AMITYVILLE, N.Y., Mar 02, 2010 (BUSINESS WIRE) -- Hi-Tech Pharmacal Co., Inc. announced today the signing of a definitive agreement under which Hi-Tech acquired the Mag-Ox(R) line of Magnesium Nutritional supplements from Blaine Company, Inc., a privately held company for $4.1 million in an all-cash transaction. Under the terms of the acquisition Hi-Tech receives rights to Mag-Ox(R), Maginex(R), Uro-Mag(R) and Corban(TM). The products had net sales of approximately $3.4 million in calendar 2009. The brands will be sold through the Company's Health Care Products OTC division.
Mag-Ox(R) is a leading magnesium supplement brand that is recommended by doctors and pharmacists for their patients with cardiovascular, diabetes and metabolic syndrome conditions. The brand is poised for growth as the number of patients with these serious conditions continues to increase.
"The acquisition of these magnesium brands is a good strategic fit for Health Care Products' diabetic line since magnesium is a common nutritional deficiency among people with diabetes as well as those with metabolic syndrome, high blood pressure and cardiovascular conditions", said David Seltzer, President and CEO of Hi-Tech Pharmacal. "We believe that this acquisition will be earnings accretive and cash flow positive in the near term, and contribute to the Company's long term growth," he added.
Hi-Tech is a specialty pharmaceutical company developing, manufacturing and marketing generic and branded prescription and OTC products for the general healthcare industry. The Company specializes in difficult to manufacture liquid and semi-solid dosage forms and produces a range of sterile ophthalmic, otic and inhalation products. The Company's Health Care Products Division is a leading developer and marketer of branded prescription and OTC products for the diabetes marketplace. Hi-Tech's ECR Pharmaceuticals division markets branded prescription products.
Forward-looking statements (statements which are not historical facts) in this Press Release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not promises or guarantees and investors are cautioned that all forward-looking statements involve risks and uncertainties, including but not limited to the impact of competitive products and pricing, product demand and market acceptance, new product development, the regulatory environment, including without limitation, reliance on key strategic alliances, availability of raw materials, fluctuations in operating results and other results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. These statements are based on management's current expectations and are naturally subject to uncertainty and changes in circumstances. We caution you not to place undue reliance upon any such forward looking statements which speak only as of the date made. Hi-Tech is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.