PRINCETON, N.J. (AFX) - Biopharmaceutical company Medarex Inc. said Friday it will restate financial results from the year 2000 through the first quarter of 2006 after an internal probe found discrepancies in its timing of stock option grants.
The company said it should have recorded additional non-cash expense that would have been material to the 2000 and 2001 fiscal years, but not to the years 2002 through 2005.
The company said investors and analysts can no longer rely on the accuracy of any financial statements or related reports released during the years being restated.
'Because the investigation is still ongoing, there can be no assurance that Medarex's historical financial statements for other prior periods will not be restated, or that additional stock-based non-cash compensation expense will not materially affect future periods,' the company said in a statement.
The company also said it will request a hearing before a Nasdaq panel to review a delisting warning it received Monday. Medarex was warned it was noncompliant with listing standards because it has not filed yet its second-quarter report. The company said it cannot file the report until its investigation into stock-option granting practices is complete.
Medarex is one of 69 companies currently being investigated by either the Securities and Exchange Commission or the Department of Justice for possible backdating of stock-option grants to artificially inflate their value.
Shares of Medarex rose 13 cents to close at $9.97 on the Nasdaq. Shares fell in after-hours trading, falling 17 cents to $9.80 on the INET electronic exchange.
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