HAYWARD, Calif.--(BUSINESS WIRE)--Aug. 4, 2009--
Impax Laboratories, Inc. (NASDAQ: IPXL) today reported
solid net income of $3.0 million, or $0.05 per diluted share for the
second quarter 2009. The year ago period net income was higher primarily
due to the inclusion of $34.5 million in Rx Partner revenue resulting
from the licensed sales of generic OxyContin® pursuant to a litigation
settlement agreement in 2008 for which there was no comparable amount in
2009. Excluding the second quarter 2008 sales of generic OxyContin®, net
income increased $5.3 million to $3.0 million versus a loss of $2.3
million in the prior year period.
Total revenues for the second quarter 2009 were also solid at $58.4
million and income from operations was $4.0 million. Total revenues for
the second quarter 2008 were $78.7 million and income from operations
was $30.8 million, which included the $34.5 million in Rx Partner
revenue and $34.2 million of gross profit resulting from the licensed
sales of generic OxyContin® in the prior year period for which there was
no comparable amount in 2009. Excluding the second quarter 2008 sales of
generic OxyContin®, total revenue increased $14.2 million (up 32%) and
income from operations increased $7.4 million (up 218%) in the second
quarter 2009.
Larry Hsu, Ph.D., president and chief executive officer of Impax
Laboratories, said: “We continue to be pleased with the strong
year-to-date growth in our base generic business. Achieving this growth
without any significant new product launches in the first half of 2009
is a reflection of our ability to capitalize on existing product
opportunities. We are optimistic about our second half of 2009 with
several product launches including generic versions of Adderall XR®.”
Dr. Hsu continued, “Looking forward, we continue to see positive
developments from our significant generic and brand R&D investments. We
are on track to achieve our 2009 ANDA submission goal of 8 to 10 new
applications, including 2 to 3 of these being first-to-file or
first-to-market opportunities. As of today, we have 3 new ANDAs accepted
for filing at the FDA. We are also pleased with the continued
development of both of our leading brand product candidates.”
Second Quarter 2009 Segment Information
The Company has two reportable segments, the Global Pharmaceuticals
Division (generic products) and the Impax Pharmaceuticals Division
(brand products).
Global Pharmaceuticals Division Information
|
(unaudited, amounts in thousands)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
Revenues:
|
|
|
|
(as adjusted)
|
|
|
|
(as adjusted)
|
|
Global product sales, net
|
|
$37,387
|
|
$25,986
|
|
$76,508
|
|
$48,965
|
|
Private Label
|
|
2,220
|
|
639
|
|
3,517
|
|
1,117
|
|
Rx Partner (a)
|
|
11,119
|
|
43,870
|
|
21,855
|
|
62,675
|
|
OTC Partner
|
|
1,628
|
|
4,932
|
|
3,486
|
|
9,341
|
|
Research Partner
|
|
2,833
|
|
-
|
|
5,444
|
|
-
|
|
Other
|
|
5
|
|
7
|
|
11
|
|
14
|
|
Total Revenues
|
|
55,192
|
|
75,434
|
|
110,821
|
|
122,112
|
|
Cost of revenues
|
|
24,007
|
|
18,340
|
|
47,240
|
|
38,750
|
|
Gross profit (b)
|
|
31,185
|
|
57,094
|
|
63,581
|
|
83,362
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
9,578
|
|
10,395
|
|
19,853
|
|
19,491
|
|
Patent litigation
|
|
1,394
|
|
1,250
|
|
2,411
|
|
2,951
|
|
Selling, general and administrative
|
|
2,473
|
|
2,614
|
|
5,067
|
|
4,919
|
|
Total operating expenses
|
|
13,445
|
|
14,259
|
|
27,331
|
|
27,361
|
|
Income from operations (b)
|
|
$17,740
|
|
$42,835
|
|
$36,250
|
|
$56,001
|
|
(a)
|
|
Rx Partner revenue for the three and six months ended June 30, 2008
includes $34.5 and $40.8 million, respectively, from the completion
of licensed sales of generic OxyContin® pursuant to a litigation
settlement agreement in 2008 for which there was no comparable
amount in 2009.
|
|
(b)
|
|
Gross profit and income from operations for the three and six months
ended June 30, 2008 includes $34.2 and $38.7 million, respectively,
from the sales of generic OxyContin® as noted above.
|
Global Pharmaceuticals Division revenues in the second quarter 2009 were
$55.2 million. This represents a decrease from the year ago period due
primarily to a reduction in Rx Partner sales as noted above, partially
offset by a strong increase in net Global product sales.
