A.L. LABS ACQUISITION OF NASKA ASSETS WILL ADD $20 MIL. IN SALES
A.L. LABS ACQUISITION OF NASKA ASSETS WILL ADD $20 MIL. IN SALES to A.L.'s bottom line, the firm estimated March 10. A.L. Laboratories' Barre-National subsidiary "has acquired the business and operating assets" of Naska Pharmacal from Rugby-Darby, A.L. said. As part of the deal, A.L. has entered into an agreement with Rugby to supply products made by Naska and "selected other specialized products." The combination of new products manufactured by Naska and the supply agreement will provide A.L. Labs with about $20 mil. in "incremental sales," the firm said. "The major asset acquired is Naska's modern 82,000 sq. ft. manufacturing facility located in Lincolnton, N.C.," A.L. Labs said. "Completed in 1990, this facility was specifically designed for the production of specialty dosage form pharmaceuticals, primarily oral liquids and topical ointments and creams." The Lincolnton plant will operate as a second Barre-National manufacturing site. Barre currently markets oral liquid generics manufactured at its Baltimore facility. A second A.L. subsidiary, NMC Labs, markets ointments and creams. In addition to the Lincolnton facility, A.L. Labs will be acquiring an unspecified number of products produced at the plant, approximately half of which are oral liquids and half ointments and creams. Some of the products overlap with A.L.'s current line, the company noted, providing opportunities to coordinate manufacturing. Rugby-Darby has been seeking a buyer for Naska since last summer ("The Pink Sheet" Aug. 31, 1992, In Brief). Naska has not had any ANDA approvals since 1989. No pending applications are part of the deal, A.L. Labs said. The Naska name will cease to be used "over time," A.L. added. Terms of the deal were not disclosed. Naska is the second recent acquisition for A.L. In October, the firm completed its purchase of Able Labs, adding an estimated $17 mil. in sales ("The Pink Sheet" Sept. 21, 1992, T&G-12). Able now operates as a subsidiary of A.L. Labs. Like Barre-National, Able is currently operating under a consent decree agreement signed following FDA findings of good manufacturing practices violations at the firm ("The Pink Sheet" March 30, 1992, T&G-3). While a July ANDA approval appeared to signal an end to Able's regulatory difficulties, FDA is understood to have prepared a recommendation that the Justice Department renew its litigation against Able. A.L. said it is not aware of any such actions. A.L. sales for 1992 totaled $295.1 mil., an increase of 14.8%. Net income was $16.2 mil. compared to $5.1 mil. in the previous year. For the fourth quarter, total revenues were $83.4 mil. with net income of $2.1 mil.
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