BioKePharm Inc. & Gruppo Marcucci merge -- Major U.S. and European union alliance in biologicals.SOUTHPORT, Conn.--(BUSINESS WIRE)--June 17, 1996--BioKePharm Inc., a U.S.-based company, formed by executives with extensive experience in the biological industry, and Gruppo Marcucci, a European leader in biological products, based in the Lucca province of Italy, announced Monday their intent to merge to form a global health care company devoted to the research, development, manufacturing and marketing of biological health care products. It is the latest strategic alliance between an American-based company and a European Union European Union (EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the European Community company in the highly competitive biologicals business. The new company, which will retain the name, BioKePharm Inc., has aggressive plans for rapid expansion to the U.S. and many other major and emerging international markets, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Ralph M. Galustian, the founder of BioKePharm, and Guelfo Marcucci, the founder and chairman of Gruppo Marcucci, who announced the company's goal is to become one of the top three leaders in the industry by the year 2000. With worldwide industry shortages of plasma-derived products and annual market growth forecasts of 20 percent over the next four years, BioKePharm announced production expansion of 100 percent over the next three years. Estimated company sales for 1996 are $165 million. BioKePharm's product line includes a wide range of plasma-derived products to meet therapeutic needs of patients worldwide. The three principal protein products are anti-hemophilic factors, albumin albumin (ălby  `mən) [Lat.,=white of egg], member of a class of water-soluble, heat-coagulating proteins. Albumins are widely distributed in plant and animal tissues, e.g. used in the treatments of shock, trauma and burn victims, and intravenous immune globulin intravenous immune globulin A formulation of concentrated antibodies–aka immune globulins, predominantly IgG, prepared by pooling plasma from ±1000 donors, with a broad spectrum of activity against CMV, HAV, HBV, measles, rubella, tetanus, varicella ,which is used in a number of immune deficiencies immune deficiencyn. See immunodeficiency. . Galustian, president and chief executive officer of BioKePharm Inc., was president of the worldwide Biological Products business of Bayer Corp., where he had a distinguished 27-year career. He was instrumental in the formation of the International Plasma Procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. Industry Association (IPPIA IPPIA International Plasma Products Industry Association ) and served as its president for two years. He and three other executives with extensive experience in the biological products industry founded BioKePharm. Gruppo Marcucci entered the biological products industry during the 1960s with the purchase of a company in Pisa. The company has been a leading provider of biological products in Italy, the second largest market in Europe, and to customers in the other countries of Europe, Asia, Africa, the Middle East and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. . The company's products are registered in 35 countries. Plasma fractionation fractionation /frac·tion·a·tion/ (frak?shun-a´shun) 1. in radiology, division of the total dose of radiation into small doses administered at intervals. 2. is now conducted at three operations, Farma Biagini S.p.A. of Bolognana; Sclavo S.p.A. of Siena and Instituto Sierovaccinogeno Italiano S.p.A. ("ISI ISI International Sensitivity Index, see there ") of Naples. "The merger of Gruppo Marcucci with BioKePharm is the fulfillment of the strategic plan I had envisioned when our company was originally founded -- to become a leader in the worldwide biological health care business," Marcucci, chairman of BioKePharm, stated from his headquarters in Italy. "BioKePharm has an unique focus in the biological health care products industry, which is dominated by companies that are minor parts of large chemical and pharmaceutical corporations with diverse goals," said Galustian. "Our goal is to become the world leader in the biological health care business by ensuring the availability of products of the highest quality and safety with the most innovative technology. In our business, the patients' well being and safety must always come first." A Strategy for Growth BioKePharm announced plans to invest significant capital to increase throughput at its fractionation plants by 100 percent, to approximately 2.1 million liters, by 2000 from their current annual production. The investment will also maintain the state-of-the-art level of technology required to provide the most advanced plasma purification and viral inactivation inactivation /in·ac·ti·va·tion/ (in-ak?ti-va´shun) the destruction of biological activity, as of a virus, by the action of heat or other agent. processes in the industry at the company's fractionation facilities. "This increased utilization of expanded production will move the company from eighth to the third largest in the industry, based upon current rankings," Galustian said. "Increasing efficiency and margins will enable product and process research investment, thus furthering global expansion by strategic partnering through mergers, acquisitions and other forms of alliances," he said. Alliances in the U.S. will facilitate entrance into this market and broaden the product line. These alliances will foster growth more efficiently than building costly new fractionation facilities. BioKePharm estimates that a "greenfield Greenfield, town (1990 pop. 18,666), seat of Franklin co., NW Mass., at the confluence of the Deerfield and Green rivers, near their junction with the Connecticut; settled 1686, set off from Deerfield and inc. 1753. " facility would require five years to build a 750,000 liter facility and receive the necessary regulatory approvals, at a cost of approximately $150 million, excluding land costs. The merger of Gruppo Marcucci and BioKePharm Inc., will create the first international health care company devoted solely to plasma- derived biological products. The new company will focus its resources and state-of-the-art technologies on the research, manufacturing and distribution of safe, pure and high quality plasma products that offer therapeutic benefits for treating chronic and life-threatening diseases affecting millions of people worldwide. CONTACT: BioKePharm Inc. Joseph A. D'Arco, 203/254-7556 by Cox Communications Cox Communications is a privately owned subsidiary of Cox Enterprises providing digital cable television and telecommunications services in the United States. It is the third-largest[2] cable television provider in the United States, serving more than 6. Partners William R. Cox, 609/896-3250 |
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