`
`
`
`
`
`
`
`
`#
`
`ENCYCLopedia*com
`
`Noven Pharmaceuticals, Inc. - Dictionary definition of Noven Pharmaceuticals, Inc. | Encyclopedia.com: FREE online dictionary
`
`Noven Pharmaceuticals, Inc.
`
`International Directory of Company Histories
`COPYRIGHT 2006 Thomson Gale
`
`Noven Pharmaceuticals, Inc.
`
`11960 Southwest 144 Street
`Miami (/Dlaces/united-states-and-canada/us-Dolitical-geograDhv/nnianni). Florida (/Dlaces/united-states-and-canada/us-
`political-geographv/florida) 33186
`U.SA
`Telephone: (305) 253-5099
`Fax: (305) 251-1887
`Web site: http://www.noven.com (http://www.noven.com)
`
`+,-./01234536.78963:;<0=/6>
`?@ABC@DAEF@DGHIECBJAFCKHFLHMFNOD@KHPEQAFCEBQHH
`MRSTU?VPWHXYYZHW[FNQF@HVDGB
`\]^_`abcdefdg_hijgdklman`go
`ppqrsat]hicu_liapvvatie__ia
`wjdfjaxyzkdg_lyh`ji_{|lidi_l|d`{|gd`d{dyhl|z]kjijgdk|}_]}edzc~yfjdfjmak]ej{daxyzkdg_lyh`ji_{|lidi_l|d`{|gd`d{dyhl|
`z]kjijgdk|}_]}edzc~y]ej{dapra
`oto oa_k_zc]`_axsa|sqqa
`daxsap|pa
`_alji_aciizyyuuuo`]^_`og]faxciizyyuuuo`]^_`og]f
`
` ¡H¢£¤¥H
`¦§¡HX¨XH
`©§¡Hª¨¨«¬HNEGGEF@HXYYX®H
`©¯¦°±²§¡H³´µI´¶H
`·¯©¡H³R¸³H
`¹º¡H»X¨¬¢YHS[DCNDJB¼AEJDGHD@½H¾B½EJE@BH¾D@¼LDJA¼CE@¿
`À_g]ff_`{_{aÁ]ea~]h
`Â2.6ÃÄ,,Ã;0Å0Æ4Ç.40È,740Â2.6ÃÄ,,Ã;0+,É>
`Êe{_eaË]heaÌc_gÍ]]Íla\]uoatd^_aujicaÌc_gÍlaj`aic_awdjkÎÏ
`Ìc_gÍln`c_wdjkog]fÐÑÐtz]`l]e_{
`xciizlyysoeodioj`}og]fyÒk{Ó{fÔ ~|
`Õn`Ö××gcØÙvjÙÕÌu d]l^^×gÔÚÛ^ej}]ÜtÝ\_vÛrÜËt ËÊÌbuigÖwi^wÞlÛt}zcÝÔÌq`uÞËsÖ{}ËÔÚÞ\hue}dsËhØjÛ]b`hgÁpge
`ÍhtÌl]}ÛguÊlÞàhÓl_ghe_ogc_gÍlj`ic_fdjkog]fáâ`{_odlzáÁÌwbá{ÌnwÛbbÌ|Û|Ün\Ô|Û|Üe]d{|Û|gc_gÍ]]Íás]e{_e
`³FãB@HS[DCNDJB¼AEJDGQäH?@J«HEQHDH¾EDNEåæDQB½HJFNOD@KH½BãFAB½HAFHA[BH½BãBGFONB@AHFLHACD@Q½BCNDGH½C¼¿H½BGEãBCKHOCF½¼JAQ«
`W[BHJFNOD@KH¼QBQHDHQNDGGHD½[BQEãBHODAJ[HçFC@HF@HDHODAEB@AèQHQéE@HAFHOCFãE½BHJF@ACFGGB½H½BGEãBCKHFLHDH½C¼¿HLFCHDH½Bê@B½HOBCEF½
`FLHAENBäHA[BCBæKHENOCFãE@¿HODAEB@AHJFNOGED@JB«HMF@JB@ACDAE@¿HF@HA[BH½BGEãBCKHFLHBëEQAE@¿H½C¼¿QäH³FãB@H[DQHæBB@HDæGBHAFHLFJ¼Q
`EAQHCBQBDCJ[HD@½H½BãBGFONB@AHBLLFCAQHF@HENOCFãE@¿HACD@Q½BCNDGHABJ[@FGF¿KäHNDéE@¿H³FãB@HD@HE@½¼QACKHGBD½BCHD@½HCBQ¼GAE@¿HE@
`A[BH½BãBGFONB@AHFLHN¼J[HQNDGGBCHODAJ[BQHA[DAHE@HD½½EAEF@HAFHENOCFãE@¿HODAEB@AHJFNLFCAHDGGFçHLFCHODAJ[HãBCQEF@QHFLH½C¼¿QHA[DA
`çF¼G½H[DãBHOCBãEF¼QGKHæBB@HAFFHGDC¿BHAFHçBDC«H³FãB@èQHD½ãD@JB½HABJ[@FGF¿KHDGQFHDGGFçQHAçFH½C¼¿QHAFHæBH½BGEãBCB½HF@HF@BHQNDGG
`ODAJ[äHQ¼J[HDQHEAQHMFNæESDAJ[HOCF½¼JAHA[DAHFLLBCQHæFA[HBQACF¿B@HD@½HOCF¿BQAE@HAFHNB@FOD¼QDGHD@½HOFQAåNB@FOD¼QDGHçFNB@HE@
`A[BHì@EAB½HµADABQHíOGDJBQí¼@EAB½åQADABQåD@½åJD@D½Dí¼QåOFGEAEJDGå¿BF¿CDO[Kí¼@EAB½åQADABQ®«HRA[BCH³FãB@HOCF½¼JAQäHQFG½
`A[CF¼¿[HEAQHGEJB@QBBQäHE@JG¼½BHîQADGEQäHA[BHî¼CFOBD@HãBCQEF@HFLHMFNæESDAJ[ïH¸EãBGGBäHD@HBQACF¿B@HODAJ[HLFCHA[BH쫵«HNDCéBAï
`ðñòóôõöõ÷øùúûúüõýþ
`"# &&&
`"
` '( "'
`)*
`
`"
`
`
`
`Noven Pharmaceuticals, Inc. is a Miami-based company devoted to the development of transdermal drug delivery products.
