DynaGen Announces Restructuring with Superior Pharmaceutical Shareholders

Strategic Insights -

DynaGen, a health care company based in Massachusetts, has announced a restructuring with Superior Pharmaceutical Shareholders, reducing the acquisition purchase price by $5.0 million. This agreement eliminates the $5.0 million common stock payment that was due in June 1998. DynaGen is currently negotiating with several financial institutions to obtain conventional bank financing to retire the remaining note obligation to the Superior Shareholders.

DynaGen is a health care company involved in the research, development, manufacture, and distribution of brand and generic therapeutic products. The company's subsidiary, Able Laboratories, Inc., develops and manufactures generic products in its FDA-registered 46,000 square foot facility located in New Jersey. DynaGen markets and distributes products to independent retail chain and institutional pharmacies through its wholly-owned marketing subsidiaries, Superior Pharmaceutical Company and Generic Distributors Incorporated.

The company maintains operations in Massachusetts, New Jersey, Ohio, and Louisiana. Despite the restructuring, DynaGen faces risks and uncertainties related to its dependence on a limited number of products, the successful development and introduction of second-generation products, and the impact of competitive products and pricing, among others.

Key Takeaways:

  • DynaGen has reduced the acquisition purchase price by $5.0 million through a restructuring with Superior Pharmaceutical Shareholders.
  • The agreement eliminates the $5.0 million common stock payment that was due in June 1998.
  • DynaGen is currently negotiating with several financial institutions to obtain conventional bank financing to retire the remaining note obligation.
  • The company has a presence in Massachusetts, New Jersey, Ohio, and Louisiana.
  • DynaGen's subsidiaries, Able Laboratories, Inc. and Superior Pharmaceutical Company, are involved in the development, manufacture, and distribution of generic and brand-name therapeutic products.
  • The company faces risks and uncertainties related to its business, including the impact of competitive products, pricing, and technological difficulties.

Statistics:

  • $5.0 million: The reduction in acquisition purchase price through the restructuring with Superior Pharmaceutical Shareholders.
  • 46,000 square feet: The size of Able Laboratories, Inc.'s FDA-registered facility in New Jersey.
  • 4 states: The locations of DynaGen's operations, including Massachusetts, New Jersey, Ohio, and Louisiana.
  • 2 subsidiaries: DynaGen's subsidiaries, Able Laboratories, Inc. and Superior Pharmaceutical Company.
  • 1 report: The report on Form 10-K for the year ended December 31, 1997, which details the company's risks and uncertainties.

Sources:

  • BW HealthWire
  • August 4, 1998
  • DynaGen, Inc. press release