Depomed Sinks After Earnings, Guidance Miss

DepoMed Inc. (DEPO) trades sharply lower late Friday, although remains in the upper end of its 52-week range, as investors react negatively to earnings and missed guidance.

For Q1, the company achieved total revenue of $76.5 million, consisting of $33.7 million of product sales, royalties, license and other revenue and $42.8 million of non-cash PDL royalty income. It reported a loss of $0.01 per share, some $0.10 to $0.11 of the Street estimate.

For the full year, the company guides for: Product sales of approximately $115 to $125 million; Total revenues of approximately $200 to $215 million, which includes non-cash revenues related to the PDL transaction and $15 million in potential milestones from Mallinckrodt; GAAP earnings per share of approximately $0.21 to $0.36 per share, which includes the non-cash PDL revenues and non-cash PDL interest expense; Non-GAAP adjusted earnings per share of break-even to $0.16 per share. The Street looks for $0.26.

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Anne-Marie Jackson

Anna grew up on a steady diet of 20th century literature, science-fiction movies and Viking lore. Unsurprisingly she turned into a technology geek with an inclination for history & fantasy.