Columbia Laboratories, Inc. (Nasdaq: CBRX) today reported financial results for the three- and twelve-month periods ended December 31, 2012.
Fourth Quarter Financial Highlights
- Total net revenues increased 11% to $7.1 million in the fourth quarter of 2012, compared to $6.4 million in the fourth quarter of 2011.
- Net product revenues increased 13% to $6.1 million in the fourth quarter of 2012, compared to $5.4 million in the fourth quarter of 2011, mainly due to higher sales of CRINONE ® 8% (progesterone gel) to Merck Serono S.A. (“Merck Serono”).
- Operating income was $1.0 million in the fourth quarter of 2012, compared to $1.1 million in the fourth quarter of 2011 due to a $1.2 million increase in total operating expenses over fourth quarter 2011 levels. In the fourth quarter of 2012, the Company recorded a $0.9 million write-off of fixed assets relating to excess capacity at Maropack and $0.9 million in severance charges, which were offset in part by lower personnel costs following the 2012 workforce reduction.
- Net income for the fourth quarter of 2012 was $2.6 million, or $0.03 per basic and $0.01 per diluted share, compared to a net loss of $1.0 million, or $0.01 per basic and diluted share, in the fourth quarter of 2011.
- Cash, equivalents and short-term investments increased to $28.6 million at December 31, 2012.
2012 Financial Highlights
- Total net revenues were $25.8 million in 2012, compared to $43.1 million in 2011. The Company's 2011 revenues included $17.0 million for the amortization of the $34 million gain on the sale of the progesterone assets in July 2010 to Actavis Inc. (NYSE:ACT)(“Actavis”), formerly Watson Pharmaceuticals Inc., which amortization concluded in the second quarter of 2011, and the recognition of the $5.0 million milestone payment from Actavis for the filing of NDA 22-139.
- Net product revenues increased 24% to $22.2 million in 2012, compared to $18.0 million in 2011.
- Net product revenues from Merck Serono for international sales of CRINONE 8% increased 18% driven by greater sales penetration into higher priced markets. Net product revenues from Actavis for U.S. sales of CRINONE increased by 35% over 2011 levels due primarily to higher transfer pricing.
- Net income was $9.9 million, ($0.11 per basic and $0.03 per diluted share), compared to net income of $20.5 million ($0.24 per basic and $0.22 per diluted share) in 2011.
- The Company turned cash-flow positive in the third quarter of 2012 and cash-flow from operating activities was $4.3 million for the year, compared with cash used in operations of $1.3 million in 2011.
“We are pleased to report our third consecutive quarter of profitability and second consecutive quarter of positive operating cash flows, both significant milestones for Columbia,” said Frank Condella, Columbia's president and chief executive officer. “These results reflect the ongoing promotion and growth of CRINONE by our partners, Merck Serono and Actavis, in their respective franchises, coupled with our ongoing cost containment initiatives. We continue to transition to a lower-cost operating model, and remain focused on maximizing income and cash generation from our base business while we explore potential strategic transactions.”