IVAX/Bergen Merger Called Off

26 March 1997

In a surprise move, US generics drugmaker IVAX Corp and leading US drugwholesaler Bergen Brunswick have called off their planned merger (Marketletter November 25, 1996). On the news, the share prices of both companies plunged. IVAX had already been down on various worries, but while Bergen rebounded, it did not.

Without explaining much, IVAX chief executive Phillip Frost said that Bergen had "unilaterally terminated" the companies' planned merger, "without good cause." He added that "although we saw a great opportunity in a merger of equals with Bergen, we are prepared to proceed on an independent basis."

For Bergen's part, company president and chief executive Donald Roden said that one of his firm's central strategies for the decision is the desire to cut supply costs.

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