Bioglan shares collapse as deal with Bristol-Myers Squibb is called off
Bioglan of the UK has been forced to drop its plans to acquire for $765million the skin care products business of Bristol-Myers Squibb (Marketletter July 30), as the firm is struggling to finance operations. The news was revealed as Bioglan announced a first-half 2001 pretax loss of L35.7 million ($51.7 million) after exceptional charges of L17.7 million, compared with a loss of some L746,000 in the same period a year ago. Sales were up to L33.7 million from L33 million.
The news sparked a collapse in the company's share price during trading on October 19, leaving it hovering around the 17 pence mark, down from nearly L4.30 when the proposed deal with B-MS was first announced. Bioglan also revealed that it is to cut 15% of its workforce, and will sell off its generic drugs and UK contract manufacturing businesses in order to cut rising debt levels.
Able to pay debts?
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