Cornerstone Therapeutics Reports Third Quarter 2012 Financial Results
Cornerstone Therapeutics Inc. (NASDAQ: CRTX)
• Net product sales increased 49% year over year
• Net income increased tenfold year over year
• Integration of EKR Therapeutics completed ahead of schedule
Cornerstone Therapeutics Inc. (NASDAQ: CRTX), a specialty pharmaceutical company focused on commercializing products for the hospital and related specialty markets, today announced results for the quarter ended September 30, 2012.
Total net revenues were $37.5 million for the third quarter of 2012 versus $25.2 million reported for the third quarter of 2011, an increase of 49%. Net sales from the ZYFLO® family of products and CUROSURF® amounted to $14.5 million and $10.0 million, respectively, up 74% and 7%, respectively, for the third quarter of 2012 versus the third quarter of 2011. CARDENE® I.V. net sales were $12.8 million for its first full quarter in 2012.
Net income for the third quarter of 2012 was $1.2 million, or $0.05 per diluted share, compared to net income of $117,000, or no earnings per diluted share, for the third quarter of 2011. On a non-GAAP basis, net income for the third quarter of 2012 was $5.6 million, or $0.19 per diluted share, an increase of 66% from non-GAAP income of $3.4 million, or $0.13 per diluted share, in the third quarter of 2011. Non-GAAP net income and net income per diluted share exclude stock-based compensation expense, amortization of product rights, amortization of debt financing costs, acquisition adjustments related to inventory sold, transaction-related expenses, the change in acquisition-related contingent payments, and the gain on the divestiture of certain product rights.
"We laid out a transformative strategic plan in June 2011, and I am pleased to say we've come a long way in reshaping Cornerstone as a specialty pharmaceutical player in the hospital and related specialty market," said Craig A. Collard, Chief Executive Officer of Cornerstone Therapeutics. "The integration of EKR Therapeutics was completed successfully and rapidly, well ahead of our plans, and we are on track to achieve in excess of $8 million in synergies during the second half of 2012. We plan to use our positive momentum to seek out additional acquisition opportunities to fuel our growth."
As part of the acquisition of EKR Therapeutics, Inc., Cornerstone acquired full product rights to CARDENE I.V. and RETAVASE®. Cornerstone began to actively market CARDENE I.V. at the end of the second quarter and the third quarter of 2012 marked the first full quarter of results.
A breakdown of net revenues by product for the three and nine months ended September 30, 2012 (in thousands, except percentages) follows:
About Cornerstone Therapeutics
Cornerstone Therapeutics Inc. (NASDAQ: CRTX), headquartered in Cary, N.C., is a specialty pharmaceutical company focused on commercializing products for the hospital and related specialty markets. Key elements of the Company's strategy are to focus its commercial and internal development efforts in the hospital and related specialty product sector within the U.S. pharmaceutical marketplace; continue to seek out opportunities to acquire companies, marketed and/or registration-stage products, and late-stage development products that fit within the Company's focus areas; and generate revenues by marketing approved generic products through the Company's wholly-owned subsidiary, Aristos Pharmaceuticals, Inc.