NPS Pharmaceuticals Reports Second Quarter 2013 Financial Results and Provides Business Update

  NPS Pharmaceuticals Reports Second Quarter 2013 Financial Results and
  Provides Business Update

-- U.S. launch of Gattex® (teduglutide) accelerating with net product sales of
                          $4.8 million in quarter --

-- $25 to $30 million in full-year net global Gattex® sales expected with 275
                  to 325 patients on therapy by year end --

   -- Ex-U.S. markets expected to double global peak sales opportunity for
                            Gattex®/Revestive® --

    -- Natpara fill-finish manufacturing issue successfully addressed and
   submission of Biologic License Application expected in fourth quarter --

                  -- Conference call today at 5:00 PM ET –-

Business Wire

BEDMINSTER, N.J. -- August 8, 2013

NPS Pharmaceuticals, Inc. (NASDAQ: NPSP), a biopharmaceutical company
pioneering and delivering therapies that transform the lives of patients with
rare diseases worldwide, reported its results for the second quarter ended
June 30, 2013.

“Having successfully addressed the fill-finish issue, we are pleased to report
that we will file our Biologic License Application for Natpara before the end
of this year,” said Francois Nader, MD, president and chief executive officer
of NPS Pharmaceuticals. “Our commitment to flawless execution has yielded
solid second quarter results including Gattex sales that exceeded our own
expectations. We are particularly gratified to have already brought this
life-changing treatment to 141 Short Bowel Syndrome patients and I am pleased
to report that we are increasing our guidance to 275 to 325 patients on
therapy by the end of the year.”

“In addition, having completed our assessment of the international market, we
believe the peak annual ex-U.S. revenue potential for Revestive is greater
than the U.S. given the estimated 6,000 to 12,000 addressable patients in our
targeted countries; however we anticipate a slower ramp than the U.S. Our
international strategy is now being implemented with the establishment of our
international headquarters in Dublin, the initiation of the EU pricing and
reimbursement process, and the implementation of named-patient programs in
certain countries,” added Dr. Nader.


Gattex^® (U.S.)/Revestive^® (Ex-U.S.) (teduglutide [rDNA origin]) for

  *Gattex sales totaled $4.8 million for the second quarter of 2013. Gattex
    (ex-U.S. tradename: Revestive) is the first prescription medicine for the
    long-term treatment of adults with short bowel syndrome who are dependent
    on parenteral support.
  *The company expects to achieve net global Gattex/Revestive sales of $25 to
    $30 million for 2013.
  *As of August 2, 2013, 318 prescriptions have been received and 141
    patients are currently on therapy in the U.S. As previously guided, it is
    expected to take an average of 90 to 120 days to dispense Gattex to
    patients after it is prescribed.
  *The company has begun implementing its international strategy that is
    transforming NPS into a global commercial rare disease company. NPS
    expects the first ex-U.S. commercial sales of Revestive to commence on an
    early access/named-patient basis in certain countries in late 2013 or
    early 2014 with meaningful revenues expected to begin in the second half
    of 2014.
  *The company is preparing to engage in the pricing and reimbursement
    processes in key European countries with the goal of commercially
    launching Revestive in Europe in the first half of 2014.
  *With an estimated 6,000 to 12,000 SBS patients eligible for treatment in
    the company’s targeted ex-U.S. countries, NPS believes the international
    peak annual sales opportunity for Revestive is greater than that of Gattex
    in the U.S.

Natpara^® (recombinant human parathyroid hormone 1-84 (rhPTH 1-84))

  *The company has successfully addressed the previously reported fill-finish
    issues related to the manufacture of Natpara and expects to submit its
    Biologic License Application to the U.S. Food and Drug Administration
    (FDA) in the fourth quarter of 2013. Natpara is the first bioengineered
    replica of human parathyroid hormone developed for hypoparathyroidism, a
    rare, complex endocrine disorder in which the body produces insufficient
    parathyroid hormone.
  *In June 2013, researchers presented initial findings from PARADOX, a
    374-patient survey assessing the burden of illness of hypoparathyroidism,
    which was conducted in partnership with the Mayo Clinical and the
    Hypoparathyroidism Association. The findings revealed that 99 percent of
    patients with this rare, complex endocrine disorder experience multiple
    physical, emotional and cognitive symptoms despite taking medications,
    such as vitamin D and calcium. Further, 69 percent of these patients
    experience serious comorbid conditions, including heart arrhythmias and
    kidney stones. These findings were presented at ENDO 2013, the Annual
    Meeting of the Endocrine Society.
  *The company recently initiated enrollment of PARADIGHM, a global natural
    history registry for patients with hypoparathyroidism. Patients will be
    enrolled and followed for at least 10 years to characterize the disorder
    under conditions of normal clinical practice.

Product pipeline

  *After receiving feedback from the FDA and the European Medicines Agency,
    NPS expects to begin enrollment in a Phase 3 global study of
    Gattex/Revestive in pediatric patients with SBS before the end of 2013.
  *NPS recently met with the FDA to review its development strategy for its
    NPSP795 calcilytic compound in autosomal dominant hypocalcemia or ADH.
    Based on this meeting, the company plans to initiate a Phase 2a
    proof-of-concept study in mid-2014.


  *In May, NPS sold 6.9 million shares of its common stock and received
    aggregate net proceeds of approximately $93.5 million.

Financial results

“Our financial performance this quarter was highlighted by robust Gattex sales
and our valuable Sensipar royalty stream,” commented Luke M. Beshar, executive
vice president and chief financial officer of NPS. “We were pleased to have
raised significant equity capital to support the global launch of our two
products and pursue new long-term opportunities for growth.”

Net loss

NPS reported a net loss of $12.4 million or $0.16 per diluted share for the
second quarter of 2013 compared to net income of $7.4 million or $0.08 per
diluted share for the second quarter of 2012. The company’s financial results
for the second quarter of 2013 were negatively impacted by a $10.6 million
non-cash charge for Preotact® inventory designated for research and
development activities and expensed during the period. This inventory was
received when the company regained the international rights to this product.
The company’s financial results for the prior year period were positively
impacted by $25 million in revenue related to the sale to Amgen of its rights
to receive royalties from sales of cinacalcet HCl (Sensipar®/Mimpara®) that
would have been earned after December 31, 2018.


Revenues are comprised of net product sales for Gattex, which was launched in
the first quarter of 2013, and royalty revenues. Sales of Gattex were $4.8
million for the second quarter of 2013, compared to $0 for the second quarter
of 2012.

Royalty revenues were $31.7 million for the second quarter of 2013 compared to
$28.5 million for the second quarter of 2012. NPS earns royalties on (i)
Amgen’s sales of Sensipar^®/Mimpara^® (cinacalcet HCl), (ii) Kyowa Hakko
Kirin’s sales of REGPARA^® (cinacalcet HCl), and (iii) Janssen
Pharmaceuticals’ sales of NUCYNTA^® (tapentadol) and NUCYNTA^® ER (tapentadol
extended-release tablets).

The components of royalties are summarized as follows:

In millions       Quarter ended  Six months ended
                  June 30,        June 30,
                  2013   2012     2013     2012
Sensipar/Mimpara  $28.9  $23.6    $51.1    $42.2
REGPARA           2.0    2.2      3.9      4.1
Preotact          --     1.9      --       3.7
NUCYNTA and other 0.8    0.8      1.5      1.4
Total             $31.7  $28.5    $56.5    $51.4

The company’s second quarter Sensipar/Mimpara royalties include $1.8 million
related to a non-recurring favorable adjustment from Amgen. On August 15,
2013, the company will receive a cash payment of $19.1 million for the
Sensipar/Mimpara royalties earned during the second quarter of 2013. The
remaining $8 million of Sensipar/Mimpara royalties will be retained to repay a
royalty advance received in August 2011 from Amgen. At June 30, 2013, NPS had
$61.1 million in long-term, non-recourse debt secured by its Sensipar
royalties. The company expects the remaining balance of its Sensipar-secured
non-recourse debt to be fully repaid in the middle of 2015. After repayment,
NPS will receive 100% of the Sensipar royalties through the March 2018 patent
expiry in the U.S. and through the end of 2018 for the rest-of-world.

Research and development

Research and development expenses were $30.9 million for the second quarter of
2013 compared to $32.6 million for the second quarter of 2012. The decrease in
research and development expenses was due to a reduction in costs associated
with clinical development activities for Gattex and Natpara in the second
quarter of 2013. This was partially offset by the aforementioned non-cash
charge of $10.6 million related to Preotact inventory.

