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Bergen, Ivax call it quits
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March 21, 1997: 9:46 a.m. ET
Bergen Brunswig plans to file suit charging breach of merger
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NEW YORK (CNNfn) - Bergen Brunswig Corp. said it has called off a proposed $1.6 billion merger agreement with Ivax Corp. and plans to file suit Friday against Ivax, alleging breach of the merger.
In a separate statement, Ivax said Bergen terminated the agreement without good cause.
Drug wholesaler Bergen announced in November it had agreed to buy generic drug maker Ivax in a merger that would have created the first integrated manufacturer and distributor of pharmaceuticals in the United States.
Recognizing that the merger might not win approval or be completed, Miami-based Ivax had developed several contingency strategies geared toward functioning independently, Phillip Frost, Ivax chairman and chief executive officer, said in a statement. Frost added the company will announce the plans "in the near term."
As the merger unravels, Orange, Calif.-based Bergen will continue its key strategy to manage supply channel costs, Donald R. Roden, company president and chief executive officer, said in a statement.
"Notwithstanding the termination of the Ivax agreement, we will continue to pursue our strategy, recognizing the valuable role that generics play," Roden said.
Bergen Brunswig plans to file suit Friday in U.S. District Court for the Southern District of New York. 
--Will Morton
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Bergen Brusnwig Corp.
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