DRUG FIRM CONSOLIDATION SmithKline, Ivax announce mergers

Consolidation of the pharmaceutical industry continues to gather steam as two newly announced mergers and the possible divestment of a large drug operation lead to fewer, but larger, players in the field. In the largest of last week's deals, U.K.-based SmithKline Beecham made a winning $2.93 billion cash bid for the remainder of Eastman Kodak's Sterling Winthrop consumer health products subsidiary. Kodak's previous sale of Sterling's prescription pharmaceutical business to France's Sanofi for $1.68 billion (C&EN, June 27, page 30) awaits approval by regulatory bodies. Also last week, generic drugmaker Ivax Corp., based in Miami, announced it will acquire generic drug producer Zenith Laboratories, based in Northvale, N.J., in a stock swap worth about $594 million. And Kansas City, Mo.- based Marion Merrell Dow and its 72% owner, Dow Chemical, separately stated that each had engaged an investment bank to explore "strategic alternatives," such as potential acquisitions, joint-marketing arrangements, or busin...