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

August 08, 2012 | About:
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10qk

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BioCryst Pharmaceuticals Inc. (BCRX) filed Quarterly Report for the period ended 2012-06-30.

Biocryst Pharmaceuticals, Inc. has a market cap of $208.7 million; its shares were traded at around $4.06 with and P/S ratio of 10.6. Biocryst Pharmaceuticals, Inc. had an annual average earning growth of 4.2% over the past 10 years.
This is the annual revenues and earnings per share of BCRX over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of BCRX.


Highlight of Business Operations:

The Amended and Restated Agreement is a multiple element arrangement for accounting purposes, in which we were required to deliver to Mundipharma both the worldwide rights to forodesine and the transfer of product data and know-how to permit Mundipharma to develop and commercialize forodesine (the “Knowledge Transfer”). Without completion of the Knowledge Transfer, Mundipharma would not be able to develop and commercialize forodesine in the U.S. We have accounted for these elements as a combined unit of accounting as neither one has stand-alone value to Mundipharma. The world-wide license rights were granted to Mundipharma on November 11, 2011. The Knowledge Transfer commenced in the fourth quarter of 2011 and was completed during the first quarter of 2012. Completion of the Knowledge Transfer concludes our obligations under the Amended and Restated Agreement and results in the recognition of the unamortized deferred revenue and expense of $7.8 million and $1.9 million, respectively, in our Consolidated Statement of Comprehensive Loss for the six months ended June 30, 2012. Recognition of these deferred amounts resulted in a $2.3 million decrease in our deferred tax assets, with an equal reduction to the valuation allowance, resulting in no impact to net deferred tax assets.

For the three months ended June 30, 2012, total revenues increased to $4.2 million compared to $3.7 million for the three months ended June 30, 2011. Revenue in the second quarter of 2012 consisted of $3.9 million of reimbursement of collaborative expenses from BARDA/HHS related to the continued development of i.v. peramivir and $0.3 million associated with collaborative revenue amortization from other corporate partnerships. BARDA/HHS revenue increased during the second quarter of 2012 related to an increase in reimbursable peramivir expenses as adjusted by continued development and ongoing 301 clinical trial activity as compared to the second quarter of 2011. Revenues in the second quarter of 2011 consisted of $3.1 million of reimbursement of collaborative expenses from BARDA/HHS related to the continued development of i.v. peramivir and $0.6 million associated with collaborative revenue amortization from other corporate partnerships.

For the six months ended June 30, 2012, total revenues increased to $16.4 million compared to $9.2 million for the six months ended June 30, 2011. Revenues in the first six months of 2012 included the recognition of $7.8 million of previously deferred revenue associated with the Amended and Restated License and Development Agreement with Mundipharma. The recognition of this revenue and the related expense (noted below) did not impact the Company’s cash balance. The remaining revenue consisted of $8.1 million of reimbursement of collaborative expenses from BARDA/HHS related to the continued development of i.v. peramivir and $592,000 associated with collaborative revenue amortization from other corporate partnerships. BARDA/HHS revenue increased in the six months ended June 30, 2012 compared to the prior year period due to an increase in reimbursable peramivir expenses reflecting continued development and ongoing 301 clinical trial activity. Revenues in the first six months of 2011 consisted of $7.8 million of reimbursement of collaborative expenses from BARDA/HHS related to the continued development of i.v. peramivir and $1.4 million associated with collaborative revenue amortization from other corporate partnerships.

Cash expenditures have exceeded revenues since our inception and we expect our 2012 operating expense to exceed our 2012 revenue. Our operations have principally been funded through public offerings and private placements of equity securities; cash from collaborative and other research and development agreements, including government contracts; and to a lesser extent, the PhaRMA Notes financing. On February 24, 2011, we announced that BARDA/HHS had awarded us a $55.0 million contract modification intended to fund completion of the Phase 3 development of i.v. peramivir, bringing the total award from BARDA/HHS to $234.8 million and extending the contract term by 24 months through December 2013. On March 9, 2011, we completed a $30.0 million non-recourse debt financing transaction designed to monetize certain future royalty and milestone payments under our license agreement with Shionogi. We received net proceeds from this transaction of approximately $22.7 million, excluding hedge collateral posted subsequent to the closing of the transaction. In June 2011, we entered into an At Market Issuance Sales Agreement (the “ATM Agreement”) with McNicoll, Lewis & Vlak (“MLV”) pursuant to which we may issue and sell $70.0 million in shares of our common stock at current market prices under a Form S-3 registration statement with MLV acting as the sales agent. As of June 30, 2012, we have sold an aggregate of 4.3 million shares of common stock at an average per share price of $3.95 pursuant to the ATM Agreement for net proceeds of $16.4 million.

Under certain of our license agreements, we receive royalty payments based upon our licensees’ net sales of covered products. Generally, under these agreements, we receive royalty reports from our licensees approximately one quarter in arrears, that is, generally in the second month of the quarter after the licensee has sold the royalty-bearing product. We recognize royalty revenues when we can reliably estimate such amounts and collectability is reasonably assured.

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