UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q/A
(Amendment No. 1)
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED June 30, 2012
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM TO
COMMISSION FILE NUMBER 001-13111
DEPOMED, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
CALIFORNIA |
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94-3229046 |
(STATE OR OTHER JURISDICTION OF |
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(I.R.S. EMPLOYER |
INCORPORATION OR ORGANIZATION) |
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IDENTIFICATION NUMBER) |
1360 OBRIEN DRIVE
MENLO PARK, CALIFORNIA 94025
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES, INCLUDING ZIP CODE)
(650) 462-5900
(REGISTRANTS TELEPHONE NUMBER, INCLUDING AREA CODE)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, as defined in Rule 12b-2 of the Exchange Act.
Large accelerated filer o |
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Accelerated filer x |
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Non-accelerated filer o |
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Smaller reporting company o |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x
The number of issued and outstanding shares of the Registrants Common Stock, no par value, as of August 1, 2012 was 56,028,068.
Explanatory Note
Depomed, Inc. (Depomed or the Company) is filing this Amendment No. 1 (this Form 10-Q/A) to its Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, filed with the Securities and Exchange Commission on August 3, 2012 (the Form 10-Q), for the sole purpose of correcting errors within its Interactive Data File included in the Form 10-Q filing as Exhibit 101. In the previously-furnished Interactive Data File, Note 2 - Cash, cash equivalents and marketable securities was not block-text tagged and tables from the block-text tagging of Note 7 - Comprehensive income (loss) and Note 9 - Accounts payable and accrued liabilities were not included. No other changes have been made to the Form 10-Q. This Form 10-Q/A continues to speak as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update any related disclosures made in the Form 10-Q.
ITEM 6. EXHIBITS
(a) Exhibits
3.1 (1) |
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Amended and Restated Articles of Incorporation |
3.2 (2) |
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Certificate of Amendment to Amended and Restated Articles of Incorporation |
3.3 (3) |
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Certificate of Determination of Series RP Preferred Stock of the Company |
3.4 (4) |
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Bylaws, as amended |
4.1 (5) |
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Rights Agreement, dated as of April 21, 2005, between the Company and Continental Stock Transfer and Trust Company as Rights Agent |
10.1 |
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Asset Purchase Agreement between Depomed , Inc. and Xanodyne, Inc. |
10.2 |
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2004 Employee Stock Purchase Plan (as amended May 15, 2012) |
10.3 |
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Form of Management Continuity Agreement between the Company and certain officers of the Company |
31.1 |
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Certification pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934 of James A. Schoeneck |
31.2 |
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Certification pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934 of August J. Moretti |
32.1 |
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Certification pursuant to 18 U.S.C. Section 1350 of James A. Schoeneck |
32.2 |
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Certification pursuant to 18 U.S.C. Section 1350 of August J. Moretti |
101 * |
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Interactive Data Files pursuant to Rule 405 of Regulation S-T |
* Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act, are deemed not filed for purposes of Section 18 of the Exchange Act, and otherwise are not subject to liability under these sections.
Previously filed
(1) Incorporated by reference to the Companys registration statement on Form SB-2 (File No. 333-25445)
(2) Incorporated by reference to the Companys Form 10-K filed on March 31, 2003
(3) Incorporated by reference to the Companys Form 10-Q filed on May 10, 2005
(4) Incorporated by reference to the Companys Form 8-K filed on April 19, 2005
(5) Incorporated by reference to the Companys Form 8-A filed on April 22, 2005
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Amendment No.1 to this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: August 13, 2012 |
DEPOMED, INC. |
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/s/ James A. Schoeneck |
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James A. Schoeneck |
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President and Chief Executive Officer |
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/s/ August J. Moretti |
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August J. Moretti |
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Chief Financial Officer |
Shareholders' Equity (Details) (USD $)
In Millions, except Share data, unless otherwise specified |
1 Months Ended | 3 Months Ended | 6 Months Ended |
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May 31, 2012
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Jun. 30, 2012
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Jun. 30, 2012
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Shareholders' Equity [Abstract] | |||
Options exercised during period | 168,855 | 302,916 | |
Net proceeds from options exercised during the period | $ 0.5 | $ 1.0 | |
Shares sold under the ESPP | 109,282 | ||
Weighted average purchase price per shares sold under the ESPP | $ 4.18 | ||
Net proceeds from ESPP | $ 0.5 |
License And Other arrangements (Details) (USD $)
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3 Months Ended | 6 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||
