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New Product Launches Drive Revenue and Record Earnings
Company Increases Earnings Outlook for 2013
SCHAUMBURG, Ill., Aug. 6, 2013 (GLOBE NEWSWIRE) -- Sagent Pharmaceuticals, Inc. (Nasdaq:SGNT), a leader of specialty pharmaceutical products with an emphasis on the injectable market, today announced financial results for the quarter ended June 30, 2013.
Second Quarter 2013 Highlights
Revenue increased 40% to $59.6 million driven by products launched in the last twelve months;
Reported gross profit increased 257% to $23.2 million, or 39% of net revenue;
Adjusted Gross Profit 1 increased 212% to $23.9 million, or 40% of net revenue;
Net income of $13.4 million, or diluted earnings per share of $0.46, inclusive of a $2.9 million gain related to the KSCP transaction;
Raised 2013 net income guidance to between $18 million and $28 million; and
Closed transaction to acquire joint venture partner's 50% interest in KSCP, now known as Sagent China Pharmaceuticals ("SCP"), in furtherance of our strategic objective of vertical integration.
"The second quarter earnings performance exceeded our initial guidance for the full year and our adjusted gross margin and Adjusted EBITDA as a percentage of revenue were well in excess of our stated long-term targets," said Jeffrey M. Yordon, chief executive officer and chairman of the board of Sagent. "Our strong results this quarter were primarily driven by contributions from recently launched products such as Zoledronic Acid. As we move in to the back half of the fiscal year, efforts will be focused on accelerating our product launches, developing and transferring products to SCP and intensifying our product development activity."
Financial Results for the quarter ended June 30, 2013
Net revenue for the second quarter of 2013 was $59.6 million, an increase of $16.9 million, or 40%, compared to $42.7 million in the second quarter of 2012. The increase was driven by $24.9 million in revenue from the launch of 29 new codes or presentations of 15 new products since June 30, 2012, including Zoledronic Acid at market formation, partially offset by reductions in demand driven by the abatement of market shortages and increased competitive pricing pressures. Gross profit for the second quarter of 2013 was $23.2 million, or 39.0% of net revenue, compared to $6.5 million, or 15.2% of net revenue, in the second quarter of 2012. Adjusted Gross Profit for the second quarter of 2013 was $23.9 million, or 40.0% of net revenue, compared to $7.7 million, or 17.9% of net revenue in the second quarter of 2012.