PHARMACEUTICAL RESOURCES, INC. ANNOUNCES SETTLEMENT OF LAWSUIT WITH MYLAN LABORATORIES, INC.
SPRING VALLEY, N.Y., Nov. 29 /PRNewswire/ -- Pharmaceutical Resources, Inc. (NYSE: PRX) announced today that it reached a settlement agreement with Mylan Laboratories, Inc. ("Mylan") with respect to the lawsuit brought in 1989 by Mylan against Par Pharmaceutical, Inc. ("Par"), now a subsidiary of Pharmaceutical Resources, Quad Pharmaceutical, Inc. and others. Under the settlement agreement, Pharmaceutical Resources agreed to pay Mylan the sum of $1 million in cash and will issue approximately $2 million of Pharmaceutical Resources common stock. The lawsuit had sought damages of $200 million and treble damages. Pharmaceutical Resources plans to reflect the settlement in its financial statements for the fiscal year ended Oct. 2, 1993, by taking a separate charge on the Profit and Loss Statement of "Settlement of Legal Proceedings" in the amount of approximately $3 million. Kenneth I. Sawyer, president and chief executive officer of Pharmaceutical Resources, stated, "The successful resolution of this case will allow us to devote our energies and resources to operating the company. This lawsuit stemmed from actions occurring during the tenure of prior management at Par who are no longer associated with the company." Mr. Sawyer continued, "We are hopeful that the end of this litigation will enable all of us involved to work more closely to strengthen our industry which is so critical to providing affordable prescription drugs to consumers." Pharmaceutical Resources, Inc. is a holding company with subsidiaries that develop, manufacture and market a broad line of generic drugs. -0- 11/29/93 /CONTACT: June Filingeri or Lisa Carlton of Morgen-Walke Associates, 212-850-5600/ (PRX)
CO: Pharmaceutical Resources, Inc.; Mylan Laboratories, Inc. ST: New York IN: MTC SU:
GK -- NY014 -- 8116 11/29/93 08:11 EST