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RORER RETAINING ARMOUR DESPITE "FINANCIALLY ATTRACTIVE" OFFERS

Executive Summary

RORER RETAINING ARMOUR DESPITE "FINANCIALLY ATTRACTIVE" OFFERS, the company announced in a Dec. 18 press release. "After careful analysis of several good offers, we have determined we can return greater value to our shareholders by keeping and optimizing Armour than by trading it," Rorer Chairman Robert Cawthorn stated. "The offers we received did not include a suitable product exchange," Rorer explained. In July, the company made public its intention to consider trading the hospital-focused Armour business for existing Rx or OTC pharmaceutical product lines that would fit better with Rorer's physicianoriented marketing operation ("The Pink Sheet" July 7, p. 6). The firm hedged its bet at the time, emphasizing that if a prospective deal did not result in an acceptable product stream or combination of products and cash, it might not sell Armour. "While the offers we received were financially attractive, they did not recognize the growth potential incumbent in Armour's first rate products, personnel, and research," the release states. Reportedly, Rorer looked at three offers, including a bid from a former Armour exec. Rorer noted that Armour has "several significant" new products under development including Monoclate, a Factor VIII blood product produced through a patented monoclonal antibody process. "By keeping Armour, I think we can best accelerate Rorer's growth," Cawthorn said. Rorer purchased Armour and USV from Revlon about a year ago in a $690 mil. cash deal. According to the release, Armour had worldwide sales of approximately $160 mil. in 1985 and ranked 15th in terms of sales of companies serving hospitals in the U.S. pharmaceutical market. Approximately 100 Armour sales reps cover the U.S. market.
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