Morrisville drug company Furiex loses $13 million in first quarter
05/07/2014 5:22 PM
02/15/2015 11:18 AM
Furiex Pharmaceuticals, which is being acquired for $1.1 billion, reported a first-quarter loss as a result of lower revenue.
The Morrisville-based company posted a net loss of $13.1 million, or $1.25 per share, compared to a profit of $9 million a year ago.
Royalty revenue totaled $6.4 million in the first quarter. A year ago the company posted $39.3 million in revenue, which included $9.3 million in royalties plus a total of $30 million in one-time milestone payments from two corporate partners.
Last week Furiex agreed to be acquired by New York-based Forest Laboratories for $95 a share. The deal also includes the possibility of shareholders receiving an additional $30 per share, which would push the total value of the deal to $1.5 billion.
The lofty sale price is driven by high expectations for Furiex’s experimental treatment for patients suffering from irritable bowel syndrome with diarrhea, eluxadoline. Indeed, Forest has agreed to sell Furiex’s treatments for Type 2 diabetes and premature ejaculation for $415 million.
Furiex’s first-quarter results were released Wednesday after the markets closed. Earlier Wednesday, Furiex shares closed at $104.19, up 61 cents. The company’s shares have risen 148 percent this year.
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