Pink Sheet is part of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By



Executive Summary

ELAN's $ 25 MIL. PURCHASE OF KNIGHT MEDICAL will expand the firm's enteral nutritional product line in the U.S. When finalized, the purchase will augment the U.S. sales organization and product line Elan acquired with the recent purchase of a major stake in Parsippany, N.J.-based O'Brian Pharmaceuticals. Headquartered in Cambridge, Mass., Knight Medical manufactures and markets through distributors a line of enteral nutritional products, with sales in 1988 expected to reach $ 10 mil. The letter-of-interest to acquire Knight Medical was announced Nov. 1. Elan has agreed to purchase all outstanding stock in Knight Medical for $ 14 mil., with an additional $ 11 mil. payment contingent on "certain performance goals" for 1988, 1989 and 1990. Elan will be more than doubling its volume with the acquisition. The Irish company's fiscal 1988 sales (year ended March 31) were $ 11.1 mil. As of March 31, Elan owned a 42% stake in O'Brien. Noting that both O'Brien and Knight Medical sell enteral nutritional products to hospital, nursing home and home health care markets, Elan chairman and CEO Donald Panoz commented in the release that "there are strong synergies between Knight Medical and O'Brien Pharmaceuticals, which has a sales force of 40 hospitals. This sales force, coupled with the strong distributor network of Knight Medical, will provide a complete enteral nutritional product line to its customers." Knight Medical was founded in 1985 by its current chairman and CEO, John Knight. The company had sales of $ 6.6 mil. in 1987 and a net income of $ 317,912. Elan's other recent moves into the U.S. health care market have included the establishment of a joint partnership with Connaught Labs for pediatric products. Under the agreement, which was announced in July, elan will develop and manufacture products while Connaught will handle marketing and selling.

You may also be interested in...

Part D Discount Liability Coming Into Focus: CMS Releases Drug Cost Data

Newly released Medicare Part D data sheds light on the sales hit that branded pharmaceutical manufacturers will face when the coverage gap discount program gets under way in 2011

FDA Skin Infections Guidance Spurs Debate On Endpoint Relevance

FDA appears headed for a showdown with clinicians and the pharmaceutical industry over the proposed new clinical trial endpoints for acute bacterial skin and skin structure infections, the guidance's approach for justifying a non-inferiority margin and proposed changes in the types of patients that should be enrolled in trials

Shire Hopes To Sow Future Deals With $50M Venture Fund

Specialty drug maker Shire has quietly begun scouting deals with a brand-new $50 million venture fund, the latest of several in-house investment arms to launch with their parent company's pipelines, not profits, as the measure of their worth



Ask The Analyst

Please Note: You can also Click below Link for Ask the Analyst
Ask The Analyst

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts