Cipher Pharmaceuticals (OTCBB:CPHMF; TSX:DND) has reported net income of $3.1-million or 13 cents a share on revenue of $5.5-million for the second quarter, compared with $200,000 or 1 cent on revenue of $1.6-million a year earlier.
“The continued strong growth of Absorica drove significant gains in our revenue, earnings and cash for the second quarter,” Larry Andrews, president and CEO, said in a statement. “The product was up to 13.1% share of the U.S. isotretinoin market by June, from 7.5% at the end of the first quarter, and the feedback from our marketing partner Ranbaxy has been very positive.”
Cipher launched the product in Canada in late June with its own sales force and is pursuing out-licensing agreements in other markets. “We are also looking at opportunities to expand our product portfolio,” he added.
Absorica contributed $4.2-million to revenue in the second quarter this year, up from $300,000 in the second quarter of 2012.
For the second half of 2013, Mr. Andrews said Cipher expects continued revenue growth from its currently marketed products and the recent introduction of Epuris in Canada. The company expects the full-year contribution of Absorica to be a primary revenue driver.
In 2013, he said Cipher will be investing in commercial sales and marketing capabilities in Canada. The company expects an increase in operating expenses of about $1-million to $1.5-million during the balance of 2013, compared to the same period in 2012, related to the launch of Epuris in Canada. However, he said Cipher expects its revenue growth to continue to offset the additional spending required to build its commercial infrastructure in Canada.
At June 30, 2013, Cipher had $17.8-million of cash, compared with $15.8-million at December 31, 2012.