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MAP PHARMACEUTICALS, INC. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: July 27, 2012 06:11AM

MAP PHARMACEUTICALS, INC. (MAPP) filed Quarterly Report for the period ended 2012-06-30. Map Pharmaceuticals Inc. has a market cap of $438.6 million; its shares were traded at around $14.26 with and P/S ratio of 19.



Highlight of Business Operations:

In February 2011, Allergan paid us an upfront payment of $60.0 million, out of which we have recognized $0.9 million and $1.9 million, respectively, for the three and six months ended June 30, 2012, compared to $0.8 million and $1.4 million, respectively, for the same periods in 2011. We have recognized $5.0 million for the cumulative period from July 3, 2003 (date of inception) to June 30, 2012. As of June 30, 2012, $55.0 million of the initial $60.0 million remained unrecognized and will be amortized as collaboration revenue through the end date of the non-contingent deliverable in the Collaboration Agreement with the longest term. Our participation in joint committees with Allergan has the longest obligation period, requiring our participation throughout the term of the Collaboration Agreement. The term of the Collaboration Agreement is the later of (a) December 31, 2025, and (b) the date that our last patent right covering LEVADEX in the United States expires. The date that our last patent right covering LEVADEX in the United States expires is 2028. As a result, we will amortize the remaining $55.0 million of the initial $60.0 million through 2028.

The collaboration revenue was due to the Allergan Agreements which were effective in January 2011. In February 2011, Allergan paid us an upfront payment of $60.0 million, out of which we recognized $0.9 million and $1.9 million, respectively, as collaboration revenue for the three and six months ended June 30, 2012, compared to $0.8 million and $1.4 million, respectively, for the same periods in 2011. As of June 30, 2012, $55.0 million of the initial $60.0 million remained unrecognized and will be amortized as collaboration revenue over the estimated obligation period.

For the three months ended June 30, 2012 compared to the same period in 2011, the increase in sales, general and administrative expenses was due primarily to an increase of $1.2 million in personnel related expenses primarily within sales and marketing, including stock-based compensation, and an increase of $0.4 million in other administrative expenses, partially offset by a decrease of $0.2 million in professional services.

For the six months ended June 30, 2012 compared to the same period in 2011, the increase in sales, general and administrative expenses was due primarily to an increase of $2.7 million in personnel related expenses primarily within sales and marketing, including stock-based compensation, an increase of $1.0 million in professional services, including activities in preparation for a potential launch of LEVADEX, and an increase of $0.8 million in other administrative expenses.

Net cash provided by (used in) operating activities. We used $29.4 million of cash for operating activities for the six months ended June 30, 2012 compared to receiving cash of $31.1 million from the corresponding period in 2011. The cash used for operating activities for the six months ended June 30, 2012 was due primarily to net loss of $31.1 million and a decrease in accounts payable of $2.2 million resulting from payments to certain vendors, partially offset by stock-based compensation of $4.3 million. The cash provided by operating activities for the six months ended June 30, 2011 was due primarily to a $60.0 million nonrefundable upfront cash payment we received from Allergan in February 2011, which resulted in an increase in deferred revenue of $58.6 million, partially offset by a net loss of $27.3 million and a decrease in accrued liabilities of $4.1 million as a result of the payment of expenses related to the LEVADEX Phase 3 clinical program.

Read the The complete Report



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