Net Global product sales increased 44% to $37.4 million, a strong
increase of $11.4 million over the same period in 2008 primarily due to
sales of fenofibrate products. Private label product sales increased
247% to $2.2 million primarily due to sales of generic
loratadine/pseudoephedrine, the generic version of Claritin® D 24-hour,
as a result of a new supply agreement. Rx Partner revenues were $11.1
million, down 75%, primarily attributable to the loss of revenue related
to the cessation of sales of generic OxyContin® ($34.5 million in the
second quarter 2008) and reduced sales of generic Wellbutrin® XL 300mg.
OTC Partner revenues decreased 67% to $1.6 million, primarily
attributable to the expiration of the Company’s obligation to supply
Schering-Plough with product effective December 31, 2008. Research
Partner revenues were $2.8 million resulting from a Joint Development
Agreement entered into during the fourth quarter of 2008.
Cost of revenues was $24.0 million for the second quarter 2009, an
increase of 31% primarily related to the higher sales of Global products.
Gross profit for the second quarter 2009 was $31.2 million or
approximately 57% of total revenues. Gross profit for the second quarter
2008 was $58.0 million or approximately 74% of total revenues, which
included $34.2 million in OxyContin® gross profit for which there was no
comparable amount in 2009, as well as lower manufacturing efficiencies,
and an increase in inventory carrying-value reserves, offset by an
increase in our generic product line margins.
Total research and development expenses for the second quarter 2009
decreased $0.8 million to $9.6 million, compared to the prior year
period primarily due to lower spending on patent expenses and active
pharmaceutical ingredient used in research activities, partially offset
by additional research personnel.
Generic division income from operations in the second quarter of 2009
was a strong $17.7 million. This represents a decline of $25.1 million
due to the loss of $34.2 million of income from operations resulting
from prior period sales of generic OxyContin® for which there was no
comparable amount in 2009. Excluding the impact of the second quarter
2008 sales and income from operations of generic OxyContin®, Global
Division revenue increased $14.2 million (up 35%) and income from
operations increased $9.1 million (up 105%).
Impax Pharmaceuticals Division Information
|
(unaudited, amounts in thousands)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
|
(as adjusted)
|
|
|
|
(as adjusted)
|
|
Promotional Partner
|
|
$3,224
|
|
|
$3,238
|
|
|
$6,508
|
|
|
$6,490
|
|
|
Cost of revenues
|
|
3,277
|
|
|
2,364
|
|
|
6,294
|
|
|
5,332
|
|
|
Gross profit
|
|
(53
|
)
|
|
874
|
|
|
214
|
|
|
1,158
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
6,134
|
|
|
3,384
|
|
|
11,649
|
|
|
7,595
|
|
|
Selling, general and administrative
|
|
727
|
|
|
866
|
|
|
1,767
|
|
|
1,341
|
|
|
Total operating expenses
|
|
6,861
|
|
|
4,250
|
|
|
13,416
|
|
|
8,936
|
|
|
Loss from operations
|
|
($6,914
|
)
|
|
($3,376
|
)
|
|
($13,202
|
)
|
|
($7,778
|
)
|
Promotional Partner revenues of $3.2 million in the second quarter 2009,
derived from the co-promotion of Carbatrol®, a product of Shire Plc,
were down slightly versus the same period in 2008.
Cost of revenues for the second quarter 2009 increased 39% or $0.9
million due to credits in the prior year period resulting from incentive
compensation which was not earned. As a result of this increase, gross
profit decreased 106% to a loss of $0.1 million.
The Company is currently investing in research and development to
develop brand products which provide longer product life cycles and the
potential for significantly higher profit margins than generic products.
In the second quarter 2009, R&D increased a planned $2.8 million to $6.1
million, due to increasing spending on clinical studies, additional
research personnel, supplies and outside consultants.
The Company’s planned increase in investment in R&D during the second
quarter 2009 resulted in a brand division loss of $6.9 million in income
from operations.
Other Operating Expenses
Corporate general and administrative expenses for the second quarter
2009 were $6.8 million, a 21% decrease attributable principally to a
decrease in professional fees related to the examination and review of
the Company’s financial statements in conjunction with the financial
statements for the years 2004 through 2007 and the resulting filing with
the SEC of the Company’s Registration Statement on Form 10, and lower
management consulting fees.
