HAYWARD, Calif.--(BUSINESS WIRE)--June 29, 2006--IMPAX
Laboratories, Inc. (OTC:IPXL) announced today it has settled a suit
brought against it in 2003 by Solvay Pharmaceuticals, Inc. alleging
that IMPAX engaged in false advertising practices dating back to 1998
in connection with the marketing of two of the Company's ten Lipram
pancreatic enzyme supplements as well as two discontinued pancreatic
enzyme supplements. Under the settlement, IMPAX will pay $23 million
to the plaintiffs, of which $12 million will be paid immediately from
the Company's cash reserves, which total approximately $42 million
currently. The balance will be paid over the next six years. Sales and
gross profits from these two Lipram products were not material to
IMPAX's results.
Barry R. Edwards, IMPAX's CEO, commented, "Although we continue to
believe that our advertising of these products was neither false nor
misleading and that Solvay's suit was without merit, in view of the
potential expense, diversion of management and risks that would have
been involved in an upcoming jury trial in this case, we entered into
what we believe to be a prudent settlement that will result in
dismissal of the suit. It is in the best interest of shareholders to
put this suit behind us."
IMPAX Laboratories, Inc. is a technology based specialty
pharmaceutical company applying its formulation expertise and drug
delivery technology to the development of controlled-release and
specialty generics in addition to the development of branded products.
IMPAX markets its generic products through its Global Pharmaceuticals
division and intends to market its branded products through the IMPAX
Pharmaceuticals division. Additionally, where strategically
appropriate, IMPAX has developed marketing partnerships to fully
leverage its technology platform. IMPAX Laboratories is headquartered
in Hayward, California, and has a full range of capabilities in its
Hayward and Philadelphia facilities. For more information, please
visit the Company's Web site at: www.impaxlabs.com.
"Safe Harbor" statement under the Private Securities Litigation
Reform Act of 1995:
To the extent any statements made in this news release contain
information that is not historical, these statements are
forward-looking in nature and express the beliefs and expectations of
management. Such statements are based on current expectations and
involve a number of known and unknown risks and uncertainties that
could cause IMPAX's future results, performance or achievements to
differ significantly from the results, performance or achievements
expressed or implied by such forward-looking statements. Such risks
and uncertainties include, but are not limited to, possible adverse
effects resulting from the delisting of IMPAX's stock, IMPAX's delay
in filing its 2004 Form 10-K, its Form 10-Q for each of the first
three quarters of 2005, its Form 10-K for 2005, and its Form 10-Q for
the first quarter of 2006, IMPAX's ability to obtain sufficient
capital to fund its operations, the difficulty of predicting FDA
filings and approvals, consumer acceptance and demand for new
pharmaceutical products, the impact of competitive products and
pricing, IMPAX's ability to successfully develop and commercialize
pharmaceutical products, IMPAX's reliance on key strategic alliances,
the uncertainty of patent litigation, the availability of raw
materials, the regulatory environment, dependence on patent and other
protection for innovative products, exposure to product liability
claims, fluctuations in operating results and other risks detailed
from time to time in IMPAX's filings with the Securities and Exchange
Commission. Forward-looking statements speak only as to the date on
which they are made, and IMPAX undertakes no obligation to update
publicly or revise any forward-looking statement, regardless of
whether new information becomes available, future developments occur
or otherwise.
CONTACT: IMPAX Laboratories, Inc.
Barry R. Edwards, 215-933-0360
or
Larry Hsu, 510-476-2000, Ext. 1111
or
Arthur Koch, 215-933-0351
www.impaxlabs.com
or
Investor Relations Contacts:
Lippert/Heilshorn & Associates, Inc.
Kim Sutton Golodetz, 212-838-3777
kgolodetz@lhai.com
or
Bruce Voss, 310-691-7100
bvoss@lhai.com
www.lhai.com
SOURCE: IMPAX Laboratories, Inc.