Horizon Pharma Announces Third Quarter 2012 Financial Results

Horizon Pharma Announces Third Quarter 2012 Financial Results and
Provides Business Update 
Conference Call and Webcast Today, November 13th, at 8:00 a.m. ET 
DEERFIELD, IL -- (Marketwire) -- 11/13/12 --  Horizon Pharma, Inc.
(NASDAQ: HZNP) today provided an update on the Company's business and
announced financial results for the third quarter and nine months
ended September 30, 2012. 
Financial Results and Other Recent Highlights 


 
--  Gross and net sales for the third quarter of 2012 were $7.3 million
    and $6.5 million, respectively.
--  In September 2012, the Company completed a public equity offering
    which resulted in net proceeds of approximately $81.0 million.
--  Cash balance at the end of the third quarter was $121.3 million.
--  In early October 2012, the Company announced it had completed its
    internal sales force expansion from approximately 80 field sales
    representatives to 150 representatives.
--  In late September and mid-October, the Company announced additional
    patents covering DUEXIS and RAYOS in the United States.

  
DUEXIS(R) Highlights 


 
--  Gross and net sales of DUEXIS in the third quarter of 2012 were $3.0
    and $2.6 million, respectively, a 63% increase in net sales versus the
    second quarter of 2012.
--  According to monthly data from Source Healthcare Analytics (SHA),
    formerly Wolters Kluwer, total prescriptions for the third quarter of
    2012 were 25,054 compared to 18,805 total prescriptions for the second
    quarter of 2012, an increase of 33%.
--  According to monthly data from SHA, total prescriptions for September
    2012 were 9,282, an increase of 10% versus August 2012 and an increase
    of 33% versus August 2012 after normalizing for selling days per
    month.
--  As of October 1, 2012, as a result of the Company's sales force
    expansion and the Mallinckrodt co-promotion agreement, the called-on
    physician targets for DUEXIS increased five-fold, to fifty thousand,
    compared to the ten thousand physician targets the Company's original
    80 sales representatives were able to cover.

  
RAYOS(R) Highlights 


 
--  RAYOS (prednisone) delayed-release tablets were approved by the FDA on
    July 26, 2012 to treat a broad range of diseases including rheumatoid
    arthritis (RA) and polymyalgia rheumatica (PMR).
--  The Company's initial launch focus will be on rheumatology
    indications, including RA and PMR.
--  Based on the extent of the approved indications, the Company will be
    developing a broader commercial strategy to expand the opportunity for
    RAYOS in key IL-6 mediated diseases, including asthma and COPD.
--  Initial launch focus of RAYOS in the U.S. will be to a high-value
    subset of rheumatologists in the fourth quarter of 2012 to be followed
    by the full launch to the majority of U.S. rheumatologists and primary
    care physicians in late January of 2013.

