Abraxis BioScience To Separate Businesses

Abraxis BioScience, Inc. has plans to split its hospital-based product business, Abraxis Pharmaceutical Products (APP) and Abraxis Oncology and Abraxis Research (the new Abraxis BioScience), into two independent, public companies. According to the company, the transaction would enable each company to compete more effectively in their respective markets.

Abraxis will have $1.45 billion of senior credit facilities comprised of a funded $1.3 billion term loan and an unfunded $150 million revolving credit facility. APP will be responsible for the debt following the separation. A portion of the proceeds raised through the debt financing will be used to repay existing debt and approximately $1 billion will be transferred to the new Abraxis BioScience just prior to the separation.

Patrick Soon-Shiong, M.D., chairman and chief executive officer of Abraxis BioScience, stated, “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 PR, 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.

The transaction is expected to be complete in 4Q2007, subject to customary closing conditions.