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

AMERSHAM's $61.3 MIL. PURCHASE OF ROCHE's MEDI-PHYSICS radiopharmaceutical business will make the British firm the largest radiopharmaceutical company in the world, Amersham said in an Oct. 4 press statement announcing the agreement-in-principle. Amersham currently holds about 10% of the world market for radiopharmaceuticals, with projected fiscal 1990 sales of $35 mil., a spokesperson said. The company expects the Medi-Physics acquisition to boost its share to 25%. Roche will receive $61.25 mil. in cash, stock and debt for Medi-Physics. Specifically, the Nutley, N.J.-based firm will receive Amersham shares "representing approximately 5% of Amersham's enlarged share capital," $30 mil. in Amersham three-year notes and $12 mil. in cash. The companies expect to complete the transaction by the end of calendar 1989. The deal gives British Amersham a U.S. manufacturing base for its radiopharmaceutical operations and an expanded distribution channel through Medi-Physics' 35-person U.S. sales force; Amersham currently has a U.S. detail force of 20. Medi-Physics has production facilities in Tuxedo, New York; South Plainfield, New Jersey; and Arlington Heights, Illinois. The company owns and operates five cyclotrons. Amersham currently owns three cyclotrons; the addition of the Medi-Physics devices will "give Amersham a leading position as a worldwide producer of cyclotron isotopes," the company noted. In calendar 1988, Medi-Physics had unaudited sales of $53.2 mil. and an operating loss of $7.4 mil., Amersham reports. Most of the company's business is in the U.S. "The unaudited net assets at the end of August 1989 were $63.2 mil.," Amersham said. "Medi-Physics has already commenced a reorganization of its business with a view to eliminating losses before completion." Amersham expects the acquisition to have a neutral effect on current fiscal year earnings, and a positive effect in 1990-1991. For the year ended March 30, Amersham reported sales of (BRITISH POUND)180 mil. (pounds sterling) or approximately $288 mil. (based on a conversion rate of $1.60). Amersham Americas' revenues for the year were (BRITISH POUND)41.4 mil., or about $66.2 mil. Roche says it is selling Medi-Physics because it would have required a substantial financial commitment to make the radiopharmaceutical company a major competitor. Had it been successful, Roche's 1988 bid for Sterling would have given Medi-Physics much more critical mass by adding Sterling's hugely successful Omnipaque to the Medi-Physics product stable ("The Pink Sheet" Jan. 11, 1988, p. 6). However, Roche eventually lost a tug-of-war over Sterling to Kodak. Amersham's leading product is Ceretec, a cerebral imaging agent. The product competes against Medi-Physics' flagship product Spectamine. A spokesperson for Amersham said it has not yet been decided how marketing for the two products would be handled.

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

Ask the Analyst is free for subscribers.  Submit your question and one of our analysts will be in touch.

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