Medeva To Sell Pain Management Drugs And Manufacturing Facility To Amphastar

Amphastar Pharmaceuticals Inc. has entered into a conditional agreement to acquire International Medication Systems Ltd. (IMS) and its manufacturing facility at South El Monte, CA from Medeva PLC. The deal also includes the U.S. marketing rights to the hospital products manufactured at the IMS site. The transaction is expected to be completed in early October 1998.

The IMS product range consists of pain management and local anaesthetic drugs in pre-filled syringes and other drug delivery devices. In the six months to June 30, 1998, these products generated sales in the U.S. of £7 million and contributed an operating profit of £0.3 million.

With the completion of this transaction, Medeva will achieve its objective of withdrawing from a product range and manufacturing site that are no longer part of its core business. The IMS site has recently been undergoing rationalization prior to its planned closure, as part of the wider restructuring of Medeva's US operations following the acquisition of the Rochester business in 1996. The sale will have the effect of increasing Medeva's net asset value by approximately 3 million pounds.

Medeva will continue to market certain IMS products in Europe and at completion of the transaction will enter into a five-year agreement with Amphastar to secure the supply of these products.

For more information: Alexandra Hockenhull, Corporate Communications, Medeva PLC, 10 St James's Street, London, SW1A 1EF, United Kingdom. Tel: 011-441-71-839-3888. Fax: 011-441-71-930-1514.