aaiPharma’s continuing search to reduce costs and generate cash could include the sale of its pharmaceutical division, the company disclosed Friday.

In an SEC filing announced after the markets closed, Wilmington-based aaiPharma said that “the Company intends to explore the divestiture of its Pharmaceuticals Division, and certain related assets.”

aaiPharma has already laid off some 10 percent of its workforce and made other changes in its structure as part of the continuing fallout from financial irregularities over the past year. aaiPharma (Nasdaq : AAII) restated earnings for 2002 and 2003 and has also changed out much of its senior management team.

The stock closed at $1.65 on Friday, down 3 cents. That’s 52-cents higher than the recent 52-week low but a scant portion of the 52-week high of $31.85. The company’s market cap has plunged in value to $47.17 million.

Ludo Reynders, a former executive at Quintiles, took over as CEO of aaiPharma on Sept. 28. Founder and CEO Fred Sancilio, who returned to the CEO role after the financial problems surfaced, stepped down.

On Oct. 6, aaiPharma said it was exploring asset sales.

On Oct. 12, the company sought waivers for its credit facility, saying a $10 million interest payment due on Oct. 1 could not be paid.

In its latest filing, aaiPharma said it wanted to increase it senior debt facility by $30 million. Senior lenders have endorsed the move, but aaiPharma bondholders must still approve it, the company said. Note holders that agree to the deal will be paid a “consent fee” of $5 for each $1,000 of notes held, aaiPharma said in the filing.

“These steps will allow management to meet the company’s financial obligations and focus the company on improving and growing its development operations,” Reynders said in a statement.

aaiPharma: www.aaiPharma.com