Furiex Reports First Quarter 2013 Financial Results

  Furiex Reports First Quarter 2013 Financial Results

First Quarter 2013 Highlights:

  *Milestone revenues of $30.0 million for first quarter 2013.
  *Royalty revenues of $9.3 million, an increase of $0.1 million from fourth
    quarter 2012. Yen-based royalties were up 24% vs. the prior quarter on a
    local currency basis.
  *Cash and cash equivalents balance of $36.4 million as of March 31, 2013.

Business Wire

MORRISVILLE, N.C. -- May 07, 2013

Furiex Pharmaceuticals, Inc. (NASDAQ: FURX) today reported its financial and
operating results for the quarter ended March 31, 2013.

Furiex recorded first quarter milestone revenues of $30.0 million. This
revenue was comprised of two milestones earned during the three-month period
ended March 31, 2013. The first was a regulatory milestone of $25.0 million
paid by Takeda Pharmaceutical Company Limited following the approval of three
new alogliptin Type-2 diabetes therapies by the U.S. Food and Drug
Administration. The second was a milestone of $5.0 million paid by the
Menarini Group upon the commercial launch of Priligy in France.

Furiex recorded first quarter royalty revenues of $9.3 million, compared to
$2.6 million for the same period in the prior year and $9.2 million in the
fourth quarter of 2012. Royalty revenue included royalties related to Nesina^®
and Liovel^® sales in Japan, and Priligy^® sales in various countries outside
of the United States.

Research and development expenses were $25.4 million for the quarter ended
March 31, 2013, compared to $9.4 million for the same period in the prior year
and $14.6 million in the fourth quarter of 2012. The increase in research and
development expenses was due predominantly to Phase III costs associated with
the continued development of eluxadoline^1 (previously referred to as
MuDelta).

First quarter selling, general and administrative expenses were $3.9 million
for 2013, compared to $2.7 million for the same period in the prior year and
$2.5 million in the fourth quarter of 2012. The increase in selling, general
and administrative expenses for the quarter was due primarily to a $0.8
million increase in non-cash stock compensation expense, including the
mark-to-market adjustment for non-vested consultant options, and increases in
consulting and legal expenses of $0.2 million.

Interest expense of $1.1 million for the quarter ended March31, 2013 related
entirely to our loan agreement with MidCap Funding III, LLC, Midcap Funding RE
Holdings, LLC and Silicon Valley Bank.

Net income was $9.0 million for the first quarter of 2013, compared to net
loss of $9.8 million for the first quarter of 2012. The changes in net income
during the first quarter of 2013, as compared to the same period in the prior
year, relates primarily to the changes in revenues and expenses previously
discussed.

Net income per basic share for the first quarter of 2013 was $0.89, compared
to net loss per basic share of $0.98 for the first quarter of 2012. Net income
per diluted share for the first quarter of 2013 was $0.82, compared to net
loss per diluted share of $0.98 for the first quarter of 2012.

“Our lead program, eluxadoline, remains on track for a mid-2014 NDA
submission”, said June Almenoff, M.D., Ph.D., president and chief medical
officer of Furiex, “as of May, we had achieved over 70% of the target
enrollment needed to complete the two pivotal studies”.

Fred Eshelman, Pharm.D., chairman of Furiex, added, “Our milestone and
royalty-based portfolio continues to provide an important financial foundation
for our business. In the past twelve months, our collaborations have generated
$77.4 million in milestone and royalty revenue and we look forward to building
on this success with the launch of alogliptin related products in the U.S. and
Priligy in regions outside of the U.S.”

Furiex will conduct a live conference call and webcast Wednesday, May 8, 2013,
at 9:00 a.m. ET to discuss its first quarter 2013 results and financial
outlook for 2013 as well as provide an overview of its business and pipeline.
A Q&A session will follow. All interested parties can access the webcast
through the Presentations & Events link in the Investors section of the Furiex
website at www.furiex.com. The webcast will be archived shortly after the call
for on-demand replay. The conference call will be broadcast live over the
Internet and will also be available using the following direct dial numbers:

Participant dial-in:     +1.877.677.9122 (U.S./Canada)
                             +1.708.290.1401 (International)
                             
Conference ID:               34626629

About Furiex

Furiex Pharmaceuticals is a drug development collaboration company that uses
innovative clinical development design to accelerate and increase value of
drug development programs by advancing them through the drug discovery and
development process in a cost-efficient manner. Our drug development programs
are designed and driven by a core team with extensive drug development
experience. The company collaborates with pharmaceutical and biotechnology
companies and has a diversified product portfolio and pipeline with multiple
therapeutic candidates, including one Phase III-ready asset, two compounds in
Phase III development, one of which is with a partner, and four products on
the market. The company's mission is to develop innovative medicines faster
and at a lower cost, thereby improving profitability and accelerating time to
market while providing life-improving therapies for patients. For more
information, visit www.furiex.com.

