PharmaKinetics shuffles top management posts

November 07, 1990|By Ted Shelsby

PharmaKinetics Laboratories Inc., a Baltimore-based company that tests pharmaceutical products before they are released for widespread use, announced yesterday a major reorganization of its top management.

V. Brewster Jones, president of the company's U.S. operations, which are in Baltimore, has been promoted to president and chief executive officer and appointed a director.

He replaces Steven A. Woodman, who has resigned as president, CEO and director to assume a business-development role for the company.

The company also announced that Mark B. Perkal has resigned as executive vice president, chief scientific officer and a director to pursue other interests. He also will be a consultant to PharmaKinetics.

Dr. Perkal's day-to-day duties have been assumed by Lawrence J. Lesko, vice president in charge of analytical services, also currently the company's chief scientific officer for U.S. operations.

Mr. Jones said that through a combination of attrition and work force reductions, the company has eliminated about a dozen administrative and personnel positions over the past two weeks "in an effort to make us more streamlined."

The company has about 170 employees in Baltimore.

Yesterday's actions come about a month after PharmaKinetics announced an agreement to sell its domestic operations to Applied Bioscience International Inc. of East Millstone, N.J., for $14.8 million.

Applied Bioscience has agreed to pay $4.8 million right away, assume some debt and make payments of $2 million a year for up to five years.

Mr. Jones said yesterday that negotiations with Applied Bioscience are proceeding as expected and that the two companies anticipate reaching a definitive agreement by the end of the month.

Mr. Woodman and Mr. Lesko have entered into employment agreement with Applied Bioscience that are to be effective with the closing of the sale, according to documents filed with the Securities and Exchange Commission.

Mr. Jones that when the sale is completed, PharmaKinetics will be much smaller company, with a small corporate staff in Baltimore for the foreseeable future. He said the company may ** also change its name but that "no decision has been reached on this yet."

The reorganized company will be engaged in the same type of work and its laboratory work force will be based in Hannover, Germany. He said the European operation has its headquarters in Walsrode, Germany, and has a total of about 160 employees.

In recognition of the increasing importance of its German subsidiary, PharmaKinetics also announced that Christopher J. Holloway, managing director of the subsidiary, has been appointed a director of PharmaKinetics.

The German subsidiary, International Bio Research, accounts for about 55 percent of Pharmakinetics' current revenue.

Mr. Jones said in a prepared statement yesterday that the reorganization was an important step toward restructuring PharmaKinetics'U.S. operations and for continued growth of the North American and European operations.

Earlier this year, PharmaKinetics and Bolar Pharmaceutical Inc., based in Copiaque, N.Y., terminated their contract involving the testing of pharmaceutical products. The contract cost the Baltimore company about 35 percent of its 1989 fiscal year sales.

Last month, PharmaKinetics announced a loss of $3.8 million, or 40 cents a share, in the fiscal year that ended June 30. The previous year the company earned $2.8 million, or 30 cents a share.

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