CVTX Q3 2008 Conference Call
Summary
CV Therapeutics, Inc. (CVTX) is in a great position. Excellent balance sheet with enough cash to see them through to profitability. Four revenue streams in 2009 should get them close to profitable in Q4 2009 or early 2010. The FDA first line approval for Ranexa will see an acceleration of growth in US sales. Ranexa’s current market share in US is less than 1% so there’s significant possible upside. As they continue to increase sales and head for profitability more analysts and investors will pay attention to CVTX. Possible catalyst from partnering.
Conference Call
“While we are still finalizing our budgets for 2009, we expect to invest roughly 15% to 20% more in 2009 compared to 2008 in costs and expenses, not including cost of goods sold. This increase will be primarily in sales and marketing and will cover the increase of 40 sales representatives and the other marketing programs that Lou mentioned in his earlier remarks.
we expect to be able to continue to improve our overall net results in 2009 and will target a net loss for the year of less than $75 million. With 300 million in the bank at the end of the third quarter, growing Ranexa sales even before the new label and other sources of revenue from Lexiscan and Ranexa EU royalties, we believe this is a prudent investment that even in these challenging financial times we are in an excellent position to make.”
Q3 Press Release
“net loss of $25.4 million, or $0.41 per share. This compares to a net loss of $34.2 million, or $0.58 per share, for the same quarter in 2007 and $4.3 million, or $0.07 per share, for the prior quarter… Excluding the impact of the $22.0 million milestone revenue recognized in Q2, the prior quarter net loss would have been $26.3 million.
$30.3 million of net product sales of Ranexa(R) in the U.S., increase of 19 percent compared to the $25.4 million of net product sales recorded in the prior quarter … and an increase of 65 percent compared to the $18.4 million of net product sales recorded in the same quarter in the prior year.
total revenues of $38.1 million, $30.3 million of net product sales of Ranexa, $4.7 million of royalty and license revenue and $3.2 million of collaboration, milestone and other revenue. The $4.7 million of royalty and license revenue includes $3.1 million of amortization of our $175.0 million upfront payment earned from TPG-Axon Capital in exchange for rights to 50 percent of our royalty on North American sales of Lexiscan(R), $1.3 million of royalty revenue earned under our collaboration with Astellas and $0.3 million of amortization of our $70.0 million upfront license payment from the Menarini Group (Menarini) for the exclusive rights to Ranexa in the European Union and certain other countries. The $3.2 million of collaboration, milestone and other revenue includes a $3.0 million milestone payment from Biogen Idec, Inc. received upon achievement of a development milestone related to the Adentri(R) program and reimbursement of costs from Astellas, our collaborative partner for Lexiscan(R) in North America.
Costs and expenses were $57.2 million for the quarter ended September 30, 2008. This compares to total costs and expenses of $56.8 million for the prior quarter ended June 30, 2008 and $53.7 million for the same quarter in 2007.” read press release
Older Posts on CVTX
- November 2008 – Q3 Analysis and FDA approval
- October 2008 – Analysis Part 1
I am long CVTX. It is one of my top ten positions.
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