First quarter net income for Cipher Pharmaceuticals (OTCBB:CPHMF; TSX:DND) was $1.5-million or 6 cents a share on revenue of $3.3-million, compared with a profit of $125,000 or 1 cent on revenue of $1.8-million a year ago.
“We delivered record financial performance in the first quarter, reflecting the addition of new product revenue streams, especially the strong early results from Absorica,” Larry Andrews, president and CEO, said in a statement.
“Building off this good start to the year, we are working toward the Canadian launch of Epuris by the third quarter and have recently added experienced marketing and sales leadership to help us build our commercial presence in Canada,” he added.
In addition, Cipher recently licensed out the Latin American rights for its extended-release tramadol product to Tecnofarma International, a leader in pain therapeutics, with a large sales team in the region.
The company’s cash position increased at the end of the quarter to $16.5-million from $15.8-million at Dec. 31, 2012.
For the balance of 2013, Cipher expects continued revenue growth from its currently marketed products and the introduction of Epuris in Canada, with a full-year contribution of Absorica to be a primary revenue driver.
In 2013, Cipher said it will be investing in its commercial sales and marketing capabilities in Canada. The company expects an increase in operating expenses of $2-million to $2.5-million during the balance of 2013 related to the launch of Epuris in Canada and to support other growth initiatives. In addition to one-time launch costs associated with marketing promotion and market access for Epuris, it plans to deploy a six-to-eight person field sales force in the second half of 2013.
The company also noted that it expects revenue growth in 2013 to offset additional spending required to build its commercial infrastructure in Canada.