Nabi Finds Option Errors

The company says the mistakes were "not material" to its financial reporting.
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Nabi Biopharmaceuticals

(NABI)

says it has discovered some stock-option accounting errors that it considers "not material" to its financial reporting.

As a result, Nabi has issued third-quarter results, including a non-cash compensation expense of $2.6 million, or 4 cents a share, which it blamed on "incomplete or missing documentation." The announcement was made Tuesday night after Nabi filed a quarterly financial report with the

Securities and Exchange Commission

.

The Boca Raton, Fla.-based drug company says there wasn't any fraud or manipulation of stock-option dates. An internal review looked at stock-option practices going back to the beginning of 1997. In late October, Nabi said it

wouldn't issue detailed third-quarter results until the review was completed.

For the three months ended Sept. 30, Nabi lost $21.8 million, or 36 cents a share, including discontinued operations. For the year-ago quarter, it lost $16.1 million, or 27 cents a share, including discontinued operations. Revenue dropped to $19.6 million from last year's $22.4 million.

Nabi had been accounting for its PhosLo business as a discontinued operation since its Aug. 7 agreement to sell it to Fresenius Medical Care. PhosLo controls the level of phosphorous in patients with end-stage kidney disease. The PhosLo deal was completed on Tuesday.-