`The company uses a small adhesive patch worn on a patient's skin to provide control led deliveryof a drug for a defined period
`of time, thereby improving patient compliance. Concentratingon the delivery of existing drugs, Noven has been able to focus
`its research and development efforts on improving transdermal technology, making Noven an industry leader and resulting in
`the development of much smaller patches that in addition to improving patient comfort allow for patch versions of drugs that
`would have previously been too large to wear. Noven's advanced technology also allows two drugs to be delivered on one small
`patch, such as its CombiPatch product that offers both estrogen and progestin to menopausal and post-menopausal women in
`the United States (/places/united-states-and-canada/us-political-ReoRraphv/united-states). Other Noven products, sold
`through its licensees, include Estalis, the European version of CombiPatch; Vivelle, an estrogen patch for the U.S. market;
`
`Public Company
`
`Incorporated: 1987
`
`Employees: 252
`Sales; $55.4 million (2002)
`Stock Exchanges: NASDAQ
`Ticker Symbol: NOVN
`NA/C; 325410 Pharmaceutical and Medicine Manufacturing
`
`_ jv I j
`
`Recommended for vou:
`Checkbooks - Order Your Checkbooks Now.
`Order Your Checkbooks Now. Save with Checks in the Mail ™ I
`CheckslnTheMall.com I Sponsored
`(httPs://0.r.bat.bing.com/?ld=d3mGATv-
`VTInJaachEzFb4izVUCUwAaoswacGi vrigoBSHN3xxe42 6BYSAYOWCPw5tcJMt2v88MLs 8SgDhH2GC9nwLY0JdgYGixLNu2bw5rga0YuEib oPnucTf21cr
`kuSCsoWgW cFwbOFWsL&u=secure.checksinthemail.com%2findex.asDx%3fCMP%3dCITM PPC- -BING- -Broad- -checkbook%2520orderl
`
`http://www.encyclopedia.com/books/politics-and-business-magazines/noven-pharmaceuticals-inc
`
`MYLAN - EXHIBIT 1023
`1/6
`
`
`
`6/29/2017
`
`Noven Pharmaceuticals, Inc. - Dictionary definition of Noven Pharmaceuticals, Inc. | Encyclopedia.com: FREE online dictionary
`
`Menorest. an estrogen patch fc the European mark Vivelle-Dot, the U f-. version of a later generation estrogen petch, the
`world's smallest; and Estradot, the European version of Vivelle-Dot. In addition, Noven directly markets DentiPatch, a product
`used by dentists as a preliminary anesthetic.
`
`Development of Transdermal Technology: 1980s
`
`From the beginning researchers faced three problems in developing a skin patch appropriate for the delivery of drugs:
`comfortable size, proper adhesion, and possible skin irritation. The first transdermals, produced in the 1980s, relied on a
`reservoir system that contained the drug in an alcohol solution. Although these patches effectively delivered a proper dosage
`of a prescribed drug, the alcohol caused skin irritation. The next generation of transdermals opted to solubilize the drag in an
`acrylic adhesive, resolving the problem of skin irritation, but leading to other complications. To make a patch small required
`more drags and less adhesive, resulting in a product that did not stick very well to the skin. To maintain adhesion and still keep
`the patch to a reasonable size, researchers turned to a skin permeation enhancer, which once again resulted in problems with
`skin irritation. Despite the difficulties in working with transdermals, the technology offered great promise. One of the early
`researchers was Noven'scofounder, Steven Sablotsky, a University of Florida graduate with a degree in chemical engineering.
`While working with start-up Key Pharmaceuticals, he served as director of product and process development and was
`instrumental in the creation of a nitroglycerin transdermal patch, the Nitro-Dur II. As the result of its success with the product,
`Key was acquired by Schering-Plough in 1986. Noven's other cofounder was Sablotsky's cousin, Mitchell Goldberg, a New
`York City securities dealer. The two had grown up together, drifted apart because of their careers, but became reacquainted in
`1986 when Sablotsky attended Goldberg's wedding. During this exciting period for Key, Sablotsky and Goldberg began to
`discuss the possibility of starting their own company to take advantage of the Nitro-Dur II by offering a second generation
`transdermal estrogen delivery product that relied on the adhesive method rather than a reservoir system. They founded their
`company in January 1987 and incorporated it in December 1987, with Sablotsky serving as president and chairman of the
`board and Goldberg as executive vice-president and director. Goldberg was responsible for business development, licensing,
`and corporate communications. The company name was a combination of letters from the first names of Steven Sablotsky and
`his wife, Noreen. Together the parties raised $250,000 in seed money from family and friends. Initially the company was little
`more than Sablotsky working at the kitchen table in his East Kendall, Florida, home, but as the business began to take shape,
`Noven leased 20,000 square feet of space near the local Tamiami Airport.
`
`
`
`
`
`
`
`#
`
`
`¾B@FCBQAäHD@HBQACF¿B@HODAJ[HLFCHA[BHî¼CFOBD@HNDCéBAïH¸EãBGGBåIFAäHA[BH쫵«HãBCQEF@HFLHDHGDABCH¿B@BCDAEF@HBQACF¿B@HODAJ[äHA[B
`çFCG½èQHQNDGGBQAïHD@½HîQACD½FAäHA[BHî¼CFOBD@HãBCQEF@HFLH¸EãBGGBåIFA«H?@HD½½EAEF@äH³FãB@H½ECBJAGKHNDCéBAQHIB@AESDAJ[äHDHOCF½¼JA
`¼QB½HæKH½B@AEQAQHDQHDHOCBGENE@DCKHD@BQA[BAEJ«
`_^_k]zf_`ia]Áaed`l{_efdka_gc`]k]}~apqsl
` CFNHA[BHæB¿E@@E@¿HCBQBDCJ[BCQHLDJB½HA[CBBHOCFæGBNQHE@H½BãBGFOE@¿HDHQéE@HODAJ[HDOOCFOCEDABHLFCHA[BH½BGEãBCKHFLH½C¼¿Q
`JFNLFCADæGBHQEBäHOCFOBCHD½[BQEF@äHD@½HOFQQEæGBHQéE@HECCEADAEF@«HW[BHêCQAHACD@Q½BCNDGQäHOCF½¼JB½HE@HA[BH¢£¤YQäHCBGEB½HF@HD
`CBQBCãFECHQKQABNHA[DAHJF@ADE@B½HA[BH½C¼¿HE@HD@HDGJF[FGHQFG¼AEF@«H´GA[F¼¿[HA[BQBHODAJ[BQHBLLBJAEãBGKH½BGEãBCB½HDHOCFOBCH½FQD¿B
`FLHDHOCBQJCEæB½H½C¼¿äHA[BHDGJF[FGHJD¼QB½HQéE@HECCEADAEF@«HW[BH@BëAH¿B@BCDAEF@HFLHACD@Q½BCNDGQHFOAB½HAFHQFG¼æEGEBHA[BH½CD¿HE@HD@
`DJCKGEJHD½[BQEãBäHCBQFGãE@¿HA[BHOCFæGBNHFLHQéE@HECCEADAEF@äHæ¼AHGBD½E@¿HAFHFA[BCHJFNOGEJDAEF@Q«HWFHNDéBHDHODAJ[HQNDGGHCB¼ECB½
`NFCBH½CD¿QHD@½HGBQQHD½[BQEãBäHCBQ¼GAE@¿HE@HDHOCF½¼JAHA[DAH½E½H@FAHQAEJéHãBCKHçBGGHAFHA[BHQéE@«HWFHNDE@ADE@HD½[BQEF@HD@½HQAEGGHéBBO
`A[BHODAJ[HAFHDHCBDQF@DæGBHQEBäHCBQBDCJ[BCQHA¼C@B½HAFHDHQéE@HOBCNBDAEF@HB@[D@JBCäHç[EJ[HF@JBHD¿DE@HCBQ¼GAB½HE@HOCFæGBNQHçEA[
`QéE@HECCEADAEF@«HIBQOEABHA[BH½ELêJ¼GAEBQHE@HçFCéE@¿HçEA[HACD@Q½BCNDGQäHA[BHABJ[@FGF¿KHFLLBCB½H¿CBDAHOCFNEQB«HR@BHFLHA[BHBDCGK
`CBQBDCJ[BCQHçDQH³FãB@èQHJFLF¼@½BCäHµABãB@HµDæGFAQéKäHDHì@EãBCQEAKHFLH GFCE½DH¿CD½¼DABHçEA[HDH½B¿CBBHE@HJ[BNEJDGHB@¿E@BBCE@¿«
`[EGBHçFCéE@¿HçEA[HQADCAå¼OHBKHS[DCNDJB¼AEJDGQäH[BHQBCãB½HDQH½ECBJAFCHFLHOCF½¼JAHD@½HOCFJBQQH½BãBGFONB@AHD@½HçDQ
`E@QAC¼NB@ADGHE@HA[BHJCBDAEF@HFLHDH@EACF¿GKJBCE@HACD@Q½BCNDGHODAJ[äHA[BH³EACFåI¼CH??«H´QHA[BHCBQ¼GAHFLHEAQHQ¼JJBQQHçEA[HA[BHOCF½¼JAä
`BKHçDQHDJ¼ECB½HæKHµJ[BCE@¿åSGF¼¿[HE@H¢£¤Z«H³FãB@èQHFA[BCHJFLF¼@½BCHçDQHµDæGFAQéKèQHJF¼QE@äH¾EAJ[BGGHVFG½æBC¿äHDH³Bç
`TFCéHMEAKHQBJ¼CEAEBQH½BDGBC«HW[BHAçFH[D½H¿CFç@H¼OHAF¿BA[BCäH½CELAB½HDODCAHæBJD¼QBHFLHA[BECHJDCBBCQäHæ¼AHæBJDNBHCBDJ¼DE@AB½HE@
`¢£¤ZHç[B@HµDæGFAQéKHDAAB@½B½HVFG½æBC¿èQHçB½½E@¿«HI¼CE@¿HA[EQHBëJEAE@¿HOBCEF½HLFCHBKäHµDæGFAQéKHD@½HVFG½æBC¿HæB¿D@HAF
`½EQJ¼QQHA[BHOFQQEæEGEAKHFLHQADCAE@¿HA[BECHFç@HJFNOD@KHAFHADéBHD½ãD@AD¿BHFLHA[BH³EACFåI¼CH??HæKHFLLBCE@¿HDHQBJF@½H¿B@BCDAEF@
`ACD@Q½BCNDGHBQACF¿B@H½BGEãBCKHOCF½¼JAHA[DAHCBGEB½HF@HA[BHD½[BQEãBHNBA[F½HCDA[BCHA[D@HDHCBQBCãFECHQKQABN«HW[BKHLF¼@½B½HA[BEC
`JFNOD@KHE@H D@¼DCKH¢£¤¥HD@½HE@JFCOFCDAB½HEAHE@HIBJBNæBCH¢£¤¥äHçEA[HµDæGFAQéKHQBCãE@¿HDQHOCBQE½B@AHD@½HJ[DECND@HFLHA[B
`æFDC½HD@½HVFG½æBC¿HDQHBëBJ¼AEãBHãEJBåOCBQE½B@AHD@½H½ECBJAFC«HVFG½æBC¿HçDQHCBQOF@QEæGBHLFCHæ¼QE@BQQH½BãBGFONB@AäHGEJB@QE@¿ä
`D@½HJFCOFCDABHJFNN¼@EJDAEF@Q«HW[BHJFNOD@KH@DNBHçDQHDHJFNæE@DAEF@HFLHGBAABCQHLCFNHA[BHêCQAH@DNBQHFLHµABãB@HµDæGFAQéKHD@½
`[EQHçELBäH³FCBB@«HWF¿BA[BCHA[BHODCAEBQHCDEQB½HªX¨YäYYYHE@HQBB½HNF@BKHLCFNHLDNEGKHD@½HLCEB@½Q«H?@EAEDGGKHA[BHJFNOD@KHçDQHGEAAGB
`NFCBHA[D@HµDæGFAQéKHçFCéE@¿HDAHA[BHéEAJ[B@HADæGBHE@H[EQHîDQAHB@½DGGäH GFCE½DäH[FNBäHæ¼AHDQHA[BHæ¼QE@BQQHæB¿D@HAFHADéBHQ[DOBä
`³FãB@HGBDQB½HXYäYYYHQ¼DCBHLBBAHFLHQODJBH@BDCHA[BHGFJDGHWDNEDNEH´ECOFCA«
`Ô]j`}abhkjgapq
`ROBCDAE@¿HçEA[HGENEAB½HL¼@½QäHµDæGFAQéKHD@½HVFG½æBC¿HGFFéB½HAFHCDEQBHª¢HNEGGEF@HAFHL¼@½H³FãB@èQHCBQBDCJ[HD@½H½BãBGFONB@AHFL
`ACD@Q½BCNDGäHDQHçBGGHDQHACD@QN¼JFQDGäH½C¼¿H½BGEãBCKHQKQABNQ«HW[BKH½BJE½B½HAFHADéBHA[BHJFNOD@KHO¼æGEJäHQJ[B½¼GE@¿HA[BHFLLBCE@¿
`LFCHRJAFæBCH¢£¤¥«H³FãB@èQHE@ãBQANB@AHæD@éBCHD½ãEQB½HA[BHODCA@BCQHAFH[FG½HFLLHD@½HAFHADéBHDHçDEAåD@½åQBBHDAAEA¼½B«HW[B@HA[B
`QAFJéHNDCéBAHJCDQ[B½«H´JJFC½E@¿HAFHµDæGFAQéKäH[EQHæD@éBCHAFG½H[ENäH
`µABãBäHKF¼èCBHF@HKF¼CHFç@«H?H[FOBHKF¼H½E½@èAHæ¼C@HD@K
`æCE½¿BQ«HW[BHFLLBCE@¿HçDQHOFQAOF@B½äH@FAHADéE@¿HOGDJBH¼@AEGHQEëHNF@A[QHGDABC«HEA[HQFHLBçHJFNOD@EBQH@FçHFOAE@¿HAFH¿FHO¼æGEJä
`³FãB@HçDQHDæGBHAFH¿DE@HQçELAHDOOCFãDGHLCFNHA[BHµBJ¼CEAEBQHD@½HîëJ[D@¿BHMFNNEQQEF@«HW[BHJFNOD@KèQHCBQBDCJ[HD@½
`½BãBGFONB@AHO[DQBHGDQAB½H¼@AEGH¢££¬äHA[BHE@EAEDGHLFJ¼QHF@HACD@Q½BCNDGHODAJ[BQHAFH½BGEãBCHBQACF¿B@HAFHNB@FOD¼QDGHD@½
`OFQANB@FOD¼QDGHçFNB@äHDHOFAB@AEDGGKHNDQQEãBHNDCéBAHDQHçFNB@HFLHA[BHæDæKHæFFNH¿B@BCDAEF@HæB¿D@HAFHB@ABCHNB@FOD¼QB«
`îQACF¿B@HCBOGDJBNB@AHFLLBCB½HDH@¼NæBCHFLHæB@BêAQHLFCHFG½BCHçFNB@HGFçBCE@¿HA[BHCEQéHFLH[BDCAHDAADJéäHOCBãB@AE@¿
`FQABFOFCFQEQäHD@½HGBQQB@E@¿HODGOEADAEF@QHD@½H
`[FAH
`QABD½EGKHFãBCHA[BHB@Q¼E@¿HKBDCQHD@½HACD@Q½BCNDGH½BGEãBCKHQKQABNQH[FOB½HAFHJF@ACFGHDHA[EC½HFLHA[DAHNDCéBA«H³FãB@HND½BH¼EJé
`QACE½BQHE@H½BãBGFOE@¿HD@HBQACF¿B@HODAJ[HD@½HDQHBDCGKHDQH¢£¤£HA[BHJFNOD@KHçDQHDæGBHAFHQE¿@HDHçFCG½çE½BHGEJB@QE@¿HD¿CBBNB@Aä
`çEA[HA[BHBëJBOAEF@HFLH DOD@HíOGDJBQíDQEDí DOD@BQBåOFGEAEJDGå¿BF¿CDO[Kí DOD@®äHLFCHEAQHACD@Q½BCNDGHBQACF¿B@H½BGEãBCKHQKQABN«H´
`"# &&&
`"
` '( "'
`)*
`
`"
`
`
`
`Going Public: 1987
`
`Operating with limited funds, Sablotsky and Goldberg looked to raise $1 million to fund Noven's research and development of
`transdermal, as well as transmucosal, drug delivery systems. They decided to take the company public, scheduling the offering
`for October 1987. Noven's investment banker advised the partners to hold off and to take a wait-and-see attitude. Then the
`stock market crashed. According to Sablotsky, his banker told him, "Steve, you're on your own. I hope you didn't burn any
`bridges." The offering was postponed, not taking place until six months later. With so few companies now opting to go public,
`Noven was able to gain swift approval from the Securities and Exchange Commission. The company's research and
`development phase lasted until 1994, the initial focus on transdermal patches to deliver estrogen to menopausal and
`postmenopausal women, a potentially massive market as women of the baby boom generation began to enter menopause.
