This article was originally published in The Tan Sheet
OTC health products company is selling its Optopics Laboratories ophthalmics division to Miza Pharmaceuticals, the firm announces Oct. 15. NutraMax expects to finalize the deal within 35 days. The company announced in the spring its intention to sell the business to devote attention to its more profitable first aid, cough/cold and personal care lines (1"The Tan Sheet" May 3, p. 12). Optopics products include OTC eye drops, artificial tears and contact lens solutions and cleaners sold under brand names including Optopics, as well as eight Rx products. Acquired by NutraMax in 1993, the business recorded $11.6 mil. in revenues in fiscal 1998. Separately, NutraMax' common stock is delisted from the Nasdaq SmallCap Market because the company has not filed its 10-Q report for the fiscal third quarter and nine month periods ended July 3 with the SEC. NutraMax says it continues to work with its auditors to complete the filing but is unable to predict when it will be able to do so. The firm has cited inventory and accounting procedures as the reason for the delay (2"The Tan Sheet" Aug. 30, In Brief)
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OTC private labeler will delay reporting its third quarter and nine-month results for the period ended July 3 while the company undertakes a physical inventory and additional accounting procedures "to obtain reliable and precise information." The delay results from its audit, which determined the firm could not "satisfactorily reconcile and verify its inventory and certain other accounts." NutraMax "expects that adjustments to its financial statements and restatements of its accounts for prior period are likely." Additionally, the company is in discussions with lenders because it is not in compliance with "certain covenants under its agreement with senior and subordinated lenders." Gloucester, Mass.-based NutraMax is seeking amendments or waivers to those agreements
Nutramax plans to divest its ophthalmics business, Optopics Laboratories, and shift its private label focus to the first aid business acquired in September 1997 for $40 mil. in cash, the Gloucester, Mass.-based private labeler announced April 27.
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