Pharmaceuticals Firm to Divide Subsidiary’s Stock

International Pharmaceuticals Products Inc. said it will establish its newly created Delaware subsidiary--American Pharmaceuticals Inc.--as an independent, public company by distributing all 6 million shares of API’s outstanding common stock to International Pharmaceuticals shareholders once the subsidiary is registered with the Securities and Exchange Commission.

The Costa Mesa-based developer of cancer medications said it will retain 9 million shares, valued at $1 a piece, of API’s issued and outstanding preferred stock.

As a dividend, the company will give its stockholders about one share of API common stock for each share of International Pharmaceuticals stock they own. All shareholders of record on the date the SEC approves API’s proposed registration--expected to be May 1--are eligible for the distribution.

Dr. Lionel N. Simon, International Pharmaceuticals’ president and co-founder, said the company opted for the distribution to “clearly delineate the business of the two entities,” adding that the parent company’s operations had become too diverse.

International Pharmaceuticals created API, incorporated last month, to be the parent company of its ophthalmic division and its drug-manufacturing subsidiary in Los Angeles.

The company also announced that it has begun human tests of a drug used during surgical cataract removal after obtaining Food and Drug Administration approval in December.