Interest income in the second quarter 2009 declined $0.7 million to $0.3
million, compared to the prior year period. The decline was due to lower
average interest income rate combined with lower overall average cash
and short-term investment balances during the second quarter 2009. The
lower cash and short-term balance resulted from the use of funds to
repurchase at a discount at the request of the holders, approximately
$62.25 million face value of the Company’s 3.5% Debentures in August
2008 and September of 2008, along with the $5.1 million
repayment-in-full in May 2008 of two bank term loans, and the payment of
$12.75 million of the remaining 3.5% Debentures in June 2009, at the
request of the holders.
Interest expense in the second quarter 2009 declined $1.5 million to
$0.3 million, compared to the prior year period due to reduced amounts
of average debt outstanding as a result of the August 2008 and September
2008 repurchase of 3.5% Debentures and repayment-in-full of the bank
term loans noted above.
The effective tax rate for the second quarter 2009 was 26%, lower than
the effective tax rate of 43% for the prior year period, resulting
principally from the reversal of a valuation allowance on deferred tax
assets related to net operating losses at our wholly owned subsidiary
Impax Laboratories (Taiwan), Inc., and a higher research and development
credit related to increased levels of qualified research expenditures in
both generic and brand research and development activities.
Cash and short-term investments, net of interest-bearing debt, was $96.3
million as of June 30, 2009, as compared to $99.6 million as of December
31, 2008. As of June 30, 2009, cash and short-term investments, net of
interest-bearing debt, increased $18.0 million from March 31, 2009. The
slight change in cash and short-term investments, net from year-end
2008, included the Company’s June 15, 2009 repayment, at the option of
the holders, of the $12.75 million remaining outstanding balance of the
Company’s 3.5% Debentures, offset by changes in working capital assets
and liabilities, including the collection of accounts receivable
balances and payments of accounts payable during the six months ended
June 30, 2009.
As reported on the Company’s (unaudited) interim consolidated statement
of cash flows for the six months ended June 30, 2009, cash flow from
operating activities was approximately a positive $1.1 million before
changes in certain working capital assets and liabilities.
2009 Financial Outlook
The Company previously disclosed its 2009 financial outlook for the year
ending December 31, 2009, on February 26, 2009. For the full year 2009,
the Company continues to forecast:
-
Its third consecutive year of positive cash flows from operating
activities before changes in working capital assets and liabilities.
-
Gross margins as a percent of total revenues to approximate 50%.
-
Total research and development expenses across the generic and brand
divisions to approximate $64 million with $40 million and $24 million
allocated to generic and brand R&D, respectively.
-
Patent litigation expenses of approximately $10 million.
-
Selling, general and administrative expenses of approximately $39
million.
Conference Call Information
The Company will host a conference call today at 11:00 a.m. EDT to
discuss its results. The number to call from within the United States is
(877) 356-3814 and (706) 758-0033 internationally. The call can also be
accessed via a live Webcast through the Investor Relations section of
the Company’s Web site, www.impaxlabs.com.
A replay of the conference call will be available for seven days shortly
after the call. To access the replay, dial (800) 642-1687 (in the U.S.)
and (706) 645-9291 (international callers). The access conference code
is 20084313.
About Impax Laboratories, Inc.
Impax Laboratories, Inc. is a technology-based specialty pharmaceutical
company applying its formulation expertise and drug delivery technology
to the development of controlled-release and specialty generics in
addition to the development of branded products. Impax markets its
generic products through its Global Pharmaceuticals division and markets
its branded products through the Impax Pharmaceuticals division.
Additionally, where strategically appropriate, Impax has developed
marketing partnerships to fully leverage its technology platform. Impax
is headquartered in Hayward, California, and has a full range of
capabilities in its Hayward and Philadelphia facilities. For more
information, please visit the Company's Web site at: www.impaxlabs.com.
"Safe Harbor" statement under the Private Securities Litigation
Reform Act of 1995:
To the extent any statements made in this news release contain
information that is not historical, these statements are forward-looking
in nature and express the beliefs and expectations of management. Such
statements are based on current expectations and involve a number of
known and unknown risks and uncertainties that could cause the Company’s
future results, performance or achievements to differ significantly from
the results, performance or achievements expressed or implied by such
forward-looking statements. Such risks and uncertainties include, but
are not limited to; ability to timely file periodic reports required by
the Exchange Act; ability to maintain an effective system of internal
control over financial reporting; ability to sustain profitability and
positive cash flows; ability to maintain sufficient capital to fund
operations; any delays or unanticipated expenses in connection with the
construction of our Taiwan facility; ability to successfully develop and
commercialize pharmaceutical products; the uncertainty of patent
litigation; consumer acceptance and demand for new pharmaceutical
products; the impact of competitive products and pricing; the difficulty
of predicting Food and Drug Administration filings and approvals;
inexperience in conducting clinical trials and submitting new drug
applications; reliance on key alliance agreements; the availability of
raw materials; the regulatory environment; exposure to product liability
claims; fluctuations in operating results and other risks described in
our Annual Report on Form 10-K for the year ended December 31, 2008.
