Inyx to buy Sanofi-Aventis firm

US drug delivery company Inyx has signed a definitive agreement to acquire Aventis Pharmaceuticals Puerto Rico, part of the French Sanofi-Aventis group.

The Aventis operations in Manati, Puerto Rico, consist of a pharmaceuticals production center that will provide Inyx with a strategic base in the US to complement its present development and manufacturing facilities located in the UK.

Moreover, it will provide Inyx with favourable tax incentives, including a corporate income tax rate of 2 to 7 per cent for 15 years for the Puerto Rican unit, as well as 90 per cent exemption on property tax, 60 per cent exemption on excise tax and tax-free purchases on materials and equipment on the Island, the company noted.

Jack Kachkar, Inyx' CEO, described the acquisition as a 'transforming event' in the company's corporate development. He said it would be materially additive in terms of the assets and multi-year production contracts that are being acquired, and would be profitable from the start.

The acquisition, which is subject to completion of a major contract transfer, is scheduled to close by 31 March, 2005. Financial terms were not disclosed, but Inyx said it expected to be able to pay for the purchase through non-dilutive financing.