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Abraxis Bioscience To Spin Off Abraxis Health In 2010

January 29th, 2010 by john | Filed under Uncategorized.

In a terse stock spin-off announcement on January 28, 2010, Abraxis Bioscience (ABII) said that it would be spinning off Abraxis Health some time this year.  It was one of those statements that say everything and nothing, and leave you wondering what’s really going on.  Sort of like saying that the CFO is departing to “spend more time with his family”.

Here’s what they said:

“By spinning off Abraxis Health as an independent, stand-alone company, we believe we will enhance the intrinsic value of both companies by allowing each company to pursue its differing drug development and commercialization strategies,” said Patrick Soon-Shiong, M.D., Executive Chairman of Abraxis BioScience. “We also believe the spin-off will facilitate each company pursuing the most attractive long-term growth opportunities and business strategies, thereby maximizing shareholder value.”

Maximizing shareholder value is always good and we know the part about the separate units being able to pursue their own strategies.  But, is it a good deal for shareholders of the parent, the spin-off stock, or perhaps both?  Unlike the CFO leaving for more time with his family, we will be finding out.  The mandatory information that the company will be filing with the SEC will see to that. -

Now we just have to wait for those SEC filings and set aside the time to read them.   Then we can decide for ourselves whether there is indeed shareholder value in this or not.

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2 Responses to “Abraxis Bioscience To Spin Off Abraxis Health In 2010”

  1. investor | 30/01/10

    I have read many of the recent press releases and no one has mentioned that the spin has been scheduled and delayed for over a year. There was a team recently selected to support a Q1 2010 spin and they were all let go on Wednesday the 28th. So much for Patrick’s humanitarian work. He provided very very little servance for people who had left secure jobs only 2-6 months prior. I am looking forward to the details to support the 2010 spin without a team intact.

  2. john | 28/02/10

    Any news that seems to be fitting the situation better since your last post? Or, are these people just putting out teasers without the intention of really going forward?

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