Swedish Orphan Auction Moves To 2nd Round

STOCKHOLM (Reuters) – A group of bidders has been selected for the second round of the planned sale of drug company Swedish Orphan, sources with knowledge of the matter said on Friday.

The selected indicative bids valued the company, jointly owned by Swedish holding company Investor AB (INVEb.ST) and Priveq, at more than 300 million euros ($438 million), a source told Reuters.

A second source said he believed bidders had indicated a willingness to pay around 350 million euros or more to reach the second round.

Investor AB and private equity firm Priveq each own 42 percent of Swedish Orphan, which had an operating profit of 201 million Swedish crowns in the year to April, and sales of 694 million.

SEB Enskilda and Morgan Stanley are acting as advisers in the sale.

Investor and Priveq declined to comment. Swedish Orphan was not immediately available for comment.

(Reporting by Sven Nordenstam; editing by John Stonestreet)