UCD Product Portfolio Generates $113.6 Million for Fiscal Year 2014 and $30.8 Million in Net Sales During the Fourth Quarter of 2014
-- Company Generates $31 Million in Operating Cash Flows in 2014
-- Company to Host Conference Call Today at 4:30 p.m. ET (1:30 p.m. PT)
BRISBANE, Calif., Feb. 26, 2015 (GLOBE NEWSWIRE) -- Hyperion Therapeutics, Inc. (Nasdaq:HPTX) today reported net revenue of $30.8 million and $113.6 million during the fourth quarter and full year of 2014, respectively, from the sales of its two products for the treatment of urea cycle disorders (UCDs) RAVICTI® (glycerol phenylbutyrate) Oral Liquid and BUPHENYL® (sodium phenylbutyrate) Tablets and Powder. Adjusted net income for the fourth quarter 2014 was $10.3 million, or $0.47 per diluted share and adjusted net income for the full year of 2014 was $36.2 million, or $1.67 per diluted share. Hyperion ended the year with cash, cash equivalents and investments of $146.5 million.
“2014 was another momentous year of growth for us as we continued to make great inroads toward increasing the number of UCD patients treated with RAVICTI,” said Donald J. Santel, president and chief executive officer. “We have delivered strong quarter over quarter financial results, and importantly, we have contributed to the body of knowledge regarding the optimal treatment of UCDs via publication of data from our clinical trials.”
Santel added, “As 2015 progresses, we will further expand our base business by continuing our education efforts to patients and physicians to improve outcomes for UCD patients. We expect to receive a decision from the European Medicines Agency on our Marketing Authorization Application for RAVICTI by year-end, begin our Phase 3 clinical trial in hepatic encephalopathy in the second half of 2015, and finally, a continued priority for us is increasing shareholder value by broadening our pipeline.”
Fourth Quarter 2014 Financial Results
Adjusted net income was $10.3 million, or $0.47 per diluted share for the three months ended December 31, 2014 compared with an adjusted net earnings of $4.1 million, or $0.19 per diluted share for the same period of 2013. Net income as measured under U.S. generally accepted accounting principles (“GAAP”) was $7.1 million, or $0.32 earnings per diluted share for the three months ended December 31, 2014 compared with a net income of $0.5 million, or $0.02 earnings per diluted share for the same period of 2013. A reconciliation of adjusted net income (loss) to GAAP net income (loss) is provided in the accompanying table below entitled “Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income (Loss).”
Revenue
During the three months ended December 31, 2014, Hyperion recognized net product revenue of $30.8 million from sales of RAVICTI and BUPHENYL, a 65% increase over the prior year quarter. Net product revenue for the period included $26.3 million in net product revenue from RAVICTI, a $12.0 million increase from fourth quarter 2013 RAVICTI sales of $14.3 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 of 2014, 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.
Net product revenue from BUPHENYL was $4.6 million for the three months ended December 31, 2014 compared with $4.5 million for the same period in 2013.
Net product revenue from RAVICTI and BUPHENYL for the three months ended December 31, 2014 was partially offset by $0.1 million of co-payment assistance, a program to reduce financial burden for patients for both RAVICTI and BUPHENYL.
Cost of Sales
Cost of sales for the three months ended December 31, 2014 was $3.8 million and consisted of RAVICTI product costs of $2.6 million and BUPHENYL product costs of $1.2 million. RAVICTI product costs included $2.1 million for royalty expenses payable under our restated collaboration agreement with Ucyclyd Pharma, Inc.
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