Research and development costs for the full year 2012 were $45.9 million compared with $61.9 million for the full year 2011. This decrease in expense results principally from a reduction in 2012 of activities related to the development of a larger scale XIAFLEX production process and the completion of the phase III XIAFLEX clinical trials for Peyronie's disease in third quarter 2012, partially offset by spending in 2012 related to the Dupuytren's multi-cord study and new indications for XIAFLEX.
Selling, general and administrative expenses totaled $185.5 million for the year ended December 31, 2012, compared with $179.9 million for the year-ago period. This increase was primarily due to marketing spending for Dupuytren's and for the potential future launch of Peyronie's, increased business development and legal expenses, and costs incurred in 2012 related to the relocation of the company's headquarters, offset in part by costs incurred in 2011 related to management changes.
Auxilium reported net income of $85.9 million, or $1.74 per share, fully diluted, for the full year 2012, compared to a net loss of $(32.9) million, or $(0.69) per share, fully diluted, for the full year 2011. The increase in net income was primarily related to $85.2 million recorded as a result of the previously announced agreement to mutually terminate the Company's European collaboration with Pfizer. Net income for 2012 includes total stock-based compensation expense of $15.0 million, compared to $17.3 million included in the net loss for the full year 2011.
Accounting for Pfizer TerminationAs part of the collaboration agreement we entered into with Pfizer in 2008, we have received up front and milestone cash payments from Pfizer. Our agreement with our licensor for XIAFLEX required that we pay a portion of these amounts to them. These amounts were recorded as deferred revenues and deferred costs, respectively, on our b
|SOURCE Auxilium Pharmaceuticals, Inc.|
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