Cadence Pharmaceuticals, Inc.
) remained unchanged after the release of third quarter earnings
but declined 3.83% % in the next trading session. Overall, shares
lost 3.3% since the company reported third quarter
The company posted a net loss of 8 cents per share in the
third quarter of 2013, in line with the Zacks Consensus Estimate.
The loss reported in the year-ago quarter was 19 cents per
Cadence Pharma reported net revenues of $28.9 million, up
108.3% year over year, and surpassing the Zacks Consensus
Estimate of $27.0 million.
Quarter in Detail
Sales growth was driven by a significant jump in the sales of
vials of Ofirmev which grew 82.0% year over year to 2.5 million.
Sales benefited from the increasing demand for non-narcotic
analgesics from the hospital market.
We note that Ofirmev is Cadence Pharma's proprietary
intravenous formulation of acetaminophen. It is indicated to
manage pain with adjunctive opioid analgesics as well as for the
reduction of fever.
The exclusive rights to Ofirmev in the U.S. and Canada were
acquired by Cadence Pharma from Bristol-Myers Squibb (BMY) in
2006. The drug is marketed by Bristol-Myers as Perfalgan in
Europe and other parts of the world.
As of Sep 30, 2013, Cadence Pharma had over 4,600 unique
customer accounts, up 33% from the year-ago quarter.
Gross margin came in at 66%, up from 56% in the year-ago
quarter driven by price increases and lower freight costs.
Operating expenses grew 10% to $24.8 million due to higher
Outlook Upped Again
Cadence Pharma upped its guidance again. Based on strong sales
of Ofirmev in the first nine months of 2013, Cadence Pharma
expects net revenue for Ofirmev in the range of $105.0 - $107.0
million in 2013, up from the earlier guidance range of $103.0
million - $105.0 million. The Zacks Consensus Estimate stands at
We remind investors that the U.S. Food and Drug Administration
(FDA) asked Cadence Pharma to add a "black box" warning to the
label of Ofirmev injection.
The "black box" warning will include information regarding
doses and the risk of liver injury associated with doses that
exceed the recommended daily limit. However, the company does not
expect the warning to impact sales.
We are encouraged by the momentum in Ofirmev sales and the
consecutive increase in guidance .
Cadence Pharma currently holds a Zacks Rank #3 (Hold). Other
stocks that currently look attractive include
NPS Pharmaceuticals, Inc
). All three carry a Zacks Rank #2 (Buy).
CADENCE PHARMA (CADX): Free Stock Analysis
FOREST LABS A (FRX): Free Stock Analysis
NPS PHARMA INC (NPSP): Free Stock Analysis
SALIX PHARM-LTD (SLXP): Free Stock Analysis
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