Depomed stock rises after 4th-quarter loss narrows
Shares of Depomed Inc. rose in morning trading Friday, a day after the drug developer reported a narrower fourth-quarter loss, beating Wall Street expectations.
The Menlo Park, Calif., late Thursday reported a quarterly loss of $3.6 million, or 7 cents per share, compared with a loss of $11.2 million, or 22 cents per share, in the final quarter of 2008.
Revenue grew 52 percent to $13.2 million.
Analysts polled by Thomson Reuters expected a loss of 13 cents per share on $13.3 million in revenue.
Product sales revenue rose 37 percent to $10 million in the quarter. The company's diabetes treatment, Glumetza, is promoted by Santarus Inc. in the United States.
For the full year, Depomed said it lost $22 million, or 43 cents per share, on $57.7 million in revenue. In 2008, it lost $15.8 million, or 32 cents per share, on revenue of $34.8 million.
Depomed said operating expenses for the year included $23.6 million in promotion fee expenses to increase Glumetza sales.
Depomed said it expects to seek Food and Drug Administration approval in the first quarter for a drug intended to treat pain following the viral infection shingles.
The company's shares rose 17 cents, or 5.9 percent, to $3.04 in Friday morning trading. The stock has ranged from $1.70 to $6.40 over the past year.