-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GEI679+n49YM9B2Kc7jZDoAPFgtLs918bFa1sNahIjTpBCDyibRE2x3pA4SfEpO/ o3qXCEMcwV34NMUs56y4fQ== 0000892569-03-001865.txt : 20030807 0000892569-03-001865.hdr.sgml : 20030807 20030807171337 ACCESSION NUMBER: 0000892569-03-001865 CONFORMED SUBMISSION TYPE: 425 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20030807 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: AAIPHARMA INC CENTRAL INDEX KEY: 0001013243 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-TESTING LABORATORIES [8734] IRS NUMBER: 042687849 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 425 SEC ACT: 1934 Act SEC FILE NUMBER: 000-21185 FILM NUMBER: 03829386 BUSINESS ADDRESS: STREET 1: 2320 SCIENTIFIC PARK DRIVE CITY: WILMINGTON STATE: NC ZIP: 28405 BUSINESS PHONE: 9102547000 MAIL ADDRESS: STREET 1: 2320 SCIENTIFIC PARK DRIVE CITY: WILMINGTON STATE: NC ZIP: 28405 FORMER COMPANY: FORMER CONFORMED NAME: APPLIED ANALYTICAL INDUSTRIES INC DATE OF NAME CHANGE: 19960430 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: CIMA LABS INC CENTRAL INDEX KEY: 0000833298 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 411569769 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 425 BUSINESS ADDRESS: STREET 1: 10000 VALLEY VIEW ROAD CITY: EDEN PRAIRIE STATE: MN ZIP: 55344-9361 BUSINESS PHONE: 9529478700 MAIL ADDRESS: STREET 1: 10000 VALLEY VIEW ROAD CITY: EDEN PRAIRIE STATE: MN ZIP: 55344-9361 425 1 f92115be425.txt 425 Filed by CIMA LABS INC. Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934 Subject Company: aaiPharma Inc. Commission File No. 0-21185 This filing relates to the merger transaction between CIMA LABS INC., a Delaware corporation ("Cima"), aaiPharma Inc., a Delaware corporation ("aaiPharma"), Scarlet Holding Corporation, a Delaware corporation ("Holding Company"), Scarlet MergerCo, Inc., a Delaware corporation and a direct, wholly owned subsidiary of Holding Company ("S MergerCo"), and Crimson MergerCo, Inc., a Delaware corporation and a direct, wholly owned subsidiary of Holding Company ("C MergerCo"), pursuant to an Agreement and Plan of Merger, dated as of August 5, 2003 (the "Merger Agreement"). The Merger Agreement is on file with the Securities and Exchange Commission as an exhibit to the Current Report on Form 8-K, as amended, filed by Cima on August 6, 2003. ADDITIONAL INFORMATION AND WHERE TO FIND IT In connection with a proposed business combination transaction, Scarlet Holding Corporation, the holding company in the proposed transaction, intends to file with the Securities and Exchange Commission (the "SEC") a registration statement on Form S-4 that will include a joint proxy statement/prospectus and other relevant documents in connection with the proposed transaction. Investors of aaiPharma and Cima are urged to read the joint proxy statement/prospectus and other relevant materials when they become available because they will contain important information about Cima, aaiPharma and the proposed transaction. Investors may obtain a free copy of these materials (when they are available) and other documents filed with the Securities and Exchange Commission at the SEC's website at www.sec.gov. A free copy of the joint proxy statement/prospectus when it becomes available may also be obtained from aaiPharma Inc., 2320 Scientific Park Drive, Wilmington, North Carolina 28405 or CIMA LABS INC., 10000 Valley View Road, Eden Prairie, Minnesota 55344. In addition, investors may access copies of the documents filed with the SEC by aaiPharma on aaiPharma's website at www.aaiPharma.com and may access copies of the documents filed with the SEC by Cima on Cima's website at www.cimalabs.com. aaiPharma, Cima and their respective directors, executive officers and certain other members of management and employees may be soliciting proxies from their respective stockholders in favor of the proposed merger. Information regarding the persons who may, under the rules of the SEC, be considered to be participants in the solicitation of aaiPharma's stockholders in connection with the proposed merger is set forth in aaiPharma's proxy statement for its 2003 annual meeting, dated April 8, 2003 and filed with the SEC on April 11, 2003, and information regarding the persons who may, under the rules of the SEC, be considered to be participants in the solicitation of Cima's stockholders in connection with the proposed transaction is set forth in Cima's proxy statement for its 2003 annual meeting, dated April 14, 2003 and filed with the SEC on April 11, 2003. Additional information regarding these individuals and any interest they have in the proposed transaction will be set forth in the joint proxy statement/prospectus when it is filed with the SEC. FORWARD-LOOKING STATEMENTS The materials attached below may contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations and beliefs of the management of aaiPharma and Cima and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The forward-looking statements contained in this press release include statements about future financial and operating results and the proposed merger of aaiPharma and Cima. These statements are not guarantees of future performance, involve certain risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. Therefore, actual outcomes and results may differ materially from what is expressed herein. Risks and uncertainties pertaining to the following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: the