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

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.

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