ISPH » Topics » Selling and Marketing Expenses

This excerpt taken from the ISPH 10-Q filed May 7, 2009.

Selling and Marketing Expenses

Selling and marketing expenses were approximately $13.0 million for the three months ended March 31, 2009, as compared to approximately $16.2 million for the same period in 2008. The decrease in selling and marketing expenses of approximately $3.2 million, or 20%, for the three months ended March 31, 2009, as compared to the same period in 2008, was due to an overall reduction in promotional and marketing activities.

Our commercial organization currently focuses its promotional efforts on approximately 9,000 eye care specialists. Our selling and marketing expenses include all direct costs associated with the commercial organization, which include our sales force and marketing programs. Our sales force expenses include salaries, training and educational program costs, product sample costs, fleet management and travel. Our marketing and promotion expenses include product management, promotion, advertising, public relations, Phase 4 clinical trial costs, physician training and continuing medical education and administrative expenses. We adjust the timing, magnitude and targeting of our advertising, promotional, Phase 4 clinical trials and other commercial activities for our products based on seasonal trends and other factors, and accordingly, these costs can fluctuate from period to period.

Future selling and marketing expenses will depend on the level of our future commercialization activities. We expect selling and marketing expenses will increase in periods that immediately precede and follow product launches. In addition, if we in-license or out-license rights to products, our selling and marketing expenses may fluctuate significantly from prior periods.

 

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These excerpts taken from the ISPH 10-K filed Mar 13, 2009.

Selling and Marketing Expenses

 

Selling and marketing expenses were approximately $54.6 million for the year ended December 31, 2008, as compared to approximately $45.5 million in 2007 and approximately $25.3 million in 2006.

 

The increase in selling and marketing expenses of approximately $9.1 million, or 20%, for the year ended December 31, 2008, as compared to 2007, resulted from an overall increase in various expenses primarily associated with the full year commercialization of AzaSite, including a full year of expenses related to our expanded sales force and managed markets group. Additionally, we had increased marketing and promotional activities and Phase 4 program costs in 2008. We also incurred a general increase in annual salaries, personnel related expenses and stock-based compensation expense.

 

The increase in selling and marketing expenses of approximately $20.3 million, or 80%, for the year ended December 31, 2007, as compared to 2006, resulted from an overall increase in various expenses primarily associated with the launch activities related to AzaSite, including the expansion of our sales force and creation of our managed care group, as well as marketing and promotional activities. Additionally, we incurred a general increase in annual salaries, personnel related expenses and stock-based compensation expense.

 

Our commercial organization currently focuses its promotional efforts on approximately 9,000 eye care specialists. Our selling and marketing expenses include all direct costs associated with the commercial organization, which include our sales force and marketing programs. Our sales force expenses include salaries, training and educational program costs, product sample costs, fleet management and travel. Our marketing and promotion expenses include product management, promotion, advertising, public relations, Phase 4 clinical trial costs, physician training and continuing medical education and administrative expenses. We adjust the timing, magnitude and targeting of our advertising, promotional, Phase 4 clinical trials and other commercial activities for our products based on seasonal trends and other factors, and accordingly, these costs can fluctuate from period to period.

 

Future selling and marketing expenses will depend on the level of our future commercialization activities. We expect selling and marketing expenses will increase in periods that immediately precede and follow product launches. In addition, if we in-license or out-license rights to products, our selling and marketing expenses may fluctuate significantly from prior periods.

 

Selling and Marketing Expenses

STYLE="margin-top:0px;margin-bottom:-6px"> 

Selling and marketing expenses were approximately $54.6 million for the year
ended December 31, 2008, as compared to approximately $45.5 million in 2007 and approximately $25.3 million in 2006.

 

STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%">The increase in selling and marketing expenses of approximately $9.1 million, or 20%, for the year ended December 31, 2008, as compared to 2007,
resulted from an overall increase in various expenses primarily associated with the full year commercialization of AzaSite, including a full year of expenses related to our expanded sales force and managed markets group. Additionally, we had
increased marketing and promotional activities and Phase 4 program costs in 2008. We also incurred a general increase in annual salaries, personnel related expenses and stock-based compensation expense.

