Columbia Laboratories, Inc. (Nasdaq: CBRX) today reported financial results for the three- and six- month periods ended June 30, 2012. Highlights of the second quarter include:
- Net product revenues were $7.4 million in the second quarter of 2012, compared to $4.9 million in the second quarter of 2011, due to higher sales to Merck Serono S.A. (“Merck Serono”) and Watson Pharmaceuticals, Inc. (“Watson”).
- Gross profit on net product revenues remained the same at 39% compared with the second quarter of 2011.
- Operating income was $1.7 million in the second quarter of 2012 as operating expenses were down 31% from prior year levels.
- Net income was $1.9 million, or $0.02 per basic and diluted share.
- Cash, cash equivalents and short-term investments were $23.0 million at June 30, 2012, up slightly from the immediately preceding quarter.
“We are pleased to report positive operating cash flow for the second quarter of 2012, in line with our stated expectations,” said Frank Condella, Columbia's President and CEO. “Our second quarter results reflect our streamlined operations as well as increases in net product revenues and royalties thanks to our partners, Watson and Merck Serono, who continue to generate strong in-market demand for CRINONE.
“We are encouraged that Watson continues to pursue a path to approval for progesterone vaginal gel for prevention of preterm birth. Meanwhile, we continue to explore strategic options with Cowen and Company to add additional long-term value for our stockholders,” Condella concluded.
Second Quarter Financial Results
Total net revenues for the second quarter of 2012 were comprised of net product revenues primarily for domestic and international sales of CRINONE
(progesterone gel) to Watson and Merck Serono, respectively, and royalties from Watson. In the second quarter of 2011, total net revenues also included sales of STRIANT
(testosterone buccal system), the amortization of deferred revenue recognized from the sale of assets to Watson, and a milestone payment from Watson for the acceptance of the preterm birth New Drug Application (“NDA”) for filing by the U.S. Food and Drug Administration (“FDA”).
Total net revenues for the second quarter of 2012 were $8.2 million, compared to $19.2 million for the second quarter of 2011. The decrease in total net revenues was driven primarily by the recognition of $8.6 million in revenue related to the gain on the sale of the progesterone assets to Watson in July 2010 and the $5.0 million milestone payment from Watson for the acceptance of the NDA filing in the 2011 second quarter, offset in part by a $2.4 million increase in net product revenues and, to a lesser extent, higher royalty revenues.