Cadence Pharmaceuticals, Inc.
) remained unchanged in the corresponding trading sessions
following the release of fourth quarter 2013 earnings.
The company posted a net loss of 5 cents per share in the
fourth quarter of 2013, wider than the Zacks Consensus Estimate
of 3 cents. The loss reported in the year-ago quarter was 25
cents per share.
Cadence Pharma reported net revenues of $35.3 million, up
105.6% year over year, and surpassing the Zacks Consensus
Estimate of $33.0 million.
Quarter in Detail
Product revenues of $33.3 million were up 95% from the
year-ago quarter. The increase in Ofirmev sales is fueled by
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.
Gross margin came in at 65%, up from 58% in the year-ago
Revenues in 2013 came in at $112.5 million, up from $50.1
million reported in 2012 and surpassing the Zacks Consensus
Estimate of $109.0 million. The company posted a net loss of 28
cents per share in 2013, in line with the Zacks Consensus
Estimate. The loss reported in the year-ago quarter was 95 cents
In Jan 2014, Cadence stated that it expects net product
revenue from Ofirmev sales in 2014 to come between $173.0 million
and $177.0 million.
We remind investors that Dublin-based specialty pharmaceutical
) is all set to Cadence Pharma. Mallinckrodt entered into a
definitive agreement with Cadence Pharma in Feb 2014 whereby the
former will commence a tender offer to acquire all outstanding
shares of the latter for $14.00 per share in cash or
approximately $1.3 billion.
Both companies expect to close the transaction later in Mar
2014. Mallinckrodt expects the acquisition to be immediately
accretive to its bottom line in fiscal 2014. The accretion to the
bottom line in fiscal 2015 is expected to be more
Cadence Pharma currently holds a Zacks Rank #3 (Hold) while
Mallinckrodt carries a Zacks Rank #1 (Strong Buy). Right now,
) also looks attractive with a Zacks Rank #1.
BRISTOL-MYERS (BMY): Free Stock Analysis
CADENCE PHARMA (CADX): Free Stock Analysis
MALLINCKRODT PL (MNK): Free Stock Analysis
SHIRE PLC-ADR (SHPG): Free Stock Analysis
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