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TORONTO, July 7, 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 three and six months ended May 31, 2014. 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 three months ended May 31, 2014 was $1.5 million versus $Nil in the three months ended May 31, 2013. The revenue in the three months ended May 31, 2014 derived principally from commercial sales of its first product, 15 and 30 mg strengths of dexmethylphenidate hydrochloride extended-release capsules (generic Focalin XR®).
Loss from operations for the three months ended May 31, 2014 was $3.1 million compared with loss from operations of $1.8 million for the three months ended May 31, 2013. Research and development ("R&D") expenditures in the three months ended May 31, 2014 increased to $3.4 million compared to $0.9 million in the three months ended May 31, 2013, primarily due to an increase in stock-based compensation expense of $1.2 million for R&D employees related to the shareholder –approved two year extension of the expiry date of previously-granted performance-based stock options to September 2016 and newly granted stock options issued to R&D executive officers. After adjusting for stock-based compensation, expenditures for R&D were higher by $1.4 million during the 2014 period. During the quarter ended May 31, 2014, the Company incurred increased expenses on furthering the development of several generic and NDA 505(B)(2) product candidates, payment of bonuses to certain R&D executive officers, and salary increases to certain non-management R&D employees. Selling, general and administrative expenses for the three months ended May 31, 2014 increased to $1.1 million versus $0.8 million in the prior period. After adjusting for stock-based compensation expense, expenditures for selling, general and administrative expenses were higher by $0.2 million during the 2014 period, primarily due to salary increases for certain non-management employees, and the payment of bonuses to certain management employees.