Apricus Biosciences Announces Ceasing of Financing of French Subsidiaries
Company to Focus Resources on Vitaros(R) and Femprox(R)
SAN DIEGO, March 14, 2013 (GLOBE NEWSWIRE) -- Apricus Biosciences, Inc. ("Apricus Bio" or the "Company") (Nasdaq:APRI) (www.apricusbio.com) today announced that it intends to cease financing its French subsidiaries, Finesco SAS, its French holding company, Scomedica SAS, its French sales company and NexMed Pharma SAS its marketing company. In line with its previously stated corporate strategy, the Company will continue to focus its resources on commercializing its lead product Vitaros® (alprostadil 0.3% topical cream), for the treatment of erectile dysfunction ("ED"), and on further developing through clinical trials it lead product candidate, Femprox® (alprostadil 0.4% topical cream), for the treatment of female sexual arousal disorder ("FSAD").
The strategic decision to cease financing its French subsidiaries follows a decrease in the unit's operating performance resulting from recently enacted pricing policies affecting drug reimbursement in France and the subsequent, related loss or interruption of certain contract sales agreements. Given these events, the Company re-assessed the fair value of the reporting unit of the French subsidiaries and as a result of that assessment, the Company recorded one-time, non-cash, impairment charges totaling approximately $8.8 million in the fourth quarter of 2012.
"After performing an in depth cost-benefit analysis and evaluating strategic options, the Board of Directors has determined that it is in the best interest of the Company and its shareholders to cease financing the Company's French subsidiaries," said Rusty Ray, Chairman of the Board of Apricus Bio. "While they were acquired in mid-2012, changes since that time in the French drug reimbursement environment strongly favoring generic pharmaceuticals have led to an unforeseen loss of contract revenue and a substantial reduction in the unit's value potential. The Board continues to believe that the greatest opportunity for shareholder value creation remains in the development and commercialization, through strategic partnerships, of the Company's primary pipeline assets, particularly Vitaros® and Femprox® for male and female sexual health. We continue to look forward to what we hope to be a successful launch of Vitaros® in Canada by Abbott in the first half of this year, as well as, an approval decision by the Referenced Member State for Vitaros® in Europe in this same time period."
About Apricus Biosciences, Inc.
Apricus Biosciences, Inc. is a pharmaceutical company that develops and markets innovative treatments that help large patient populations across numerous, large-market therapeutic classes including male and female sexual health. Apricus Bio is headquartered in San Diego, California and is publicly traded on the NASDAQ Capital Market under the ticker symbol APRI.
For further information on Apricus Bio, visit http://www.apricusbio.com, and for information on its subsidiary please visit http://www.nexmedusa.com. You can also receive information at http://twitter.com/apricusbio.
Apricus Bio's Forward-Looking Statement Safe Harbor
Statements under the Private Securities Litigation Reform Act, as amended: with the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risks and uncertainties that may individually or mutually impact the matters herein described for a variety of reasons that are outside the control of the Company, including, but not limited to: the ability for the Company's French subsidiaries to reorganize, liquidate or find strategic alternatives, Apricus Bio's ability to achieve its development, commercialization and financial goals, its ability to further develop its products and product candidates, the timing for approval decisions regarding Vitaros® in Europe and other markets, as well as the ultimate outcome of these decisions, the timing and success of the commercial launch of Vitaros® in Canada, and its ability to successfully develop Femprox®. Readers are cautioned not to place undue reliance on these forward-looking statements as actual results could differ materially from the forward-looking statements contained herein. Readers are urged to read the risk factors set forth in the Company's most recent annual report on Form 10-K, subsequent quarterly reports filed on Form 10-Q and other filings made with the SEC. Copies of these reports are available from the SEC's website or without charge from the Company.
CONTACT: Apricus Bio Investor Relations: David Pitts or Lourdes Catala Argot Partners 212-600-1902 firstname.lastname@example.org email@example.com