`Estrogen replacement offered a number of benefits for older women: lowering the risk of heart attack, preventing
`osteoporosis, and lessening palpitations and "hot flashes." As a result, estrogen replacement therapy was expected to grow
`steadily over the ensuing years and transdermal delivery systems hoped to control a third of that market. Noven made quick
`strides in developing an estrogen patch and as early as 1989 the company was able to sign a worldwide licensing agreement,
`with the exception of Japan (/Dlaces/asia/iaDanese-Dolitical-geographv/iaDan). for its transdermal estrogen delivery system. A
`
`http://www.encyclopedia.com/books/politics-and-business-magazines/noven-pharmaceuticals-inc
`
`2/6
`
`
`
`6/29/2017
`
`Noven Pharmaceuticals, Inc. - Dictionary definition of Noven Pharmaceuticals, Inc. | Encyclopedia.com: FREE online dictionary
`
`year later, Noven reacquired the rights to the United States and Canada (/places/united-states-and-canada/canadian-political-
`ReoRraphv/canada). During this initial stage, Noven posted revenues of $656,169 in 1989 and $1.1 million in 1990, with net
`losses of $87,904 and $186,863, respectively. In 1991 revenue dipped below $200,000 while losses topped $3 million. In
`need of a cash infusion, Noven attempted in September 1991 to sell itself for $47 million in stock to another south Florida
`pharmaceutical, Ivax Corporation. A month later, however, Ivax backed away from the deal due to the valuation of Noven's
`"goodwill," the difference between the company's tangible assets and its potential. To this point Noven had no products on the
`market and had yet to file its first application with the Food and Drug Administration, although it had at least two products for
`which it was preparing paperwork. According to the South Florida Business Journal, "under existing accounting principals and tax
`laws, Ivax would have been required to charge the 'goodwill' against revenue without having the benefits of corresponding tax
`deductions. Noven had so much 'goodwill' that Ivax could afford to buy the company using stock worth about $47 million then,
`but it could not risk the cost of paying taxes on the amortized 'goodwill' for 40 years in the future, as accounting rules
`required." As a result, Ivax reluctantly decided not to proceed with the acquisition.
`
`Noven was still an unprofitable business in June 1994, when it again tapped the equity market, raising $30.3 million by selling
`2.25 million shares of stock at $13.50 per share, an amount that was $2 less than what the company had hoped for. Much of
`the funds went to purchase necessary equipment for a new manufacturing, distribution, and research facility. By now Noven
`had a number of other transdermal products in the pipeline, including patches for hormone replacement, cardiovascular
`disease, antifungal therapy, dental pain management, and asthma. In 1993 the company generated $4 million in revenues,
`posting a net loss of $3.3 million, and a year later had sales of $6 million and a net loss of nearly $5 million. In the fall of 1994
`the company received FDA(/social-sciences-and-law/political-science-and-Rovernment/us-Rovernment/food-and-druR-
`administration) approval on its estrogen patch, and with the product finally able to enter the marketplace it appeared that
`Noven was on the verge of finally turning a profit, but a number of factors intervened to jeopardize the future of the company.
`In January 1995 another estrogen patch, produced by Berlex Laboratories, received FDA approval and it appeared that it
`would become available in the United States and Canada in the next three or four months.
`
`Company Perspectives:
`
`In the months after the failed merger with Ivax, Noven was able to secure much needed cash by signing licensing deals for its
`estrogen patch with two giant pharmaceuticals while retaining its freedom. Obtaining rights to the United States and Canada
`was Ciba-Geigy, which had been selling its own patch before concluding that Noven's product, named Vivellefor the North
`American market, was superior. Ciba decided to market Noven's patch as its own, acquiring warrants that would allow it to
`purchase a 7.6 percent stake in Noven. The French firm of Rhone-Poulenc Rorer (RPR) obtained rights to the rest of the world
`for the 10-day estrogen patch. To raise further cash, Noven held a secondary stock offering that netted $17.7 million. Because
`its licensees would require an overabundance of available product before marketing the estrogen patch, Noven had to expand
`its production capacity. Management considered moving the company to Pennsylvania (/places/united-states-and-canada/us-
`political-ReoRraphv/pennsvlvania). close to RPR's U.S. headquarters in Philadelphia, but officials in Dade County, Florida, were
`eager to keep Noven and offered a number of incentives to stay. Not only did Noven receive economic aid in labor recruitment
`and training, the county smoothed the way on zoning waivers and provided quick approval on water and sewage permits. As a
`consequence, Noven was able to purchase and lease a total of 100,000 square feet in three buildings located on 15 acres of
`land in South Dade County.
