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OTCPicks.com: OTCPicks.com Daily Market Movers Digest Midday Report for Wednesday, December 31st CNST, VTSS, DDSS, CBAK, AKRX

Wed. December 31, 2008; Posted: 12:14 PM
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Dec 31, 2008 (M2 PRESSWIRE via COMTEX) -- VTSS | Quote | Chart | News | PowerRating -- Our Stocks to Watch today include Constar International Inc. (Nasdaq: CNST), Vitesse Semiconductor Corp. (OTC: VTSS), Labopharm Inc. (Nasdaq: DDSS), China BAK Battery Inc. (Nasdaq: CBAK | Quote | Chart | News | PowerRating) and Akorn Inc. (Nasdaq: AKRX).

Visit http://www.otcpicks.com/microcap.htm to register for our Daily Market Mover's Digest Newsletter and Email Stock Watch Alerts.

CONSTAR INTERNATIONAL INCORPORATED (NASDAQ: CNST | Quote | Chart | News | PowerRating) "Up 78.55% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/CNST.php

Philadelphia-based Constar is a leading global producer of PET (polyethylene terephthalate) plastic containers for food, soft drinks and water. The Company provides full-service packaging solutions, from product design and engineering, to ongoing customer support. Its customers include many of the world's leading branded consumer products companies.

CNST News:

December 30 - Constar International Inc. Receives Support from the Holders of a Majority in Principal Amount of the Subordinated Notes for Plan to Reduce Debt and Annual Interest Expense

Company Files Pre-Arranged Voluntary Chapter 11 Petition To Implement Debt-For-Equity Swap; No Other Creditor Classes Impaired Ongoing Business Relationships With Suppliers, Customers and Employees Not Impacted By Restructuring

Constar International Inc. (Nasdaq: CNST | Quote | Chart | News | PowerRating) announced that it has received support from the holders of a majority in principal amount of the Company's Subordinated Notes regarding a debt-for-equity exchange that will reduce the Company's outstanding indebtedness by $175 million and reduce its annual interest expense by approximately $19.3 million. To implement this pre-arranged restructuring, Constar and certain of its subsidiaries today filed voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court in Wilmington, Delaware.

All of Constar's global operations - including all of its manufacturing and distribution facilities in the U.S. and Europe - are open and operating on normal schedules, and the Company expects to continue to fulfill all customer orders as usual and provide uninterrupted customer service.

Michael Hoffman, President and CEO of Constar, said, "We are pleased to have received support from the holders of a majority in principal amount of our subordinated notes for a pre-arranged and consensual restructuring that significantly improves our balance sheet by eliminating $175 million in debt, reduces our annual cash interest obligations by approximately $19.3 million, and frees up cash to reinvest in our business to support future growth. We intend to continue to operate as usual during the restructuring process with minimal disruption to the business and our constituencies. We intend to pay all of our obligations in full - which includes providing pay and benefits to our employees as usual, honoring all contracts, and paying suppliers in full."

Pursuant to the Company's proposed plan of reorganization, holders of the Subordinated Notes will convert 100% of the face amount of the Subordinated Notes and the full amount of the interest payment due December 1, 2008, which will not be paid, into common stock of the reorganized company. The Company's current equity will be cancelled, but all other creditor classes will be unimpaired. Importantly, all obligations owed by the Company to trade creditors in the ordinary course of business will be paid in full under the plan. The Company anticipates that the restructuring will be completed by early spring of 2009.

Allan Brilliant, partner at Goodwin Procter LLP, counsel to an ad hoc committee of holders of the Subordinated Notes, said, "Our clients support the Company's efforts to deleverage through a debt-for-equity exchange under a plan that proactively fixes the balance sheet and allows the company to realize its full potential."

Christopher Pucillo, Chief Investment Officer of Solus Alternative Asset Management LP, the largest holder of Constar's Subordinated Notes, said, "As the largest holder of Subordinated Notes, we support the deleveraging under the plan. We look forward to working with Constar to consummate the debt-for-equity exchange promptly to allow the Company to maximize its potential prospects going forward."

