SYS-CON MEDIA Authors: PagerDuty Blog, Michael Jannery, Pat Romanski, Elizabeth White, Liz McMillan

News Feed Item

Auxilium Pharmaceuticals, Inc. Announces Second Quarter 2014 Financial Results

2Q 2014 Net Revenues of $83.0 Million Driven by Launches of XIAFLEX for Peyronie's Disease and STENDRA

CHESTERBROOK, Pa., Aug. 7, 2014 /PRNewswire/ -- Auxilium Pharmaceuticals, Inc. (NASDAQ: AUXL), a fully integrated specialty biopharmaceutical company, today announced financial results for the second quarter ending June 30, 2014. The Company highlighted important corporate, commercial, regulatory and clinical development updates from the quarter.

"Through the second quarter of this year, we are encouraged and pleased with the launches of XIAFLEX® for Peyronie's disease and STENDRA® for erectile dysfunction We believe these products offer patients important new treatment options and represent growth opportunities for Auxilium," said Adrian Adams, Chief Executive Officer and President of Auxilium. "Building on our corporate strategy, we believe our recently announced merger with QLT, Inc. represents a unique opportunity to accelerate the strategic transformation of Auxilium into a leading, diversified North American specialty biopharmaceutical company and, ultimately, build shareholder value."

After entering 2013 with only two products, Auxilium strategically broadened its portfolio to 12 products by the end of that year. The Company now has seven promoted products across men's healthcare and orthopedics, including STENDRA, XIAFLEX for Peyronie's disease (PD), XIAFLEX for Dupuytren's contracture (DC), TESTOPEL®, edex®, the Testim® franchise and Osbon® ErecAid®. The Company is advancing ongoing R&D programs in cellulite, with a Phase 2a trial ongoing and ahead of schedule with data expected in the fourth quarter of 2014, and Frozen Shoulder Syndrome, with a Phase 2b trial ongoing and on track for anticipated data in the first quarter of 2015.

Recent Highlights & Corporate Milestones:

  • Announcement of a definitive agreement pursuant to which Auxilium will merge with QLT Inc., a Canadian-based biotechnology company focused on developing innovative orphan ophthalmology products. The transaction is expected to drive shareholder value creation by accelerating Auxilium's ongoing transformation into a leading diversified North American specialty biopharmaceutical company. As a result of the merger, Auxilium expects to have an expanded corporate platform that includes focused investments in research and development and the continued pursuit of new products and M&A that will drive expected cost and tax synergies. The transaction is expected to close in the fourth quarter of this year, subject to the approval of Auxilium's stockholders and QLT's shareholders, the consent of Auxilium's lenders, Auxilium receiving a legal opinion from its tax counsel as to the tax treatment of the merger under U.S. law as in effect on October 31, 2014, required regulatory approvals in the U.S. and Canada, and other closing conditions that are customary for a transaction of this nature.
  • Strategic, proactive launch of an Authorized Generic version of Testim (testosterone gel) in partnership with Prasco, LLC to position the Testim product franchise to compete in the increasingly crowded and challenging Testosterone Replacement Therapy gel market. Auxilium believes the launch enables broader market access for the Testim franchise and builds upon strategic efforts to manage the product as a mature brand.
  • Progress for the commercial launches of STENDRA, the first drug entry into the erectile dysfunction market in nearly 10 years, and XIAFLEX in PD, the first and only FDA-approved treatment proven safe and effective for PD in men with a palpable plaque and a penile curvature deformity of 30 degrees or greater at the start of therapy.
  • Submission by partner Swedish Orphan Biovitrum AB (publ) (Sobi) for an extension of the label for Xiapex® (collagenase clostridium histolyticum) with the European Medicines Agency (EMA) to include the indication of PD. Marketing approval could be granted as early as the late first quarter of 2015.
  • Submission by partner Asahi Kasei Pharma Corporation (Asahi Kasei) of a regulatory application to the Japanese Pharmaceutical and Medical Device Agency (PMDA) for XIAFLEX for the treatment of DC. Auxilium will receive a $10 million regulatory milestone payment from Asahi Kasei for the submission and the review by PMDA is expected to be completed by mid-2015.
  • Data presentations at the American Urological Association (AUA) Meeting held in May 2014, including new analyses of data from the clinical program and pivotal IMPRESS (The Investigation for Maximal Peyronie's Reduction Efficacy and Safety Studies) trials, the Phase 3 studies that evaluated XIAFLEX for the treatment of PD, as well as data examining the onset of action of STENDRA in mild to severe erectile dysfunction presented by Auxilium's partner, VIVUS, Inc.

