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.
|