HAYWARD, Calif., May 02, 2008 (BUSINESS WIRE) --
IMPAX Laboratories, Inc. (OTC:IPXL) today announced that it
continues to make progress towards filing its 2004 through 2007
delinquent financial reports with the Securities and Exchange
Commission (SEC), but was not able to file these reports by April 30,
as previously estimated. The Company and its auditors continue to
expend significant resources to complete the audits of its prior
years' results. Activities accelerated in July 2007, when the Company
received advice from the SEC's Office of the Chief Accountant on its
proposed new accounting treatment for transactions under its Strategic
Alliance Agreement with an affiliate of Teva Pharmaceutical
Industries, Ltd. Since January 1, 2008 alone the auditors collectively
have expended more than 7,000 hours, which, when added to their hours
from August through December 2007, results in an aggregate of nearly
10,000 audit hours. Company personnel also have expended an estimated
10,000 hours on the project since August.
As previously announced, the Company will appear before the SEC on
May 5, 2008 to provide oral argument in support of the Company's
appeal of the Administrative Law Judge's April 2007 initial decision
that would, because of the Company's periodic reporting delinquency,
revoke the registration of IMPAX's common stock under Section 12 of
the Securities Exchange Act of 1934.
Arthur A. Koch, Jr., senior vice president and chief financial
officer, said: "We continue to work diligently with the auditors as
they continue to work to complete the audits of our financial results
for this extended period. Though we are unable to file our prior year
reports by April 30, we have made substantial progress and based on
our current assessment of the remaining effort to complete this work,
the Company estimates that the audits and filings for the 2004 to 2007
fiscal years as well as the quarterly report for the first quarter of
2008 can be completed by June 30, 2008. This is not our auditors'
estimate and there is necessarily some degree of uncertainty inherent
in our estimate, but our confidence in it is enhanced by the
significant progress we have made since our last update."
Koch added, "While we regret that we have been unable to provide
investors with the financial information they should have, we have
appreciated their continued patience and support. Although not a
substitute for complete financial information, our cash and liquid
investments at March 31, 2008 was approximately $136.6 million, a
decrease of $7.1 million from December 31, 2007, and does not include
the expected receipt of $34 million reflecting IMPAX's share of the
profits from first quarter 2008 sales of our generic OxyContin. The
modest $7.1 million decline in our cash and liquid investments in the
first quarter was primarily due to capital expenditures of
approximately $5.1 million, estimated other normal net changes in
working capital of approximately $1.5 million and repayment of debt of
approximately $0.5 million."
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, 2006, and
2007 and its Form 10-K for 2005, 2006 and 2007, the actual time that
will be required to complete the filing of IMPAX's delinquent periodic
reports, 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.
SOURCE: IMPAX Laboratories, Inc.
Company Contacts:
IMPAX Laboratories, Inc.
Larry Hsu, Ph.D., President & CEO
510-476-2000, Ext. 1111
or
Arthur A. Koch, Jr., Sr. VP & CFO
215-933-0351
or
Mark Donohue, Sr. Director, IR
215-933-3526
or
Investor Relations Contacts:
Lippert/Heilshorn & Associates, Inc.
Kim Sutton Golodetz, 212-838-3777
[email protected]
or
Bruce Voss, 310-691-7100
[email protected]
www.lhai.com