SAN DIEGO, May 15, 2018 /PRNewswire/ -- Imprimis
Pharmaceuticals, Inc. (NASDAQ: IMMY) today reported financial
results for the first quarter 2018.
Notable Highlights:
- Revenue of $8.9 million, up 45%
year-over-year
- Gross ophthalmology-related revenue of $7.0 million, up 91% year-over-year
- Gross Margin of 54%, compared to 45% in Q1 2017
- Adjusted EBITDA loss (a non-GAAP measure) of $431,000, an 85% improvement year-over-year, and
46% improvement quarter-over-quarter
- First month of Adjusted EBITDA profitability in March
- 16 straight quarters of double digit or better year-over-year
revenue growth
- Eton Pharmaceuticals filed its first new drug application (NDA)
with the US Food and Drug Administration, advanced programs that
are expected to result in additional NDA filings over the next 12
months, and increased active drug development programs from four to
eight
- Surface Pharmaceuticals announced a $20
million Series A financing at $3.30 per share with Flying L Partners, a premier
ophthalmology-focused investor with a strong track record of
success
Mark L. Baum, CEO of Imprimis,
stated, "Because of our unique value proposition, the
infrastructure we've built, the drug formulation intellectual
property portfolio we own, and a growing loyal customer base, we
are seeing increased momentum towards reaching our financial
goals. This is evidenced by a quarterly revenue increase that
was our largest year-over-year percentage gain since the fourth
quarter of 2016. Importantly, we continued to narrow our
Adjusted EBITDA loss, roughly halving it again sequentially; and we
had a profitable March, which was followed by an even better
April. Four full years into our commercial operations, with a
compound annual growth rate of 153%, I remain bullish on the
business and our ability to navigate through challenges and deliver
on our goals for the foreseeable future."
Commenting on Imprimis's strategy to develop certain of its drug
formulation assets as FDA approved products, Baum concluded, "In
addition to seeing great progress with our first deconsolidated
company, Eton Pharmaceuticals, we are also gratified by the
$20 million financing and
deconsolidation we recently completed for Surface
Pharmaceuticals. In addition to the investment, our partner
in the transaction, Flying L Partners, contributes decades of
tremendous accomplishment in ophthalmology, which will add
intrinsic value to Surface. With the completion of the
Surface financing and deconsolidation, Imprimis is now focusing on
concluding work we have been undertaking on other 505(b)(2)
opportunities from our drug formulation library, which we hope to
discuss more in the future."
Imprimis Pharmaceuticals has retained ownership of 3.5 million
shares of Eton Pharmaceuticals common stock and 3.5 million shares
of Surface Pharmaceuticals common stock. In addition,
Imprimis owns mid-single digit royalty rights on all contributed
drugs. Imprimis retains royalty rights on two patent-pending
sterile injectable drug candidates contributed to Eton, one
targeting infantile spasms and the other targeting Peyronie's
Disease. Imprimis retains royalty rights on three
patent-pending drug candidates contributed to Surface, two are
topical eye drop drug candidates, the third is an oral capsule, all
of which target certain ocular surface diseases.
Financial Summary:
Selected highlights regarding operating results for the three
months ended March 31, 2018 and for
the same period in 2017 are as follows (in thousands, except per
share data):
|
For the three
months
ended March 31, 2018
|
For the three
months
ended March 31, 2017
|
Total
Revenues
|
$8,865
|
$6,097
|
Cost of
Sales
|
(4,071)
|
(3,357)
|
Gross
Profit
|
4,794
|
2,740
|
Selling, General
& Administrative Expenses
|
(6,488)
|
(6,811)
|
Research &
Development Expenses
|
(87)
|
(160)
|
Operating
Loss
|
(1,781)
|
(4,231)
|
Other Expense,
net
|
(1,732)
|
(775)
|
Net
Loss
|
$(3,513)
|
$
(5,006)
|
Adjusted EBITDA
In addition to the company's results of operations determined in
accordance with U.S. generally accepted accounting principles
(GAAP), which are presented and discussed above, management also
utilizes adjusted EBITDA, an unaudited financial measure that is
not calculated in accordance with GAAP, to evaluate the company's
financial results and performance and to plan and forecast future
periods. Adjusted EBITDA is considered a "non-GAAP" financial
measure within the meaning of Regulation G promulgated by the
SEC. Management believes that this non-GAAP financial measure
reflects an additional way of viewing aspects of the company's
operations that, when viewed with GAAP results, provides a more
complete understanding of the company's results of operations and
the factors and trends affecting its business. Management
believes adjusted EBITDA provides meaningful supplemental
information regarding the company's performance because (i) it
allows for greater transparency with respect to key metrics used by
management in its financial and operational decision-making;
(ii) it excludes the impact of non-cash or, when specified,
non-recurring items that are not directly attributable to the
company's core operating performance and that may obscure trends in
the company's core operating performance; and (iii) it is used
by institutional investors and the analyst community to help
analyze the company's results. However, adjusted EBITDA and
any other non-GAAP financial measures should be considered as a
supplement to, and not as a substitute for, or superior to, the
corresponding measures calculated in accordance with GAAP. Further,
non-GAAP financial measures used by the company and the manner in
which they are calculated may differ from the non-GAAP financial
measures or the calculations of the same non-GAAP financial
measures used by other companies, including the company's
competitors.
