Antares Pharma, Inc. (NYSE Amex: AIS) today reported financial and operating results for the second quarter ended June 30, 2010.
Quarter and Recent Highlights
- Second quarter 2010 total revenue increased 78% to $3.1 million from $1.7 million in the same quarter in 2009. For the six months ended June 30, 2010, the Company's total revenue increased 57% to $6.4 million from $4.1 million in the first six months of 2009.
- Announced positive results from its Phase 3 study of Anturol® Gel in patients with overactive bladder (OAB). The study met its primary endpoint of a statistically significant reduction in urinary incontinence episodes for both doses studied.
- Received a milestone payment from Ferring International Center S.A. related to achieving a development-based milestone under a license and asset purchase agreement regarding certain intellectual property relating to transdermal gel delivery technology.
- Continued to progress other key device development programs including the epinephrine auto injector and Vibex MTX™ (methotrexate).
Paul K. Wotton, Ph.D., President and Chief Executive Officer, stated, "We are pleased with our strong accomplishments in 2010, highlighted by the recent positive results announced for Anturol® in its Phase 3 study for the treatment of overactive bladder. Based on increasing sales of Tev-Tropin®, which utilizes our Tjet® injector system, continuing efforts with Teva regarding the commercial development of additional products, and our anticipated filing of a New Drug Application for Anturol® with the U.S. Food and Administration by the end of 2010, we expect our strong momentum to continue through the remainder of the year and well beyond."
Second Quarter and First Half Results
Total revenue was $3.1 million and $1.7 million for the three months ended June 30, 2010 and the corresponding quarter in 2009, respectively, an increase of 78%. For the six months ended June 30, 2010, the Company's total revenue increased to $6.4 million, or 57%, from $4.1 million in the first six months of 2009. Product sales were $1.2 million in the second quarter of 2010 compared to $1.2 million in 2009. For the six months ended June 30, 2010, product sales increased 24% to $2.5 million compared to $2.0 million in the prior year. The increase in product sales in the first half was primarily due to increased sales to Ferring. Product sales to Teva in the first half of 2010 nearly matched product sales in the first half of 2009 which included initial stocking quantities in anticipation of the launch of the Tjet® needle-free injector system with their brand of hGH Tev-Tropin®. Licensing and development revenue was $1.5 million and $0.4 million in the 2010 and 2009 second quarter periods, respectively, and was $3.2 million and $1.9 million in the six month periods ended June 30, 2010 and 2009, respectively. The increases in the quarter and six month periods were primarily due to auto injector development work for an epinephrine product under a License, Development and Supply agreement with Teva, a milestone payment received from Teva triggered by achievement of a certain sales level of their hGH Tev-Tropin® and revenue recognized under an Exclusive License Agreement with Ferring. Revenue from royalties was $0.4 million and $0.1 million in the 2010 and 2009 second quarter periods, respectively, and was $0.8 million and $0.2 million in the 2010 and 2009 six month periods, respectively. The increases were due to royalties received from Teva in connection with sales of their hGH Tev-Tropin®.
Total gross profit increased in the second quarter of 2010 to $2.1 million compared to $1.0 million in 2009, and increased to $4.1 million for the first half of 2010 compared to $2.3 million for the first half of 2009. The increases in the quarter and first half periods were mainly due to a milestone payment and royalties received from Teva related to sales of their hGH Tev-Tropin® and revenue recognized under an Exclusive License Agreement with Ferring. The increase in the first half was also due to an increase in product sales.
Total operating expenses were approximately $3.6 million and $3.1 million for the three months ended June 30, 2010 and 2009, respectively, and were $7.2 million and $7.0 million for the six months ended June 30, 2010 and 2009, respectively. The increases in operating expenses were primarily a result of increases in spending for product development projects. These increases were partially offset by cost savings from the sale of a substantial portion of the operations in Switzerland to Ferring International Center S.A. at the end of 2009.
Net loss per share decreased for the second quarter to $0.02 in 2010 from $0.03 in 2009, and decreased for the six month period to $0.04 in 2010 from $0.07 in 2009, primarily due to an increase in revenue and gross profit resulting in a reduced net loss, along with an increase in weighted average common shares outstanding.
At June 30, 2010, Antares had approximately $11.4 million in cash, compared to approximately $13.6 million at December 31, 2009. The net decrease in cash and cash equivalents was approximately $2.1 million in the first half of 2010, compared to a net decrease of $6.1 million in the first half of 2009. Cash decreased by only $0.1 million in the second quarter of 2010 from the first quarter of 2010 due to receipt of milestone payments and exercises of stock options and warrants.
"Our balance sheet remains strong, as we continued to invest substantially in our core programs, while simultaneously increasing our revenues and reducing cash burn. At this time, we expect that our cash position is sufficient to last for more than 12 months without taking into effect any potential business development deal around any of our technologies or development programs, including Anturol®," said Robert Apple, EVP, Chief Financial Officer and President of the Parenteral Products Division.
SOURCE Antares Pharma