Horizon Pharma reports $17.2 million 3Q loss
Deerfield-based Horizon Pharma Inc. reported a net loss of $17.2 million for the third quarter on the heels of the company's $49.5 million initial public offering in August.
The company ended the quarter with cash and cash equivalents totaling $33 million, with a total revenue was $300,000, the company said in a statement. The company noted that most revenues for the year were generated by the sale of the rheumatoid arthritis drug Lodotra in Europe. However, company officials also note a number of positive signs with its planned launch of the osteoathristis and rheumatoid drug Duexis in the U.S.
“Since completing our IPO in early August, we have transformed the company into a fully-integrated biopharmaceutical organization,” said Timothy P. Walbert, chairman, president and chief executive officer of Horizon. “We have completed the hiring and deployment of our commercial organization and executed our promotional launch and, with the approval of the commercial manufacturing facility for Duexis, we plan to begin shipping Duexis into the commercial pipeline in the U.S. in the next few weeks.
“We also received notice of allowance on two key Duexis patents, providing potential exclusivity of Duexis out to 2026,” Walbert added. “Further, we advanced our near-term product portfolio via our submission of a New Drug Application to the FDA for our second product candidate, Lodotra, for the treatment of rheumatoid arthritis.”
In August, Horizon completed its initial public offering with the sale of 5.5 million shares of common stock at $9 per share for gross proceeds of $49.5 million. Horizon's common stock began trading on the NASDAQ Global Market on July 28, 2011 under the symbol “HZNP.”
Third Quarter 2011 Financial Results
During the third quarter, revenues decreased by $400,000, compared to the same period in 2010, primarily due to the timing of purchases by the company's distribution partners. Cost of goods sold increased $500,000 during the third quarter compared to the same period in 2010, primarily due to a one-time $0.4 million Lodotra inventory adjustment written off against cost of goods sold.
The foreign exchange loss of $800,000 for the period was primarily a result of the increase in value of the U.S. dollar against the Euro in connection with translating foreign currency transactions at the Company's Swiss subsidiary, the company said.