Constar also announced today that it has received commitments from its existing bank lenders to provide the Company with debtor-in-possession ("DIP") and exit financing of $75 million. The DIP financing will help enable the Company to continue to satisfy customary obligations associated with ongoing operations of its business, including the timely payment of employee obligations, materials purchases, normal operating expenses and other obligations. The $75 million exit financing facility provides for committed financing for the three years following the closing of the DIP financing. In addition, Constar has filed a variety of customary first day motions with the Court that will allow it to continue to conduct business as usual while it completes the debt-for-equity restructuring.

The Company's financial advisor is Greenhill & Co. and its legal advisors are Wilmer Cutler Pickering Hale and Dorr LLP and Bayard, P.A.

VITESSE SEMICONDUCTOR (OTC: VTSS | Quote | Chart | News | PowerRating) "Up 113.33% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/VTSS.php

Vitesse designs, develops and markets a diverse portfolio of high-performance, cost-competitive semiconductor solutions for Carrier and Enterprise networks worldwide. Engineering excellence and dedicated customer service distinguish Vitesse as an industry leader in Gigabit Ethernet LAN, Ethernet-over-SONET, Fibre Channel, Optical Transport, and other applications. Vitesse innovation empowers customers to deliver superior products for Enterprise, Access, Metro, and Core applications.

VTSS News:

December 30 - Vitesse Reports Fiscal 2008 Year End Results

Achieves Profitability and Compliance with SEC Filings

Vitesse Semiconductor Corporation (OTC: VTSS), a leading provider of advanced IC solutions for Carrier and Enterprise networks, achieved profitability for the fiscal year ended September 30, 2008 with net income of $16.6 million, or $0.07 net income per share, and today filed an annual report on Form 10-K with the Securities and Exchange Commission to report the Company's fiscal year 2008 results of operations and financial condition. Vitesse also filed quarterly reports on Forms 10-Q for the periods ended December 31, 2007, March 31, 2008, and June 30, 2008 and is once again current with respect to its Exchange Act reporting obligations.

"Vitesse has emerged from some very formidable times as a stronger and profitable business. We have taken concrete steps to improve our strategic direction, product execution, operational efficiency, and customer loyalty," said Chris Gardner, chief executive officer of Vitesse. "The results are a dramatic three-year trend of improved operational and financial performance. During this time, we have strengthened substantially every financial metric including: revenue, margins, operating income, net income, net debt, and cash. While we still have some challenges ahead, we now have a sound base on which to build, and we remain as committed as ever to improving shareholder value."

Recap of Fiscal Year 2008 Results

As discussed in greater detail in the Company's fiscal year 2008 Form 10-K, Vitesse announces fiscal year 2008 highlights as follows:

* Net revenues in fiscal year 2008 were $228.5 million, an increase of 3% compared with the $221.9 million reported for fiscal year 2007;

* Revenue for the licensing of intellectual property was $10.0 million in fiscal year 2008;

* Cost of revenues for fiscal year 2008 was $106.3 million, or 47% of revenues, a decrease from $113.8 million, or 51% of revenues for fiscal year ended 2007;

* Income from operations in fiscal year 2008 was $8.4 million compared to a loss from operations of $1.8 million for fiscal year 2007. Income from operations in fiscal year 2008 includes charges of $10.8 million related to professional fees associated with the completion of its internal accounting investigation, actions to improve internal controls and preparation of its financial statements. The fiscal year 2007 loss from operations included the same professional charges totaling $13.6 million;

* Net income for fiscal year 2008 was $16.6 million, or $0.07 net income per share, compared to net loss of $21.6 million, or $0.10 loss per share, for fiscal year 2007; and

* Cash position as of September 30, 2008 was $36.7 million.

Investors should review these financial results in conjunction with the more comprehensive information regarding the Company's results of operations and financial condition included in its fiscal year 2008 Form 10-K.

Conference Call Information

A conference call is scheduled for Tuesday, January 6, 2009, at 8:00 a.m. Eastern Time. To listen to the conference call via telephone, dial 800-450-5178 (U.S. toll-free) or 706-679-6171 (International) and provide the passcode 79385488. Participants should dial in at least 10 minutes prior to the start of the call. The Company will also broadcast the conference call via a webcast over the internet. To listen to the webcast, please visit the investors section of the Vitesse website at www.vitesse.com. The call will be recorded and available for replay until Tuesday, January 13, 2009. To access the audio replay, dial 800-642-1687 (U.S. toll-free) or 706-645-9291 (International) and provide the passcode 79385488.

Investor Conference Participation

Vitesse will participate in the 11th Annual Needham & Company Growth Stock Conference, January 6 - 8, 2009. Representing Vitesse at this event will be Chris Gardner, CEO, and Rich Yonker, CFO. They will present on Wednesday, January 7, 2009 at 3:30 pm Eastern Time. The presentation will be webcast.

LABOPHARM INCORPORATED (NASDAQ: DDSS | Quote | Chart | News | PowerRating) "Up 44.45% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/DDSS.php

Labopharm is an emerging leader in optimizing the performance of existing small molecule drugs using its proprietary controlled-release technologies. The Company's lead product, a unique once-daily formulation of tramadol, is being commercially launched in key markets globally and its second product, a novel formulation of trazodone for the treatment of major depressive disorder, is under regulatory review by the FDA. The Company also has a robust pipeline of follow-on products in both pre-clinical and clinical development. Labopharm's vision is to become an integrated, international, specialty pharmaceutical company with the capability to internally develop and commercialize its own products.

DDSS News:

December 31 - Labopharm Announces FDA Approval of Once-Daily RYZOLT (Tramadol HCL Extended Release Tablets) for Management of Moderate to Moderately Severe Chronic Pain

Labopharm Inc. (Nasdaq: DDSS | Quote | Chart | News | PowerRating) (TSX: DDS) announced that RYZOLT (tramadol HCl extended release tablets), Labopharm's once-daily formulation of the analgesic tramadol, has been approved by the U.S. Food and Drug Administration (FDA). RYZOLT is indicated for the management of moderate to moderately severe chronic pain in adults who require around-the-clock treatment of their pain for an extended period of time.

"The approval of our first product in the United States is a major milestone for our Company and we look forward to our product's launch in the world's largest market for pain medications," said James R. Howard-Tripp, President and Chief Executive Officer, Labopharm Inc. "We believe that RYZOLT offers physicians and patients an excellent option for the treatment of pain with the benefit of once-daily dosing. We look forward to the launch of our product by our marketing partner for the U.S., Purdue Pharma."

RYZOLT is a centrally acting analgesic composed of a dual-matrix delivery system with both immediate-release and extended-release characteristics. Labopharm's marketing partner for its product in the United States, Purdue Pharma L.P., anticipates launching RYZOLT tablets in 100 mg, 200 mg and 300 mg dosage strengths in the second quarter of 2009.

The approval of RYZOLT is the first U.S. FDA approval that Labopharm has obtained for a medication using its patented Contramid controlled-release technology for oral administration of solid dosage medications. Labopharm believes that its Contramid technology can be applied to a wide range of complex, small, highly water soluble molecules to control their release over a 24-hour period with a desired pharmacokinetic profile.

Pain is a potentially debilitating condition that affects an estimated 75 million Americans - more than diabetes, heart disease and cancer combined. The United States is the world's largest market for tramadol products with sales for the 12-month period ended September 2008 of more than US$650 million resulting from more than 25 million prescriptions, which have grown at a compounded annual rate of 11% over the last five corresponding periods. Labopharm believes, however, that RYZOLT will compete not only with other tramadol products, but also with other medications indicated for the management of moderate to moderately severe chronic pain in adults who require around-the-clock treatment of their pain for an extended period of time.

"In a society where people with pain are increasingly demanding simplified dosing regimens, this once-daily formulation of tramadol should be embraced by physicians and patients alike," said Nicholas J. Messina III, MD, with Vista Medical Research Inc., Mesa, AZ, who was a principal investigator in the U.S. clinical studies on RYZOLT.

