Applied Bioscience International Inc. has signed of a letter ofintent to acquire Pharmaco Dynamics Research Inc., APBIannounced on Wednesday.
The transaction, which is subject to a definitive agreementand approval of APBI stockholders, would give Pharmaco'sshareholders 3.2 million shares of APBI common stock, or 23percent of the company.
Based on Wednesday's price, the deal would be worth about $96million. The stock (NASDAQ:APBI) closed at $29.88, down 13cents.
APBI of East Millstone, N.J., provides testing and research anddevelopment services, including biological safety testing,environmental risk assessment, and clinical research anddevelopment. Privately held Pharmaco of Austin, Texas,provides contract clinical research, analytical chemistry andrelated services to pharmaceutical and biotechnologycompanies.
For the 12 months ended March 31, Pharmaco's revenues were$30.5 million and its pre-tax income was $3 million. KennethH. Harper, APBI chairman and chief executive, said Pharmaco'spre-tax income had grown at a 57 percent compound rate overthe past five years.
Pharmaco will be merged with a new APBI subsidiary. -- SteveUsdin
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