|
Constituent Review
|
J. Andrew Braswell, Equity Analyst
Newbridge Institutional Research
Data as of 3-30-07 |
|
 |
Nano
Biotechnolgy |
Review
3/7/07- FLML reported Q4 results after the close. Revenue for the quarter was $7.8M (+24% Y/Y), consisting primarily of $5.6M (+126% Y/Y) in license and research revenue including a $3M milestone payment from GSK for the approval of Coreg CR™. The net loss was $5.9M, or $0.25 per share, improved Y/Y from a net loss of $6.4M, or $0.28 per share. Total operating expenses were $16.2M including $2.8M of options expense, down from total expenses of $17.4M in Q4/05. FLML ended the year with $62.8M in cash
3/23/07- Announced that Coreg CR is now available throughout the U.S. Coreg CR is manufactured by FLML utilizing its Micropump® technology, and is marketed by GlaxoSmithKline.
Commentary
Carrying the momentum of a 60% Q4 advance, shares of FLML continued to rise through the first week of February to more than $37 per share. Investors began taking profits from the run-up as the overall market showed signs of deterioration, resulting in a 15% decline for the quarter. Next quarter’s results should begin to show the impact of Coreg CR sales, which will be the preeminent driver of the company’s revenue in 2007. FLML will manufacture the drug for GSK, earning product sales in addition to royalty and milestone payments. Current consensus for 2007 expects net income of $0.01 per share, though there is a huge divergence between the three estimates. Looking at the long-term, we reiterate that the company must find new co-development partners to secure its future beyond Coreg CR. |
