American Pharmaceutical to merge with American BioScience

11/28/05 - newratings.com

NEW YORK, November 28 (newratings.com) – American Pharmaceutical Partners Inc (APPX) Monday announced its plans to acquire its largest shareholder, American BioScience Inc, for stock worth about $4.1 billion.

Under the terms of the transaction, American Pharmaceutical Partners would issue 86 million additional common shares to American BioScience, raising the latter company’s stake in American Pharmaceuticals from about 64.4% to about 83.5%. The entity formed by the merger of American Pharmaceutical Partners with its parent would be called Abraxis BioScience and would have annual revenues of more than $500 million. The entity would have worldwide rights for the breast cancer drug, Abraxane, which was approved in the US earlier this year. Patrick Soon-Shiong, American BioScience’s current CEO, would become chairman and CEO of the new company.