MENLO PARK, Calif., Nov. 5, 2012 /PRNewswire/ -- Depomed, Inc. (Nasdaq: DEPO) today reported financial results for the quarter and nine months ended September 30, 2012.
2012 Third Quarter and Recent Business Highlights
"During the third quarter, Gralise prescriptions continued to grow, we relaunched Zipsor, Glumetza royalties for the quarter exceeded $11 million, we expanded our portfolio of license and development agreements with our license to Janssen for Nucynta ER and received a $10 million upfront payment. In October, the FDA accepted our NDA for Serada and set a tentative date for an Advisory Committee. We believe that we are well on our way toward transforming Depomed into a sustainably profitable specialty pharmaceutical company. We are developing a pain franchise with our two marketed products, Gralise and Zipsor. We have a Glumetza royalty stream that should exceed $40 million for 2012, a broad base of six license and development agreements that should provide us significant milestones and royalties over the next several years, a pipeline of product candidates and a strong balance sheet," said Jim Schoeneck, president and chief executive officer of Depomed.
Depomed Third Quarter Financial Highlights
Total revenue for the third quarter of 2012 was $33.3 million, consisting of $4.8 million of Gralise product sales, $4.9 million of Zipsor product sales, $12.2 million of royalties and $11.4 million of license and other revenue. License and other revenue includes recognition of the $10 million upfront payment received from Janssen under the license agreement for Nucynta ER.
This compares to revenues of $16.5 million in the third quarter of 2011. Third quarter 2011 revenues included $9.2 million of Glumetza product sales. Revenues for third quarter 2012 do not reflect any Glumetza product sales as a result of the restructuring of the Santarus agreement in August 2011. Prior to the restructuring of the agreement, Depomed recognized revenues and cost of goods from Glumetza sales and paid Santarus a promotion fee that was included in expenses.
Operating expenses were $33.1 million for the third quarter of 2012. This compares with $24.7 million for third quarter 2011. Operating expenses increased primarily due to sales and marketing expenses associated with Gralise, which was launched in October 2011, and Zipsor which was acquired in June 2012. Operating expenses for the third quarter of 2012 also include $1.0 million of intangible amortization associated with the Zipsor acquisition and one-time research and development expenses of $1.8 million for the NDA filing fee for Serada and $0.6 million for the payment of a license milestone to a licensor of one of the Serada patents. Operating expenses for third quarter 2012 did not reflect any promotion fee expense, compared with $6.0 million in promotion fee expense for third quarter 2011.
Net loss for third quarter 2012 was ($1.5) million, or ($0.03) per share, compared to net loss of ($8.6) million, or ($0.15) per share for third quarter 2011.
Cash, cash equivalents and marketable securities were $87.7 million as of September 30, 2012 compared to $139.8 million as of December 31, 2011.
Depomed will host a conference call today, Monday, November 5, beginning at 5:00 p.m. EST (2:00 p.m. PST) to discuss its results. Participants can access the call by dialing 877-317-6789 (United States) or 412-317-6789 (international). The conference call will also be available via a live webcast on the investor relations section of Depomed's website at http://www.depomed.com. Access the website 15 minutes prior to the start of the call to download and install any necessary audio software. An archived webcast replay will be available on the Company's website for three months.
Depomed, Inc. is a specialty pharmaceutical company with three approved and marketed products. Gralise® (gabapentin) is a once-daily treatment approved for the management of postherpetic neuralgia (PHN). Zipsor ® (diclofenac potassium) Liquid Filled Capsules is a non-steroidal anti-inflammatory drug (NSAID) indicated for relief of mild to moderate acute pain in adults. Glumetza® (metformin hydrochloride extended release tablets) is approved for use in adults with type 2 diabetes and is commercialized by Santarus, Inc. in the United States. Depomed formulates its products and product candidates with its proven, proprietary Acuform® drug delivery technology, which is designed to improve existing oral medications, allowing for extended release of medications to the upper gastrointestinal tract when dosed with food. Additional information about Depomed may be found on its website, www.depomed.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. The statements that are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties including, but not limited to, those related to the commercial launch of Gralise, our ability to sell Zipsor; the efforts of our collaboration partners to commercialize products; and other risks detailed in the company's Securities and Exchange Commission filings, including the company's Annual Report on Form 10-K for the year ended December 31, 2011 and the Quarterly Reports on Form 10-Q for the quarters ended March 31 and June 30, 2012. The inclusion of forward-looking statements should not be regarded as a representation that any of the company's plans or objectives will be achieved. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
August J. Moretti
DEPOMED, INC.CONDENSED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts)(Unaudited) Three Months Ended September 30,Nine Months Ended September 30,2012201120122011Revenues:Product sales$
40,669Royalties12,2012,17931,1992,412License and other revenue11,3975,13818,03377,760Total revenues33,28216,52264,226120,841Costs and expenses:Cost of sales1,7631,1503,7234,925Research and development expense5,2703,20812,27712,405Selling, general and administrative expense:Promotion fee expense—6,023—27,339Other selling, general and administrative expense26,83215,45173,62532,667Total selling, general and administrative expense26,83221,47473,62560,006Amortization of intangible asset958—1,063—Gain on settlement agreement———(40,000)Total costs and expenses34,82325,83290,68837,336Income (loss) from operations(1,541)(9,310)(26,462)83,505Other income (expense)57386405713Benefit from (provision for) income taxes(11)348(20)345Net income (loss)$
84,563Basic net income (loss) per common share$
1.56Diluted net income (loss) per common share$
1.51Shares used in computing basic net income (loss) per common share56,039,18655,371,95455,794,35754,267,829Shares used in computing diluted net income (loss) per common share56,039,18655,371,95455,794,35756,071,870
DEPOMED, INC.CONDENSED BALANCE SHEETS(in thousands, except share amounts) September 30,December 31,20122011(Unaudited)(1)ASSETSCurrent assets:Cash and cash equivalents$
24,043Marketable securities52,53762,106Accounts receivable4,8484,420Receivables from collaborative partners10,0548,135Inventories7,7955,395Prepaid and other current assets2,7485,390Total current assets105,354109,489Marketable securities, long-term7,74953,644Property and equipment, net5,2501,070Intangible assets, net26,037—Other assets526169$
164,372LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities:Accounts payable and accrued liabilities$
26,784Deferred product sales4,5356,960Deferred license revenue5,7816,032Other current liabilities33264Total current liabilities42,88839,840Deferred license revenue, non-current portion13,77017,932Other long-term liabilities2,61682Shareholders' equity:Common stock209,217203,511Accumulated deficit(123,657)(97,580)Accumulated other comprehensive gain (loss)88(13)Total shareholders' equity85,648105,918$
164,372(1) Derived from the audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2011.
|SOURCE Depomed, Inc.|
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