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Net loss for the quarter ended December 31, 2012, was $24.3 million, or $0.40 per share based on 61,574,187 weighted average shares outstanding, compared to a net loss of $76.7 million, or $3.92 per share based on 19,568,131 weighted average shares outstanding, in the quarter ended December 31, 2011.

Non-GAAP net loss for the quarter ended December 31, 2012, was $20.9 million, or $0.34 per share, compared to a non-GAAP net loss of $19.0 million, or $0.97 per share, in the fourth quarter of 2011. Horizon provides non-GAAP financial measures, which it believes can enhance an overall understanding of Horizon's financial performance when considered together with GAAP figures. Refer to the section of this press release below titled, "Note Regarding Use of Non-GAAP Financial Measures," for a full discussion on this subject.

Full Year 2012 Financial Results
For the year ended December 31, 2012, gross and net sales were $23.0 million and $19.6 million, respectively, compared to $6.9 million in gross and net sales in the prior year. DUEXIS gross sales were $13.2 million and net sales were $11.0 million after deducting trade discounts and allowances of $0.9 million and co-pay assistance costs of $1.3 million, and represented 58% of gross sales and 57% of net sales during the year ended December 31, 2012. DUEXIS was launched in December 2011.

LODOTRA gross sales were $9.0 million and net sales were $8.2 million after deducting trade discounts and allowances of $0.8 million during the year ended December 31, 2012, compared to gross and net sales of $6.8 million during the year ended December 31, 2011. The increase in LODOTRA sales was attributable to higher product shipments during 2012 in addition to the recognition of deferred revenues from the Company's distribution partner, Mundipharma. RAYOS gross sales following its U.S. launch in December 2012 were $0.8 million and net sales were $0.4 million after deductions for discounts and allowances, and for co-pay assistance costs.

Research and development expenses increased $1.5 million, from $15.3 million during the year ended December 31, 2011, to $16.8 million during the year ended December 31, 2012. The increase in research and development expenses was primarily associated with a $3.4 million increase in salaries and benefits expense as a result of additional staffing of the Company's regulatory and medical affairs group, which was partially offset by reductions in regulatory submission fees and clinical trial expenses of $1.8 million and legal expenses of $0.2 million.

Sales and marketing expenses increased $29.2 million, from $20.3 million during the year ended December 31, 2011, to $49.5 million during the year ended December 31, 2012. The increase in sales and marketing expenses was primarily attributable to salaries and related expenses for a full year for the Company's initial 80 field sales representatives hired during the second half of 2011, incremental salaries and related expenses associated with growing the Company's field sales organization to approximately 150 sales representatives during the course of 2012, salaries and related expenses associated with increased staffing for the related sales support function, and an increase in marketing expenses to launch and commercialize DUEXIS and RAYOS in the U.S. As a result of these factors, during the year ended December 31, 2012, sales and marketing personnel related costs increased $17.5 million and marketing costs for DUEXIS and RAYOS increased approximately $9.0 million compared with the year ended December 31, 2011.