Furiex Reports Third Quarter 2012 Financial Results
Third Quarter 2012 Highlights:
November 1, 2012
Milestone revenue of $10.0 million related to Priligy® regulatory milestones.
Royalty revenue of $5.6 million, an increase of $2.5 million (81.4%) from second quarter 2012.
Amended Loan and Security Agreement providing $30.0 million in additional funding.
Cash and short-term investments balance of $47.8 million as of September 30, 2012.
MORRISVILLE, N.C. (November 1, 2012) - Furiex Pharmaceuticals, Inc. (NASDAQ: FURX) today reported its financial and operating results for the quarter ended September 30, 2012.
Furiex recorded third quarter milestone revenue of $10.0 million. These regulatory milestones were related to achievement of new country marketing approvals for Priligy® and became due from the Menarini Group upon closing of the new license agreement on July 30, 2012.
Furiex recorded third quarter royalty revenue of $5.6 million, compared to $1.3 million for the same period in the prior year and $3.1 million in the second quarter of 2012. Royalty revenue included royalties related to Nesina® and Liovel® sales in Japan, and Priligy® sales in various countries outside of the United States.
Research and development expenses were $14.8 million for the quarter ended September 30, 2012, compared to $12.0 million for the same period in the prior year. The increase in research and development expenses from the prior year quarter ended September 30, 2011 was a result of the decision to progress with MuDelta Phase III clinical trials in early 2012 and the costs associated with its continued development, partially offset by decreases in spending for the discontinued PPD-10558 program and completion of the Phase II clinical trial work related to MuDelta and JNJ-Q2.
Third quarter selling, general and administrative expenses were $3.2 million for 2012, compared to $2.1 million for the third quarter of 2011. The increase in selling, general and administrative expenses were due primarily to increases in non-cash stock compensation expense of $0.4 million and increases in consulting expenses of $0.4 million.
Interest expense of $0.8 million for the third quarter of 2012 related entirely to our loan agreement with MidCap Funding III, LLC and Silicon Valley Bank.
Net loss was $3.3 million for the third quarter of 2012, compared to $13.0 million for the third quarter of 2011. The decrease in net loss of $9.7 million during the third quarter of 2012, as compared to the third quarter of 2011, relates to the changes in revenue and expenses previously described.
Net loss per share for the third quarter of 2012 was $0.33, compared to $1.32 for the third quarter of 2011.
"The Furiex team continues to advance the MuDelta Phase III clinical trials," said June Almenoff, M.D., Ph.D., president and chief medical officer of Furiex. "We have recruited slightly more than 30% of our targeted patient enrollment needed to complete these pivotal studies."
"We have made significant strides on multiple fronts," added Fred Eshelman, Pharm.D., chairman of Furiex. "MuDelta development remains on track, Nesina and Liovel royalty revenue from Japan continues to ramp up, Takeda has resubmitted New Drug Applications for alogliptin and alogliptin/pioglitazone to the FDA, restructuring of the Priligy agreements is complete and immediately accretive, and we have secured $30 million in additional funding to support operations. We believe we have laid a sound foundation for the development of our product portfolio."
Furiex will conduct a live conference call and webcast Friday, November 2, 2012, at 9:00 a.m. ET to discuss its third quarter 2012 results and financial outlook for 2012 as well as provide an overview of its business and pipeline. A Q&A session will follow. All interested parties can access the webcast through the Presentations & Events link in the Investors section of the Furiex website at www.furiex.com. The webcast will be archived shortly after the call for on-demand replay. The conference call will be broadcast live over the Internet and will also be available using the following direct dial numbers:
Participant dial-in: +1.877.677.9122 (U.S./Canada)
+1.708.290.1401 (International)
Conference ID: 35741137
