Fourth Quarter and Year End 2012 Financial Results
Total revenue was $5.5 million and $22.6 million for the three months and year ended December 31, 2012, respectively, compared to $5.4 million and $16.5 million for the comparable periods in 2011. Product revenue decreased in the fourth quarter to $1.4 million compared to $1.8 million in the prior year, and increased in the full year by 20% to $9.1 million compared to $7.6 million in 2011. The decrease in product revenues in the fourth quarter was primarily due to a decrease in sales of needle-free injector devices and disposable components to Teva and Ferring. The product revenue increase for the full year was primarily due to sales of our oxybutynin gel 3% product to Actavis in connection with their launch of Gelnique 3% in April 2012.
Development revenue was $1.1 million and $7.4 million for the three months and year ended December 31, 2012, respectively, compared to $1.7 million and $4.5 million during the same periods of 2011. The development revenue in each year was generated primarily from auto injector and pen injector development work for Teva, and development revenue earned under the Actavis license agreement.
Licensing revenue was $1.3 million and $2.1 million for the three months and year ended December 31, 2012, respectively, compared to $0.6 million and $1.2 million during the same periods of 2011. Revenue for the fourth quarter of 2012 was primarily related to a non-recurring payment received from a pharmaceutical partner and licensing revenue for the full year of 2012 also included an upfront fee received in connection with our licensing agreement with Daewoong Pharmaceuticals for our 3% oxybutynin gel for South Korea, along with license revenue recognized in connection with our license agreement with Actavis.
Revenue from royalties was $1.7 million and $3.9 million for the three months and year ended December 31, 2012, respectively, compared to $1.3 million and $3.1 million for the comparable periods in 2011. We received royalties from Teva and Ferring related to needle-free injector device sales and/or hGH sales and from Jazz Pharmaceuticals on sales of Elestrin®. In the third and fourth quarters of 2012 we also received royalty payments from Actavis on sales of Gelnique 3%, which was the primary reason for the increase in royalties in the quarter and year-to-date periods.
Total gross profit increased in the fourth quarter of 2012 to $3.8 million compared to $3.3 million in 2011, and increased for the year to $13.1 million in 2012 compared to $9.7 million in 2011. The increases were primarily attributable to increases in licensing revenue and royalties.
Total operating expenses were approximately $8.8 million and $3.4 million for the fourth quarters of 2012 and 2011, respectively, and approximately $24.5 million and $14.1 million for the years ended December 31, 2012 and 2011, respectively. The increase in 2012 was primarily due to expenses related to development of OTREXUP™, including a filing fee of approximately $2,000,000 paid in connection with the New Drug Application submitted to the FDA in the fourth quarter of 2012. Also contributing to the increase in operating expenses was OTREXUP™ market development work and the addition of employees in both development and marketing in 2012 compared to 2011.
Net loss was approximately $5.0 million and $0.2 million for the fourth quarters of 2012 and 2011, respectively, and $11.4 million and $4.4 million for the years ended December 31, 2012 and 2011.
Net loss per share increased for the year to $0.10 in 2012 from $0.05 in 2011, primarily due to an increase in operating expenses. Net loss per share increased to $0.04 for the fourth quarter of 2012 from $0.00 in 2011.
At December 31, 2012, cash and investments totaled approximately $85.2 million compared to approximately $34.4 million at December 31, 2011.
Hoping it was a "one-off" quarter.Maybe we make it up in the Q1 2013 quarter that ends in two weeks. Cash burn picked up a tad to an extra 3 million.Thinking that will accelerate a little more until OTREXUP hits the market.Overall,nothing earth shattering stood out to me. Waiting for the CC in an hour or so. I do not expect anything else,but a re-hash of what is posted already. It will probably be one of them CONSOLIDATING years until late Summer. $5-6 looks doable by year end and if OTREXUP is successful,and I think it will be,then we should really hockey-stick up come mid 2014. Oh the agony of having to wait :)