Printer Friendly

SPI PHARMACEUTICALS, OKTYABR PHARMACEUTICAL FACTORIES AGREE TO FORM NEW VENTURE COMPANY IN ST. PETERSBURG

 SPI PHARMACEUTICALS, OKTYABR PHARMACEUTICAL FACTORIES
 AGREE TO FORM NEW VENTURE COMPANY IN ST. PETERSBURG
 ST. PETERSBURG, Russia, Oct. 21 /PRNewswire/ -- SPI Pharmaceuticals Inc., (AMEX: SPI) headquartered in California, and the Leningrad Industrial Chemical and Pharmaceutical Association ("Oktyabr") announced today that they have concluded an agreement to form a pharmaceutical joint-venture company.
 Oktyabr, a state-owned enterprise, is one of the largest pharmaceutical companies in Russia. The new company, to be called ICN Oktyabr, is the first privatization of a major pharmaceutical company in Russia and the largest single foreign, direct investment in the city since Russia declared its independence from the former Soviet Union.
 Under the terms of the agreement, Oktyabr will first become a privatized joint-stock company which will be primarily owned by the workers of Oktyabr. It will then form the new company, ICN Oktyabr, with SPI, which will be owned 75-percent by SPI and 25-percent by the new private Oktyabr. ICN Oktyabr expects to begin operations in January 1993.
 Two percent of the profits of the venture will be donated to one or more health care charities to be chosen by the city of St. Petersburg.
 Oktyabr was established by Czar Peter I in 1714. It manufactures and markets 225 prescription and non-prescription pharmaceuticals, including analgesics, vitamins, anesthetics, cardiovascular pharmaceuticals and other products in Russia, throughout the Commonwealth of Independent States (CIS) and in other Eastern European countries. It employs 2,100 people.
 Anatoly Sobchak, mayor of St. Petersburg, said the city is donating land toward construction by ICN Oktyabr of a new $40 million pharmaceutical manufacturing facility in the Russian city, a key element in modernizing the company.
 "The new venture is the first step toward the modernization of the pharmaceutical industry of St. Petersburg," said Sobchak.
 "Our new agreement is a major step toward our goal of expanding our pharmaceutical operations in Eastern Europe and the CIS," said Adam Jerney, SPI's president and chief executive officer.
 According to Leonid Seleznev, general director of Oktyabr: "Our employees are enthusiastic about this opportunity which will increase the assortment of pharmaceuticals available in Russia and will expand our export opportunities."
 As part of the agreement, SPI will facilitate financing, design, engineering and construction of the new pharmaceutical manufacturing facility. In addition, it will contribute Western management expertise, technology, equipment, intellectual property, training and technical assistance to the new venture.
 SPI and Oktyabr are working with the European Bank for Reconstruction and Development on details of the financing of the venture. The transaction is subject to traditional closing conditions and approval of the boards of directors of SPI, Oktyabr and appropriate governmental authorities.
 ICN Oktyabr will be SPI's second Eastern European venture, a part of its long-term Eastern European expansion plan.
 SPI Pharmaceuticals Inc., headquartered in Costa Mesa, Calif., manufactures, markets and distributes 600 prescription and non- prescription pharmaceuticals in more than 60 countries, including North and Latin America, Western and Eastern Europe, and the Far East.
 -0- 10/21/92
 /CONTACT: Paul Knopick of SPI Pharmaceuticals Inc., 714-545-0100 ext. 2465/
 (SPI) CO: SPI Pharmaceuticals Inc. ST: California IN: MTC SU: JVN


EH -- LA011 -- 2903 10/21/92 12:39 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 21, 1992
Words:521
Previous Article:VALSPAR RENEWS STOCK REPURCHASE AUTHORIZATION
Next Article:BELL ATLANTIC PLANS TEST OF VIDEO-ON-DEMAND CAPABILITY


Related Articles
SPI PHARMACEUTICALS SIGNS LETTER OF INTENT WITH RUSSIAN PHARMACEUTICAL COMPANY AS PART OF ITS PLANNED EXPANSION IN THE U.S.S.R.
SPI PHARMACEUTICALS EXPECTS 1991 SALES TO REACH $360 MILLION
/C L A R I F I C A T I O N -- SPI PHARMACEUTICALS/
SPI PHARMACEUTICALS ANNOUNCES LETTER OF INTENT TO INVEST IN PHARMACEUTICAL COMPANY IN POLAND
NEW SPI PHARMACEUTICALS JOINT VENTURE BEGINS OPERATION IN RUSSIA
SPI PHARMACEUTICALS: SEVEN YEARS OF RECORD PERFORMANCE
ICN PHARMACEUTICALS TO MAKE DRUGS AVAILABLE FOR RUSSIAN MARKET
U.S. COMPANY MAKES FIRST-EVER DISTRIBUTION OF AMERICAN STOCK TO RUSSIAN CITY AND WORKERS
RUSSIAN WORKERS PROVE KEEN STUDENTS OF CAPITALISM
ICN PHARMACEUTICALS ACQUIRES MAJORITY STAKE IN RUSSIAN COMPANY; MOVE PAVES WAY FOR DISTRIBUTION OF NEW MEDICINES

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters