Pharmaceutical Companies Nova, Scios to Merge
Scios Inc. and Nova Pharmaceutical Corp. said Wednesday that they have agreed to merge in a $180-million stock swap.
The merger will combine two complementary operations, providing near- and long-term opportunities, said Richard L. Casey, president and chief executive of Scios. The Mountain View-based company was called California Biotechnology Inc. until this March.
However, Wall Street did not react favorably to the merger of the two pharmaceutical companies, both of which lost money in the first quarter. In over-the-counter trading Wednesday, Scios was down $1.62 1/2 to $11.62 1/2, while Nova fell 62.5 cents to close at $4.50.
Casey will be president and chief executive of the merged company, which will be called Scios-Nova Inc. and will be based in Mountain View. It will maintain a research and development plant in Baltimore, the headquarters of Nova. Scios’ chairman, John W. Culligan, will head the board of the merged company.
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