This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Double Trouble for aaiPharma

Shares of aaiPharma (AAII) sank Wednesday, one day after the company said its chief executive had been hospitalized and that its third-quarter results fell below Wall Street estimates.

The stock fell 53 cents, or 14.6%, to $3.09, after falling as low as $3.

Late Tuesday afternoon, the Wilmington, N.C.-based drug company said Dr. Ludo J. Reynders, its president and CEO, has been hospitalized with "suspected pneumonia." While Reynders is incapacitated, the interim president and CEO will be Timothy Wright, who joined the company in April. Wright is the fourth person to hold the title of CEO or interim CEO this year.

Reynders, 50, was named president and CEO on Sept. 28. He replaced Frederick D. Sancilio, 54, the company's founder, who had been chairman, chief executive, president and chief science officer. Sancilio resigned from these positions, but he remains a nonexecutive member of the board of directors. Sancilio had resumed daily management activities in February, replacing Dr. Philip Tabbiner as CEO. Tabbiner joined aaiPharma in 2000 and became CEO in July 2002.

Also, on Tuesday, aaiPharma released third-quarter financial results in which the company reported a loss of $33.8 million, or $1.18 a share, on revenue of $43.2 million. The consensus of analysts polled by Thomson First Call had expected a loss of $9.4 million, or 19 cents a share, on revenue of $51.4 million.

For the same period last year, aaiPharma lost $9.4 million, or 34 cents a share, on revenue of $39.7 million.

The latest aaiPharma results were affected by $13.72 million in restructuring charges, covering severance payments and other employee benefit expenses, making a separation payment to Sancilio and paying lease costs for facilities and aircraft "no longer in use."

Even with the restructuring charge and a $5.3 million charge attributed to impaired assets, analyst David W. Maris still figures aaiPharma lost 55 cents a share. The company's outlook is "uncertain despite progress on some fronts," said Maris, a Banc of America Securities analyst, in a report to clients on Tuesday. "We remain cautious as management continues to provide no guidance or visibility on the company's outlook."

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs