Norwegian pharmaceutical company Vistin Pharma ASA has sold its opioids and its contract tablet manufacturing business to TPI Enterprises Limited for NOK 100 million.

“The sale of our opioids and CMO business allows the company to focus entirely on its core business, and strengthen our position as a leading global player in the growing metformin market. We are pleased with the agreed terms which put Vistin Pharma in a very strong financial position, with significant investment and dividend capacity,” said Ole Enger, chairman, Vistin Pharma.

TPI is an independently-owned Australian company that has been a strategic partner for the sourcing of narcotic raw material, and knows Vistin Pharma well. TPI says it plans to significantly invest in Vistin Pharma’s manufacturing plants in Gruveveien, Kragerø. TPI has operations in Melbourne, Australia and Lisbon, Portugal.

“TPI has thorough insight into Vistin Pharma, and I am confident that the company will become a good owner of our opioids and CMO business,” said Kjell-Erik Nordby, chief executive officer, Vistin Pharma.

Vistin Pharma serves the global market for opioid with two key products, codeine phosphate—used in analgesics and cough syrup—and pholcodine—used in cough syrup. The CMO tablet manufacturing business produces finished products, with its main customer being Weifa, Norway’s leading consumer health company. For 2016, total revenue from the opioids and CMO business totaled NOK 221.5 million.

Upon completion of the transaction, Vistin Pharma will be a pure play metformin producer. Metformin is used as the first line treatment of diabetes 2, a disease that is expected to grow by 50% towards 2030 and affect more than 500 people. The global market for metformin is expected to grow by four to five percent per annum for many years to come.

“Our decision to invest in a doubling of our metformin production capacity is a witness of our intentions within this market. Following the divestment of our opioids and CMO business we are in a better position than ever to successfully grow our core metformin business,” says Mr. Nordby.