Two Additional Collaborations Signed During the Quarter; A0001 Completes Phase I
DANBURY, Conn., Aug. 7, 2009 (GLOBE NEWSWIRE) -- Penwest Pharmaceuticals Co. (Nasdaq:PPCO) today reported its financial results for the second quarter of 2009. Compared with the second quarter of 2008, revenues increased sharply, operating expenses decreased by 11% and the Company's net loss was reduced significantly to $2.1 million, or $0.07 per share.
Operating and Financial Highlights
* Revenues increased to $5.3 million, which includes $4.4 million in
royalties recognized from Endo Pharmaceuticals Inc. (Endo) on its
net sales of Opana(r) ER, compared with revenues of $1.3 million
in the second quarter of 2008.
* Penwest and Endo granted Valeant Pharmaceuticals an exclusive
license to market Opana ER in Canada, Australia and New Zealand.
This agreement is the first licensing collaboration signed for
Opana ER outside the United States.
* The Company entered into a new drug delivery collaboration with
Otsuka Pharmaceutical Co., Ltd. (Otsuka) utilizing Penwest's TIMERx
drug delivery technology. This is the Company's third such
agreement with Otsuka.
* Penwest completed the Phase Ib clinical trial for A0001, a compound
Penwest is developing for the treatment of mitochondrial respiratory
chain diseases. The Company intends to advance this compound into
two Phase IIa clinical trials in the fourth quarter of this year.
Jennifer L. Good, President and Chief Executive Officer, said, "In the quarter, we continued to make good progress in executing on our focused business goals for 2009. We remain active on the business development front, having completed a licensing deal for Opana ER outside the United States as well as having entered into another drug delivery collaboration. We are also pleased to have advanced the A0001 program with the completion of the Phase Ib trial, and we are preparing to commence two Phase IIa trials in patients during the fourth quarter of this year.
"Our focus for the remainder of the year will be to continue the momentum in executing on our deliverables by commencing the two Phase IIa studies for A0001, completing an additional drug delivery technology deal, and continuing our licensing efforts in partnership with Endo for Opana ER in additional ex-U.S. territories."
Second Quarter 2009 Financial Results
Total revenues for the second quarter of 2009 were $5.3 million, compared with $1.3 million for the second quarter of 2008. The increase was primarily due to $4.4 million of revenue recognized in the second quarter of 2009 for royalties from Endo on its sales of Opana ER.
The net loss for the second quarter of 2009 was reduced to $2.1 million, or $0.07 per share, compared with a net loss of $6.9 million, or $0.22 per share, for the second quarter of 2008.
Selling, general and administrative (SG&A) expenses were $3.3 million for the second quarter of 2009, compared with $3.1 million for the second quarter of 2008. The increase of $212,000 in the second quarter of 2009 was attributable to $1.1 million of costs incurred during the quarter in connection with this year's proxy contest and the related litigation. Partially offsetting these increased costs were lower salary and benefits expenses as a result of staff reductions implemented in January 2009, and lower share-based compensation expenses.
Research and product development (R&D) expenses were $3.4 million for the second quarter of 2009, compared with $4.5 million for the second quarter of 2008. The decrease of $1.1 million reflects that in the second quarter of 2009, Penwest made no contractual payments to Edison Pharmaceuticals, Inc. (Edison) under the Company's collaboration agreement with Edison. In addition, in the second quarter of 2009, the Company incurred no expenses related to the development of nalbuphine ER and had lower compensation expenses, primarily due to staff reductions implemented in January 2009, and increased allocations of internal R&D costs relating to its drug delivery technology collaborations to the cost of revenues.