STYLE="margin-top:0px;margin-bottom:0px"> 

The increase in selling and marketing expenses of approximately $20.3
million, or 80%, for the year ended December 31, 2007, as compared to 2006, resulted from an overall increase in various expenses primarily associated with the launch activities related to AzaSite, including the expansion of our sales
force and creation of our managed care group, as well as marketing and promotional activities. Additionally, we incurred a general increase in annual salaries, personnel related expenses and stock-based compensation expense.

STYLE="margin-top:0px;margin-bottom:0px"> 

Our commercial organization currently focuses its promotional efforts on
approximately 9,000 eye care specialists. Our selling and marketing expenses include all direct costs associated with the commercial organization, which include our sales force and marketing programs. Our sales force expenses include salaries,
training and educational program costs, product sample costs, fleet management and travel. Our marketing and promotion expenses include product management, promotion, advertising, public relations, Phase 4 clinical trial costs, physician training
and continuing medical education and administrative expenses. We adjust the timing, magnitude and targeting of our advertising, promotional, Phase 4 clinical trials and other commercial activities for our products based on seasonal trends and other
factors, and accordingly, these costs can fluctuate from period to period.

 

FACE="Times New Roman" SIZE="2">Future selling and marketing expenses will depend on the level of our future commercialization activities. We expect selling and marketing expenses will increase in periods that immediately precede and follow product
launches. In addition, if we in-license or out-license rights to products, our selling and marketing expenses may fluctuate significantly from prior periods.

 

STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%">General and Administrative Expenses

 

STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%">General and administrative costs were approximately $14.5 million for the year ended December 31, 2008, as compared to approximately $14.0 million in
2007 and approximately $15.9 million in 2006.

 

The increase in
general and administrative expenses of approximately $554,000, or 4%, for the year ended December 31, 2008, as compared to 2007, was primarily due to a general increase in annual salaries, personnel related expenses and stock-based compensation
expense as well as an increase in legal and administrative expenses associated with our stockholder litigation and SEC investigation. Prior year general and administrative expenses reflect a large initial reimbursement of legal fees received from
our insurance provider related to our stockholder litigation and SEC investigation. These increases were partially offset by a reduction in consulting fees during 2008.

 

On September 30, 2008, the SEC approved a non-monetary settlement of the previously announced investigation of Inspire and two of our
officers by the SEC staff relating to our disclosures regarding a Phase 3 clinical trial of our dry eye product candidate, Prolacria. As a result of this settlement, we do not expect to incur future legal costs related to this investigation.

 

On July 26, 2007, the United States District Court for
the Middle District of North Carolina granted Inspire’s and the other defendants’ motion and dismissed the previously announced Consolidated Class Action

 


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Complaint with prejudice. On December 12, 2008, the Fourth Circuit of the Unites States Court of Appeals issued an opinion affirming the judgment of the
District Court. As a result of this dismissal, we do not expect to incur significant future legal costs related to this action.

 

STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%">The decrease in general and administrative expenses of approximately $1.9 million, or 12%, for the year ended December 31, 2007, as compared to 2006,
was primarily due to lower legal and administrative expenses as a result of reduced legal defense activities associated with our stockholder litigation and SEC investigation, combined with reimbursement of certain legal costs covered under our
insurance policies. Legal fees, excluding amounts reimbursed, were approximately $2.0 million for the year ended December 31, 2007, as compared to approximately $4.1 million in 2006. The decrease in legal costs was partially offset by a general
increase in annual salaries, personnel related expenses and stock-based compensation expense.

 

FACE="Times New Roman" SIZE="2">Our general and administrative expenses consist primarily of personnel, facility and related costs for general corporate functions, including business development, finance, accounting, legal, human resources,
quality/compliance, facilities and information systems.

 

Future
general and administrative expenses will depend on the level and extent of support required to conduct our future research and development, commercialization, business development, and corporate activities.

STYLE="margin-top:0px;margin-bottom:0px"> 

This excerpt taken from the ISPH 10-Q filed Oct 31, 2008.

