Healthcare Industry News: Evoke
News Release - April 2, 2007
IMPAX Settles Oxycontin(R) Litigation; Amends Marketing Agreement with DAVA Pharmaceuticals
HAYWARD, Calif.--(HSMN NewsFeed)--IMPAX Laboratories, Inc. (OTC:IPXL ) today announced that the Company has signed an agreement with Purdue Pharma L.P. and certain of its affiliates to settle patent infringement litigation pertaining to IMPAX's generic versions of Purdue's Oxycontin® (oxycodone HCI controlled-release) Tablets. The agreement grants a full release of IMPAX, its exclusive distributor, DAVA Pharmaceuticals, Inc. (DAVA), as well as its distributors and purchasers, and grants a license to IMPAX to sell the products through June 14, 2007, with rights to resume marketing in the near future of a limited amount of product for a limited period of time. The settlement agreement will be submitted to the Federal Trade Commission and the Antitrust Division of the Department of Justice.Additionally, IMPAX also has amended its Agreement with DAVA for IMPAX's Oxycodone hydrochloride extended release tablets. Under the original agreement announced November 7, 2005, IMPAX appointed DAVA exclusive distributor for the product in exchange for appoint-fee payments of up to $60 million over five years and a sharing of gross profits. Under the terms of the amendment, IMPAX began to receive a larger share of the profits from the sales of the products beginning approximately March 1, 2007 and DAVA was relieved of all appointment-fee payments beyond the $10 million previously paid.
"The settlement removes patent litigation risks to IMPAX and DAVA and the amendment with DAVA better reflects the changes in the marketplace," said Larry Hsu, President & CEO of IMPAX.
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 press 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 management's current expectations and are subject to 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 periodic reports subsequent to its Form 10-Q for the third quarter of 2004, the 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
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