MERIDIAN, Idaho, Jan. 10 /PRNewswire-FirstCall/ -- RxElite, Inc. (OTC Bulletin Board: RXEI), a developer, manufacturer, and marketer of specialty generic prescription drug products, announces today its acquisition of the business and assets of FineTech Laboratories Ltd. (FineTech), located in Haifa, Israel, for $6.2 million in cash and 18,632,383 shares of RxElite common stock. Combining the ability to develop and manufacture complex active pharmaceutical ingredients with RxElite's robust generic manufacturing and distribution capability is a major step for RxElite.
Jonathan Houssian, CEO and founder of RxElite gave these key points of
-- The acquisition is expected to be accretive to earnings this year.
FineTech achieved revenues of approximately $6 million in and 2007,
with strong profitability,
-- The combination of the two companies will significantly expand the new
product pipeline of RxElite,
-- There are immediate opportunities to grow RxElite and FineTech's
business over the next 12 months by leveraging RxElite's relationships
and FineTech's product development capabilities,
-- RxElite believes that its acquisition of FineTech brings deep
scientific capabilities to develop new complex generic drugs at a
relatively low cost, and
-- By taking this step towards vertical integration in the area of
product development, RxElite can maintain the strong focus of its
sales, marketing and distribution team on successful market
penetration for Sevoflurane, Isoflurane, and the next anesthetic gas
product that it expects to launch in 2009.
"There are tremendous synergies for both companies both short and long
term," continued Mr. Houssian. "The acquisition immediately expands our
domestic and worldwide opportunities to develop and profitably launch
complex generic drugs. A key part o
|SOURCE RxElite, Inc.|
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