|First Horizon Comments On Securities Suit|
Alpharetta, GA, August 30, 2002 – First Horizon Pharmaceutical Corporation (NASDAQ: FHRX), a specialty pharmaceutical company, today announced that it intends to vigorously defend itself against a securities class action lawsuit recently filed against the Company. The lawsuit alleges violations of securities laws by the Company and other named defendants. The Company stated that it denies the allegations in the lawsuit.
Mahendra G. Shah, Ph.D., Chairman, President and Chief Executive Officer commented, “This lawsuit apparently is the result of the price decline in our shares following our July 2, 2002 press release. This is typical of what often happens to public companies which experience a significant decline in share price. We deny the claims in the suit and intend to vigorously defend against the litigation. More importantly, we will remain focused on executing our business plan and conducting our business in the best interest of our shareholders.”
The suit, filed in the District Court for the Northern District of Georgia, alleges that the Company and other defendants failed to timely disclose information about the previously reported erosion in sales of Company's Tanafed Suspension and Prenate GT products.
First Horizon Background
First Horizon Pharmaceutical Corporation is a specialty pharmaceutical company which markets prescription products across four therapeutic areas including cardiology, obstetrics and gynecology, pediatrics and gastroenterology. With seven key prescription and 17 branded products on the market, the Company promotes its products through its nationwide sales and marketing force targeting high-prescribing physicians. First Horizon employs over 200 people and reported revenue of $69 million in 2001.
Safe Harbor--This press release contains statements which constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to in such statements. In evaluating all forward-looking statements, you should specifically consider various factors that could cause actual results to vary from those contained in the forward-looking statements. Risks affecting the Company are identified in the Company's Prospectus dated April 19, 2002 previously filed with the Securities and Exchange Commission in the “Risk Factors” section.