  
"With our sales force expansion complete and recent DUEXIS U.S.
co-promotion agreement with Mallinckrodt, which together increase the
number of called upon physicians for DUEXIS five-fold, our U.S.
approval of RAYOS, and the capital to operate from our recent
financing, we are well positioned to drive top line revenue moving
forward," said Timothy P. Walbert, chairman, president and chief
executive officer, Horizon Pharma. "We have already begun to see
accelerated growth in recent DUEXIS weekly prescriptions and we look
forward to the RAYOS launch contributing to top line growth as we
head into 2013." 
Third Quarter Financial Results 
For the third quarter ended September 30, 2012, gross and net sales
were $7.3 million and $6.5 million, respectively, compared to $0.3
million in gross and net sales for the third quarter of 2011. DUEXIS
gross sales were $3.0 million and net sales were $2.6 million after
deducting trade discounts and allowances of $0.1 million and co-pay
assistance costs of $0.3 million, and represented 41% of gross sales
and 40% of net sales during the quarter ended September 30, 2012.
LODOTRA gross sales were $4.3 million and net sales were $3.9 million
after deducting trade discounts and allowances of $0.4 million during
the quarter ended September 30, 2012. The $4.1 million increase in
LODOTRA sales during the third quarter of 2012 compared to the same
period in the prior year was the result of higher product shipments
and recognition of deferred revenues to the Company's distribution
partner, Mundipharma. The Company has determined that the shipment of
DUEXIS to wholesale distributors and retail chains does not currently
meet the criteria for revenue recognition at the time of shipment
which requires a reliable estimate of returns based on history and
therefore continues to defer DUEXIS revenue recognition until the
right of return no longer exists, which currently is the earlier of
DUEXIS being dispensed through patient prescriptions or the
expiration of the right of return. As of September 30, 2012, the
Company had $1.4 million in deferred revenue on its balance sheet
related to DUEXIS shipments. 
Net loss for the quarter ended September 30, 2012, was $17.0 million,
or $0.47 per share based on 35,972,657 weighted average shares
outstanding, compared to a net loss of $17.2 million, or $1.30 per
share based on 13,256,189 weighted average shares outstanding, in the
quarter ended September 30, 2011. The results for the third quarter
ended September 30, 2012, include a one-time tax benefit of $4.3
million related to approval of RAYOS in July 2012. The approval
resulted in a reclassification and amortization of certain intangible
assets and an assessment of the Company's deferred tax positions
resulting in a reduction of current valuation allowances and
recognition of a one-time net income tax benefit.  
Non-GAAP net loss for the quarter ended September 30, 2012, was $13.9
million, or $0.39 per share, compared to a non-GAAP net loss of $15.6
million, or $1.18 per share, in the third quarter of 2011. Horizon
provides non-GAAP financial measures, which it believes can enhance
an overall understanding of Horizon's financial performance when
considered together with GAAP figures. Refer to the section of this
press release below entitled "Note Regarding Use of Non-GAAP
Financial Measures" for a full discussion on this subject. The
Company had cash and cash equivalents of $121.3 million at September
30, 2012.  
Research and development expenses decreased $1.5 million, from $5.3
million during the three months ended September 30, 2011, to $3.8
million during the three months ended September 30, 2012. The
decrease in research and development expenses during the current
period was primarily associated with a $1.9 million reduction in
regulatory submission fees and clinical trial expenses and a $0.3
million reduction in consulting fees, which was partially offset by a
$0.7 million increase in salaries and benefits expense as a result of
additional staffing and personnel expenses, primarily related to
staffing the Company's medical affairs group which supports
scientific publications, health outcomes medical education and
information and medical communications. 
Sales and marketing expenses during the current quarter increased
$7.9 million, from $5.1 million during the three months ended
September 30, 2011, to $13.0 million during the three months ended
September 30, 2012. The increase in expense was primarily
attributable to ongoing sales and promotional efforts related to the
Company's DUEXIS product launch and pre-launch activities of RAYOS,
which included a $4.8 million increase in salaries and benefits
expense associated with additional staffing of the Company's sales
and marketing functions, including the Company's sales force
expansion, a $2.1 million increase in market research and marketing
programs and a $1.0 million increase in consulting and outside
service costs. 
General and administrative expenses during the 2012 period increased
$0.5 million, from $4.2 million during the three months ended
September 30, 2011, to $4.7 million during the three months ended
September 30, 2012. The increase in general and administrative
expenses was primarily due to a $0.4 million increase in salaries,
benefits and stock compensation expense associated with additional
finance and administrative personnel as the Company built out its
corporate infrastructure, a $0.3 million increase in legal costs
associated with intellectual property related matters and a $0.2
million increase in facility costs associated with higher rent and
insurance costs, partially offset by a $0.4 million reduction in
consulting expenses during the third quarter of 2012. 
