Bio-Science, SmithKline Plan Merger

American Hospital Supply Corp., owner of Van Nuys-based Bio-Science Laboratories, said Wednesday that it has agreed to merge the lab operation into a new company jointly owned with SmithKline Beckman Corp.

The new firm, to be based in King of Prussia, Pa., near SmithKline’s Philadelphia headquarters, will be called SmithKline Bio-Science Laboratories. SmithKline will own 72.5% of the firm, with the rest held by Chicago-based American Hospital Supply, the companies said.

Officials said they don’t expect the merger to have any immediate effect on the 500 Bio-Science employees based in Van Nuys or on the 350 people who work at SmithKline’s clinical laboratory in Woodland Hills.

James H. Cavanaugh, president of the newly formed company and previously head of SmithKline’s clinical labs, said the merger of the operations could eventually result in some layoffs at labs outside California where there are overlapping facilities.

The two companies operate “reference” labs that do medical tests of tissue and other samples provided by hospitals, private physicians and others. SmithKline has about 70 such labs, Cavanaugh said, while Bio-Science has about 40. He said the total number eventually will be reduced to about 100.

“Over time, there could be some personnel reductions, but we have no specific plans at this time,” Cavanaugh said.

The Bio-Science facility in Van Nuys, considered one of the finest medical testing labs in the nation, will continue to operate under current management, he said, adding that he didn’t think any of the employees there would be transferred to the Philadelphia-area office.