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"We had a solid first quarter," said Timothy P. Walbert, chairman, president and chief executive officer, Horizon Pharma. "We continued to drive DUEXIS prescription and revenue growth, launched RAYOS and finished the quarter with a strong cash balance. Looking ahead, we believe our key products -- DUEXIS and RAYOS -- have strong momentum. We are off to a robust start in the second quarter with significant acceleration in DUEXIS revenue as a result of increasing the value captured per prescription in March of this year."

First Quarter 2013 Financial Results

For the first quarter ended March 31, 2013, gross and net sales were $10.7 million and $9.2 million, respectively, compared to gross and net sales of $2.9 million and $2.5 million, respectively, for the first quarter of 2012. DUEXIS gross sales were $6.7 million and net sales were $5.3 million after deducting trade discounts and allowances of $0.6 million and co-pay assistance costs of $0.8 million, compared to gross and net sales of $1.1 million and $0.9 million, respectively, during the first quarter of 2012. The increase in DUEXIS sales was primarily due to increased product shipments as a result of the Company's expanded sales force compared to the first quarter of 2012, as well as product price increases. DUEXIS represented 63% of gross sales and 58% of net sales during the quarter ended March 31, 2013.

RAYOS gross sales and net sales for the first quarter of 2013 were approximately $0.4 million each. LODOTRA gross and net sales in the first quarter of 2013 were $3.6 million and $3.5 million, respectively, compared to gross and net sales of $1.8 million and $1.6 million, respectively, in the first quarter of 2012. The $1.8 million increase in LODOTRA gross sales during the first quarter of 2013 was primarily attributable to higher product shipments and the recognition of deferred revenues from the Company's European distribution partner, Mundipharma, compared to the prior year period.

Net loss for the quarter ended March 31, 2013, was $22.2 million, or $0.36 per share based on 61,939,822 weighted average shares outstanding, compared to a net loss of $23.7 million, or $0.98 per share based on 24,116,490 weighted average shares outstanding, for the quarter ended March 31, 2012.

Non-GAAP net loss for the quarter ended March 31, 2013, was $18.7 million, or $0.30 per share, compared to a non-GAAP net loss of $20.5 million, or $0.85 per share, for the first quarter of 2012. Horizon provides non-GAAP financial measures, which it believes can enhance an overall understanding of its financial performance when considered together with GAAP figures. Refer to the section of this press release below entitled "Note Regarding Use of Non-GAAP Financial Measures" for a full discussion on this subject. The Company had cash and cash equivalents of $81.1 million at March 31, 2013.

Research and development expenses decreased $1.9 million, from $4.1 million during the three months ended March 31, 2012, to $2.2 million during the three months ended March 31, 2013. The decrease in research and development expenses during the first quarter of 2013 was primarily associated with the classification of $1.4 million in medical affairs expenses to selling and marketing expenses in addition to a $0.6 million reduction in consulting expenses. During the first quarter of 2013, in connection with the full commercial launch of RAYOS, the Company began to classify its medical affairs expenses, which consist of expenses related to scientific publications, health outcomes, biostatistics, medical education and information and medical communications as selling and marketing expenses in accordance with U.S. GAAP. Prior to the full commercial launch of RAYOS in late January 2013, these medical affairs expenses were classified as part of research and development.