Delaware (State or Other Jurisdiction of Incorporation) |
000-50767 (Commission File Number) |
04-3523569 (IRS Employer Identification No.) |
1255 Crescent Green Drive, Suite 250, Cary, NC (Address of Principal Executive Offices) |
27518 (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
CORNERSTONE THERAPEUTICS INC. |
||||
Date: May 12, 2011 | By: | /s/ Andrew K. W. Powell | ||
Andrew K. W. Powell | ||||
Executive Vice President, General Counsel and Secretary |
Exhibit No. | Description of Document | |
Exhibit 99.1 | Press release dated May 12, 2011. |
| Cash balance at March 31, 2011 grew to $86.1 million from $50.9 million as of December 31, 2010 | ||
| Net revenues for strategic products increased 20% to $21.0 million, as compared to $17.5 million in the first quarter of 2010 | ||
| Curosurf® posted a 4.2% increase in market share as compared to the first quarter of 2010 |
Three Months Ended | ||||||||||||||||
March 31, | Change | |||||||||||||||
2011 | 2010 | $ | % | |||||||||||||
Net Product Sales |
||||||||||||||||
Curosurf |
$ | 7,508 | $ | 7,097 | $ | 411 | 6 | % | ||||||||
Zyflo® product family |
7,412 | 6,274 | 1,138 | 18 | ||||||||||||
Factive® |
2,800 | 2,107 | 693 | 33 | ||||||||||||
Spectracef® product family |
3,277 | 1,977 | 1,300 | 66 | ||||||||||||
AlleRx ®Dose Pack products |
11,581 | 12,369 | (788 | ) | (6 | ) | ||||||||||
HyoMax ®product family |
788 | 3,899 | (3,111 | ) | (80 | ) | ||||||||||
Other products |
(3,391 | ) | 2,669 | (6,060 | ) | (227 | ) | |||||||||
Total net product sales |
29,975 | 36,392 | (6,417 | ) | (18 | ) | ||||||||||
License and royalty agreement revenues |
22 | 14 | 8 | 57 | ||||||||||||
Net Revenues |
$ | 29,997 | $ | 36,406 | $ | (6,409 | ) | -18 | % | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
(Unaudited) | ||||||||
Net revenues |
$ | 29,997 | $ | 36,406 | ||||
Costs and expenses: |
||||||||
Cost of product sales (exclusive of amortization of product
rights) |
7,537 | 6,819 | ||||||
Selling, general and administrative |
13,269 | 12,425 | ||||||
Royalties |
2,497 | 4,598 | ||||||
Research and development |
559 | 906 | ||||||
Amortization of product rights |
3,595 | 3,595 | ||||||
Total costs and expenses |
27,457 | 28,343 | ||||||
Income from operations |
2,540 | 8,063 | ||||||
Other expenses: |
||||||||
Interest expense, net |
(41 | ) | (1 | ) | ||||
Total other expenses |
(41 | ) | (1 | ) | ||||
Income before income taxes |
2,499 | 8,062 | ||||||
Provision for income taxes |
(757 | ) | (3,049 | ) | ||||
Net income |
$ | 1,742 | $ | 5,013 | ||||
Net income per share, basic |
$ | 0.07 | $ | 0.20 | ||||
Net income per share, diluted |
$ | 0.07 | $ | 0.19 | ||||
Weighted-average common shares, basic |
25,479,891 | 25,349,677 | ||||||
Weighted-average common shares, diluted |
26,088,851 | 25,951,952 | ||||||
March 31, | December 31, | |||||||
2011 | 2010 | |||||||
(Unaudited) | ||||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 86,078 | $ | 50,945 | ||||
Accounts receivable, net |
40,170 | 76,476 | ||||||
Inventories, net |
13,301 | 15,174 | ||||||
Prepaid and other current assets |
4,727 | 5,111 | ||||||
Income tax receivable |
| 197 | ||||||
Deferred income tax asset |
6,003 | 6,599 | ||||||
Total current assets |
150,279 | 154,502 | ||||||
Property and equipment, net |
1,425 | 1,486 | ||||||
Product rights, net |
108,733 | 112,328 | ||||||
Goodwill |
13,231 | 13,231 | ||||||
Amounts due from related parties |
38 | 38 | ||||||
Long-term accounts receivable and other assets |
2,338 | 8,553 | ||||||
Total assets |
$ | 276,044 | $ | 290,138 | ||||
Liabilities and Stockholders Equity |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 8,376 | $ | 7,671 | ||||
Accrued expenses |
42,979 | 46,599 | ||||||
Current portion of license agreement liability |
1,408 | 1,368 | ||||||
Current portion of capital lease |
