MALVERN, Pa. -- Centocor Inc. said Thursday that on July 1, thefirst day legally possible, it will exercise its option topurchase all 2.9 million shares outstanding of Tocor Inc.common stock and reacquire rights to products being developedby Tocor.
Centocor spun off Tocor in August 1989 to develop monoclonalantibody-based products to treat rheumatoid arthritis,multiple sclerosis and systemic lupus erythematosus. Tocorunits (NASDAQ:TOCRZ) consist of a share of Tocor stock and awarrant to purchase two shares of Centocor stock(NASDAQ:CNTO).
Centocor retained the right to purchase all Tocor stockbetween July 1, 1991 and Dec. 31, 1994, at various exerciseprices. The exercise price on July 1 is $24 per share.
Centocor stock closed at $35.50 on Thursday, up $1. Tocorunits closed unchanged at $60.75.
Centocor will pay the aggregate exercise price by issuing 2million shares of Centocor stock. The company said its 1991second-quarter results will include a charge to earnings ofabout $71 million for reacquisition of product rights.
On July 1, the warrants will begin trading separately onNASDAQ under the symbol CNTOW.
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