Second Quarter 2012 Highlights:
Furiex Reports Second Quarter 2012 Financial Results
<0> Furiex Pharmaceuticals, Inc.Media/Analysts/Investors:Sailash Patel, 919-456-7814 </0>
Furiex Pharmaceuticals, Inc. (NASDAQ: FURX) today reported its financial and operating results for the quarter ended June 30, 2012. Furiex was spun off from Pharmaceutical Product Development, Inc. (PPD) as a separate public company effective June 14, 2010. Furiex continues the compound partnering business started by PPD in 1998.
Furiex recorded second quarter milestone revenue of $10.0 million. On May 23, 2012, Takeda Global Research & Development Centre (Europe) Ltd. received confirmation on the acceptance of the submission of a Marketing Authorization Application from the European Medicines Agency for alogliptin, a selective dipeptidyl peptidase IV inhibitor for the treatment of type 2 diabetes.
Furiex recorded second quarter royalty revenue of $3.1 million, compared to $0.9 million for the same period in the prior year. Royalty revenue included royalties related to Nesina and Liovel sales in Japan, and Priligy sales in various countries outside of the United States.
Research and development expenses were $30.8 million for the quarter ended June 30, 2012, compared to $13.2 million for the same period in the prior year. The increase of $17.5 million in research and development expenses was a result of the increase in Phase III clinical trial costs associated with the continued development of MuDelta, a $1.0 million development milestone payment to Ranbaxy Laboratories, Ltd. in connection with the completion of the Phase II clinical study for PPD-10558, and a $5.0 million regulatory milestone payment due to Janssen Pharmaceutica, N.V. related to the dosing of the fifth patient in the on-going Phase III clinical trials for MuDelta, partially offset by decreases in spending for the discontinued PPD-10558 program and completion of the Phase II clinical trial work related to MuDelta and JNJ-Q2.
Second quarter selling, general and administrative expenses were $2.8 million for 2012, compared to $2.5 million for the second quarter of 2011. The increase in selling, general and administrative expenses of $0.3 million was primarily due to increases in consulting and legal expenses.
Net loss was $20.8 million for the second quarter of 2012, compared to $14.9 million for the second quarter of 2011. The increase in net loss of $5.9 million during the second quarter of 2012, as compared to the second quarter of 2011, relates primarily to the changes in revenue and expenses previously described.
Net loss per share for the second quarter of 2012 was $2.09, compared to $1.51 for the second quarter of 2011.
"The Furiex team is committed to progressing the development of MuDelta for diarrhea predominant irritable bowel syndrome with skill and speed," said June Almenoff, M.D., Ph.D., president and chief medical officer of Furiex.
Fred Eshelman, Pharm.D., chairman of Furiex, added, "We remain excited about the potential of our development pipeline, as well as our marketed product portfolio, which continues to demonstrate increasing value for our shareholders."
Furiex will conduct a live conference call and webcast Friday, August 3, 2012, at 9:00 a.m. ET to discuss its second quarter 2012 results and financial outlook for 2012 as well as provide an overview of its business and pipeline. A Q&A session will follow. All interested parties can access the webcast through the Presentations & Events link in the Investors section of the Furiex website at . The webcast will be archived shortly after the call for on-demand replay. The conference call will be broadcast live over the Internet and will also be available using the following direct dial numbers:
Furiex Pharmaceuticals is a drug development collaboration company that uses innovative clinical development design to accelerate and increase value of drug development programs by advancing them through the drug discovery and development process in a cost-efficient manner. Our drug development programs are designed and driven by a core team with extensive drug development experience. The company collaborates with pharmaceutical and biotechnology companies and has a strong, diversified product portfolio and pipeline with multiple therapeutic candidates, including one Phase III-ready asset, two compounds in Phase III development, one of which is with a partner, and two products on the market. The company's mission is to develop innovative medicines faster and at a lower cost, thereby improving profitability and accelerating time to market while providing life-improving therapies for patients. For more information, visit .