Medicis Amends Strategic Alliance With aaiPharma Inc. (AAII)
10/19/2005 5:12:35 PM
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Jan. 28, 2005--Medicis (NYSE:MRX) today announced that the Company has amended its strategic alliance with aaiPharma Inc. (Nasdaq:AAII) initiated in June 2002 for the development, commercialization and license of an undisclosed, dermatologic product. The consummation of the amendment has not affected the timing of the development project. The amendment allows for the immediate transfer of the project's management and development to Medicis, and provides that aaiPharma will continue to assist Medicis with the development of the product on a fee for service basis. Medicis will have no future financial obligations to pay aaiPharma based on the attainment of clinical milestones, but will incur approximately $9 million as a research and development expense during the current quarter as part of the amendment and the assumption of all liabilities associated with the project. Intellectual property rights and work product as defined under the agreements developed in connection with the project remain the sole property of Medicis. Other than the current quarter assumption of research and development expenses, this amendment will not impact the Company's financial guidance.