DOYLESTOWN, Pa., May 18 /PRNewswire-FirstCall/ -- The Quigley Corporation, (Nasdaq: QGLY), www.quigleyco.com, today announced an update on the Company's possible alternative strategies going forward following the Company's recent announcement regarding the unexpected positive finding for its QR-333 (Diabetic Peripheral Neuropathy) compound during the recently completed Phase 11b clinical trial. While the complete statistical results of the trial are awaited, the Company's Board of Directors and management will immediately initiate a process to explore and evaluate various strategic and financial alternatives available, with the goal to maximize stockholder value.
The possible options being considered by the Company currently include, licensing, joint venture, and if beneficial to the stockholders, the sale of the Pharma division. In addition, the Company will be actively considering the separation of the OTC and Pharma assets to further explore all means of maximizing stockholder value. In order to properly evaluate these options, the Company is in the process of retaining a nationally recognized investment banker to serve as its financial advisor in connection with this process.
The Company also confirmed today that in addition to the consolidation process currently underway at its manufacturing facility, Quigley Manufacturing Inc., it is committed to implementing further cost reductions particularly in the area of compensation for certain executives and other operating areas as deemed necessary. The cost reduction has become necessary due to reduced performance of the Company's OTC segment of the business which is reflective of the broad downturn in consumer spending on this category of goods.
Guy J. Quigley, Chairman, Chief Executive Officer and President of The Quigley Corporation, stated, "As we continue to implement our long-term strategic plan and work to realize the potential of Pharma's QR-333 compound to treat Diabetic Peripheral Neuropathy and other formulations currently under development by the Company's Pharma division, management and our Board of Directors have determined that we should examine all potential means for maximizing value for our stockholders. Due to the current broad economic decline in the overall HBC category (Health and Beauty Care) marketplace, in both dollar and unit sales, a segment of the market into which cold remedies such as COLD-EEZE falls, we foresee no sign of immediate improvement. Therefore, we are taking the additional steps announced today to more closely align our operating costs with the current decreased level of demand for the Company OTC products."
The Company cautions that there can be no assurance that the exploration of strategic alternatives will result in any specific transaction. The Company does not expect to disclose further developments regarding the process until the completion of the strategic alternatives review and a decision by the Board of Directors regarding a transaction or course of action.
About The Quigley Corporation
The Quigley Corporation (Nasdaq: QGLY, http://www.Quigleyco.com) is a diversified natural health medical science company. Its Cold Remedy segment is a leading marketer and manufacturer of the COLD-EEZE® family of lozenges, gums and sugar free tablets clinically proven to cut the common cold nearly in half. COLD-EEZE customers include leading national wholesalers and distributors, as well as independent and chain food, drug and mass merchandise stores and pharmacies. The Quigley Corporation has several wholly owned subsidiaries; Quigley Manufacturing Inc. consists of two FDA approved facilities to manufacture COLD- EEZE® lozenges as well as fulfill other contract manufacturing opportunities. Quigley Pharma Inc. (http://www.QuigleyPharma.com) conducts research in order to develop and commercialize a pipeline of patented botanical and naturally derived potential prescription drugs.
Forward-Looking Statements
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risk, uncertainties and other factors that may cause the Company's actual performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statement. Factors that impact such forward-looking statements include, among others, changes in worldwide general economic conditions, changes in interest rates, government regulations, and worldwide competition.
Important Additional Information
The Quigley Corporation ("Quigley" or the "Company") filed a definitive proxy statement with the Securities and Exchange Commission (the "SEC") on April 2, 2009 in connection with the 2009 Annual Meeting of Stockholders and began the process of mailing the definitive proxy statement and a WHITE proxy card to stockholders. The Company's stockholders are strongly advised to read Quigley's proxy statement as it contains important information. Stockholders may obtain an additional copy of Quigley's definitive proxy statement and any other documents filed by the Company with the SEC for free at the SEC's website at http://www.sec.gov. Copies of the definitive proxy statement are available for free at http://www.amstock.com/ProxyServices/ViewMaterial.asp?CoNumber=07814.
In addition, copies of the Company's proxy materials may be requested at no charge by contacting MacKenzie Partners, Inc. at 1-800-322-2885 or via email at quigley@mackenziepartners.com. Detailed information regarding the names, affiliations and interests of individuals who are participants in the solicitation of proxies of Quigley's stockholders is available in Quigley's definitive proxy statement filed with SEC on April 2, 2009.
CONTACT:
Gerard M. Gleeson The Quigley Corporation Vice President, CFO (215) 345-0919
Mark Harnett / Bob Marese MacKenzie Partners, Inc. (212) 929-5500 Quigley@mackenziepartners.com
Carl Hymans G. S. Schwartz & Co. 212-725-4500 carlh@schwartz.com
