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Horizon Pharma Announces Third Quarter 2012 Financial Results and Provides Business Update
Horizon Pharma Announces Third Quarter 2012 Financial Results and Provides Business Update
Financial Results and Other Recent Highlights
- Gross and net sales for the third quarter of 2012 were
$7.3 million and$6.5 million , respectively. - In
September 2012 , the Company completed a public equity offering which resulted in net proceeds of approximately$81.0 million . - Cash balance at the end of the third quarter was
$121.3 million . - In early
October 2012 , the Company announced it had completed its internal sales force expansion from approximately 80 field sales representatives to 150 representatives. - In late September and mid-October, the Company announced additional patents covering DUEXIS and RAYOS in
the United States .
DUEXIS® Highlights
- Gross and net sales of DUEXIS in the third quarter of 2012 were
$3.0 and$2.6 million , respectively, a 63% increase in net sales versus the second quarter of 2012. - According to monthly data from Source Healthcare Analytics (SHA), formerly Wolters Kluwer, total prescriptions for the third quarter of 2012 were 25,054 compared to 18,805 total prescriptions for the second quarter of 2012, an increase of 33%.
- According to monthly data from SHA, total prescriptions for
September 2012 were 9,282, an increase of 10% versusAugust 2012 and an increase of 33% versusAugust 2012 after normalizing for selling days per month. - As of
October 1, 2012 , as a result of the Company's sales force expansion and theMallinckrodt co-promotion agreement, the called-on physician targets for DUEXIS increased five-fold, to fifty thousand, compared to the ten thousand physician targets the Company's original 80 sales representatives were able to cover.
RAYOS® Highlights
- RAYOS (prednisone) delayed-release tablets were approved by the
FDA onJuly 26, 2012 to treat a broad range of diseases including rheumatoid arthritis (RA) and polymyalgia rheumatica (PMR). - The Company's initial launch focus will be on rheumatology indications, including RA and PMR.
- Based on the extent of the approved indications, the Company will be developing a broader commercial strategy to expand the opportunity for RAYOS in key IL-6 mediated diseases, including asthma and COPD.
- Initial launch focus of RAYOS in the U.S. will be to a high-value subset of rheumatologists in the fourth quarter of 2012 to be followed by the full launch to the majority of U.S. rheumatologists and primary care physicians in late January of 2013.
"With our sales force expansion complete and recent DUEXIS U.S. co-promotion agreement with
Third Quarter Financial Results
For the third quarter ended
Net loss for the quarter ended
Non-GAAP net loss for the quarter ended
Research and development expenses decreased
Sales and marketing expenses during the current quarter increased
General and administrative expenses during the 2012 period increased
Interest expense, net increased
During the three months ended
Income tax benefit increased
Year-to-Date Financial Results
For the nine months ended
Net loss for the nine months ended
Non-GAAP net loss for the nine months ended
Research and development expenses increased
Sales and marketing expenses increased
General and administrative expenses increased
Interest expense, net increased
Note Regarding Use of Non-GAAP Financial Measures
Horizon provides non-GAAP net income (loss) and net income (loss) per share financial measures that include adjustments to GAAP figures. These adjustments to GAAP exclude non-cash items such as stock compensation and depreciation and amortization, non-cash interest expense, and other non-cash charges. Horizon believes that these non-GAAP financial measures, when considered together with the GAAP figures, can enhance an overall understanding of Horizon's financial performance. The non-GAAP financial measures are included with the intent of providing investors with a more complete understanding of operational results and trends. In addition, these non-GAAP financial measures are among the indicators Horizon's management uses for planning and forecasting purposes and measuring the Company's performance. These non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, non-GAAP financial measures used by other companies. Please refer to the financial statements portion of this press release for a reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures.
