IVAX Completes Acquisition of Leading Mexican Pharmaceutical Company

Business Wire, Feb 13, 2001

Business Editors/Health & Medical Writers

MIAMI--(BUSINESS WIRE)--Feb. 13, 2001

IVAX Corporation (AMEX:IVX) has completed the acquisition of Laboratorios Fustery, S.A. de C.V., headquartered in Mexico City, Mexico. Laboratorios Fustery manufactures, markets and distributes a broad range of prescription pharmaceutical products, and is a leading manufacturer of antibiotics and injectable products. In 2000 it had net revenues in excess of $90 million, with profits of more than $10 million. IVAX expects the transaction to be immediately accretive to IVAX' per share earnings.

"The completion of this transaction further establishes IVAX as a major participant in the Latin American pharmaceutical market and continues our strategic expansion into developing markets around the world," said Neil Flanzraich, vice chairman and president of IVAX. "Mexico has the second largest economy in Latin America and last year experienced the highest rate of economic growth in this region. The operations of Laboratorios Fustery will be integrated with our existing operations in Argentina, Peru, Uruguay and Venezuela. This network will facilitate the distribution in this rapidly growing region of IVAX' current and future proprietary and generic products. Generic drugs, such as those marketed by IVAX, that have been certified in the U.S. and Europe as bioequivalent to branded drugs are very much in demand in Latin America. IVAX also anticipates that its rapidly growing line of proprietary asthma products will do well in the Latin American market."

Established in 1937, Laboratorios Fustery has ISO 9002 certified manufacturing facilities located in Mexico City and Ramos Arizpe, near Monterrey, including a sterile manufacturing facility for injectable products. Prior to its acquisition by IVAX, Fustery was one of the largest locally-owned drug companies in Mexico. Fustery's products include a high-quality line of penicillins and cephalosporins as well as other major prescription drugs in both oral and injectable dosage forms. The company's therapeutic areas of primary emphasis are antibiotics, anti-inflammatories, analgesics, cardiovascular and gastrointestinal products. In support of its strategy of marketing higher-value proprietary drugs, Laboratorios Fustery employs 120 medical representatives whose objective is to promote Fustery's proprietary prescription products in the private segment of the Mexican market. The company also has a strong presence in the government sector. It will continue to operate under the leadership of an experienced management team led by Domingo R. Benavides.

IVAX Corporation, headquartered in Miami, Florida, is a holding company with subsidiaries engaged in the research, development, manufacturing, and marketing of branded and generic pharmaceuticals and veterinary and diagnostic products in the U.S. and international markets.

Except for the historical matters contained herein, statements in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements involve risks and uncertainties that may affect IVAX' business and prospects, including the risks that the earnings and profits of Laboratorios Fustery may not continue to grow or may decline and may not be accretive to IVAX' future per share earnings; that the FASB proposal to eliminate the amortization of goodwill in purchase transactions will not be adopted, or that its implementation will be delayed, and that the acquisition of Laboratorios Fustery will therefore be less accretive to IVAX than it will be if the rule is adopted as proposed; that the Mexican pharmaceutical market may not grow at the rate forecasted; that economic instability, political instability, and/or currency fluctuation, may reduce the profitability of the pharmaceutical markets in Mexico and other Latin American countries; that IVAX may not obtain approvals of pharmaceutical products in Mexico or that Laboratorios Fustery may not be able to successfully market IVAX products; that IVAX' proprietary asthma products may not do well in Latin America; and other risks and uncertainties that may cause results to differ materially from those set forth in the forward-looking statements. In addition to the risk factors set forth above, investors should consider the economic, competitive, governmental, technological and other factors discussed in the Company's Annual Report on form 10KA and other filings with the Securities and Exchange Commission.