Meridian Diagnostics Inc. has proposed raising $12.5 million throughthe sale of convertible subordinated debentures to help the companyfinance acquisitions and license products and technology.
As of June 30, 1996, the Cincinnati-based company had $8 million incash and reported net earnings of $3.5 million for the first ninemonths of its fiscal year, which ends Sept. 30. In fiscal year 1995, thecompany reported a profit of $3.5 million.
Underwriter Roney & Co., of Detroit, has an overallotment option topurchase another $1.9 million worth of the 10-year notes, raisingtotal gross proceeds of $14.4 million for Meridian.
Earlier this year, Meridian acquired Worcester, Mass.-basedCambridge Biotech Corp.'s enteric product line, which has generatedannual sales of $4 million and includes diagnostics for adenovirus,rotavirus and Lyme disease.
Meridian paid Cambridge Biotech, which is reorganizing underfederal bankruptcy protection, $5.5 million in cash plus a $200,000advance on royalties.
Meridian manufactures in vitro immunodiagnostic tests for infectiousdiseases. It has about 100 products for diagnoses of parasitic,gastrointestinal, respiratory, urogenital and viral diseases. Thecompany's biggest selling tests are for the bacterium, Clostridiumdifficile; viral diseases, such as infectious mononucleosis; andrespiratory diseases, such as pneumonia.
Meridian's immunodiagnostics test for diseases by identifyingantigens from the infection and the antibodies unleashed by theimmune system to fight the pathogens._ Charles Craig
(c) 1997 American Health Consultants. All rights reserved.