Barr's PLIVA Subsidiary to Terminate GDR Deposit Agreement and Delist From London Stock Exchange
MONTVALE, N.J., March 18, 2008 /PRNewswire-FirstCall/ -- Barr Pharmaceuticals, Inc. , today confirmed that its subsidiary, PLIVA d.d. , sent Notice to Deutsche Bank, acting as PLIVA's GDR Depositary, on termination of PLIVA's GDR Deposit Agreement (the "Deposit Agreement") effective June 19, 2008 ("Termination Date"). Once the Deposit Agreement has been terminated, PLIVA will seek to delist from the London Stock Exchange ("LSE"), a process that it anticipates will conclude on or before July 21, 2008. Until the Termination Date, holders of GDRs can either obtain ordinary shares relative to each GDR they currently hold, or sell the GDRs in the open market. The ordinary shares of PLIVA d.d. will continue to be listed on the Zagreb Stock Exchange.
"Given the relative lack of liquidity in PLIVA GDRs on the London Stock Exchange, due to Barr's ownership of approximately 98% of PLIVA shares, we believe that delisting PLIVA from the LSE is appropriate at this time," said Bruce L. Downey Barr's Chairman and CEO.
In addition, Downey confirmed that Barr does not anticipate initiating a squeeze-out of remaining PLIVA shares: "Due to the commitment of resources required to complete the squeeze out, we believe we can better invest management time and corporate resources in completing the integration of PLIVA's operations into Barr and focusing on business growth in key world markets."
On October 24, 2006, Barr finalized the legal and regulatory requirements to acquire PLIVA.
About Barr Pharmaceuticals, Inc.
Barr Pharmaceuticals, Inc. is a global specialty pharmaceutical company that operates in more than 30 countries worldwide and is engaged in the development, manufacture and marketing of generic and proprietary pharmaceuticals, biopharmaceuticals and active pharmaceutical ingredients. A holding company, Barr operates through its principal subsidiaries: Barr Laboratories, Inc., Duramed Pharmaceuticals, Inc. and PLIVA d.d. and its subsidiaries. The Barr Group of companies markets more than 120 generic and 26 proprietary products in the U.S. and approximately 1,025 products globally outside of the U.S. For more information, visit www.barrlabs.com.
Except for the historical information contained herein, the statements made in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by their use of words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates" and other words of similar meaning. Because such statements inherently involve risks and uncertainties that cannot be predicted or quantified, actual results may differ materially from those expressed or implied by such forward-looking statements depending upon a number of factors affecting the Company's business. These factors include, among others: the difficulty in predicting the timing and outcome of legal proceedings, including patent-related matters such as patent challenge settlements and patent infringement cases; the outcome of litigation arising from challenging the validity or non- infringement of patents covering our products; the difficulty of predicting the timing of FDA approvals; court and FDA decisions on exclusivity periods; the ability of competitors to extend exclusivity periods for their products; our ability to complete product development activities in the timeframes and for the costs we expect; market and customer acceptance and demand for our pharmaceutical products; our dependence on revenues from significant customers; reimbursement policies of third party payors; our dependence on revenues from significant products; the use of estimates in the preparation of our financial statements; the impact of competitive products and pricing on products, including the launch of authorized generics; the ability to launch new products in the timeframes we expect; the availability of raw materials; the availability of any product we purchase and sell as a distributor; the regulatory environment in the markets where we operate; our exposure to product liability and other lawsuits and contingencies; the increasing cost of insurance and the availability of product liability insurance coverage; our timely and successful completion of strategic initiatives, including integrating companies (such as PLIVA d.d.) and products we acquire and implementing our new SAP enterprise resource planning system; fluctuations in operating results, including the effects on such results from spending for research and development, sales and marketing activities and patent challenge activities; the inherent uncertainty associated with financial projections; our expansion into international markets through our PLIVA acquisition, and the resulting currency, governmental, regulatory and other risks involved with international operations; our ability to service our significantly increased debt obligations as a result of the PLIVA acquisition; changes in generally accepted accounting principles; and other risks detailed in our SEC filings, including in our Transition Report on Form 10-K/T for the six months ended December 31, 2006.
The forward-looking statements contained in this press release speak only as of the date the statement was made. The Company undertakes no obligation (nor does it intend) to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required under applicable law.
CONTACT: Carol A. Cox of Barr Pharmaceuticals, Inc., +1-201-930-3720 or firstname.lastname@example.org
Web site: http://www.barrlabs.com/
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Ticker Symbol: (NYSE:BRL)
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Posted: March 2008