Third Quarter 2007 Financial Results
NPS reported net income for the third quarter of 2007 of $14.1 million, or $0.28 per diluted share, versus a net loss in the third quarter of 2006 of $21.1 million, or $0.45 per diluted share. The third quarter profit in 2007, versus a loss in the same period of 2006, reflects aggressive expense reduction measures, increased revenues from royalties and product sales, and gains from the sale of fixed assets related to site closures in Salt Lake City and Toronto.
Revenues for the third quarter of 2007 grew 190% to $29.2 million from revenues of $10.1 million in the third quarter of 2006. Increased revenues are primarily the result of higher royalty revenue earned from Amgen on sales of cinacalcet HCl and increased product sales, royalty and milestone revenue earned from Nycomed on sales of Preotact(R).
Research and development expenses for the third quarter of 2007 declined 61% to $5.4 million compared to $13.7 million for the same period of 2006. These changes are primarily due to decreased clinical development activity for PREOS, reductions in personnel, and associated cash and stock compensation, and lower pre-approval manufacturing expenses associated with PREOS, offset by higher pre-approval manufacturing expenses associated with GATTEX.
Selling, general and administrative expenses for the third quarter 2007 declined 23% to $5.7 million compared to $7.5 million for the same period in 2006. These decreases are primarily due to reductions in personnel and associated cash and stock compensation.
Restructuring charges for the
|SOURCE NPS Pharmaceuticals, Inc.|
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