Par Pharmaceutical divests active ingredient-maker FineTech

By E. Janene Geiss

Philadelphia, Jan. 26 - Par Pharmaceutical Cos., Inc. said Thursday that it divested FineTech Laboratories Ltd., effective Dec. 31, transferring the unit to FineTech's chief executive officer, who has resigned from Par's board as part of the transaction.

FineTech develops and uses highly complex synthetic chemical processes to design and develop active ingredients used in the production of finished products for the pharmaceutical industry, according to a company news release.

Acquired by Par in 2002, FineTech employs 42 people at its research and development facility in Haifa, Israel.

Par said it will recognize a noncash charge of about $35 million in the fourth quarter of 2005 as a result of the divestiture.

Since Par will no longer be required to fund FineTech's operations, Par said it expects to recognize annual pretax cost savings of about $4 million.

FineTech has been transferred to Arie L. Gutman, its president and chief executive officer, who has resigned from Par's board of directors, of which he has been a member since 2002.

As an independent entity, FineTech will be better positioned to fulfill its original mission of providing research and development services and complex active pharmaceutical ingredients to customers in the pharmaceutical industry, officials said.

Par said it will continue to collaborate with FineTech on specific projects. Through a supply agreement, FineTech will continue to provide Par with certain active pharmaceutical ingredients.

Par, based in Spring Valley, N.Y., develops, manufactures and markets generic drugs and innovative branded pharmaceuticals for specialty markets.

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