Selling and Marketing Expenses

Selling and marketing expenses were approximately $42.9 million for the nine months ended September 30, 2008, as compared to approximately $32.2 million for the same period in 2007. The increase in selling and marketing expenses of approximately $10.7 million, or 33%, for the nine months ended September 30, 2008, as compared to the same period in 2007, resulted from an overall increase in various expenses primarily associated with the commercialization of AzaSite, including the expansion of our sales force and creation of our managed markets group, as well as marketing and promotional activities and Phase 4 program costs. We also incurred a general increase in annual salaries, personnel related expenses and stock-based compensation expense.

Future selling and marketing expenses will depend on the level of our future commercialization activities. We expect selling and marketing expenses will increase in periods that immediately precede and follow product launches. In addition, if we in-license or out-license rights to products, our selling and marketing expenses may fluctuate significantly from prior periods.

 

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This excerpt taken from the ISPH 10-Q filed Aug 11, 2008.

Selling and Marketing Expenses

Selling and marketing expenses were approximately $29.1 million for the six months ended June 30, 2008, as compared to approximately $17.9 million for the same period in 2007. The increase in selling and marketing expenses of approximately $11.2 million, or 63%, for the six months ended June 30, 2008, as compared to the same period in 2007, resulted from an overall increase in various expenses primarily associated with the commercialization of AzaSite, including the expansion of our sales force and creation of our managed markets group, as well as marketing and promotional activities and Phase 4 program costs. In addition, due to the seasonal demand for Elestat, our selling and marketing expenses related to this product are generally higher in the first half of the year. We also incurred a general increase in annual salaries, personnel related expenses and stock-based compensation expense.

Future selling and marketing expenses will depend on the level of our future commercialization activities. We expect selling and marketing expenses will increase in periods that immediately precede and follow product launches. In addition, if we in-license or out-license rights to products, our selling and marketing expenses may fluctuate significantly from prior periods.

 

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This excerpt taken from the ISPH 10-Q filed May 9, 2008.

Selling and Marketing Expenses

Selling and marketing expenses were approximately $16.2 million for the three months ended March 31, 2008, as compared to approximately $7.5 million for the same period in 2007. The increase in selling and marketing expenses of approximately $8.7 million, or 115%, for the three months ended March 31, 2008, as compared to the same period in 2007, resulted from an overall increase in various expenses primarily associated with the commercialization of AzaSite, including the expansion of our sales force and creation of our managed markets group, as well as marketing and promotional activities and Phase 4 program costs. In addition, due to the seasonal demand of Elestat, our selling and marketing expenses are generally higher in the first quarter of the year preceding the Spring allergy season. Additionally, we incurred a general increase in annual salaries, personnel related expenses and stock-based compensation expense.

Our commercial organization currently focuses its promotional efforts on approximately 10,500 select pediatricians, primary care physicians, eye care professionals and allergists for AzaSite, Restasis and Elestat. Our selling and marketing expenses include all direct costs associated with the commercial organization, which include our

 

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sales force and marketing programs. Our sales force expenses include salaries, training and educational program costs, product sample costs, fleet management and travel. Our marketing and promotion expenses include product management, promotion, advertising, public relations, Phase 4 clinical trial costs, physician training and continuing medical education and administrative expenses. We adjust the timing, magnitude and targeting of our advertising, promotional, Phase 4 clinical trials and other commercial activities for our products based on seasonal trends and other factors, and accordingly, these costs can fluctuate from period to period.

We have started a variety of comprehensive Phase 4 programs related to AzaSite in order to obtain additional scientific data related to its pharmacokinetic profile, anti-microbial effects, anti-inflammatory effects, and safety and efficacy in other ocular conditions such as lid margin disease. The costs for Phase 4 clinical trials could fluctuate significantly from period to period depending on the magnitude and timing of Phase 4 programs.

Future selling and marketing expenses will depend on the level of our future commercialization activities. We expect selling and marketing expenses will increase in periods that immediately precede and follow product launches. In addition, if we in-license or out-license rights to products, our selling and marketing expenses may fluctuate significantly from prior periods.

This excerpt taken from the ISPH 10-K filed Mar 14, 2008.

Selling and Marketing Expenses

 

Selling and marketing expenses were approximately $45.5 million for the year ended December 31, 2007, as compared to approximately $25.3 million in 2006 and approximately $23.2 million in 2005.