Second Quarter 2014 Financial Results:

  • Total revenues for the three-month period ended June 30, 2014 were $83.0 million, compared to $100.5 million for the second quarter of 2013 – this 17 percent decrease was primarily due to a decrease in Testim and TESTOPEL revenues, offset by an increase in XIAFLEX and STENDRA revenues driven by the recent product launches in PD and erectile dysfunction, respectively. Product revenues for the second quarter included:
    • STENDRA U.S. net revenues of $6.1 million – initial product launch traction is positive with STENDRA gaining a 5.7 percent share of all new PDE5 prescriptions and a 3.2 percent share of total PDE5 prescriptions amongst Auxilium's target physician population, those doctors responsible for approximately 45 percent of all PDE5 prescriptions.
    • XIAFLEX U.S. net revenues (for PD and DC combined) of $26.3 million, representing a 75 percent increase from the second quarter of 2013 – initial launch momentum for XIAFLEX for PD is strong with 1,108 physicians REMS certified, 3,535 patients submitted to the Auxilium Advantage program for payer reimbursement for treatment and an estimated 3,350 product vials shipped to physicians through the end of June.
    • Edex U.S. net revenues of $7.5 million – with product market share reaching 52 percent.
    • TESTOPEL U.S. net revenues of $4.2 million, impacted by a $12 to $14 million product buy-in in March 2014 ahead of a 15 percent product price increase announced on March 1 and effective on April 1, 2014 and further destocking of inventory in the channel.
    • Testim franchise U.S. net revenues of $25.2 million$11.9 million for the branded Testim product and $13.3 million for the Authorized Generic to Testim; the addition of the Authorized Generic to Testim has increased Auxilium's access to the testosterone replacement therapy gel market, which, combined with Testim, captured a two-year high total of 14 percent of New Prescriptions in July.
    • Other products acquired in the Actient transaction on April 26, 2013 totaled $9.7 million.
    • See Table 1 attached for further details on revenues
  • Gross margin on net revenues was approximately 64 percent (non-GAAP basis) for the second quarter 2014 compared to 77 percent for the same period in 2013 – the decrease is primarily due to $9.3 million in charges recorded during the second quarter of 2014, the impact of a less profitable mix of product revenues, and a decrease in Testim net margin resulting from a lower net selling price. The $9.3 million in charges taken during the second quarter included:
    • $7.4 million related to the launch of the Testim Authorized Generic, specifically a $6.7 million inventory charge related to excess Testim branded inventory and $0.7 million in additional return reserves for Testim; and,
    • $1.9 million in additional return reserves related to various Actient products.
  • R&D spending was $10.6 million (non-GAAP) compared to $12.9 million for the second quarter of 2013 – this decrease resulted principally from lower spending on XIAFLEX Phase 3 clinical trials in DC and PD and was partially offset by increased spending on the ongoing CCH Phase 2 trials for cellulite and Frozen Shoulder Syndrome.
  • Selling, general and administrative costs were $58.9 million (non-GAAP) compared to $50.7 million for the second quarter of 2013 – this increase was primarily due to the added expenses of the acquired Actient operations and an increase in marketing and advertising spend related to the January 2014 launches of XIAFLEX for the treatment of PD and STENDRA.
  • Net loss for the second quarter 2014 (non-GAAP) was $21.8 million, or $(0.44) per share (basic and fully diluted) compared to net income of $11.0 million or $0.22 per share (basic and fully diluted) for the second quarter of 2013 – this was primarily due to decreased Testim revenues, lower gross margin and increased selling, general and administrative costs. As of June 30, 2014, Auxilium had $44.7 million in cash, cash equivalents and short-term investments, compared to $76.7 million at March 31, 2014, and outstanding debt of $299.5 million ($350.0 million at par value) in 2018 convertible senior notes and $249.9 million ($258.6 million par value) in a secured term loan.

