IAF BioChem International Inc. said Tuesday that its third-quarter results will include a profit of U.S.$13.1 million (C$15million), or 72 cents a share, as a result of a new issue ofcommon shares by North American Vaccine Inc., an affiliatedcompany.

North American (AMEX:NVX) last week completed an offering of3 million shares of stock at $13.88 a share. After the offering,IAF BioChem owns 40 percent of North American sharesoutstanding, including 4.8 million common shares and 1 millionconvertible preferred shares. North American has 12.6 millioncommon shares and 2 million preferred shares outstanding.

Laval, Quebec-based IAF accounts for North American on anequity basis and carries its investment at a book value ofabout $5.9 million. For the third quarter ending Oct. 31, IAFwill record a profit on dilution of $13.1 million and carryNorth American on its books at $19.2 million.

IAF stock (NASDAQ:BCHXF) closed Tuesday unchanged at $24.38.North American, located in Beltsville, Md., closed at $14.13,down 13 cents.

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