LYON, FRANCE -- (Marketwire) -- 02/28/13 -- Flamel Technologies (NASDAQ: FLML) today announced its financial results for the fourth quarter of 2012 and full year 2012. The year 2012 marks the transition of Flamel from a stand-alone drug delivery company to a specialty pharmaceutical company with outstanding drug delivery capabilities. Highlights from the quarter and subsequent period include:
•Management continues to advance internal pipeline and pursue external business development opportunities, •Flamel had $9.2 million of cash and marketable securities as of December 31, 2012, prior to the debt financing, and •Receipt of $14.5 million of net proceeds on February 4, 2013 from the previously announced $15 million debt financing with two funds managed by Deerfield Management, the Company's largest shareholder.
In March 2012 Flamel acquired Éclat Pharmaceuticals, LLC (Éclat), which provided both marketing capabilities and a mature pipeline of short term product opportunities. The company has continued the development of those products and expects to launch the first of them in the summer of 2013, providing there are no unanticipated regulatory or other delays.
"Our progress in developing products at Éclat and additional technology-driven products from Flamel's proprietary platform of technologies has continued at a rapid pace and we are excited about the expected approval and launch of our first product, as well as the expected filing of additional marketing applications in 2013," said Mike Anderson, Chief Executive Officer of Flamel. "In addition, the recent financing will serve two important purposes. First, it allows us to continue investing aggressively in our R&D pipeline; second, it also provides the means to market effectively our first product, after its expected approval this year."
Mr. Anderson continued, "We believe we have evolved the company into an organization that now has three distinctive ways to create revenue: commercializing the Éclat projects in the shorter term, pursuing our self-funded internal projects in the mid-term, and continuing to seek meaningful partnerships with other companies to supplement the other initiatives."
"From an operating standpoint, management continues to exercise cost discipline," he added, as fourth quarter 2012 operating expenses, excluding non-cash elements, declined by $0.3 million compared to the fourth quarter of 2011, despite absorbing additional operating expenses from Éclat since March 2012.
Flamel's Fourth Quarter Results
Flamel reported total revenues during the fourth quarter of 2012 of $7.3 million versus $8.6 million in the fourth quarter of 2011. The decrease was primarily driven by lower product sales and services of $2.2 million in the fourth quarter of 2012 compared to $4.2 million in the prior year quarter, as the fourth quarter of 2011 included the non-recurring revenues from the signing of a new supply contract with Glaxo SmithKline ("GSK") for purchases of Coreg CR®'s microparticles. License and research revenues grew to $3.5 million during the fourth quarter of 2012 compared to $2.2 million in the prior year quarter, reflecting the recognition of the remaining up-front monies received from Merck Serono, subsequent to termination of the license agreement in October 2012. Other revenues, consisting primarily of royalty income from GSK on the sales of Coreg CR, declined to $1.7 million in the fourth quarter of 2012 versus $2.2 million in the prior year quarter.
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