Labopharm will host a conference call on Tuesday, January 6, 2009 to discuss this announcement. Additional details for the conference call will be provided via separate news release shortly.

ABOUT THE GLOBAL COMMERCIALIZATION PROGRAM FOR LABOPHARM'S ONCE-DAILY TRAMADOL PRODUCT

Labopharm's once-daily tramadol product is being commercialized globally and to date has been launched in 14 countries, including Canada and the five largest individual markets in Europe. In addition, it has received regulatory approval or is under regulatory review in 29 countries and the Company has established marketing partnerships for its product in 38 countries. Labopharm is continuing to pursue regulatory approval and marketing partnerships for its once-daily tramadol product for other markets around the world in support of its global commercialization program.

CHINA BAK BATTERY INCORPORATED (NASDAQ: CBAK | Quote | Chart | News | PowerRating) "Up 35.54% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/CBAK.php China BAK Battery, Inc. is one of the largest manufacturers of lithium-based battery cells in the world, as measured by production output. It produces battery cells that are the principal component of rechargeable batteries commonly used in cellular phones, notebook computers and portable consumer electronics, such as digital media devices, portable media players, portable audio players, portable gaming devices and personal digital assistants (or PDAs), and other applications, such as cordless power tools and minings lamp. China BAK's 3.0 million square feet of facilities are located in Shenzhen and Tianjin, PRC, and have been recently expanded to produce new products.

CBAK News:

December 31 - China BAK Announces Conference Call to Discuss First Quarter FY 2009 Results

China BAK Battery Inc. (Nasdaq: CBAK), one of the largest lithium-ion battery cell manufacturers in the world, as measured by production output, will host a conference call at 7:00 pm Eastern Time on Friday, January 23, 2009, to discuss results for the first quarter of fiscal year 2009.

China BAK's senior management team, led by Xiangqian Li, China BAK's President and Chief Executive Officer, will present at the conference call and answer questions.

To participate in the conference call, please dial the following number approximately fifteen minutes prior to the scheduled conference call time: 888-482-0024. International callers should dial (617) 801-9702. The pass code for the call is 525-335-07.

If you are unable to participate in the call at this time, a replay will be available on Friday, January 23 at 9:00 pm ET, through Saturday, February 7, at 9:00 pm ET. To access the replay, please dial 888-286-8010. International callers should dial (617) 801-6888 and enter the pass code 639-38-928.

This conference call will be broadcast live over the Internet and can be accessed by all interested parties on the CBAK website at www.bak.com.cn. To listen to the live webcast, please go to the CBAK website at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software. For those unable to participate during the live broadcast, a replay will be available shortly after the call on CBAK's website for one year.

AKORN INCORPORATED (NASDAQ: AKRX | Quote | Chart | News | PowerRating) "Up 23.08% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/AKRX.php

Akorn, Inc. manufactures and markets sterile specialty pharmaceuticals. Akorn has manufacturing facilities located in Decatur, Illinois and Somerset, New Jersey and markets and distributes an extensive line of hospital and ophthalmic pharmaceuticals.

AKRX News:

December 31 - Akorn-Strides, LLC Announces FDA Approvals for Sterile Vancomycin HCl USP, 500 mg/Vial; 1 g/Vial and Sterile Vancomycin HCl USP, 5 g/Vial Pharmacy Bulk Package

Akorn-Strides, LLC announced that the U.S. Food and Drug Administration has granted approvals for two Abbreviated New Drug Applications (ANDAs) for Sterile Vancomycin HCl USP, 500 mg/vial, 1 g/vial and Sterile Vancomycin HCl USP, 5 g/vial Pharmacy Bulk Package. Akorn-Strides, LLC is a Joint Venture that was formed in 2004 by Akorn, Inc. (Nasdaq: AKRX | Quote | Chart | News | PowerRating) and Strides Arcolab Limited (NSE: STAR) (BSE: 532531). The primary mission for the Joint Venture is to develop liquid, lyophilized and dry powder formulations of generic injectable products targeting several therapeutic markets with a major focus on anti-infectives, analgesics and CNS medicines.

