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Abraxis BioScience to split operations into two firms

July 03, 2007|Daniel Yi | Times Staff Writer

Biopharmaceutical maker Abraxis BioScience Inc. announced Monday that it would split into two companies, essentially undoing the year-old merger that created it.

One of the spinoffs, which will retain the name Abraxis BioScience and the Los Angeles headquarters, will focus on drug research and development.

The other firm, Abraxis Pharmaceutical Products, will concentrate on generic injectable medicines and be based in Schaumburg, Ill.

The current company was formed in April 2006, when Schaumburg-based American Pharmaceutical Partners Inc., a publicly traded drug maker, merged with American BioScience Inc., a privately owned biopharmaceutical researcher based in Los Angeles.

Both companies were led by Patrick Soon-Shiong, a physician and entrepreneur.

He also helmed the combined company after the merger and will serve as chairman and chief executive of the two new companies.

Last year's union was touted in a statement from Abraxis as a unique opportunity to build an "integrated, global biopharmaceutical company."

On Monday, Soon-Shiong said "by separating these unique business units ... we believe we will be able to unlock the intrinsic value of both companies."

Abraxis shares have performed poorly, losing nearly a quarter of their value since the merger. On Monday, they rose 27 cents to $22.50.

Each share in the current company will correspond to one share in each of the new companies.

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