HALSEY DRUG VALUED AT $ 14.3 MIL. IN OFFER FROM TEMPO GROUP

Executive Summary

HALSEY DRUG VALUED AT $ 14.3 MIL. IN OFFER FROM TEMPO GROUP for all of the generic firm's common stock at $ 3 per share in cash. At the end of the third quarter ended Sept. 31, Halsey had approximately 4.8 mil. shares outstanding. Halsey announced the unsolicited offer from Tempo Group, a healthcare firm based in Indonesia, in a Jan. 18 press release. "The offer is conditioned upon unanimous approval of the company's board of directors, the support of the principal shareholders of the company, and the reaching of agreements with principal members of management insuring their continued availability to the company," Halsey said. The company's board will review the offer in early February. In 1986, Halsey sales were $ 9.2 mil. and the net after taxes was $ 142,591. Sales for the first nine months of 1987 were ahead nearly 30% to $ 8.3 mil. and net income more than doubled to $ 230,000. Halsey had ANDA approvals for seven drug products in 1987, including ibuprofen, lorazepam, hydrocodone bitartrate, indomethacin, quindine glucomate and promethazine HCI (Pherazine VC). Halsey is located in Brooklyn, N.Y. It sells generic drugs, primarily under the Blue Cross trade name, to approximately 1,500 accounts. In 1986, Halsey completed its first major public offering, selling 488,750 units, with a net proceeds of $ 3.2 mil. The offering valued each share at $ 2. After the offering, the officers and directors of the firm owned 44.6% of the company stock, with Vice Chairman Seymour Marcus and Chairman Alexander Marcus each owning 21.5%. The president is Jay Marcus, son of Seymour Marcus, son of Seymour Marcus. He assumed the title in 1985. The firm was founded in 1935. It has about 130 employees.