NEWARK, Calif., Feb. 23, 2015 /PRNewswire/ -- Depomed, Inc. (Nasdaq: DEPO) today reported financial results and highlighted operational achievements for the quarter and twelve months ended December 31, 2014.
“Over the past 12 months, Depomed has transformed into a leading specialty pharmaceutical company focused on pain and neurology, and we have substantial growth opportunities extending well into the next decade,” said Jim Schoeneck, President and CEO of Depomed. “Our product sales were strong in 2014, with record sales of $114.2 million -- nearly double 2013 sales and more than a four-fold increase over 2012 sales. We believe that we have demonstrated our ability to successfully integrate, launch and grow acquired products, leveraging our call points in pain and neurology. During 2014, we won two major District Court cases, further protecting the exclusivity runway for Gralise. And we have started 2015 with the most exciting news of all, signing the agreement to acquire NUCYNTA from Janssen. In the words of one of our long term investors, ‘over the last three years, Depomed has transformed into a dynamic enterprise, with the best times for the company still ahead’.”
Business and Financial Highlights
NUCYNTA Acquisition:
- In January 2015, signed a definitive agreement to acquire the U.S. rights to the NUCYNTA franchise from Janssen Pharmaceuticals, Inc. for $1.05 billion
- The deal will make NUCYNTA the flagship product in Depomed’s growing portfolio of pain and neurology specialty pharmaceuticals
- Upon closing in second quarter of 2015, transaction expected to be immediately accretive and to significantly increase Depomed’s product revenue, cash flow, EBITDA and adjusted earnings per share for 2015 and beyond
- Return on invested capital is estimated to exceed the cost of capital by 2016
- Unaudited NUCYNTA net sales for fourth quarter of 2014 were ~$44 million, an annualized revenue rate of $176 million; NUCYNTA sales not included in 2014 reported revenue
Total Product Sales:
- $114.2 million for the full year of 2014, an increase of 96% over the full year of 2013
- $33.9 million for fourth quarter of 2014, an increase of 80% over fourth quarter of 2013
- Compound annual growth rate since 2012 of 106%
Total Revenues:
- $390.4 million for full year 2014, which includes $242.8 million in non-cash revenues related to the PDL transaction
Net Income:
- Generated full year 2014 GAAP net income of $131.8 million and non-GAAP net income of $16.0 million
Earnings per Share:
- On a GAAP basis, full year and fourth quarter EPS was $2.05 and $1.23, respectively
- On a non-GAAP basis, full year and fourth quarter adjusted EPS was $0.26 and $0.21, respectively
Cash and Marketable Securities:
- Completed a sale of $345 million principal amount of Senior Convertible Notes in September
- $566.4 million in cash and marketable securities at December 31, 2014, of which $500 million has been placed in escrow for the NUCYNTA acquisition in January 2015
- Cash flow positive for fourth quarter and full year
Product Highlights
Gralise® (gabapentin)
- Full year 2014 net sales were $60.4 million, up from $36.2 million in 2013, and up from $17.3 million in 2012
- Fourth quarter 2014 net sales were $18.1 million, up 54% compared to fourth quarter 2013
- Two favorable verdicts achieved in U.S. Federal District Court in 2014 -- the ANDA litigation vs. Actavis and orphan exclusivity vs. FDA expected market exclusivity until 2024
- Total prescriptions for full year of 2014 were 289k, up from 239k in 2013, and up from 131k in 2012
Cambia® (diclofenac potassium for oral solution)
- Re-launched in first quarter of 2014, achieving full year 2014 net sales of $21.7 million
- Since re-launch in February 2014, quarterly net sales climbed from $4.6 million in first quarter, $5.0 million in second quarter and $5.8 million in third quarter to $6.3 million in fourth quarter
- Cambia 4Q total prescriptions reached a record 30.5k, up 33% since relaunch in 1Q 2014
- In January 2015, the American Headache Society updated guidelines for treatment of acute migraine. This evidence based review established CAMBIA as an effective (Level A) treatment for acute migraine attacks. This reinforces CAMBIA’s unique migraine targeted formulation as a stand-alone option with evidence for efficacy similar to other migraine-specific medicines
To read full press release, please click here.
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