MWV and Bilcare Jointly Acquire International Labs, Inc.

RICHMOND, Va.—MeadWestvaco Corp. and India-based Bilcare Ltd. have acquired pharmaceutical packaging company International Labs of St. Petersburg, Fla. The acquisition was completed on July 18, 2008. Terms of the agreement were not disclosed.

The joint acquisition will leverage best-in-class capabilities for adherence-promoting pharmaceutical packaging and streamline the supply chain by eliminating several steps in the distribution channel, helping to make adherence packaging more widely available to consumers throughout the global marketplace, especially through growing low-cost generic and branded drug programs.

The partnership combines MWV’s capabilities in healthcare packaging design and innovation, including compliance and injection molded packaging; Bilcare’s research and expertise in materials, products, processes and services, which enable the safe and effective integration of pharmaceuticals and packaging; and International Labs’ contract packaging services for retail pharmacies, and large generic and branded drug manufacturers.

“The combination of our turnkey capabilities has helped enable the creation of new, highly efficient, consumer-oriented supply chains that are changing the economics of global healthcare and improving patient outcomes,” said Bruce Thomas, senior vice president, Global Market Strategy for MWV. “This acquisition is one component of our healthcare strategy in product innovation, capacity expansion, and other growth investments. We are continuing to work with retailers, including Wal-Mart, and generic and branded pharmaceutical companies to continue to bring our innovative healthcare compliance solutions to serve the fast-growing needs of the global healthcare market.”

International Labs is using the MWV compliance packaging solution Shellpak® for generic and branded drug programs. Shellpak is a pre-filled medication package that can be immediately distributed to consumers, alleviating the need for pharmacists to count pills. The package’s unique and efficient design integrates a foil-backed blister pack with a labeled, injection molded plastic shell, and eliminates the need for unnecessary transport packaging. The solution’s expert design is proven to enhance patient outcomes by motivating and reminding patients to take medication as prescribed.

Shellpak’s additional unique features that promote patience adherence and safety include:
• Blisters imprinted with dosing dates and times, re-enforcing the prescribed regimen
• Instructional labels attached to the package to ensure dosing information is available until the medication is completely consumed
• Child safe and senior friendly packaging and drug dispensing system
• Availability of billboard space on the package offers pharmaceutical companies the opportunity to promote their drug brand and critical information, strengthening the visibility of the package on the shelf.

“As a leading resource for healthcare companies, Bilcare has unique visibility into the increasingly global healthcare market,” said Mohan Bhandari, chairman and managing director of Bilcare. “We are excited about the acquisition of International Labs; our partnership with MWV will allow us to combine our global experience, primary and secondary packaging expertise, and research and development capabilities to bring compliance packaging solutions to customers throughout the world.”

“Bilcare is intently focused on developing technologies that improve patient health outcomes,” continued Bhandari. “For example, the recent unveiling of Bilcare’s nanotechnology-based secure fingerprint is a major step toward securing the pharmaceutical product supply chain in its entirety from the manufacturer to the patient. This highly advanced technology has ability to not only secure the e-pedigree needs via a safe authentication system but also to provide a wide range of business solutions.”