Eckert & Ziegler and Supervisory Board Decide on Investment Priorities for 2024: Focus on Core Competencies and Split-Off of Pentixapharm AG

In view of the enormous growth forecast for active pharmaceutical ingredients, which is already reflected in the order intake, Eckert & Ziegler intends to bundle its financial resources to expand its global manufacturing capacities. Eckert & Ziegler is concentrating on its core competencies in order to further expand its position as a leading supplier of radioisotopes for the manufacture of radiopharmaceuticals.

As a result, Eckert & Ziegler will withdraw from further financing of the drug developer Pentixapharm next year and will either float the wholly owned subsidiary, which now also includes Myelo Therapeutics GmbH, on the stock market in 2024 via a split-off or sell it as a whole. The decision on the final procedure is expected to be made at the balance sheet meeting of the Supervisory Board of Eckert & Ziegler AG in March 2024. Until then, the Executive Board will have discussions with interested parties as well as prepare the split-off by mandating appropriate service providers and taking other measures.

In accordance with the regulations of IFRS 5, the Executive Board will in any case report PTX as a discontinued operation in the annual financial statements 2023.

"PTX holds enormous potential, both for diagnostics and for the therapy of cancer and other diseases. At the same time, the financing to exploit this potential requires a high level of funding, which we do not intend to finance through EZAG. Our focus is on the production as well as the distribution of isotopes. Here we are the market leader and want to remain so," explained Dr. Harald Hasselmann, Chairman of the Executive Board of Eckert & Ziegler AG.

"The exit from the financing of Pentixapharm solves a strategic dilemma and offers EZAG’s shareholders the opportunity to receive a significant premium on the estimated value of PTX reflected in EZAG’s share price prior to the transaction, or the opportunity to return capital to shareholders through a special dividend and/or share buyback program," added Dr. Andreas Eckert, founder, major shareholder and Chairman of the Supervisory Board.

After extensive discussion, Executive Board and Supervisory Board agree that the proposed measures are in the best interest of shareholders to achieve immediate value by minimizing risk in the longer-term implementation of EZAG’s business plan.