Santarus Inc. (SNTS, Financial) filed Quarterly Report for the period ended 2009-09-30.
Santarus Inc is a specialty pharmaceutical company focused on acquiring developing and commercializing proprietary products for the prevention and treatment of gastrointestinal diseases and disorders. Santarus Inc. has a market cap of $188.7 million; its shares were traded at around $3.25 with a P/E ratio of 108.3 and P/S ratio of 1.5.
License Fees and Royalties. License fees and royalties were $2.0 million for the three months ended September 30, 2009 and $3.6 million for the three months ended September 30, 2008. For both periods, license fees and royalties included royalties due to the University of Missouri based upon our net product sales as well as products sold by GSK under our license and distribution agreements. In addition, for the three months ended September 30, 2008, license fees and royalties included an accrual of approximately $1.8 million related to a one-time $2.5 million sales milestone paid to the University of Missouri under our license agreement. For the three months ended September 30, 2009 and 2008, license fees and royalties also included license fee amortization from the $12.0 million upfront fee paid to Depomed under our promotion agreement entered into in July 2008. The $12.0 million upfront fee has been capitalized and is being amortized to license fee expense over the estimated useful life of the asset on a straight-line basis through mid-2016.
Product Sales, Net. Product sales, net were $87.0 million for the nine months ended September 30, 2009 and $71.5 million for the nine months ended September 30, 2008 and consisted of sales of Zegerid Capsules and Zegerid Powder for Oral Suspension. The $15.5 million increase in product sales, net was comprised of approximately $10.5 million related to an increase in the sales volume of our Zegerid products primarily driven by Zegerid Capsules, as well as approximately $5.0 million related to increased average selling prices.
License Fees and Royalties. License fees and royalties were $5.7 million for the nine months ended September 30, 2009 and $9.7 million for the nine months ended September 30, 2008. For both periods, license fees and royalties included royalties due to the University of Missouri based upon our net product sales as well as products sold by GSK under our license and distribution agreements. In addition, for the nine months ended September 30, 2008, license fees and royalties included an accrual of approximately $1.8 million related to a one-time $2.5 million sales milestone paid to the University of Missouri under our license agreement. For both periods, license fees and royalties also included license fee amortization from the $12.0 million upfront fee paid to Depomed under our promotion agreement entered into in July 2008. The $12.0 million upfront fee has been capitalized and is being amortized to license fee expense over the estimated useful life of the asset on a straight-line basis through mid-2016. For the nine months ended September 30, 2008, license fees and royalties also included royalties due to Otsuka America under our co-promotion agreement based upon our net product sales. Following the termination of our co-promotion agreement effective as of June 30, 2008, we are no longer obligated to pay royalties to Otsuka America.
As of September 30, 2009, cash, cash equivalents and short-term investments were $61.8 million, compared to $52.0 million as of December 31, 2008, an increase of $9.8 million. This net increase resulted from our net income for the nine months ended September 30, 2009, adjusted for non-cash charges and changes in operating assets and liabilities. Additionally, in the nine months ended September 30, 2009, we reclassified the fair value of our auction rate securities, or ARS, and auction rate securities rights, or ARS Rights, from long-term to short-term investments reflecting our intent to exercise the ARS Rights in the next 12 months. The ARS Rights permit us to require our investment provider to purchase our ARS at par value at any time during the period June 30, 2010 through July 2, 2012. The total fair value of our ARS and ARS Rights as of September 30, 2009 was approximately $4.0 million.
Net cash provided by operating activities was $5.3 million for the nine months ended September 30, 2009, and net cash used in operating activities was $13.7 million for the nine months ended September 30, 2008. The primary source of cash for the nine months ended September 30, 2009 resulted from our net income for the period adjusted for non-cash expenses, including $1.6 million in depreciation and amortization and $3.5 million in stock-based compensation, and changes in operating assets and liabilities. The primary use of cash for the nine months ended September 30, 2008 resulted from our net loss for the period adjusted for non-cash expenses, including $3.2 million in stock-based compensation, and changes in operating assets and liabilities. Significant working capital uses of cash for the nine months ended September 30, 2009 included decreases in deferred revenue and increases in accounts receivable, offset in part by increases in the allowance for product returns and accounts payable and accrued liabilities. Significant working capital uses of cash for the nine months ended September 30, 2008 included decreases in deferred revenue and increases in accounts receivable, offset in part by an increase in the allowance for product returns and increases in accounts payable and accrued liabilities primarily driven by an increase in accrued rebates.
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Santarus Inc is a specialty pharmaceutical company focused on acquiring developing and commercializing proprietary products for the prevention and treatment of gastrointestinal diseases and disorders. Santarus Inc. has a market cap of $188.7 million; its shares were traded at around $3.25 with a P/E ratio of 108.3 and P/S ratio of 1.5.
