IVAX Corporation announced that it has entered into an agreement to acquire Phoenix Scientific Inc. Headquartered in St. Joseph, Mo., Phoenix Scientific is the industry's largest manufacturer of generic veterinary pharmaceutical formulations, with 2004 sales of over $130 million. The closing of the transaction is expected to occur during the second quarter of 2005, after which Phoenix will be combined with DVM Pharmaceuticals Inc., IVAX' veterinary products business.

The Purchase Agreement provides that at the closing IVAX will pay a combination of $196,850,000 in cash and $75,000,000 in IVAX common stock as consideration for 100 percent of Phoenix.

Jane Hsiao, Ph.D., Vice Chairman-Technical Affairs and Chief Technical Officer of IVAX, and Chairman and Chief Executive Officer of DVM Pharmaceuticals, Inc., said, "Phoenix, like DVM, is a company with a superior reputation and management; it will be an important addition to IVAX' existing veterinary operations and greatly enhance our ability to compete in the U.S. animal health market. The acquisition of Phoenix is expected to be immediately accretive and a growing contributor to IVAX' earnings."

DVM is recognized by veterinarians as a leader in providing topical and oral treatments for dermatological conditions in cats, dogs and horses. Phoenix is a provider of products for food animals, but is increasing its emphasis on the high growth rate segment of the companion animal market. Phoenix manufactures over 80 products in the form of oral liquids and solids, injectables, pour-ons and pastes, and other novel formulations.

Source: Company Release