This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

American Pharmaceutical Merges With Holder

American Pharmaceutical Partners (APPX) plans to merge with its parent company, privately held American BioScience, uniting two outfits founded by Patrick Soon-Shiong and bringing their controversial management structure under the same roof.

Through an all-stock transaction, the companies will merge and become known as Abraxis BioScience. American BioScience currently owns about 64.4% of American Pharmaceutical. The companies expect to close the deal in the first half of 2006.

"We believe this merger is a unique opportunity to combine the strengths of a development-stage biotechnology company with those of a growing and profitable injectable pharmaceutical business to create a fully integrated, global biopharmaceutical leader," said Soon-Shiong, the executive chairman of American Pharmaceutical and the chairman and CEO of American BioScience.

Shareholders of American Pharmaceutical were miffed upon learning of the deal, and they sent the stock down $7.66, or 16.1%, to $39.95.

On the basis of American Pharmaceutical's closing stock price Nov. 25, the combined company would have a market value of about $7.5 billion. Combined revenue would exceed $500 million.

American Pharmaceutical will issue about 86 million shares to American BioScience stockholders, raising American BioScience's stake in the combined company to roughly 83.5%.

Soon-Shiong has now assumed the duties of chairman and chief executive of American Pharmaceutical, replacing Al Heller, who resigned as the company's CEO and as a member of the board. Soon-Shiong who will be chairman and CEO of Abraxis BioScience once the merger is completed.

The centerpiece of the companies' merger is the breast cancer drug Abraxane, a branded product that was approved by the Food and Drug Administration earlier in the year. Other products the firm will own will include an injectables business focused on the oncology, critical care and anti-infective markets.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,689.14 +227.82 1.38%
S&P 500 1,950.32 +23.21 1.20%
NASDAQ 4,448.7040 +65.8570 1.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs