Furiex Pharmaceuticals, Inc. (NASDAQ: FURX) today reported its financial and operating results for the quarter ended March 31, 2012. Furiex was spun off from Pharmaceutical Product Development, Inc. (PPD) as a separate public company effective June 14, 2010. Furiex continues the compound partnering business started by PPD in 1998.
Furiex recorded first quarter royalty revenue of $2.6 million, compared to $0.4 million for the same period in the prior year. Royalty revenue included royalties related to Nesina
sales in Japan, and Priligy
sales in various countries outside of the United States.
Research and development expenses were $9.4 million for the quarter ended March 31, 2012, compared to $12.9 million for the same period in the prior year. The decrease of $3.5 million in research and development expenses was a result of the substantial completion of the Phase II trials for our clinical-stage drug candidates, JNJ-Q2 and MuDelta, during the fourth quarter of 2011, partially offset by increased spending for Phase III related costs associated with the continued development of MuDelta in the first quarter of 2012.
First quarter selling, general and administrative expenses were $2.7 million for 2012, compared to $1.8 million for the first quarter of 2011. The increase in selling, general and administrative expenses of $0.9 million was due to increases in non-cash costs associated with stock compensation expense. This increase is primarily a result of our stock price being significantly higher at the end of the first quarter of 2012, as compared to 2011, as certain outstanding stock options are adjusted to fair value at the end of each financial reporting period until they vest.
Net loss was $9.8 million for the first quarter of 2012, compared to $14.4 million for the first quarter of 2011. The decrease in net loss of $4.6 million during the first quarter of 2012, as compared to the first quarter of 2011, relates primarily to the changes in royalty revenue, research and development expenses and selling, general and administrative expenses previously discussed.