Cadence Pharmaceuticals, Inc. posted a net loss of 14 cents per share in the second quarter of 2013, wider than the Zacks Consensus Estimate of a loss of 11 cents. The loss reported in the year-ago quarter was 25 cents per share.
Cadence Pharma reported net revenues of $24.7 million, up 123% year over year, and marginally above the Zacks Consensus Estimate of $24.0 million.
Quarter In Detail
Excluding the one-time recognition of deferred revenues, net product revenue increased 18% sequentially.
Sales growth was driven by a significant jump in the sales of vials of Ofirmev which more than doubled year over year to 2.2 million.
We note that Ofirmev is Cadence Pharma’s proprietary intravenous formulation of acetaminophen. It is indicated to manage pain with adjunctive opioid analgesics as well as for the reduction of fever.
The exclusive rights to Ofirmev in the U.S. and Canada were acquired by Cadence Pharma from Bristol-Myers Squibb (BMY - Analyst Report) in 2006. The drug is marketed by Bristol-Myers as Perfalgan in Europe and other parts of the world.
As of Jun 30, 2013, Cadence Pharma had over 4,350 unique customer accounts, up 37% from the year-ago quarter.
Gross margin came in at 66%, up from 48% in the year-ago quarter driven by price increases.
Operating expenses grew 7% to $27.2 million due to higher legal fees, which was partially offset by lower sales and marketing costs.
Based on strong sales of Ofirmev in the first half of 2013, Cadence Pharma expects net revenue for Ofirmev in the range of $103.0 – $105.0 million in 2013, up from the earlier guidance range of $97.0 million – $103.0 million. The Zacks Consensus Estimate stands at $104.0 million.
Although earnings missed our estimates, we are encouraged by the momentum in Ofirmev sales and the subsequent increase in guidance.
Cadence Pharma currently holds a Zacks Rank #2 (Buy). Other stocks which look attractive include Avanir Pharmaceuticals and Jazz Pharmaceuticals (JAZZ - Analyst Report). Both stocks carry a Zacks Rank #2 (Buy).