`
`
`
`
`
`
`
`#
`
`
`KBDCHGDABCäH³FãB@HCBDJ¼ECB½HA[BHCE¿[AQHAFHA[BHì@EAB½HµADABQHD@½HMD@D½DHíOGDJBQí¼@EAB½åQADABQåD@½åJD@D½DíJD@D½ED@åOFGEAEJDGå
`¿BF¿CDO[KíJD@D½D®«HI¼CE@¿HA[EQHE@EAEDGHQAD¿BäH³FãB@HOFQAB½HCBãB@¼BQHFLHªZ¨Zä¢Z£HE@H¢£¤£HD@½Hª¢«¢HNEGGEF@HE@H¢££YäHçEA[H@BA
`GFQQBQHFLHª¤¥ä£Y¬HD@½Hª¢¤Zä¤Z»äHCBQOBJAEãBGK«H?@H¢££¢HCBãB@¼BH½EOOB½HæBGFçHªXYYäYYYHç[EGBHGFQQBQHAFOOB½Hª»HNEGGEF@«H?@
`@BB½HFLHDHJDQ[HE@L¼QEF@äH³FãB@HDAABNOAB½HE@HµBOABNæBCH¢££¢HAFHQBGGHEAQBGLHLFCHª¬¥HNEGGEF@HE@HQAFJéHAFHD@FA[BCHQF¼A[H GFCE½D
`O[DCNDJB¼AEJDGäH?ãDëHMFCOFCDAEF@«H´HNF@A[HGDABCäH[FçBãBCäH?ãDëHæDJéB½HDçDKHLCFNHA[BH½BDGH½¼BHAFHA[BHãDG¼DAEF@HFLH³FãB@èQ
`
`¿FF½çEGGäHA[BH½ELLBCB@JBHæBAçBB@HA[BHJFNOD@KèQHAD@¿EæGBHDQQBAQHD@½HEAQHOFAB@AEDG«HWFHA[EQHOFE@AH³FãB@H[D½H@FHOCF½¼JAQHF@HA[B
`NDCéBAHD@½H[D½HKBAHAFHêGBHEAQHêCQAHDOOGEJDAEF@HçEA[HA[BH FF½HD@½HIC¼¿H´½NE@EQACDAEF@äHDGA[F¼¿[HEAH[D½HDAHGBDQAHAçFHOCF½¼JAQHLFC
`ç[EJ[HEAHçDQHOCBODCE@¿HODOBCçFCé«H´JJFC½E@¿HAFHA[BH©± §§§H
`¼@½BCHBëEQAE@¿HDJJF¼@AE@¿HOCE@JEODGQHD@½HADë
`GDçQäH?ãDëHçF¼G½H[DãBHæBB@HCB¼ECB½HAFHJ[DC¿BHA[BH¿FF½çEGGèHD¿DE@QAHCBãB@¼BHçEA[F¼AH[DãE@¿HA[BHæB@BêAQHFLHJFCCBQOF@½E@¿HADë
`½B½¼JAEF@Q«H³FãB@H[D½HQFHN¼J[H¿FF½çEGGèHA[DAH?ãDëHJF¼G½HDLLFC½HAFHæ¼KHA[BHJFNOD@KH¼QE@¿HQAFJéHçFCA[HDæF¼AHª¬¥HNEGGEF@HA[B@ä
`æ¼AHEAHJF¼G½H@FAHCEQéHA[BHJFQAHFLHODKE@¿HADëBQHF@HA[BHDNFCAEB½H¿FF½çEGGèHLFCH¬YHKBDCQHE@HA[BHL¼A¼CBäHDQHDJJF¼@AE@¿HC¼GBQ
`CB¼ECB½«H´QHDHCBQ¼GAäH?ãDëHCBG¼JAD@AGKH½BJE½B½H@FAHAFHOCFJBB½HçEA[HA[BHDJ¼EQEAEF@«
`?@HA[BHNF@A[QHDLABCHA[BHLDEGB½HNBC¿BCHçEA[H?ãDëäH³FãB@HçDQHDæGBHAFHQBJ¼CBHN¼J[H@BB½B½HJDQ[HæKHQE¿@E@¿HGEJB@QE@¿H½BDGQHLFCHEAQ
`BQACF¿B@HODAJ[HçEA[HAçFH¿ED@AHO[DCNDJB¼AEJDGQHç[EGBHCBADE@E@¿HEAQHLCBB½FN«HRæADE@E@¿HCE¿[AQHAFHA[BHì@EAB½HµADABQHD@½HMD@D½D
`çDQHMEæDåVBE¿KäHç[EJ[H[D½HæBB@HQBGGE@¿HEAQHFç@HODAJ[HæBLFCBHJF@JG¼½E@¿HA[DAH³FãB@èQHOCF½¼JAäH@DNB½H¸EãBGGBHLFCHA[BH³FCA[
`´NBCEJD@HNDCéBAäHçDQHQ¼OBCEFC«HMEæDH½BJE½B½HAFHNDCéBAH³FãB@èQHODAJ[HDQHEAQHFç@äHDJ¼ECE@¿HçDCCD@AQHA[DAHçF¼G½HDGGFçHEAHAF
`O¼CJ[DQBHDH¥«ZHOBCJB@AHQADéBHE@H³FãB@«HW[BH CB@J[HêCNHFLHU[F@BåSF¼GB@JHUFCBCHUSU®HFæADE@B½HCE¿[AQHAFHA[BHCBQAHFLHA[BHçFCG½
`LFCHA[BH¢Yå½DKHBQACF¿B@HODAJ[«HWFHCDEQBHL¼CA[BCHJDQ[äH³FãB@H[BG½HDHQBJF@½DCKHQAFJéHFLLBCE@¿HA[DAH@BAAB½Hª¢¥«¥HNEGGEF@«HBJD¼QB
`EAQHGEJB@QBBQHçF¼G½HCB¼ECBHD@HFãBCDæ¼@½D@JBHFLHDãDEGDæGBHOCF½¼JAHæBLFCBHNDCéBAE@¿HA[BHBQACF¿B@HODAJ[äH³FãB@H[D½HAFHBëOD@½
`EAQHOCF½¼JAEF@HJDODJEAK«H¾D@D¿BNB@AHJF@QE½BCB½HNFãE@¿HA[BHJFNOD@KHAFHSB@@QKGãD@EDHíOGDJBQí¼@EAB½åQADABQåD@½åJD@D½Dí¼Qå
`OFGEAEJDGå¿BF¿CDO[KíOB@@QKGãD@ED®äHJGFQBHAFHUSUèQH쫵«H[BD½¼DCABCQHE@HS[EGD½BGO[EDäHæ¼AHFLêJEDGQHE@HID½BHMF¼@AKäH GFCE½DäHçBCB
`BD¿BCHAFHéBBOH³FãB@HD@½HFLLBCB½HDH@¼NæBCHFLHE@JB@AEãBQHAFHQADK«H³FAHF@GKH½E½H³FãB@HCBJBEãBHBJF@FNEJHDE½HE@HGDæFCHCBJC¼EANB@A
`D@½HACDE@E@¿äHA[BHJF¼@AKHQNFFA[B½HA[BHçDKHF@HF@E@¿HçDEãBCQHD@½HOCFãE½B½H¼EJéHDOOCFãDGHF@HçDABCHD@½HQBçD¿BHOBCNEAQ«H´QHD
`JF@QB¼B@JBäH³FãB@HçDQHDæGBHAFHO¼CJ[DQBHD@½HGBDQBHDHAFADGHFLH¢YYäYYYHQ¼DCBHLBBAHE@HA[CBBHæ¼EG½E@¿QHGFJDAB½HF@H¢¨HDJCBQHFL
