Wilmington, N.C., March 1 /PRNewswire-FirstCall/ -- The Board of Directors
of aaiPharma Inc. (Nasdaq: AAII) announced that subsequent to the issuance of
the Company's press release announcing its 2003 financial results and in
connection with the recently announced reorganization of the Company's
management team, the Board of Directors has become aware of unusual sales in
the Company's Brethine(R) and Darvocet(TM) product lines during the second
half of 2003. The Company has appointed an independent committee of its
Board of Directors to conduct an inquiry into these matters. The committee
has retained King & Spalding LLP, an independent law firm, to assist in this
investigation. The Company believes these matters will materially affect its
previously announced guidance for the first quarter and full year of 2004 and
is withdrawing its guidance for these periods, and these matters may,
depending on the results of the inquiry, require an adjustment to the 2003
financial results.
Dr. Frederick D. Sancilio, Chairman of the Board of Directors, indicated
that "the Company will not comment further on these matters until the
independent inquiry has been concluded. We do not presently know how long
this process will take, and in light of the March 15 filing deadline, this
process could delay the filing of the Company's 2003 annual report on Form
10-K."
About aaiPharma
aaiPharma Inc. is a leading, science-based pharmaceutical company focused
on pain management, with corporate headquarters in Wilmington, North Carolina.
With more than 24 years of drug development expertise, the Company is focused
on developing, acquiring, and marketing well-known, branded medicines in its
targeted therapeutic areas. aaiPharma's development efforts are focused on
developing improved medicines from established molecules through its
significant research and development capabilities. For more information on
the Company, including its product development organization AAI Development
Services, please visit aaiPharma's website at http://www.aaipharma.com.
Forward Looking Statements
Information in this press release contains certain "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities and Exchange Act of 1934, including the
sentence concerning the Company's belief as to the future effects on its
previously announced guidance resulting from the specified matters. The
"forward-looking statements" herein involve risks and uncertainties that could
cause actual results to differ materially, including, without limitation,
risks and uncertainties pertaining the results of the announced independent
investigation, including, without limitation, its determination of the nature
and magnitude of the sales abnormalities under review, the commercial and
medical attractiveness of the Company's present and planned products in light
of sales of competitive or generic products; the outcome of present and future
securities and patent litigations by and against the Company; regulatory
decisions by the FDA and other agencies regulating the Company; and the
Company's ability to successfully acquire, finance, conduct successful
research on, develop, improve, obtain timely regulatory approval for, launch,
extend product life cycles of, and sell, on a commercially profitable basis,
pharmaceutical products; to obtain, use, enforce, defend and license valid and
commercially valuable patents, including, without limitation, in the Company's
patent litigation; to obtain and enforce existing and future contracts; and on
the commercial success of the contemplated products. Additional factors that
may cause the actual results to differ materially are discussed in aaiPharma's
recent filings with the Securities and Exchange Commission, including, but not
limited to, its Annual Report on Form 10-K filed on March 28, 2003, including
its exhibits; its Forms 10-Q filed on May 15, 2003, August 14, 2003 (including
its Exhibit 99.1) and November 14, 2003, its Form 8-Ks; and its other periodic
filings.
SOURCE aaiPharma Inc.
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Related links:
http://www.aaipharma.com
CONTACT:
aaiPharma Inc., +1-910-254-7000
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