The reason they have been quiet since 2008 is because most likely they are in R&D for new products or it's just a shelf corporation. They sold all of their assets for $61.6 million, including all ANDA related products, [i.e. their Effexor XR copy] to Amneal Pharmaceuticals. The company traded on the AMEX but the company was in default with Wells Fargo. To avoid bankruptcy or foreclosure by Wells Fargo, they sold everything, over 30 generic drugs down the drain, including their generic Effexor XR.
The Company will use the cash proceeds of the asset sale to (i) pay expenses incurred in connection with the asset sale (which are estimated to be $1 million) and (ii) satisfy in full all liabilities and indebtedness of the Company not assumed by the buyers (estimated to be $52.5 million), including a Success Fee of $500,000 and additional forbearance fees aggregating $275,000 payable to Wells Fargo which is payable under the Restated Forbearance Agreement if the asset sale is consummated.
The Majority Stockholders have entered into an Amended and Restated Proceeds Sharing Agreement dated as of May 1, 2008 (the “Proceeds Sharing Agreement”) which provides, among other things, that in the event that the holders of the Company’s Common Stock receive aggregate cash distributions from the Company or Amneal with respect to their shares of Common Stock of less than $3 million and the holders of Series D-1 Preferred (“D-1 Holders”) receive aggregate cash distributions from the Company or Amneal of at least $13 million with respect to their Series D-1 Preferred, each of the D-1 Holders agrees to share proceeds with all holders of Common Stock to the extent that proceeds to such D-1 Holders are in excess of $6.5 million, until all holders of Common Stock have received proceeds from the Company, Amneal and the D-1 Holders equal to an aggregate of $3 million.
The Company is not a party to, nor obligated under, the Proceeds Sharing Agreement to make any payments to the holders of any class or series of the Company’s capital stock other than as may be required under the terms of such capital stock.
