Form: 8-K/A

Current report filing

December 14, 2009

Exhibit 99.2
OPKO Health, Inc.
Pro Forma Condensed Consolidated Balance Sheets
As of June 30, 2009
(unaudited)
(in thousands, except per share data)
                                 
    OPKO Health,     Pharma Genexx     Pro forma        
    Inc.     S.A. (a)     adjustments     Consolidated  
ASSETS
                               
Current assets
                               
Cash and cash equivalents
  $ 35,939     $ 270     $ (16,000 )   $ 20,209  
Marketable securities
    4,997       —       —       4,997  
Accounts receivables, net
    2,165       4,559       —       6,724  
Accounts receivable from related party
    —       1,745       —       1,745  
Inventory, net
    5,151       4,180       —       9,331  
Prepaid expenses and other current assets
    1,675       301       —       1,976  
 
                       
Total current assets
    49,927       11,055       (16,000 )     44,982  
Property and equipment
    560       17       —       577  
Intangible assets, net
    5,524       148       (148 )  b      14,024  
 
                    8,500    b         
Goodwill
    1,097       —       3,084    b      4,181  
Investment
    2,262       —       —       2,262  
Other assets
    335       6       —       341  
 
                       
TOTAL ASSETS
  $ 59,705     $ 11,226     $ (4,564 )   $ 66,367  
 
                       
 
                               
LIABILITIES AND SHAREHOLDERS EQUITY
                               
Current liabilities
                               
Accounts payable
  $ 2,201     $ 1,695     $ —     $ 3,896  
Accrued expenses
    4,014       1,048       —       5,062  
Current portion of notes payable and capital lease obligations
    86       3,919       —       4,005  
 
                       
Total current liabilities
    6,301       6,662       —       12,963  
Long-term liabilities and capital lease obligations
    2,595       —       —       2,595  
Line of credit with related party, net of unamortized discount of $101
    11,899       —       —       11,899  
 
                       
Total liabilities
    20,795       6,662       —       27,457  
 
                               
Commitments and contingencies
                               
 
                               
Shareholders’ equity
                               
Series A Preferred Stock — $0.01 par value, 4,000,000 shares authorized; 932,667 shares issued and outstanding (liquidation value $2,448)
    9       —       —       9  
Series C Preferred Stock — $0.01 par value, 500,000 shares authorized; No shares issued or outstanding
    —       —       —       —  
Common Stock — $0.01 par value, 500,000,000 shares authorized, 252,594,059 shares issued and outstanding
    2,526       —       —       2,526  
Treasury Stock — 45,154 shares
    (61 )     —       —       (61 )
Additional paid-in capital
    360,341       2,214       (2,214 )  c      360,341  
(Accumulated deficit) retained earnings
    (323,905 )     2,350       (2,350 )  c      (323,905 )
 
                       
Total shareholders’ equity
    38,910       4,564       (4,564 )     38,910  
 
                       
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
  $ 59,705     $ 11,226     $ (4,564 )   $ 66,367  
 
                       

1


 

OPKO Health, Inc.
Pro Forma Condensed Consolidated Statements of Operations
For the six months ended June 30, 2009
(unaudited)
(in thousands, except per share data)
                                 
    OPKO Health,     Pharma Genexx     Pro forma        
    Inc.     S.A. (a)     adjustments     Consolidated  
Revenue
  $ 4,648     $ 7,563     $ —     $ 12,211  
Cost of goods sold
    3,325       4,672       —       7,997  
 
                       
Gross margin
    1,323       2,891       —       4,214  
Operating expenses
                               
Selling, general and administrative
    6,183       1,286       —       7,469  
Research and development
    8,157       —       —       8,157  
Other operating expenses, principally amortization of intangible assets
    812       —       876    e      1,688  
 
                       
Total operating expenses
    15,152       1,286       876       17,314  
 
                       
Operating (loss) income
    (13,829 )     1,605       (876 )     (13,100 )
Other (expense) income, net
    (944 )     157       (880 )  d      (1,667 )
 
                       
(Loss) income before (benefit) provision for income taxes and investment loss
    (14,773 )     1,762       (1,756 )     (14,767 )
Income tax (benefit) provision
    (138 )     314       —       176  
 
