Healthcare Industry News: Impax Laboratories
News Release - June 29, 2006
IMPAX Settles Solvay LitigationHAYWARD, Calif.--(HSMN NewsFeed)--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.
Source: IMPAX Laboratories
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