>>Elan goes back on word with Draxis, terminates purchase of sales division in Canada. Look like things are getting desperate in Elanville.>>
With their new and narrowed focus Elan has no reason to maintain a sales organization in Canada. To me this looks like a very sensible decision and not as a sign of desperation. The transaction in question:
MISSISSAUGA, Ontario--(BUSINESS WIRE)--June 4, 2002--DRAXIS Health Inc. (TSX: DAX; NASDAQ: DRAX) (NASDAQ:DRAX - News; TSE:DAX. - News) has modified the terms of the previously announced proposed sale of its Canadian pharmaceutical sales and marketing division (Draxis Pharmaceutica) to Elan Corporation, plc.
In January 2002, DRAXIS announced it had entered into a binding letter of intent with Elan wherein Elan agreed to acquire the operations, product rights and other assets and obligations of the Draxis Pharmaceutica division.
Under the modified agreement, Elan will acquire Canadian product rights for Zanaflex®, Diastat®, Mysoline®, Permax®, Eldepryl®, Novo-Selegiline, Ziconotide, MYOBLOC(TM), Frovatriptan, Levulan Kerastick®, Zelapar(TM) and Zonegran(TM). The transaction will now exclude the Canadian rights to Alertec® in addition to Hectorol(TM) and paclitaxel.
DRAXIS will receive a cash payment of US$9 million upon closing along with a participating interest based on Canadian sales of two products included in the transaction. In addition, Elan will assume certain liabilities associated with Draxis Pharmaceutica. |
