Monday, April 15, 2002
Merger with Cardinal Health division will create the most comprehensive, independent pharmaceutical development services platform in the industry
DUBLIN, Ohio, March 18, 2002 - Cardinal Health, Inc. (NYSE: CAH), a leading provider of products and services supporting the health care industry, today announced a definitive agreement to acquire privately held Magellan Laboratories Incorporated, a leading full-service contract pharmaceutical development organization with facilities in Research Triangle Park, N.C. and San Diegotwo of the country's most important pharmaceutical and biotechnology communities.
The transaction, structured as an acquisition of stock, is expected to be completed in Spring 2002, subject to regulatory clearance and other customary conditions. Financial terms of the deal were not disclosed.
Magellan's client roster consists of more than 200 pharmaceutical and biotechnology companies, including nine of the top ten pharmaceutical manufacturers. The company has over 500 employees, including more than 80 analytical and synthetic chemistry and pharmaceutical research Ph.D.'s, offering clients extensive expertise in early stage drug development. Magellan has seven strategic divisions: Analytical, Inhalation, Microbiology, Structural Chemistry, Synthesis, Research and Bioanalytical, and Pharmaceutics.
George L. Fotiades, President and Chief Operating Officer of the Cardinal Health Pharmaceutical Technologies and Services segment, said, "Magellan's proven performance in pharmaceutical product development strongly enhances our service offering upstream to the manufacturer, allowing Cardinal Health to add more value earlier in the life of the molecule's development. From early stage drug development to commercial manufacturing on through to packagingand for virtually every dosage formthis merger positions Cardinal Health as the most comprehensive product development service provider to the pharmaceutical and biotechnology industries."
W. Lowry Caudill, Ph.D., Magellan co-founder and President, Pharmaceutical Development, said, "We are excited to join forces with Cardinal Health's Pharmaceutical Technologies and Services segment, as this will enable our combined companies to better capitalize on industry demand for our services. Magellan is particularly well positioned to accelerate revenues downstream to the global manufacturing and packaging services of Cardinal Health.
Alfred Childers, Ph.D., Magellan co-founder and President, Administration, added, "Together, our operations can provide a full spectrum of services-from pre-clinical services to commercial manufacturing. We can assist pharmaceutical and biotechnology firms in overcoming internal resource constraints while providing the highest quality of service to handle the development demands of their product pipelines. At the same time, smaller firms have shown an inclination to retain their intellectual property longer, often through Phase II and III, in order to maximize their business opportunity. Together, we can also meet this need exceptionally well."
Operating as part of Cardinal Health, Magellan Pharmaceutical Development Services will have three locations: its current two in Raleigh and San Diego, plus Cardinal Health's soon-to-open Pharmaceutical Technologies and Services Center in Somerset, New Jersey, which will ultimately house more than 200 pharmaceutical and analytical chemists. Also, Cardinal Health's current sterile product development facility in Albuquerque will be aligned with Magellan's San Diego operation to provide customers with a much broader offering in sterile product development.
About Magellan Laboratories
Founded in 1991 by leading pharmaceutical scientists, Magellan Laboratories serves the continually changing needs of the pharmaceutical and biotechnological industries by providing a complete range of analytical testing and development services that are GLP and GMP compliant. Magellan's client roster includes 200 pharmaceutical and biotech companies, including nine of the ten largest pharmaceutical companies. Magellan has facilities in Research Triangle Park, N.C. and a biotechnology facility in San Diego, Calif. For more information on Magellan Laboratories, visit www.magellanlabs.com.
About Cardinal Health
Cardinal Health, Inc. (www.cardinal.com) is a leading provider of products and services supporting the health care industry. Cardinal Health companies develop, manufacture, package and market products for patient care; develop drug-delivery technologies; distribute pharmaceuticals, medical-surgical and laboratory supplies; and offer consulting and other services that improve quality and efficiency in health care. The company, which is headquartered in Dublin, Ohio, employs more than 49,000 people on five continents and produces annual revenues of more than $40 billion. Cardinal Health's Pharmaceutical Technologies and Services group has operations worldwide, employing more than 8,900 people at 31 drug development, manufacturing and packaging centers in 11 countries.
Except for historical information, all other information in this news release
consists of forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are subject to
risks and uncertainties that could cause actual results to differ materially from
those projected, anticipated or implied. The most significant of these uncertainties
are described in Cardinal Health's Form 10-K, Form 8-K and Form 10-Q reports and
exhibits to those reports, and include (but are not limited to) the costs, difficulties,
and uncertainties related to the integration of acquired businesses, the loss
of one or more key customer or supplier relationships, changes in the distribution
outsourcing patterns for health-care products and/or services, the costs and other
effects of governmental regulation and legal and administrative proceedings, and
general economic conditions. Cardinal undertakes no obligation to update or revise
any forward-looking statements.
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