Abraxis cleaves company into two new outfits

Abraxis Bioscience is splitting its business in two, creating one company called Abraxis Pharmaceutical Products that will focus on its hospital-based business and a new Abraxis BioScience that will concentrate on its proprietary business. Deutsche Bank and Wachovia Bank, N.A. have provided an underwritten commitment for $1.45 billion of bank financing. Abraxis BioScience will receive about $1 billion from the bank financing and will be strategically focused on its nab technology platform, the development of its proprietary pipeline and expanded commercialization of ABRAXANE.

"Strategic initiatives executed over the past few years, including the acquisition of global rights to ABRAXANE and the nab technology platform, the acquisition of the AstraZeneca anesthesia/analgesic portfolio and the acquisition of the Pfizer manufacturing facility in Puerto Rico, have accelerated the growth of two robust businesses with more than 1,900 employees and combined revenues that are expected to approach $1 billion by the end of 2007," says Patrick Soon-Shiong, M.D., chairman and CEO. "The separation will permit each company to focus on their respective pipelines, and business development opportunities and compete more effectively in their individual marketplaces."

- see the release on the deal

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