BioNap
Long/short equity

Analyzing Management Effectiveness At Cash Rich Depomed

On November 5, 2013, Depomed, Inc. (NASDAQ:DEPO) reported financial results for the third quarter ended September 30, 2013. Total revenues in the quarter were $37.5 million, comprised of $16.3 million in product sales, $15.4 million in royalties, and $5.8 million in licensing and collaborative fees. The breakdown of revenues for each line item can be seen below:

Gross margin in the quarter was an impressive 95.3%. Operating expenses were primarily driven by sales, general and administrative (SG&A) costs of $26.4 million. This was right in line with our forecast. R&D cost totaled only $1.3 million in the quarter, as the company has no active clinical programs. Net income for the quarter totaled $6.5 million, or $0.11 per share....

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