 

The increase in selling and marketing expenses of approximately $20.3 million, or 80%, for the year ended December 31, 2007, as compared to 2006, resulted from an overall increase in various expenses primarily associated with the launch activities related to AzaSite, including the expansion of our sales force and creation of our managed care group, as well as marketing and promotional activities. Additionally, we incurred a general increase in annual salaries, personnel related expenses and stock-based compensation expense.

 

The increase in selling and marketing expenses for the year December 31, 2006, as compared to 2005, resulted from an overall increase in promotional activities, primarily the increased costs associated with our sales force including increased salary, personnel related expenses and stock-based compensation expense.

 

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Our commercial organization currently focuses its promotional efforts on approximately 12,000 select pediatricians, primary care physicians, eye care professionals and allergists for AzaSite, Restasis and Elestat. Our selling and marketing expenses include all direct costs associated with the commercial organization, which include our sales force and marketing programs. Our sales force expenses include salaries, training and educational program costs, product sample costs, fleet management and travel. Our marketing and promotion expenses include product management, promotion, advertising, public relations, Phase 4 clinical trial costs, physician training and continuing medical education and administrative expenses. We adjust the timing, magnitude and targeting of our advertising, promotional, Phase 4 clinical trials and other commercial activities for our products based on seasonal trends and other factors, and accordingly, these costs can fluctuate from period to period.

 

We have started a variety of comprehensive Phase 4 programs related to AzaSite in order to obtain additional scientific data related to its pharmacokinetic profile, anti-microbial effects, anti-inflammatory effects, and safety and efficacy in other ocular conditions such as lid margin disease. The costs for these Phase 4 clinical trials will be reflected in our 2008 selling and marketing expenses and could fluctuate from period to period.

 

Future selling and marketing expenses will depend on the level of our future commercialization activities. We expect selling and marketing expenses will increase in periods that immediately precede and follow product launches, including the periods following our August 2007 launch of AzaSite. In addition, if we in-license or out-license rights to products, our selling and marketing expenses may fluctuate significantly from prior periods.

 

This excerpt taken from the ISPH 10-Q filed Nov 9, 2007.

Selling and Marketing Expenses

Selling and marketing expenses were approximately $32.2 million for the nine months ended September 30, 2007, as compared to approximately $19.8 million for the same period in 2006. The increase in selling and marketing expenses of approximately $12.4 million, or 63%, for the nine months ended September 30, 2007, as compared to the same period in 2006, resulted from an overall increase in various expenses associated with the launch activities related to AzaSite, including the expansion of our sales force as well as marketing and promotional activities, particularly relating to our AzaSite product. We have also incurred a general increase in the costs associated with our sales force including increased salary, personnel related expenses and stock-based compensation expense.

 

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Future selling and marketing expenses will depend on the level of our future commercialization activities. We expect selling and marketing expenses will increase in periods that immediately precede and follow product launches, including the periods following our August 2007 launch of AzaSite.

This excerpt taken from the ISPH 10-Q filed Aug 9, 2007.

Selling and Marketing Expenses

Selling and marketing expenses were approximately $17.9 million for the six months ended June 30, 2007, as compared to approximately $13.6 million for the same period in 2006. The increase in selling and marketing expenses of approximately $4.3 million, or 32%, for the six months ended June 30, 2007, as compared to the same period in 2006, resulted from an overall increase in various expenses associated with the pre-launch activities related to AzaSite, including the expansion of our sales force and other marketing and promotional activities. We have also incurred a general increase in the costs associated with our sales force including increased salary, personnel related expenses and stock-based compensation expense.

Future selling and marketing expenses will depend on the level of our future commercialization activities. We expect selling and marketing expenses will increase in periods that immediately precede and follow product launches, including the periods surrounding our launch of AzaSite in the third quarter of 2007.

 

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This excerpt taken from the ISPH 10-Q filed May 10, 2007.

Selling and Marketing Expenses

Selling and marketing expenses were approximately $7.5 million for the three months ended March 31, 2007, as compared to approximately $7.1 million for the same period in 2006. The increase in selling and marketing expenses for the three months ended March 31, 2007, as compared to the same period in 2006, resulted from an overall increase in promotional activities, primarily the increased costs associated with our sales force including increased salary, personnel related expenses and stock-based compensation expense, as well as activities related to the anticipated approval and launch of AzaSite. We adjust the timing, magnitude and targeting of our advertising, promotional, Phase 4 clinical trials and other commercial activities for Elestat and Restasis based on seasonal trends and other factors.