85 | 83 | ||||||
Current portion of deferred revenue |
42,034 | 37,616 | ||||||
Income taxes payable |
224 | | ||||||
Total current liabilities |
95,106 | 93,337 | ||||||
Capital lease, less current portion |
124 | 146 | ||||||
Deferred revenue, less current portion |
1,950 | 19,578 | ||||||
Deferred income tax liability |
4,334 | 4,679 | ||||||
Total liabilities |
101,514 | 117,740 | ||||||
Stockholders equity |
||||||||
Preferred stock $0.001 par value, 5,000,000 shares
authorized; no shares issued and outstanding |
| | ||||||
Common stock $0.001 par value, 90,000,000 shares
authorized; 25,483,224 and 25,472,963 shares issued
and outstanding as of March 31, 2011 and December
31, 2010, respectively |
25 | 25 | ||||||
Additional paid-in capital |
160,496 | 160,106 | ||||||
Retained earnings |
14,009 | 12,267 | ||||||
Total stockholders equity |
174,530 | 172,398 | ||||||
Total liabilities and stockholders equity |
$ | 276,044 | $ | 290,138 | ||||
Three Months Ended March 31, | ||||||||
2011 | 2010 | |||||||
(Unaudited) | ||||||||
Cash flows from operating activities |
||||||||
Net income |
$ | 1,742 | $ | 5,013 | ||||
Adjustments to reconcile net income to net cash provided by operating
activities: |
||||||||
Amortization and depreciation |
3,713 | 3,678 | ||||||
Provision for prompt payment discounts |
1,067 | 1,144 | ||||||
Recovery of inventory allowances |
(268 | ) | (457 | ) | ||||
Stock-based compensation |
379 | 280 | ||||||
Benefit from (provision for) deferred income taxes |
251 | (738 | ) | |||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
35,239 | (4,450 | ) | |||||
Inventories |
2,141 | (2,803 | ) | |||||
Prepaid expenses, long-term accounts receivable and other assets |
6,599 | 1,746 | ||||||
Accounts payable |
705 | 960 | ||||||
Accrued expenses |
(3,580 | ) | 2,251 | |||||
Income taxes payable/receivable |
421 | 1,294 | ||||||
Deferred revenue |
(13,210 | ) | | |||||
Net cash provided by operating activities |
35,199 | 7,918 | ||||||
Cash flows from investing activities |
||||||||
Purchase of property and equipment |
(57 | ) | (136 | ) | ||||
Net cash used in investing activities |
(57 | ) | (136 | ) | ||||
Cash flows from financing activities |
||||||||
Proceeds from exercise of common stock options and warrants |
9 | 483 | ||||||
Excess tax benefit from stock-based compensation |
2 | 421 | ||||||
Principal payments on capital lease obligation |
(20 | ) | (3 | ) | ||||
Net cash (used in) provided by financing activities |
(9 | ) | 901 | |||||
Net increase in cash and cash equivalents |
35,133 | 8,683 | ||||||
Cash and cash equivalents as of beginning of year |
50,945 | 18,853 | ||||||
Cash and cash equivalents as of end of year |
$ | 86,078 | $ | 27,536 | ||||
Three Months Ended March 31, | ||||||||
2011 | 2010 | |||||||
GAAP income from operations |
$ | 2,540 | $ | 8,063 | ||||
Add: stock-based compensation1 |
379 | 280 | ||||||
Add: amortization of product rights |
3,595 | 3,595 | ||||||
Non-GAAP income from operations |
$ | 6,514 | $ | 11,938 | ||||
GAAP net income |
$ | 1,742 | $ | 5,013 | ||||
Add: stock-based compensation |
379 | 280 | ||||||
Add: amortization of product rights |
3,595 | 3,595 | ||||||
Less: tax effects related to above items1 |
(1,204 | ) | (1,465 | ) | ||||
Non-GAAP net income |
$ | 4,512 | $ | 7,423 | ||||
GAAP net income per share, diluted |
$ | 0.07 | $ | 0.19 | ||||
Non-GAAP net income per share, diluted |
$ | 0.17 | $ | 0.29 | ||||
Shares used in diluted net income per share calculation: |
||||||||
GAAP net income |
26,088,851 | 25,951,952 | ||||||
Non-GAAP net income |
26,088,851 | 25,951,952 | ||||||
1 | Tax effects for the three months ended March 31, 2011 and 2010 are calculated using effective tax rates of 30.3% and 37.8%, respectively. |
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