MEDEVA ACQUIRES INJECTABLES FIRM INTERNATIONAL MEDICAL SYSTEMS
MEDEVA ACQUIRES INJECTABLES FIRM INTERNATIONAL MEDICAL SYSTEMS under a proposed agreement, the London-based company announced June 29. Under the agreement, Medeva will pay $24 mil. to buy the existing stock of the South El Monte, Calif. firm. Medeva also will make deferred payments of $4.6 mil. in the form of royalties on a new clinical-stage IMS product, Carbicarb. IMS filed an NDA for Carbicarb, a parenteral treatment for metabolic acidosis often associated with heart attacks, in July. The company believes that as a "carbonate-bicarbonate buffer that does not generate carbon dioxide," Carbicarb offers an alternative to sodium bicarbonate, the established treatment for metabolic acidosis. IMS launched Carbicarb in Canada in July. According to Medeva, IMS hopes to have the drug approved in the U.S. and U.K. by 1994. Since IMS' inception in 1968, the company's main focus has been the development of specialized injectable delivery systems. The firm's products have been licensed to drug and healthcare products manufacturers including Bristol-Myers and Abbott, as well as sold under IMS trademarks. The company was acquired in a leveraged buy-out by a group of investors and management on Aug. 25, 1988. Randall Wall, former president of Unitek, now serves as president at IMS. The company currently has approximately 700 employees and facilities located in California, Canada and the U.K. The purchase of IMS is Medeva's third recent acquisition of a U.S. company. In 1991 the firm purchased two generic companies: California-based M.D. Pharmaceutical and Adams Labs in Houston ("The Pink Sheet" May 18, T&G-16). Commenting on the deal, Medeva Chairman Bernard Taylor said: "It extends our product range, but with considerable overlaps in one of our existing areas of concentration; it develops the international range of our activities; and it includes a new product [Carbicarb] at a late stage of development which we believe has considerable potential." Medeva reports that IMS sales for the year ending Dec. 31, 1991 reached $39 mil, adding that "with the exclusion of the borrowings of IMS to be assumed by Medeva, the assets being acquired had a net value...of approximately $10 mil." Under the agreement, Medeva will refinance IMS' present debt "of $28.4 mil. (plus a contingent $3.6 mil. dependent on Carbicarb sales)," Medeva said. Medeva, which is a major manufacturer and supplier of vaccines in the U.K., reported sales of $154.2 mil. ((British Pound)82.4 mil) for FY 1991 ending Dec. 31, a 56% increase over 1990 sales of $98.4 mil. ((British Pound)52.7 mil.). Although net income fell 33% due to a sizable credit recorded in 1990, operating income jumped over 300% from $7.5 mil ((British Pound)4 mil.) in 1990 to $31.3 mil. ((British Pound)16.7 mil.) in 1991. As of Dec. 31, 1991, Medeva had $76.3 mil. ((British Pound)40.8 mil.) cash on hand.
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