Our commercial organization currently focuses its promotional efforts for Elestat and Restasis on approximately 8,500 highly prescribing ophthalmologists, optometrists and allergists in our target universe. In launching AzaSite, we plan to expand our existing sales force to a total of 98 representatives who will call on eye care professionals, who we currently call on, and select high prescribing pediatricians and primary care physicians. Our selling and marketing expenses include all direct

 

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costs associated with the commercial organization, which include our sales force and marketing programs. Our sales force expenses include salaries, training and educational program costs, product sample costs, fleet management and travel. Our marketing and promotion expenses include product management, promotion, advertising, public relations, Phase 4 clinical trial costs, physician training and continuing medical education and administrative expenses.

Future selling and marketing expenses will depend on the level of our future commercialization activities. We expect selling and marketing expenses will increase in periods that immediately precede and follow product launches.

This excerpt taken from the ISPH 10-K filed Mar 16, 2007.

Selling and Marketing Expenses

 

Selling and marketing expenses were approximately $25.3 million for the year ended December 31, 2006, as compared to approximately $23.2 million in 2005 and approximately $21.8 million in 2004. Included in selling and marketing expenses for the year ended December 31, 2006, is approximately $293,000 of stock-based compensation expense related to our adoption of SFAS No. 123(R) effective January 1, 2006, including stock-based compensation expense related to restricted stock units issued for the first time in July 2006. There is no stock-based compensation expense included in selling and marketing for the years ended December 31, 2005 and 2004, respectively, due to our adoption of SFAS No. 123(R) using the modified prospective method.

 

The increase in selling and marketing expenses for the year December 31, 2006, as compared to 2005, resulted from an overall increase in promotional activities, primarily the increased costs associated with our sales force including increased salary, personnel related expenses and stock-based compensation expense. We adjust the timing, magnitude and targeting of our advertising, promotional, Phase 4 clinical trials and other commercial activities for Elestat and Restasis based on seasonal trends and other factors. The increase in selling and marketing expenses in 2005, as compared to 2004, resulted from a full year of active promotion of Elestat and Restasis and expanded commercial activity as we continued to build the Elestat brand.

 

Our commercial organization focuses its promotional efforts on approximately 8,500 highly prescribing ophthalmologists, optometrists and allergists in our target universe. Our selling and marketing expenses include all direct costs associated with the commercial organization, which include our sales force and marketing programs. Our sales force expenses include salaries, training and educational program costs, product sample costs, fleet management and travel. Our marketing and promotion expenses include product management, promotion, advertising, public relations, Phase 4 clinical trial costs, physician training and continuing medical education and administrative expenses.

 

Future selling and marketing expenses will depend on the level of our future commercialization activities. We expect selling and marketing expenses will increase in periods that may immediately precede and follow product launches.

 

This excerpt taken from the ISPH 10-Q filed Nov 7, 2006.

Selling and Marketing Expenses

Selling and marketing expenses were approximately $19.8 million for the nine months ended September 30, 2006, as compared to approximately $18.2 million for the same period in 2005. Included in selling and marketing

 

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expenses for the nine months ended September 30, 2006, is approximately $187,000 of stock-based compensation expense related to our adoption of SFAS No. 123(R) effective January 1, 2006, including stock-based compensation expense related to restricted stock units issued for the first time in July 2006. There is no stock-based compensation expense included in selling and marketing for the nine months ended September 30, 2005 due to our adoption of SFAS No. 123(R) using the modified prospective method. The increase in selling and marketing expenses for the nine months ended September 30, 2006, as compared to the same period in 2005, resulted primarily from an overall increase in promotional activities and increased costs associated with our sales force including increased salary, personnel related expenses and stock-based compensation expense.

Future selling and marketing expenses will depend on the level of our future commercialization activities. We expect selling and marketing expenses will increase in periods that may immediately precede and follow product launches.

This excerpt taken from the ISPH 10-Q filed Aug 8, 2006.

