Medicis to restate financial results
This article was originally published in Scrip
Medicis Pharmaceuticalshas suspended its financial guidance for the rest of the year and has said that its financial statements for the annual, transition and quarterly periods from 2003 will probably need to be restated. The restatement has been caused by necessary modifications in the company's interpretation of the generally accepted accounting principles relating to sales return reserve calculations, Medicis says. Although it said that the restatement was not expected to affect its cash flow or cash balance for any of the affected periods, the company's share price plunged by nearly 16% on September 24th. Sales of Medicis's lead product Solodyn (minocycline HCl) have been hit by the weak US economy and the product will soon face generic competition.