RALEIGH, N.C.--(BUSINESS WIRE)--March 30, 2004--PharmaNetics, Inc. (NASDAQ-SmallCap: PHAR), a leader in theranostic management specializing in managing the delivery of therapeutics affecting coagulation, today provided an update to the Company's legal action against Aventis Pharmaceuticals, Inc., the wholly owned subsidiary of French pharmaceutical company, Aventis. The Company also announced that it will file with the Securities and Exchange Commission for an extension of the deadline for filing its 2003 Annual Report on Form 10-K. As part of its year-end audit, the Company is finalizing necessary reviews of its financial statements, including analysis involving the value of its long-lived assets. The Company expects to file its Form 10-K on or before April 14, 2004.
The Company's lawsuit against Aventis Pharmaceuticals alleges that Aventis breached its contractual obligations to co-market and co-label PharmaNetics' rapid bedside test for monitoring Lovenox(R) (enoxaparin sodium) in certain cardiology indications. As part of the suit, an injunctive hearing was held in New Bern, North Carolina, in federal court from March 22-24. Legal briefs on the case are due April 9, 2004, and a decision is expected before the end of April.
The Company is presently conserving cash and winding down its operations in preparation for the sale of its intellectual property and residual assets. As previously noted, Davenport & Company, has been hired to review the Company's strategic alternatives. As part of this process, the Company has decided to license or sell its intellectual property to a company potentially capable of selling the coagulation tests as part of a critical care test menu.
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 has developed, manufactured and marketed rapid turnaround diagnostics to assess blood clot formation and dissolution. PharmaNetics tests are 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.
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. John P. Funkhouser, or Paul T. Storey, 919-582-2600