Depomed Reports First Quarter 2013 Financial Results
Conference Call Scheduled for today at 4:30 PM EDT
Updated dial in information included below
NEWARK, Calif., May 8, 2013
NEWARK, Calif., May 8, 2013 /PRNewswire/ --Depomed, Inc. (Nasdaq:DEPO) today
reported financial results for the quarter ended March 31, 2013.
First Quarter 2013 Update
oTotal revenues of $26.2 million, an increase of 55% over first quarter
oGralise^® (gabapentin) net sales of $6.1 million
oZipsor^® (diclofenac potassium) net sales of $3.0 million
oGlumetza^® (metformin hydrochloride extended-release) royalties from
Santarus, Inc. of $13.3 million
oNet loss of ($5.5) million or ($0.10) per share, compared to a net loss of
($8.8) million or ($0.16) per share for first quarter 2012
o$72.9 million of cash and marketable securities and no debt as of March
oFiled a patent infringement lawsuit against Purdue Pharma related to
OxyContin^® (oxycodone hydrochloride controlled-release), and filed a suit
in April 2013 for infringement of the same patents against Endo
Pharmaceuticals related to OPANA^®ER (oxymorphone hydrochloride
"Our results for the first quarter of 2013 illustrate the progress we have
made in the past year toward building our specialty pharmaceutical business
and increasing revenue from our license and collaboration arrangements.
During the first quarter, we realigned our sales force to increase the
frequency of calls on our top potential prescribers and better balance our
sales territories. We believe that the resulting disruption of the sales
rep-physician relationships affected our first quarter prescription growth.
However, we expect that the realignment will create additional demand in
future quarters. In addition, during the first quarter, key wholesalers
reduced their inventories of Gralise and Zipsor from December 31 levels,
resulting in lower sales. We believe that Gralise prescription growth and
product shipments in April have resumed a growth trend." said Jim Schoeneck,
President and Chief Executive Officer of Depomed. "For the remainder of 2013,
we are focused on growing product and royalty revenues, managing expenses to
achieve positive cash flow and continuing to work towards acquisitions that
will enhance the position of the company."
Depomed First Quarter 2013 Results
Total revenues for the first quarter of 2013 were $26.2 million, consisting of
$6.1 million of Gralise product sales, $3.0 million of Zipsor product sales,
$14.1 million of royalties and $3.0 million of license and other revenue.
First quarter 2012 revenues were $16.8 million. The increase in revenues in
the first quarter of 2013 was driven by product sales of Gralise and Zipsor
and increased Glumetza royalties.
Selling general and administrative expense was $26.0 million for the first
quarter of 2013 as compared to $21.8 million for the first quarter of 2012.
The increase is primarily due to sales and marketing expenses associated with
Zipsor, which was acquired in June 2012, and the addition of the part-time
contract sales force of 78 sales representatives in June 2012.
Research and development expense was $3.3 million for the first quarter of
2013 as compared to $3.5 million for the first quarter of 2012.
Net loss for the first quarter of 2013 was ($5.5) million, or ($0.10) per
share, compared to net loss of ($8.8) million, or ($0.16) per share for the
first quarter of 2012.
Cash and marketable securities were $72.9 million as of March 31, 2013 as
compared to $77.9 million as of December 31, 2012.
2013 Financial Outlook
Depomed is reaffirming the financial outlook previously given for the full
year of 2013.
oTotal revenues of approximately $125 to $135 million, which includes
approximately $6 million in anticipated milestones under our collaborative
oOperating expenses of approximately $120 to $130 million, which includes
approximately $4 million of intangible amortization related to the
acquisition of Zipsor
oYear-end 2013 cash and marketable securities of $70 to $80 million
Depomed will host a conference call today, Wednesday, May 8th, beginning at
4:30 p.m. EDT (1:30 p.m. PDT) 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. The company 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,
"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 commercialization of Gralise and
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, 2012 and Quarterly Report on Form 10-Q for the quarter ended
March 31, 2013. 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
August J. Moretti
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
Three Months Ended March31,
Product sales $ 9,129 $ 2,109
Royalties 14,081 9,421
License and other revenue 2,964 5,305
Total revenues 26,174 16,835
Costs and expenses:
Cost of sales 1,484 518
Research and development expense 3,298 3,482
Selling, general and administrative expense 25,963 21,773
Amortization of intangible asset 962 —
Total costs and expenses 31,707 25,773
Loss from operations (5,533) (8,938)
Other income (expense) (46) 143
Benefit (Provision) for income taxes 99 (9)
Net loss $ (5,480) $ (8,804)
Basic net loss per common share $ (0.10) $ (0.16)
Diluted net loss per common share $ (0.10) $ (0.16)
Shares used in computing basic net loss per 56,460,829 55,554,579
Shares used in computing diluted net loss per 56,460,829 55,554,579
CONDENSED BALANCE SHEETS
March 31, December31,
Cash, cash equivalents and marketable $ 72,889 $ 77,892
Accounts receivable, net 5,292 3,614
Receivables from collaborative partners 10,015 10,078
Inventories 8,743 9,587
Property and equipment, net 8,090 8,237
Intangible assets, net 24,467 25,078
Prepaid and other assets 5,932 7,167
Total Assets $ 135,428 $ 141,653
Accounts payable and accrued liabilities $ 27,926 $ 32,578
Deferred license revenue 17,797 18,789
Other liabilities 9,449 6,350
Shareholders' equity 80,256 83,936
Total liabilities and shareholders' $ 135,428 $ 141,653
(1)Derived from the audited financial statements included in the Company's
Annual Report on Form10-K for the year ended December31, 2012.
SOURCE Depomed, Inc.
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