`GD@½HE@HµF¼A[HID½BHMF¼@AK«
`³FãB@HçDQHQAEGGHD@H¼@OCFêADæGBHæ¼QE@BQQHE@H ¼@BH¢££¬äHç[B@HEAHD¿DE@HADOOB½HA[BHB¼EAKHNDCéBAäHCDEQE@¿Hª»Y«»HNEGGEF@HæKHQBGGE@¿
`X«X¨HNEGGEF@HQ[DCBQHFLHQAFJéHDAHª¢»«¨YHOBCHQ[DCBäHD@HDNF¼@AHA[DAHçDQHªXHGBQQHA[D@Hç[DAHA[BHJFNOD@KH[D½H[FOB½HLFC«H¾¼J[HFL
`A[BHL¼@½QHçB@AHAFHO¼CJ[DQBH@BJBQQDCKHB¼EONB@AHLFCHDH@BçHND@¼LDJA¼CE@¿äH½EQACEæ¼AEF@äHD@½HCBQBDCJ[HLDJEGEAK«HKH@FçH³FãB@
`[D½HDH@¼NæBCHFLHFA[BCHACD@Q½BCNDGHOCF½¼JAQHE@HA[BHOEOBGE@BäHE@JG¼½E@¿HODAJ[BQHLFCH[FCNF@BHCBOGDJBNB@AäHJDC½EFãDQJ¼GDC
`½EQBDQBäHD@AEL¼@¿DGHA[BCDOKäH½B@ADGHODE@HND@D¿BNB@AäHD@½HDQA[ND«H?@H¢££»HA[BHJFNOD@KH¿B@BCDAB½Hª¬HNEGGEF@HE@HCBãB@¼BQä
`OFQAE@¿HDH@BAHGFQQHFLHª»«»HNEGGEF@äHD@½HDHKBDCHGDABCH[D½HQDGBQHFLHªZHNEGGEF@HD@½HDH@BAHGFQQHFLH@BDCGKHª¨HNEGGEF@«H?@HA[BHLDGGHFLH¢££¬
`A[BHJFNOD@KHCBJBEãB½H I´HíQFJEDGåQJEB@JBQåD@½åGDçíOFGEAEJDGåQJEB@JBåD@½å¿FãBC@NB@Aí¼Qå¿FãBC@NB@AíLFF½åD@½å½C¼¿å
`D½NE@EQACDAEF@®HDOOCFãDGHF@HEAQHBQACF¿B@HODAJ[äHD@½HçEA[HA[BHOCF½¼JAHê@DGGKHDæGBHAFHB@ABCHA[BHNDCéBAOGDJBHEAHDOOBDCB½HA[DA
`³FãB@HçDQHF@HA[BHãBC¿BHFLHê@DGGKHA¼C@E@¿HDHOCFêAäHæ¼AHDH@¼NæBCHFLHLDJAFCQHE@ABCãB@B½HAFH BFODC½EBHA[BHL¼A¼CBHFLHA[BHJFNOD@K«
`?@H D@¼DCKH¢££¨HD@FA[BCHBQACF¿B@HODAJ[äHOCF½¼JB½HæKHBCGBëHDæFCDAFCEBQäHCBJBEãB½H I´HDOOCFãDGHD@½HEAHDOOBDCB½HA[DAHEA
`çF¼G½HæBJFNBHDãDEGDæGBHE@HA[BHì@EAB½HµADABQHD@½HMD@D½DHE@HA[BH@BëAHA[CBBHFCHLF¼CHNF@A[Q«
`Ì]fzd`~ab_elz_gij^_l
`º ± ² ±²§¹±§§§§± §
` ¯§ ² §§§«
`"# &&&
`"
` '( "'
`)*
`
`"
`
`
`
`Already a leader in the development of advanced drug delivery technologies, Noven Pharmaceutical's mission is to become the world's
`
`premier developer, manufacturer and marketer of transdermal drug delivery systems.
`
`http://www.encyclopedia.com/books/politics-and-business-magazines/noven-pharmaceuticals-inc
`
`3/6
`
`
`
`6/29/2017
`
`Noven Pharmaceuticals, Inc. - Dictionary definition of Noven Pharmaceuticals, Inc. | Encyclopedia.com: FREE online dictionary
`
`Although Noven's new manufacturing plant had still not received FDA approval, Ciba (soon to become part of Novartis AG)
`decided in the spring of 1996 to finally start marketing Vivelle, after experiencing a 7 percent drop-off in sales of its older
`patch. This turn of events resulted in an surge of investor confidence, which would more than double the price of Noven stock.
`Such volatility in the price of the company's stock would be commonplace over the next few years. By the spring of 1997 the
`stock was again trading at the $8 level, due to lower levels of reorders as the company worked through its stockpile of estrogen
`patches. Noven hoped to improve its fortunes, and move closer to its elusive goal of profitability, when it introduced its second
`product, Denti Patch, in 1997. The adhesive strip filled with lidocain was designed to numb the mouth within two minutes and
`remain effective for 45 minutes, allowing a dentist to painlessly introduce a needle to the area. Although a positive step, Noven
`lost close to $9.6 million in 1997.
