Depomed Q3 Financial Results (NASDAQ:DEPO)
Depomed, Inc (NASDAQ:DEPO) today reported financial results for the third quarter that ended on September 30, 2009. The revenue for the three months ended September 30, 2009 was US$23 million compared to US$14.1 million for the three months ended September 30, 2008. The revenue in the last three months ended this September also includes license payments from Merck &Co. Inc. as Depomed has entered a license agreement with Merck for fixed dose combinations of sitagliptin and extended release metformin which they finalized in July 2009.
Executives of Depomed announced that they have achieved significant milestones in the third and early fourth quarter and have also completed a transaction with Merck that has provided them a reason to rejoice and have a stronger and profitable balance sheet this quarter. Depomed is a specialty pharmaceutical company which has many product candidates in the pipeline with few of products already in Phase 3 trials. Depomed’s GLUMETZA (metformin hydrochloride extended release tablets) has already been approved for use in adults with Type 2 diabetes and the prescriptions for GLUMETZA have reached all time high and additionally they have received positive results with their Phase 3 postherpetic neuralgia study with DM-1796.
Cash equivalents and marketable securities were US$88.6 million as of September 30, 2009 compared to US$82.1 million as of December 31, 2008. Depomed’s stock-based compensation expense was US$0.8 million for the three months ended September 30, 2009 as compared to US$0.7 million for the three months ended September 30, 2008. The overall net income for the three months ended September 30, 2009 was US$1.4 million, or US$0.03 per share, compared to a net loss of US$0.3 million, or US$0.01 per share, for the three months ended September 30, 2008.
