EX-99.1 2 a13-11861_1ex99d1.htm EX-99.1

Exhibit 99.1

 

Depomed Reports First Quarter 2013 Financial Results

 

Conference Call Scheduled for today at 4:30 PM EDT

Updated dial in information included below

 

Newark, California, May 8, 2013 — Depomed, Inc. (Nasdaq:DEPO) today reported financial results for the quarter ended March 31, 2013.

 

First Quarter 2013 Update

 

·                  Total revenues of $26.2 million, an increase of 55% over first quarter 2012

·                  Gralise® (gabapentin) net sales of $6.1 million

·                  Zipsor® (diclofenac potassium) net sales of $3.0 million

·                  Glumetza® (metformin hydrochloride extended-release) royalties from Santarus, Inc. of $13.3 million

·                  Net loss of ($5.5) million or ($0.10) per share, compared to a net loss of ($8.8) million or ($0.16) per share for first quarter 2012

·                  $72.9 million of cash and marketable securities and no debt as of March 31, 2013

·                  Filed a patent infringement lawsuit against Purdue Pharma related to OxyContin® (oxycodone hydrochloride controlled-release), and filed a suit in April 2013 for infringement of the same patents against Endo Pharmaceuticals related to OPANA®ER (oxymorphone hydrochloride extended-release)

 

“Our results for the first quarter of 2013 illustrate the progress we have made in the past year toward building our specialty pharmaceutical business and increasing revenue from our license and collaboration arrangements.   During the first quarter, we realigned our sales force to increase the frequency of calls on our top potential prescribers and better balance our sales territories.  We believe that the resulting disruption of the sales rep-physician relationships affected our first quarter prescription growth.  However, we expect that the realignment will create additional demand in future quarters.  In addition, during the first quarter, key wholesalers reduced their inventories of Gralise and Zipsor from December 31 levels, resulting in lower sales.  We believe that Gralise prescription growth and product shipments in April have resumed a growth trend.” said Jim Schoeneck, President and Chief Executive Officer of Depomed. “For the remainder of 2013, we are focused on growing product and royalty revenues, managing expenses to achieve positive cash flow and continuing to work towards acquisitions that will enhance the position of the company.”

 

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Depomed First Quarter 2013 Results

 

Total revenues for the first quarter of 2013 were $26.2 million, consisting of $6.1 million of Gralise product sales, $3.0 million of Zipsor product sales, $14.1 million of royalties and $3.0 million of license and other revenue. First quarter 2012 revenues were $16.8 million. The increase in revenues in the first quarter of 2013 was driven by product sales of Gralise and Zipsor and increased Glumetza royalties.

 

Selling general and administrative expense was $26.0 million for the first quarter of 2013 as compared to $21.8 million for the first quarter of 2012. The increase is primarily due to sales and marketing expenses associated with Zipsor, which was acquired in June 2012, and the addition of the part-time contract sales force of 78 sales representatives in June 2012.

 

Research and development expense was $3.3 million for the first quarter of 2013 as compared to $3.5 million for the first quarter of 2012.

 

Net loss for the first quarter of 2013 was ($5.5) million, or ($0.10) per share, compared to net loss of ($8.8) million, or ($0.16) per share for the first quarter of 2012.

 

Cash and marketable securities were $72.9 million as of March 31, 2013 as compared to $77.9 million as of December 31, 2012.

 

2013 Financial Outlook

 

Depomed is reaffirming the financial outlook previously given for the full year of 2013.

 

·                  Total revenues of approximately $125 to $135 million, which includes approximately $6 million in anticipated milestones under our collaborative arrangements

·                  Operating expenses of approximately $120 to $130 million, which includes approximately $4 million of intangible amortization related to the acquisition of Zipsor

·                  Year-end 2013 cash and marketable securities of $70 to $80 million

 

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Conference Call

 

Depomed will host a conference call today, Wednesday, May 8th, beginning at 4:30 p.m. EDT (1:30 p.m. PDT) to discuss its results.  Participants can access the call by dialing 877-317-6789 (United States) or 412-317-6789 (international). The conference call will also be available via a live webcast on the investor relations section of Depomed’s website at http://www.depomed.com. Access the website 15 minutes prior to the start of the call to download and install any necessary audio software. An archived webcast replay will be available on the Company’s website for three months.

