Columbia Laboratories, Inc. (Nasdaq: CBRX) today reported financial results for the three- and nine-month periods ended September 30, 2012. Highlights of the third quarter include:
- Total net revenues increased 35% to $6.7 million in the third quarter of 2012, compared to $4.9 million in the third quarter of 2011.
- Net product revenues were $5.6 million, compared to $4.1 million in the third quarter of 2011, due to higher sales of CRINONE ® (progesterone gel) to Merck Serono S.A. (“Merck Serono”) and Watson Pharmaceuticals, Inc. (NYSE:WPI)(“Watson”).
- Gross profit on net product revenues was 43%, compared to 24% in the third quarter of 2011, due primarily to greater sales in higher-margin country markets.
- Operating income was $1.4 million, versus an operating loss of $0.6 million in the third quarter of 2011, reflecting the higher revenues and a $0.4 million decrease in operating expenses from prior year levels.
- Cash, cash equivalents and short-term investments increased by $2.6 million in the quarter to $25.6 million at September 30, 2012.
“We are pleased to report our second consecutive quarter of positive operating income and operating cash flows,” said Frank Condella, Columbia's President and CEO. “Our third quarter results reflect our streamlined operations as well as higher CRINONE net product revenues and royalties from our partners, Watson and Merck Serono.”
“We are obviously disappointed that the FDA recently denied Watson's attempts to determine a viable pathway to approval for PROCHIEVE to reduce the incidence of preterm birth in women with a short cervix. In the near term, we will continue to focus on maximizing income and cash generation from our base business while we explore Columbia's strategic options,” Condella concluded.
Third Quarter Financial ResultsTotal net revenues for the third quarter of 2012 were comprised of net product revenues primarily for domestic and international sales of CRINONE to Watson and Merck Serono, respectively, and royalties from Watson.