`
`New CEO and Move to Profitability: Late 1990s, Early 2000s
`
`Noven, on the other hand, was still nine to 12 months from being able to manufacture its patch in one of the company's new
`South Dade facilities, which was experiencing difficulty in gaining FDA approval. Ciba was reluctant to introduce the product
`unless it was certain of a steady supply, forcing Noven to start producing the patch at an existing facility for the European
`market and to build up sufficient inventory for eventual sales in North America (/places/oceans-continents-and-polar-
`reRions/oceans-and-continents/north-america). Noven officials were confident that their estrogen patch, designed to be used
`twice each week, was superior to the one developed by Berlex, which was to be worn for an entire week, resulting in problems
`with adhesion and skin irritation. Nevertheless, experience held that the product that launched first gained a significant market
`share. Essentially, Noven was forfeiting the advantage it had with Ciba, whose first-generation transdermal product had a
`monopoly on the estrogen patch market, generating $125 million in North American sales. Moreover, other companies were
`coming out with second-generation transdermal patches, so that Noven would have an even more difficult time entering the
`market. As a result investors lost confidence in the prospects of the company and Noven's stock languished in the $8 range,
`after hitting a high of $19.25 the previous year. Because of sales to Europe Noven was able to double its revenues over the
`previous year, logging sales of $12.1 million, but the company's net loss also grew to nearly $6.6 million.
`
`
`
`
`
`
`
`#
`
`
`³FãB@äHF@HA[BHFA[BCH[D@½äHçDQHQAEGGH@E@BHAFH¢XHNF@A[QHLCFNHæBE@¿HDæGBHAFHND@¼LDJA¼CBHEAQHODAJ[HE@HF@BHFLHA[BHJFNOD@KèQH@Bç
`µF¼A[HID½BHLDJEGEAEBQäHç[EJ[HçDQHBëOBCEB@JE@¿H½ELêJ¼GAKHE@H¿DE@E@¿H I´HDOOCFãDG«HMEæDHçDQHCBG¼JAD@AHAFHE@ACF½¼JBHA[BHOCF½¼JA
`¼@GBQQHEAHçDQHJBCADE@HFLHDHQABD½KHQ¼OOGKäHLFCJE@¿H³FãB@HAFHQADCAHOCF½¼JE@¿HA[BHODAJ[HDAHD@HBëEQAE@¿HLDJEGEAKHLFCHA[BHî¼CFOBD@
`NDCéBAHD@½HAFHæ¼EG½H¼OHQ¼LêJEB@AHE@ãB@AFCKHLFCHBãB@A¼DGHQDGBQHE@H³FCA[H´NBCEJDHíOGDJBQíFJBD@QåJF@AE@B@AQåD@½åOFGDCå
`CB¿EF@QíFJBD@QåD@½åJF@AE@B@AQí@FCA[åDNBCEJD®«H³FãB@HFLêJEDGQHçBCBHJF@ê½B@AHA[DAHA[BECHBQACF¿B@HODAJ[äH½BQE¿@B½HAFHæBH¼QB½
`AçEJBHBDJ[HçBBéäHçDQHQ¼OBCEFCHAFHA[BHF@BH½BãBGFOB½HæKHBCGBëäHç[EJ[HçDQHAFHæBHçFC@HLFCHD@HB@AECBHçBBéäHCBQ¼GAE@¿HE@HOCFæGBNQ
`çEA[HD½[BQEF@HD@½HQéE@HECCEADAEF@«H³BãBCA[BGBQQäHBëOBCEB@JBH[BG½HA[DAHA[BHOCF½¼JAHA[DAHGD¼@J[B½HêCQAH¿DE@B½HDHQE¿@EêJD@AHNDCéBA
`Q[DCB«HîQQB@AEDGGKäH³FãB@HçDQHLFCLBEAE@¿HA[BHD½ãD@AD¿BHEAH[D½HçEA[HMEæDäHç[FQBHêCQAå¿B@BCDAEF@HACD@Q½BCNDGHOCF½¼JAH[D½HD
`NF@FOFGKHF@HA[BHBQACF¿B@HODAJ[HNDCéBAäH¿B@BCDAE@¿Hª¢X¨HNEGGEF@HE@H³FCA[H´NBCEJD@HQDGBQ«H¾FCBFãBCäHFA[BCHJFNOD@EBQHçBCB
`JFNE@¿HF¼AHçEA[HQBJF@½å¿B@BCDAEF@HACD@Q½BCNDGHODAJ[BQäHQFHA[DAH³FãB@HçF¼G½H[DãBHD@HBãB@HNFCBH½ELêJ¼GAHAENBHB@ABCE@¿HA[B
`NDCéBA«H´QHDHCBQ¼GAHE@ãBQAFCQHGFQAHJF@ê½B@JBHE@HA[BHOCFQOBJAQHFLHA[BHJFNOD@KHD@½H³FãB@èQHQAFJéHGD@¿¼EQ[B½HE@HA[BHª¤HCD@¿Bä
`DLABCH[EAAE@¿HDH[E¿[HFLHª¢£«X¨HA[BHOCBãEF¼QHKBDC«HBJD¼QBHFLHQDGBQHAFHî¼CFOBH³FãB@HçDQHDæGBHAFH½F¼æGBHEAQHCBãB@¼BQHFãBCHA[B
`OCBãEF¼QHKBDCäHGF¿¿E@¿HQDGBQHFLHª¢X«¢HNEGGEF@äHæ¼AHA[BHJFNOD@KèQH@BAHGFQQHDGQFH¿CBçHAFH@BDCGKHªZ«ZHNEGGEF@«
`´GA[F¼¿[H³FãB@èQH@BçHND@¼LDJA¼CE@¿HOGD@AH[D½HQAEGGH@FAHCBJBEãB½H I´HDOOCFãDGäHMEæDHQFF@HAFHæBJFNBHODCAHFLH³FãDCAEQH´V®
`½BJE½B½HE@HA[BHQOCE@¿HFLH¢££ZHAFHê@DGGKHQADCAHNDCéBAE@¿H¸EãBGGBäHDLABCHBëOBCEB@JE@¿HDH¥HOBCJB@AH½CFOåFLLHE@HQDGBQHFLHEAQHFG½BC
`ODAJ[«HW[EQHA¼C@HFLHBãB@AQHCBQ¼GAB½HE@HD@HQ¼C¿BHFLHE@ãBQAFCHJF@ê½B@JBäHç[EJ[HçF¼G½HNFCBHA[D@H½F¼æGBHA[BHOCEJBHFLH³FãB@HQAFJé«
