Cadence Pharmaceuticals, Inc. posted an adjusted net loss of 15 cents per share in the fourth quarter of 2012, narrower than the Zacks Consensus Estimate by a penny. The loss reported in the year-ago quarter was 37 cents per share.
Cadence Pharma reported net revenues of $17.1 million, up 192% year over year and in line with the Zacks Consensus Estimate.
For 2012, revenues came in at $50.1 million, up from $11.5 million in 2011 and in line with the Zacks Consensus Estimate. Cadence Pharma reported $0.1 million in licensing revenues in 2012, down from $5.2 million in 2011.
The license revenues primarily relate to Cadence Pharma's data license agreement with Terumo Corporation signed in 2010, which intends to seek regulatory approval in Japan for the same intravenous formulation of acetaminophen as Ofirmev.
Adjusted net loss for 2012 came in at 84 cents per share wider than the Zacks Consensus Estimate by 2 cents.
Quarter In Detail
The sales growth was driven by a significant jump in the sales of Ofirmev (acetaminophen) injection to $17.1 million, almost three times the figure reported in the year-ago quarter. License revenues came in at $0.085 million.
We note that Ofirmev is Cadence Pharmaceuticals’ proprietary intravenous formulation of acetaminophen. It is indicated to manage pain with adjunctive opioid analgesics as well as for the reduction of fever.
It was approved by the US Food and Drug Administration (FDA) in Nov 2010 and subsequently launched in the US in Jan 2011.
The exclusive rights to Ofirmev in the US and Canada were acquired by Cadence 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 Dec 31, 2012, Cadence Pharma had over 3,750 unique customer accounts, up 66% from the year-ago quarter.
Research and development expenses came in at $1.1 million, down $0.8 million from the year-ago quarter due to restructuring of the workforce in the fourth quarter of 2011, which was partially offset by clinical trial expenses incurred in the final quarter of 2012.
Selling, general and administrative costs were $20.0 million, down from $20.5 million in the year-ago quarter due to lower sales and marketing expenses, which was partially offset by higher legal fees.
Cadence Pharma expects net revenue for Ofirmev to be in the range of $94 million to $100 million in 2013, up from $50.1 million in 2012.
Cadence Pharmaceuticals currently holds a Zacks Rank #3 (Hold). Other pharma stocks, which are well placed, include Avanir Pharmaceuticals and Furiex Pharmaceuticals . Both stocks carry a Zacks Rank #2 (Buy).