General and administrative

General and administrative expenses were $14.5 million for the second quarter
of 2013 compared to $9.7 million for the second quarter of 2012. The increase
in general and administrative expenses was primarily due to personnel and
other external costs related to the U.S. launch of Gattex.

Interest expense

Interest expense was $3.0 million for the second quarter of 2013 compared to
$4.5 million for the second quarter of 2012. Interest expense was largely
attributable to non-recourse debt secured by the company’s Sensipar/Mimpara,
REGPARA, and Preotact (rhPTH 1-84) royalties. The decline in interest expense
was primarily attributable to a reduction in the outstanding principal and
interest rate associated with Sensipar/Mimpara-secured non-recourse debt, as
well as lower effective interest rates associated with the REGPARA- and
Preotact-secured non-recourse debt.

Cash and investments

The company’s cash, cash equivalents, and marketable investment securities
were approximately $181 million at June 30, 2013 compared to $101 million at
December 31, 2012.

Long-term debt

At June 30, 2013, the company’s recourse debt was $16.5 million in 5.75%
convertible notes due in August 2014.

All other debt on the company’s balance sheet is non-recourse and secured
solely by royalties related to Sensipar/Mimpara, REGPARA, and sales of PTH
1-84 in the EU, CIS, and Turkey. After repayment of these obligations, the
cash flows from these royalties will revert to NPS in accordance with the
terms set forth in each agreement.

The following table reflects the company’s non-recourse debt at June 30, 2013
and December 31, 2012:

In millions                           
                                        June 30,  December 31,
                                        2013       2012
Non-recourse debt:
Sensipar/Mimpara-secured                $67.5      $80.2
PTH 1-84-secured (EU, CIS and Turkey)   42.8       42.8
REGPARA-secured                         36.3       36.3
Total non-recourse debt                 146.6      159.3
Less current portion                    7.6        6.3
Total long-term non-recourse debt       $139.0     $153.0

Financial guidance

NPS now expects its 2013 operating expenses, excluding cost of goods sold and
share-based compensation, to be between $140 and $150 million. The company’s
operating expense guidance no longer includes the estimated impact of
share-based compensation due to its inherent variability and non-cash nature.

The company now expects to achieve global Gattex/Revestive sales of $25 to $30
million in 2013 with 275 to 325 patients on therapy by the end of the year.
For 2013 only, the company will report the number of prescription and the
number of patients on Gattex/Revestive in connection with its quarterly
financial results.

NPS is also improving its guidance for its gross-to-net adjustment for U.S.
Gattex sales and now expects this to be between eight and 12 percent in 2013
versus its previous guidance of between 10 and 14 percent.

Conference Call Information

NPS will host a conference call beginning today at 5:00 p.m. Eastern Time. To
participate in the conference call, dial (866) 515-2910 and use pass code
33048269. International callers may dial (617) 399-5124, using the same pass
code. In addition, a live audio of the conference call will be available over
the Internet. Interested parties can access the event through the NPS website,

For those unable to participate in the live call, a replay will be available
at (888) 286-8010, with pass code 43569894, until midnight Eastern Time,
August 22, 2013. International callers may access the replay by dialing (617)
801-6888, using the same pass code. The webcast will also be available through
the NPS website for the same period.

About NPS Pharmaceuticals

NPS Pharmaceuticals is a biopharmaceutical company pioneering and delivering
therapies that transform the lives of patients with rare diseases worldwide.
The company’s lead product, Gattex^® (U.S.)/Revestive^® (ex-U.S.) (teduglutide
[rDNA origin]) for injection is approved for adult Short Bowel Syndrome (SBS)
patients who are dependent on parenteral support. NPS has also developed
Natpara^® (rhPTH [1-84]) for the treatment of adult hypoparathyroidism and
expects to submit its marketing application to the U.S. Food and Drug
Administration in the fourth quarter of 2013.

NPS's earlier stage pipeline includes two calcilytic compounds, NPSP790 and
NPSP795, with potential application in rare disorders involving increased
calcium receptor activity, such as autosomal dominant hypocalcemia (ADH). NPS
complements its proprietary programs with a royalty-based portfolio of
products and product candidates that includes agreements with Amgen,
GlaxoSmithKline, Janssen Pharmaceuticals, and Kyowa Hakko Kirin. Additional
information about NPS is available through its corporate website,

“NPS,” “NPS Pharmaceuticals,” “Gattex,” “Natpara,” “Revestive,” “Preotact,”
and “NPS Advantage” are the company's trademarks. All other trademarks, trade
names or service marks appearing in this press release are the property of
their respective owners.