Update on Financial Guidance
As noted above, the Company incurred a significant charge to cost of goods sold in the second quarter, which, when combined with the mix of products sold, caused gross margin for the quarter to be significantly lower in the second quarter than anticipated. While the ongoing gross margin for the balance of 2014 is expected to be in the 78 to 80 percent range, we believe the impact of the second quarter's gross margin will result in a full year gross margin of 76 to 77 percent. Auxilium has also updated its expectations on spending levels throughout the organization and believes that SG&A expense for the full year will now be in a range of $245 to $250 million, rather than the previous guidance of $255 to $260 million. The Company is reaffirming all other aspects of 2014 guidance, including revenues ($380 to $420 million), non-GAAP R&D Expense ($40 to $45 million), non-GAAP net interest expense ($20 to $22 million) and non-GAAP net income (0 to ($15 million)). This guidance does not take into account the effect of the Company's proposed merger with QLT, Inc.

Use of Non-GAAP Financial Measures
The foregoing descriptions of our Second Quarter Financial Details contain non-GAAP financial measures. Non-GAAP financial measures should not be relied upon as an alternative to GAAP measures. A description of the non-GAAP calculations and reconciliation to the closest comparable GAAP measure, as well as the Company's rationale for the utility to investors of the non-GAAP measures it has elected to report, is provided in the accompanying Table 2.

No Offer or Solicitation 
This communication is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote or approval in any jurisdiction pursuant to the acquisition or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Additional Information
In connection with the proposed merger, QLT filed with the Securities and Exchange Commission ("SEC") a Registration Statement on Form S-4 that includes a preliminary joint proxy statement of Auxilium and QLT that also constitutes a preliminary prospectus of QLT (the "Form S-4"). The Form S-4 has not yet been declared effective by the SEC and is not complete and will be further amended. Auxilium and QLT plan to mail the definitive joint proxy statement/prospectus to their respective stockholders. INVESTORS ARE URGED TO READ THE PRELIMINARY JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE, INCLUDING THE DEFINITIVE JOINT PROXY STATEMENT / PROSPECTUS, BECAUSE THOSE DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION. You will be able to obtain the Form S-4, as well as other filings containing information about Auxilium and QLT, free of charge, at the website maintained by the SEC at www.sec.gov and, in QLT's case, also at the website maintained by the Canadian Securities Administrators ("CSA") at www.sedar.com. You may also obtain these documents, free of charge, from Auxilium's website (www.Auxilium.com) under the heading "Investors—SEC Filings" or by directing a request to Auxilium, Attention: Investor Relations, 640 Lee Road, Chesterbrook, PA 19087. You may also obtain these documents, free of charge, from QLT's website (www.qltinc.com) under the tab "Investors" and then under the headings "Securities Filings" and "Proxy Circulars" or by directing a request to QLT, Attention: Investor Relations, 887 Great Northern Way, Suite 250, Vancouver, BC, Canada, V5T 4T5.

Participants in the Solicitation
The respective directors and executive officers of Auxilium and QLT and other persons may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding Auxilium's directors and executive officers is available in its definitive proxy statement filed with the SEC by Auxilium on April 10, 2014, and information regarding QLT directors and executive officers is available in its Annual Report on Form 10-K/A filed with the SEC and applicable Canadian securities regulators by QLT on April 30, 2014. These documents can be obtained free of charge from the sources indicated above. Other information regarding the interests of the participants in the proxy solicitation will be included in the joint proxy statement/prospectus and other relevant materials to be filed with the SEC and the applicable Canadian securities regulators when they become available.

