ADVANCED POLYMER SYSTEMS ACQUIRING PREMIER OTC DRUG/TOILETRY DISTRIBUTOR
This article was originally published in The Tan Sheet
Executive Summary
ADVANCED POLYMER SYSTEMS ACQUIRING PREMIER OTC DRUG/TOILETRY DISTRIBUTOR for approximately 450,000 shares of common stock, the company announced March 18. APS' stock has been trading in the $ 7-$ 9 range this year, making the purchase price between $ 3 and $ 4 mil. The company expects the acquisition to be completed within a month and plans to operate Premier as a wholly owned subsidiary. Premier, which had 1992 sales of about $ 7.5 mil., is the exclusive U.S. marketer of three Johnson & Johnson products -- Sundown and Baby Block sunscreens and Take Off make-up remover squares. The company distributes the products under long-term marketing agreements renewable in 1996. Premier also sells APS' two consumer products, EveryStep shoe and foot deodorant and Exact acne medication, which use APS' Microsponge controlled-release delivery system. APS had 1992 sales of $ 7.3 mil. "Premier brings to APS solid sales, marketing and distribution capabilities for OTC products, a key step we have envisioned for the the development of our company," APS stated, adding that "Premier's market position in the sun protection field should be of long-term value to APS." APS is seeking FDA approval for ProZone, a sunscreen product containing genetically engineered melanin. ProZone is in Phase III clinical trials. APS expects to complete clinical testing by the end of 1993. The company also has a tretinoin acne medication in Phase III trials. Both products use the Microsponge technology. Premier's headquarters will remain in Greenwich, Conn., where it leases a 48,068 square foot facility. The six-year-old firm was founded by Advanced Polymer Systems President and Chairman John Meakem before he joined APS; he is a major shareholder in Premier. The firm has 12 employees and is headed by Robert Albus, who will continue as president following the acquisition.