DARMSTADT, Germany, Aug. 22 /PRNewswire/ -- Merck KGaA announced today
that it has entered into binding agreements with a number of investors to sell
its 43 percent stake in the U.S. generic drug manufacturer Pharmaceutical
Resources Inc. (PRI) in a private placement for $27 per share or a total of
more than EUR 400 million. Merck acquired the stake in 1998 for $2 per share.
Profit after tax for the Merck Group will be approximately EUR 250 million.
The closing of the sale is conditional on the effectiveness of a
registration statement with the US. Securities and Exchange Commission
covering resale of the shares in PRI, which is the holding company of Par
Pharmaceutical Inc.
"Merck's investment in Pharmaceutical Resources has proven very profitable
within just three years," said Prof. Bernhard Scheuble, chairman and chief
executive of Merck KGaA. "We intend to use the proceeds to expand our pharma
activities. Merck also remains very committed to expanding its direct presence
in the US."
Both the U.S. market and generics remain core activities of the Merck
Group, Prof. Scheuble stressed. The Merck Generics Group will remain in the
U.S. market through strategic alliances, including the existing contractual
relationships with PRI with respect to the distribution of products, and
distribution partnerships of Merck's wholly-owned subsidiaries Alphapharm Ltd.
of Australia and Genpharm Inc. of Canada. Both are actively developing new
generic drugs for the U.S. market.
Pharmaceutical Resources ( http://www.parpharm.com ) had first-half 2001 sales of
$55 million (+35%) and net income of $4 million (compared to a loss the year
before). The Spring Valley, New York, company makes and distributes a broad
range of generic drugs. It is listed on the New York Stock Exchange (PRX).
Merck KGaA Search Symbols:
Reuters: MRCG
Bloomberg: MRK GY
Frankfurt Stock Exchange WPK: 659 900
Internet: http://www.merck.de
Headquartered in Darmstadt/Germany, the Merck Group generated annual sales
of EUR 6,7 billion in 2000 in the fields of Pharmaceuticals, Speciality
Chemicals, Lab Products and Lab Distribution. Founded in 1668, the Merck
Group is represented today by more than 200 companies in 52 countries and
employs 34,300 people world-wide. The company groups its operating activities
under Merck KGaA, in which E. Merck, as a general partner, holds the Merck
family's 74 per cent equity interest in Merck KGaA. The Merck Group strongly
believes that promotion of its employees' self-initiative and
self-responsibility, application-oriented research and development and close
customer relationships in the markets are the keys to long-term corporate
success.
SOURCE Merck KGaA
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Related links:
http://www.merck.de
http://www.parpharm.com
CONTACT:
Phyllis Carter of Merck KGaA,
+49-6151-72-7144, or fax, +49-6151-72-7707, or
phyllis.carter@merck.de
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