Flamel Technologies (FLML) saw its loss narrow to $22.30 million, or $0.54 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $28.08 million, or $0.69 a share. On adjusted basis, net loss for the quarter stood at $3.50 million, or $0.08 a share compared with a net profit of $13.14 million, or $0.32 a share in the last year period.
Revenue during the quarter plunged 32.18 percent to $32.09 million from $47.31 million in the previous year period. Gross margin for the quarter contracted 445 basis points over the previous year period to 91.14 percent. Operating margin for the quarter stood at negative 50.46 percent as compared to a negative 30.62 percent for the previous year period.
Operating loss for the quarter was $16.19 million, compared with an operating loss of $14.49 million in the previous year period.
However, the adjusted operating income for the quarter stood at $2.48 million compared to $24.41 million in the prior year period. At the same time, adjusted operating margin contracted 4388 basis points in the quarter to 7.72 percent from 51.59 percent in the last year period.
Michael Anderson, Flamel's chief executive officer, commented, "Our base business, consisting of Bloxiverz® (neostigmine methylsulfate), Vazculep® (phenylephrine hydrochloride) and Akovaz™ (ephedrine sulfate), remained strong during the third quarter with revenues coming in just above top line consensus. Although we were able to maintain strong share in the neostigmine market at about forty percent (40%) during the third quarter, the overall market volume slightly declined. This, in addition to a small loss in price, resulted in lower quarter over quarter sales of Bloxiverz, at $15.6 million for the quarter. The phenylephrine business remained stable with third quarter 2016 sales of $9.3 million, relatively in line with the previous quarter after adjusting for our change in revenue recognition."
Operating cash flow drops significantly
Flamel Technologies has generated cash of $11.16 million from operating activities during the nine month period, down 80.76 percent or $46.84 million, when compared with the last year period.
The company has spent $50.09 million cash to meet investing activities during the nine month period as against cash outgo of $13.28 million in the last year period.
The company has spent $8.01 million cash to carry out financing activities during the nine month period as against cash outgo of $16.25 million in the last year period.
Cash and cash equivalents stood at $18.78 million as on Sep. 30, 2016, down 71.49 percent or $47.08 million from $65.86 million on Sep. 30, 2015.
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