Depomed Inc. (DEPO) filed Quarterly Report for the period ended 2010-03-31.
Depomed Inc. has a market cap of $208.8 million; its shares were traded at around $3.99 with and P/S ratio of 3.6.
This is the annual revenues and earnings per share of DEPO over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of DEPO.
Highlight of Business Operations:
· Revenue for the three months ended March 31, 2010 was $15.4 million, compared to $9.9 million for the three months ended March 31, 2009.
· Operating expenses for the three months ended March 31, 2010 were $17.6 million, compared to $19.0 million for the three months ended March 31, 2009.
· Cash, cash equivalents and marketable securities were $71.5 million as of March 31, 2010, compared to $81.8 million as of December 31, 2009.
Pursuant to the agreement, Solvay Pharmaceuticals paid us a $25 million upfront fee in February 2009. We are also eligible to receive aggregate milestone payments of up to $70 million for acceptance and FDA approval of the New Drug Application for DM-1796 for PHN, and up to $300 million in potential sales milestone payments. Abbott Products will pay us royalties of 14 to 20 percent of net product sales, depending on the level of net product sales.
DM-1796. DM-1796 license revenue for the three months ended March 31, 2010 and 2009 relates to the $25.0 million upfront payment received from Solvay, now Abbott Products, under our license agreement granting Abbott Products exclusive rights to develop and commercialize DM-1796 in the United States, Canada and Mexico for pain indications. We are recognizing the $25.0 million upfront payment received from Solvay as revenue ratably until January 2013, which represents the expected maximum length of time our development and supply obligations exist under the agreement.
Acuform Technology. In November 2008, we entered into a license agreement with Covidien granting Covidien worldwide rights to utilize our Acuform technology for the exclusive development of four products containing acetaminophen in combination with opiates. Through November 2008, Covidien paid us a total of $5.5 million in upfront fees, representing a $4.0 million upfront license fee and a $1.5 million upfront payment for formulation work to be performed by Depomed under the agreement. The entire $5.5 million is being accounted for as a single unit of accounting and being amortized ratably through November 2011, which is the length of time Depomed is obligated to perform formulation work under the agreement.