Selling and Marketing Expenses

Selling and marketing expenses were approximately $13.6 million for the six months ended June 30, 2006, as compared to approximately $13.1 million for the same period in 2005. Included in selling and marketing expenses for the six months ended June 30, 2006, is approximately $110,000 of stock-based compensation expense related to our

 

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adoption of SFAS No. 123(R) effective January 1, 2006. There is no stock-based compensation expense included in selling and marketing for the six months ended June 30, 2005 due to our use of the modified prospective method of adoption of SFAS No. 123(R). The increase in selling and marketing expenses for the six months ended June 30, 2006, as compared to the same period in 2005, resulted primarily from an increase in promotional cost due to the timing of these activities, and increased costs associated with our sales force including increased salary, personnel related expenses and stock-based compensation expense.

Future selling and marketing expenses will depend on the level of our future commercialization activities. We expect selling and marketing expenses will increase in periods that may immediately precede and follow product launches.

This excerpt taken from the ISPH 10-Q filed May 10, 2006.

Selling and Marketing Expenses

Selling and marketing expenses were $7.1 million for the three months ended March 31, 2006, as compared to $7.4 million for the same period in 2005. Included in selling and marketing expenses for the three months ended March 31, 2006, is approximately $51,000 of stock-based compensation expense related to our adoption of SFAS No. 123(R) effective January 1, 2006. There is no stock-based compensation expense included in sales and marketing for the period ended March 31, 2005 due to our use of the modified prospective method of adoption of SFAS No. 123(R). The decrease in selling and marketing expenses for the three months ended March 31, 2006, as compared to the same period in 2005, resulted from less promotional cost due to the timing of these activities. Following the launch of Elestat and the start of co-promotion activities for both the Elestat and Restasis brands, we continue to adjust the timing and targeting of our advertising, promotional, Phase 4 clinical trials and other commercial activities for Elestat and Restasis based on seasonal trends and other factors.

Our commercial organization focuses its promotional efforts on approximately 8,500 highly prescribing ophthalmologists, optometrists and allergists in our target universe. Our selling and marketing expenses include all direct costs associated with the commercial organization, which include our sales force and marketing programs. Our sales force expenses include salaries, training and educational program costs, product sample costs, fleet management and travel. Our marketing and promotion expenses include product management, promotion, advertising, public relations, Phase 4 clinical trial costs, physician training and continuing medical education and administrative expenses.

Future selling and marketing expenses will depend on the level of our future commercialization activities. We expect selling and marketing expenses will increase in periods that may immediately precede and follow product launches.

This excerpt taken from the ISPH 10-K filed Mar 16, 2006.

Selling and Marketing Expenses

 

Selling and marketing expenses for the year ended December 31, 2005 were $23.2 million, compared to $21.8 million in 2004 and $2.8 million in 2003. The increase in selling and marketing expenses in 2005, as compared to 2004 resulted from a full year of active promotion of Elestat® and Restasis® and expanded commercial activity as we continue to build the Elestat® brand. Following the launch of Elestat® and the start of co-promotion activities for both the Elestat® and Restasis® brands, we continue to adjust the timing and targeting of our advertising, promotional, Phase 4 clinical trials and other commercial activities for Elestat® and Restasis® based on seasonal trends and other factors. The increase in selling and marketing expenses in 2004, as compared to 2003, resulted from Inspire beginning commercial operations in the first quarter of 2004, including increases in personnel, advertising and promotion expenses and other administrative costs to enable our active co-promotion of Elestat® and Restasis®.

 

Our commercial organization focuses its promotional efforts on approximately 8,500 highly prescribing ophthalmologists, optometrists and allergists in our target universe. Our selling and marketing expenses include all direct costs associated with the commercial organization, which include our sales force and marketing programs. Our sales force expenses include salaries, training and educational program costs, product sample costs, fleet management and travel. Our marketing and promotion expenses include product management, promotion, advertising, public relations, Phase 4 clinical trial costs, physician training and continuing medical education and administrative expenses.

 

Future selling and marketing expenses will depend on the level of our future commercialization activities. We expect selling and marketing expenses will increase in periods that may immediately precede and follow product launches. In addition, our future selling and marketing expenses will now have a component of stock-based compensation for unvested options as of January 1, 2006, and thus will increase as this expense has not been included in the past.

