BRISTOL, Tenn., Nov. 14 /PRNewswire-FirstCall/ -- King Pharmaceuticals,
Inc. (NYSE: KG) reported the receipt of a subpoena duces tecum on November 13,
2003 from the Office of Inspector General at the Department of Health and
Human Services (the "OIG") requesting the production of documents related to
the matters being investigated by the U.S. Securities and Exchange Commission
(the "SEC"). The requested documents also relate to King's sales, marketing
and other business practices for Altace(R) (ramipril), Aplisol(R) (tuberculin
purified protein derivative, diluted [stabilized solution]), and Levoxyl(R)
(levothyroxine sodium tablets, USP). The OIG subpoena follows King's meetings
over the summer of 2003 with regulators and other governmental entities, at
which the company provided information regarding the findings of an internal
review conducted by the audit committee of King's board of directors (the
"Audit Committee") in response to the SEC's investigation of King initiated in
March 2003.
Jefferson J. Gregory, Chairman and Chief Executive Officer of King,
stated, "This subpoena is part of the ongoing process of meeting with and
providing information to the SEC, OIG and other governmental agencies. We
have been cooperating and will continue to cooperate in order to resolve these
matters as promptly as practicable."
As previously reported, the SEC initiated a formal investigation of King
in March 2003. In July 2003, King announced that an extensive internal review
conducted by the Audit Committee resulted in a determination that from 1998
through 2002 King underaccrued for estimated amounts due under Medicaid and
other governmental pricing programs by approximately $46.5 million. Based on
the results of the internal review, King recorded an adjustment of
$46.5 million to total revenues and accrued expenses in the fourth quarter of
2002.
The Audit Committee concluded, after weighing all the information
developed in the course of the internal review, that the underpayments
requiring the accrual adjustment did not arise from an effort on the part of
King's current or prior management to mislead investors by manipulating
reported financial results.
King, headquartered in Bristol, Tennessee, is a vertically integrated
branded pharmaceutical company. King, an S&P 500 Index company, seeks to
capitalize on opportunities in the pharmaceutical industry through the
development, including through in-licensing arrangements and acquisitions, of
novel branded prescription pharmaceutical products in attractive markets and
the strategic acquisition of branded products that can benefit from focused
promotion and marketing and product life-cycle management.
SOURCE King Pharmaceuticals, Inc.
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Related links:
http://www.kingpharm.com
CONTACT:
James E. Green, Executive Vice President,
Corporate Affairs of King Pharmaceuticals, Inc., +1-423-989-8125
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