OREAD LABORATORIES

Case Highlights

• Evaluated cash flow analysis
• Provided analysis of business plan

Case Narrative

Oread Laboratories was a pharmaceutical firm based in Lawrence, Kansas.  Oread considered itself to be the first company in the world to offer start-to-finish drug development on a contract basis.  Its niche was combining various elements and stages of the drug development process into a single vertically integrated company.  Much of the growth and development of the company came from acquisitions including INTERx from Merck & Co., Inc., a 29-acre toxicology plant acquired from Ciba-Geigy and Syntex (U.S.A.), a manufacturing division of Roche Holdings, Ltd.

DSI was engaged as financial advisors by the company’s board of directors to review the financial condition of the company with an emphasis on review of the cash flow analysis.   Additionally, given the liquidity crisis of the company, DSI evaluated the overhead structure, operations, staffing, capital expenditures and the future business plan of the company.  DSI provided its report and recommendations directly to the board of directors.