 

About Depomed

 

Depomed, Inc. is a specialty pharmaceutical company with three approved and marketed products. Gralise® (gabapentin) is a once-daily treatment approved for the management of postherpetic neuralgia (PHN).  Zipsor® (diclofenac potassium) Liquid Filled Capsules is a non-steroidal anti-inflammatory drug (NSAID) indicated for relief of mild to moderate acute pain in adults.   Glumetza® (metformin hydrochloride extended release tablets) is approved for use in adults with type 2 diabetes and is commercialized by Santarus, Inc. in the United States. The company formulates its products and product candidates with its proven, proprietary Acuform® drug delivery technology, which is designed to improve existing oral medications, allowing for extended release of medications to the upper gastrointestinal tract when dosed with food. Additional information about Depomed may be found on its website, www.depomed.com.

 

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. The statements that are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties including, but not limited to, those related to the commercialization of Gralise and Zipsor; the efforts of our collaboration partners to commercialize products; and other risks detailed in the company’s Securities and Exchange Commission filings, including the company’s Annual Report on Form 10-K for the year ended December 31, 2012 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2013. The inclusion of forward-looking statements should not be regarded as a representation that any of the company’s plans or objectives will be achieved. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

 

CONTACT:
August J. Moretti
Depomed, Inc.
510-744-8000
amoretti@depomed.com

 

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DEPOMED, INC.

CONDENSED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

 

 

 

Three Months Ended March 31,

 

 

 

2013

 

2012

 

 

 

(Unaudited)

 

(Unaudited)

 

Revenues:

 

 

 

 

 

Product sales

 

$

9,129

 

$

2,109

 

Royalties

 

14,081

 

9,421

 

License and other revenue

 

2,964

 

5,305

 

Total revenues

 

26,174

 

16,835

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

Cost of sales

 

1,484

 

518

 

Research and development expense

 

3,298

 

3,482

 

Selling, general and administrative expense

 

25,963

 

21,773

 

Amortization of intangible asset

 

962

 

—

 

Total costs and expenses

 

31,707

 

25,773

 

 

 

 

 

 

 

Loss from operations

 

(5,533

)

(8,938

)

Other income (expense)

 

(46

)

143

 

Benefit (provision) for income taxes

 

99

 

(9

)

Net loss

 

$

(5,480

)

$

(8,804

)

 

 

 

 

 

 

Basic net loss per common share

 

$

(0.10

)

$

(0.16

)

Diluted net loss per common share

 

$

(0.10

)

$

(0.16

)

 

 

 

 

 

 

Shares used in computing basic net loss per common share

 

56,460,829

 

55,554,579

 

Shares used in computing diluted net loss per common share

 

56,460,829

 

55,554,579

 

 

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DEPOMED, INC.

CONDENSED BALANCE SHEETS

(in thousands)

 

 

 

March 31,

 

December 31,

 

 

 

2013

 

2012

 

 

 

(Unaudited)

 

(1)

 

 

 

 

 

 

 

Cash, cash equivalents and marketable securities

 

$

72,889

 

$

77,892

 

Accounts receivable, net

 

5,292

 

3,614

 

Receivables from collaborative partners

 

10,015

 

10,078

 

Inventories

 

8,743

 

9,587

 

Property and equipment, net

 

8,090

 

8,237

 

Intangible assets, net

 

24,467

 

25,078

 

Prepaid and other assets

 

5,932

 

7,167

 

Total Assets

 

$

135,428

 

$

141,653

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

27,926

 

$

32,578

 

Deferred license revenue

 

17,797

 

18,789

 

Other liabilities

 

9,449

 

6,350

 

Shareholders’ equity

 

80,256

 

83,936

 

Total liabilities and shareholders’ equity

 

$

135,428

 

$

141,653

 

 

(1) Derived from the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

 

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