Conference Call
At
The live webcast and a replay may be accessed by visiting Horizon's website at http://ir.horizon-pharma.com. Please connect to the Company's website at least 15 minutes prior to the live webcast to ensure adequate time for any software download that may be needed to access the webcast. Alternatively, please call 1-888-338-8373 (U.S.) or 973-872-3000 (international) to listen to the conference call. The conference ID number for the live call is 36414974. Telephone replay will be available approximately two hours after the call. To access the replay, please call 1-855-859-2056 (U.S.) or 404-537-3406 (international). The conference ID number for the replay is 36414974.
About
Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding the on-going commercial launch of DUEXIS, development of commercial strategies to expand the opportunity for RAYOS in key IL-6 mediated diseases, the expected timeline for commercial launch of RAYOS in
Horizon Pharma, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
As of
----------------------------
September 30, December 31,
2012 2011
------------- -------------
Assets (Unaudited)
Current assets
Cash and cash equivalents $ 121,326 $ 17,966
Restricted cash 800 750
Accounts receivable, net 5,979 2,372
Inventories, net 3,666 1,195
Prepaid expenses and other current assets 4,334 2,763
------------- -------------
Total current assets 136,105 25,046
Property and equipment, net 3,620 3,245
Developed technology, net 68,647 35,602
In-process research and development - 36,638
Other assets 3,971 547
------------- -------------
Total assets $ 212,343 $ 101,078
============= =============
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $ 6,854 $ 8,170
Accrued expenses 12,613 8,926
Deferred revenues - current portion 3,584 3,281
Notes payable - current portion 7,957 3,604
------------- -------------
Total current liabilities 31,008 23,981
Long-term liabilities
Notes payable, net of debt discount 39,366 15,834
Deferred revenues, net of current 8,814 5,666
Deferred tax liabilities, net 4,615 9,561
Other long term liabilities 123 124
------------- -------------
Total liabilities 83,926 55,166
------------- -------------
Commitments and Contingencies
Stockholders' equity
Common stock, $0.0001 par value per share;
200,000,000 shares authorized; 61,038,167
and 19,627,744 shares issued and
outstanding at September 30, 2012 and
December 31 ,
respectively. 6 2
Additional paid-in capital 416,325 270,015
Accumulated other comprehensive loss (4,136) (3,788)
Accumulated deficit (283,778) (220,317)
------------- -------------
Total stockholders' equity 128,417 45,912
------------- -------------
Total liabilities and stockholders' equity $ 212,343 $ 101,078
============= =============
Horizon Pharma, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share data)
For the Three Months For the Nine Months
Ended Ended
September 30, September 30,
------------------------ ------------------------
2012 2011 2012 2011
----------- ----------- ----------- -----------
(Unaudited) (Unaudited)
Revenues
Sales of goods $ 7,260 $ 233 $ 14,671 $ 3,290
Contract revenue 51 40 156 111
----------- ----------- ----------- -----------
Gross sales 7,311 273 14,827 3,401
Sales discounts and
allowances (790) - (1,942) -
----------- ----------- ----------- -----------
Net sales 6,521 273 12,885 3,401
----------- ----------- ----------- -----------
Cost of goods sold 3,810 1,249 8,732 5,191
----------- ----------- ----------- -----------
Gross profit (loss) 2,711 (976) 4,153 (1,790)
Operating Expenses
Research and
development 3,796 5,346 12,098 11,536
Sales and marketing 12,951 5,141 34,466 7,426
General and
administrative 4,678 4,192 14,436 10,640
----------- ----------- ----------- -----------
Total operating
expenses 21,425 14,679 61,000 29,602
----------- ----------- ----------- -----------
Operating loss (18,714) (15,655) (56,847) (31,392)
Interest expense, net (3,339) (995) (11,081) (5,465)
Other expense - - (56) -
Foreign exchange gain
(loss) 588 (758) (312) (226)
----------- ----------- ----------- -----------
Loss before benefit for
income taxes (21,465) (17,408) (68,296) (37,083)
Income tax benefit (4,512) (177) (4,835) (545)
----------- ----------- ----------- -----------
Net loss $ (16,953) $ (17,231) $ (63,461) $ (36,538)
=========== =========== =========== ===========
Net loss per share-
basic and diluted $ (0.47) $ (1.30) $ (2.03) $ (6.69)
----------- ----------- ----------- -----------
Weighted average shares
outstanding
used in calculating net
loss per
share - basic and
diluted 35,972,657 13,256,189 31,227,336 5,458,561
----------- ----------- ----------- -----------
Horizon Pharma, Inc.
