Veterinary drugs producer Biovet would pay off its long term debt through assets sale amounting to BGN 39.8m. Wednesday, the company signed a contract for the sale of intangible assets to Feedtech - one of Biovet’s small distributors. The assets are part of the animal breeding food additives business of the Netherlands’ Intervet, which Biovet purchased in H1 ’05 for EUR 22.5m. According to Biovet’s management the deal would not affect company’s sales, but will decrease indebtedness and will allow the company to access future bank loan financing for investment. As of end-June, the debt of Biovet was 1.3x its equity. The long-term loans which Biovet is to cover through the deal are worth a bit over BGN 38m, according to H1 consolidated report, compared to BGN 30.3m a year earlier. The H1 2006 net profit of Biovet declined to BGN 53K from BGN 997K a year earlier despite the 56% jump in revenues to BGN 40.5m.