Cadence Pharmaceuticals, Inc. (CADX) posted an adjusted net loss of 13 cents per share in the first quarter of 2013, narrower than the Zacks Consensus Estimate of a loss of 14 cents. The loss reported by the company in the year-ago quarter was 27 cents per share.
Cadence Pharma reported net revenues of $23.6 million, up 195% year over year and easily surpassing the Zacks Consensus Estimate of $19 million.
The sales growth was driven by a significant jump in the sales of Ofirmev (acetaminophen). The reported sales also include the one-time recognition of $2.6 million in deferred revenue on previously shipped product. The company now recognizes revenue when the product is sold.
We note that Ofirmev is Cadence Pharmaceuticals’ proprietary intravenous formulation of acetaminophen. The product is indicated to manage pain with adjunctive opioid analgesics as well as for the reduction of fever.
Ofirmev 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) in 2006. The drug is marketed by Bristol-Myers as Perfalgan in Europe and other parts of the world. In Feb 2013, Cadence further extended its agreement with Bristol-Myers Squibb through Dec 2018.
As of Dec 31, 2012, Cadence Pharma had over 4,000 unique customer accounts, up 50% from the year-ago quarter.
Research and development expenses came in at $1.4 million, down 9.8% year over year. The decrease in R&D expenses was primarily due to lower personnel costs, which were largely offset by costs incurred for post approval clinical trial for Ofirmev in pediatric patients.
Selling, general and administrative costs were $21.6 million, down 8.0% from the year-ago quarter.
Outlook Upped
Cadence Pharma increased its guidance to account for the impact of the deferred revenue recognized in the first quarter of 2013. Net product revenues from sales of Ofirmev are projected in the range of $97 million to $103 million in 2013, up from the earlier estimated range of $94 million – $100 million. The Zacks Consensus Estimate of $98 million was well within the guidance.
Cadence Pharma currently holds a Zacks Rank #3 (Hold). Other pharma stocks, which are well placed, include Furiex Pharmaceuticals (FURX) and Onyx Pharmaceuticals, Inc. (ONXX). Both stocks carry a Zacks Rank #2 (Buy).
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