Magazine article Drug Topics

Bergen Brunswig, Ivax Terminate Merger Plans

Magazine article Drug Topics

Bergen Brunswig, Ivax Terminate Merger Plans

Article excerpt

The impact of a new kind of vertical merger, between a drug wholesaler and a generic drug manufacturer, now remains a matter of speculation. Drug wholesaler Bergen Brunswig, Orange, Calif., unilaterally terminated its merger agreement with generic manufacturer Ivax Corp., Miami, arguing that Ivax committed "various breaches" of the agreement. Bergen Brunswig did not describe the nature of the breaches, however. The former definitive merger agreement between the two companies was announced in mid-November 1996.

In response to Bergen Brunswig's decision, Ivax argued that the termination of the merger was "without good cause."

"Although we saw great opportunity in a merger of equals with Bergen, we are prepared to proceed on an independent basis," said Phillip Frost, Ivax chairman and CEO. "Recognizing the possibility that the Bergen merger might not be approved or completed, we developed, together with our advisers, a number of contingency strategies geared toward the success of an independent Ivax and look forward to announcing and implementing those strategies in the near term."

Might the wholesaler choose to merge with another generic manufacturer? …

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