CAMBRIDGE, Mass., March 13 /PRNewswire-FirstCall/ -- Biopure Corporation today reported that it has reached an agreement in principle with the staff of the Securities and Exchange Commission (SEC) to settle previously disclosed litigation, filed in September 2005, concerning disclosures the company made in 2003. The proposed settlement is subject to final approval by the SEC and the court in which the complaint was filed. The company cannot assure that the SEC or the court will approve the proposed settlement.
As part of the proposed settlement, Biopure would consent, without admitting or denying the allegations in the complaint, to an injunction against future violations of federal securities laws and regulations. No payments would be required of the company under the proposed settlement. In addition, the company would agree to retain an independent consultant to review and make recommendations about the company’s disclosure procedures.
A proposed settlement was also reached with the company’s general counsel. If approved by the SEC, this agreement would involve a dismissal by the SEC of all intent-based allegations in the complaint a consent, without admitting or denying any allegations, against violations of certain non intent-based provisions, and a civil penalty. Neither proposed settlement would affect the general counsel’s employment or officer status.
The SEC staff has indicated that it will agree to a motion for a continuance of all current court ordered deadlines until the SEC has acted on the proposals.
Biopure Corporation develops, manufactures and markets pharmaceuticals, called oxygen therapeutics, that are intravenously administered to deliver oxygen to the body’s tissues.
Statements in this press release that are not strictly historical are forward-looking statements, including any that might imply that the Securities and Exchange Commission will approve the proposed settlement of the civil injunctive proceeding filed on September 14, 2005. Actual results may differ materially from those projected in these forward-looking statements due to risks and uncertainties. These risks include, without limitation, uncertainties regarding the company’s financial position, unexpected costs and expenses, delays and determinations by regulatory authorities, unanticipated problems with the product’s commercial use, whether or not product related, and with product distributors, sales agents or other third parties, and delays in or unpredictable outcomes of clinical trials. The company undertakes no obligation to release publicly the results of any revisions to these forward- looking statements to reflect events or circumstances arising after the date hereof. A full discussion of the company’s operations and financial condition can be found in the company’s filings with the U.S. Securities and Exchange Commission, including under the heading “Risk Factors” in the Form 10-K filed on January 17, 2006, which can be accessed in the EDGAR database at the SEC Web site, http://www.sec.gov.
Contact: Douglas Sayles Herb Lanzet (Investors) Biopure Corporation H.L. Lanzet Inc. (617) 234-6826 (212) 888-4570 IR@biopure.comlanzet@aol.com
Biopure Corporation
CONTACT: Douglas Sayles of Biopure Corporation, +1-617-234-6826,IR@biopure.com; or Herb Lanzet of H.L. Lanzet Inc., +1-212-888-4570,lanzet@aol.com
Web site: http://www.biopure.com//
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