Depomed Inc (NASDAQ:DEPO) Surges On Solid Results
Depomed Inc (NASDAQ:DEPO) stock was up 11.45 percent during trading on 3rd March on the back of strong preliminary results reported by the pharmaceutical firm on 25th February. It also reported on the same day that it would acquire the complete rights of the fast selling drug CAMBIA from drug firm Nautilus Neurosciences. The drug which is also known by its chemical name of diclofenac potassium is an oral solution.
The firm released preliminary results ahead of its full fledged earnings results on 3rd March after markets closing, since its executives were lined up to be key speakers at the industry talk shops of Cowen & Co. Healthcare Conference and Global Capital Markets Healthcare Conference later this week.
Productive Drug Pipeline
The highlights of the earnings preview was that the product sales from its four flagship product lines of “Gralise®, Zipsor®, Lazanda® and CAMBIA®” was up to hit $18.8 million in 4Q in comparison to $12.5 million that it had reported in 2012. For the full year, the revenues from this drug pipeline went up to $58.3 million as against $27.5 million it had reported in whole of FY12.
Impressive Operational Results
Revenue from the firm licensing its drugs to third parties and other drug sellers has earned it close to $3.3 million in the fourth quarter; where as the total operating expenses went up by $31 million for the fourth quarter. Thanks to the increase in cash flow, Depomed Inc (NASDAQ:DEPO) had close to $276 million in cash and equivalent securities, where as this comparable figure in 4Q12 was $77.9 million.
Expressing his happiness at this huge turn around in the firms prospects, Depomed Inc (NASDAQ:DEPO) President and Chief Executive Officer Jim Schoeneck has been quoted to have said that, “2013 was a transformational year for Depomed. We executed a series of transactions that cement our position as a leading specialty pharmaceutical company in pain and neurology. With $276 million in purchasing power pending final determination of our 2013 income taxes, we have the financial resources to continue to build our portfolio of high growth products in pain, neurology and adjacent areas.”