Sunday, June 10, 2012

Biotech Stock on our Radar; DepoMed Highlight

DepoMed Inc. (NASDAQ: DEPO) shares gained nearly 4% this morning, fueled by momentum from the broader market and news announced earlier this week that Boehringer Ingelheim licensed the worldwide rights to the company�s Acuform� gastric retentive drug delivery technology to develop and commercialize some fixed dose combination products.

Carl A. Pelzel, president and CEO of DepoMed, said that the company is pleased to have closed its third licensing deal for its extended release metformin technology. Pelzel said that the upfront and future milestone payments will strengthen the company�s balance sheet.

Earlier this month, DepoMed announced its fourth-quarter and full-year financial results. The company reported total revenue of $20.9 million for the fourth quarter of 2010, up from $13.2 million reported in the same period in 2009. The year-over-year increase in revenue was mainly due to the recognition of the $2.5 million Merck milestone, an increase in Glumezta product sales and revenue related to the company�s collaborative arrangements with Janssen and Covidien.

For full year 2010, the company reported total revenue of $80.8 million, up from $57.7 million reported in 2009.

The company reported fourth-quarter net income of $1.7 million, or $0.03 per share, compared with a net loss of $3.6 million, or $0.07 per share reported in the same period in 2009. The company�s net income for the full year was $3.9 million, or $0.07 per share, compared with a net loss of $22 million reported in 2009.

DepoMed shares have a 52-week range of $8.51-$9. Year-to-date the stock gained 36.48%. In the last one year the stock gained 164.63%. It is currently trading above its 50-day and 200-day moving averages.

DepoMed is a Menlo Park, California-based specialty pharmaceutical company, focusing on the development and commercialization of differentiated products that are based on oral drug delivery technologies.

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