Reconciliation of GAAP Net Loss to Non-GAAP Net Loss
(in thousands, except share and per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------ -----------------------
2012 2011 2012 2011
----------- ----------- ----------- ----------
(Unaudited) (Unaudited)
GAAP Net Loss $ (16,953) $ (17,231) $ (63,461) $ (36,538)
Non-GAAP Adjustments (net
of tax effect):
Amortization of
developed technology 1,072 766 2,469 2,282
Stock-based
compensation 1,172 601 3,662 1,827
Non-cash interest
expense 658 210 1,827 2,683
Depreciation expense 167 104 559 305
Amortization of
deferred revenue (51) (40) (156) (111)
----------- ----------- ----------- ----------
Total of non-GAAP
adjustments 3,018 1,641 8,361 6,986
----------- ----------- ----------- ----------
Non-GAAP Net Loss $ (13,935) $ (15,590) $ (55,100) $ (29,552)
=========== =========== =========== ==========
Weighted average shares -
basic and diluted 35,972,657 13,256,189 31,227,336 5,458,561
GAAP net loss per common
share-basic and diluted $ (0.47) $ (1.30) $ (2.03) $ (6.69)
Non-GAAP adjustments
detailed above 0.08 0.12 0.27 1.28
----------- ----------- ----------- ----------
Non-GAAP net loss per
common share-basic and
diluted $ (0.39) $ (1.18) $ (1.76) $ (5.41)
=========== =========== =========== ==========
Horizon Pharma, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
Nine Months Ended September 30,
--------------------------------
2012 2011
--------------- ---------------
(Unaudited)
Cash flows from operating activities
Net loss $ (63,461) $ (36,538)
Adjustments to reconcile net loss to net
cash used in operating activities
Depreciation and amortization 3,648 3,071
Stock-based compensation 3,662 1,827
Non-cash interest expense 1,827 2,499
Paid in kind interest expense 1,860 -
Loss on disposal of assets 76 -
Foreign exchange loss 312 226
Changes in operating assets and
liabilities:
Accounts receivable (3,600) 342
Inventories (2,475) (838)
Prepaid expenses and other current
assets (1,577) (706)
Accounts payable (1,314) 1,180
Accrued expenses 2,937 656
Deferred revenues 3,498 1,909
Deferred tax liabilities (4,866) (567)
--------------- ---------------
Net cash used in operating
activities (59,473) (26,939)
--------------- ---------------
Cash flows from investing activities
Purchase of property and equipment (1,012) (449)
Increase in restricted cash (50) (250)
--------------- ---------------
Net cash used in investing
activities (1,062) (699)
--------------- ---------------
Cash flows from financing activities
Proceeds from issuance of notes payable,
net of issuance costs 55,578 16,651
Proceeds from equity finance offerings,
net of offering costs 128,092 -
Proceeds from the issuance of common stock
in initial public offering, net of
underwriting fees and issuance costs - 46,035
Repayment of notes payable (19,780) (12,747)
Proceeds from the issuance of common stock 296 -
Deferred financing expenses - (1,637)
Proceeds from issuance of bridge notes
payable to related parties - 6,766
Proceeds from stock option exercises - 45
--------------- ---------------
Net cash provided by financing
activities 164,186 55,113
--------------- ---------------
Effect of exchange rate changes on cash
and cash equivalents (291) 138
Net increase in cash and cash
equivalents 103,360 27,613
Cash and cash equivalents
Beginning of period 17,966 5,384
--------------- ---------------
End of period $ 121,326 $ 32,997
=============== ===============
ContactsRobert J. De Vaere Executive Vice President and Chief Financial Officer Email Contact InvestorsKathy Galante Burns McClellan, Inc. 212-213-0006 Email Contact
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