HAYWARD, Calif.--(BUSINESS WIRE)--May 1, 2007--IMPAX Laboratories,
Inc. (OTC: IPXL) ("IMPAX" or "the Company") reported that on April 30,
2007, an Administrative Law Judge ("ALJ") of the Securities and
Exchange Commission ("Commission") issued an initial decision that, if
upheld by the Commission itself, would result in the revocation of the
registration of the Company's common stock under section 12 of the
Securities Exchange Act of 1934. The Company will file a timely appeal
to the Commission and hopes to persuade the Commission, based upon the
evidence developed in a two-day hearing in February before the ALJ,
that revocation or suspension of such registration is neither
necessary nor appropriate for the protection of investors. The ALJ's
decision will not be effective during the pendency of the appeal.
The ALJ's initial decision is based upon the Company's failure to
file periodic reports since its quarterly report for the period ended
September 30, 2004. As previously announced, the reason for this
reporting delinquency is that the Company 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 has now developed an
accounting treatment that it deems appropriate and is awaiting the
concurrence of the Commission's Office of the Chief Accountant ("OCA")
in its proposed treatment. Although it cannot predict when the OCA
will reach a conclusion, the Company currently estimates that it will
be in a position to file all of its delinquent reports within two to
three months following a favorable determination by the OCA.
The Company also reported that its available cash and investments
at March 31, 2007 was approximately $46.6 million, compared with $29.1
million at December 31, 2006. The Company continues to actively
develop, manufacture and ship pharmaceutical products and received
nine FDA approvals during 2006.
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 Contacts:
Lippert/Heilshorn & Associates, Inc.
Kim Sutton Golodetz, 212-838-3777
[email protected]
Bruce Voss, 310-691-7100
[email protected]
www.lhai.com
SOURCE: IMPAX Laboratories, Inc.