Except for historical information, all of the statements, expectations and
assumptions contained in this news release are forward-looking statements that
involve a number of risks and uncertainties. Although Furiex attempts to be
accurate in making these forward-looking statements, it is possible that
future circumstances might differ from the assumptions on which such
statements are based. In addition, other important factors which could cause
actual results to differ materially include the following: the risks and
expense of continuing the research and development activities of our existing
compounds; the risk of finding a collaborator for our late-stage compounds;
progress of compounds in clinical trials and regulatory approvals as it
relates to receiving future milestone payments; inability of our existing
collaborators to effectively market approved products for which we receive
royalty and sales-based milestone payments; continuing losses and our
potential need for additional financing; changes in the safety and efficacy
profile of our existing compounds as they progress through research and
development; potential U.S. Food and Drug Administration changes to its
regulatory guidance; new collaborative agreements that we might enter into in
the future; the costs of defending any patent opposition or litigation
necessary to protect our proprietary technologies; and the other risk factors
set forth from time to time in the SEC filings for Furiex, copies of which can
be found on our website.

^1 United States Adopted NamesCouncil(USAN) adopted, International
Nonproprietary Names (INN) approval pending.

FURIEX
PHARMACEUTICALS,               
INC. AND
SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF
OPERATIONS
(Unaudited)                                                              
(In thousands,
except per share
data)
                                                                                        
                                               Three Months Ended
                                               March 31,
                                               2012                      2013
Revenue:
Milestones                                     $             —            $             30,000
Royalties                                             2,645              9,325
Total revenue                                         2,645              39,325
Research and
development                                                  9,368                      25,363
expenses
Selling, general
and                                                          2,733                      3,873
administrative
expenses
Depreciation
and                                                   21                 22
amortization
Total operating                                       12,122             29,258
expenses
Operating                                                    (9,477 )                   10,067
(loss) income
Interest                                                     275                        1,100
expense
Other income,                                         —                  90
net
(Loss) income
before provision                                             (9,752 )                   9,057
for income taxes
Less provision
for income                                            6                  91
taxes
Net (loss)                                     $       (9,758 )     $       8,966
income
                                                                                        
Net (loss)
income per                                     $       (0.98  )     $       0.89
basic share
Net (loss)
income per                                     $       (0.98  )     $       0.82
diluted share
                                                                                        
Weighted-average
shares used to
compute net                                                  9,949                      10,036
(loss) income
per basic share
Dilutive effect
of stock                                              —                  838
options
Weighted-average
shares used to
compute net                                           9,949              10,874
(loss) income
per diluted
share

                                           
FURIEX PHARMACEUTICALS, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share data)
                                                             
                                            December 31,      March 31,
                                            2012             2013           
Assets
Current assets:
Cash and cash equivalents                   $ 25,718          $     36,421
Accounts receivable, net                      11,745                15,114
Prepaid expenses                             320               238      
Total current assets                          37,783                51,773
Property and equipment, net                   118                   98
Investments                                   7,500                 7,500
Goodwill                                      49,116                49,116
Other assets                                 238               200      
Total assets                                $ 94,755         $   108,687  
                                                                    
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable                            $ 6,604           $     6,099
Accrued expenses                              10,230                12,007
Current portion of long-term debt            5,405             8,649    
Total current liabilities                     22,239                26,755
Long-term debt, net                           34,595                31,351
Other long-term liabilities                  324               392      
Total liabilities                            57,158            58,498   
                                                                             
Common stock, $0.001 par value,
40,000,000 shares authorized;
10,015,297 and 10,114,029                     10                    10

shares issued and outstanding
Preferred stock, $0.001 par value,
10,000,000 shares authorized; no
shares issued or                              —                     —

outstanding
Paid-in capital                               164,577               168,203
Accumulated deficit                          (126,990 )         (118,024 )
Total shareholders’ equity                   37,597            50,189   
Total liabilities and shareholders’         $ 94,755         $   108,687  
equity

Contact:

Furiex Pharmaceuticals, Inc.
Media/Analysts/Investors:
Sailash Patel, 919-456-7814
sailash.patel@furiex.com
 
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