CPEX reports quarterly profit


CPEX Pharmaceutical Inc. made as much money last quarter as it lost during the same quarter in the previous year, thanks to abandoning its effort to develop an insulin nasal spray and concentrating the one drug it already has.The Exeter-based provider of drugs delivered by alternative methods, reported net profit of $1.2 million or 46 cents a share, in the second quarter ending June 30, the same amount it lost in the second quarter of 2009. This was primarily due to $5.8 million in revenue -- a 29 percent increase year over year -- from royalties from its only product Testim, an application that delivers testosterone through the skin.The company also decreased research and development costs by $1.7 million since it is no longer engaged in clinical trials of Nasulin, a nose spray for insulin. This, however, was offset by an increase of $421,000 spent on advisory and consulting services, partly to fight off a takeover attempt by a large activist shareholder, and partly to consider strategic alternatives – including possible sale of the company. That activist shareholder had argued that the company should abandon Nasulin to concentrate on Testim, but the end result is that the company might end up going to someone else.“The Board of Directors is reviewing strategic alternatives to maximize shareholder value and expects to announce the results of this process during the third quarter of 2010,” said John A. Sedor, CPEX president and chief executive officer.Year to date, CPEX’s net income was $225,000 (9 cents a share) compared to net loss for the first half of 2009 of $1.7 million.CPEX shares closed at $26.50 at the end of trading on Monday. -- BOB SANDERS/NEW HAMPSHIRE BUSINESS REVIEW
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