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Cadence Pharmaceuticals Reports Fourth Quarter and Full Year 2012 Financial Results
Date:3/7/2013

st of product sales, as a percentage of sales, for the three and twelve months ended December 31, 2012, was 42% and 46%, respectively. The reduction in costs for the fourth quarter of 2012 as compared to the full year was primarily attributable to expedited freight costs and an inventory write-down that occurred during the first quarter of 2012.  In 2012, the company also improved efficiencies as a result of increased production volumes and a higher net product selling price resulting from a price increase that was implemented in July 2012. The company's cost of product sales during 2012 was negatively impacted by unabsorbed manufacturing costs incurred as a result of idle manufacturing assets held at Baxter.

Research and development expenses for the three months ended December 31, 2012, decreased by $0.8 million to $1.1 million, from $1.9 million for the comparable period in 2011. This reduction was primarily attributable to a workforce restructuring implemented in the fourth quarter of 2011, partially offset by clinical trial expenses incurred during this period in 2012 that were not incurred during 2011. For the twelve months ended December 31, 2012, research and development expenses decreased by $2.4 million to $6.5 million, from $8.9 million for 2011. This reduction was primarily attributable to a workforce restructuring implemented in the fourth quarter of 2011, partially offset by clinical trial expenses incurred in 2012 that were not incurred during 2011, as well as severance obligations related to the departure of two of the company's officers in the third quarter of 2012.

Selling, general and administrative costs for the three months ended December 31, 2012, were $20.0 million compared to $20.5 million for the comparable period in 2011. This reduction was primarily a result of lower sales and marketing expenses incurred during the fourth quarter of 2012, as compared to the same period 2011, and was partially offset by higher legal fees
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SOURCE Cadence Pharmaceuticals, Inc.
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