Pharmacyclics Management Discusses Q4 2012 Results - Earnings Call Transcript

Pharmacyclics (PCYC)

Q4 2012 Earnings Call

September 06, 2012 4:30 pm ET


Rainer M. Erdtmann - Principal Accounting Officer, Vice President of Finance & Administration and Secretary

Robert W. Duggan - Chairman and Chief Executive Officer

Mahkam Zanganeh - Chief Operating Officer

Jesse Seton McGreivy - Vice President of Clinical Science

Joseph J. Buggy - Vice President of Research


Michael J. Yee - RBC Capital Markets, LLC, Research Division

Brian Skorney - Brean Murray, Carret & Co., LLC, Research Division

Alan Carr - Needham & Company, LLC, Research Division

Michael G. King - Rodman & Renshaw, LLC, Research Division

Howard Liang - Leerink Swann LLC, Research Division

Geoffrey C. Porges - Sanford C. Bernstein & Co., LLC., Research Division

Joshua Schimmer - Lazard Capital Markets LLC, Research Division

Brian Lian - SunTrust Robinson Humphrey, Inc., Research Division



Greetings, and welcome to the Pharmacyclics Fourth Quarter and Fiscal Year End 2012 Conference Call. [Operator Instructions] A brief question and answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ramses Erdtmann, Vice President, Finance for Pharmacyclics. Thank you. Mr. Erdmann, you may begin.

Rainer M. Erdtmann

Yes. Thank you, Robin. Good afternoon, and thank you for joining us for our conference call today. With me on the call today and available to answer questions are our CEO and Chairman of the Board, Bob Duggan; our Chief Operating Officer, Dr. Maky Zanganeh; our Executive Vice President, Paula Boultbee; our Executive Vice President of Finance, Josh Brumm; Dr. Jesse McGreivy, our Vice President of Clinical Science; Dr. Maria Fardis, our Vice President of Alliance and Global Project Management; and our Vice President of Research, Dr. Joe Buggy.

Unfortunately, our Chief Medical Officer, Dr. Lori Kunkel, cannot join us today due to a family vacation, which she has unfortunately no phone access so Dr. Jesse McGreivy will jump in and will provide the clinical update.

Our agenda for today's call will focus on the accomplishments we have achieved organizationally, the team we have built up here at the company and accomplishments within our partnership with Janssen. We will summarize the clinical initiations and achievements, and we will also provide a clinical outlook of what to expect by year end.

Let me start with a summary of our financial results. Revenue for the fiscal year ended June 30, 2012, was $82 million compared to $8.2 million for the fiscal year ended June 30, 2011, an increase of $73.8 million.

The non-GAAP net income reported for the fiscal year ended June 30, 2012, was $21.9 million or $0.32 per basic and $0.30 per diluted share. This compares with the non-GAAP not less -- net loss of $28 million or $0.47 loss per share for the fiscal year ended June 30, 2011.

For the quarter ended June 30, 2012, the non-GAAP net loss was $15.1 million or $0.22 per share, which compares with a non-GAAP net loss of $9.1 million or $0.15 per share for 2011 -- for the 2011 quarter.

The GAAP net income for the fiscal year ended June 30, 2012, was $12 million or $0.17 per basic and diluted share. This compares with a GAAP net loss of $35.2 million or $0.59 per share for the year ended June 30, 2011. For the quarter ended June 30, 2012, the GAAP net loss was $16.9 million or $0.24 loss per share. This compares with a GAAP net loss of $11 million or $0.18 loss per share for the fiscal quarter ended June 30, 2011.

As of June 30, 2012, we had cash, cash equivalents and marketable securities of $203.6 million, which compares with $112.3 million at June 30, 2011. Additionally, the company had $5.8 million due from Janssen Biotech Inc. at June 30, 2012, in connection with its cost-sharing arrangement. And as announced in August, additionally, we accomplished the triggering of 2 milestone payments totaling $100 million.

Before we start, let me remind you that this non confidential presentation contains forward-looking statements about the business prospects of Pharmacyclics, including expectations regarding Pharmacyclics' financial performance, commercial product and potential future products in different areas of therapeutic research and development. Results may differ materially depending on the progress of Pharmacyclics' product program, actions of regulatory authorities, availability of capital, future actions in the pharmaceutical market and developments by competitors and those factors detailed in Pharmacyclics' filings with the SEC, such as 10-Q, K and 8-K reports.

I would now like to turn the call over to Bob Duggan, our CEO and Chairman of the Board. Bob?

Robert W. Duggan

Thank you, Ramses, and welcome to all on the call. Since partnering with Janssen in December last year, we have made good progress clinically and organizationally. We continue to broadly and quickly develop ibrutinib across a variety of B-cell malignancies. Importantly, we continue to attract and hire highly competent professionals with excellent track records in the disciplines of science and administration from within the health care field.

The team we have assembled to date will be capable of building out the organization to complete the development of ibrutinib and introducing the compound commercially. We now have highly capable scientists and administrators overseeing the key functional areas of our company.

I will summarize here our most recent hires and organizational changes. If you'd like to read up more on our executives, you can find their resumes on our website.

Let me start with Dr. Maky Zanganeh. We promoted her to Chief Operating Officer. Just a bit of a background on Maky. She was hired at Pharmacyclics as Vice President, Business Development in August 2008. Within the first 9 months, she established the collaboration with Les Laboratoires Servier, the leading French independent pharmaceutical company, which provided Pharmacyclics immediate, upfront, milestone and yearly R&D payments. Since December 2010, she served as the company's Chief of Staff and Vice President, Business Development.

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