Epix Pharmaceuticals said today it plans to restate previous financial statements in connection with its ongoing review of past stock options practices.
The Lexington biopharmaceutical company said that it has concluded it will need to restate historical financial statements to record additional non-cash charges for stock-based compensation expense related to past option grants.
As a result, the financial statements and related notes and financial data for all prior periods, including all annual and interim periods in the company's recent 10-K filing, "should no longer be relied upon," pending the conclusion of the ongoing review, the company said.
Because of the review, the company said it is unlikely that its 2006 annual report will be completed before its due date.
Epix said it expects to issue a press release tomorrow with highlights of its unaudited financial results for the fourth quarter of 2006.
According to Epix, the accounting in question relates exclusively to stock option practices that predate its August merger with Predix Pharmaceutical Holdings Inc. of Lexington.
Calls to the company seeking additional detail were not immediately returned.
(by Chris Reidy, Globe staff)