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InSite reports annual net income, but lack of operational funds imminent

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InSite Vision reported revenues of $30.8 million for 2013, compared with $21.6 million for 2012, according to a press release.

Net income was $5.8 million for the year, or $0.04 per share, compared with a net loss of $8.3 million, or $0.06 per share, in 2012.

However, the company expects that cash on hand, anticipated cash flow from operations and current cash commitments will only be able to fund operations until approximately September. If unable to secure additional funding before then, InSite will likely cease operations and liquidate its assets, the release said.

Akorn acquired Inspire Pharmaceuticals from Merck in November 2013, which included the right to commercialize AzaSite (azithromycin 1% ophthalmic solution). InSite’s royalties from AzaSite were 49% lower in 2013 than 2012 because of a terminated sales promotion and supply shortage of the drug. Akorn has no obligation to make minimum royalty payments to InSite for AzaSite.

If InSite does not receive royalties by May 15 to pay a subsidiary’s secured notes, including one that was due Feb. 15, the subsidiary will trigger an event of default under the indenture for the notes. InSite does not plan to use its funds to pay for the shortfall.