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It is now my pleasure to turn the call over to Mr. Stephen Willard, CEO. Please go ahead Mr. Willard.Stephen H. Willard Thank you very much. Good morning, ladies and gentlemen. It’s great that my lawyers got to the conference call operator for which I am very grateful. First, I would like to summarize some important events that Flamel made during the second quarter. We completed new licensing agreements with two specialty pharma companies for the creation of three new controlled release formulations, which leverage new advances in our Micropump and Trigger Lock platforms. We’ve also entered into joint development agreements with two companies for work involving controlled release formulations of four new molecules. These joint development agreements are part of a new initiative that we are undertaking to identify promising first-in-class early stage therapeutic candidates being created at developing corporations and which benefit from our drug delivery expertise. Engaging in these joint development agreements complements our existing strategies of working with large pharmaceutical partners. In these projects, we contribute our formulation expertise while our partner performs the clinical trials and licenses the formulations to large pharma. Such licenses are expected to occur significant lead before ultimate pivotal trials, but Flamel will receive greater economic returns substantially sooner than with our conventional business. The financial percentages due to Flamel are also significantly higher than with our conventional agreements. We do however share the risk of early stage developments which is not the case when we worked with many currently approved molecules. We believe that these programs offer us higher risk, higher reward, opportunities that address attractive market opportunities with significant unmet medical needs, but at low cost to ourselves as the work we are performing involves applications of our existing platforms and low external costs. I would discuss these agreements and the strategic initiative later.
We are continuing our discussions with GSK and seek a mutually beneficial agreement that ensures unfettered patient access to the life saving drug Coreg CR. As the discussions are well advanced and ongoing, I will be limiting my comments on the status through these negotiations. While we negotiated new supplier agreements, we’ve continued to provide GSK with interim supply of Coreg CR micro particles. We continue to believe that the eventual resolution of our negotiations with GSK would be a positive catalyst for our company.As a result of the second quarter advances as well as funds we have received related to our R&D tax credits, our cash increased during the quarter to $33 million. This compares to $31.3 million at the end of last year and this is also virtually the same as with $33.7 million of cash, which we had 12 months ago at the end of the second quarter 2010. At this point, I would like to ask Siân Crouzet, our Principal Financial Officer to please review the second, and the results of the second quarter. Siân? Siân Crouzet Thank you, Steve. Good morning. During the second quarter, as Steve mentioned, our cash balance increased to $33 million, up from $26 million at the end of the first quarter. This increase was driven by the signature with new licensing agreement and the factoring of research and development tax credit from 2010. Revenues during the quarter declined to $6.8 million from $7.5 million in the prior year. License and research revenues were $2.5 million versus $3.3 million in the year ago quarter. This reduction is driven partly by the fact the programs that we were developing last year have either entered preclinical or clinical testing conducted by our partners, and partly by the fact, that having accomplished a considerable number of programs as in the last couple years we are now waiting for our partners to indicate how they wish to proceed.
Product sales and services during the quarter were $3.3 million compared to $1.9 million in 2010. A new supply agreement is under negotiation with GSK, and in the interim we have continued to supply products inline to demand requirement from GSK.Read the rest of this transcript for free on seekingalpha.com