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Jun. 30, 2012
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Jun. 30, 2011
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Jun. 30, 2012
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Jun. 30, 2011
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Jul. 31, 2008
Santarus Inc. [Member]
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Jun. 30, 2012
Santarus Inc. [Member]
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Jun. 30, 2011
Santarus Inc. [Member]
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Jun. 30, 2012
Santarus Inc. [Member]
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Jun. 30, 2011
Santarus Inc. [Member]
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Jun. 30, 2012
Ventiv Commercial Services, LLC [Member]
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Jun. 30, 2012
Ventiv Commercial Services, LLC [Member]
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Mar. 31, 2011
Abbott Products Inc. [Member]
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Feb. 28, 2011
Abbott Products Inc. [Member]
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Feb. 28, 2009
Abbott Products Inc. [Member]
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Mar. 31, 2011
Abbott Products Inc. [Member]
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Apr. 30, 2011
Boehringer Ingelheim International GMBH [Member]
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Jun. 30, 2012
Boehringer Ingelheim International GMBH [Member]
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Mar. 31, 2012
Boehringer Ingelheim International GMBH [Member]
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Jun. 30, 2011
Boehringer Ingelheim International GMBH [Member]
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Jun. 30, 2012
Boehringer Ingelheim International GMBH [Member]
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Jun. 30, 2011
Boehringer Ingelheim International GMBH [Member]
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Jul. 31, 2011
Ironwood Pharmaceuticals, Inc. [Member]
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Jun. 30, 2012
Ironwood Pharmaceuticals, Inc. [Member]
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Mar. 31, 2012
Ironwood Pharmaceuticals, Inc. [Member]
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Jun. 30, 2012
Ironwood Pharmaceuticals, Inc. [Member]
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Royalty receivable percentage, 2011 | 26.50% | ||||||||||||||||||||||||
Royalty receivable percentage, 2012 | 29.50% | ||||||||||||||||||||||||
Royalty receivable percentage, 2013 and 2014 | 32.00% | ||||||||||||||||||||||||
Royalty receivable percentage, 2015 and thereafter | 34.50% | ||||||||||||||||||||||||
Royalties | $ 9,577,000 | $ 67,000 | $ 18,998,000 | $ 232,000 | $ 9,400,000 | $ 18,600,000 | |||||||||||||||||||
Promotional fee paid, percentage of gross margin | 75.00% | ||||||||||||||||||||||||
Promotion fee expense | 11,055,000 | 21,317,000 | 11,100,000 | 21,300,000 | |||||||||||||||||||||
License and other revenue | 1,332,000 | 4,998,000 | 6,637,000 | 72,623,000 | 1,000,000 | 200,000 | 2,000,000 | 500,000 | 3,900,000 | 4,900,000 | 200,000 | 500,000 | |||||||||||||
Gain on settlement agreement | 40,000,000 | 40,000,000 | |||||||||||||||||||||||
Upfront agreement fee received | 12,000,000 | 25,000,000 | 10,000,000 | 900,000 | |||||||||||||||||||||
Upfront agreement fee deferred revenue balance | 5,800,000 | 11,300,000 | |||||||||||||||||||||||
Collaborative agreement expense incurred | 7,600,000 | 14,400,000 | |||||||||||||||||||||||
Milestone revenue received | 48,000,000 | 2,500,000 | 1,000,000 | ||||||||||||||||||||||
Upfront agreement fee tax withholdings | 1,500,000 | ||||||||||||||||||||||||
Upfront agreement fee net of tax | 8,500,000 | ||||||||||||||||||||||||
Monthly management fee fulltime reps | 1,800,000 | ||||||||||||||||||||||||
Monthly management fee for part-time sales reps | 500,000 | ||||||||||||||||||||||||
Additional service agreement revenue | $ 0 | $ 500,000 | $ 100,000 | $ 600,000 | $ 100,000 | ||||||||||||||||||||
Number of full-time sales representatives | 164 | ||||||||||||||||||||||||
Number of part-time sales representatives | 78 | ||||||||||||||||||||||||
Percent of out-of-pocket costs reimbursed to company | 70.00% | ||||||||||||||||||||||||
Percent of out-of-pocket costs reimbursed by company | 30.00% |
Inventories (Tables)
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6 Months Ended |
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Jun. 30, 2012
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Inventories [Abstract] | |
Schedule Of Inventory |
Leases (Details) (USD $)
In Thousands, unless otherwise specified |
1 Months Ended | 3 Months Ended | 6 Months Ended |
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Apr. 30, 2012
sqft
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Jun. 30, 2012
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Jun. 30, 2012
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Leases [Abstract] | |||
Amount of space agreed to lease | 52,500 | ||
Addition lease space, obligation | 8,000 | ||
Lease termination penalty interest | 8 | 8 | |
Lease renewaloOption period | 12 months | ||
Operating Leases, Rent Expense | $ 300 | ||
Operating Leases, Future Minimum Payments Due | $ 12,200 | $ 12,200 |
Inventories (Details) (USD $)
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Jun. 30, 2012
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Dec. 31, 2011
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Inventories [Abstract] | ||
Raw materials | $ 1,786,000 | $ 1,244,000 |
Work-in-process | 1,289,000 | 643,000 |
Finished goods | 5,273,000 | 2,831,000 |
Deferred costs | 377,000 | 677,000 |
Less: allowance for obsolescence | (696,000) | |
Total | 8,029,000 | 5,395,000 |
Business acquisition step up in value of inventories | $ 1,900,000 |
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