Icn Pharma Buys Roche Drugs Rights
ICN Pharmaceuticals Inc yesterday said it has obtained worldwide rights to seven F Hoffman-La Roche products and that, in turn, Roche will become a significant shareholder of ICN.
ICN Pharmaceuticals said it will also obtain rights outside of the US for two additional products and will have the option to obtain US rights to these products at a later date.
In a separate release, Roche pegged the value of the deal at a net $145 million. ICN Pharmaceuticals said the acquisition will be accretive to its 1997 earnings and that based on current outstanding shares is estimated to contribute $0.35 in earnings per share in 1998.
Based on 1996 sales, the product rights being transferred are estimated to boost ICN's North American sales by $52 million, it said.
"This strategic acquisition adds to our strength in North America and worldwide, and follows our recent successes in Eastern Europe," chairman and chief executive Milan Panic said in a statement.
Under the terms of the agreement, ICN will receive the product rights in exchange for $90 million to be payable in a combination of 1.6 million shares of common stock and 2 million shares of preferred stock, convertible to common stock, each valued at $25 per share.
In addition, ICN will purchase Roche's plant in Humacao, Puerto Rico for $55 million payable in a combination of cash and assumption of debt.