Conference Call
Auxilium will hold a conference call today, Thursday, August 7, 2014, at 8:30 a.m. ET, to discuss second quarter 2014 results. The presentation slides to be used during the call will be available on the "Investors" section of Auxilium's web site under the "Presentations" tab at
8:30 a.m. ET. A question and answer session will follow the presentation. The conference call and the presentation slides will be simultaneously webcast on the "Investors" section of Auxilium's website under the "Events" tab.



Conference call details:


Date:

Thursday, August 7, 2014

Time:

8:30 a.m. ET

Dial-in (U.S.):

866-953-6858

Dial-in (International):

617-399-3482

Web cast:

http://www.auxilium.com

Passcode:

AUXILIUM



The conference call will be archived via webcast for future review until November 7, 2014.

About Auxilium 
Auxilium Pharmaceuticals, Inc. is a fully integrated specialty biopharmaceutical company with a focus on developing and commercializing innovative products for specialist audiences. With a broad range of first- and second-line products across multiple indications, Auxilium is an emerging leader in the men's healthcare area and has strategically expanded its product portfolio and pipeline in orthopedics, dermatology and other therapeutic areas. Auxilium now has a broad portfolio of 12 approved products. Among other products in the U.S., Auxilium markets edex® (alprostadil for injection), an injectable treatment for erectile dysfunction, Osbon® ErecAid®, the leading device for aiding erectile dysfunction, STENDRA® (avanafil), an oral erectile dysfunction therapy, Testim® (testosterone gel) for the topical treatment of hypogonadism, an Authorized Generic version of Testim (testosterone gel) with its partner Prasco, LLC, TESTOPEL® (testosterone pellets) a long-acting implantable testosterone replacement therapy, XIAFLEX® (collagenase clostridium histolyticum or CCH) for the treatment of Peyronie's disease and XIAFLEX for the treatment of Dupuytren's contracture. The Company also has programs in Phase 2 clinical development for the treatment of Frozen Shoulder syndrome and cellulite. To learn more, please visit www.Auxilium.com.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995  
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, which discuss matters that are not facts, and may include words to indicate their uncertain nature such as "believe," "expect," anticipate," "intend," "plan," "could," "estimate," "project," "will," and "target."  Our forward-looking statements convey management's expectations, beliefs, plans and objectives regarding future performance of the Company and are based upon preliminary information and management assumptions.  No specific assurances can be given with respect to: whether we will achieve our financial guidance for 2014; the degree to which our actual results will meet our projections; whether we will be able to obtain the consents or approvals or meet the other conditions precedent to the contemplated closing of the merger with QLT or may be required to accept conditions that could reduce the anticipated benefits of the merger as a condition to obtaining the necessary consents or approvals; whether the length of time necessary to consummate the merger with QLT will be longer than anticipated; if a condition to closing of the merger with QLT may not be satisfied; whether we are able to realize the synergies and benefits we expect from the merger with QLT, including cost and tax synergies; whether the merger with QLT represents an opportunity to accelerate the strategic goals of Auxilium; whether Auxilium will be a leading, diversified specialty biopharmaceutical company; whether our product portfolio is sufficiently diversified; whether STENDRA and XIAFLEX for PD represent growth opportunities; whether our authorized generic version of Testim strategically positions the Testim franchise to compete effectively with other products or provides broader market access for the Testim franchise; the timing of marketing approval, if any, by the EMA for the extension of the Xiapex label to include the indication for PD; the timing for the completion of PMDA's review of the submission and when or whether XIAFLEX will be approved as a treatment option in Japan for patients with DC; whether we will successfully advance our R&D pipeline in orthopedics and dermatology and the timing of receiving and announcing data from those studies; whether we are well positioned to, or will, drive increased shareholder value; and the success of the launch of two new products: STENDRA and XIAFLEX for PD. While the Company may elect to update the forward-looking statements made in this news release in the future, the Company specifically disclaims any obligation to do so.  Such forward-looking statements are subject to a wide range of risks and uncertainties that could cause results to differ in material respects, including those relating to product development, revenue, expense and earnings expectations, intellectual property rights, results and timing of clinical trials, success of marketing efforts, the need for additional research and testing, and the timing and content of decisions made by regulatory authorities, including the FDA, and those risks discussed in our reports on file with the Securities and Exchange Commission (the "SEC").  Our SEC filings may be accessed electronically by means of the SEC's home page on the Internet at http://www.sec.gov or by means of the Company's home page on the Internet at http://www.auxilium.com under the heading "For Investors - SEC Filings."  There may be additional risks that the Company does not presently know or that the Company currently believes are immaterial which could also cause actual results to differ from those contained in the forward-looking statements.




