HAYWARD, Calif.--(BUSINESS WIRE)--Jan. 2, 2007--IMPAX
Laboratories, Inc. (OTC:IPXL) ("IMPAX" or the "Company") reported that
on Friday December 29, 2006, the Securities and Exchange Commission
("SEC") issued an order instituting an administrative proceeding to
determine whether, in light of the Company's failure to file reports
since September 2004, the registration of its securities under Section
12 of the Securities Exchange Act of 1934 should be suspended or
revoked. An Administrative Law Judge will consider the evidence in
this matter and is ordered to issue an initial decision within 120
days. Also on December 29, 2006, the SEC suspended trading in IMPAX
shares during the 10-business-day period from December 29, 2006
through January 16, 2007 because of the Company's failure to file
reports.
The Company has not filed a periodic report since its report for
the period ended September 30, 2004 because, as it announced in May
2005, it has been working to determine the appropriate accounting
treatment for transactions under its Strategic Alliance Agreement with
an affiliate of Teva Pharmaceutical Industries, Ltd. The Company
continues to make significant progress in determining the appropriate
accounting treatment and completing its 2004 and 2005 financial
statements and is optimistic that its continued progress will enable
it to avoid such suspension or revocation of the registration of its
securities.
The Company understands that trading in its stock may resume on
January 17, 2007 and that dealers will be permitted to publish
quotations only on behalf of customers that represent customers'
indications of interest and do not involve dealers' solicitation of
such interest.
The Company also reported that its available cash and investments
at December 31, 2006 was approximately $30.2 million. The Company
continues to actively develop, manufacture and ship products and
received nine FDA approvals during 2006, including the recent approval
of its generic version of Wellbutrin XL 300mg, a product marketed by
GlaxoSmithKline that had U.S. sales of $1.0 billion during the 12
months ended October 31, 2006 according to Wolters Kluwer Health.
About IMPAX Laboratories, Inc.
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 markets 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 and suspension of trading in
IMPAX's stock, the SEC proceeding to determine whether to suspend or
revoke the registration of IMPAX's securities under section 12 of the
Securities Exchange Act, 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 each of the first three quarters
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.
Larry Hsu, Ph.D. President & CEO
510-476-2000, Ext. 1111
Arthur Koch, CFO
215-933-0351
www.impaxlabs.com
or
Investor Relations:
Lippert/Heilshorn & Associates, Inc.
Kim Sutton Golodetz,
212-838-3777
kgolodetz@lhai.com
Bruce Voss,
310-691-7100
bvoss@lhai.com
www.lhai.com
SOURCE: IMPAX Laboratories, Inc.