Flamel Technologies (Nasdaq: FLML) today announced its financial results for the first quarter of 2011. Highlights since the Company’s last conference call include:
- Entering into licensing agreements for two controlled release formulations of molecules with a leading specialty pharmaceuticals company. Flamel will receive $3 million upfront, as well as eventual development milestones and royalties upon sale of the product.
- Flamel has also entered into another license agreement with a separate specialty pharmaceutical company to develop a controlled-release Micropump formulation of a drug that is currently marketed by that company. Flamel will receive $500,000, and is eligible to receive a development milestone and costs of development as well as a royalty on net product sales upon eventual commercial launch of the product.
- Flamel has begun a new initiative to enter joint development agreements with companies developing very promising new molecules, with the potential of significantly higher financial returns for Flamel, if successful.
- Flamel continues to work to protect its technology and Coreg CR.
For the first quarter 2011, Flamel reported total revenues of $6.8 million versus $8.1 million in the year-ago period. License and research revenues during the first quarter of 2011 were $3.2 million versus $3.4 million in the first quarter 2010. Product sales and services, relating to the supply of Coreg CR which the Company has continued to furnish to GSK while a new supply arrangement is being negotiated, were $1.6 million in the first quarter of 2011, versus $2.3 million in the year-ago quarter. Other revenues in the first quarter 2011, consisting primarily of royalty revenues from GSK related to sales of Coreg CR, were $1.9 million as compared to $2.3 million in the year-ago quarter.
Operational expenses in the first quarter 2011 were $11.7 million versus $12.1 million in the year-ago quarter. Costs of goods and services sold in the quarter were $1.4 million, as compared to $1.9 million in the first quarter of 2010. Costs and expenses of Flamel's research and development were $7.8 million during the quarter, compared to $7.3 million in the first quarter of 2010. SG&A expenses during the first quarter of 2011 were $2.5 million versus $2.9 million in the year-ago quarter.