Auxilium Contacts:


Keri P. Mattox / SVP, IR &

Nichol L. Ochsner / Senior Director, IR &

Corporate Communications

Corporate Communications

Auxilium Pharmaceuticals, Inc.

Auxilium Pharmaceuticals, Inc. 

(484) 321-5900

(484) 321-5900

[email protected]

[email protected]



 

 


AUXILIUM PHARMACEUTICALS, INC.


Table 1- 2nd Quarter 2014 Revenue Details


(In millions, except for percentages)


(Unaudited)





























3 Months Ended June 30,


Increase


6 Months Ended June 30,


Increase



2014


2013


 (Decrease)


2014


2013


 (Decrease)














Testim revenues-













Net U.S. revenues - brand

$11.9


$53.2


-78%


$22.8


$98.5


-77%


Net U.S. revenues - AG

13.3


-


N/A


13.3


-


N/A


International revenues

0.9


1.2


-25%


1.8


1.4


29%















   Total Testim revenues

$26.1


$54.4


-52%


$37.9


$99.9


-62%














XIAFLEX revenues-













Net U.S. revenues

$26.3


$15.0


75%


$42.9


$26.9


59%















International revenues

3.1


3.9


-21%


6.3


12.7


-50%















   Total XIAFLEX revenues

$29.4


$18.9


56%


$49.2


$39.6


24%














TESTOPEL U.S. revenues*

4.2


14.4


-71%


36.2


14.4


151%














STENDRA U.S. revenues

6.1


-


N/A


17.7


-


N/A














Edex U.S. revenues*

7.5


5.0


50%


13.0


5.0


160%














Other Actient U.S. revenues*

9.7


7.8


24%


17.5


7.8


124%















Total net revenues

$83.0


$100.5


-17%


$171.5


$166.7


3%















 * For the three and six months ended June 30, 2013, Actient revenues are included for the period from April 26, 2013 to June 30, 2013.  The three and six months ended June 30, 2014 include Actient revenues for the entire period.




Note: International revenues represent amortization of deferred upfront and milestone payments received on our licensing agreements, together with royalties earned on product sales by licensees.

 

 


AUXILIUM PHARMACEUTICALS, INC.


Table 2 - Reconciliation of GAAP to Non-GAAP Net Income (Loss)


(In millions, except per share amounts)


(Unaudited)




















3 Months Ended June 30, 2014


3 Months Ended June 30, 2013





GAAP


Adjustments


Non-GAAP


GAAP


Adjustments


Non-GAAP


Net revenues*

$          83.0


$             -


$          83.0


$        100.5


$             -


$        100.5


Operating expenses:















Cost of goods sold

30.1


(0.1)

 (a) 

$          30.0


27.2


(4.5)

 (a) 

22.7




Research and development

11.3


(0.7)

 (b) 

$          10.6


13.6


(0.7)

 (b) 

12.9




Selling, general and administrative

69.2


(10.3)

 (c) 

$          58.9


74.9


(24.2)

 (c) 

50.7




Amortization of purchased intangibles

20.0


(20.0)

 (d) 

$             -


10.9


(10.9)

 (d) 

-




Contingent consideration

(20.4)


20.4

 (e) 

$             -


2.3


(2.3)

 (e) 

-




    Total operating expenses

110.2


(10.7)


$          99.5


128.9


(42.6)


86.3


Income (loss) from operations

(27.2)


10.7


$         (16.5)


(28.4)


42.6


14.2


Interest income (expense), net

(9.4)


