Dyax Corp. (DYAX, Financial) filed Quarterly Report for the period ended 2011-03-31.
Dyax Corp. has a market cap of $197.42 million; its shares were traded at around $2 with and P/S ratio of 3.84.
In December 2010, we amended our agreement with Sigma-Tau to expand our collaboration to commercialize KALBITOR for the treatment of HAE in Australia and New Zealand. Under the terms of the amendment, in January 2011, Sigma-Tau made a $500,000 upfront payment to us and also purchased 151,515 shares of our common stock at a price of $3.30 per share, which represented a 50% premium over the 20-day average closing price through December 20, 2010, for an aggregate purchase price of $500,000. We will also be eligible to receive up to $2 million in regulatory and commercialization milestones and royalties equal to 41% of net sales of product, as adjusted for product costs. Consistent with the previous agreement, Sigma-Tau will pay the costs associated with regulatory approval and commercialization in these additional territories.
Our financial guidance for total revenue in 2011 is $38 to $44 million, including KALBITOR sales of $20 to $24 million. In addition, our long term plan is to achieve potential revenue growth in 2016 of $110 to $125 million for KALBITOR sales and LFRP revenue of $70 to $85 million.
We record product sales allowances and accruals related to trade prompt pay discounts, government rebates, a patient financial assistance program, product returns and other applicable allowances. For the 2011 Quarter, product sales of KALBITOR were $4.1 million, net of product discounts and allowances of $186,000 compared with product sales of $1.2 million, net of product discounts and allowances of $69,000 during the 2010 Quarter.
The principal use of cash in our operations was to fund our net loss, which was $11.3 million during the 2011 Quarter. Of this net loss, certain costs were non-cash charges, such as non-cash interest expense of $1.7 million, depreciation and amortization costs of $406,000 and stock-based compensation expense of $1.0 million. In addition to non-cash charges, we also had net cash out flow due to changes in other operating assets and liabilities, including a decrease in accounts payable and accrued expenses of $3.4 million, a decrease in accounts receivable of $309,000, and a decrease in deferred revenue of $469,000.
Net cash used in operating activities for the 2010 Quarter was $16.1 million. While our operations resulted in net income of $954,000, we recognized $14.3 million in non-cash revenues which were previously deferred for financial reporting purposes, including the recognition of $13.8 million of revenue associated with the Cubist license. In addition, we incurred certain non-cash operating charges, such as stock-based compensation expense of $942,000 and depreciation and amortization of $399,000. In addition to non-cash charges, we also had a net change in other operating assets and liabilities of $4.5 million, which included a decrease of $5.7 million in accounts payable and accrued expenses, partially offset by a decrease in accounts receivable of $1.4 million.
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Dyax Corp. has a market cap of $197.42 million; its shares were traded at around $2 with and P/S ratio of 3.84.
Highlight of Business Operations:
In June 2010, we entered into a strategic partnership agreement with Sigma-Tau to develop and commercialize subcutaneous ecallantide for the treatment of HAE and other therapeutic indications throughout Europe, North Africa, the Middle East and Russia. We retained our rights to ecallantide in all other territories. Under the terms of the agreement, Sigma-Tau made a $2.5 million upfront payment to us and also purchased 636,132 shares of our common stock at a price of $3.93 per share, which represented a 50% premium over the 20-day average closing price through June 17, 2010, for an aggregate purchase price of $2.5 million. We will also be eligible to receive over $100 million in development and sales milestones related to ecallantide and royalties equal to 41% of net sales of product. Sigma-Tau will pay the costs associated with regulatory approval and commercialization in the licensed territories. In addition, we and Sigma-Tau will share equally the costs for all development activities for future indications developed in partnership with Sigma-Tau.In December 2010, we amended our agreement with Sigma-Tau to expand our collaboration to commercialize KALBITOR for the treatment of HAE in Australia and New Zealand. Under the terms of the amendment, in January 2011, Sigma-Tau made a $500,000 upfront payment to us and also purchased 151,515 shares of our common stock at a price of $3.30 per share, which represented a 50% premium over the 20-day average closing price through December 20, 2010, for an aggregate purchase price of $500,000. We will also be eligible to receive up to $2 million in regulatory and commercialization milestones and royalties equal to 41% of net sales of product, as adjusted for product costs. Consistent with the previous agreement, Sigma-Tau will pay the costs associated with regulatory approval and commercialization in these additional territories.
Our financial guidance for total revenue in 2011 is $38 to $44 million, including KALBITOR sales of $20 to $24 million. In addition, our long term plan is to achieve potential revenue growth in 2016 of $110 to $125 million for KALBITOR sales and LFRP revenue of $70 to $85 million.
We record product sales allowances and accruals related to trade prompt pay discounts, government rebates, a patient financial assistance program, product returns and other applicable allowances. For the 2011 Quarter, product sales of KALBITOR were $4.1 million, net of product discounts and allowances of $186,000 compared with product sales of $1.2 million, net of product discounts and allowances of $69,000 during the 2010 Quarter.
The principal use of cash in our operations was to fund our net loss, which was $11.3 million during the 2011 Quarter. Of this net loss, certain costs were non-cash charges, such as non-cash interest expense of $1.7 million, depreciation and amortization costs of $406,000 and stock-based compensation expense of $1.0 million. In addition to non-cash charges, we also had net cash out flow due to changes in other operating assets and liabilities, including a decrease in accounts payable and accrued expenses of $3.4 million, a decrease in accounts receivable of $309,000, and a decrease in deferred revenue of $469,000.
Net cash used in operating activities for the 2010 Quarter was $16.1 million. While our operations resulted in net income of $954,000, we recognized $14.3 million in non-cash revenues which were previously deferred for financial reporting purposes, including the recognition of $13.8 million of revenue associated with the Cubist license. In addition, we incurred certain non-cash operating charges, such as stock-based compensation expense of $942,000 and depreciation and amortization of $399,000. In addition to non-cash charges, we also had a net change in other operating assets and liabilities of $4.5 million, which included a decrease of $5.7 million in accounts payable and accrued expenses, partially offset by a decrease in accounts receivable of $1.4 million.
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