Cadence Pharmaceuticals, Inc
) posted a net loss of 14 cents per share in the second quarter
of 2013, wider than the Zacks Consensus Estimate of a loss of 11
cents. The loss reported in the year-ago quarter was 25 cents per
Cadence Pharma reported net revenues of $24.7 million, up 123%
year over year, and marginally above the Zacks Consensus Estimate
of $24.0 million.
Quarter In Detail
Excluding the one-time recognition of deferred revenues, net
product revenue increased 18% sequentially.
Sales growth was driven by a significant jump in the sales of
vials of Ofirmev which more than doubled year over year to 2.2
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
) in 2006. The drug is marketed by Bristol-Myers as Perfalgan in
Europe and other parts of the world.
As of Jun 30, 2013, Cadence Pharma had over 4,350 unique
customer accounts, up 37% from the year-ago quarter.
Gross margin came in at 66%, up from 48% in the year-ago
quarter driven by price increases.
Operating expenses grew 7% to $27.2 million due to higher
legal fees, which was partially offset by lower sales and
Based on strong sales of Ofirmev in the first half of 2013,
Cadence Pharma expects net revenue for Ofirmev in the range of
$103.0 - $105.0 million in 2013, up from the earlier guidance
range of $97.0 million - $103.0 million. The Zacks Consensus
Estimate stands at $104.0 million.
Although earnings missed our estimates, we are encouraged by
the momentum in Ofirmev sales and the subsequent increase in
Cadence Pharma currently holds a Zacks Rank #2 (Buy). Other
stocks which look attractive include
). Both stocks carry a Zacks Rank #2 (Buy).
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