Schein Pharmaceutical acquires 96% of Marsam Pharmaceuticals and expects to merge "promptly"; merger opens major new markets to leading generic drug manufacturer.FLORHAM PARK & CHERRY HILL Cherry Hill, township (1990 pop. 69,319), Camden co., W central N.J.; name was changed from Delaware township to Cherry Hill in 1961. Largely residential, Cherry Hill has been marked by great development and housing growth, especially since the 1970s. , N.J.--(HealthWire)--Sept. 5,1995-- Schein Pharmaceutical Inc. and Marsam Pharmaceuticals Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :MSAM MSAM MetaFrame Secure Access Manager (Citrix) MSAM Medium Scale Anisotropy Measurement MSAM Microcomputer Spectrum Analysis Models MSAM Multi-Sequential Access Method MSAM Major System Acquisition Manual MSAM Microsoft Screen Access Model ) announced today that Schein Pharmaceutical has acquired approximately 96% of the outstanding shares of Marsam Pharmaceuticals, and that Schein intends promptly to effectuate a merger between the two generic drug generic drug, a drug sold or prescribed under the nonproprietary name of its active ingredients or under a generally descriptive name rather than under a brand or trade name. companies. The announcement is pursuant to Schein's previously reported $240 million cash tender offer for all the outstanding shares of Marsam, at $21 per share, which expired 12:00 midnight EST EST electroshock therapy. EST abbr. electroshock therapy Sept. 1, 1995. Martin Sperber, Schein's chairman and chief executive officer, said the transaction emphasizes Schein's determination to build product breadth and market scope through selective alliances and acquisitions. "Schein and Marsam complement each other perfectly, with virtually no overlap in our product lines," said Sperber. "During the next 10 years patents will expire in sterile penicillins and cephalosporins Cephalosporins Definition Cephalosporins are medicines that kill bacteria or prevent their growth. Purpose Cephalosporins are used to treat infections in different parts of the body—the ears, nose, throat, lungs, sinuses, and , oncolytics, and anesthetics Anesthetics Drugs or methodologies used to make a body area free of sensation or pain. Mentioned in: Appendectomy , product categories which today represent a $5 billion hospital and home healthcare market -- precisely those categories where Marsam is focused. This dramatic expansion of our drug portfolio means greater efficiency for customers, who prefer a single supplier for their purchasing needs." Sperber also noted that the merger enhances Schein's ability to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. one of the fastest growing markets in the pharmaceutical industry: the home healthcare segment. Marvin Samson, president and chief executive officer of Marsam, noted that Schein and Marsam are a strong fit both in terms of product and operating culture. "I am also excited about the explosive international market opportunities for our products created through Schein's alliance with Bayer AG," Samson said. As a result of the tender offer, Schein will own 10,647,261 shares of Marsam common stock, including 159,576 shares tendered by means of guaranteed delivery pursuant to the offer. The merger will be accomplished by combining Marsam with Schein's wholly-owned subsidiary, SM Acquiring Co. Inc. As a consequence, Marsam will become a direct, wholly-owned subsidiary of Schein Pharmaceutical. Schein Pharmaceutical Inc. is one of the leading multisource companies in the U.S. The combination of Schein and Marsam will employ over 1800 people at seven facilities: Florham Park, N.J.; Carmel, N.Y; Brewster, N.Y. Danbury, Conn.; Phoenix, Ariz; Humacao, Puerto Rico Humacao (oo-mah-KAH-oh) is the largest city of Puerto Rico located in the eastern coast of the island, north of Yabucoa; south of Naguabo; east of Las Piedras; and west of Vieques Passage. and Cherry Hill, N.J. (Marsam's headquarters). Schein manufactures over 400 pharmaceutical products in nearly every therapeutic category. Through the manufacturing resources of Marsam, Schein is now the only multisource firm in America with the ability to manufacture all types of injectable drug -- including penicillins, cephalosporins and non-antibiotics -- as well as oral solid dosage products. The company maintains modern manufacturing facilities, invests significantly in product development, and focuses on controlling health care costs through state-of-the-art production, distribution and competitive pricing of quality merchandise. CONTACT: Schein Pharmaceutical Inc. Suzanne Soderberg 201/593-5565 or Marsam Pharmaceuticals Inc. Richard A. Baron 609/424-5600 x320 |
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