Interest expense, net increased $2.3 million during the 2012 period,
from $1.0 million during the three months ended September 30, 2011,
to $3.3 million during the three months ended September 30, 2012,
primarily as a result of incremental interest expense associated with
higher borrowing balances under the Company's $60.0 million senior
secured loan, compared to an outstanding notes payable balance of
$19.9 million in the prior year period.  
During the three months ended September 30, 2012, the Company
reported a foreign exchange gain of $0.6 million, compared to a
foreign exchange loss of $0.8 million during the three months ended
September 30, 2011. The foreign exchange gain during the third
quarter of 2012 was associated with an increase in the value of the
Euro against the U.S. dollar during the three months ended September
30, 2012, which resulted in a favorable currency impact for the
Company's Horizon Pharma AG subsidiary. 
Income tax benefit increased $4.3 million, from $0.2 million during
the three months ended September 30, 2011, to $4.5 million during the
three months ended September 30, 2012. The increase in income tax
benefit was due to a one-time income tax benefit of $4.3 million
recorded during the third quarter of 2012. In connection with the FDA
approval of RAYOS on July 26, 2012, the Company reclassified its
indefinite-lived in-process research & development, or IPR&D,
intangible asset to a finite-lived developed technology intangible
asset and began amortizing the asset to cost of goods sold during the
third quarter of 2012. The reclassification to developed technology
required the Company to reassess its deferred tax positions, which
indicated that it was more likely than not that a greater portion of
its deferred tax assets would be realized as a result of the
reclassification of the Company's intangible asset from
indefinite-lived to finite-lived. As a result of this assessment, the
Company reduced its deferred tax asset valuation allowances, which
resulted in a corresponding reduction to its net deferred tax
liabilities and the recognition of a one-time net income tax benefit
of $4.3 million that was recorded as an additional benefit for income
taxes during the three months ended September 30, 2012. 
Year-to-Date Financial Results 
For the nine months ended September 30, 2012, gross and net sales
were $14.8 million and $12.9 million, respectively, compared to $3.4
million in gross and net sales for the nine months ended September
30, 2011. DUEXIS gross sales were $6.2 million and net sales were
$5.1 million after deducting trade discounts and allowances of $0.4
million and co-pay assistance costs of $0.7 million, and represented
42% of gross sales and 39% of net sales during the nine months ended
September 30, 2012. LODOTRA gross sales were $8.6 million and net
sales were $7.8 million after deducting trade discounts and
allowances of $0.9 million during the nine months ended September 30,
2012. The $5.2 million increase in LODOTRA sales during the nine
months ended September 30, 2012 compared to the same period in the
prior year was the result of higher product shipments and the
recognition of deferred revenues to the Company's distribution
partner, Mundipharma.  
Net loss for the nine months ended September 30, 2012, was $63.5
million, or $2.03 per share based on 31,227,336 weighted average
shares outstanding, compared to a net loss of $36.5 million, or $6.69
per share based on 5,458,561 weighted average shares outstanding,
during the nine months ended September 30, 2011. The results for the
nine months ended September 30, 2012, include a one-time tax benefit
of $4.3 million related to the approval of RAYOS in July 2012. The
approval resulted in a reclassification and amortization of certain
intangible assets and an assessment of the Company's deferred tax
positions resulting in a reduction of current valuation allowances
and recognition of a one-time net income tax benefit.  
Non-GAAP net loss for the nine months ended September 30, 2012 was
$55.1 million, or $1.76 per share, compared to non-GAAP net loss of
$29.6 million, or $5.41 per share, during the nine months of 2011.
Refer to the section of this press release below entitled "Note
Regarding Use of Non-GAAP Financial Measures". 
Research and development expenses increased $0.6 million, from $11.5
million during the nine months ended September 30, 2011, to $12.1
million during the nine months ended September 30, 2012. The increase
in research and development expenses was primarily associated with a
$2.3 million increase in salaries and benefits expense and $0.8
million in medical education and related grants, which was offset by
a $2.1 million reduction in regulatory submission fees and clinical
studies expenses and $0.4 million in lower consulting fees.  
Sales and marketing expenses increased $27.1 million, from $7.4
million during the nine months ended September 30, 2011, to $34.5
million during the nine months ended September 30, 2012. The increase
was primarily attributable to the staffing of the Company's field
sales organization and marketing functions, which resulted in $15.3
million in higher salaries and benefits expenses. In addition, sales
and promotional expenses in support of the Company's DUEXIS product
launch and pre-launch activities related to RAYOS during the nine
months ended September 30, 2012 were higher compared to the prior
year period as a result of increases of $6.6 million in advertising
and promotional expenses, $2.6 million in samples and marketing
expenses, $1.6 million in consulting fees and market research
expenses of $1.0 million. 
General and administrative expenses increased $3.8 million, from
