Jul 29 2010
Adolor Corporation (NasdaqGM: ADLR) today reported a net loss of $8.3 million, or $(0.18) per basic and diluted share, for the three months ended June 30, 2010, compared to a net loss of $16.5 million, or $(0.36) per basic and diluted share, for the three months ended June 30, 2009. For the six months ended June 30, 2010, Adolor reported a net loss of $17.9 million, or $(0.39) per basic and diluted share, compared to a net loss of $29.7 million, or $(0.64) per basic and diluted share, for the six months ended June 30, 2009.
“The second quarter saw continued progress with ENTEREG and the advancement of our OBD compounds in early clinical evaluation”
As previously announced, net product sales of ENTEREG® (alvimopan) were $6.3 million and $2.4 million for the three months ended June 30, 2010 and 2009, respectively, and $11.5 million and $3.8 million for the six months ended June 30, 2010 and 2009, respectively. The increase in net product sales during the three and six months ended June 30, 2010 as compared to the prior year periods resulted from an increase in the number of hospitals ordering ENTEREG and increased penetration within existing hospital customers. Net product sales for the three and six months ended June 30, 2010 were recognized at the time of shipment as compared to net product sales for the three and six months ended June 30, 2010, which were recognized on a reorder basis under the Company's previous revenue recognition policy. Net shipments of ENTEREG for the three and six months ended June 30, 2009 were $2.9 million and $4.9 million, respectively.
Cash, cash equivalents and short-term investments at June 30, 2010 were $62.3 million, which the Company believes will fund currently anticipated operating activities through 2012.
"The second quarter saw continued progress with ENTEREG and the advancement of our OBD compounds in early clinical evaluation," said Michael R. Dougherty, President and Chief Executive Officer. "Following our recently announced restructuring, Adolor enters the second half of 2010 well positioned with a growing commercial product, a promising clinical development program and a reduced burn rate."
Operating Highlights
Contract revenues were $4.7 million and $6.7 million in the three months ended June 30, 2010 and 2009, respectively, and $10.1 million and $11.9 million in the six months ended June 30, 2010 and 2009, respectively. Contract revenues decreased for the three and six months ended June 30, 2010 compared to the same periods in 2009 due primarily to lower Glaxo contract revenues as a result of reduced reimbursements under the collaboration agreement, offset partially by increased cost reimbursement under the Pfizer delta agonist collaboration resulting from costs related to the osteoarthritis and post-herpetic neuralgia clinical trials incurred during the three and six months ended June 30, 2010.
Research and development expenses were $9.6 million and $12.0 million for the three months ended June 30, 2010 and 2009, respectively, and $20.1 million and $24.3 million for the six months ended June 30, 2010 and 2009, respectively. These decreases were driven primarily by reductions in expenses associated with the Company's restructuring in June 2009, offset partially by higher costs of clinical studies incurred during the three and six months ended June 30, 2010 in the Company's delta and OBD programs.
The Company's selling, general and administrative expenses were $9.0 million and $9.5 million for the three months ended June 30, 2010 and 2009, respectively. The decrease in the three months ended June 30, 2010 compared to the same period in 2009 was primarily driven by lower general and administrative expenses as a result of the June 2009 restructuring and lower marketing expenses, offset partially by higher ENTEREG profit-sharing expenses under the collaboration agreement with Glaxo. For the six months ended June 30, 2010 and 2009, the Company's selling, general and administrative expenses were $18.2 million and $17.4 million, respectively. The increase in the six months ended June 30, 2010 compared to the same period in 2009 was primarily driven by higher ENTEREG profit-sharing expenses under the collaboration agreement with Glaxo and higher marketing expenses, offset partially by lower general and administrative expenses period-over-period as a result of the restructuring.
For the three and six months ended June 30, 2009, the Company recorded a $4.2 million restructuring charge, consisting of $2.2 million of employee severance and benefit related costs and a $2.0 million non-cash impairment charge primarily related to leasehold improvements and laboratory equipment used for activities that were eliminated pursuant to its restructuring. There were no restructuring charges for the three or six months ended June 30, 2010; however, the Company expects to record a restructuring charge of approximately $2.0 million for the three months ended September 30, 2010 as a result of the restructuring announced in July 2010.