Sterile Vancomycin HCl is an antibiotic indicated for the treatment of potentially life-threatening infections which cannot be treated with other effective antimicrobial drugs, including the penicillins and cephalosporins. Recent IMS data estimates an annual market size for Sterile Vancomycin HCl of approximately $150 million. The expected launch date for these two new products is the first half of 2009.

The current product portfolio of the Joint Venture, which is funded equally by Akorn and Strides Arcolab, was recently expanded and now includes 29 ANDA's with a total of 53 SKU's, or product line offerings. To date, the Joint Venture has filed for 18 ANDA's and received 14 ANDA approvals. The Joint Venture generated its initial product revenues in the third quarter of 2008, from the launch of Rifampin for Injection.

Arthur S. Przybyl, Akorn's President and CEO and Member Manager of Akorn-Strides, LLC stated, "These two important product approvals represent the largest market size opportunity for the Joint Venture to date. I would like to personally thank Arun Kumar, co-founder of the Akorn-Strides Joint Venture, for having built the necessary manufacturing infrastructure to allow the Joint Venture to effectively compete for market share."

ABOUT STRIDES ARCOLAB LIMITED

Strides, listed on the Bombay Stock Exchange Limited (532531) and National Stock Exchange of India Limited (STAR), is one of India's largest exporters of branded generic pharmaceutical products. Strides manufactures pharmaceutical formulations in various dosage forms, including capsules, tablets and liquid injectables and is one of the world's top five manufacturers of softgel capsules. Strides also has the only globally dedicated softgel facility for hormones. In addition, Strides undertakes contract research and the manufacturing of specialty chemicals for various multinational companies. Strides has a major presence in various developing countries such as Africa, Latin America and Asia as well as in developed markets such as the U.S., Canada and part of Europe. Strides is one of the largest Indian suppliers of institutionally funded aid projects and is an approved supplier to the Global Drug Facility, UNICEF, and MSF amongst others.

Strides has 14 manufacturing plants spread across the U.S., Brazil, Mexico, Italy, Poland, Singapore and India. This broad manufacturing network facilitates partnering with global organizations ranging from UNICEF and WHO-Global Drug Facility to European and American pharmaceutical multinationals, private labelers and distribution chains. Strides has product registrations in over 37 countries around the world and has earned ISO 9001, ISO 14001 and GMP accreditations including USFDA. Strides employs approximately 1,700 people across the globe. Strides also has a marketing presence in over 50 countries.

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Any individual who chooses to invest in any securities should do so with caution. Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested. Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

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OTCPicks.com is an Internet destination for investors seeking information on smallcap and microcap companies. The web site features companies in Profile Campaigns, Executive Interviews and Profile Research Reports authored by our financial writers. We publish a daily Newsletter to subscribers, and we publish our Daily Market Movers Digest which is sent out on the M2 Presswire several times daily highlighting hot OTC and OTCBB stocks. To feature a company on our web site or in our daily Newsletter or Market Mover's Digest, please contact our publisher, Brian Dean at 972-546-3740, or via email at publisher@otcpicks.com.

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The information contained herein contains forward-looking information within the meaning of Section 27A of the Securities Act of 1993 and Section 21E of the Securities Exchange Act of 1934 including statements regarding expected continual growth of the company and the value of its securities. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 it is hereby noted that statements contained herein that look forward in time which include everything other than historical information, involve risk and uncertainties that may affect the company's actual results of operation. Factors that could cause actual results to differ include the size and growth of the market for the company's products, the company's ability to fund its capital requirements in the near term and in the long term, pricing pressures, unforeseen and/or unexpected circumstances in happenings, pricing pressures, etc. Investing in securities is speculative and carries risk. Past performance does not guarantee future results.

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For full details on Akorn Inc (AKRX) click here. Akorn Inc (AKRX) has Short Term PowerRatings of 4. Details on Akorn Inc (AKRX) Short Term PowerRatings is available at This Link.

    


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