Shop Apotheke, Galenica edge up on JV plans in Switzerland

Galenica AG

30/03/2023 09:30

** Shares in Shop Apotheke  SAEG.DE  rise 3% as the online
pharmacy forms a JV with Galenica  GALE.S , whose shares edge up
about 1.7%, in Switzerland
    ** Shop Apotheke will hold 51% and Galenica 49% of the JV 
    ** The German company expects FY revenues boost of 270-300
million euros ($293.03-$325.59 million), and adjusted EBITDA of
5-10 million euros from the JV
    ** "(The news) should be seen positive but speculation on
combination with competitor Zur Rose now seems obsolete..." a
local trader says
    ** Jefferies says it is "a very interesting move" to enter
the Swiss market on a large scale with the market leading player
in Switzerland
    ** "The deal will trigger a 6% share dilution, but should be
highly beneficial on profitability and cash flow" the broker
adds 
    ** Galenica will receive 1.2 million shares in Shop Apotheke
for the overall transaction, and it will hold 8% of the German
company in the future, as the transaction is expected to close
in May
    ** Shop Apotheke is among best performers of Germany's
small-cap index  .SDAXI 
     
($1 = 0.9214 euros)

 (Reporting by Ozan Ergenay)
 ((ozan.ergenay@thomsonreuters.com))