Furiex Pharmaceuticals, Inc. (NASDAQ: FURX) today reported its financial and operating results for the quarter ended June 30, 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 second quarter milestone revenue of $10.0 million. On May 23, 2012, Takeda Global Research & Development Centre (Europe) Ltd. received confirmation on the acceptance of the submission of a Marketing Authorization Application from the European Medicines Agency for alogliptin, a selective dipeptidyl peptidase IV inhibitor for the treatment of type 2 diabetes.
Furiex recorded second quarter royalty revenue of $3.1 million, compared to $0.9 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 $30.8 million for the quarter ended June 30, 2012, compared to $13.2 million for the same period in the prior year. The increase of $17.5 million in research and development expenses was a result of the increase in Phase III clinical trial costs associated with the continued development of MuDelta, a $1.0 million development milestone payment to Ranbaxy Laboratories, Ltd. in connection with the completion of the Phase II clinical study for PPD-10558, and a $5.0 million regulatory milestone payment due to Janssen Pharmaceutica, N.V. related to the dosing of the fifth patient in the on-going Phase III clinical trials for MuDelta, partially offset by decreases in spending for the discontinued PPD-10558 program and completion of the Phase II clinical trial work related to MuDelta and JNJ-Q2.
Second quarter selling, general and administrative expenses were $2.8 million for 2012, compared to $2.5 million for the second quarter of 2011. The increase in selling, general and administrative expenses of $0.3 million was primarily due to increases in consulting and legal expenses.