The deal has been approved by the boards of directors of both companies and is expected to close in the fourth quarter of 2005, pending regulatory and other customary approvals.
Alpharma is retaining ownership of its branded pharmaceuticals, Active Pharmaceutical Ingredients, and Animal Health businesses, as well as ParMed Pharmaceuticals, its US pharmaceutical distribution business.
For the six month period ended June 30, 2005, the retained businesses generated 41% of the total company revenue, and 64% of total company operating income before corporate and unallocated expenses.
“The divestiture will concentrate our focus on our specialty pharmaceutical businesses, simplify our organization, and provide significantly improved financial capacity to acquire products and technologies and create alliances that will drive long-term growth,” said Alpharma vice chairman, president and CEO, Ingrid Wiik. “As a result, we will be exceptionally well-positioned to grow our highly profitable portfolio of specialty pharmaceutical businesses.”