$10.6 million during the nine months ended September 30, 2011, to
$14.4 million during the nine months ended September 30, 2012. The
increase in general and administrative expenses were due to a $1.9
million increase in salaries and benefits expense as a result of
additional finance and administrative personnel as the Company built
out its corporate infrastructure, $1.1 million in higher legal and
consulting costs associated with intellectual property related
matters and a $0.8 million increase in facility costs associated with
higher rent and insurance 
expense. 
Interest expense, net increased $5.6 million, from $5.5 million
during the nine months ended September 30, 2011, to $11.1 million
during the nine months ended September 30, 2012. The increase in
interest expense was primarily attributable to higher borrowing
balances under the Company's $60.0 million senior secured loan
compared to the prior year and higher debt extinguishment costs.
During the nine months ended September 30, 2011, there was a $1.9
million charge related to the loss on extinguishment of the Company's
prior debt facility with Kreos Capital III (UK) Limited and Silicon
Valley Bank, compared to a $2.5 million charge related to
extinguishment of the Company's debt facility with Oxford Finance LLC
and Silicon Valley Bank and the Company's debt facility with Kreos
Capital III (UK) Limited during the nine months ended September 30,
2012.  
Note Regarding Use of Non-GAAP Financial Measures 
Horizon provides non-GAAP net income (loss) and net income (loss) per
share financial measures that include adjustments to GAAP figures.
These adjustments to GAAP exclude non-cash items such as stock
compensation and depreciation and amortization, non-cash interest
expense, and other non-cash charges. Horizon believes that these
non-GAAP financial measures, when considered together with the GAAP
figures, can enhance an overall understanding of Horizon's financial
performance. The non-GAAP financial measures are included with the
intent of providing investors with a more complete understanding of
operational results and trends. In addition, these non-GAAP financial
measures are among the indicators Horizon's management uses for
planning and forecasting purposes and measuring the Company's
performance. These non-GAAP financial measures should be considered
in addition to, and not as a substitute for, or superior to,
financial measures calculated in accordance with GAAP. The non-GAAP
financial measures used by the Company may be calculated differently
from, and therefore may not be comparable to, non-GAAP financial
measures used by other companies. Please refer to the financial
statements portion of this press release for a reconciliation of
these non-GAAP financial measures to the comparable GAAP financial
measures. 
Conference Call 
At 8:00am Eastern Time today, Horizon's management will host a live
conference call and webcast to review the Company's financial and
operating results and provide a general business update.  
The live webcast and a replay may be accessed by visiting Horizon's
website at http://ir.horizon-pharma.com. Please connect to the
Company's website at least 15 minutes prior to the live webcast to
ensure adequate time for any software download that may be needed to
access the webcast. Alternatively, please call 1-888-338-8373 (U.S.)
or 973-872-3000 (international) to listen to the conference call. The
conference ID number for the live call is 36414974. Telephone replay
will be available approximately two hours after the call. To access
the replay, please call 1-855-859-2056 (U.S.) or 404-537-3406
(international). The conference ID number for the replay is 36414974. 
About Horizon Pharma 
Horizon Pharma, Inc. is a biopharmaceutical company that is
developing and commercializing innovative medicines to target unmet
therapeutic needs in arthritis, pain and inflammatory diseases. For
more information, please visit www.horizonpharma.com. 
Forward-Looking Statements 
This press release contains forward-looking statements, including
statements regarding the on-going commercial launch of DUEXIS,
development of commercial strategies to expand the opportunity for
RAYOS in key IL-6 mediated diseases, the expected timeline for
commercial launch of RAYOS in the United States, the initial focus of
the RAYOS launch in the United States, and potential increases in
top-line revenues. These forward-looking statements are based on
management's expectations and assumptions as of the date of this
press release, and actual results may differ materially from those in
these forward-looking statements as a result of various factors.
These factors include, but are not limited to, risks regarding
Horizon's ability to commercialize products successfully, whether
commercial data regarding DUEXIS in the United States for any
historic periods are indicative of future results, Horizon's ability
to successfully manage contract sales and marketing personnel,
potential delays or changes in strategy for the commercial launch of
RAYOS, Horizon's ability to comply with any post-approval regulatory
requirements, and the need to potentially obtain additional financing
to successfully commercialize or further develop DUEXIS and
RAYOS/LODOTRA. For a further description of these and other risks
facing the Company, please see the risk factors described in the
Company's filings with the United States Securities and Exchange
Commission, including those factors discussed under the caption "Risk
Factors" in those filings. Forward-looking statements speak only as
of the date of this press release and the Company undertakes no
obligation to update or revise these statements, except as may be
required by law. 


