Medicis sinks to new 52-week low on possible restatement

Medicis (NYSE:MRX) plunged to a new 52-week low this morning after announcing that it will likely need to restate financial statements going back to 2003.
 
The Scottsdale, Ariz.-based specialty pharmaceutical firm said at 9 a.m. ET that it will likely restate statements for the annual, transition and quarterly periods in fiscal years 2003 through 2007 and the first and second quarters of 2008.
 
The restatement, the company said, relates to a modification in the company's technical interpretation of the generally accepted accounting principles relating to sales return reserve calculations.

Medicis said it does not expect the restatement to have an impact on its cash flows or cash and cash equivalents balances for any of the affected periods.

Effective immediately, the company also said is suspending its previously reported financial guidance for the remaining periods of 2008.

By the afternoon, Medicis is at $15.77, down $2.15 from Tuesday’s close, and after having traded as low as $14 earlier in the day. Previously the stock had ranged between $17.72 and $32.18 during the past 52 weeks.

Trading volume was heavy — more than 2.4 million shares had changed hands compared with an average three-month volume of 999,000.

For detailed price information and news stories on Medicis, click MRX.

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