Neurocrine(US:NBIX)2022-08-04 20:08Financial Performance - INGREZZA net product sales for Q2 2022 reached $349.6 million, a 32% increase from $264.8 million in Q2 2021[92]. - Total net product sales for the first half of 2022 were $657.0 million, up 32% from $497.8 million in the same period last year[92]. - Collaboration revenues for Q2 2022 totaled $26.2 million, compared to $22.1 million in Q2 2021, driven by milestone revenue from MTPC's DYSVAL launch[93]. - For the three months ended June 30, 2022, the net loss was $16.9 million compared to a net income of $42.3 million for the same period in 2021, primarily due to a $70.0 million loss on extinguishment related to convertible senior notes repurchase[107]. Expenses and Losses - Total research and development expenses for the first half of 2022 were $238.1 million, significantly higher than $148.0 million in the same period last year[98]. - Sales, general and administrative expenses for Q2 2022 were $182.8 million, up from $143.2 million in Q2 2021, reflecting increased investment in commercial initiatives[104]. - The company recognized a $70.0 million loss on extinguishment related to the repurchase of $210.8 million of convertible senior notes in Q2 2022[105]. Cash Flow and Capital - Total cash, cash equivalents, and marketable securities decreased to $1,053.5 million as of June 30, 2022, down from $1,272.0 million as of December 31, 2021[109]. - Cash flows from operating activities for the six months ended June 30, 2022, were $97.6 million, a decrease from $190.5 million in the same period of 2021[110]. - Cash flows from financing activities included the repurchase of $210.8 million aggregate principal amount of convertible senior notes for $279.0 million in cash during the second quarter of 2022[113]. - The company anticipates significant future capital requirements, including potential payments of up to $10.8 billion upon achieving certain event-based milestones related to collaboration and license agreements[115]. Working Capital and Debt - Total working capital as of June 30, 2022, was $733.6 million, slightly up from $727.0 million as of December 31, 2021[109]. - Total debt outstanding decreased by $210.8 million to $170.4 million after the repurchase of approximately 55% of total debt in Q2 2022[89]. Legal Matters - The company filed multiple lawsuits against Teva Pharmaceuticals and its affiliates, as well as Zydus Pharmaceuticals and others, in the United States District Court for the District of Delaware, with trials scheduled for January 2, 2024[131][132][133]. - The lawsuits aim to prevent the sale of generic versions of INGREZZA, indicating the company's focus on protecting its intellectual property[132]. - The company believes that none of the ongoing legal claims will have a material adverse effect on its business or financial condition[134]. Research and Development - The FDA accepted the IND application for NBI-1117568 for schizophrenia, with a $30.0 million milestone expense anticipated in Q3 2022[89]. - The company suspended clinical trial activities in Russia and Ukraine due to the ongoing conflict, impacting certain development efforts[90]. Investments and Facilities - The company is investing in new campus facilities and scientific equipment, with a $7.6 million increase in capital expenditures compared to the previous year[112]. - The company has secured a lease agreement for a new four-building campus facility in San Diego, California, which will serve as its corporate headquarters upon completion[119]. Accounts Receivable - The company reported an increase in accounts receivable due to extended customer payment terms attributed to the expansion of its distribution network[111].