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Company Update (NYSE:OPK): Opko Health Inc. Reports Improved Financial and Operating Results

Opko Health Inc. (NASDAQ:OPK) reports financial and operating results for the three and six months ended June 30, 2016.

Financial Highlights

  • Consolidated revenues for the three months ended June 30, 2016 increased to $357.1 million from $42.4 million for the three months endedJune 30, 2015. The 2016 period includes revenue from BioReference Laboratories and EirGen which were acquired in August and May 2015, respectively. In addition, the 2016 period includes $50.0 million of revenue related to our license of RAYALDEE to VFMCRP.
  • Net income for the three months ended June 30, 2016 was $15.5 million compared with net loss of $42.8 million for the 2015 period. Net income (loss) during the three month periods include significant non-recurring and non-cash activities, including:
    • Upfront payment for the license of RAYALDEE to VFMCRP of $50.0 million; and
    • Other income and (expense) was $5.1 million and ($16.8) million in the 2016 and 2015 periods, respectively, primarily related to the change in fair value of derivative instruments. The change in fair value is principally related to an embedded derivative in OPKO’sJanuary 2013 convertible senior notes due in 2033.
  • Cash, cash equivalents and marketable securities were $171.6 million as of June 30, 2016.

Business Highlights

  • VFMCRP and OPKO Health Enter into License and Option Agreement for OPKO’s RAYALDEE: OPKO entered into an agreement with VFMCRP for the development and commercialization of RAYALDEE in Europe, Canada, Mexico, Australia, South Korea and certain other international markets for the treatment of secondary hyperparathyroidism (SHPT) in patients with chronic kidney disease (CKD) and vitamin D insufficiency. Under the terms of the agreement, OPKO received an upfront payment of $50 million, and will receive up to $232 million in regulatory and sales based milestones. In addition, VFMCRP will pay OPKO tiered, double digit royalties on sales of the product. OPKO and VFMCRP will also collaborate to...