SAN DIEGO, Aug. 6, 2018 /PRNewswire/ -- Imprimis
Pharmaceuticals, Inc. (NASDAQ: IMMY) today reported results for the
second quarter 2018.
Notable Highlights from the Second Quarter of 2018:
- Revenues of $10.4 million, up 51%
year-over-year
- Gross ophthalmology-related revenue of $8.3 million, up 74% year-over-year
- Gross margin of 60% compared to 52% in second quarter 2017
- Adjusted EBITDA (a non-GAAP measure) of $442,000
- Operating activities produced positive cash flow of
$1.4 million
- Net income (GAAP basis) of $2.5
million
- Cash balance increased for the second quarter 2018 compared to
the first quarter 2018
- 17 straight quarters of double digit or better year-over-year
revenue growth
- $21 million oversubscribed Series
A investment into Surface Pharmaceuticals, a former subsidiary of
Imprimis
- $5.3 million gain (below
operating line) for deconsolidation of Surface Pharmaceuticals
- Launched Melt Pharmaceuticals, a new subsidiary, to develop and
seek FDA approval for Imprimis's patented non-opioid conscious
sedation formulations
Mark L. Baum, CEO of Imprimis,
stated, "Building on our momentum from Q1, the second quarter of
2018 was the best quarter in our company's history. Revenues
hit record highs, gross margins were the highest in the company's
history, our operating business is cash flowing and we achieved our
first profitable quarter on an adjusted EBITDA basis. We've
now had double digit or better year-over-year revenue growth for
over four years, and our most important metrics related to
operating efficiencies, prescription renewal rates, customer
service quality and customer count continue to trend in the right
direction. Now more than ever, our growth is evidence that
our value proposition is resonating with physician customers and
their patients."
Baum concluded, "Last year, we began executing a strategy to
seek FDA approval for selected drug formulation assets we
own. During Q2, after having funded and deconsolidated our
first two drug development companies, Eton Pharmaceuticals and
Surface Pharmaceuticals, we formed our third drug development
company, Melt Pharmaceuticals, which is focused on bringing
patented non-opioid, non-intravenous conscious sedation and
analgesia pharmaceuticals to market. The launch of Melt comes
on the heels of a successful $21
million Series A financing for Surface Pharmaceuticals and
Eton Pharmaceuticals announcing positive topline results for a
Phase III study of its allergic conjunctivitis ophthalmic drug
candidate. In less than a year, Eton now has one new drug
application (NDA) and another abbreviated NDA (ANDA) on file with the FDA in addition to
advancing numerous other drug development programs. We are
well positioned in each of these three exciting companies with
significant equity positions and royalty rights to a total of five
active drug candidate programs they are developing."
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 September
6, 2018. To access the replay, dial (877) 481-4010
domestically or (919) 882-2331 internationally and reference Replay
ID: 34365. The webcast replay will be available until
November 6, 2018.
Financial Summary:
Selected highlights regarding operating results for the three
months and six months ended June 30,
2018 and for the same periods in 2017 are as follows (in
thousands, except per share data):
|
For the three
months ended
June 30, 2018
|
For the three
months ended
June 30, 2017
|
Total
Revenues
|
$10,384
|
$6,857
|
Cost of
Sales
|
(4,157)
|
(3,288)
|
Gross
Profit
|
6,227
|
3,569
|
Selling, General
& Administrative Expenses
|
(6,779)
|
(6,485)
|
Research &
Development Expenses
|
(72)
|
(101)
|
Operating
Loss
|
(624)
|
(3,017)
|
Other Income,
net
|
3,146
|
4,501
|
Net
Income
|
$
2,522
|
$
1,484
|
Net Income per
Common Share, Basic
|
$
0.12
|
$
0.07
|
|
For the six
months ended June 30,
2018
|
For the six
months ended June 30,
2017
|
Total
Revenues
|
$19,249
|
$12,954
|
Cost of
Sales
|
(8,228)
|
(6,645)
|
Gross
Profit
|
11,021
|
6,309
|
Selling, General
& Administrative Expenses
|
(13,267)
|
(13,296)
|
Research &
Development Expenses
|
(159)
|
(261)
|
Operating
Loss
|
(2,405)
|
(7,248)
|
Other Income,
net
|
1,414
|
3,726
|
Net
Loss
|
$
(991)
|
$
(3,522)
|
Net (Loss) per
Common Share, Basic
|
$
(0.05)
|
$
(0.18)
|
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 June 30, 2018 and
for the same period in 2017 (in thousands):
|
For the three
months ended June 30,
2018
|
For the three
months ended June 30,
2017
|
GAAP Net
Income
|
$2,522
|
$1,484
|
Stock-based
compensation and payments
|
608
|
667
|
Interest
expense, net
|
671
|
767
|
Taxes
|
-
|
(28)
|
Depreciation
|
401
|
314
|
Amortization
of intangible assets
|
57
|
91
|
Investment
loss from Surface and Eton
|
1,248
|
216
|
Gain on
deconsolidation of Surface and Eton
|
(5,320)
|
(5,725)
|
Other Expense,
net
|
255
|
269
|
Adjusted
E(L)BITDA
|
$442
|
$(1,945)
|
About Imprimis Pharmaceuticals
Imprimis Pharmaceuticals, Inc. (NASDAQ: IMMY) is a
commercial-stage pharmaceutical company based in San Diego, California. In addition to
owning the nation's leading ophthalmology pharmaceutical
compounding business, ImprimisRx, the Company holds large equity
positions in Eton Pharmaceuticals, Surface Pharmaceuticals and Melt
Pharmaceuticals, companies originally founded as subsidiaries of
Imprimis. The Company also owns royalty rights in certain
505(b)(2) drug candidates being developed by Eton, Surface and
Melt. 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.