Actionable news
0
All posts from Actionable news
Actionable news in PTX: Pernix Therapeutics Holdings, Inc.,

Pernix Therapeutics Inc. Reports Third Quarter 2015 Financial Results

Successfully launched Pernix Prescriptions Direct (PPD) program nationally for Treximet and Silenor;

Received coverage approvals from 15 managed care providers for Zohydro ER with coverage of 250 million lives expected by January 2016; and

Completed 200 person sales force cross-training to promote all three core brands;

Third Quarter Financial Highlights:

Net revenue increased 54% year-over-year to $48.6 million compared to $31.5 million in Q3 2014;

Treximet revenue grew 76% to $28.6 million and Silenor revenue increased 21% to $5.1 million year-over-year;

Adjusted EBITDA increased to $8.7 million, compared to $6.9 million during the prior year period; and

Secured three-year $50 million revolving credit facility with Wells Fargo, replacing borrowings under previous facility.

"Pernix had a solid third quarter, and we are well on the way to meeting our full year goals. We are building momentum across our three core brands and advancing our strategy to create a portfolio of leading CNS and pain management products," said Doug Drysdale, Chairman and Chief Executive Officer.

Our efforts with Treximet continue to drive double digit increases in new Treximet prescriptions, and prescriptions per prescriber. We have made significant advances in securing broad coverage for Zohydro ER, with 15 managed care approvals so far, and we are optimistic about our ability to obtain additional favorable coverage. Silenor, re-launched last year, remains a solid contributor to overall growth.

2. Pernix Therapeutics Reports Third Quarter 2015 Financial Results

We expect our national Pernix Prescriptions Direct program for Treximet and Silenor, launched in August, will further contribute to the sustained growth of these products. We are encouraged by the early success of the program, evidenced by an increased fulfillment rate and significant weekly growth in patient enrollments. By offering patients and healthcare professionals improved convenience and health plan management, we believe our PPD program will result in better compliance and reduced prescription abandonment among those participating in the program. With the full support of our 200-person specialty sales force - now fully cross-trained to promote all three of our portfolio products - we are confident that we will continue to unlock the growth potential of each of our products as we head into 2016.

As we execute our strategic plan and position Pernix for growth in 2016, we will continue to optimize and improve our sales platform. We will aggressively pursue managed care coverage, removing barriers for patients and physicians, and we will pursue enhanced prescription growth through the national expansion of PPD," concluded Drysdale.

Financial Results - Third Quarter 2015

For the third quarter of 2015, net revenue was $48.6 million, an increase of $17.1 million, or 54%, versus $31.5 million for the third quarter of 2014. A summary of net revenue is outlined below (in thousands):

Three Months Ended

September 30,

Increase/

(Decrease)

Treximet

28,571

16,246

76

Silenor

5,149

4,243

21

Zohydro

5,363

n/a

Other

8,546

9,926

(14)

Net product sales

47,629

30,415

57

Co-promotion and other revenue

986

1,064

(7)

Total net revenues

48,615

31,479

54

The year over year improvement was driven by the re-launch of Treximet in September 2014, the launch of Zohydro ER with BeadTek in May 2015, and continued growth for Silenor. These increases were partially offset by higher rebates to managed care organizations to maintain or expand coverage, and the discontinuation of certain less profitable products.

Net sales of Other products declined due to the discontinuation of certain less profitable products and the termination of certain contracts pursuant to which we marketed and distributed products for others, offset by price increases on certain products.

Gross profit margin as a percentage of net revenues was 75% versus 60% in the third quarter of 2014. The improvement was primarily due to the Treximet and Zohydro ER launches.

Selling, general and administrative (SG&A) expenses in the third quarter of 2015 increased by $13.3 million, or 95%, to $27.4 million, compared to $14.1 million for the same period in 2014, driven primarily by the addition of the Zohydro ER sales force, investments in selling and marketing for our core brands, and training costs.

Research and Development expenses grew by $2.9 million to $3.2 million in the third quarter of 2015, compared to $290,000 in the third quarter of 2014. The increase was mostly due to on-going work related to Treximet lifecycle management and Zohydro ER.

3. Pernix Therapeutics Reports Third Quarter 2015 Financial Results

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, a non-GAAP measure) was $8.7 million for the third quarter of 2015 compared to $6.9 million in the third quarter of 2014. See the table at the end of this press release for a reconciliation of net loss to Adjusted EBITDA.

Depreciation and amortization expense was $25.7 million versus $10.2 million in the same period last year. The increase was primarily a result of $10.3 million in Treximet acquisition amortization and $5.0 million in Zohydro ER acquisition amortization.

Interest expense for the three months ended September 30, 2015 was $9.7 million compared to $5.5 million last year. The increase was primarily due to interest related to our $220.0 million Treximet Notes, issued in August 2014.

Pernix recognized an income tax benefit of $5.6 million in the third quarter of 2015, versus an expense of $655,000 for the same period last year.

The net loss for the third quarter of 2015 was $10.7 million, or $0.18 per basic and diluted share, compared to net loss of $11.7 million, or $0.31 per basic and diluted share, last year. Weighted average common shares outstanding were 61.0 million and 38.1 million per basic and diluted shares in the third quarter of 2015 and 2014, respectively. On a non-GAAP basis, 3Q 2015 adjusted net income was $5.0 million versus an adjusted net loss of $1.4 million in 3Q 2014.

Financial Results - Nine Months ending September 30, 2015

For the nine month period ended September 30, 2015, net revenues were $129.5 million versus net revenues of $67.9 million for the same period last year. Gross profit margin was 71% of net revenues, up from 52% for the prior year period. On a GAAP basis, net loss was $66.6 million, or $1.31 per share versus a net loss of $27.5 million, or $0.73 per share during the prior year period.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) grew to $21.2 million for the nine months ended September 30, 2015, compared to $985,000 for the same period last year.

Liquidity

As of September 30, 2015, the Company had total liquidity of $79.4 million, consisting of $57.2 million of cash and approximately $22.2 million available to draw, and an additional $17.8 million available to borrow based on the company's accounts receivable and inventory levels under its $50.0 million credit agreement, which may be increased by an additional $20 million at the lenders' discretion. Total principal amount of debt outstanding at the end of the quarter was $350.0 million.

Pernix is reaffirming guidance for the year. The Company expects net revenue for 2015 to be in the range of $170 to $180 million. Adjusted EBITDA is expected to be in the...


More