Gross profit of $15.2 million increased $12.8 million in the second quarter 2012, due to U.S. Zomig® tablet sales, compared to the prior year period. Gross margin in the second quarter 2012 was 46%, up slightly over the prior year period. The second quarter 2012 gross margin was negatively impacted by the inclusion of $14.3 million in cost of revenues for amortization and acquisition-related costs due to the Zomig® transaction.
Total brand operating expenses in the second quarter 2012 increased $2.6 million, compared to the prior year period, due to higher SG&A expenses resulting from Zomig® marketing costs and the expansion of the Company’s neurology focused sales force, as well as pre-launch planning costs for Rytary TM, partially offset by lower R&D expenses.
Corporate and Other
|(unaudited, amounts in thousands)||
Three Months Ended
Six Months Ended
|General and administrative expenses||$||14,844||$||11,553||$||28,643||$||24,407|
|Loss from operations||$||(14,844)||$||(11,553)||$||(28,643)||$||(24,407)|
General and administrative expenses in the second quarter 2012 increased $3.3 million, compared to the prior year period, primarily due to employee severance and increased personnel expenses.