Total net revenues for the third quarter of 2012 were $6.7 million, compared to $4.9 million for the third quarter of 2011. The increase in total net revenues was driven primarily by a $1.5 million increase in net product revenues and, to a lesser extent, higher royalty revenues.

  • Net product revenues increased to $5.6 million in the third quarter of 2012 as compared to $4.1 million in the third quarter of 2011, primarily due to higher sales to Merck Serono and Watson.
  • Total royalty revenues were $1.0 million in the third quarter of 2012, compared to $0.8 million in the third quarter of 2011, primarily reflecting royalty revenues from Watson on CRINONE products.
  • There were essentially no other revenues in the third quarter of 2012 or 2011.

Gross profit margin on total net revenues was 52% for the third quarter of 2012, compared to 37% in the third quarter of 2011. Gross profit on net product revenues for the third quarter of 2012 was 43% compared with 24% for the same period in 2011. The higher profit margins in the 2012 quarter resulted primarily from the shift in sales mix to Merck Serono in favor of higher-margin country markets.

General and administrative costs were $1.9 million in the third quarter of both 2012 and 2011. Higher professional fees for business development activities and securities litigation costs were offset by lower personnel costs following the 2012 workforce reduction.

Research and development costs were $0.1 million in the third quarter of 2012, compared to $0.5 million in the 2011 quarter. The $0.4 million decrease primarily reflects lower personnel costs following the 2012 workforce reduction and lower project expenses.

As a result, total net operating expenses decreased to $2.0 million in the third quarter of 2012 as compared to $2.4 million in the prior year period.

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