I heard that BMET was upgraded today. Can anyone verify this? I am looking to buying because the recent merger announcement with Merck looks very good. Here it is:
WARSAW, Ind.--(BW HealthWire)--May 19, 1997--Biomet, Inc. (NASDAQ:BMET)
announced today that it has signed a letter of intent with Merck KGaA to establish a 50/50 joint venture for orthopedic products in Europe. Biomet and Merck will each contribute their existing
European orthopedic operations to the venture, which will operate under the name,
``Biomet-Merck.'' Pro forma sales of the joint venture for next fiscal year are anticipated to be in excess of $200 million. The joint venture will be structured to allow Biomet to consolidate all of
the venture's revenues and its pro-rata share of the venture's earnings. Merck brings to the venture an extensive array of chemical, biological, pharmaceutical and orthopedic technologies
and products, while Biomet brings its orthopedic products and technologies especially concentrated in total joint replacement.
The venture will provide Biomet with the exclusive right to license Merck's existing biomaterials-based orthopedic products for sale outside of Europe as well as future products developed by the joint venture. Biomet's Chairman of the Board, Niles L. Noblitt, will assume
the additional role of CEO and Managing Director of the venture. The consummation of the joint venture transaction is subject to certain conditions, including the execution of a definitive
agreement and the approval of the Boards of Directors of Biomet and Merck.
Dane A. Miller, Ph.D., Biomet's President and CEO, indicated that, ``This organization will be one of the strongest development and marketing groups in the European orthopedic market.
Access to Merck's superior biomaterials technologies will provide the Biomet group with a wide array of new products flowing well into the next century. We are proud to have been selected as
Merck's partner.'' Dr. Bernard Scheuble, President of Merck's Ethical Pharmaceutical Division, added, ``The strategic fit between Biomet's European operations and Merck's Biomaterial Division is complementary in terms of product lines, geography and core competencies. In
addition, our partnership with Biomet will provide strong access to the important U.S. market for Merck's comprehensive line of existing and future biomaterial products. In Biomet, we have a partner with whom we share common values and vision who will leverage our strong
development capability both in Europe and internationally.''
This sounds especially good because Biomet will be allowed to distribute Merck's products in the U.S. (of course FDA approvals are needed but usually doesn't take as long as drugs).
Any comments? |
