American IVAX walks away from Israeli pharmaceutical and cosmetics deal

- Last updated on GMT

American multinational IVAX Corporation has pulled out of talks
with Israeli pharmaceutical company Agis, which produces cosmetics,
toiletries and cleaning products through its subsidiary Careline.

IVAX​ is engaged in the research, development, manufacturing and marketing of branded and generic pharmaceuticals and veterinary products in the US and internationally.

Agis​ has four fields of operation: development and production of generic treatment for skin diseases, heart problems and allergies, conducted by its subsidiary Clay Park; developing and manufacturing active pharmaceutical ingredients used worldwide by the generic drug industry, via its fully-owned subsidiary Chemagis; importing and marketing of pharmaceutical products in Israel; and cosmetics, toiletries and cleaning products, through its Careline subsidiary.

The company produces liquid and bar soaps, shampoos and conditioners under the Neca brand name, and hair care, deodorants, skin and body care products under its Natural formula brand.

According to analysts, Agis needs to merge because of its relative weakness in its marketing. Joining forces with a major international generic company would supply Agis' products with the marketing tools it requires in a fiercely competitive and universal market.

Shares in Agis Industries fell 5.8 per cent Thursday to NIS 131 after IVAX Corp. said it would not buy the Bnei Brak-based generic pharmaceutical maker. Expectations that the company would finally be sold, after months of waiting, were brought to a close with the announcement.

"We did engage in negotiations with Agis, but these now have ended,"​ Ivax chief executive officer and chairman Phillip Frost said.

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