new growth opportunities and operational efficiencies. Magle Group will be able to offer a broad portfolio of products and services, which includes technical dextran, dextran derivatives, DSM-based products, active pharmaceutical ingredients, tailor-made pharmaceutical and medical solutions. This strategic path will lead to an expanded presence globally, addressing new markets and customer segments, further diversifying the combined group’s revenue sources and increasing market penetration and potential revenue growth. 

Furthermore, the mergers are expected to create value for the shareholders of Magle Group through synergies in the form of, among other things, increased production capacity, improved CDMO capacity, management expertise, expertise in business development and broadened service offering. In addition, synergies are expected in the form of reduced overhead and financing costs. In total, the value of synergies from such cost savings is estimated to amount to between SEK 13 and 24 million annually and will be released within 12 to 36 months. These mergers, although they are expected to contribute synergies and cost savings over time, have resulted in increased debt in Magle Group, whereby the Board of Directors believes that it would be advantageous for the Company to optimize the capital structure through a new issue of shares to finance the repayment of outstanding loans. 

Website: https://maglegroup.com/