Endogen Inc. announced late Friday that it had completed itsacquisition of Diagnostics Holding Corp. In the transaction,Endogen of Boston, Mass., increased its cash reserves by $3.075million and acquired all the outstanding stock (5,711,041shares) of Diagnostics Holding Corp. in exchange forapproximately 1.2 million shares of Endogen common stock.
Endogen's stock started trading Monday under the NASDAQsymbol ENDG. It closed the day at $2.50 per share.
"The cash generated through the transaction strengthensEndogen's financial position, allowing us to accelerate Endogen'sinternal growth and to pursue possible acquisitions ofcompanies or product lines in the research products and nichediagnostics fields," said Owen Dempsey, Endogen's presidentand chief executive officer.
Thus ends an intricate three-stage restructuring effortannounced in August 1992, in which Leeco Diagnostics Inc.(NASDAQ:LECO) of Southfield, Mich., would merge withEndogen. The corporate reorganization involved the Italiancompany Recordati International Holding S.A. and its majority-owned subsidiary, Leeco Diagnostics, which makes and marketsdiagnostic test kits to hospital and clinical laboratories,physicians' offices and over-the-counter markets. Leeco's stockclosed Monday at $1.06 per share.
At the time, Recordati paid $3.5 million to Diagnostics HoldingCorp. and relinquished its 53 percent ownership in DiagnosticsHolding. In addition, Recordati assumed 100 percent ownershipof both Leeco, which continues to exist as a separate company,and Technogenetics S.R.L., Leeco's operating business. "Ratherthan liquidate Leeco for cash, this structuring was an attemptto keep the biotech investors in the market," said Daniel Burns,Endogen's director of investor relations.
As a result of the merger, there are 2,560,563 shares ofEndogen common stock outstanding. Leeco shareholders(excluding Recordati) now own approximately 47 percent ofthose.
Endogen, which was founded in 1983, currently markets morethan 120 specialty research reagents and 12 immunoassay kitsto the biomedical research community. Endogen's net profit onsales in the quarter ended Nov. 30, 1992 was $112,000, andthe net revenues for the six months ended that same date wereroughly $1.2 million, said Endogen's Burns.
-- Jennifer Van Brunt Senior Editor
(c) 1997 American Health Consultants. All rights reserved.