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Opko Health Inc Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 9, 2012 02:26PM

Opko Health Inc (OPK) filed Quarterly Report for the period ended 2012-06-30. Opko Health Inc. has a market cap of $1.27 billion; its shares were traded at around $4.24 with and P/S ratio of 45.4.



Highlight of Business Operations:

In connection with the Transaction, we agreed to pay an aggregate purchase price of €13.5 million (US $16.8 million), of which (i) €6.75 million (US $8.4 million) was paid in cash at closing, and (ii) €6.75 million (US$ 8.4 million) (the “Deferred Payment”) will be paid, at our option, in cash or shares of our Common Stock, par value $0.01 (the “Common Stock”) as follows: (x) €3.376 million (US$4.2 million) to be paid on the first anniversary of the closing date; and (y) €3.376 million (US$4.2 million) to be paid 18 months after the closing date. In the event we elect to pay the Deferred Payment in shares of Common Stock, the number of shares issuable shall be calculated using the average closing sales price per share of our Common Stock as reported on the New York Stock Exchange (“NYSE”) for the ten trading days immediately preceding the applicable payment date. We have the right to hold back up to €2.8 million (US$3.5 million) from the Deferred Payment to satisfy indemnity claims.

Revenue. Revenue for the three months ended June 30, 2012, was $10.2 million, compared to $8.4 million for the comparable 2011 period. The increase in revenue during the three months ended June 30, 2012 is primarily due to $1.5 million of revenue generated by our Israeli API manufacturer, which we acquired in December 2011, and $1.2 million of revenue generated in Chile related to our acquisition of ALS in April 2012 partially offset by decreased revenue in Mexico of $0.7 million.

Revenue. Revenue for the six months ended June 30, 2012, was $19.0 million, compared to $15.4 million for the comparable 2011 period. The increase in revenue during the first six months of 2012 is primarily due to $ 3.1 million of revenue generated by our Israeli API manufacturer, which we acquired in December 2011, and $0.4 million of deferred revenue recognized in connection with our agreements with Neovasc and LabCorp.

Gross margin. Gross margin for the six months ended June 30, 2012, was $7.4 million compared to $6.3 million for the comparable period of 2011. Gross margin for the six months ended June 30, 2012, increased from the 2011 period primarily as a result of the increased gross margin of $2.2 million generated by our pharmaceutical business in Israel and $0.4 million of deferred revenue recognized in connection with our agreements with Neovasc and LabCorp. These increases were partially offset by decreased gross margin generated by our pharmaceutical business in Chile principally due to $0.7 million of inventory reserves.

In August 2012, we entered into a stock purchase agreement pursuant to which we acquired all of the outstanding stock of Farmadiet. In connection with the Transaction, we agreed to pay an aggregate purchase price of €13.5 million (US $16.8 million), of which (i) €6.75 million (US $8.4 million) was paid in cash at closing, and (ii) €6.75 million (US$ 8.4 million) (the “Deferred Payment”) will be paid, at our option, in cash or shares of our Common Stock, as follows: (x) €3.376 million (US$4.2 million) to be paid on the first anniversary of the closing date; and (y) €3.376 million (US$4.2 million) to be paid 18 months after the closing date. In the event we elect to pay the Deferred Payment in shares of our Common Stock, the number of shares issuable shall be calculated using the average closing sales price per share of our Common Stock as reported on the NYSE for the ten trading days immediately preceding the applicable payment date. We have the right to hold back up to €2.8 million (US$3.5 million) from the Deferred Payment to satisfy indemnity claims.

Read the The complete Report



Stocks Discussed: OPK,
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