 
                                                                            
                                                                            
                            Horizon Pharma, Inc.                            
                   Condensed Consolidated Balance Sheets                    
              (in thousands, except share and per share data)               
                                                                            
                                                           As of            
                                               ---------------------------- 
                                               September 30,   December 31, 
                                                    2012           2011     
                                               -------------  ------------- 
Assets                                                  (Unaudited)         
Current assets                                                              
  Cash and cash equivalents                    $     121,326  $      17,966 
  Restricted cash                                        800            750 
  Accounts receivable, net                             5,979          2,372 
  Inventories, net                                     3,666          1,195 
  Prepaid expenses and other current assets            4,334          2,763 
                                               -------------  ------------- 
    Total current assets                             136,105         25,046 
  Property and equipment, net                          3,620          3,245 
  Developed technology, net                           68,647         35,602 
  In-process research and development                      -         36,638 
  Other assets                                         3,971            547 
               
                                -------------  ------------- 
    Total assets                               $     212,343  $     101,078 
                                               =============  ============= 
Liabilities and Stockholders' Equity                                        
  Current liabilities                                                       
  Accounts payable                             $       6,854  $       8,170 
  Accrued expenses                                    12,613          8,926 
  Deferred revenues - current portion                  3,584          3,281 
  Notes payable - current portion                      7,957          3,604 
                                               -------------  ------------- 
    Total current liabilities                         31,008         23,981 
Long-term liabilities                                                       
  Notes payable, net of debt discount                 39,366         15,834 
  Deferred revenues, net of current                    8,814          5,666 
  Deferred tax liabilities, net                        4,615          9,561 
  Other long term liabilities                            123            124 
                                               -------------  ------------- 
    Total liabilities                                 83,926         55,166 
                                               -------------  ------------- 
                                                                            
Commitments and Contingencies                                               
                                                                            
Stockholders' equity                                                        
  Common stock, $0.0001 par value per share;                                
   200,000,000 shares authorized; 61,038,167                                
   and 19,627,744 shares issued and                                         
   outstanding at September 30, 2012 and                                    
   December 31,                                                             
  respectively.                                            6              2 
  Additional paid-in capital                         416,325        270,015 
  Accumulated other comprehensive loss                (4,136)        (3,788)
  Accumulated deficit                               (283,778)      (220,317)
                                               -------------  ------------- 
    Total stockholders' equity                       128,417         45,912 
                                               -------------  ------------- 
    Total liabilities and stockholders' equity $     212,343  $     101,078 
                                               =============  ============= 
                                                                            
                                                                            
                                             
