Bio-Technology General Corp. signed a definitive agreement to acquire Rosemont Pharmaceuticals Ltd., a subsidiary of Akzo Nobel, for about £64 million, or US$99 million.

Rosemont was founded in 1967 and bought by Akzo Nobel in 1989. Sim Fass, CEO and chairman of Bio-Technology General, called the new acquisition a "highly profitable specialty pharmaceutical company." It develops, manufactures and markets prescription drugs in oral liquid form, mainly in the UK.

"The acquisition of Rosemont will immediately generate an incremental revenue stream in 2002 and will be accretive to our earnings in 2003," Fass said in a conference call. "The $99 million will be paid out of our available cash resources. Let me stress, no BTG stock is involved in this acquisition."

The deal is expected to close Sept. 30.

Rosemont had net revenues of £13.1 million in 2001. For the six months ended June 30, net revenue for Rosemont was £7.3 million. The company sells products that mainly serve the elderly. It will operate as a separate unit of Bio-Technology General and Fass said the Rosemont management team is "expected to remain essentially intact."

BTG had cash, cash equivalents and short-term investments of $119 million on June 30. It reported net income of $3 million, or 5 cents per share, on revenues of $46 million for the first half of the year.

"We are extremely excited about the acquisition and the important step it represents for our company," Fass said. "We have committed substantial cash resources precisely because we believe Rosemont to be a highly promising acquisition for our company. It will immediately strengthen our portfolio of commercial products and secure additional growth, earnings and shareholder value, while allowing us to continue to focus on the development of our proprietary drug candidates."

Iselin, N.J.-based Bio-Technology General markets, in collaboration with others, Oxandrin (oxandrolone), Delatestryl (testosterone enanthate), Mircette (oral contraceptive) and BioLon (sodium hyaluronate), just to name products sold in the U.S.

In February 2001, BTG bought Myelos Corp., a company that was focused on the isolation of stimulatory peptides. That deal was valued at about $35 million, with a potential $30 million milestone attached. Acquisitions have been a part of Bio-Technology General's game plan for years - it got Oxandrin through the acquisition of Gynex Pharmaceuticals Inc., of Vernon Hills, Ill., in 1993. Bio-Technology General paid $48 million for that company, and there may be others to come. (See BioWorld Today, Aug. 9, 1993, and Feb. 23, 2001.)

"Beyond the Rosemont acquisition, we continue to seek to enhance our U.S. and worldwide business through further acquisitions and alliances," Fass said.

Bio-Technology General's stock (NASDAQ:BTGCE) rose 2 cents Friday to close at $2.95.