Forward-looking statements speak only as to the date on which they are
made, and Impax undertakes no obligation to update publicly or revise
any forward-looking statement, regardless of whether new information
becomes available, future developments occur or otherwise.
|
Impax Laboratories, Inc.
|
|
Consolidated Statements of Operations
|
|
|
|
|
|
|
(amounts in thousands, except share and per share data)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
Revenues:
|
|
|
|
(as adjusted)
|
|
|
|
(as adjusted)
|
|
Global Pharmaceuticals Division (a)
|
|
$55,192
|
|
|
$75,434
|
|
|
$110,821
|
|
|
$122,112
|
|
|
Impax Pharmaceuticals Division
|
|
3,224
|
|
|
3,238
|
|
|
6,508
|
|
|
6,490
|
|
|
Total Revenues
|
|
58,416
|
|
|
78,672
|
|
|
117,329
|
|
|
128,602
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
27,284
|
|
|
20,704
|
|
|
53,534
|
|
|
44,082
|
|
|
Gross profit (b)
|
|
31,132
|
|
|
57,968
|
|
|
63,795
|
|
|
84,520
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
15,712
|
|
|
13,779
|
|
|
31,502
|
|
|
27,086
|
|
|
Patent litigation
|
|
1,394
|
|
|
1,250
|
|
|
2,411
|
|
|
2,951
|
|
|
Selling, general and administrative
|
|
10,039
|
|
|
12,112
|
|
|
21,760
|
|
|
22,505
|
|
|
Total operating expenses
|
|
27,145
|
|
|
27,141
|
|
|
55,673
|
|
|
52,542
|
|
|
Income from operations
|
|
3,987
|
|
|
30,827
|
|
|
8,122
|
|
|
31,978
|
|
|
Change in fair value of common stock purchase warrants
|
|
-
|
|
|
15
|
|
|
-
|
|
|
59
|
|
|
Other income (expense), net
|
|
18
|
|
|
(20
|
)
|
|
83
|
|
|
40
|
|
|
Interest income
|
|
307
|
|
|
1,022
|
|
|
456
|
|
|
2,559
|
|
|
Interest expense
|
|
(256
|
)
|
|
(1,712
|
)
|
|
(550
|
)
|
|
(3,477
|
)
|
|
Income before income taxes
|
|
4,056
|
|
|
30,132
|
|
|
8,111
|
|
|
31,159
|
|
|
Provision for income taxes
|
|
1,043
|
|
|
13,044
|
|
|
2,879
|
|
|
13,611
|
|
|
Net Income (c)
|
|
$3,013
|
|
|
$17,088
|
|
|
$5,232
|
|
|
$17,548
|
|
|
|
|
|
|
|
|
|
|
|
Net Income per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$0.05
|
|
|
$0.29
|
|
|
$0.09
|
|
|
$0.30
|
|
|
Diluted
|
|
$0.05
|
|
|
$0.28
|
|
|
$0.09
|
|
|
$0.29
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
60,112,308
|
|
|
58,978,703
|
|
|
59,912,829
|
|
|
58,906,341
|
|
|
Diluted
|
|
60,552,344
|
|
|
60,584,709
|
|
|
60,384,179
|
|
|
60,870,589
|
|
|
(a)
|
|
Global Pharmaceuticals Division revenue for the three and six months
ended June 30, 2008 includes $34.5 and $40.8 million, respectively,
from the completion of licensed sales of generic OxyContin® pursuant
to a litigation settlement agreement in 2008 for which there was no
comparable amount in 2009.
|
|
(b)
|
|
Gross profit for the three and six months ended June 30, 2008
includes $34.2 and $38.7 million, respectively, from the sales of
generic OxyContin® as noted above.
|
|
(c)
|
|
Net income from operations for the three and six months ended June
30, 2008 includes $19.4 and $21.8 million, respectively, from the
sales of generic OxyContin® as noted above.
|
|
Impax Laboratories, Inc.
