Opko Health Inc (OPK, Financial) filed Quarterly Report for the period ended 2010-09-30.
Opko Health Inc has a market cap of $771 million; its shares were traded at around $3.02 with and P/S ratio of 58.7. OPK is in the portfolios of Mario Gabelli of GAMCO Investors, Jim Simons of Renaissance Technologies LLC.
Research and development expense. Research and development expense during the three months ended September 30, 2010 and 2009, was $2.1 million and $2.8 million, respectively. The decrease for the three months ended September 30, 2010, primarily reflects decreased equity-based compensation expense and professional fees, partially offset by increased activities related to our rolapitant and molecular diagnostics development programs. Research and development expenses during the three months ended September 30, 2010, includes equity-based compensation expense of $0.2 million, compared to $1.0 million for the 2009 period.
Other income and expenses, net. Other income and expense, net was $0.3 million for the three months ended September 30, 2010 compared to other income and expense, net of $0.5 million for the comparable 2009 period. Other income primarily consists of interest earned on our cash and cash equivalents and other expense primarily includes foreign currency expense during the 2010 period. Other expense during the 2009 period primarily reflects the interest incurred on our line of credit with The Frost Group LLC (the Frost Group). On June 2, 2010, we repaid all amounts outstanding on the Frost Group line of credit including $12 million in principal and $4.1 million in interest. We have the ability to redraw funds under the line of credit until its expiration in January 2011. The Frost Group members include a trust controlled by Dr. Frost, who is the Companys Chief Executive Officer and Chairman of the board of directors, Dr. Jane H. Hsiao, who is the Vice Chairman of the board of directors and Chief Technical Officer, Steven D. Rubin who is Executive Vice President Administration and a director of the Company and Rao Uppaluri who is the Chief Financial Officer of the Company.
Selling, general and administrative expense. Selling, general and administrative expense for the nine months ended September 30, 2010, was $15.9 million compared to $9.3 million of expense for the comparable period of 2009. The increase in selling, general and administrative expenses primarily reflects the increase in selling expenses related to our pharmaceutical business, as well as professional fees. Selling, general and administrative expenses during the first nine months of 2010 and 2009, primarily include personnel expenses, including equity-based compensation expense of $3.4 million and $2.3 million, respectively, and professional fees.
Research and development expense. Research and development expense during the nine months ended September 30, 2010 and 2009, was $5.0 million and $11.0 million, respectively. The decrease for the nine months ended September 30, 2010, primarily reflects the inclusion during the 2009 period of the cost of the Phase III clinical trial for bevasiranib until March 6, 2009, when the trial was shut down. The 2009 period includes the shutdown costs of the trial, including transitioning patients from the trial onto the standard of care therapy. The shutdown costs also include the cost of analyzing the data collected and performing statistical analysis. Partially offsetting the decrease in research and development expense was increased activity related to our rolapitant and molecular diagnostic testing development programs. The nine months ended September 30, 2010, includes equity-based compensation expense of $0.7 million, compared to $1.2 million for the 2009 period.
In connection with our acquisition of OPKO Chile, we have outstanding lines of credit in the aggregate amount of $18.4 million with seven financial institutions in Chile, of which, $9.8 million is unused. The average interest rate on these lines of credit is approximately 4%. These lines of credit are short-term and are generally due within three months. These lines of credit are used primarily as a source of working capital for inventory purchases. The highest balance at any time during the three months ended September 30, 2010 was $14.6 million. We intend to continue to enter into these lines of credit as needed. There is no assurance that this or other funding sources will be available to us on acceptable terms, or at all.
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Opko Health Inc has a market cap of $771 million; its shares were traded at around $3.02 with and P/S ratio of 58.7. OPK is in the portfolios of Mario Gabelli of GAMCO Investors, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Selling, general and administrative expense. Selling, general and administrative expense for the three months ended September 30, 2010, was $6.0 million compared to $3.1 million of expense for the comparable period of 2009. The increase in selling, general and administrative expenses primarily reflects the increase in selling expenses related to our pharmaceutical business. Selling, general and administrative expenses during the three months ended September 30, 2010 and 2009, primarily include personnel expenses, including equity-based compensation expense of $1.2 million and $0.8 million, respectively, and professional fees.Research and development expense. Research and development expense during the three months ended September 30, 2010 and 2009, was $2.1 million and $2.8 million, respectively. The decrease for the three months ended September 30, 2010, primarily reflects decreased equity-based compensation expense and professional fees, partially offset by increased activities related to our rolapitant and molecular diagnostics development programs. Research and development expenses during the three months ended September 30, 2010, includes equity-based compensation expense of $0.2 million, compared to $1.0 million for the 2009 period.
Other income and expenses, net. Other income and expense, net was $0.3 million for the three months ended September 30, 2010 compared to other income and expense, net of $0.5 million for the comparable 2009 period. Other income primarily consists of interest earned on our cash and cash equivalents and other expense primarily includes foreign currency expense during the 2010 period. Other expense during the 2009 period primarily reflects the interest incurred on our line of credit with The Frost Group LLC (the Frost Group). On June 2, 2010, we repaid all amounts outstanding on the Frost Group line of credit including $12 million in principal and $4.1 million in interest. We have the ability to redraw funds under the line of credit until its expiration in January 2011. The Frost Group members include a trust controlled by Dr. Frost, who is the Companys Chief Executive Officer and Chairman of the board of directors, Dr. Jane H. Hsiao, who is the Vice Chairman of the board of directors and Chief Technical Officer, Steven D. Rubin who is Executive Vice President Administration and a director of the Company and Rao Uppaluri who is the Chief Financial Officer of the Company.
Selling, general and administrative expense. Selling, general and administrative expense for the nine months ended September 30, 2010, was $15.9 million compared to $9.3 million of expense for the comparable period of 2009. The increase in selling, general and administrative expenses primarily reflects the increase in selling expenses related to our pharmaceutical business, as well as professional fees. Selling, general and administrative expenses during the first nine months of 2010 and 2009, primarily include personnel expenses, including equity-based compensation expense of $3.4 million and $2.3 million, respectively, and professional fees.
Research and development expense. Research and development expense during the nine months ended September 30, 2010 and 2009, was $5.0 million and $11.0 million, respectively. The decrease for the nine months ended September 30, 2010, primarily reflects the inclusion during the 2009 period of the cost of the Phase III clinical trial for bevasiranib until March 6, 2009, when the trial was shut down. The 2009 period includes the shutdown costs of the trial, including transitioning patients from the trial onto the standard of care therapy. The shutdown costs also include the cost of analyzing the data collected and performing statistical analysis. Partially offsetting the decrease in research and development expense was increased activity related to our rolapitant and molecular diagnostic testing development programs. The nine months ended September 30, 2010, includes equity-based compensation expense of $0.7 million, compared to $1.2 million for the 2009 period.
In connection with our acquisition of OPKO Chile, we have outstanding lines of credit in the aggregate amount of $18.4 million with seven financial institutions in Chile, of which, $9.8 million is unused. The average interest rate on these lines of credit is approximately 4%. These lines of credit are short-term and are generally due within three months. These lines of credit are used primarily as a source of working capital for inventory purchases. The highest balance at any time during the three months ended September 30, 2010 was $14.6 million. We intend to continue to enter into these lines of credit as needed. There is no assurance that this or other funding sources will be available to us on acceptable terms, or at all.
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