FineTech Pharmaceutical Ltd. has been acquired by OPKO Health Inc. (NYSE:OPK) for $27.5 million in cash and shares. OPKO, controlled by Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) chairman Philip Frost, produces ophthalmologic drugs.
Based in the Haifa suburb of Nesher, FineTech produces high value, high potency active pharmaceutical ingredients (APIs). It does not produce brand drugs, but ingredients for other companies' products, although it has patents on the production processes of APIs and it has proprietary know-how in several important areas of organic synthesis. Some of its products are produced nowhere else.
OPKO said that the acquisition will give it the ability to develop complex and problematic APIs for sale or license to pharmaceutical companies in the US, Canada, Europe, and Israel.
FineTech CEO Dr. Arie Gutman founded the company in 1990, and will stay on after the acquisition. The deal is due to be closed on December 29.
OPKO chairman Philip Frost said, "FineTech’s significant know-how and experience with analytical chemistry and organic syntheses, together with its production capabilities, will play a valuable role in the development of OPKO’s pipeline of proprietary peptoids and other molecules for diagnostic and therapeutic products, while providing revenues and profits."
Published by Globes [online], Israel business news - www.globes-online.com - on December 21, 2011
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