TORONTO, Feb. 18, 2014 (GLOBE NEWSWIRE) -- Intellipharmaceutics International Inc. (Nasdaq:IPCI) (TSX:I), a pharmaceutical company specializing in the research, development and manufacture of novel and generic controlled-release and targeted-release oral solid dosage drugs, today reported the results of operations for the year ended November 30, 2013. All dollar amounts referenced herein are in United States dollars unless otherwise noted.
Revenue related to the Company's license and commercialization agreement with Par Pharmaceutical, Inc. ("Par") in the year ended November 30, 2013 was $1.5 million versus $0.1 million in the prior year. The $1.5 million revenue in the year ended November 30, 2013 derived principally from 12 days of commercial sales of 15 and 30 mg strengths of dexmethylphenidate hydrochloride extended-release capsules (generic Focalin XR®), which recently received final FDA approval, while the revenue of $0.1 million in the prior year related to an amendment of the agreement with Par.
Loss from operations for the year ended November 30, 2013 was $6.8 million compared with loss from operations of $10.1 million for the year ended November 30, 2012. Research and development ("R&D") expenditures in the year ended November 30, 2013 decreased to $5.1 million versus $6.0 million for the prior year, primarily due to a decrease in stock-based compensation for R&D employees and the timing of certain R&D activities which have been deferred. After adjusting for stock-based compensation, expenditures for R&D were slightly lower. Selling, general and administrative expenses in the year ended November 30, 2013 decreased to $2.9 million versus $3.7 million in the prior year. After adjusting for stock-based compensation expense, expenditures for selling, general and administrative expenses were slightly lower due to the resignation of an executive of IPC Ltd.The Company recorded a net loss for the year ended November 30, 2013 of $11.5 million, or $0.58 per common share, compared with a loss of $6.1 million, or $0.36 per common share for the year ended November 30, 2012. The increased loss can be attributed to the loss in the fair value adjustment of derivative liabilities compared to a gain in the fair value adjustment of derivative liabilities in the prior year. This was partially offset by a decrease in R&D and selling, general and administrative expenses in the year ended November 30, 2013 compared to the prior year. Stock-based compensation expense in the year ended November 30, 2013 was $1.2 million versus $2.3 million in the prior year. The fair value adjustment of derivative liabilities in the year ended November 30, 2013 was a loss of $3.9 million versus a gain of $3.8 million in the prior year. The fair values of the derivative liabilities have been re-valued at November 30, 2013 using the Black-Scholes Option Pricing Model, resulting in an increase in the fair value of the derivative liabilities and a fair value adjustment of the derivative liabilities for a loss.
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