Depomed Inc (NASDAQ:DEPO) announced financial report and highlighted operational accomplishments for the quarter closed September 30, 2016. Jim Schoeneck, the CEO and President, said that although third quarter revenues surged by 5% over the comparable quarter, they failed to fulfill expectations, as numerous factors, including a divide between wholesaler shipments and prescription demand, impacted net sales of the Gralise and NUCYNTA franchise.
The highlights
Prescriptions for NUCYNTA ER surged 4% over 2Q2016, while shipments to wholesalers dropped 1%. Prescriptions for Gralise and NUCYNTA were equal to the previous quarter, however, shipments declined 12% and 6%, respectively. In addition, the company made adjustments to reserve accounts, including PBM rebate submissions and managed care from prior quarters, which influenced product net sales.
Schoeneck added that for the rest of FY2016 and beyond, they are fully committed to focusing on the successful relaunch of Nucynta franchise and establishing prescription demand for products. For 3Q2016, NUCYNTA ER achieved all time high total prescriptions and monthly market share, with YoY prescription growth of nearly 20%. Moreover, the rest of portfolio recorded revenues of $45 million, a jump of 13% YoY.
Depomed’s NUCYNTA ANDA patent lawsuit win marked a remarkable milestone for the firm, allowing company over 9 years to continue to expand the NUCYNTA franchise, with uniqueness built until December 2025. The revenue in 3Q2016 came at $111 million, against $105 million for 3Q2015, a jump of 5%. Quarterly net loss came at ($12.9) million while non-GAAP adjusted earnings amounted to $20.9 million. Non-GAAP adjusted EBITDA came at $35.4 million in the reported quarter.
Favorable District Court verdict in the firm’s patent lawsuit against all three filers of ANDAs of the NUCYNTA franchise with projected market exclusivity until 2025. Settlement deal made with Starboard Value LP comprising the inclusion of 3 independent directors, Robert G. Savage, James L. Tyree and James P. Fogarty, to company’s Board of Directors
For NUCYNTA franchise, 3Q2016 net sales came at $65 million. Since acquisition, its net sales have totaled to $396 million. Gralise® 3Q2016 net sales amounted to $21 million.
