Cornerstone Therapeutics first-quarter total net revenue increases 19% to $36.4 million

Cornerstone Therapeutics Inc. (Nasdaq: CRTX) today reported financial results for the first quarter ended March 31, 2010.  

Total net revenue was a record $36.4 million for the first quarter ended March 31, 2010, representing a 19% increase over the $30.7 million reported for the first quarter last year. Net product sales from strategic products were 48% of total net revenues, or $17.5 million, for the first quarter of 2010, up from 29% of total net revenues for the first quarter of 2009. Net product sales for Curosurf and Factive were $7.1 million and $2.1 million for the first quarter ended March 31, 2010, respectively. Curosurf and Factive product rights were acquired at the end of the third quarter of 2009. Net product sales from our legacy products were $18.8 million for the first quarter of 2010 compared to $21.1 million in the first quarter of 2009.

"We are very pleased with the start to 2010," said Craig A. Collard, Cornerstone's President and Chief Executive Officer.  "We continue to execute on our goal of transitioning the business to our strategic proprietary products, which now account for nearly half of our revenues.  We are gaining momentum with our Curosurf and Factive products and we believe that building on this base will provide us with long-term, sustainable and growing revenues, profits and cash flows. We have also accumulated significant cash on hand and we are actively seeking further specialty products to complement our portfolio."

Total cost of product sales, exclusive of amortization of product rights, was $6.8 million for the first quarter of 2010. Gross margin for the three months ended March 31, 2010 decreased eight percentage points to 81% compared to the three months ended March 31, 2009 due to a relatively higher portion of our net product sales in the first quarter of 2010 being derived from products that have lower gross margins, specifically Curosurf. Selling, general and administrative expenses increased $3.2 million, or 35%, in the first quarter ended March 31, 2010 compared to the first quarter ended March 31, 2009. Royalty expenses decreased $1.7 million, or 27%, during the first quarter ended March 31, 2010 compared to the first quarter ended March 31, 2009. GAAP income from operations was $8.1 million for the first quarter of 2010, or $11.9 million on a non-GAAP basis.

As of March 31, 2010, the Company had $27.5 million in cash and cash equivalents, an increase of $8.7 million compared to December 31, 2009.

2010 Outlook

Cornerstone is reiterating the 2010 revenue guidance it provided in January of this year of net revenues in excess of $112 million. This estimate assumes that revenue contribution from strategic products will increase from less than 40% of net revenues in 2009 to in excess of 75% of net revenues in 2010. In addition, the Company continues to anticipate achieving income from operations on a GAAP basis of $1.0 million and on a non-GAAP basis of $16.4 million.  

SOURCE Cornerstone Therapeutics Inc.