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.
Earnings per share for the second quarter of 2010 was $(1.13), compared to $2.93 for the second quarter of 2009. Second quarter 2009 earnings per share included PPD's income from discontinued operations, net of income taxes, of $3.03 per share. Second quarter 2010 earnings per share included a $(0.31) per share charge for discontinued operations, net of taxes, resulting from the closing of the dermatology business unit.
"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," said Dr. June Almenoff, president and chief medical officer of Furiex. "We are focused on quickly moving our existing pipeline toward success, evidenced by the continued progression of two of our pipeline programs through Phase II."
Dr. Fred Eshelman, chairman of Furiex, added, "We have a unique opportunity as a stand-alone company to provide partners with access to a novel drug development model that will feed pharma and biotech pipelines, get products to market faster and lower R&D costs. We have the expertise and strategic vision to design and implement early development programs that advance drug candidates more efficiently."
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