The company defines adjusted EBITDA as net income (loss)
excluding the effects of interest, taxes, depreciation,
amortization, stock-based compensation, other income (expense) and,
if any and when specified, other non-recurring income or expense
items. The company believes that the most directly comparable
GAAP financial measure to adjusted EBITDA is net loss. Adjusted
EBITDA has limitations and should not be considered as an
alternative to gross profit or net loss as a measure of operating
performance or to net cash provided by (used in) operating,
investing or financing activities as a measure of ability to meet
cash needs.
The following is a reconciliation of adjusted EBITDA, a non-GAAP
measure to the most comparable GAAP measure, net loss, for the
three months ended March 31, 2018 (in
thousands):
|
For the three
months ended March 31,
2018
|
For the three
months ended March 31,
2017
|
GAAP Net
Loss
|
$(3,513)
|
$(5,006)
|
Stock-based
compensation and payments
|
815
|
950
|
Interest
expense, net
|
663
|
788
|
Taxes
|
-
|
(28)
|
Depreciation
|
399
|
345
|
Amortization
of intangible assets
|
60
|
90
|
Other
expenses/loss(1)
|
-
|
15
|
Investment
loss from Eton Pharmaceuticals
|
1,069
|
-
|
Non-recurring
expenses (2)
|
76
|
-
|
Adjusted
E(L)BITDA
|
$
(431)
|
$(2,846)
|
(1)
|
Represents the loss
on the sale of ImprimisRx TX assets.
|
(2)
|
Non-recurring
expenses are costs Surface incurred during the period presented
that were consolidated in the Company's financials, and
subsequently will be reimbursed to the Company following the
deconsolidation of Surface in the second quarter of
2018.
|
Conference Call and Webcast
The company's management team will host a conference call and
audio-only webcast today at 4:30 p.m.
EDT (1:30 p.m. PDT) to discuss
the financial results and recent developments. To participate in
the call, please dial (877) 407-8031 for domestic callers or (201)
689-8031 for international callers. To listen to the webcast,
please click here or visit the investor relations section of the
Imprimis website by clicking here. A dial in replay of the
call will be available until June 15,
2018. To access the replay, dial (877) 481-4010 domestically
or (919) 882-2331 internationally and reference Replay ID:
29148. The webcast replay will be available until
August 15, 2018.
About Imprimis Pharmaceuticals
Imprimis Pharmaceuticals, Inc. (NASDAQ: IMMY) is dedicated to
making high-quality innovative medications accessible and
affordable. The company's flexible business model allows a
drug to be compounded or developed as an FDA-approved product
through one of its subsidiaries or deconsolidated companies. For
more information about Imprimis, please visit the Investor
Relations section of the corporate website by clicking
here.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995. Any statements in this release that are not historical facts
may be considered such "forward-looking statements."
Forward-looking statements are based on management's current
expectations and are subject to risks and uncertainties which may
cause results to differ materially and adversely from the
statements contained herein. Some of the potential risks and
uncertainties that could cause actual results to differ from those
predicted include our ability to make commercially available our
compounded formulations and technologies in a timely manner or at
all; physician interest in prescribing our formulations; risks
related to our compounding pharmacy operations; our ability to
enter into other strategic alliances, including arrangements with
pharmacies, physicians and healthcare organizations for the
development and distribution of our formulations; our ability to
obtain intellectual property protection for our assets; our ability
to accurately estimate our expenses and cash burn, and raise
additional funds when necessary; risks related to research and
development activities; the projected size of the potential market
for our technologies and formulations; unexpected new data, safety
and technical issues; regulatory and market developments impacting
compounding pharmacies, outsourcing facilities and the
pharmaceutical industry; competition; and market conditions. These
and additional risks and uncertainties are more fully described in
Imprimis' filings with the Securities and Exchange Commission,
including its Annual Report on Form 10-K and its Quarterly Reports
on Form 10-Q. Such documents may be read free of charge on the
SEC's web site at www.sec.gov. Undue reliance should not be placed
on forward-looking statements, which speak only as of the date they
are made. Except as required by law, Imprimis undertakes no
obligation to update any forward-looking statements to reflect new
information, events or circumstances after the date they are made,
or to reflect the occurrence of unanticipated events.
No Imprimis compounded formulation is FDA-approved. Other
than drugs compounded at a registered outsourcing facility, all
Imprimis compounded formulations require a prescription for an
individually identified patient consistent with federal and state
laws.
Investor Contact
Jon Patton
jpatton@imprimispharma.com
858.704.4587
Media Contact
Deb Holliday
Holliday Communications, Inc.
deb@hollidaycommunications.net
412.877.4519
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SOURCE Imprimis Pharmaceuticals, Inc.