 

This excerpt taken from the ISPH 10-Q filed Nov 8, 2005.

Selling and Marketing Expenses

 

Selling and marketing expenses were $18.2 million for the nine months ended September 30, 2005, as compared to $16.7 million for the same period in 2004. The increase in 2005 selling and marketing expenses resulted from a full nine months of active promotion of Restasis® and Elestat®, and expanded commercial activity as we continue to build the Elestat® brand. Expenses in 2004 related to co-promotion activities for Restasis® and the commercial launch and promotion of Elestat® in February 2004. Future selling and marketing expenses will depend on the level of our future commercialization activities. We expect selling and marketing expenses will increase in periods that immediately precede and follow product launches.

 

This excerpt taken from the ISPH 10-Q filed Aug 9, 2005.

Selling and Marketing Expenses

 

Selling and marketing expenses were $13.1 million for the six months ended June 30, 2005, as compared to $11.1 million for the same period in 2004. The increase in selling and marketing expenses resulted from a full six months of active promotion of Restasis® and Elestat®, and expanded commercial activity as we continue to build the Elestat® brand in 2005. Expenses in 2004 related to co-promotion activities for Restasis® and the commercial launch and promotion of Elestat® in February 2004. Future selling and marketing expenses will depend on the level of our future commercialization activities. We expect selling and marketing expenses will increase in periods that immediately precede and follow product launches.

 

This excerpt taken from the ISPH 10-Q filed May 10, 2005.

Selling and Marketing Expenses

 

Selling and marketing expenses were $7.4 million for the three months ended March 31, 2005, as compared to $5.9 million for the same period in 2004. The increase in selling and marketing expenses resulted from expanded commercial activity as we continue to build the ElestatTM brand in 2005, including increased commercial expenses for personnel, advertising, promotion, and Phase 4 clinical trial costs, as well as other administrative costs to enable our active co-promotion of Restasis® and ElestatTM. Expenses in 2004 related to co-promotion activities for Restasis® and the commercial launch and promotion of ElestatTM in February 2004. Our commercial organization focuses its promotional efforts on approximately 8,500 highly prescribing ophthalmologists, optometrists and allergists in the United States.

 

Our selling and marketing expenses include all direct costs for our sales force and marketing programs. Our sales force expenses include training costs, salaries, fleet management and travel costs. Our marketing expenses include product management, promotion, advertising, public relations, Phase 4 clinical trial costs, physician training and continued medical education and other administrative expenses. Future selling and marketing expenses will depend on the level of our future commercialization activities. We expect selling and marketing expenses will increase in periods that immediately precede and follow product launches.

 

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This excerpt taken from the ISPH 10-K filed Mar 11, 2005.

Selling and Marketing Expenses

 

Selling and marketing expenses for the year ended December 31, 2004 were $21.8 million, compared to $2.8 million in 2003 and $60,000 in 2002. The increase in selling and marketing expenses in 2004, as compared to 2003, resulted from our first year of commercial operations, including increases in personnel, advertising and promotion expenses and other administrative costs to enable our active co-promotion of Restasis® and Elestat.

 

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The increase in selling and marketing expenses in 2003, as compared to 2002, resulted from increases in personnel and other administrative costs as we began building our sales and marketing infrastructure in the fourth quarter of 2003 for the co-promotion of Elestat and Restasis®.

 

Our selling and marketing expenses include all direct costs for our sales force and marketing programs. Our sales force expenses include training costs, salaries, fleet management and travel costs. Our marketing expenses include product management, promotion, advertising, public relations, Phase 4 clinical trial costs, physician training and continued medical education and other administrative expenses. We have one Phase 4 clinical trial for Elestat ongoing and are planning to initiate an additional Phase 4 clinical trial in 2005.

 

In December 2003, we began hiring 64 territory managers and 6 regional sales directors to provide us with national sales coverage for our ophthalmic products. Our commercial organization focuses its promotional efforts on approximately 8,500 highly prescribing ophthalmologists, optometrists and allergists in the United States. We began co-promoting Restasis® in January 2004 and launched Elestat in February 2004. Future selling and marketing expenses will depend on the level of our future commercialization activities. We expect selling and marketing expenses will increase in periods that immediately precede and follow product launches.

 

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