Highlight of Business Operations:
Product Sales, Net. Product sales, net were $31.5 million for the three months ended September 30, 2009 and $28.1 million for the three months ended September 30, 2008 and consisted of sales of Zegerid Capsules and Zegerid Powder for Oral Suspension. The $3.4 million increase in product sales, net was comprised of approximately $1.1 million related to an increase in the sales volume of our Zegerid products primarily driven by Zegerid Capsules, as well as approximately $2.3 million related to increased average selling prices.License Fees and Royalties. License fees and royalties were $2.0 million for the three months ended September 30, 2009 and $3.6 million for the three months ended September 30, 2008. For both periods, license fees and royalties included royalties due to the University of Missouri based upon our net product sales as well as products sold by GSK under our license and distribution agreements. In addition, for the three months ended September 30, 2008, license fees and royalties included an accrual of approximately $1.8 million related to a one-time $2.5 million sales milestone paid to the University of Missouri under our license agreement. For the three months ended September 30, 2009 and 2008, license fees and royalties also included license fee amortization from the $12.0 million upfront fee paid to Depomed under our promotion agreement entered into in July 2008. The $12.0 million upfront fee has been capitalized and is being amortized to license fee expense over the estimated useful life of the asset on a straight-line basis through mid-2016.
Product Sales, Net. Product sales, net were $87.0 million for the nine months ended September 30, 2009 and $71.5 million for the nine months ended September 30, 2008 and consisted of sales of Zegerid Capsules and Zegerid Powder for Oral Suspension. The $15.5 million increase in product sales, net was comprised of approximately $10.5 million related to an increase in the sales volume of our Zegerid products primarily driven by Zegerid Capsules, as well as approximately $5.0 million related to increased average selling prices.
License Fees and Royalties. License fees and royalties were $5.7 million for the nine months ended September 30, 2009 and $9.7 million for the nine months ended September 30, 2008. For both periods, license fees and royalties included royalties due to the University of Missouri based upon our net product sales as well as products sold by GSK under our license and distribution agreements. In addition, for the nine months ended September 30, 2008, license fees and royalties included an accrual of approximately $1.8 million related to a one-time $2.5 million sales milestone paid to the University of Missouri under our license agreement. For both periods, license fees and royalties also included license fee amortization from the $12.0 million upfront fee paid to Depomed under our promotion agreement entered into in July 2008. The $12.0 million upfront fee has been capitalized and is being amortized to license fee expense over the estimated useful life of the asset on a straight-line basis through mid-2016. For the nine months ended September 30, 2008, license fees and royalties also included royalties due to Otsuka America under our co-promotion agreement based upon our net product sales. Following the termination of our co-promotion agreement effective as of June 30, 2008, we are no longer obligated to pay royalties to Otsuka America.
As of September 30, 2009, cash, cash equivalents and short-term investments were $61.8 million, compared to $52.0 million as of December 31, 2008, an increase of $9.8 million. This net increase resulted from our net income for the nine months ended September 30, 2009, adjusted for non-cash charges and changes in operating assets and liabilities. Additionally, in the nine months ended September 30, 2009, we reclassified the fair value of our auction rate securities, or ARS, and auction rate securities rights, or ARS Rights, from long-term to short-term investments reflecting our intent to exercise the ARS Rights in the next 12 months. The ARS Rights permit us to require our investment provider to purchase our ARS at par value at any time during the period June 30, 2010 through July 2, 2012. The total fair value of our ARS and ARS Rights as of September 30, 2009 was approximately $4.0 million.
Net cash provided by operating activities was $5.3 million for the nine months ended September 30, 2009, and net cash used in operating activities was $13.7 million for the nine months ended September 30, 2008. The primary source of cash for the nine months ended September 30, 2009 resulted from our net income for the period adjusted for non-cash expenses, including $1.6 million in depreciation and amortization and $3.5 million in stock-based compensation, and changes in operating assets and liabilities. The primary use of cash for the nine months ended September 30, 2008 resulted from our net loss for the period adjusted for non-cash expenses, including $3.2 million in stock-based compensation, and changes in operating assets and liabilities. Significant working capital uses of cash for the nine months ended September 30, 2009 included decreases in deferred revenue and increases in accounts receivable, offset in part by increases in the allowance for product returns and accounts payable and accrued liabilities. Significant working capital uses of cash for the nine months ended September 30, 2008 included decreases in deferred revenue and increases in accounts receivable, offset in part by an increase in the allowance for product returns and increases in accounts payable and accrued liabilities primarily driven by an increase in accrued rebates.
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