Disclosure notice

Statements made in this press release, which are not historical in nature,
constitute forward-looking statements for purposes of the safe harbor provided
by the Private Securities Litigation Reform Act of 1995. These statements are
based on the company's current expectations and beliefs and are subject to a
number of factors and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements. Forward
looking statements include, but are not limited to, statements concerning the
company’s future financial performance. Risks associated to the company's
business include, but are not limited to, the risks associated with any
failure by the company to successfully commercialize Gattex (teduglutide [rDNA
origin]) for injection, including the risk that physicians and patients may
not see the advantages of Gattex and may therefore be reluctant to utilize the
product, the risk that private and public payers may be reluctant to cover or
provide reimbursement for Gattex, the risks associated with the company's
strategy, global macroeconomic conditions, the impact of changes in management
or staff levels, the effect of legislation effecting healthcare reform in the
United States, as well as other risk factors described in the company's
periodic filings with the U.S. Securities and Exchange Commission, including
its Annual Report on Form 10-K and Form 10-Qs. All information in this press
release is as of the date of this release and NPS undertakes no duty to update
this information, whether as a result of new information, future events or

                       (Financial statements to follow)

NPS Pharmaceuticals and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

                                    Three Months Ended    Six Months Ended
                                    June 30,              June 30,
                                    2013       2012      2013       2012
Product sales, net                  $4,801      $ --      $5,455      $ --
Royalties                           31,704      28,517    56,484      51,441
Sale of royalty rights              --          25,000    --          25,000
Total revenues                      36,505      53,517    61,939      76,441
Costs and expenses:
Cost of goods sold                  473         --        538         --
Research and development            30,888      32,641    46,583      52,840
General and administrative          14,465      9,670     28,670      17,440
Total operating expenses            45,826      42,311    75,791      70,280
Operating (loss) income             (9,321)     11,206    (13,852)    6,161
Other (expense) income:
Interest income, net                58          76        113         160
Interest expense                    (3,034)     (4,467)   (6,429)     (10,001)
Other                               (88)        540       (13)        472
Total other expense, net            (3,064)     (3,851)   (6,329)     (9,369)
(Loss) income before income tax     (12,385)    7,355     (20,181)    (3,208)
Income tax expense                  4           --        4           --
Net (loss) income                   ($12,389)   $7,355    ($20,185)   ($3,208)
Net (loss) income per common and
potential common share:
Basic                               ($0.13)     $0.08     ($0.22)     ($0.04)
Diluted                             ($0.13)     $0.08     ($0.22)     ($0.04)
Weighted average common and
potential common share:
Basic                               97,321      86,903    92,886      86,880
Diluted                             97,321      91,470    92,886      86,880

NPS Pharmaceuticals and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)


                                        June 30,            December 31,
                                         2013                 2012
Cash, cash equivalents and               $180,522             $100,715
marketable investment securities
Account receivable                       33,795               30,276
Inventory                                27,125               --
Other current assets                     6,067                6,060
Property and equipment, net              3,963                4,193
Goodwill                                 9,429                9,429
Intangibles, net                         20,198               --
Debt issuance costs, net                 386                 436          
Total assets                             $281,485            $151,109     
Liabilities and Stockholders’ Equity
Current liabilities                      $35,397              $29,567
Convertible notes                        16,545               16,545
Non-recourse debt, less current          139,032              153,024
Other long-term liabilities              5,455               6,614        
Total liabilities                        196,429              205,750
Common stock and additional paid-in      1,114,487            954,539
Accumulated other comprehensive          (61          )       5
(loss) income
Accumulated deficit                      (1,029,370   )       (1,009,185   )
Total stockholders' equity (deficit)     85,056              (54,641      )
Total liabilities and stockholders'      $281,485            $151,109     
equity (deficit)
* Non-recourse debt secured by Sensipar^®/Mimpara^®, Preotact^® (rhPTH 1-84),
and REGPARA^® royalty revenue


NPS Pharmaceuticals, Inc.
Susan M. Mesco, 908-450-5516
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