CONTACT:
Investor Relations & Corporate Communications, (602) 808-3854
MEDICIS ANNOUNCES INITIAL RESULTS OF EXCHANGE OFFER
SCOTTSDALE, Arizona--August 13, 2003--Medicis (NYSE: MRX) today announced that
the exchange offer for its new 1.5% Contingent Convertible Senior Notes due
2033, or New Notes, expired today at 5:00 p.m., New York City time.
Approximately $230 million in aggregate principal amount of its $400 million
2.5% Contingent Convertible Senior Notes due 2032, or Old Notes, have been
tendered in the exchange offer for the New Notes. The exact amount that was
tendered is subject to final verification and will be announced after the
closing. Each $1,000 in principal amount of Old Notes tendered will be exchanged
for $1,230 in principal amount of New Notes.
In accordance with the terms of the exchange offer, the closing of the exchange
offer will be completed on Monday, August 18, 2003, whereby the company will
issue a press release including the final value of Old Notes tendered and
accepted, the financial impact of the offering and its effect on fiscal 2004
guidance.
The exchange offer was made pursuant to a registration statement, tender offer
statement and other related documents which more fully set forth the terms of
the exchange offer and the New Notes. Deutsche Bank Securities and Thomas Weisel
Partners LLC are acting as co-dealer managers for the exchange offer.
Medicis is the leading independent specialty pharmaceutical company in the
United States focusing primarily on the treatment of dermatological, pediatric
and podiatric conditions. Medicis has leading prescription products in a number
of therapeutic categories, including acne, asthma, eczema, fungal infections,
hyperpigmentation, photoaging, psoriasis, rosacea, seborrheic dermatitis and
skin and skin-structure infections. The Company's products have earned wide
acceptance by both physicians and patients due to their clinical effectiveness,
high quality and cosmetic elegance.
The Company's products include the prescription brands DYNACIN(R) (minocycline
HCl), LOPROX(R) (ciclopirox), LUSTRA(R) (hydroquinone), LUSTRA-AF(R)
(hydroquinone) with sunscreen, ALUSTRA(R) (hydroquinone) with retinol,
OMNICEF(R) (cefdinir), ORAPRED(R) (prednisolone sodium phosphate), PLEXION(R)
Cleanser (sodium sulfacetamide/sulfur), PLEXION TS(R) (sodium
sulfacetamide/sulfur), PLEXION SCT(R) (sodium sulfacetamide/sulfur), TRIAZ(R)
(benzoyl peroxide), LIDEX(R) (fluocinonide), and SYNALAR(R) (fluocinolone
acetonide), the over-the-counter brand ESOTERICA(R), and BUPHENYL(R) (sodium
phenylbutyrate), a prescription product indicated in the treatment of Urea Cycle
Disorder. For more information about Medicis, please visit the Company's website
at www.medicis.com.
Except for historical information, this press release includes "forward-looking
statements" within the meaning of the Securities Litigation Reform Act. All
statements included in this press release that address activities, events or
developments that Medicis expects, believes or anticipates will or may occur in
the future are forward-looking statements. This includes earnings estimates,
future financial performance and other matters. These statements are based on
certain assumptions made by Medicis based on its experience and perception of
historical trends, current conditions, expected future developments and other
factors it believes are appropriate in the circumstances. Medicis cannot
validate its assumptions of the full impact on its business of the approval of
competitive generic versions of its core brands, or any future competitive
product approvals that may affect its brands. Such statements are subject to a
number of assumptions, risks and uncertainties, many of which are beyond the
control of Medicis. Any such projections or statements include the current views
of Medicis with respect to future events and financial performance. No
assurances can be given, however, that these events will occur, that such
results will be achieved, that Medicis will continue to have the ability to pay
any dividend, or that tax rates on cash dividends will not change. Also, there
are a number of important factors that could cause actual results to differ
materially from those projected, including the anticipated size of the markets,
the availability of product supply of DYNACIN(R) Tablets, the receipt of
required regulatory approvals, the ability to realize anticipated synergies and
benefits of the Q-Med transaction, the risks and uncertainties normally incident
to the pharmaceutical industry, dependence on sales of key products, the
uncertainty of future financial results and fluctuations in operating results,
dependence on Medicis' strategy including the uncertainty of license payments
and/or other payments due from third parties, the timing and success of new
product development by Medicis or third parties, product introductions and other
risks described from time to time in Medicis' SEC filings including its Annual
Report on Form 10-K for the year ended June 30, 2002. There can be no assurance
as to when or if any of the holders of the Notes will have the right to convert
or if the Notes will be converted, and what impact the increase in the number of
shares outstanding will have on its results of operations. Forward-looking
statements represent the judgment of Medicis' management as of the date of this
release, and Medicis disclaims any intent or obligation to update any
forward-looking statements.
NOTE: Full prescribing information for any Medicis prescription product is
available by contacting the Company. OMNICEF(R) is a registered trademark of
Abbott Laboratories, Inc. under a license from Fujisawa Pharmaceutical Co., Ltd.
All other marks (or brands) and names are the property of Medicis or its
Affiliates.
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