DGAP-Ad-hoc: Biotest AG / Key word(s): Disposal Biotest AG: Biotest to sell US therapy business to ADMA Biologics, Inc. receiving approximately 50% of the shares of ADMA Biologics, Inc 23-Jan-2017 / 13:00 CET/CEST Disclosure of an inside information acc. to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Ad-hoc RELEASE Announcement according to Article 17 European Market Abuse Regulation (MAR) Biotest to sell US therapy business to ADMA Biologics, Inc. receiving approximately 50% of the shares of ADMA Biologics, Inc Dreieich, 23 January 2017. Biotest's US subsidiary, Biotest Pharmaceuticals Corporation, Boca Raton, Florida, USA, (BPC), has entered into a definitive agreement with ADMA Biologics, Inc., Ramsey, New Jersey, USA, (ADMA) to sell certain assets of the US therapy business. Included in the assets to be transferred at closing are BPC's plasma fractionation facility, its commercial products, contract manufacturing agreements as well as BPC's Boca Raton, Florida headquarters and real properties. Upon closing of this transaction, Biotest will receive equity interest in ADMA's issued and outstanding capital stock in the form of 50% minus one share representing 25% of the voting rights. In addition, Biotest will: - Receive two ADMA plasma centers in the USA on January 1, 2019 - Obtain distribution rights for ADMA's innovative product (RI-002) and a right of first offer for the distribution of future ADMA developed plasma-based products in Europe, Near and Middle East and selected Asian countries - Participate from the future development of products in the USA As part of the transaction, Biotest will contribute EUR11.5 million in cash as well as a EUR14 million loan. The loan bears 6% interest and has a term of 5 years. In addition, Biotest will contribute up to EUR11.5 million towards a future capital increase of ADMA on equal terms as third party investors. BPC will maintain its focus on its plasma operations business which includes 22 plasma centers located across the USA. Due to an unforeseeable delay in the contractually required ramp up of the manufacturing of Bivigam(R) at the Boca Raton production site of BPC, Biotest and Kedrion Biopharma Inc., Fort Lee, New Jersey, USA (Kedrion Biopharma) mutually terminated the contract of the Bivigam(R) distribution agreement in the USA effective immediately. Effective immediately, Biotest will report the US therapy business of BPC as Discontinued Operations. For the fiscal year 2016, Biotest expects this business unit to report a loss of approximately EUR80 million. This includes the loss of the therapy business, the depreciation of inventory and the impairment of the remaining goodwill, the expected expenses for the termination of the Kedrion Biopharma distribution agreement as well as re- structuring expenses. The EBIT of the Continued Operations is expected to improve by approx. EUR30 million in the fiscal year 2016. The transaction, subject to customary closing conditions, including approval of ADMA's shareholders, is expected to close during the first half of 2017. Biotest Aktiengesellschaft Board of Management Biotest AG Landsteinerstr. 5 D-63303 Dreieich www.biotest.de Disclaimer This document contains forward-looking statements on overall economic development as well as on the business, earnings, financial and assets position of Biotest AG and its subsidiaries. These statements are based on current plans, estimates, forecasts and expectations of the company and are thus subject to risks and elements of uncertainty that could result in significant deviation of actual developments from expected developments. The forward-looking statements are only valid at the time of publication. Biotest does not intend to update the forward-looking statements and assumes no obligation to do so. About Biotest Biotest is a provider of plasma proteins and biological drugs. With a value added chain that extends from pre-clinical and clinical development to worldwide sales, Biotest has specialised primarily in the areas of clinical immunology, haematology and intensive medicine. Biotest develops and markets immunoglobulins, coagulation factors and albumins based on human blood plasma. These are used for diseases of the immune and haematopoietic systems. In addition Biotest develops monoclonal antibodies in the indications of cancer of plasma cells and systemic lupus erythematosus which are produced by recombinant technologies. Biotest has more than 2,500 employees worldwide. The preference shares of Biotest AG are listed in the SDAX on the Frankfurt stock exchange. IR contact Dr. Monika Buttkereit phone: +49-6103-801-4406 email: [email protected] PR contact Dirk Neumüller phone: +49-6103-801-269 email: [email protected] Biotest AG, Landsteinerstr. 5, 63303 Dreieich, Germany, www.biotest.de Ordinary shares: securities' ID No. 522720; ISIN DE0005227201 Preference shares: securities' ID No. 522723; ISIN DE0005227235 Listing: Prime Standard Open Market: Berlin-Bremen, Düsseldorf, Frankfurt, Hamburg, Hanover, Munich, Stuttgart --------------------------------------------------------------------------- 23-Jan-2017 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: Biotest AG Landsteinerstraße 5 63303 Dreieich Germany Phone: 0 61 03 - 8 01-0 Fax: 0 61 03 - 8 01-150 E-mail: [email protected] Internet: http://www.biotest.de ISIN: DE0005227235, DE0005227201 WKN: 522723, 522720 Indices: SDAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange End of Announcement DGAP News Service --------------------------------------------------------------------------- 537791 23-Jan-2017 CET/CEST