Andrx Completes Divestiture of Fortamet and Altoprev to First Horizon Pharmaceutical Corporation.FORT LAUDERDALE Fort Lauderdale (lô`dərdāl), residential, commercial, and resort city (1990 pop. 149,377), seat of Broward co., SE Fla., on the Atlantic coast; settled around a fort built (c.1837) in the Seminole War, inc. 1911. , Fla. -- Andrx Corporation (Nasdaq:ADRX ADRX Andrx Corporation (stock symbol) ) ("Andrx") today announced that it has completed its previously announced sale and licensing of certain rights and assets related to its Fortamet(R) and Altoprev(R) brand pharmaceutical products to First Horizon Pharmaceutical(R) Corporation ("First Horizon"). Andrx received $50 million for Fortamet at the closing. Andrx is entitled to receive up to $35 million in additional proceeds for Altoprev, once it achieves certain defined manufacturing service levels for this product set forth in the agreement. Andrx expects to receive $23.3 million of such amount in connection with the first such delivery scheduled for this week. Andrx will also receive royalties on net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight , as defined, of 8% on Fortamet and 15% on Altoprev. Thomas P. Rice, Andrx's Chief Executive Officer, said, "We are extremely pleased to complete this transaction with First Horizon and are confident that they are the right organization to optimize the value of the Fortamet and Altoprev products for the benefit of both our companies. Our future financial results will not be burdened by the significant operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. that we experienced in the brand business. This transaction will also better allow us to re-focus our efforts and resources on our core strengths of formulation development of generic controlled-release pharmaceuticals and distribution for the benefit of our shareholders." About Andrx Corporation: We are a pharmaceutical company that develops, manufactures and commercializes generic versions of controlled-release, niche and immediate-release pharmaceutical products, including oral contraceptives Oral Contraceptives Definition Oral contraceptives are medicines taken by mouth to help prevent pregnancy. They are also known as the Pill, OCs, or birth control pills. . We also distribute pharmaceuticals, primarily generics, which have been commercialized by others, as well as our own, primarily to independent pharmacies An independent pharmacy is a retail pharmacy that is not directly affiliated with any chain pharmacy, such as CVS/pharmacy, Walgreens or Eckerd. However, owners of independent pharmacies will often form alliances with other independents and use their power in numbers to bargain for , pharmacy chains, pharmacy buying groups and physicians' offices. Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. (statements which are not historical facts) in this release are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. For this purpose, any statements contained herein or which are otherwise made by or on behalf of the Company that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as "may," "will," "to," "plan," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or "continue" or the negative other variations thereof or comparable terminology are intended to identify forward-looking statements. Investors are cautioned that all forward-looking statements involve risk and uncertainties, including but not limited to, the Company's ability to meet the supply and manufacturing requirements of the First Horizon agreement, the Company's dependence on a relatively small number of products, licensing revenues, the timing and outcome of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and future product launches, government regulation, competition, and manufacturing results. Andrx Corporation is also subject to other risks detailed herein or detailed from time to time in its filings with the U.S. Securities and Exchange Commission. Andrx disclaims any responsibility to update the statements contained herein. This release and additional information about Andrx Corporation are also available on the Internet at: http://www.andrx.com. |
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