May 7 2007, 4:05 PM EST
News source: Business Wire
Akorn, Inc. (NASDAQ:AKRX) a specialty pharmaceutical company, today reported financial results for the first quarter ended March 31, 2007.
Total revenue for the first quarter 2007 was $11.7 million as compared to $29.7 million in the first quarter 2006. In the first quarter of 2006, the Company recognized $22.0 million of Ca-DTPA and Zn-DTPA revenue through a contract with the Department of Health and Human Services. Gross profit for the first quarter 2007 was $2.5 million as compared to $11.7 million in the first quarter 2006. The decline in gross profit was primarily impacted by first quarter 2006 DTPA revenues, which contributed $9.7 million in gross profit.
First quarter 2007 revenue and gross profit were affected by customer backorders for IC-Green, which totaled $1.6 million as of March 31, 2007. Operating gross margins were also affected by higher manufacturing costs. In order to improve efficiencies, we have formed an Executive Task Force and appointed our Somerset Vice President of Operations to manage our manufacturing operations in Decatur.
Total operating expenses for the first quarter 2007 were $7.6 million, an increase of $711,000 over comparative prior year operating expenses of $6.9 million. This increase is due to non-cash expenses for restricted stock and stock options, which totaled $778,000. Research and product development (R&D) spending for the first quarter 2007 was $2.0 million, and is comparable to the first quarter 2006. Of that amount, milestone product development payments were $580,000. The Company ended the first quarter 2007 with $18.0 million in cash and cash equivalents.
The net loss available to common stockholders for the first quarter 2007 was $4.8 million or $0.06 per fully diluted share vs. net income available to common stockholders of $2.8 million in 2006 or $0.04 per fully diluted share.
Highlights for the First Quarter 2007:
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More News-- Biologics and Vaccines Business Segment:
-- March 27, 2007: Akorn announced the signing of a three-year
exclusive distribution agreement for Tetanus diphtheria
vaccine. This agreement begins on September 1, 2007 and
effectively increases the annual revenue base of the company
by 100%.
-- Ophthalmic Business Segment:
-- January 23, 2007: Akorn announced positive Phase III Pivotal
clinical trial results for Akten(R), the Company's first
internally developed New Drug Application (NDA) indicated for
ocular anesthesia. Recently, the Company had a pre-NDA filing
meeting with the FDA and based on that meeting, we expect to
file the NDA in the second quarter 2007.
-- January 9, 2007: Akorn announced the signing of an exclusive
definitive agreement with Azad Pharma for the development and
supply of three ANDA prostaglandin ophthalmic drug products.
-- Hospital Drugs and Injectables Business Segment:
-- January 30, 2007: Akorn announced an exclusive supply
agreement for Hydase(TM), a preservative-free NDA injectable
spreading agent.
-- On February 7, 2007 Akorn began trading on the Nasdaq Global Market
under the new symbol, "AKRX".
Arthur S. Przybyl, President and Chief Executive Officer stated, "The first quarter for Akorn was one of the most important quarters in the history of the Company. We executed a number of significant strategic successes that will provide revenues and profits in 2007 and beyond in three of our business segments: biologics and vaccines, ophthalmics, and hospital drugs and injectables. Clearly, our announcement to exclusively market and distribute tetanus diphtheria vaccine is vital to our short and long-term financial success. Beginning in September 2007, this Agreement effectively doubles the annual revenue of the Company and contributes sus
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