Columbia Laboratories, Inc. (NasdaqCM: CBRX) today reported financial results for the three and six-month periods ended June 30, 2013. Highlights include:
- Total net revenues were $8.0 million in the second quarter of 2013, as compared to $8.2 million in the second quarter of 2012. A $1.6 million increase in net product revenues from Merck Serono S.A. (“Merck Serono”) and higher royalty revenues from Actavis, Inc. (“Actavis”) were offset by the absence of net product revenues from Actavis in the 2013 quarter.
- For the first half of 2013, total net revenues increased 18% to $14.3 million, as compared to $12.1 million in the first half of 2012. A $4.0 million increase in net product revenues from Merck Serono and higher royalty revenues from Actavis were offset by the absence of net product revenues from Actavis in the first half of 2013.
- Income from operations was $2.8 million in the second quarter of 2013, as compared to $1.7 million in the second quarter of 2012, reflecting higher gross margins in the 2013 quarter.
- For the first half of 2013, income from operations was $3.8 million, as compared to $0.4 million in the first half of 2012, reflecting increased revenues and higher gross margins in the 2013 period.
- Total cash and cash equivalents increased by $2.2 million in the quarter to $31.4 million at June 30, 2013.
- Agreement with Merck Serono for CRINONE® (progesterone gel) extended through May 2020.
- Relocation of the Company to Boston completed.
Second Quarter Financial ResultsTotal net revenues for the second quarter of 2013 were comprised primarily of net product revenues for international sales of CRINONE to Merck Serono, and royalties from Actavis on Actavis' total net sales of CRINONE in the U.S. Total product revenues were $7.0 million in the second quarter of 2013, compared to $7.4 million in the second quarter of 2012.
- Product revenues from CRINONE sold to Merck Serono increased by $1.6 million, or 29%, as compared to the second quarter of 2012. The higher revenues reflect a 23% increase in volume quarter over quarter, coupled with increased shipments to countries with higher net selling prices.
- There were no revenues from product sold to Actavis, compared to $1.9 million in the second quarter of 2012. As previously disclosed, Columbia does not expect any material orders from Actavis for CRINONE during 2013, as Actavis currently has sufficient inventory of CRINONE.
There were no research and development costs in the second quarter of 2013, compared to $0.2 million in the 2012 quarter. The decrease reflects the elimination of our R&D activities in 2012.The Company reported net income of $2.7 million, or $0.03 per basic and diluted share, compared to net income of $1.9 million, or $0.02 per basic and diluted share, for the second quarter of 2012. At June 30, 2013, Columbia had cash and cash equivalents of $31.4 million, compared to cash, cash equivalents and short-term investments of $28.6 million at December 31, 2012. Financial Outlook Columbia sells product to our partners in full batches; any shift in the timing of batch orders can make comparison with the prior periods difficult. In the first half of 2013, a shift in the timing of batch orders contributed to the 51% increase in our net product revenues from Merck Serono as compared to the first half of 2012. Due to this timing shift, we anticipate that product revenues from Merck Serono will be lower in the second half of the year than in the first half. We continue to expect ongoing year-over-year growth in product revenue from Merck Serono and royalty revenue from Actavis going forward. With the relocation to Boston now complete, the Company expects reduced operating expenses and to remain cash-flow positive on an ongoing basis. We continue to evaluate potential strategic transactions to add value for its stockholders. Any significant expenses associated therewith may negatively impact cashflow and operating expenses in the period incurred. Subsequent Events Columbia’s Board Approves One-for-Eight Reverse Split Ratio On July 26, 2013, the Company announced that its Board of Directors had set a ratio of 1-for-8 for its previously approved reverse stock split of its common stock, and an anticipated effective date for the reverse stock split of the later of (i) the filing with the Secretary of the State of Delaware of a certificate of amendment with respect to the reverse stock split or (ii) August 9, 2013. The reverse stock split was approved by the Company’s stockholders at its annual meeting of stockholders on May 1, 2013.
Conference CallAs previously announced, Columbia Laboratories will hold a conference call to discuss financial results for the second quarter ended June 30, 2013, as follows:
|Date:||Wednesday, August 7, 2013|
|Time:||11:00 am EDT|
|Dial-in numbers:||(877) 303-9483 (U.S. & Canada) or (760) 666-3584|
|Live webcast:||www.columbialabs.com, under 'Investor' or click here|
CRINONE ® is a registered trademark of Actavis, Inc.
|COLUMBIA LABORATORIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)|
|Three Months Ended June 30,||Six Months Ended June 30,|
|Net product revenues||$||7,019,080||$||5,439,047||$||12,392,028||$||8,317,278|
|Net product revenues from related party||-||1,922,782||-||2,163,183|
|Royalties from related party||836,913||727,558||1,636,913||1,327,558|
|Total net revenues||7,977,818||8,230,536||14,293,542||12,064,077|
|Cost of product revenues||2,830,596||2,718,037||5,672,335||4,502,499|
|Cost of product revenues from related party||-||1,747,809||-||1,966,333|
|Total cost of revenues||2,830,596||4,465,846||5,672,335||6,468,832|
|Research and development (net of reimbursement from related party: three months 2012 - $3,092; six months 2012 - $435,199)||-||159,072||-||712,750|
|General and administrative||2,319,594||1,923,356||4,780,157||4,474,681|
|Total operating expenses||2,319,594||2,082,428||4,780,157||5,187,431|
|Income from operations||2,827,628||1,682,262||3,841,050||407,814|
|Interest income, net||42,545||63,624||95,355||122,745|
|Change in fair value of stock warrants||(154,746||)||205,700||50,026||6,465,067|
|Other expense, net||(55,874||)||(8,776||)||(82,362||)||(95,747||)|
|Income before income taxes||2,659,553||1,942,810||3,904,069||6,899,879|
|Income tax provision||2,674||-||5,550||2,676|
|Diluted net income per share||$||0.03||$||0.02||$||0.04||$||0.00|
|Diluted weighted average shares outstanding||88,614,341||88,483,609||88,600,366||88,440,185|
|Basic net income per share||$||0.03||$||0.02||$||0.04||$||0.08|
|Basic weighted average shares outstanding||87,413,773||87,305,184||87,372,558||87,300,585|
|COLUMBIA LABORATORIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS|
|June 30,||December 31,|
|Cash and cash equivalents||$||31,420,780||$||13,204,067|
|Accounts receivable, net||4,515,983||3,353,636|
|Prepaid expenses and other current assets||979,572||1,284,279|
|Total current assets||39,500,024||35,902,555|
|Property and equipment, net||787,134||927,227|
|Other noncurrent assets||153,498||38,882|
|Liabilities and stockholders’ equity:|
|Total current liabilities||3,374,276||3,745,934|
|Deferred revenue, net of current portion||-||33,526|
|Common stock warrant liability||1,123,721||1,173,747|
|Commitments and Contingencies|
|Series C preferred stock||550,000||550,000|
|Total stockholders’ equity||35,392,659||31,365,457|
|Total liabilities and stockholders’ equity||$||40,440,656||$||36,868,664|