Pharmacyclics Inc. (PCYC, Financial) filed Quarterly Report for the period ended 2010-12-31.
Pharmacyclics Inc. has a market cap of $292.7 million; its shares were traded at around $4.99 with and P/S ratio of 31.5. Hedge Fund Gurus that owns PCYC: Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns PCYC: PRIMECAP Management, Chuck Royce of Royce& Associates, Chuck Royce of Royce& Associates.
The collaboration and license agreement required us to enter into an agreement to supply drug product for Servier s use in clinical trials. As the supply agreement is considered part of the arrangement we deferred recognition of all revenue under the Servier collaboration agreement until the supply agreement was completed and executed. We completed the drug supply agreement with Servier and began recognizing revenue in the second quarter ended December 31, 2009. Of the $4,702,000 in revenue recognized for the three months ended December 31, 2009, $1,211,000 represents the pro rata portion of revenue attributable to the period from April 2009 (i.e., the signing of the collaboration agreement) to June 30, 2009, had the supply agreement been completed in April 2009.
The increase of 122% or $4,533,000 in research and development expenses for the three months ended December 31, 2010 as compared to the three months ended December 31, 2009, was primarily due to a $1,456,000 increase in third-party clinical trial costs, a $1,227,000 increase in drug manufacturing charges related to our Btk and HDAC programs, a $1,051,000 increase in stock compensation expenses, a $497,000 increase in payroll and payroll-related costs due to increased personnel, a $479,000 increase in toxicology and pharmacology charges related to our Btk and HDAC programs, a $331,000 increase in consulting and outside services and a $145,000 increase in lab supply costs, partially offset by a net $586,000 TDP (see Note 8) and a $180,000 decrease in drug manufacturing charges related to our Factor VIIa program.
The increase of 128% or $8,947,000 in research and development expenses for the six months ended December 31, 2010, as compared to the six months ended December 31, 2009, was primarily due to a $2,587,000 increase in stock compensation expenses, a $2,209,000 increase in third-party clinical trial costs, a $1,825,000 increase in drug manufacturing charges related to our Btk and HDAC programs, a $986,000 increase in toxicology and pharmacology charges related to our Btk and HDAC programs, a $867,000 increase in payroll and payroll-related costs due to increased personnel, a $695,000 increase in consulting and other outside research costs, and a $308,000 increase in lab supply costs, partially offset by a net $586,000 TDP (see Note 8) and a $103,000 decrease in drug manufacturing charges related to our Factor VIIa program.
General and administrative expenses increased by 19% or $328,000 in the three months ended December 31, 2010 compared with the three months ended December 31, 2009. This was primarily due to a $315,000 increase in stock compensation expense.
The increase of 19% or $629,000 in general and administrative expenses for the six months ended December 31, 2010, as compared to the six months ended December 31, 2009, was primarily due to a $703,000 increase in stock compensation expense that was partially offset by a reduction in outside services.
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Pharmacyclics Inc. has a market cap of $292.7 million; its shares were traded at around $4.99 with and P/S ratio of 31.5. Hedge Fund Gurus that owns PCYC: Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns PCYC: PRIMECAP Management, Chuck Royce of Royce& Associates, Chuck Royce of Royce& Associates.
Highlight of Business Operations:
We recorded $2,824,000 and $4,788,000 in revenue for the three and six months ended December 31, 2010, respectively, associated with our collaboration and license agreement with Servier which was entered into in April 2009. Given that the deliverables under the collaboration agreement with Servier did not meet criteria in the accounting rules for separation (e.g., no separately identifiable fair value), the arrangement is being treated as a single unit of accounting for purposes of revenue recognition. We recognize the combined unit of accounting over the estimated period required to complete the research activities (two years), which coincides with the delivery period for all substantive obligations or “deliverables” associated with this agreement. Of the total revenue for the three and six months ended December 31, 2010, $1,386,000 and $2,773,000, respectively, represent the amortization of the $11,000,000 upfront payment from Servier received in April 2009 and the remainder represents the pro-rata completion of services associated with research payments, our supply commitment and reimbursement of patent expenses.The collaboration and license agreement required us to enter into an agreement to supply drug product for Servier s use in clinical trials. As the supply agreement is considered part of the arrangement we deferred recognition of all revenue under the Servier collaboration agreement until the supply agreement was completed and executed. We completed the drug supply agreement with Servier and began recognizing revenue in the second quarter ended December 31, 2009. Of the $4,702,000 in revenue recognized for the three months ended December 31, 2009, $1,211,000 represents the pro rata portion of revenue attributable to the period from April 2009 (i.e., the signing of the collaboration agreement) to June 30, 2009, had the supply agreement been completed in April 2009.
The increase of 122% or $4,533,000 in research and development expenses for the three months ended December 31, 2010 as compared to the three months ended December 31, 2009, was primarily due to a $1,456,000 increase in third-party clinical trial costs, a $1,227,000 increase in drug manufacturing charges related to our Btk and HDAC programs, a $1,051,000 increase in stock compensation expenses, a $497,000 increase in payroll and payroll-related costs due to increased personnel, a $479,000 increase in toxicology and pharmacology charges related to our Btk and HDAC programs, a $331,000 increase in consulting and outside services and a $145,000 increase in lab supply costs, partially offset by a net $586,000 TDP (see Note 8) and a $180,000 decrease in drug manufacturing charges related to our Factor VIIa program.
The increase of 128% or $8,947,000 in research and development expenses for the six months ended December 31, 2010, as compared to the six months ended December 31, 2009, was primarily due to a $2,587,000 increase in stock compensation expenses, a $2,209,000 increase in third-party clinical trial costs, a $1,825,000 increase in drug manufacturing charges related to our Btk and HDAC programs, a $986,000 increase in toxicology and pharmacology charges related to our Btk and HDAC programs, a $867,000 increase in payroll and payroll-related costs due to increased personnel, a $695,000 increase in consulting and other outside research costs, and a $308,000 increase in lab supply costs, partially offset by a net $586,000 TDP (see Note 8) and a $103,000 decrease in drug manufacturing charges related to our Factor VIIa program.
General and administrative expenses increased by 19% or $328,000 in the three months ended December 31, 2010 compared with the three months ended December 31, 2009. This was primarily due to a $315,000 increase in stock compensation expense.
The increase of 19% or $629,000 in general and administrative expenses for the six months ended December 31, 2010, as compared to the six months ended December 31, 2009, was primarily due to a $703,000 increase in stock compensation expense that was partially offset by a reduction in outside services.
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