|
|
Condensed Consolidated Balance Sheets
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
2009
|
|
2008
|
|
|
(unaudited)
|
|
(as adjusted)
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$42,198
|
|
$69,275
|
|
Short-term investments
|
|
61,072
|
|
50,710
|
|
Accounts receivable, net
|
|
53,530
|
|
43,306
|
|
Inventory, net
|
|
33,008
|
|
32,305
|
|
Current portion of deferred product manufacturing costs-alliance
agreements
|
|
14,474
|
|
13,578
|
|
Current portion of deferred income taxes
|
|
25,943
|
|
17,900
|
|
Prepaid expenses and other current assets
|
|
3,059
|
|
9,298
|
|
Total current assets
|
|
233,284
|
|
236,372
|
|
Property, plant and equipment, net
|
|
95,844
|
|
95,629
|
|
Deferred product manufacturing costs-alliance agreements
|
|
94,321
|
|
93,144
|
|
Deferred income taxes, net
|
|
51,480
|
|
52,551
|
|
Other assets
|
|
13,502
|
|
9,017
|
|
Goodwill
|
|
27,574
|
|
27,574
|
|
Total assets
|
|
$516,005
|
|
$514,287
|
|
|
|
|
|
|
Liabilities and Stockholders Equity
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Current portion of long-term debt, net
|
|
$1,887
|
|
$14,416
|
|
Accounts payable
|
|
14,180
|
|
12,797
|
|
Accrued expenses
|
|
44,503
|
|
41,360
|
|
Current portion of deferred revenue-alliance agreements
|
|
37,966
|
|
35,015
|
|
Current portion of accrued exclusivity period fee payments due
|
|
-
|
|
6,000
|
|
Total current liabilities
|
|
98,536
|
|
109,588
|
|
Long-term debt
|
|
5,065
|
|
5,990
|
|
Deferred revenue-alliance agreements
|
|
225,959
|
|
225,804
|
|
Other liabilities
|
|
15,180
|
|
13,255
|
|
Total liabilities
|
|
344,740
|
|
354,637
|
|
Stockholders equity
|
|
171,265
|
|
159,650
|
|
Total liabilities and stockholders equity
|
|
$516,005
|
|
$514,287
|
|
Impax Laboratories, Inc.
|
|
Consolidated Statement of Cash Flows
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
2009
|
|
2008
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Cash flows from operating activities:
|
|
|
|
(as adjusted)
|
|
Net income
|
|
$5,232
|
|
|
$17,548
|
|
|
Adjustments to reconcile net income to net cash used in operating
activities:
|
|
|
|
|
|
Depreciation
|
|
5,192
|
|
|
4,441
|
|
|
Amortization of 3.5% Debentures discount and deferred financing costs
|
|
301
|
|
|
1,486
|
|
|
Amortization of Wachovia Credit Agreement deferred financing costs
|
|
25
|
|
|
234
|
|
|
Bad debt expense
|
|
45
|
|
|
125
|
|
|
Deferred income taxes
|
|
(6,972
|
)
|
|
6,818
|
|
|
Provision for uncertain tax positions
|
|
463
|
|
|
-
|
|
|
Deferred revenue - Rx Partners
|
|
27,697
|
|
|
70,386
|
|
|
Deferred product manufacturing costs - Rx Partners
|
|
(14,755
|
)
|
|
(17,608
|
)
|
|
Deferred revenue recognized - Rx Partners
|
|
(21,855
|
)
|
|
(62,675
|
)
|
|
Amortization deferred product manufacturing costs - Rx Partners
|
|
10,765
|
|
|
12,139
|
|
|
Deferred revenue - OTC Partners
|
|
1,194
|
|
|
10,878
|
|
|
Deferred product manufacturing costs - OTC Partners
|
|
(1,202
|
)
|
|
(10,860
|
)
|
|
Deferred revenue recognized - OTC Partners
|
|
(3,486
|
)
|
|
(9,341
|
)
|
|
Amortization deferred product manufacturing costs - OTC Partners
|
|
3,119
|
|
|
8,938
|
|
|
Deferred revenue - Research Partners
|
|
5,000
|
|
|
-
|
|
|
Deferred revenue recognized - Research Partners
|
|
(5,444
|
)
|
|
-
|
|
|
Payments on exclusivity period fee
|
|
(6,000
|
)
|
|
(6,000
|
)
|
|
Payments on accrued litigation settlements
|
|
(1,098
|
)
|
|
(1,098
|
)
|
|
Share-based compensation expense
|
|
3,193
|
|
|
3,080
|
|
|
Accretion of interest income on short-term investments
|
|
(277
|
)
|
|
(1,749
|
)
|
|
Change in fair value of stock purchase warrants
|
|
-
|
|
|
(59
|
)
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