4.0

 (f) 

$          (5.4)


(6.9)


3.7

 (f) 

(3.2)


Income (loss) before income taxes

(36.6)


14.7


$         (21.9)


(35.3)


46.3


11.0


Income tax benefit (expense)

0.1


-

 (g) 

$            0.1


78.0


(78.0)

 (g) 

-


Net income (loss)

$         (36.5)


14.7


$         (21.8)


$          42.7


$         (31.7)


$          11.0
































Net income (loss) per common share:















Basic

$         (0.73)




$         (0.44)


$          0.87




$          0.22




Diluted

$         (0.73)




$         (0.44)


$          0.86




$          0.22

















Shares used to compute net income














(loss) per common share:















Basic

50.2




50.2


49.3




49.3




Diluted

50.2




50.2


49.6




49.6
















* For the three months ended June 30, 2013, Actient revenues are included for the time period from April 26, 2013 to June 30, 2013.  The three months ended June 30, 2014 include Actient revenues for the entire period.






















3 Months




3 Months 







 Ended June 30, 2014




 Ended June 30, 2013



Adjustments to:













(a) Costs of goods sold:














Employee stock-based compensation (1)


(0.1)






-





Acquired inventory step-up value (2)


-






(4.5)









$          (0.1)






$          (4.5)




(b) Research and development:














Employee stock-based compensation (1)


(0.7)






(0.7)



















(c) Selling, general and administrative:














Employee stock-based compensation (1)


(4.3)






(3.5)





Acquisition related severance costs (3)


-






(10.0)





Acquisition related transaction and integration costs (3)


(6.0)






(10.7)





   Total



$         (10.3)






$         (24.2)



















(d) Amortization of purchased intangibles (4)


(20.0)






(10.9)



















(e) Change in contingent consideration (5)


20.4






(2.3)


































(f) Interest income (expense), net














Non-cash interest expense related















to term loan and convertible debt (6)


4.0






3.7

















































(g) Income tax benefit (7)



-






(78.0)


































(1)

The effects of employee stock-based compensation are excluded because of varying available valuation methodologies and subjective assumptions.  We believe this is a useful measure for investors because such exclusion facilitates comparison to peer companies who also provide similar non-GAAP disclosures and is reflective of how Auxilium management internally manages the business.





(2)

The effects of recognition of the step-up in value of inventory acquired in the Actient acquisition are excluded because this expense is non-cash and, consequently, we believe investors are able to more accurately compare our operating results to those of our peer companies. Additionally, the amounts excluded are not indicative of anticipated ongoing operations.

















(3)

The effects of expenses related to the Actient acquisition and integration as well as the expenses related to the pending merger with QLT Inc are excluded because of the non-recurring nature of these expenses, and we believe such exclusion facilitates investors' ability to more accurately compare our operating results to those of our peer companies.  Additionally, the amounts excluded are not indicative of anticipated ongoing operations. 

















(4)

The effects of amortization of  intangible assets acquired in the Actient and STENDRA acquisitions are excluded because this expense is non-cash, and we believe such exclusion facilitates investors' ability to more accurately compare our operating results to those of our peer companies.   

















(5)

The effects of change in contingent consideration are excluded due to the nature of this charge, which is related to the change in the fair value of the liability for contingent consideration in connection with the acquisitions of Actient and STENDRA. We believe such exclusion facilitates investors' ability to more accurately compare our operating results to those of our peer companies. 

















(6)

The effects of non-cash interest related to the term loan as well as the convertible senior notes due 2018 are excluded.  We believe such exclusion facilitates an understanding of the effects of the debt service obligations on the Company's liquidity and comparisons to peer group companies, and is reflective of how Auxilium management internally manages the business.

















(7)

The effect of non-cash tax benefit related to the acquisition of Actient is excluded because of its non-recurring nature. We believe such exclusion facilitates investors ability to more accurately compare our operating results to those of our peer companies.

 

 


AUXILIUM PHARMACEUTICALS, INC.