                       
(Loss) income before investment loss
    (14,635 )     1,448       (1,756 )     (14,943 )
Loss from investment in investee
    (38 )     —       —       (38 )
 
                       
Net (loss) income
    (14,673 )     1,448       (1,756 )     (14,981 )
Preferred stock dividend
    (116 )     —       —       (116 )
 
                       
Net (loss) income attributable to common shareholders
  $ (14,789 )   $ 1,448     $ (1,756 )   $ (15,097 )
 
                       
(Loss) income per common share, basic
  $ (0.07 )   $ 1,206.67             $ (0.07 )
 
                         
(Loss) income per common share, diluted
  $ (0.07 )   $ 1,206.67             $ (0.07 )
 
                         
Weighted average number of shares outstanding, basic and diluted
    212,695,483       1,200               212,695,483  
 
                         

2


 

OPKO Health, Inc.
Pro Forma Condensed Consolidated Statements of Operations
For the year ended December 31, 2008
(unaudited)
(in thousands, except per share data)
                                 
    OPKO Health,     Pharma Genexx     Pro forma        
    Inc.     S.A. (a)     adjustments     Consolidated  
Revenue
  $ 9,440     $ 10,925     $ —     $ 20,365  
Cost of goods sold
    8,559       7,198       —       15,757  
 
                       
Gross margin
    881       3,727       —       4,608  
Operating expenses
                               
Selling, general and administrative
    14,790       2,306       —       17,096  
Research and development
    21,562       —       —       21,562  
Write-off of acquired in-process research and development
    1,398       —       —       1,398  
Other operating expenses, principally amortization of intangible assets
    1,694       —       1,751    e      3,445  
 
                       
Total operating expenses
    39,444       2,306       1,751       43,501  
 
                       
Operating (loss) income
    (38,563 )     1,421       (1,751 )     (38,893 )
Other (expense) income, net
    (1,354 )     (745 )     (1,760 )  d      (3,859 )
 
                       
(Loss) income before (benefit) provision for income taxes
    (39,917 )     676       (3,511 )     (42,752 )
Income tax (benefit) provision
    (83 )     74       —       (9 )
 
                       
Net (loss) income
    (39,834 )     602       (3,511 )     (42,743 )
Preferred stock dividend
    (217 )     —       —       (217 )
 
                       
Net (loss) income attributable to common shareholders
  $ (40,051 )   $ 602     $ (3,511 )   $ (42,960 )
 
                       
(Loss) income per common share, basic
  $ (0.21 )   $ 645.23             $ (0.23 )
 
                         
(Loss) income per common share, diluted
  $ (0.21 )   $ 645.23             $ (0.23 )
 
                         
Weighted average number of shares outstanding, basic and diluted
    187,713,041       933               187,713,041  
 
                         
Notes:
  (a)   Exchange rate for the Pro Forma Condensed Consolidated Balance Sheets is equivalent to the closing exchange rate on June 30, 2009 reflecting US$1 to 539.98 Chilean Pesos. Exchange rates for the Pro Forma Condensed Consolidated Statements of Operations are equivalent to the average exchange rate for the periods presented and are equivalent to US$1 to 523.92198 Chilean Pesos for the year ended December 31, 2008 and US$1 US to 598.20049 Chilean Pesos for the six months ended June 30, 2009, respectively.
 
  (b)   Reflects the elimination of Pharma Genexx’s recorded intangible assets and the addition of the intangible assets and goodwill initially identified in connection with the acquisition of Pharma Genexx by OPKO. This allocation is preliminary and subject to change.
 
  (c)   Reflects the elimination of Pharma Genexx’s equity capital.
 
  (d)   The pro forma interest expense assumes borrowing funds at an 11% annual interest rate for the purchase price of $16 million. The annual interest rate is based on OPKO’s current line of credit. The interest expense assumes the closing of the transaction and funds were borrowed on January 1, 2008.
 
  (e)   The pro forma amortization expense assumes the transaction closed on January 1, 2008. The following table reflects the purchase price allocation which is preliminary and subject to change.
             
Intangible asset   Purchase price allocation   Estimated useful life
Product registrations
  $ 4,637     10 years
Customer relationships
    3,433     3 years
Tradename
    430     3 years
Goodwill
    3,084     Indefinite
 
           
TOTAL
  $ 11,584      

3