F. H. FAULDING ACQUIRING 40% STAKE IN MOLECULON
F. H. FAULDING ACQUIRING 40% STAKE IN MOLECULON with a $31 mil. investment in the Cambridge, Mass.-based controlled release R&D firm. A pharmaceutical manufacturer and distributor based in Australia, F.H. Faulding & Co. Ltd. also develops sustained release dosage forms. Parke-Davis' Eryc and Doryx are licensed from Faulding. In a Sept. 3 release, Moleculon said the arrangement with Faulding will "not only provide Moleculon with sufficient capital for the continued development of its proprietary transdermal products and the establishment of manufacturing capabilities, but should also provide Moleculon with Faulding's considerable experience in sustained-release formulations and marketing and manufacturing expertise." The relationship with the Australian firm, Moleculon noted, will also provide "further opportunities for collaborative research and development services with major pharmaceutical companies worldwide." Faulding is paying an amount roughly equivalent to Moleculon's stock market value prior to the announcement. At the stock's Sept. 2 closing price of 3-7/8, Moleculon carried a market valuation of approximately $30.7 mil. The stock jumped 1-1/8 to 5 on the day of the announcement and closed the week at 4-3/4. Moleculon currently has five transdermal products using the patented Poroplastic technology in clinical trials, including a chlorpheniramine patch developed for Bristol-Myers and an isosorbide patch for Wyeth-Ayerst Labs. The company has also commented on an agreement with Thompson Medical covering a transdermal phenylpropanolamine diet aid and a tiethanolamine salicylate analgesic patch. The first stage of the deal with Faulding involves the sale of 700,000 Moleculon shares to the Australian company for $3 mil. The second phase is "anticipated to occur in November 1987" and "entails the purchase of approximately 820,000 additional shares of Moleculon common and 834,000 shares of preferred stock for a total consideration of $28 mil.," Moleculon reported. In return, Faulding will get representation on Moleculon's board and operating management. Moleculon was formerly known as Moleculon Biotech.
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