Furiex reports narrower loss as royalty revenues surge

Furiex Pharmaceuticals reported a narrower loss than Wall Street analysts expected Thursday as the Morrisville company's royalty revenues increased more than 350 percent in the fourth quarter.

Furiex had a net loss of $9.1 million in the quarter and reported a net loss per share of 90 cents, compared to 68 cents for the same period in 2011.

The consensus among analysts who cover the company was a net loss of $20.7 million and a net loss per share of $1.88.

Furiex's royalty revenues totaled $9.2 million in the fourth quarter and $20.5 million for the full year. Total revenues for the year were $40.5 million, up from $4.5 million in 2011.

In January, Furiex's stock surged 66 percent in a single day after the company's Japanese partner won U.S. approval for a trio of diabetes drugs. It was the biggest gain since Furiex became a standalone company in 2010.

The approval of three diabetes drugs - Nesina, Oseni and Kazano - represents the first revenue opportunity for Furiex in the U.S. market.

Under its agreement with partner Takeda Pharmaceutical Co., Furiex is entitled to receive a $25 million milestone payment as a result of the FDA approval as well as royalties on U.S. sales of the drugs.

Furiex is also receiving royalty payments from Takeda for the sale of two medications in Japan.

Furiex was spun out of Wilmington-based Pharmaceutical Product Development, one of the industry's largest contract research organizations.

The company has three other products under development for the U.S. and world markets, including an antibiotic, a drug for irritable bowel syndrome, and a treatment for premature ejaculation, which is already sold in Europe.