pSivida reports $8.8 million consolidated net income for 2010 fiscal year

Sep 23 2010

pSivida Corp. (NASDAQ: PSDV)(ASX: PVA), a leader in developing sustained release, drug delivery products for treatment of back of the eye diseases, including the product candidate Iluvien™ for the treatment of Diabetic Macular Edema, today announced financial results for its fourth quarter and fiscal year ended June 30, 2010.

“Beyond Iluvien, product development will continue to be our primary focus, as we shift our emphasis to the development of products using new generations of our technology systems”

The Company reported consolidated net income of $8.8 million for the fiscal year, on revenues of $23.1 million. The Company ended the year with cash, cash equivalents and marketable securities of $17.6 million, up $10.7 million over the prior year.

"We are very pleased with our financial results for the year and the significant improvement in our financial condition. We are also pleased that the FDA has granted Priority Review status for the Iluvien NDA filed in June 2010. As a result, a response from the FDA could be received by the end of calendar year 2010," said Dr. Paul Ashton, CEO of pSivida. "If approved, we are entitled to a $25.0 million milestone payment from our licensee Alimera Sciences, Inc.," added Dr. Ashton. Alimera also submitted registration filings in various European countries in July 2010. pSivida will also be entitled to receive 20% of defined profits on sales of Iluvien by Alimera, which has indicated that first sales could be as early as the first calendar quarter of 2011. "Beyond Iluvien, product development will continue to be our primary focus, as we shift our emphasis to the development of products using new generations of our technology systems," noted Dr. Ashton.

Financial Results

For the fiscal year ended June 30, 2010, the Company reported consolidated net income of $8.8 million, or $0.46 per diluted share, compared to a consolidated net loss of $2.5 million, or $0.14 per share, for the prior fiscal year. Revenues for the year ended June 30, 2010 were $23.1 million compared to revenues of $12.2 million a year earlier. The Company reported consolidated net income of $13.1 million, or $0.68 per diluted share, for the quarter ended June 30, 2010, compared to a consolidated net loss of $534,000, or $0.03 per share, for the prior year's fourth quarter. Revenues totaled $15.7 million for the three months ended June 30, 2010, compared to revenues of $3.2 million for the three months ended June 30, 2009.

During the fourth quarter of fiscal year 2010, Alimera paid in full a $15.0 million conditional note. The proceeds of the note payment in fiscal year 2010 and amortization of Alimera deferred revenue in both fiscal year 2010 and 2009 accounted for substantially all revenues for the fiscal years and the fourth quarters.

Cash, cash equivalents and marketable securities totaled approximately $17.6 million at June 30, 2010, an increase of approximately $10.7 million compared to $6.9 million at June 30, 2009.