Hyperion Therapeutics Announces Second Quarter 2014 Financial Results
8/8/2014 9:24:44 AM
BRISBANE, Calif., Aug. 7, 2014 (GLOBE NEWSWIRE) -- Hyperion Therapeutics, Inc. (Nasdaq:HPTX) today reported net revenue of $37.1 million during the second quarter of 2014 from the sales of its two products for the treatment of urea cycle disorders, RAVICTI® (glycerol phenylbutyrate) Oral Liquid and BUPHENYL® (sodium phenylbutyrate) Tablets and Powder. Adjusted net income for the second quarter 2014 was $21.1 million compared to an adjusted net loss of $4.3 million in the second quarter of 2013, an increase of $25.4 million. Hyperion ended the second quarter of 2014 with cash, cash equivalents and investments of $125.5 million.
"This is a very dynamic and exciting time at Hyperion," said Donald J. Santel, president and chief executive officer of Hyperion. "Our business remains profitable. We have a strong commercial infrastructure in place to continue to grow the RAVICTI market in the US and anticipate commercializing RAVICTI outside the US in late 2015. We broadened our orphan disease portfolio by closing the Andromeda acquisition and remain focused on our corporate development efforts to expand our pipeline."
Second Quarter 2014 Financial Results
Net income as measured under U.S. generally accepted accounting principles ("GAAP") was $17.5 million, or $0.81 earnings per diluted share for the three months ended June 30, 2014 compared with a net income of $25.0 million, or $1.17 earnings per diluted share for the same period of 2013. Adjusted net income was $21.1 million, or $0.98 earnings per diluted share for the three months ended June 30, 2014 compared with an adjusted net loss of $4.3 million, or $0.21 loss per diluted share for the same period of 2013. A reconciliation of adjusted net income (loss) to GAAP net income is provided in the accompanying table below entitled "Reconciliation of GAAP Net Income to Adjusted Net Income (Loss)."
During the three months ended June 30, 2014, Hyperion generated net product revenue of $37.1 million from sales of RAVICTI and BUPHENYL. Net product revenue for the period included $31.6 million in net product revenue from RAVICTI, a $25.4 million increase from second quarter 2013 RAVICTI sales of $6.2 million. The increase in the net product revenue for RAVICTI was primarily due to the following:
* A steady increase in the number of patients on RAVICTI since its initial commercialization in March 2013; and
* In the second quarter, Hyperion transitioned to the sell-in revenue recognition method from the sell-through method for RAVICTI. Under the sell-in method, revenue is recognized when RAVICTI is received by the specialty distributor, whereas under the sell-through method, revenue is recognized when the patient receives RAVICTI from the specialty pharmacies. In the second quarter of 2014, the Company was able to reasonably estimate sales deductions and in accordance with US GAAP, began recognizing RAVICTI revenue at the point of sale to the specialty distributor. This resulted in the recognition of an additional $11.7 million in net product revenue, representing the difference of recognizing net product revenue on a sell-in method compared to recognizing net product revenue on a sell-through method during the quarter.
For comparative purposes, the following table presents the Company's net product revenues for RAVICTI as recognized for the three months ended March 31, 2014, under the sell-through method, and as if the Company were still using the sell-through method for the three months ended June 30, 2014, which reflects a 28 percent increase in revenues from the first quarter to the second quarter:
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