LAB International intents to acquire PharmaForm
LAB International Inc. announced it has signed a non-binding letter of intent ("LOI") to acquire all of the outstanding membership interests of PharmaForm L.L.C.. The closing of this transaction is subject to the completion of satisfactory due diligence, the negotiation of a definitive purchase and sale agreement, regulatory and Board approval. The closing of the transaction is anticipated to take place on or before December 1, 2006.
Consideration for the acquisition is U.S $7.5 million payable in cash and $4.375 million in LAB shares at closing. PharmaForm shareholders are eligible for additional payments in LAB shares upon completion of certain milestones related to pipeline products in PharmaForm's drug development programs reaching specific clinical trial stages.
"The acquisition of PharmaForm is central to our corporate strategy of becoming an integrated specialty Pharma and pain management Company. It will add complementary platforms and products to our pipeline which will soon be entering clinical trial stages. It will also ensure manufacturing capabilities of Fentanyl TAIFUN® in the U.S., provide us the flexibility to streamline our LAB Pharma unit by leveraging operational synergies and greatly enhance our management and scientific expertise." commented Dr. Halvor Jaeger, CEO of LAB International.
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