[GRAPHIC OMITTED] IMPAX
LABORATORIES, INC.
COMPANY CONTACTS: INVESTOR RELATIONS CONTACTS:
IMPAX Laboratories, Inc. Lippert/Heilshorn & Associates, Inc.
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Barry R. Edwards, CEO Kim Sutton Golodetz (kgolodetz@lhai.com)
(215) 933-0323 Ext. 4360 (212) 838-3777
Larry Hsu, Ph.D., President Bruce Voss (bvoss@lhai.com)
(510) 476-2000 Ext. 1111 (310) 691-7100
www.impaxlabs.com www.lhai.com
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IMPAX PROVIDES UPDATES ON PROGRESS TO FILE 10-K AND RELATED MATTERS
HAYWARD, CALIF. (MAY 4, 2005) - IMPAX LABORATORIES, INC. (NASDAQ NM: IPXLE)
today reported steps taken to complete its financial closing and file its Annual
Report on Form 10-K for the year ended December 31, 2004. The Company, in
consultation with its auditor, decided to approach the Office of the Chief
Accountant of the Securities and Exchange Commission ("SEC") to discuss the
Company's accounting for its transactions under its Strategic Alliance Agreement
with a subsidiary of Teva Pharmaceutical Industries Ltd. ("Teva") prior to
filing its 2004 Annual Report on Form 10-K. The Company is presently preparing
its submission.
As previously announced, the Company and Teva have agreed to the net sales and
margin allocable to Impax for 2004 and have also agreed not to make any further
adjustments to such agreed amounts. The Company refers to this agreement as the
2004 Close-Out Letter. Additionally, the Company and Teva have entered into an
amendment to the Strategic Alliance Agreement whereby, effective January 1,
2005, certain sales deductions that were previously required to be estimated
have been replaced by fixed percentages thereby simplifying the accounting under
the agreement. Both the 2004 Close-Out Letter and the amendment were completed
in March 2005.
Until the Company completes and files its 2004 Annual Report on Form 10-K, it
will not be able to file its Quarterly Report on Form 10-Q for the quarter ended
March 31, 2005.
In related matters, also previously reported, on April 5, 2005, Impax received a
Nasdaq Staff determination letter indicating that Impax failed to comply with
the requirement for continued listing set forth in Nasdaq Marketplace Rule
4310(c)(14) because Impax failed to file its 2004 Annual Report on Form 10-K
with Nasdaq and, therefore, Impax's common stock is subject to delisting from
The Nasdaq Stock Market. A hearing has been scheduled before a Nasdaq Listing
Qualifications Panel on May 19, 2005 to review the Staff's determination,
although there can be no assurance that the Panel will grant Impax's request for
continued listing pending its filing of its Annual Report. In the event that
Impax's common stock is delisted from Nasdaq and is not otherwise approved for
trading on any United States national securities exchange, it will constitute a
"designated event" under the Indenture governing the Company's $95 million
principal amount of 1.250% Convertible Senior Subordinated Debentures due 2024
(the "Debentures"), giving each Debenture holder the option to require the
Company to redeem the holder's Debentures at 100% of their principal amount,
together with accrued and unpaid interest.
In addition, Impax received a notice, dated April 22, 2005, from a holder of
more than 25% aggregate principal amount of the Debentures stating that the
Company failed to file its Annual Report on Form 10-K for the year ended
December 31, 2004 with the SEC as required by the governing Indenture and
requiring that the Company remedy such default forthwith. Under the Indenture,
if the Company fails to file the Annual Report within 60 days after the date of
the notice, it will constitute an "event of default" under the Indenture and
thereafter either the Trustee or the holders of 25% in aggregate principal
amount of the Debentures then outstanding, by notice to the Company, may declare
the principal of and premium, if any, on all the Debentures then outstanding and
the interest accrued thereon to be due and payable immediately.
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 Impax's delay in
filing its 2004 Form 10-K including possible delisting from the NASDAQ National
Market, 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.
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