Table 2- Reconciliation of GAAP to Non-GAAP Net Income (Loss)



(In millions, except per share amounts)



(Unaudited)






















6 Months Ended June 30, 2014


6 Months Ended June 30, 2013






GAAP


Adjustments


Non-GAAP


GAAP


Adjustments


Non-GAAP



Net revenues*

$        171.5


$             -


$        171.5


$        166.7


$             -


$        166.7



Operating expenses:
















Cost of goods sold

48.2


(0.1)

 (a) 

48.1


42.3


(4.6)

 (a) 

37.7





Research and development

22.3


(1.4)

 (b) 

20.9


25.5


(1.4)

 (b) 

24.1





Selling, general and administrative

147.2


(14.6)

 (c) 

132.6


119.2


(27.2)

 (c) 

92.0





Amortization of purchased intangibles

39.8


(39.8)

 (d) 

-


10.9


(10.9)

 (d) 

-





Contingent consideration

(12.7)


12.7

 (e) 

-


2.3


(2.3)

 (e) 

-





    Total operating expenses

244.8


(43.2)


201.6


200.2


(46.4)


153.8



Loss from operations

(73.3)


43.2


(30.1)


(33.5)


46.4


12.9



Interest income (expense), net

(19.0)


8.1

 (f) 

(10.9)


(10.0)


5.8

 (f) 

(4.2)



Loss before income taxes

(92.3)


51.3


(41.0)


(43.5)


52.2


8.7



Income tax benefit (expense)

(0.2)


-

 (g) 

(0.2)


78.0


(78.0)

 (g) 

-



Net Income (Loss)

$         (92.5)


$          51.3


$         (41.2)


$          34.5


$         (25.8)


$            8.7



































Net income (loss) per common share:
















Basic

$         (1.85)




$         (0.82)


$          0.70




$          0.18





Diluted

$         (1.85)




$         (0.82)


$          0.70




$          0.18



















Shares used to compute net income















(loss) per common share:
















Basic

50.0




50.0


49.3




49.3





Diluted

50.0




50.0


49.6




49.6


















* For the six months ended June 30, 2013, Actient revenues are included for the period from April 26, 2013 to June 30, 2013.  The six months ended June 30, 2014 include Actient revenues for the entire period.
























6 Months




6 Months 








 Ended June 30, 2014




 Ended June 30, 2013




Adjustments to:














(a) Costs of goods sold:















Employee stock-based compensation (1)


(0.1)






(0.1)






Acquired inventory step-up value (2)


-






(4.5)










$          (0.1)






$          (4.6)





(b) Research and development:















Employee stock-based compensation (1)


(1.4)






(1.4)





















(c) Selling, general and administrative:















Employee stock-based compensation (1)


(7.7)






(6.5)






Acquisition related severance costs (3)


-






(10.0)






Acquisition related transaction and integration costs (3)


(6.9)






(10.7)






   Total



$         (14.6)






$         (27.2)





















(d) Amortization of purchased intangibles (4)


(39.8)






(10.9)





















(e) Change in contingent consideration (5)


12.7






(2.3)





































(f) Interest income (expense), net















Non-cash interest expense related
















to term loan and convertible debt (6)


8.1






5.8





















































(g) Income tax benefit (7)



-






(78.0)





































(1)

The effects of employee stock-based compensation are excluded because of varying available valuation methodologies and subjective assumptions.  We believe this is a useful measure for investors because such exclusion facilitates comparison to peer companies who also provide similar non-GAAP disclosures and is reflective of how Auxilium management internally manages the business.





(2)

The effects of recognition of the step-up in value of inventory acquired in the Actient acquisition are excluded because this expense is non-cash and, consequently, we believe investors are able to more accurately compare our operating results to those of our peer companies. Additionally, the amounts excluded are not indicative of anticipated ongoing operations.


















(3)

The effects of expenses related to the Actient acquisition and integration as well as the expenses related to the pending merger with QLT Inc are excluded because of the non-recurring nature of these expenses, and we believe such exclusion facilitates investors' ability to more accurately compare our operating results to those of our peer companies.  Additionally, the amounts excluded are not indicative of anticipated ongoing operations. 


















