Jason Napodano, CFA
Research analyst, medium-term horizon, biotech, small-cap

Put This Specialty Pharma In Your Portfolio

On March 12, 2014, Depomed, Inc. (NASDAQ:DEPO) reported financial results for the fourth quarter and full year ended December 31, 2013. Total revenues in the quarter were $40.6 million, comprised of $18.8 million in product sales, $18.5 million in royalties (of which $18.1 million was non-cash associate with the PDL BioPharma transaction), and $3.3 million in licensing and collaborative fees. Revenues blew away our expectations of $20.1 million, but we note we did not expect the $18.1 million non-cash revenues during the quarter. Backing-out this accounting, the company's top-line results for the quarter of $22.5 million still handsomely beat our estimate.

Getting to the $18.1 million, we remind investors that back in October 2013, Depomed sold certain interests...

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