ANDRX'S BRAND PHARMACEUTICAL OPERATIONS TO BE DIVESTED

Andrx is pursuing a corporate realignment that will involve the divestiture of its brand pharmaceutical operations, the company announced.

The Fort Lauderdale, Fla.-based firm's brand unit has been hemorrhaging money in recent years, including losses from operations of approximately $31 million during the first nine months of 2004. Rather than continue in the brand business, Andrx said it intends to focus on its more-profitable generic products and on developing and distributing formulations of controlled-release drugs.

"Our board and management have been evaluating our overall strategy, and have concluded that Andrx should focus on our core competencies of controlled-release pharmaceuticals and distribution, as well as initiatives, such as our agreement with Takeda, that will cause our controlled-release technologies to be employed in the development of new brand products for third parties," Andrx CEO Thomas Rice said in a statement.

Andrx signed an agreement with Takeda in January 2004 to develop and market a combination product consisting of Takeda's Actos (pioglitazoneb HCL) and Andrx's Fortamet (metformin HCL) extended-release tablets, each of which is administered once-a-day for the treatment of Type 2 diabetes.

Andrx said it has retained Banc of America Securities to solicit offers for its brand business. The company's primary brand products are Altroprev (lovastatin) extended-release tablets, Entex LA (phenylephrine HCL/guaifenesin), Entex PSE (pseudoephedrine hydrochloride/guaifenesin) and Fortamet.