It will be a tax-free event.
<<Agouron said the tax-free plan, subject to shareholder approval, provides a fractional share of the new oncology unit for each share of existing common stock, which will become one share of a series of common stock that tracks the performance of Agouron's other operations.>>
LA JOLLA, Calif. (Dow Jones)--Agouron Pharmaceuticals Inc. (AGPH) filed with the Securities and Exchange Commission to create a new series of common stock which tracks its oncology unit's performance.
In a press release Thursday, Agouron said the rest of its operations, including the ongoing commercialization of its anti-HIV drug Viracept, will be tracked by the remaining series of Agouron common stock.
Agouron said its oncology research and development activities are "overshadowed" by its high-visibility HIV and AIDS work, and said the new stock series would position shareholders to realize an appropriate value for Agouron's oncology research and development portfolio.
The company said the action would also free its non-oncology business Agouron said the tax-free plan, subject to shareholder approval, provides a fractional share of the new oncology unit for each share of existing common stock, which will become one share of a series of common stock that tracks the performance of Agouron's other operations.
from the earnings drain imposed by continuing investment in the oncology portfolio.
The company said it expects the plan to be implemented and reflected in the 1999 second quarter.
Agouron researches and develops small-molecule drugs for the treatment of AIDS, cancer and other diseases.
Dow Jones Newswires -- August 13, 1998
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