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Nabi Biopharmaceuticals


said Wednesday it wouldn't issue full third-quarter financial results until it had examined its past equity grants and their associated accounting.

The audit committee of Nabi's board of directors initiated a voluntary review "in light of current public company focus on stock option practices, as well as questions raised by certain shareholders about its 2006 equity grants."

The Boca Raton, Fla.-based biotechnology company said the audit committee found no fraud or other improper behavior related to this year's grants. Nabi said there wasn't any backdating or spring-loading, the tactic of timing option grants to take place before expected good news or to occur after anticipated bad news.

"The governance review for years prior to 2006 and the accounting review for all periods are ongoing," Nabi said in a prepared statement, adding that the review will be completed shortly. Detailed third-quarter results will be issued after Nabi completes the review. An independent law firm is aiding the committee.

Nabi said third-quarter sales dropped to $26.4 million from $30.5 million for the same period last year. PhosLo, a drug that prevents the build-up of excessive phosphorous levels in the blood, contributed $6.8 million in sales during the third quarter vs. $8.1 million last year.

Nabi said earlier this month that it would sell PhosLo and its related assets to

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. Nabi expects to close the deal next month. Nabi will receive $65 million, and it could receive as much as $10 million in milestone payments in the fourth quarter.

"During the third quarter we have continued to significantly reduce our cash burn rate," said Thomas McLain, the chairman and CEO. "The sale of PhosLo will allow us to make further reductions in selling, general and administration expenses."

Nabi has been under a withering attack by

several hedge fund managers who have assailed the company's strategy, stock price, financial performance and management. Some say Nabi should be sold. Others believe McLain should be removed.

Last month, Nabi

hired an investment banking firm to help it explore its alternatives, ranging from joint ventures and licensing deals to selling all or part of the company. McLain told analysts and investors that Nabi remains "firmly committed" to examining all options.

Nabi released its financial results after markets had closed. In regular trading, the stock rose 9 cents, closing at $6.63. After-hours, the stock dropped 18 cents.