Dura purchase of cystic fibrosis product distributor Scandipharm will increase respiratory sales force to 330.

DURA PURCHASE OF SCANDIPHARM WILL INCREASE SALES FORCE BY 50, swelling the company's respiratory products promotional force to 330 reps, on target for its planned increase to 350. Dura had a sales force of 140 in August 1996 before acquiring the rights to the antibiotics Keftab (cephalexin) and Ceclor CD (extended-release cefaclor) from Lilly ("The Pink Sheet" Aug. 26, 1996, T&G-3). Ceclor CD increased from a 17% share of the oral solid cefaclor market to 22% in the course of the third quarter, Dura said.

To acquire Alabama-based Scandipharm, Dura will issue between $93 mil. and $139 mil. of its common stock in exchange for all of Scandipharm's capital stock and outstanding options. The acquisition follows the purchase of Nasarel and Nasalide (flunisolide inhaled corticosteroids) for seasonal allergic rhinitis, from Rhone-Poulenc Rorer earlier in the year. Dura had $454.7 mil. in cash on hand at the end of the third quarter.

The acquisition will expand Dura's respiratory offerings into the cystic fibrosis market: Scandipharm distributes cystic fibrosis therapeutics, primarily to hospitals, and markets its own high-dose pancreatic enzyme preparation Ultrase for CF patients. Dura's Health Script mail service pharmacy division also will enter the CF market through an agreement with Cystic Fibrosis Services, a subsidiary of the Cystic Fibrosis Foundation, expected to be effective Jan. 1.

Englewood, Colo.-based Health Script provides pharmacy services for patients with asthma, chronic obstructive pulmonary disease and other respiratory conditions. Under the agreement with Cystic Fibrosis Services, Dura expects Health Script to be responsible for prescription fulfillment and shipping to 9,000 CF customers. Health Script "will integrate with the customer service and administrative activities which will reside with Cystic Fibrosis Services," Dura said.

Scandipharm had net sales of $19.4 mil. in 1996 and $16.2 mil. in the first three quarters of 1997. Its total assets are $35.7 mil., with $23.6 mil. in cash and equivalents and $7.9 mil. in liabilities. The purchase is expected to close in the first half of 1998.

The next addition to Dura's offerings could come from its dry-powder inhaler development arm, Spiros Development Corporation. Three Spiros asthma DPI products are in late-stage development: an NDA for an albuterol DPI will be submitted later this year, with launch slated for 1998; a beclomethasone approval is anticipated for 1999; and approval of an ipratropium formulation is expected for 2000, the company said.

Dura and Spiros Development Corporation II recently filed a registration statement for a proposed public offering of units consisting of one share of callable common stock in Spiros and one warrant to purchase one-fourth of one share of Dura common stock. Spiros would receive proceeds of $75-$86 mil., plus a contribution of $75 mil. in cash from Dura immediately prior to consummation of the public offering. Merrill Lynch and Donaldson, Lufkin & Jenrette are managing the offering.