AaiPharma announces job cuts, higher net income (125 jobs)

[UpInArms]

http://triangle.bizjournals.com/triangle/stories/2004/08/09/daily11.html?jst=b_ln_hl

Troubled pharmaceutical company aaiPharma said in a securities filing Monday that it has cut about 10 percent of its work force, or 125 jobs, as the company copes with federal investigations into previously announced sales. Wilmington- based aaiPharma also said it planned to shutter its New Jersey plant in August.

For the quarter ended June 30, aaiPharma (NASDAQ: AAII) said net income rose to $7.2 million or 25 cents per share, compared to $3.49 million in the same quarter last year. Income rose due to a gain from the sale of two lines of drugs, M.V.I. and Aquasol.

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The company attributed declining revenue to the Darvon, Darvocet and Brethine drug lines. AaiPharma said sales were declining because "pre-existing amounts of these products" were already in the distribution channel. Also, generic competition for the company's Brethine product hurt sales.

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