Boston, MA 03/17/2014 (wallstreetpr) – Depomed Inc (NASDAQ:DEPO) has been building up a specialty pharmaceutical business and the management seems to have done a good job of it. Investors should take a look at this stock and see if it can add value to their portfolio.
The financial results:
Depomed Inc (NASDAQ:DEPO) closed the fourth quarter with revenues $40.6 million. These revenues included $18.8 million on account of product sales, $18.5 million in royalities and $3.3 million in licensing and collaborative fees. Royalties included $18.1 million associated with the company’s transaction with PDL Bio Pharma. Earnings for the quarter translate to $0.72 per share. Analysts had expected the company to declare a loss of $0.21 per share. The company had reported a loss of $0.07 per share in the same period last year. Revenues increased by more than 52% on y-on-y basis. Analysts had estimated that the company would report revenues of $19.06 million in the quarter.Revenues for the full year 2013 were $134.2 million. These included $58.3 million in product sales, $45 million in royalties and $17.8 million in collaborative and licensing fees.
Depomed expects to breakeven during 2014.The earnings are expected between the breakeven point and $0.16 per share. Analysts however expect the company to declare a loss of $0.08 in 2014.
Other News:
Among other news, the CEO of Depomed Inc (NASDAQ:DEPO), has unloaded some 17,000 shares from his holdings. As the stock is trading at a very attractive range, he may have initiated the transaction to monetize his investment. The transaction was concluded at an average price of $14.54 per share and the value comes to $247,180.
The acquisitions of the past year appear to have helped Depomed Inc (NASDAQ:DEPO) declare such strong results. The trend is expected to continue in 2014 as the product line up is very strong and the company has managed to absorb the products. The valuations are also very healthy and are worth a look for investment in the long run.