`µ¼J[HãFGDAEGEAKHE@HA[BHOCEJBHFLHA[BHJFNOD@KèQHQAFJéHçF¼G½HæBHJFNNF@OGDJBHFãBCHA[BH@BëAHLBçHKBDCQ«HKHA[BHQOCE@¿HFLH¢££¥HA[B
`QAFJéHçDQHD¿DE@HACD½E@¿HDAHA[BHª¤HGBãBGäH½¼BHAFHGFçBCHGBãBGQHFLHCBFC½BCQHDQHA[BHJFNOD@KHçFCéB½HA[CF¼¿[HEAQHQAFJéOEGBHFLHBQACF¿B@
`ODAJ[BQ«H³FãB@H[FOB½HAFHENOCFãBHEAQHLFCA¼@BQäHD@½HNFãBHJGFQBCHAFHEAQHBG¼QEãBH¿FDGHFLHOCFêADæEGEAKäHç[B@HEAHE@ACF½¼JB½HEAQHQBJF@½
`OCF½¼JAäHIB@AESDAJ[äHE@H¢££¥«HW[BHD½[BQEãBHQACEOHêGGB½HçEA[HGE½FJDE@HçDQH½BQE¿@B½HAFH@¼NæHA[BHNF¼A[HçEA[E@HAçFHNE@¼ABQHD@½
`CBNDE@HBLLBJAEãBHLFCH¬¨HNE@¼ABQäHDGGFçE@¿HDH½B@AEQAHAFHODE@GBQQGKHE@ACF½¼JBHDH@BB½GBHAFHA[BHDCBD«H´GA[F¼¿[HDHOFQEAEãBHQABOäH³FãB@
`GFQAHJGFQBHAFHª£«ZHNEGGEF@HE@H¢££¥«
`\_uaÌØÊad`{aw]^_ai]abe]âidjkji~aÞdi_apqqslmaØdek~asssl
`?@HIBJBNæBCH¢££¥H³FãB@H[ECB½HDHQBDQF@B½HBëBJ¼AEãBäHUFæBCAHM«HµACD¼QQäHç[FHçDQH@DNB½HOCBQE½B@AHD@½HJ[EBLHBëBJ¼AEãBHFLêJBC
`DQHODCAHFLHDHACD@QEAEF@HAFH@BçHND@D¿BNB@AHE@HBDCGKH¢££¤«H³FAHF@GKH½E½HµDæGFAQéKHQABOH½Fç@HLCFNHA[BQBHOFQAQäH[BHOCFNEQB½HAF
`¼GAENDABGKHCBQE¿@HDQHJ[DECND@HFLHA[BHJFNOD@K«HSCEFCHAFH FE@E@¿H³FãB@äHµACD¼QQHQBCãB½HæCEB
`FLêJBCHDAH?ãDëäHLFGGFçE@¿H¢¬HKBDCQHFLH[FG½E@¿HãDCEF¼QHBëBJ¼AEãBHOFQEAEF@QHçEA[HMFC½EQHMFCOFCDAEF@«Hì@½BCH[EQH¿¼E½D@JBH³FãB@
`æB¿D@HAFHADéBHQE¿@EêJD@AHQACE½BQHAFçDC½HOCFêADæEGEAKäH½¼BHE@HGDC¿BHODCAHAFHA[BHE@ACF½¼JAEF@HFLH@BçHOCF½¼JAQHA[DAHµDæGFAQéKH[D½
`æBB@HE@QAC¼NB@ADGHE@H½BãBGFOE@¿«HW[BHJFNOD@KHCBJBEãB½H I´HDOOCFãDGHF@HA[BHçFCG½èQHêCQAHJFNæE@DAEF@HODAJ[äHF@BHA[DAH FE@B½
`BQACF¿B@HçEA[HOCF¿BQAE@HLFCHNB@FOD¼QDGHçFNB@«H?@HA[BHGDABH¢££YQH³FãB@HDGQFHE@ACF½¼JB½H¸EãBGGBå½FAHD@½HîQACD½FAäHN¼J[
`QNDGGBCHBQACF¿B@HODAJ[BQHA[DAH¼QB½HA[BHJFNOD@KèQHCBãFG¼AEF@DCKHIFAH¾DACEëHABJ[@FGF¿KHA[DAH¼Q[BCB½HE@HDHA[EC½H¿B@BCDAEF@HFL
`ACD@Q½BCNDGHODAJ[BQ«HIFAH¾DACEëHODAJ[BQHçBCBHDæGBHAFHDJ[EBãBH[E¿[BCH½C¼¿HJF@JB@ACDAEF@QHF@HA[BHDJCKGEJHOFCAEF@äHCBQ¼GAE@¿HE@
`QNDGGBCHODAJ[BQäHæBJD¼QBHDHQEGEJF@BHGDKBCHçDQHD½½B½HAFHOCFãE½BHD½[BQEF@«HBJD¼QBHA[BHQEGEJF@BHD@½HDJCKGEJH½E½H@FAHJFNOCFNEQB
`BDJ[HFA[BCèQHL¼@JAEF@QäHA[BHODAJ[HFLLBCB½H½C¼¿H½BGEãBCKHBLêJEB@JKHD@½HçDQHDæGBHAFHQAEJéHAFHA[BHQéE@HE@HQOEABHFLHCE¿FCF¼QHDJAEãEAEBQ
`Q¼J[HDQHBëBCJEQBHD@½HQçENNE@¿«
`³FãB@HæBJDNBHOCFêADæGBHE@H¢£££äHBDC@E@¿Hª¢Y«¬ZHNEGGEF@HF@HCBãB@¼BQHFLHª»¢«ZHNEGGEF@«HW[BHLFGGFçE@¿HKBDCHQDGBQH¿CBçHAFH@BDCGK
`ª¬»HNEGGEF@Hç[EGBHA[BHJFNOD@KHOFQAB½HDH@BAHOCFêAHFLHª¢£«ZHNEGGEF@«HR@BHFLHA[BHNFCBHBëJEAE@¿HOCF½¼JAQH³FãB@HGFFéB½HAFHNDCéBA
`DAHA[BHQADCAHFLHDH@BçH½BJD½BHçDQHDHODAJ[HAFHACBDAH´AAB@AEF@HIBêJEAHPKOBCDJAEãEAKHIEQFC½BCH´IPI®HçEA[HDHX¬å[F¼CH½FQBHFL
`NBA[GKO[B@E½DABäHA[BHJ[BNEJDGH@DNBHFLHA[BH½C¼¿QHUEADGE@äHMF@JBCADäHD@½H´½BCDGG«HW[BHJFNOD@KèQHOFQEAEF@HE@HA[BHBNBC¿E@¿
`ACD@Q½BCNDGHNDCéBAHLFCHA[EQHNB½EJDAEF@HçDQHæFGQABCB½HæKHDHODAB@AHEAHCBJBEãB½HF@HA[BHODAJ[«HW[BHOCF½¼JAH[BG½H¿CBDAHOFAB@AEDGHE@HD
`"# &&&
`"
` '( "'
`)*
`
`"
`
`
`
`In December 1997 Noven hired a seasoned executive, Robert C. Strauss, who was named president and chief executive officer
`as part of a transition to new management in early 1998. Not only did Sablotsky step down from these posts, he promised to
`ultimately resign as chairman of the company. Prior to joining Noven, Strauss served briefly as president and chief operating
`officer at Ivax, following 14 years of holding various executive positions with Cordis Corporation. Under his guidance Noven
`began to take significant strides toward profitability, due in large part to the introduction of new products that Sablotsky had
`been instrumental in developing. The company received FDAapproval on the world'sfirst combination patch,one that joined
`estrogen with progestin for menopausal women. In the late 1990s Noven also in