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Optimer Pharmaceuticals Inc. Reports Operating Results (10-Q)

August 04, 2010 | About:
Gordon Pape

10qk

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Optimer Pharmaceuticals Inc. (OPTR) filed Quarterly Report for the period ended 2010-06-30.

Optimer Pharmaceuticals Inc. has a market cap of $351.4 million; its shares were traded at around $9.19 with and P/S ratio of 393.6. Optimer Pharmaceuticals Inc. had an annual average earning growth of 19.2% over the past 5 years.OPTR is in the portfolios of Stanley Druckenmiller of Duquesne Capital Management, LLC.

Highlight of Business Operations:

Total consolidated compensation expense of $2.2 million and $705,000 was recognized in the three months ended June 30, 2010 and 2009, respectively. Total consolidated compensation expense of $3.2 million and $1.3 million was recognized in the six months ended June 30, 2010 and 2009, respectively. The stock-based compensation expense recognized during the three months and six months ended June 30, 2010 include expense from performance-based stock options and restricted stock units granted to Pedro Lichtinger and Michael Chang in May 2010.

General and Administrative Expense. General and administrative expense for the three months ended June 30, 2010 and 2009 was $3.7 million and $1.9 million, respectively. The increase of $1.8 million, or 95%, was due to higher compensation expenses, including $1.6 million of stock compensation expense, an increase of $1.3 million over the same period in the prior year.

Collaboration Research and Grant Revenues. Collaboration research and grant revenues for the six months ended June 30, 2010 and 2009 were $655,000 and $508,000, respectively. The increase of $147,000, or 29%, was primarily due to an increase in research funding related to an NIH grant.

Research and Development Expense. Research and development expense for the six months ended June 30, 2010 and 2009 was $17.8 million and $19.7 million, respectively, a decrease of $1.9 million, or 10%. The decrease was primarily due to a decrease in fidaxomicin and Pruvel development expenses and manufacturing set-up expenses reimbursable to Biocon Inc. incurred in the prior year. The decrease was offset by a $5.0 million milestone paid to Par for the successful completion of the second fidaxomicin Phase 3 trial.

General and Administrative Expense. General and administrative expense for the six months ended June 30, 2010 and 2009 was $6.1 million and $3.9 million, respectively. The increase of $2.2 million, or 56%, was due to higher compensation expenses, including $2.1 million of stock compensation expense, an increase of $1.5 million over the same period in the prior year, as well as higher consulting expenses.

As of June 30, 2010, cash, cash equivalents and short-term investments totaled approximately $66.6 million as compared to $38.2 million as of December 31, 2009, an increase of approximately $28.4 million. The increase in our cash, cash equivalent and short-term investments was primarily due to the $51.2 million raised in a follow-on offering of our common stock in March 2010, offset by the use of cash for our operating expenses. Of the $66.6 million, $5.0 million was held by OBI as of June 30, 2010.

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