BRIDGEWATER, N.J., Dec. 19, 2017 /PRNewswire/ -- Impax
Laboratories, Inc. (NASDAQ: IPXL) today announced that
it has entered into a definitive agreement to sell its
manufacturing facility in Taiwan
("Impax Taiwan") to Bora Pharmaceuticals Co, Ltd. ("Bora"). This
sale supports Impax's operational and cost improvement plans to
streamline operations and reduce costs.
Under the terms of the agreement, Bora will purchase all of the
issued share capital in Impax Taiwan and certain loans outstanding
between Impax and Impax Taiwan for a total purchase price of
$18.5 million. As a result of the
sale, Impax expects to record a pre-tax impairment charge of
approximately $70.0 to $80.0 million in the fourth quarter of this
year.
"This agreement accelerates the benefits we expect to receive as
part of our cost improvement program and allows us to achieve a
full run rate of cost savings across all program initiatives by the
end of 2018, one year ahead of schedule," said Paul Bisaro, President and CEO of Impax. "I am
also pleased that the agreement may provide continued employment
opportunities for our colleagues in Taiwan. I want to thank employees for their
commitment to preparing a successful transition."
Impax has also signed a supply agreement with Bora, effective
upon closing of the transaction, to contract the manufacture and
supply of certain of Impax's marketed and development products
currently manufactured by Impax Taiwan. Additionally, Bora will
have the rights to market and sell Impax's branded Parkinson's drug
Rytary® (approved as Numient® outside the U.S.) in Taiwan. The transaction is anticipated to
close in the first quarter of 2018, subject to customary closing
conditions.
"I am confident that this transaction creates value for both
companies," continued Bisaro. "Through this agreement, Impax gains
a high-quality contract manufacturing partner with expertise in
manufacturing for multinational pharmaceutical companies. The deal
also aligns nicely with Bora's international growth and expansion
plans."
About Impax Laboratories, Inc.
Impax Laboratories,
Inc. (Impax) is a 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 central nervous system disorder
branded products. Impax markets its generic products through its
Impax Generics division and markets its branded products through
the Impax Specialty Pharma division. Additionally, where
strategically appropriate, Impax develops marketing partnerships to
fully leverage its technology platform and pursues partnership
opportunities that offer alternative dosage form technologies, such
as injectables, nasal sprays, inhalers, patches, creams, and
ointments. For more information, please visit Impax's Web site at:
www.impaxlabs.com.
About Bora
Bora Pharmaceuticals is a publicly traded,
Taiwan based, pharmaceutical
company that covers the entire pharmaceutical value chain from
research and development to marketing and sales. Bora has a solid
financial foundation, experienced management team, and long
standing partnerships with best in class multinationals such as
Eisai, Lundbeck, and Boehringer Ingelheim. Bora, and its
subsidiaries produce, market, and sell products ranging from
Generics, Consumer Health, and In-Patent Branded Drugs. In
addition, Bora Pharmaceuticals' PIC/S GMP certified plant provides
outsource R&D and contract manufacturing services to over 15
countries worldwide.
"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: fluctuations in Impax's operating
results and financial condition; the volatility of the market price
of Impax's common stock; Impax's ability to successfully develop
and commercialize pharmaceutical products in a timely manner; the
impact of competition; the effect of any manufacturing or quality
control problems; Impax's ability to manage its growth; risks
related to acquisitions of or investments in technologies, products
or businesses; the risks related to the sale or closure of our
Taiwan manufacturing facility;
effects from fluctuations in currency exchange rates between the
U.S. dollar and the Taiwan dollar;
risks relating to goodwill and intangibles; the reduction or loss
of business with any significant customer; the substantial portion
of Impax's total revenues derived from sales of a limited number of
products; the impact of consolidation of Impax's customer base;
Impax's ability to sustain profitability and positive cash flows;
the impact of any valuation allowance on Impax's deferred tax
assets; the restrictions imposed by Impax's credit facility and
indenture; Impax's level of indebtedness and liabilities and the
potential impact on cash flow available for operations; the
availability of additional funds in the future; any delays or
unanticipated expenses in connection with the operation of Impax's
manufacturing facilities; the effect of foreign economic,
political, legal and other risks on Impax's operations abroad; the
uncertainty of patent litigation and other legal proceedings; the
increased government scrutiny on Impax's agreements to settle
patent litigations, product development risks and the difficulty of
predicting FDA filings and approvals; consumer acceptance and
demand for new pharmaceutical products; the impact of market
perceptions of the Company and the safety and quality of Impax's
products; Impax's determinations to discontinue the manufacture and
distribution of certain products; Impax's ability to achieve
returns on its investments in research and development activities;
changes to FDA approval requirements; Impax's ability to
successfully conduct clinical trials; Impax's reliance on third
parties to conduct clinical trials and testing; Impax's lack of a
license partner for commercialization of Numient® (IPX066) outside
of the United States; impact of
illegal distribution and sale by third parties of counterfeits or
stolen products; the availability of raw materials and impact of
interruptions in Impax's supply chain; Impax's policies regarding
returns, rebates, allowances and chargebacks; the use of controlled
substances in Impax's products; the effect of current economic
conditions on Impax's industry, business, results of operations and
financial condition; disruptions or failures in Impax's information
technology systems and network infrastructure caused by third party
breaches or other events; Impax's reliance on alliance and
collaboration agreements; Impax's reliance on licenses to
proprietary technologies; Impax's dependence on certain employees;
Impax's ability to comply with legal and regulatory requirements
governing the healthcare industry; the regulatory environment; the
effect of certain provisions in Impax's government contracts;
Impax's ability to protect its intellectual property; exposure to
product liability claims; changes in tax regulations; uncertainties
involved in the preparation of Impax's financial statements;
Impax's ability to maintain an effective system of internal control
over financial reporting; the effect of terrorist attacks on
Impax's business; the location of Impax's manufacturing and
research and development facilities near earthquake fault lines;
expansion of social media platforms and other risks described in
Impax's periodic reports filed with the Securities and Exchange
Commission. Forward-looking statements speak only as to the
date on which they are made, and the Company undertakes no
obligation to update publicly or revise any forward-looking
statement, regardless of whether new information becomes available,
future developments occur or otherwise.
Company
Contact:
Mark Donohue
Investor Relations and Corporate
Communications
(215)
558-4526
www.impaxlabs.com
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SOURCE Impax Laboratories, Inc.