Noven's quarterly revenues up 28%, boosted by Daytrana sales

By Lisa Kerner

Charlotte, N.C., Nov. 6 - Noven Pharmaceuticals, Inc. said its net revenues for the third quarter ended Sept. 30 rose 28% to $15.7 million from $12.2 million for the third quarter of 2005.

The increase was due to $2.0 million of Daytrana product sales to Shire, $2.0 million of Daytrana license revenues and higher hormone therapy product sales to Novogyne Pharmaceuticals, according to a news release.

Third-quarter 2006 net income was $5.0 million, or $0.20 diluted earnings per share, compared with a net loss of $1.4 million, or $0.06 diluted loss per share, for the year-ago quarter, which reflected a $9.5 million charge related to the write-off of fentanyl inventory.

Cost of products sold for the current quarter was down at $9.0 million, from $15.4 million for the 2005 quarter.

Research and development expenses for the third quarter decreased 34% to $1.3 million from $2.5 million for the prior-year period.

Noven said it recognized $8.2 million of earnings from Novogyne (owned jointly by Noven and Novartis Pharmaceuticals Corp.) in the third quarter, slightly higher than the $8.1 million recognized in the same quarter of 2005.

At Sept. 30, Noven had $139.2 million of cash and cash equivalents and short-term investments, compared with $84.9 million at Dec. 31. The increase included a $50.0 million milestone payment following approval of Daytrana, $17.6 million of distributions from Novogyne and $8.1 million received in connection with the exercise of stock options.

Noven's working capital at Sept. 30 increased to $148.2 million from $91.1 million at Dec. 31.

"The highlights of the 2006 third quarter included increased demand for our lead products, a 28% increase in net revenues and improvement in our overall gross margin," president and chief executive officer Robert C. Strauss said in the release.

"Vivelle-Dot, the most prescribed transdermal estrogen therapy in the United States, had the highest quarterly prescriptions in its history and contributed to another solid quarter at our Novogyne joint venture."

Miami-based Noven develops transdermal drug-delivery technologies and prescription transdermal products.

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