Columbia Laboratories (Nasdaq: CBRX) swung to a profit in the third quarter as revenues soared by nearly 80%.
During the period, the company reported net income of $0.3 million, up from a net loss of $5.9 million in the same period last year.
Columbia said that this year's third quarter results are not typical of past quarters, due to the sale of the company's progesterone-related assets to Watson Pharmaceuticals, and the concurrent elimination of its debt in July.
The progesterone assets include Crinone/Prochieve, which is currently used as an infertile treatment, and is now undergoing testing for other indications such as the prevention of preterm birth.
Total net revenues for the company increased 79% to $14.2 million, driven primarily by $8.5 million in revenue related to the gain on the sale of the progesterone assets to Watson.
"Closing the Watson Transactions in early July greatly improved Columbia's future profit outlook," said president and CEO Frank C. Condella, Jr.
"Our focus now is the completion of the Pregnant Study. We eagerly anticipate reporting top-line results of this pivotal Phase III clinical trial next month. Strong positive data could trigger a $6 or $8 million milestone payment from Watson and pave the way for us to file an NDA in the first half of 2011," concluded Condella.
The company expects to report study results from the pregnant study in December.At quarter-end, cash and equivalents stood at $22.4 million.
Disclosure: no position