Depomed attributes 56% increase in first-quarter revenue to $5.8M increase in Glumetza product sales

Apr 30 2010

Depomed, Inc. (NASDAQ:DEPO) today reported financial results for the first quarter ended March 31, 2010.

Revenue for the three months ended March 31, 2010 was $15.4 million compared to $9.9 million for the three months ended March 31, 2009. The 56% increase in revenue year-over-year was primarily attributable to a $5.8 million increase in Glumetza product sales.

Operating expenses for the three months ended March 31, 2010 were $17.6 million compared to $19.0 million for the three months ended March 31, 2009. The decrease in operating expenses was primarily attributable to $4.8 million decrease in research and development expenses and a $0.9 million decrease in other selling, general and administrative expenses, partially offset by a $4.3 million increase in promotion fee expense related to the company's promotion agreement for Glumetza^® (extended release metformin hydrochloride tablets) with Santarus, Inc. due to the increase in product sales.

Stock-based compensation expense was $0.5 million for the three months ended March 31, 2010 as compared to $0.7 million for the three months ended March 31, 2009.

Net loss for the three months ended March 31, 2010 was $3.8 million, or $0.07 per share, compared to net loss of $10.2 million, or $0.20 per share, for the three months ended March 31, 2009.

Cash, cash equivalents and marketable securities were $71.5 million as of March 31, 2010 compared to $81.8 million as of December 31, 2009.

"In the first quarter, we made significant advances in our development programs in DM-1796 for postherpetic neuralgia and Serada^TM for menopausal hot flashes. Abbott Products Inc. filed an NDA for DM-1796 in March, and we look forward to the FDA's acceptance of the NDA for filing later this quarter. We received encouraging guidance on Serada's development program in the quarter, and expect to initiate one additional Phase 3 clinical trial very soon," noted Carl A. Pelzel, president and chief executive officer of Depomed.

First Quarter 2010 Highlights

• Commented on FDA guidance and plans for one additional Phase 3 clinical trial evaluating non-hormonal therapy for menopausal hot flashes (January 2010).
• Announced receipt of a $500,000 milestone payment from Covidien for the development of a second formulation (January 2010).
• Announced allowance of a U.S. patent covering gastric retentive Gabapentin dosage forms (February 2010).
• Announced submission of a New Drug Application for DM-1796 postherpetic neuralgia (March 2010).

SOURCE Depomed, Inc.