Acquisition Could Increase ScripsAmerica’s Revenues by as Much as $6 Million Annually
ScripsAmerica Inc. (OTCBB:SCRC), a leading supplier of prescription, OTC and nutraceutical drugs, today announced that the Company has signed a Letter of Intent (LOI) to acquire Marlex Pharmaceuticals, Inc., a global pharmaceutical packaging company.
Management of ScripsAmerica believes the acquisition will have a significant positive impact on both companies and could add 10-15% to ScripsAmerica’s gross profit margin. More specifically, the Company forecasts that this move would significantly increase its revenues, order processing capability, and profitability in addition to providing more opportunities to secure government contracts due to Marlex’s current relationships.
Marlex Pharmaceuticals’ New Castle, DE facility is in compliance with the FDA, DEA, and the state board of pharmacy and contains 12,000 square feet of temperature-controlled space dedicated to pharmaceutical packaging, contract packaging and private labeling. ScripsAmerica, which has already received acceptance of its S-1 filing by the SEC and an independent 3rd party valuation of Marlex Pharmaceuticals, expects to raise the necessary funds to complete the acquisition through a private placement of its equity and/or debt securities.
“The acquisition of Marlex Pharmaceuticals will position ScripsAmerica to increase its annual revenues by up to $6 million and operating income by up to 10 to 15 percent. This scope of growth would significantly increase shareholder value and mark the Company’s first major step toward becoming a complete provider of OTC and nutraceutical drugs, which includes the distribution and packaging of current product lines as well as the acquisition of new brands,” commented ScripsAmerica’s CEO, Bob Schneiderman.
“ScripsAmerica will not only dramatically increase its processing capacity as a result of this move, but will also add the guidance and expertise of Marlex’s seasoned professionals in pharmaceutical packaging to our management team. We are very confident that the Company will raise the capital necessary to finalize this acquisition and expect it to contribute to our bottom line by the first quarter of 2013. Following the acquisition of Marlex, we will continue to seek strategic acquisition partners in the prescription, generic drug and OTC markets, which can exponentially fuel our growth,” added Mr. Schneiderman.