Auxilium Pharmaceuticals Inc. (AUXL, Financial) filed Quarterly Report for the period ended 2009-09-30.
Auxilium Pharmaceuticals Inc. is a specialty pharmaceutical company that develops and markets products for urology and sexual health. Auxilium markets Testim 1% a topical testosterone gel for the treatment of hypogonadism. Auxilium is developing additional Testim line extensions as well as other products for urology and sexual health including an enzyme in Phase II for the treatment of Peyronie's Disease that may also prove useful for the treatment of Dupuytren's Disease. Auxilium Pharmaceuticals Inc. has a market cap of $1.45 billion; its shares were traded at around $31.75 with and P/S ratio of 11.6.
period, which was partially offset by increased utilization of coupons that are provided to new patients. Net revenues for the third quarter of 2009 and 2008 include $0.2 million of international product shipments of Testim and $0.9 million and $0.3 million, respectively, of revenues related to Testim up-front and milestone payments. Net revenues for the third quarter of 2009 also include $0.9 million of amortization of the deferred revenue resulting from our collaboration agreement with Pfizer, Inc. (Pfizer) (the Pfizer Agreement). Total product sales allowances for the third quarter of 2009 and 2008 amounted to 23.9% and 20.0%, respectively, of total sales of Testim in the U.S. The increase in this percentage for the 2009 period over the comparable period in 2008 results primarily from increases in coupon usage for new patients and from an increase in accrued rebates and allowances resulting from a change in estimate in the third quarter of 2009.
Net revenues. Net revenues increased $25.4 million, or 28.0%, to $116.0 million for the nine months ended September 30, 2009 from $90.6 million for the comparable 2008 period. Sales of Testim in the U.S. for the first nine months of 2009 were $109.7 million, a 22.7% increase over the $89.4 million recognized in the comparable period of 2008. This increase in revenues for the first nine months of 2009 compared to the comparable 2008 period resulted primarily from growth in Testim demand resulting from increased prescriptions and increases in pricing, net of discounts, rebates and coupons. According to NPA data from IMS, Testim total
prescriptions for the first nine months of 2009 grew 15.5% over the comparable period of 2008. We believe that Testim prescription growth in the 2009 period over the 2008 period was driven by the overall gel market growth, physician and patient acceptance that Testim provides better patient outcomes, the shift in prescriptions away from the testosterone patch product and the other gel product to Testim, and the continued focus of our sales force on the promotion of Testim to urologists, endocrinologists and select primary care physicians. Net revenues for the first nine months of 2009 benefited from price increases having a cumulative impact of 10% over the comparable 2008 period, which was partially offset by increased utilization of coupons that are provided to new patients. Net revenues for the nine months ended September 30, 2009 and 2008 include $1.1 million and $0.7 million, respectively, of international product shipments of Testim and $2.6 million and $0.5 million, respectively, of revenues related to Testim up-front and milestone payments. Net revenues for the first nine months of 2009 also include $2.7 million of amortization of the deferred revenue resulting from the Pfizer Agreement. Total product sales allowances for the first nine months of 2009 and 2008 amounted to 22.5% and 20.2%, respectively, of total sales of Testim in the U.S. The increase in this 2009 period over the comparable period in 2008 results primarily from an increase in coupon usage for new patients.
The financial covenants contained in the Revolving Line of Credit Agreement are a quarterly and cumulative profitability and loss restriction, and a minimum liquidity ratio (Minimum Quick Ratio), defined as the ratio of unrestricted cash and cash equivalents, plus net accounts receivable, divided by current liabilities plus, without duplication, all outstanding credit extensions owed to SVB, but excluding deferred revenue and deferred rent. We must not (x) exceed a quarterly maximum net loss of between $10 million and $30 million, depending on the quarter at issue, during the initial portion of the term of the agreement, (y) fall below a quarterly minimum net income of between $5 million and $10 million, depending on the quarter at issue, during the later portion of the term of the agreement, or (z) fail to maintain a monthly and quarterly Minimum Quick Ratio of between 0.80:1.00 and 1.25:1.00, depending on the month or quarter at issue. If such financial covenants are not maintained, SVB will have a number of remedies under the agreement including, but not limited to, restricting further borrowing, declaring all amounts outstanding due and payable, and exercising remedies with respect to the collateral. Further, when Net Liquidity, defined as unrestricted cash and cash equivalents at SVB less borrowings from SVB, is greater than $15.0 million there are no restrictions on the amount which may be borrowed under the credit facility. When Net Liquidity is less than $15.0 million, the amount which may be borrowed under the credit facility is limited to specified percentages of certain customer accounts receivables.
Cash used in operations was $31.9 million and $21.0 million for the nine months ended September 30, 2009 and 2008, respectively. Cash used in operations for the nine months ended September 30, 2009 resulted primarily from operating losses and the payment of costs accrued in 2008, including $6.4 million to BioSpecifics Technologies Corp. (BioSpecifics) for their share of the $75 million received under the Pfizer Agreement and approximately $3.0 million in transaction related costs associated with the Pfizer Agreement. Cash used in operations for the nine months ended September 30, 2008 resulted primarily from operating losses and included a $2.5 million increase in inventory which was primarily due to the Companys decision to increase the finished inventory level on hand and available for sale.
Read the The complete Report
Auxilium Pharmaceuticals Inc. is a specialty pharmaceutical company that develops and markets products for urology and sexual health. Auxilium markets Testim 1% a topical testosterone gel for the treatment of hypogonadism. Auxilium is developing additional Testim line extensions as well as other products for urology and sexual health including an enzyme in Phase II for the treatment of Peyronie's Disease that may also prove useful for the treatment of Dupuytren's Disease. Auxilium Pharmaceuticals Inc. has a market cap of $1.45 billion; its shares were traded at around $31.75 with and P/S ratio of 11.6.
