RALEIGH, N.C.--(BUSINESS WIRE)--Jan. 16, 2004--PharmaNetics, Inc. (NASDAQ-SCM: PHAR), a leader in theranostic management specializing in managing the delivery of therapeutics affecting coagulation, today announced that the Company engaged Davenport & Company LLC ("Davenport"), an investment banking firm, as its financial advisor to assist the Company in pursuing a potential sale of its manufacturing operations and routine test business as well as review other strategic alternatives.
In connection with this development, John P. Funkhouser, president and chief executive officer, stated, "As previously announced, our goal is to evaluate strategic opportunities that will enable the Company to reduce overhead, preserve cash and keep its technology and manufacturing capability intact, while pursuing its claims against Aventis. In addition, the Company's Board of Directors intends to carefully evaluate any strategic opportunity that can maximize shareholder value."
PharmaNetics, Inc., a leading biotech company, conceived the term "theranostics," defining an emerging field of medicine that enables physicians to monitor the effect of antithrombotic agents in patients being treated for angina, myocardial infarction (heart attack), stroke, and pulmonary and arterial emboli. The Company develops, manufactures and markets rapid turnaround diagnostics to assess blood clot formation and dissolution. PharmaNetics develops tests based on its proprietary, dry chemistry Thrombolytic Assessment System. Its principal target market is the management of powerful new drug compounds, some of which may have narrow therapeutic ranges, as well as monitoring routine anticoagulants.
Davenport is an investment banking firm based in Richmond, Virginia. Davenport previously assisted the Company with a private placement of convertible preferred stock that was completed in February 2000.
This press release contains forward-looking statements regarding future events and the future performance of PharmaNetics that involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. These risks and uncertainties include risks related to market acceptance, clinical trials and dependence on third party distributors and collaborative partners, including, in particular with regard to the legal proceedings commenced against its development partner, Aventis Pharmaceuticals, which action includes without limitation the following specific risks: material monetary costs associated with the litigation, even if successful; uncertainty of obtaining a favorable outcome; the potentially significant harm to PharmaNetics' business and financial condition and prospects if it is not successful in timely prosecuting the litigation; jeopardizing strategic relationships with other existing or potential collaborative partners; harmful delays in meeting sales objectives, even if the litigation is successful; and disruption of management time and resources to pursue the litigation. Information concerning these and other of the factors that could cause results to differ materially from those in the forward-looking statements is contained in the Company's filings with the Securities and Exchange Commission, including Form 10-K, Form 10-Q and Form 8-K reports.
PharmaNetics Inc., Raleigh John P. Funkhouser or Paul T. Storey, 919-582-2600
Source: PharmaNetics, Inc.