Boston, MA 05/28/2014 (wallstreetpr) – Total revenue for the first quarter was $11.8 million, which includes $8 million as product revenue and $3.8 million as license revenue.
Initiate growth
Net product revenues including sales of Iclusig were $8.0 million, 25% year over year increase compared to $6.4 million during the same period last year. It includes Iclusig’s sales of $3.3 million in Europe and $4.7 million from the U.S. Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) is yet to recognize the revenue related to Iclusig inventory available in the transit.
License revenues rose during first quarter due to the milestone payments of $3.75 million from Medinol to develop and market its drug-eluting stents. However, Ariad is not going receive further payments in coming quarters that may create a challenge to offset.
The available funds are mostly utilizing over R&D and commercialization of Iclusig, therefore, Ariad is yet to report positive earnings. The increasing investment over commercial expansion of Iclusig in Europe and re-launch of Iclusig in the U.S. raised the SG&A costs by 7% compared to prior year period. However, declining clinical trial costs reduced the R&D expenses by 31%. Subsequently, Ariad reported lower net loss of $49.8 million compared to $64.7 million a year’s ego.
Cash crunch
Lower loss compared to prior year period coupled with improvement in working capital decreased the cash outflows to $52.4 million through its operating activities (1Q2013: $68.5 million).
Ariad is flexible in funding the entire operation through available cash, sale and issuance of common stocks, milestone payments and additional borrowings. As of March 31, 2014, Ariad has a cash balance of $183 million and working capital of $132 million to meet the current requirements. In addition, the Company has shareholder’s equity of $145.2 million and $3.7 million of long-term debt.
Final take
Ariad continues to commercialize Iclusig in Europe and the U.S. as Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) expects growth in product revenue from the sales of Iclusig in the coming quarters.
