Avanir's Revenue Improves 61% in Q4, but Its Loss Widens Anyway

The growth continues for biopharmaceutical company Avanir Pharmaceuticals (NASDAQ: AVNR  ) , which reported its 10th consecutive quarter of double-digit revenue growth despite widening losses for the quarter.

For its year-end quarter, Avanir delivered gross and net revenue for FDA-approved pseudobulbar affect drug Nuedexta of $27.7 million and $20.2 million, respectively. Overall this represents 12% unit growth in Nuedexta sales from the third quarter, and its $21.7 million in net sales (the company also earns royalties off Abreva sales) was 61% higher than the year-ago period.

Despite the higher revenue, and excluding a $20 million one-time payment to OptiNose for the development of experimental inhaled acute migraine treatment AVP-825, Avanir reported a net loss of $15.4 million, or $0.10 per share, which increased from the $11.7 million net loss, or $0.09 per share, reported last year. The culprit was a 50% increase in total operating expenses to $36.2 million.

For biopharmaceutical companies in the red, cash burn rate is another important statistic. Avanir finished the quarter having burned $10.1 million in cash, and is currently sitting upon $55.3 million in cash and cash equivalents. By comparison, the company burned through $45.4 million in cash via its operations in 2013, excluding its one-time OptiNose payment, meaning it likely has enough cash to make it through 2014.

Avanir's press release made no mention of forward revenue or EPS guidance.

Avanir shares are down 15% in after-hours trading as of this writing.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2760123, ~/Articles/ArticleHandler.aspx, 4/18/2014 4:35:20 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

TREND TRACKER: Get Rich When the Web Goes Dark

It's time to say "goodbye" to your Internet! One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism… The Economist is calling it "transformative"... but you'll probably just call it "how I made my millions." Big money is already on the move. Don't be too late to the party – find out the 1 stock to own when the Web goes dark.


Advertisement