Highlight of Business Operations:
Net revenues. Net revenues increased $9.6 million, or 29.3%, to $42.1 million for the quarter ended September 30, 2009 from $32.6 million for the comparable 2008 period. Sales of Testim in the U.S. for the third quarter of 2009 were $40.2 million, a 25.1% increase over the $32.1 million recognized in the third quarter of 2008. This increase in revenues resulted primarily from growth in Testim demand resulting from increased prescriptions and increases in pricing, net of discounts, rebates and coupons. According to National Prescription Audit (NPA) data from IMS Health (IMS), a pharmaceutical market research firm, Testim total prescriptions for the third quarter of 2009 grew 17.3% over the comparable period of 2008. We believe that Testim prescription growth in the 2009 period over the 2008 period was driven by the overall gel market growth, physician and patient acceptance that Testim provides better patient outcomes, the shift in prescriptions away from the testosterone patch product to Testim, and the continued focus of our sales force on the promotion of Testim to urologists, endocrinologists and select primary care physicians. Net revenues for the third quarter of 2009 benefited from price increases having a cumulative impact of 11% over the comparable 2008period, which was partially offset by increased utilization of coupons that are provided to new patients. Net revenues for the third quarter of 2009 and 2008 include $0.2 million of international product shipments of Testim and $0.9 million and $0.3 million, respectively, of revenues related to Testim up-front and milestone payments. Net revenues for the third quarter of 2009 also include $0.9 million of amortization of the deferred revenue resulting from our collaboration agreement with Pfizer, Inc. (Pfizer) (the Pfizer Agreement). Total product sales allowances for the third quarter of 2009 and 2008 amounted to 23.9% and 20.0%, respectively, of total sales of Testim in the U.S. The increase in this percentage for the 2009 period over the comparable period in 2008 results primarily from increases in coupon usage for new patients and from an increase in accrued rebates and allowances resulting from a change in estimate in the third quarter of 2009.
Net revenues. Net revenues increased $25.4 million, or 28.0%, to $116.0 million for the nine months ended September 30, 2009 from $90.6 million for the comparable 2008 period. Sales of Testim in the U.S. for the first nine months of 2009 were $109.7 million, a 22.7% increase over the $89.4 million recognized in the comparable period of 2008. This increase in revenues for the first nine months of 2009 compared to the comparable 2008 period resulted primarily from growth in Testim demand resulting from increased prescriptions and increases in pricing, net of discounts, rebates and coupons. According to NPA data from IMS, Testim total
prescriptions for the first nine months of 2009 grew 15.5% over the comparable period of 2008. We believe that Testim prescription growth in the 2009 period over the 2008 period was driven by the overall gel market growth, physician and patient acceptance that Testim provides better patient outcomes, the shift in prescriptions away from the testosterone patch product and the other gel product to Testim, and the continued focus of our sales force on the promotion of Testim to urologists, endocrinologists and select primary care physicians. Net revenues for the first nine months of 2009 benefited from price increases having a cumulative impact of 10% over the comparable 2008 period, which was partially offset by increased utilization of coupons that are provided to new patients. Net revenues for the nine months ended September 30, 2009 and 2008 include $1.1 million and $0.7 million, respectively, of international product shipments of Testim and $2.6 million and $0.5 million, respectively, of revenues related to Testim up-front and milestone payments. Net revenues for the first nine months of 2009 also include $2.7 million of amortization of the deferred revenue resulting from the Pfizer Agreement. Total product sales allowances for the first nine months of 2009 and 2008 amounted to 22.5% and 20.2%, respectively, of total sales of Testim in the U.S. The increase in this 2009 period over the comparable period in 2008 results primarily from an increase in coupon usage for new patients.
The financial covenants contained in the Revolving Line of Credit Agreement are a quarterly and cumulative profitability and loss restriction, and a minimum liquidity ratio (Minimum Quick Ratio), defined as the ratio of unrestricted cash and cash equivalents, plus net accounts receivable, divided by current liabilities plus, without duplication, all outstanding credit extensions owed to SVB, but excluding deferred revenue and deferred rent. We must not (x) exceed a quarterly maximum net loss of between $10 million and $30 million, depending on the quarter at issue, during the initial portion of the term of the agreement, (y) fall below a quarterly minimum net income of between $5 million and $10 million, depending on the quarter at issue, during the later portion of the term of the agreement, or (z) fail to maintain a monthly and quarterly Minimum Quick Ratio of between 0.80:1.00 and 1.25:1.00, depending on the month or quarter at issue. If such financial covenants are not maintained, SVB will have a number of remedies under the agreement including, but not limited to, restricting further borrowing, declaring all amounts outstanding due and payable, and exercising remedies with respect to the collateral. Further, when Net Liquidity, defined as unrestricted cash and cash equivalents at SVB less borrowings from SVB, is greater than $15.0 million there are no restrictions on the amount which may be borrowed under the credit facility. When Net Liquidity is less than $15.0 million, the amount which may be borrowed under the credit facility is limited to specified percentages of certain customer accounts receivables.
Cash used in operations was $31.9 million and $21.0 million for the nine months ended September 30, 2009 and 2008, respectively. Cash used in operations for the nine months ended September 30, 2009 resulted primarily from operating losses and the payment of costs accrued in 2008, including $6.4 million to BioSpecifics Technologies Corp. (BioSpecifics) for their share of the $75 million received under the Pfizer Agreement and approximately $3.0 million in transaction related costs associated with the Pfizer Agreement. Cash used in operations for the nine months ended September 30, 2008 resulted primarily from operating losses and included a $2.5 million increase in inventory which was primarily due to the Companys decision to increase the finished inventory level on hand and available for sale.
Read the The complete Report
