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November 11, 2009
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Cornerstone Therapeutics Inc. (CRTX) reported third-quarter earnings per share of 7 cents, compared to a profit of 49 cents in the year-ago quarter. The Zacks Consensus Estimate was pegged at 1 cent.
Net revenues for the quarter were up 12.1% to $23.1 million as against $20.6 million in the year-ago quarter. Revenues were boosted by the acquisition of a few products during the quarter. Sales for two of the company’s products fell due to increased competition. Hyomax sales fell 39 %, to $7.6 million, while the AlleRx Dose Pack product line witnessed a 42 % decrease to $3.5 million.
On the positive side, revenues from Spectracef sales increased $1.9 million for the reported quarter primarily due to the enhanced promotion of the drug by Cornerstone’s sales force to targeted physicians.
Zyflo CR and Zyflo revenues came in at $5 million for the reported quarter. Curosurf contributed $2.2 million to revenues during the quarter. As a reminder, Cornerstone acquired rights to Curosurf from Chiesi during the quarter and began promoting and selling the drug in Sep 2009. Factive contributed $91,000 to third quarter revenue. Product rights for the candidate and related inventory were acquired in September.
Sales and marketing expenses came in at $8.2 million during quarter as against $3.8 million in the year-ago quarter. This increase was primarily attributable to increase of the sales force and management team apart from marketing and promotional spending; and co-promotion, travel and consulting-related expenses.
General and administrative expenses came in at $4.9 million as against $1.3 million for the year-ago quarter.
Management raised its revenue guidance for 2009 and now expects revenues to exceed $104 million based on increased contributions from Curosurf and Factive. Cornerstone was previously expecting revenues to exceed $95 million.
Cornerstone operates in a highly competitive respiratory market. Its products compete with both big players and generic counterparts. However, we believe the company should be able to carve a niche in this market. Cornerstone’s top competitors include big players like AstraZeneca (AZN), GlaxoSmithKline plc (GSK) and Merck (MRK).
Read the full analyst report on "CRTX"
Read the full analyst report on "AZN"
Read the full analyst report on "GSK"
Read the full analyst report on "MRK"
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