$12.6 million as of September 30, 2006. Following the third quarter of
2007, MiddleBrook entered into an agreement with Deerfield Management
resulting in the addition of $7.5 million of gross proceeds to the
Company. MiddleBrook used a portion of the proceeds from this
financing to retire the Company's outstanding credit facility of
approximately $4.6 million.
-- Deferred product revenue. Due to the Company's corporate name change on
June 28, 2007, inventories of products on hand at that time were
required to be relabeled. At the end of the second quarter 2007, the
Company offered a one-time incentive to wholesalers to purchase up to a
two-month supply of Keflex products, to avoid stock-out situations at
wholesalers during the relabeling process. This incentive offer
resulted in orders of approximately $2.0 million of gross sales.
Revenue recognition for this transaction was deferred as of June 30,
2007, and the Company recognized net revenue of $1.8 million during the
third quarter of 2007, the period when the related product was sold by
FINANCIAL GUIDANCE AND FUTURE CASH REQUIREMENTS
As previously announced, in order to preserve corporate resources, the Company has undertaken cost reductions during 2007, including personnel reductions, postponement of PULSYS clinical development programs other than Amoxicillin PULSYS for adults, and elimination of other discretionary spending.
Total revenue for 2007 is expected to be approximately $10 million to $12 million, resulting from Keflex product sales. Total cash used in operating activities and capital expenditures in 2007 is estimated to be between $33 and $35 million.
Assuming the Company's expectations for continued sales of its Keflex
750 mg product and anticipated level of R&D spending and other obligations,
|SOURCE MiddleBrook Pharmaceuticals, Inc.|
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