Impax Announces Sale of Taiwan Manufacturing Facility

Impax Laboratories, Inc. (NASDAQ: IPXL) today announced that it has entered into a definitive agreement to sell its manufacturing facility in Taiwan ("Impax Taiwan") to Bora Pharmaceuticals Co, Ltd. ("Bora"). This sale supports Impax's operational and cost improvement plans to streamline operations and reduce costs.

Under the terms of the agreement, Bora will purchase all of the issued share capital in Impax Taiwan and certain loans outstanding between Impax and Impax Taiwan for a total purchase price of $18.5 million. As a result of the sale, Impax expects to record a pre-tax impairment charge of approximately $70.0 to $80.0 million in the fourth quarter of this year.
"This agreement accelerates the benefits we expect to receive as part of our cost improvement program and allows us to achieve a full run rate of cost savings across all program initiatives by the end of 2018, one year ahead of schedule," said Paul Bisaro, President and CEO of Impax. "I am also pleased that the agreement may provide continued employment opportunities for our colleagues in Taiwan. I want to thank employees for their commitment to preparing a successful transition."

Impax has also signed a supply agreement with Bora, effective upon closing of the transaction, to contract the manufacture and supply of certain of Impax's marketed and development products currently manufactured by Impax Taiwan. Additionally, Bora will have the rights to market and sell Impax's branded Parkinson's drug Rytary® (approved as Numient® outside the U.S.) in Taiwan. The transaction is anticipated to close in the first quarter of 2018, subject to customary closing conditions.

"I am confident that this transaction creates value for both companies," continued Bisaro. "Through this agreement, Impax gains a high-quality contract manufacturing partner with expertise in manufacturing for multinational pharmaceutical companies. The deal also aligns nicely with Bora's international growth and expansion plans."

About Impax Laboratories, Inc. 
Impax Laboratories, Inc. (Impax) is a specialty pharmaceutical company applying its formulation expertise and drug delivery technology to the development of controlled-release and specialty generics in addition to the development of central nervous system disorder branded products. Impax markets its generic products through its Impax Generics division and markets its branded products through the Impax Specialty Pharma division. Additionally, where strategically appropriate, Impax develops marketing partnerships to fully leverage its technology platform and pursues partnership opportunities that offer alternative dosage form technologies, such as injectables, nasal sprays, inhalers, patches, creams, and ointments. 

About Bora
Bora Pharmaceuticals is a publicly traded, Taiwan based, pharmaceutical company that covers the entire pharmaceutical value chain from research and development to marketing and sales. Bora has a solid financial foundation, experienced management team, and long standing partnerships with best in class multinationals such as Eisai, Lundbeck, and Boehringer Ingelheim.  Bora, and its subsidiaries produce, market, and sell products ranging from Generics, Consumer Health, and In-Patent Branded Drugs.  In addition, Bora Pharmaceuticals' PIC/S GMP certified plant provides outsource R&D and contract manufacturing services to over 15 countries worldwide.

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