(4)

The effects of amortization of  intangible assets acquired in the Actient and STENDRA acquisitions are excluded because this expense is non-cash, and we believe such exclusion facilitates investors' ability to more accurately compare our operating results to those of our peer companies.   


















(5)

The effects of change in contingent consideration are excluded due to the nature of this charge, which is related to the change in the fair value of the liability for contingent consideration in connection with the acquisitions of Actient and STENDRA. We believe such exclusion facilitates investors' ability to more accurately compare our operating results to those of our peer companies. 


















(6)

The effects of non-cash interest related to the term loan as well as the convertible senior notes due 2018 are excluded.  We believe such exclusion facilitates an understanding of the effects of the debt service obligations on the Company's liquidity and comparisons to peer group companies, and is reflective of how Auxilium management internally manages the business.


















(7)

The effect of non-cash tax benefit related to the acquisition of Actient is excluded because of its non-recurring nature. We believe such exclusion facilitates investors ability to more accurately compare our operating results to those of our peer companies.

 

 

 

SOURCE Auxilium Pharmaceuticals, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Fundamentally, SDN is still mostly about network plumbing. While plumbing may be useful to tinker with, what you can do with your plumbing is far more intriguing. A rigid interpretation of SDN confines it to Layers 2 and 3, and that's reasonable. But SDN opens opportunities for novel constructions in Layers 4 to 7 that solve real operational problems in data centers. "Data center," in fact, might become anachronistic - data is everywhere, constantly on the move, seemingly always overflowing. Net...
Leysin American School is an exclusive, private boarding school located in Leysin, Switzerland. Leysin selected an OpenStack-powered, private cloud as a service to manage multiple applications and provide development environments for students across the institution. Seeking to meet rigid data sovereignty and data integrity requirements while offering flexible, on-demand cloud resources to users, Leysin identified OpenStack as the clear choice to round out the school's cloud strategy. Additional...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's

The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and asse...
DevOps is all about agility. However, you don't want to be on a high-speed bus to nowhere. The right DevOps approach controls velocity with a tight feedback loop that not only consists of operational data but also incorporates business context. With a business context in the decision making, the right business priorities are incorporated, which results in a higher value creation. In his session at DevOps Summit, Todd Rader, Solutions Architect at AppDynamics, discussed key monitoring techniques...
Building low-cost wearable devices can enhance the quality of our lives. In his session at Internet of @ThingsExpo, Sai Yamanoor, Embedded Software Engineer at Altschool, provided an example of putting together a small keychain within a $50 budget that educates the user about the air quality in their surroundings. He also provided examples such as building a wearable device that provides transit or recreational information. He then reviewed the resources available to build wearable devices at ...
IBM has announced software that allows people to hide or anonymize their personal information on the Web, ensuring protection from identity theft and other misuse. Developed by researchers at IBM's laboratory in Zurich, Switzerland, the software – called Identity Mixer – will enable consumers to purchase goods and services on the Internet without disclosing personal information. As consumers hand over personal details in exchange for downloading music or subscribing to online newsletters, they...
Mobile commerce traffic is surpassing desktop, yet less than 20% of sales in the U.S. are mobile commerce sales. In his session at 15th Cloud Expo, Dan Franklin, Segment Manager, Commerce, at Verizon Digital Media Services, defined mobile devices and discussed how next generation means simplification. It means taking your digital content and turning it into instantly gratifying experiences.
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core...
NuoDB just introduced the Swifts 2.1 Release. In this demo at 15th Cloud Expo, Seth Proctor, CTO of NuoDB, Inc., discussed why scaling databases in the cloud is challenging, why building your application on top of the infrastructure that is designed with this in mind makes a difference, and what you can do with NuoDB that simplifies your programming model, your operations model.
“DevOps is really about the business. The business is under pressure today, competitively in the marketplace to respond to the expectations of the customer. The business is driving IT and the problem is that IT isn't responding fast enough," explained Mark Levy, Senior Product Marketing Manager at Serena Software, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.