Intellipharmaceutics Turns To Profit In Q1 - Quick Facts

(RTTNews) - Intellipharmaceutics International Inc. (IPCI, I.TO), a pharmaceutical company specializing in the research, development and manufacture of novel and generic controlled-release and targeted-release oral solid dosage drugs, reported net income for the first-quarter ended February 28 2014 of $2.2 million or $0.09 per share, compared with a loss of $1.3 million, or $0.07 per share in the first-quarter ended February 28 2013. The net income was attributed to the licensing revenue and milestone revenue. The net loss for the last year was attributed to the ongoing R&D and selling, general and administrative expenses, partially offset by the gain in fair value adjustment of derivative liabilities.

The fair value adjustment of derivative liabilities in the recent quarter was nil versus a gain of $1.2 million in the prior period quarter.

Revenue related to the company's license and commercialization agreement with Par Pharmaceutical, Inc was $4.7 million versus nil in the prior year quarter. The $4.7 million revenue in the latest-quarter derived principally from a full quarter of commercial sales of its first product, 15 and 30 mg strengths of dexmethylphenidate hydrochloride extended-release capsules (generic Focalin XR), which recently received final FDA approval.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.11 per share and revenues of $4.49 million for the quarter. Analysts' estimates typically exclude special items.