Horizon Pharma Announces Preliminary Fourth Quarter and Full Year 2012 Revenues, Full U.S. Commercial Launch of RAYOS(R)

Horizon Pharma Announces Preliminary Fourth Quarter and Full Year 2012 
Revenues, Full U.S. Commercial Launch of RAYOS(R) (Prednisone)
Delayed-Release Tablets and Approval of LODOTRA(R) in South Korea 
DEERFIELD, IL -- (Marketwire) -- 02/11/13 --  Horizon Pharma, Inc.
(NASDAQ: HZNP) today announced preliminary (unaudited) revenues for
the fourth quarter and fiscal year ended December 31, 2012.  

--  Full year 2012 preliminary gross and net revenues were $23.0 million
    and $19.6 million, respectively.
--  DUEXIS(R) full year 2012 preliminary gross and net revenues were
    $13.2 million and $11.0 million, respectively.
--  Fourth quarter preliminary gross and net revenues were $8.2 million
    and $6.7 million, respectively.
--  DUEXIS fourth quarter preliminary gross and net revenues were $7.1
    million and $6.0 million, respectively.
--  New prescriptions for DUEXIS increased 57% in the fourth quarter of
    2012 to 31,130 versus 19,874 in the third quarter of 2012. New
    prescriptions for DUEXIS were 10,754 in December 2012.
--  Total prescriptions for DUEXIS increased 56% in the fourth quarter of
    2012 to 39,060 versus 25,054 in the third quarter of 2012. Total
    prescriptions for DUEXIS were 13,969 in December 2012.
--  The Company had cash and cash equivalents of $104.1 million at
    December 31, 2012.

During the fourth quarter, the Company changed from recognizing revenue
upon product being dispensed through patient prescriptions to
recognizing revenue when product is sold into the wholesale and
pharmacy channel. Based on approximately one year of minimal product
return quantities and an enhanced ability and historical experience
upon which to monitor DUEXIS inventory levels in the distribution
channel and to assess the relative risk of potential product returns,
the Company believes it now has the ability to reliably estimate
returns and has begun recognizing revenue on the sale of DUEXIS at
the point of sale to the wholesaler. This change in timing of revenue
recognition resulted in a preliminary one-time increase to DUEXIS
revenue of $1.8 million gross and $1.4 million net and is reflected
in the fourth quarter and full year results presented. 
Full RAYOS Commercial Launch Underway
 Horizon also announced today
it has initiate
d the full commercial launch of RAYOS(R) (prednisone)
delayed-release tablets to rheumatologists and high-value primary
care physicians through its full 150-person sales force. As
previously announced, Horizon's commercial effort for RAYOS will
focus on rheumatology indications, including rheumatoid arthritis
(RA) and polymyalgia rheumatica (PMR), which collectively comprise
approximately three million patients in the U.S. The Company's sales
representatives will promote RAYOS to approximately 3,500
rheumatologists in the U.S., who write over ninety-five percent of
rheumatologist RA and PMR prescriptions. 
In addition, the Company announced the approval of LODOTRA in South
Korea in January, which triggered a milestone payment from its
partner MundiPharma. The South Korean approval marks the 20th country
in which LODOTRA is approved outside of the United States. 
"Preliminary results were promising in the fourth quarter, with total
fourth quarter DUEXIS prescriptions growing 56% versus the third
quarter of 2012," said Timothy P. Walbert, chairman, president and
chief executive officer, Horizon Pharma. "In addition, feedback from
the initial launch of RAYOS has been positive as we saw over 100
rheumatologists prescribe RAYOS during our targeted launch in
December last year. This gives us confidence moving forward as we
have now implemented the full commercial launch of RAYOS through our
150-person sales force." 
 DUEXIS(R), a proprietary single-tablet combination of
the NSAID ibuprofen and the histamine H2-receptor antagonist
famotidine, is indicated for the relief of signs and symptoms of
rheumatoid arthritis and osteoarthritis and to decrease the risk of
developing upper gastrointestinal ulcers, which in the clinical
trials was defined as a gastric and/or duodenal ulcer, in patients
who are taking ibuprofen for those indications. The clinical trials
primarily enrolled patients less than 65 years of age without a prior
history of gastrointestinal ulcer. Controlled trials do not extend
beyond 6 months. For more information, please visit www.DUEXIS.com.  
 RAYOS(R), known as LODOTRA(R) outside the U.S., is a
proprietary delayed-release formulation of low-dose prednisone. The
pharmacokinetic profile of RAYOS is different with an approximately
four-hour lag time from that of immediate-release prednisone
formulations. In clinical trials studying use of RAYOS in RA,
patients were administered RAYOS at 10 p.m. with food. The
delayed-release profile of RAYOS helps to achieve therapeutic
prednisone blood levels at a time point when cytokine levels start
rising during the middle of the night. While the pharmacokinetic
profile of RAYOS differs in terms of lag time from immediate-release
prednisone, its absorption, distribution and elimination processes
are comparable. For more information, please visit www.RAYOSrx.com.  
About Horizon Pharma
 Horizon Pharma, Inc. is a specialty
pharmaceutical company that has developed and is commercializing
DUEXIS and RAYOS/LODOTRA, both of which target unmet therapeutic
needs in arthritis, pain and inflammatory diseases. The Company's
strategy is to develop, acquire, in-license and/or co-promote
additional innovative medicines where it can execute a targeted
commercial approach in specific therapeutic areas while taking
advantage of its commercial strengths and the infrastructure the
Company has put in place. For more information, please visit
Forward Looking Statements
 This press release contains
forward-looking statements, including statements regarding Horizon's
on-going commercial launches of DUEXIS and RAYOS, commercialization
plans for DUEXIS and RAYOS and the timing for implementing those
plans and confidence regarding 2013 operating results. 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, including, but not limited to, risks
regarding the company's ability to commercialize products
successfully, potential delays or changes in strategy for the
commercial launch of DUEXIS and RAYOS, whether physicians will
e and patients will use DUEXIS and RAYOS and competition in
the market for the Company's products. For a further description of
these and other risks facing Horizon, please see the risk factors
described in Horizon'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. Horizon undertakes
no obligation to update or revise these statements, except as may be
required by law.  
The financial information set forth in this press release reflect
Horizon's preliminary estimates, which are subject to completion of
Horizon's fourth quarter and year-end review and audit process.
Horizon's actual fourth quarter and full year 2012 financial and
operating results could differ materially from the preliminary
estimates set forth in this press release. 
Robert J. De Vaere
Executive Vice President and Chief Financial Officer
Kathy Galante
Burns McClellan, Inc.
Press spacebar to pause and continue. Press esc to stop.