Depomed Reports First Quarter 2010 Financial Results
Depomed, Inc. (NASDAQ:DEPO) today reported financial results for the first quarter ended March 31, 2010.
Revenue for the three months ended March 31, 2010 was $15.4 million compared to $9.9 million for the three months ended March 31, 2009. The 56% increase in revenue year-over-year was primarily attributable to a $5.8 million increase in Glumetza product sales.
Operating expenses for the three months ended March 31, 2010 were $17.6 million compared to $19.0 million for the three months ended March 31, 2009. The decrease in operating expenses was primarily attributable to $4.8 million decrease in research and development expenses and a $0.9 million decrease in other selling, general and administrative expenses, partially offset by a $4.3 million increase in promotion fee expense related to the company’s promotion agreement for Glumetza ® (extended release metformin hydrochloride tablets) with Santarus, Inc. due to the increase in product sales.
Stock-based compensation expense was $0.5 million for the three months ended March 31, 2010 as compared to $0.7 million for the three months ended March 31, 2009.Net loss for the three months ended March 31, 2010 was $3.8 million, or $0.07 per share, compared to net loss of $10.2 million, or $0.20 per share, for the three months ended March 31, 2009. Cash, cash equivalents and marketable securities were $71.5 million as of March 31, 2010 compared to $81.8 million as of December 31, 2009. “In the first quarter, we made significant advances in our development programs in DM-1796 for postherpetic neuralgia and Serada TM for menopausal hot flashes. Abbott Products Inc. filed an NDA for DM-1796 in March, and we look forward to the FDA’s acceptance of the NDA for filing later this quarter. We received encouraging guidance on Serada’s development program in the quarter, and expect to initiate one additional Phase 3 clinical trial very soon,” noted Carl A. Pelzel, president and chief executive officer of Depomed. First Quarter 2010 Highlights
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
|Three Months Ended March 31,|
|License and milestone revenue||2,671||2,568|
|Costs and expenses:|
|Cost of sales||1,481||1,032|
|Research and development expense||5,187||10,021|
|Selling, general and administrative expense:|
|Promotion fee expense||8,879||4,544|
|Other selling, general and administrative||3,550||4,458|
|Total selling, general and administrative expense||12,429||9,002|
|Total costs and expenses||19,097||20,055|
|Loss from operations||(3,737||)||(10,183||)|
|Other income (expense):|
|Interest and other income||94||314|
|Total other income (expense)||(89||)||29|
|Net loss before income taxes||(3,826||)||(10,154||)|
|Provision for income taxes||(1||)||(1||)|
|Basic and diluted net loss per share||$||(0.07||)||$||(0.20||)|
|Shares used in computing basic and diluted net loss per share||52,298,726||51,207,540|
CONDENSED BALANCE SHEETS
(in thousands, except share amounts)
|March 31,||December 31,|
|Cash and cash equivalents||
|Prepaid and other current assets||2,634||1,185|
|Total current assets||70,621||78,426|
|Marketable securities, long-term||12,524||12,016|
|Property and equipment, net||871||942|
|LIABILITIES AND SHAREHOLDERS’ EQUITY|
|Accounts payable and accrued liabilities||14,452||15,222|
|Deferred product sales||1,594||1,635|
|Deferred license revenue||11,159||11,184|
|Other current liabilities||425||414|
|Current portion of long-term debt||3,859||3,747|
|Total current liabilities||31,489||32,202|
|Deferred license revenue, non-current portion||38,660||41,306|
|Long-term debt, net of current portion||1,160||2,170|
|Other long-term liabilities||143||177|
|Preferred stock, no par value, 5,000,000 shares authorized; Series A convertible preferred stock, 25,000 shares designated, 18,158 shares issued and surrendered, and zero shares outstanding at March 31, 2010 and December 31, 2009||—||—|
Common stock, no par value, 100,000,000 shares authorized; 52,354,402 and 52,200,358 shares issued and outstanding at March 31, 2010 and December 31, 2009, respectively
|Accumulated other comprehensive gain||34||33|
|Total shareholders’ equity||12,761||15,726|
(1) Derived from the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2009.
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