VIVUS, Inc. (Nasdaq: VVUS), a biopharmaceutical company dedicated to the development and commercialization of novel therapeutic products, today reported its financial results for the second quarter ended June 30, 2009.
Second Quarter Results
Net loss for the second quarter of 2009 was $13.2 million, or $0.19 per share, as compared to net income of $3.6 million, or $0.06 per share, for the second quarter of 2008. The net loss in the second quarter of 2009 as compared to the net income in the second quarter of 2008 is primarily due to a decrease in license and other revenue as a result of the last portion of K-V Pharmaceutical ("K-V") deferred license revenue being recognized in the second quarter of 2009, and increased operating expenses. The increase in operating expenses, as compared to the second quarter of 2008, was primarily attributable to spending related to our phase 3 clinical trials of avanafil, our investigational product candidate for the treatment of erectile dysfunction. Spending on Qnexa, our investigational product for obesity, was consistent quarter over quarter.
Total revenue for the second quarter of 2009 was $14.7 million, as compared to $25.3 million for the second quarter of 2008. Product revenues from the sale of MUSE in the second quarter of 2009 were $4.1 million, as compared to $4.2 million in the second quarter of 2008. License and other revenue of $10.6 million and $21 million in the second quarters of 2009 and 2008, respectively, primarily relates to the sale in 2007 of Evamist to K-V. All of the deferred revenue related to the sale of Evamist has now been recognized. Since we had received the $150 million in cash from the sale of Evamist and we had no related contingencies, the recognition of license revenue and the corresponding reduction of deferred revenue related to the Evamist sale had no impact on our cash flows from operations in 2009 or 2008.
Six Month Results
Net loss for the six months ended June 30, 2009 was $20 million, or $0.29 per share, compared to a net loss of $3.5 million or $0.06 per share for the same period in 2008. The increase in the net loss in the six months ended June 30, 2009 as compared to the same period in 2008 is primarily due to the decrease in K-V deferred license revenue, an increase in operating expenses primarily due to our phase 3 clinical trials of avanafil and increased legal expenses and costs related to the Acrux arbitration and a decrease in interest income. With the completion of the Acrux arbitration, legal expenses are expected to decrease in the second half of 2009. For the six-month period ending June 30, 2009, total revenues were $37 million, compared to $48 million for the same period in 2008. The decrease in total revenues is primarily due to the reduction in K-V deferred license revenue in the six months ended June 30, 2009.
Cash, Cash Equivalents and Available for Sale Securities