(10,269
|
)
|
|
7,365
|
|
|
Inventory
|
|
(703
|
)
|
|
(1,866
|
)
|
|
Prepaid expenses and other assets
|
|
1,899
|
|
|
(581
|
)
|
|
Accounts payable and accrued expenses
|
|
4,440
|
|
|
(5,218
|
)
|
|
Other liabilities
|
|
1,437
|
|
|
1,039
|
|
|
Net cash (used in) provided by operating activities
|
|
($2,059
|
)
|
|
$27,422
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Purchase of short-term investments
|
|
($41,772
|
)
|
|
($162,693
|
)
|
|
Maturities of short-term investments
|
|
31,687
|
|
|
165,418
|
|
|
Purchases of property, plant and equipment
|
|
(5,367
|
)
|
|
(12,776
|
)
|
|
Net cash used in investing activities
|
|
($15,452
|
)
|
|
($10,051
|
)
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Repayment of long-term debt
|
|
($12,823
|
)
|
|
($5,244
|
)
|
|
Proceeds from exercise of stock options and purchases under the ESPP
|
|
3,257
|
|
|
155
|
|
|
Net cash provided by financing activities
|
|
($9,566
|
)
|
|
($5,089
|
)
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
($27,077
|
)
|
|
$12,282
|
|
|
Cash and cash equivalents, beginning of period
|
|
$69,275
|
|
|
$37,462
|
|
|
Cash and cash equivalents, end of period
|
|
$42,198
|
|
|
$49,744
|
|
|
Impax Laboratories, Inc.
|
|
Presentation of Deferred Revenue and Deferred Product
Manufacturing Cost Data
|
|
|
|
The following table summarizes the additions to and deductions
from the deferred revenue-alliance agreements and deferred product
manufacturing costs under the Company’s Teva, DAVA, OTC, Medicis
and Putney, Inc. alliance agreements. This information is used to
explain the changes in the respective balance sheet accounts of
deferred revenue-alliance agreements and deferred product
manufacturing costs-alliance agreements. The table sets forth the
amount of revenue deferred in each period as well as the amount
recognized in the period under the Company’s modified proportional
performance method of revenue recognition for revenue earned under
the Teva, DAVA, and OTC alliance agreements and straight line
revenue recognition for the Medicis alliance agreement. The
summarized information for the six months ended June 30, 2009 is
derived from the corresponding tables for each of these separate
alliance agreements set forth in the Alliance Agreement footnote
to the Company’s unaudited interim consolidated financial
statements for the six months ended June 30, 2009.
|
|
|
|
|
|
|
|
Six Months
|
|
Inception
|
|
|
Ended
|
|
Through
|
|
|
June 30, 2009
|
|
December 31, 2008
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Deferred revenue:
|
|
|
|
|
|
Beginning balance
|
|
$260,819
|
|
|
$ ---
|
|
|
Deferrals
|
|
33,891
|
|
|
638,342
|
|
|
Less amounts recognized
|
|
(30,785
|
)
|
|
(377,523
|
)
|
|
Ending deferred revenue
|
|
$263,925
|
|
|
$260,819
|
|
|
|
|
|
|
|
Deferred product manufacturing costs:
|
|
|
|
|
|
Beginning balance
|
|
$106,722
|
|
|
$ ---
|
|
|
Deferrals
|
|
15,957
|
|
|
256,461
|
|
|
Less amounts amortized
|
|
(13,884
|
)
|
|
(149,739
|
)
|
|
Ending deferred product manufacturing costs
|
|
$108,795
|
|
|
$106,722
|
|
Note to the Financial Table Information Contained in this June 30,
2009 Earnings Release
As required, Financial Accounting Standards Board Staff Position APB
14-1, “Accounting for Convertible Debt Instruments That May Be Settled
in Cash upon Conversion (Including Partial Cash Settlement)” was applied
on a retrospective basis, beginning with the year ended December 31,
2007. The 2008 financial results reported in the tables within this
press release are “as adjusted”.
Source: Impax Laboratories, Inc.
Impax Laboratories, Inc.
Mark
Donohue, 215-933-3526
Sr. Director, Investor Relations
www.impaxlabs.com