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Axcan Restates And Increases Diluted Income Per Share For Fiscal 2003


Jan 07, 2004 - 12:00 ET

Axcan Restates And Increases Diluted Income Per Share For Fiscal 2003 

MONT-SAINT-HILAIRE, QUEBEC - Axcan Pharma Inc. ("Axcan" or the "Company") announced today a revision and
increase in the diluted income per share for its second and third quarters and in the diluted income per
share excluding certain items presented in the Management's Discussion and Analysis of financial
condition and results of operations ("MD&A") for the third and fourth quarters and fiscal year ended
September 30, 2003 (all amounts are stated in U.S. dollars). In calculating the diluted income per share,
the Company had reflected the dilutive impact of conversion of its $125-million convertible subordinated 
notes. However, the triggering event for conversion had not yet occurred resulting in an understatement 
of diluted income per share. The restated diluted income per share excluding acquired in-process 
research, takeover-bid expenses and related income taxes for the fiscal year ended September 30, 2003, 
was $0.73 rather than $0.70 as published.

"Although this event is not material and has no negative impact on Axcan's reported results, the Company 
considers it appropriate to restate previously disclosed financial results," commented David W. Mims, 
Executive Vice President and Chief Operating Officer of Axcan. "We want to assure all current and 
potential shareholders that we have reinforced the Company's disclosure process and are committed to the 
highest standards of reporting," he concluded.

As presented in the MD&A for the fourth quarter and fiscal year ended September 30, 2003, the restated 
diluted income per share excluding acquired in-process research, takeover-bid expenses and related income
taxes for the fiscal year ended September 30, 2003, are $0.73 rather than the published $0.70. This 
measure of diluted income per share excluding certain items is a non-GAAP measure that does not have a 
standardized meaning and, as such, is not necessarily comparable to similarly titled measures presented 
by other companies. As previously stated, the Company believes the presentation of this non-GAAP measure 
provides useful information because it eliminates certain unusual expenses and thus creates a measure 
more similar to that used for prior periods.  Investors should consider this non-GAAP measure as 
additional information to Axcan's U.S. GAAP results of operations.

Income per share according to GAAP for the fourth quarter and fiscal year ended September 30, 2003, was
accurately disclosed and the restatement has accordingly no impact on the figures included in the 
financial statements for these periods.

In the course of re-examining the calculation of diluted income per share for its annual report, the 
Company determined that it was necessary to restate the diluted income per share as events required for 
conversion of the Company's convertible subordinated notes to common shares had not occurred. In order to
reflect conversion of the convertible debenture to common shares, the following must occur during any 
conversion period:

/T/

- the closing sale price of its common shares on the NASDAQ Market
  for at least 20 consecutive trading days in the 30 consecutive
  trading-day period ending on the first day of the conversion period
  is more than 110% of the conversion price in effect on that
  thirtieth trading day. The conversion price now in effect is $14.01
  and 110% of this conversion price is $15.41;
- during the five business-day period following any 10 consecutive
  trading-day period in which the daily average of the trading prices
  for the notes for that 10 trading-day period is less than 95% of
  the average conversion value for the notes during that period;
- if the Company has called the notes for redemption; or
- upon the occurrence of specified corporate transactions.

Details of the Company's restated figures are as follows:

FOURTH QUARTER AND FISCAL YEAR ENDED SEPTEMBER 30, 2003
Diluted income per share excluding acquired in-process research and
related income taxes for the three-month period ended September 30,
2003.

As published in Management's discussion and analysis
 of financial condition and results of operations              $0.19
Restated                                                       $0.20
Diluted income per share excluding acquired
 in-process research, takeover bid expenses
 and related income taxes for the year
 ended September 30, 2003

As published in Management's discussion and analysis
 of financial condition and results of operations              $0.70
Restated                                                       $0.73
These measures of diluted income per share excluding
 certain items are non-GAAP measures.

THIRD QUARTER ENDED JUNE 30, 2003

Financial statements
Diluted income per common share

for the three-month period ended June 30, 2003
   As published                                                $0.13
   Restated                                                    $0.14
for the nine-month period ended June 30, 2003
   As published                                                $0.47
   Restated                                                    $0.48

Diluted weighted average number of common shares
for the three-month period ended June 30, 2003
   As published                                           54,521,818
   Restated                                               45,597,705
·   for the nine-month period ended June 30, 2003
   As published                                           49,398,847
   Restated                                               45,574,227

Management's Discussion and Analysis of Financial
 Condition and Results of Operations:
Diluted income per common share excluding takeover
 bid expenses and related income taxes
·   for the three-month period ended June 30, 2003
        As published                                           $0.18
        Restated                                               $0.19
·   for the nine-month period ended June 30, 2003
        As published                                           $0.52
        Restated                                               $0.53

This measure of diluted income per share excluding certain items is a
non-GAAP measure.

SECOND QUARTER ENDED MARCH 31, 2003
Financial statements
Diluted income per common share for the three-month
 period ended March 31, 2003
   As published                                                $0.19
   Restated                                                    $0.20
Diluted weighted average number of common shares
·   for the three-month period ended March 31, 2003
        As published                                      47,131,627
        Restated                                          45,553,550
·   for the six-month period ended March 31, 2003
   As published                                           46,635,551
   Restated                                               45,560,678

/T/

CONFERENCE CALL

Axcan will host a conference call at 4:30 P.M. EST, on January 7, 2004. Interested parties may also 
access the conference call by way of web cast at www.axcan.com. The web cast will be archived for 90 
days.

The telephone numbers to access the conference call are (800) 814-4860 (Canada and United States) or 
(416) 640-4127 (international). A replay of the call will be available until January 14, 2004. The 
telephone number to access the replay of the call is (416) 640-1917 code: 21032513.

Axcan is a leading specialty pharmaceutical company involved in the field of gastroenterology.  Axcan 
markets a broad line of prescription products sold for the treatment of symptoms in a number of 
gastrointestinal diseases and disorders such as inflammatory bowel disease, irritable bowel syndrome, 
cholestatic liver diseases and complications related to cystic fibrosis. Axcan's products are marketed by
its own sales force in North America and Europe. Its common shares are listed on the Toronto Stock 
Exchange under the symbol "AXP" and on the NASDAQ National Market under the symbol "AXCA".


David W. Mims
Executive Vice President and Chief Operating Officer
Tel: (205) 991-8085 ext. 223

or
Isabelle Adjahi
Director, Investor Relations					
Tel: (450) 467-2600 ext. 2000
	
Web:	http://www.axcan.com