BioChem Pharma To Mull North America
Vaccine Options
By CHRISTOPHER J. CHIPELLO
MONTREAL -- BioChem Pharma Inc. (BCHE), which owns about 35% of
North American Vaccine Inc.'s (NVX) outstanding shares, could conceivably
seek to buy the rest of the company, depending on what other offers emerge,
said Francesco Bellini, BioChem's chief executive.
In a telephone interview, Bellini told Dow Jones that there's only a "small
probability" that BioChem would seek to buy out the Columbia, Md. vaccine
company. More likely, he said, BioChem would sell its stake in North
American, which has said it is exploring strategic options. Bellini also serves
as vice-chairman of North American's board.
North American Vaccine said earlier this month that it had hired an investment
banking firm, which it didn't identify, and was exploring strategic initiatives
ranging from various types of collaboration agreements through a potential
sale of the company.
In a telephone interview Thursday, North American's director of investor
relations, Tom Newberry, said the company remains in active discussions on
the various strategic options. It hasn't decided which initiatives to pursue, nor
has it set a timetable for a decision, he said.
But BioChem's Bellini indicated he expects the situation to come to a head in
the next few weeks. BioChem's position is that "we have to see what kind of
offers are going to come, and then we're going to make a decision," he said.
BioChem has a vaccine group, which North American could fit with, he
added. "All the options are open for us."
At the same time, Bellini made clear that BioChem doesn't want to maintain a
minority stake if North American is sold. "If we buy, we buy all" of the shares,
he said. "If we sell, we sell all."
In a July 19 news release, North American said it obtained from Royal Bank
of Canada (RY) a $6 million line of credit, guaranteed by BioChem. North
American said it would use proceeds from the line of credit to fund near-term
cash requirements while it completes "pending negotiations on one or more
strategic initiatives."
North American Vaccine shares are trading Thursday at 6 5/8 on the
American Stock Exchange, down 3/8. The company had 32.3 million shares
outstanding at the end of the first quarter.
Including convertible preferred shares, BioChem's fully diluted stake in North
American is around 40%.
-Christopher J. Chipello; 514-875-2570 |
