Optimer Pharma
's (
OPTR
) fourth quarter 2012 net loss (excluding special items) of 63
cents per share was wider than the Zacks Consensus Estimate of a
loss of 38 cents. The company had reported earnings of 28 cents
per share in the year-ago quarter. Optimer suffered a loss during
the fourth quarter primarily due to lower revenues.
Revenues in the fourth quarter of 2012 came in at $19.5
million, down 69.8% from the year-ago quarter. Revenues, however,
surpassed the Zacks Consensus Estimate of $18 million.
We note that the massive year-over-year decrease in revenues
was primarily attributable to a decrease in contract revenues,
which was partially offset by higher Dificid sales. The company
had recorded $122.7 million of contract revenues under its
collaboration agreement with Astellas Pharmaceuticals Europe Ltd.
in the year-ago quarter.
Optimer's 2012 net loss (excluding special items) of $1.45 per
share was wider than the Zacks Consensus Estimate of a loss of
$1.17. In 2011, Optimer had recorded earnings of 17 cents per
share. For the full year 2012, the company's total revenues
declined 30% to $101.5 million.
Fourth Quarter Details
Revenues in the reported quarter included Dificid sales in the
US and Canada along with contract revenue of $2.7 million under
the company's collaboration agreement with Astellas
Pharmaceuticals Europe Ltd.,
Astellas Pharma, Inc.
(
ALPMY
) and Specialized Therapeutics Australia, Pty. Ltd.
We remind investors that Dificid, Optimer's sole marketed
product, was launched in the US in Jul 2011 for treating patients
suffering from clostridium difficile-associated diarrhea (CDAD)
-- the most common form of nosocomial, or hospital acquired,
diarrhea. Dificid was launched in Canada in Jun 2012. Net sales
of the drug shot up 53.5% (up 5% sequentially) to $16.8 million
in the fourth quarter of 2012, primarily due to higher
demand.
Dificid was approved in the EU under the trade name, Dificlir,
in Dec 2011.
We note that Optimer has an exclusive two-year agreement
(through Jul 2013) with
Cubist Pharmaceuticals
(
CBST
) to co-promote Dificid in the US for the treatment of CDAD.
Co-promotion expenses amounted to $3.8 million during the fourth
quarter of 2012.
Optimer is planning to expand Dificid's label. The company
initiated a phase IIIb study evaluating the prophylactic use of
Dificid in patients undergoing bone marrow transplantation (BMT)
or hematopoietic stem cell transplant (HSCT). Optimer also plans
to initiate another study on Dificid evaluating the treatment of
patients suffering from multiple recurrence of CDAD by the end of
2013.
Selling, general and administrative (SG&A) expenses during
the reported quarter were up 4.0% to $31.2 million. However,
research & development (R&D) expenses were down 15.3% to
$11.9 million during the period.
While Optimer did not provide any expense outlook during its
conference call, it stated that it expects its cash flow to be
positive by 2014.
Our Take
While we are pleased with the company's effort to expand
Dificid's market globally, we remain concerned about Optimer's
dependence on a single product for growth.
Optimer currently carries a Zacks Rank #3 (Hold). Meanwhile,
other biopharma stocks such as
Cytokinetics Inc.
(
CYTK
) carry a Zacks Rank #1 (Strong Buy).
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