                               
                            Horizon Pharma, Inc.                            
              Condensed Consolidated Statements of Operations               
              (in thousands, except share and per share data)               
                                                                            
                           For the Three Months       For the Nine Months   
                                   Ended                     Ended          
                               September 30,             September 30,      
                         ------------------------  ------------------------ 
                             2012         2011         2012         2011    
                         -----------  -----------  -----------  ----------- 
                                (Unaudited)               (Unaudited)       
Revenues                                                                    
Sales of goods           $     7,260  $       233  $    14,671  $     3,290 
Contract revenue                  51           40          156          111 
                         -----------  -----------  -----------  ----------- 
    Gross sales                7,311          273       14,827        3,401 
Sales discounts and                                                         
 allowances                     (790)           -       (1,942)           - 
                         -----------  -----------  -----------  ----------- 
    Net sales                  6,521          273       12,885        3,401 
                         -----------  -----------  -----------  ----------- 
                                                                            
Cost of goods sold             3,810        1,249        8,732        5,191 
                         -----------  -----------  -----------  ----------- 
Gross profit (loss)            2,711         (976)       4,153       (1,790)
Operating Expenses                                                          
  Research and                                                              
   development                 3,796        5,346       12,098       11,536 
  Sales and marketing         12,951        5,141       34,466        7,426 
  General and                                                               
   administrative              4,678        4,192       14,436       10,640 
                         -----------  -----------  -----------  ----------- 
    Total operating                                                         
     expenses                 21,425       14,679       61,000       29,602 
                         -----------  -----------  -----------  ----------- 
Operating loss               (18,714)     (15,655)     (56,847)     (31,392)
                                                                            
Interest expense, net         (3,339)        (995)     (11,081)      (5,465)
Other expense                      -            -          (56)           - 
Foreign exchange gain                                                       
 (loss)                          588         (758)        (312)        (226)
                         -----------  -----------  -----------  ----------- 
Loss before benefit for                                                     
 income taxes                (21,465)     (17,408)     (68,296)     (37,083)
Income tax benefit            (4,512)        (177)      (4,835)        (545)
                         -----------  -----------  -----------  ----------- 
Net loss                 $   (16,953) $   (17,231) $   (63,461) $   (36,538)
                         ===========  ===========  ===========  =========== 
                                                                            
Net loss per share-                                                         
 basic and diluted       $     (0.47) $     (1.30) $     (2.03) $     (6.69)
                         -----------  -----------  -----------  ----------- 
Weighted average shares                                                     
 outstanding                                                                
used in calculating net                                                     
 loss per                                                                   
share - basic and                                                           
 diluted                  35,972,657   13,256,189   31,227,336    5,458,561 
                         -----------  -----------  -----------  ----------- 
                                                                            
                                                                            
                                                                            
                            Horizon Pharma, Inc.                            
            Reconciliation of GAAP Net Loss to Non-GAAP Net Loss            
              (in thousands, except share and per share data)               
                                                                            
                             Three Months Ended        Nine Months Ended    
                                September 30,            September 30,      
                          ------------------------  ----------------------- 
                              2012         2011         2012        2011    
                          -----------  -----------  -----------  ---------- 
                                                                            
                                 (Unaudited)              (Unaudited)       
GAAP Net Loss             $   (16,953) $   (17,231) $   (63,461) $  (36,538)
Non-GAAP Adjustments (net                                                   
 of tax effect):                                                            
   Amortization of                                                          
    developed technology        1,072          766        2,469       2,282 
   Stock-based                                                              
    compensation                1,172          601        3,662       1,827 
   Non-cash interest                                                        
    expense                       658          210        1,827       2,683 
   Depreciation expense           167          104          559         305 
   Amortization of                                                          
    deferred revenue              (51)         (40)        (156)       (111)
                          -----------  -----------  -----------  ---------- 
      Total of non-GAAP                                                     
       adjustments              3,018        1,641        8,361       6,986 
                          -----------  -----------  -----------  ---------- 
Non-GAAP Net Loss         $   (13,935) $   (15,590) $   (55,100) $  (29,552)
                          ===========  ===========  ===========  ========== 
                                                                            
