Cadence Pharmaceuticals, Inc.
) posted an adjusted net loss of 13 cents per share in the first
quarter of 2013, narrower than the Zacks Consensus Estimate of a
loss of 14 cents. The loss reported by the company in the
year-ago quarter was 27 cents per share.
Cadence Pharma reported net revenues of $23.6 million, up 195%
year over year and easily surpassing the Zacks Consensus Estimate
of $19 million.
The sales growth was driven by a significant jump in the sales of
Ofirmev (acetaminophen). The reported sales also include the
one-time recognition of $2.6 million in deferred revenue on
previously shipped product. The company now recognizes revenue
when the product is sold.
We note that Ofirmev is Cadence Pharmaceuticals' proprietary
intravenous formulation of acetaminophen. The product is
indicated to manage pain with adjunctive opioid analgesics as
well as for the reduction of fever.
Ofirmev was approved by the US Food and Drug Administration (FDA)
in Nov 2010 and subsequently launched in the US in Jan 2011.
The exclusive rights to Ofirmev in the US and Canada were
acquired by Cadence from
) in 2006. The drug is marketed by Bristol-Myers as Perfalgan in
Europe and other parts of the world. In Feb 2013, Cadence further
extended its agreement with Bristol-Myers Squibb through Dec
As of Dec 31, 2012, Cadence Pharma had over 4,000 unique customer
accounts, up 50% from the year-ago quarter.
Research and development expenses came in at $1.4 million, down
9.8% year over year. The decrease in R&D expenses was
primarily due to lower personnel costs, which were largely offset
by costs incurred for post approval clinical trial for Ofirmev in
Selling, general and administrative costs were $21.6 million,
down 8.0% from the year-ago quarter.
Cadence Pharma increased its guidance to account for the impact
of the deferred revenue recognized in the first quarter of 2013.
Net product revenues from sales of Ofirmev are projected in the
range of $97 million to $103 million in 2013, up from the earlier
estimated range of $94 million - $100 million. The Zacks
Consensus Estimate of $98 million was well within the guidance.
Cadence Pharma currently holds a Zacks Rank #3 (Hold). Other
pharma stocks, which are well placed, include
Onyx Pharmaceuticals, Inc.
). Both stocks carry a Zacks Rank #2 (Buy).
BRISTOL-MYERS (BMY): Free Stock Analysis
CADENCE PHARMA (CADX): Free Stock Analysis
FURIEX PHARMACT (FURX): Free Stock Analysis
ONYX PHARMA INC (ONXX): Free Stock Analysis
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