ability of aaiPharma and Cima to obtain the stockholder and regulatory approvals required for the merger; the new company's ability to successfully integrate the businesses of the two companies; unexpected costs involved in the merger or to the new company's ability to achieve cost-cutting synergies; the impact of uncertainty surrounding the merger on the businesses of the two companies; the impact of competition, new data, supply issues or marketplace trends on the market for the companies' products; deterioration in the business of aaiPharma or Cima prior to closing; technical, regulatory or manufacturing issues; new data or intellectual property disputes that may affect the companies' programs; the ability of the new company to develop and market products in a timely manner; and difficulties in gaining approval of new products. Additional economic, business, competitive and/or regulatory factors affecting aaiPharma's and Cima's businesses generally that may cause actual results to differ materially are discussed in their respective filings with the SEC, including their Annual Reports on Form 10-K for the fiscal year ended December 31, 2002, especially in the Management's Discussion and Analysis section, their most recent Quarterly Reports on Form 10-Q and their Current Reports on Form 8-K. aaiPharma and Cima do not undertake any obligation to (and expressly disclaim any such obligation to) update or alter their forward-looking statements, whether as a result of new information, future events or otherwise. Attached below is the text of a letter to employees from Dr. Philip Tabbiner posted on a joint Cima/aaiPharma website related to the merger. EMPLOYEE-ONLY WEB SITE COMMUNICATION ------------------------------------ # # # # # # # # # # # # # # # # # # # # August 7, 2003 Dear Colleagues: On Tuesday we announced a merger between aaiPharma and CIMA Labs (see press release), two unique research and development-based specialty pharmaceutical companies with remarkably complementary business platforms. This exciting transaction accelerates our mutual strategy of maximizing a strong science-base to develop, enhance and commercialize proprietary pharmaceutical brands. Together, our companies will create a powerful, new science-based specialty pharmaceutical company under the leadership of an experienced management team. We expect this merger will greatly benefit our company by: - Adding attractive proprietary technologies-particularly CIMA's fast-dissolve technology--that can be applied to our acquired brands such as Darvocet(tm) to accelerate pipeline development and drive revenue growth; - Providing us with even stronger R&D and manufacturing infrastructures through CIMA's dedicated R&D staff of nearly 80 professionals, 1 billion blister tablet manufacturing capacity in 2004, and a total of 950 million bottle tablet manufacturing capacity to be operational in 2004; - Further strengthening our industry leading contract development services through complementary relationships with leading pharmaceutical companies including Organon, Astra Zeneca, Wyeth, Novartis and Bristol-Myers Squibb; - Boosting our market cap profile to approaching $1B and potentially expanding our shareholder base; - Strengthening our balance sheet by significantly lowering our debt and increasing our cash position, which enables us to support further product acquisitions. With anticipated 2004 revenues of between $405 million and $415 million, and earnings per share target of between $1.25 and $1.30 in 2004, the new company will be better positioned for success in the marketplace, which will also translate into more career opportunities for our employees. Given the complementary nature of our two organizations, there is little overlap in terms of jobs and facilities. The combined organization will be based in Wilmington, North Carolina. CIMA employs a highly skilled R&D and manufacturing workforce of over 274 employees, based in Minnesota. The employees, intellectual property and facilities of CIMA are an excellent addition to aaiPharma's capabilities, and we will maintain their operations in Minnesota. For more information, please see the Fact Sheet. Over the next several months, while the integration plans are being finalized and the merger is being reviewed for approval by the various regulatory agencies and our shareholders, we will provide you with additional information about CIMA and aaiPharma, and the benefits of combining our talents and resource. As we move forward, it is critical that we maintain our focus on delivering on our commitments to shareholders and customers, driving sales of our products, commercializing our pipeline and succeeding with projects for our external clients. I will be appointing an integration team shortly, reporting to me, to oversee the merger and ensure that our employees can continue their work with minimal disruption. This web site is designed to be a clearinghouse for events and information related to the merger. We hope you will find the contents useful and informative. Please use the feedback tool to provide us with comments or ask questions about the merger. This is a tremendous opportunity for both of our companies to realize our objectives and accelerate our business strategies. I look forward to celebrating this good news with you in the weeks ahead. Regards, Dr. Philip S. Tabbiner President and CEO aaiPharma # # # # # # # # # # # # # # # # # # # # -----END PRIVACY-ENHANCED MESSAGE-----