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Analyst Comment

Pharma Equity Group (PEG) - Signs Letter of Intent (LOI) to acquire MedTech company Otiom

By Philip CoombesEquity Research Analyst
Pharma Equity Group

Pharma Equity Group (PEG) has taken the first tangible step in executing its diversification strategy announced in May 2025 by signing a Letter of Intent (LOI) to acquire Otiom A/S, a Danish MedTech company specializing in IoT-based localization technology for people with dementia. The transaction marks PEG’s initial expansion beyond pharmaceuticals into commercial-stage MedTech and aligns with CEO Christian Tange’s (new CEO from 1 April 2025) ambition to become a Nordic life sciences consolidator.

The agreement values Otiom at an enterprise value of approximately DKK 15 million. The structure of the deal is primarily a share-for-share exchange, expected to represent around 10% dilution to PEG’s current share capital in the event of a full acquisition. Importantly, PEG will assume Otiom without any legacy debt, and the existing management team will remain in place. The parties have initiated an exclusive due diligence process and expect to sign a final agreement by the end of January 2026.

Otiom currently operates in 24 countries with over 9,700 units deployed and a network of 13 distributors across Europe, with particularly strong growth in the DACHNL region. The company generates roughly DKK 8 million in annual revenue and operates close to break-even, supported by recurring demand for its dementia safety technology. PEG’s management expects the acquisition to have a positive impact on group cash flow and EBITDA from 2026 onwards.

Strategically, the Otiom deal represents execution of the strategy shift by adding a commercial-stage MedTech business with a shorter path to profitability. The acquisition will broaden PEG’s exposure beyond drug development through Reponex Pharmaceuticals and may generate cash flow in the near-to-medium term to support the development of Reponex Pharmaceuticals' pipeline assets; however, no financials are currently disclosed, so this remains speculation. 

Disclaimer: HC Andersen Capital receives payment from Pharma Equity Group for a digitalIR/corporate visibility subscription agreement. / Philip Coombes 13:31 10/12-2025

Pharma Equity Group develops medicines for the treatment of serious and life-threatening inflammatory diseases for which there is currently no adequate treatment. The Company uses repositioning of existing medicines and takes drug candidates to a clinical Phase III stage, after which they are handed over to a strategic partner who will complete the development of the products and bring them to market, either independently or in collaboration with the Company.

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