Pharma Equity Group (“PEG” or “the Company”) announced on Wednesday, December the 10th 2025, that the Company has entered into a Letter of Intent (LOI) to acquire either the entire share capital or a majority stake in the Danish MedTech company Otiom A/S (“Otiom”). The transaction represents the first concrete step in executing the Company’s expanded strategy: to build a diversified Life Science portfolio spanning Pharma, MedTech, and related health technologies.
Otiom A/S
Otiom develops patented localization technology tailored to people with dementia, addressing a significant unmet medical and societal need. The company currently operates across 24 countries, supported by 13 distributors in the EU, and has produced more than 9,700 units to date.
More concretely, Otiom has developed an IoT-based safety and tracking solution that allows caregivers to define safe zones in which individuals with dementia can move freely. The system only alerts relatives or care staff when the person leaves a designated area or is deemed at risk, ensuring safety without continuous monitoring. Unlike traditional GPS-based devices, Otiom’s technology also functions reliably indoors, such as in basements, garages, large buildings, or nursing homes, where conventional tracking often fails. The device is designed for ease of use, featuring a battery life of up to one month with automatic notifications when charging is required. The system’s robustness is reflected in its real-world usage, handling more than 8,600 active situations over the past week alone.
Financially, Otiom generates approx. DKK 8m in annual revenue, and operates close to break-even. PEG expects the business to contribute positively to group operating cash flow and EBITDA from 2026 and onwards.
The Letter of Intent (LOI)
PEG has signed a LOI to acquire either 100% or a majority stake in Otiom A/S, valuing the company at an Enterprise Value of DKK 15m. The transaction is expected to be structured primarily as a share-for-share exchange corresponding to roughly 10% dilution in the event of a full acquisition. We emphasize that the LOI is non-binding, and completion will depend on the outcome of the forthcoming due diligence process, which PEG and Otiom will now commence. A potential share purchase agreement is expected towards the end of January 2026.
Analyst Group’s view of the Acquisition
Analyst Group views the LOI as a strategic milestone in PEG’s updated strategy, offering the first concrete demonstration that PEG can source and execute transactions aligned with the Company’s expanded focus on MedTech. The acquisition target, Otiom, operates within the dementia care segment, a structurally growing global market driven by an aging population and rising prevalence of cognitive disorders. According to Grand View Research, the global dementia treatment market was valued at USD 18bn in 2024 and is projected to reach USD 28bn by 2030, corresponding to a CAGR of 8% from 2025 to 2030.1 This strengthens the strategic relevance of the contemplated acquisition, as Otiom addresses a large and expanding unmet need with clear commercial scalability.
With annualized revenue of approx. DKK 8m and an Enterprise Value (EV) of DKK 15m, the implied EV/Sales multiple of 1.9x appears modest given Otiom’s established international footprint, validated technology, and operations nearing break-even. Beyond strategic fit, the acquisition has the potential to enhance PEG’s near-term cash flow profile, as Otiom is estimated to contribute positively from 2026 and onwards, thereby reducing reliance on external financing while Reponex progresses through capital-intensive clinical milestones. The predominantly share-based structure further ensures alignment with Otiom’s current owners and supports long-term value creation.
Collectively, the LOI underscores meaningful progress in PEG’s ambition to build a diversified Life Science platform with a more balanced risk-return profile. While the LOI is still subject to due diligence and final agreement, the expected share purchase agreement by the end of January 2026 constitutes an upcoming trigger. Should the transaction close as anticipated, Analyst Group assesses that it would advance PEG’s ambition to build a more diversified and resilient Life Science platform.
1https://www.grandviewresearch.com/industry-analysis/dementia-treatment-market-report
