Furiex Pharmaceuticals, Inc. (Nasdaq: FURX) today reported its financial and operating results for the quarter ended June 30, 2010. Furiex was spun off from PPD, Inc. effective June 14, 2010. The financial information included in the financial and operating results does not reflect the consolidated results of operations or cash flows of the company had it been a separate, stand-alone entity during the periods presented as the information through June 14, 2010, was derived from PPD's discovery sciences segment.
“We are pleased with the successful spin-off of Furiex as an independent company, bolstered by the favorable news that one of our partnered products, Nesina, launched in Japan”
Furiex recorded second quarter revenues of $8.1 million, compared to $0.2 million for the same period in the prior year. Revenue included a $7.5 million milestone payment made upon regulatory and pricing approval of Nesina in Japan, and $0.5 million in sales royalties related to Priligy™ and Nesina.
Research and development expenses were $13.4 million for the quarter, compared to $0.6 million for the same period in the prior year. The increase was primarily the result of increased development costs associated with the two therapeutic compounds, MuDelta and Fluoroquinolone (JNJ-Q2), in-licensed from Janssen-Cilag in November 2009.
Second quarter selling, general and administration expenses were $2.8 million for the quarter compared to $0.5 million for the second quarter of 2009. The increase was primarily the result of $1.3 million in spin-off related costs and additional costs associated with being a stand-alone company.
Operating loss was $8.1 million for the second quarter, compared to a loss of $1.0 million for the second quarter of 2009. Operating loss for the second quarter of 2010 was higher than the same period last year due primarily to R&D expenditures to support pipeline compounds and increased SG&A expense.