Weighted average shares -                                                   
 basic and diluted         35,972,657   13,256,189   31,227,336   5,458,561 
                                                                            
GAAP net loss per common                                                    
 share-basic and diluted  $     (0.47) $     (1.30) $     (2.03) $    (6.69)
   Non-GAAP adjustments                                                     
    detailed above               0.08         0.12         0.27        1.28 
                          -----------  -----------  -----------  ---------- 
Non-GAAP net loss per                                                       
 common share-basic and                                                     
 diluted                  $     (0.39) $     (1.18) $     (1.76) $    (5.41)
                          ===========  ===========  ===========  ========== 
                                                                            
                                                                            
                                                                            
                            Horizon Pharma, Inc.                            
              Condensed Consolidated Statements of Cash Flows               
                               (in thousands)                               
                                                                            
                                            Nine Months Ended September 30, 
                                           -------------------------------- 
                                                 2012             2011      
                                           ---------------  --------------- 
                                                      (Unaudited)           
Cash flows from operating activities                                        
Net loss                                   $       (63,461) $       (36,538)
Adjustments to reconcile net loss to net                                    
 cash used in operating activities                                          
   Depreciation and amortization                     3,648            3,071 
   Stock-based compensation                          3,662            1,827 
   Non-cash interest expense                         1,827            2,499 
   Paid in kind interest expense                     1,860                - 
   Loss on disposal of assets                           76                - 
   Foreign exchange loss                               312              226 
   Changes in operating assets and                                          
    liabilities:                                                            
      Accounts receivable                           (3,600)             342 
      Inventories                                   (2,475)            (838)
      Prepaid expenses and other current                           
         
       assets                                       (1,577)            (706)
      Accounts payable                              (1,314)           1,180 
      Accrued expenses                               2,937              656 
      Deferred revenues                              3,498            1,909 
      Deferred tax liabilities                      (4,866)            (567)
                                           ---------------  --------------- 
         Net cash used in operating                                         
          activities                               (59,473)         (26,939)
                                           ---------------  --------------- 
Cash flows from investing activities                                        
Purchase of property and equipment                  (1,012)            (449)
Increase in restricted cash                            (50)            (250)
                                           ---------------  --------------- 
         Net cash used in investing                                         
          activities                                (1,062)            (699)
                                           ---------------  --------------- 
Cash flows from financing activities                                        
Proceeds from issuance of notes payable,                                    
 net of issuance costs                              55,578           16,651 
Proceeds from equity finance offerings,                                     
 net of offering costs                             128,092                - 
Proceeds from the issuance of common stock                                  
 in initial public offering, net of                                         
 underwriting fees and issuance costs                    -           46,035 
Repayment of notes payable                         (19,780)         (12,747)
Proceeds from the issuance of common stock             296                - 
Deferred financing expenses                              -           (1,637)
Proceeds from issuance of bridge notes                                      
 payable to related parties                              -            6,766 
Proceeds from stock option exercises                     -               45 
                                           ---------------  --------------- 
         Net cash provided by financing                                     
          activities                               164,186           55,113 
                                           ---------------  --------------- 
Effect of exchange rate changes on cash                                     
 and cash equivalents                                 (291)             138 
         Net increase in cash and cash                                      
          equivalents                              103,360           27,613 
Cash and cash equivalents                                                   
Beginning of period                                 17,966            5,384 
                                           ---------------  --------------- 
End of period                              $       121,326  $        32,997 
                                           ===============  =============== 

  
Contacts
Robert J. De Vaere
Executive Vice President and Chief Financial Officer 
investor-relations@horizonpharma.com  
Investors
Kathy Galante
Burns McClellan, Inc.
212-213-0006
kgalante@burnsmc.com