Cipher Pharmaceuticals Inc. (TSX: DND) today announced its financial and operational results for the three and nine months ended September 30, 2009.
Q3 2009 Summary --------------- - Total revenue increased 59% to $1.1 million, compared with $0.7 million in Q3 2008. - Continued steady growth of Lipofen(R) prescriptions. - Commenced CIP-ISOTRETINOIN Phase III safety trial. - A strong balance sheet at quarter end with cash of $9.3 million and no debt. - Subsequent to quarter end, strengthened Board of Directors with the addition of Dr. William Claypool.
"The third quarter saw us deliver a solid year-over-year increase in revenue from Lipofen(R) and enroll our first patient in the phase III safety trial for CIP-ISOTRETINOIN, reaching an important clinical milestone for this product after significant trial planning and preparation," said Larry Andrews, President and CEO of Cipher. "Patient enrollment in the CIP-ISOTRETINOIN trial is progressing well and we are also encouraged by Kowa's increased sales and promotion efforts for Lipofen(R), which should drive continued prescription growth for the product."
Financial Review ----------------
Total revenue in Q3 2009 was $1.1 million, an increase of 59% compared with $0.7 million in Q3 2008, driven mainly by the continued market penetration of Lipofen(R) as Kowa expands its sales force.
Gross Research and Development ("R&D") expenditures for Q3 2009 were $0.5 million, compared with ($0.2) million in Q3 2008. The reported R&D amount of $0.2 million for Q3 2009 is net of reimbursements of $0.3 million from Ranbaxy related to the CIP-ISOTRETINOIN clinical study. Operating, General and Administrative ("OG&A") expenses for Q3 2009 were $1.2 million, compared with $0.9 million in Q3 2008. The year-over-year change reflects the increased level of activity related to pursuing in-licensing and out-licensing opportunities. The loss for the three months ended September 30, 2009 was $0.5 million ($0.02 per basic and diluted share), compared with net income of $0.2 million ($0.01 per basic and diluted share) in Q3 2008. A number of one-time items, including the recovery of $0.4 million in tax credits, contributed to net income in Q3 2008.
For the year-to-date period, revenue was $2.3 million, compared with $1.1 million in the same period last year. The loss for the first nine months of 2009 was $2.1 million ($0.09 per basic and diluted share), compared with $2.7 million ($0.11 per basic and diluted share) in the first nine months of 2008.
The Company's financial position remained solid at quarter end. As at September 30, 2009, Cipher had cash of $9.3 million, compared with $9.9 million as at December 31, 2008 and $9.6 million at the end of Q2 2009.
Product Update --------------
During Q3 2009, Lipofen(R) monthly prescriptions showed steady growth, and Cipher expects this trend to continue as Kowa increases penetration of the primary care physicians in its targeted regions and expands its sales force. Since the Kowa acquisition, the number of sales reps has increased from approximately 65 to 180 currently, with further increases planned in 2010.