Adams Laboratories Inc, which focuses on the treatment of respiratory disorders, on Friday said it may sell as much as $125 million in common stock in an initial public offering. The company currently markets two over-the-counter products under the Mucinex brand - expectorants that thin bronchial secretions. It said it expects to launch four more government-approved products over the next two years.
Mucinex competes with Pfizer's Sudafed, Procter & Gamble Co's Nyquil, Novartis AG's Theraflu and Schering-Plough Corp's Claritin, Adams Laboratories said.
The Chester, New Jersey-based company filed a preliminary prospectus with the US Securities and Exchange Commission for the proposed IPO.
Adams had net sales of $61.3 million with net income of $35.2 million in the year ended on June 30, according to the offering document. That compares with net sales of $14 million and net loss of $23.3 million in fiscal 2003.
Because the company does not have any manufacturing capability, it relies on Cardinal Health Inc to manufacture Mucinex as part if a 10-year agreement which began in April 2004.
Perseus-Soros BioPharmaceutical Fund, a partnership that includes George Soros, holds a 26.93-percent stake in Adams Laboratories, according to the US regulatory document.
The offering document did not provide details such as the amount of shares or the price per share, as it is customary to disclose those items in amended filings.
Merrill Lynch & Co and Morgan Stanley are the lead underwriters in the IPO, the document shows. Deutsche Bank Securities and RBC Capital Markets will assist.
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