IGI LABORATORIES, INC. BUENA, N.J., Oct. 23, 2014 /PRNewswire/ -- IGI Laboratories, Inc. (NYSE MKT: IG), a New Jersey based specialty generic pharmaceutical company, announced its financial results for the third quarter ended September 30, 2014.
http://photos.prnewswire.com/prnvar/20130827/MM70487LOGO
Third Quarter 2014 Highlights
-- Total revenues of $6.7 million in the third quarter of 2014, an increase
of 67% over the same quarter in 2013
-- Total revenues of $20.0 million for the nine months ended September 30,
2014, an increase of 74% over the same period in 2013
-- Total net revenues generated from the sale of IGI-label generic topical
pharmaceutical products for the three and nine months ended September
30, 2014 were $3.0 million and $9.3 million, respectively, increases of
117% and 123% over the same periods in 2013, respectively
-- Total net revenues from IGI-label generic products for the third quarter
ended September 30, 2014 included a required adjustment to our
chargeback accrual of $3.8 million related to price increases for IGI's
econazole nitrate cream 1% product, which took effect in September 2014
-- Gross margin increased to 42% for the nine months ended September 30,
2014 from 31% for the same period in 2013
-- Net loss was $0.2 million in the third quarter of 2014, compared to a
net loss of $0.1 million for the same period in 2013
-- Net loss was $0.4 million and $0.8 million for the nine months ended
September 30, 2014 and 2013, respectively
-- Net loss included research and development costs of $5.0 million and
$2.1 million in the nine months ended September 30, 2014 and 2013,
respectively
-- On July 2, 2014, IGI sold 5,347,500 shares of its common stock, after
giving effect to the exercise in full by the underwriters of their
over-allotment option, in an underwritten offering at a price to the
public of $5.00 per share. The net proceeds of the offering to IGI were
approximately $25.2 million
-- On September 24, 2014, IGI acquired eighteen former AstraZeneca
products, seventeen of which were injectable products
-- On September 30, 2014, IGI acquired two ophthalmic products from
Valeant, in addition to the exclusive right to acquire three additional
injectable products from Valeant
IGI's President and Chief Executive Officer, Jason Grenfell-Gardner, stated, "At the beginning of 2014, we said this would be a year of transformation for IGI, and as we end the third quarter, we believe that we have delivered on that promise. The two acquisitions we completed at the end of September are initial drivers of a broader strategy to become a leader in the specialty generic pharmaceutical drug market. While we will continue expanding our reach into the topical market, we will also pursue targeted opportunities in the injectable, complex and ophthalmic generic pharmaceutical markets. We call this our TICO strategy, as it represents our strategic focus to leverage our assets and expertise across the topicals, injectables, complex and ophthalmic spaces. As of today, we have seventeen ANDAs pending at the FDA, with an addressable market of over $465 million as of August 2014, and four additional ANDAs, which we have filed with three of our pharmaceutical partners under joint development agreements." Mr. Grenfell-Gardner continued, "We increased total revenue by 67% over the same quarter last year, and improved margins to end the third quarter of 2014 with a gross margin of 42%, which included our adjustment to net revenue of just over $3.8 million related to price protection for our customers after our price increase for econazole nitrate cream 1% took effect in September. We expect to be on schedule to file at least ten ANDAs by the end of 2014. We forecast net revenue for 2014 to be $31.5 to $33.0 million, gross margin for 2014 to approximate 50% and net income for the full year to range between $2.0 and $3.0 million."
The Company will hold a conference call at 4:15 pm ET on Thursday, October 23, 2014 to discuss the third quarter 2014 results.
The Company invites you to listen to the call by dialing 1-888-346-3479. International participants should call 1-412-902-4260. Canadian participants should call 1-855-669-9657. Participants should ask to be joined into the IGI Laboratories, Inc. call.
This call is being webcast by MultiVu (a PR Newswire Company) and can be accessed in the Investor Relations Section of IGI's website at www.igilabs.com.
About IGI Laboratories, Inc.
IGI Laboratories is a specialty generic pharmaceutical company. Our mission is to be a leading player in the specialty generic prescription drug market.
This press release includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions, and other statements contained in this press release that are not historical facts and statements identified by words such as " will," "believe," "target," "estimated," "continue" or words of similar meaning. These statements are based on our current beliefs or expectations and are inherently subject to various risks and uncertainties, including those included from time to time in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections in our most recent Annual Report on Form 10-K, as updated by Quarterly Reports on Form 10-Q and other reports we file with the Securities and Exchange Commission. Actual results may differ materially from these expectations. Factors that could cause actual results to differ materially from these expectations include, but are not limited to: our inability to meet current or future regulatory requirements in connection with existing or future ANDAs; our inability to achieve profitability; our failure to obtain FDA approvals as anticipated; our inability to execute and implement our business plan and strategy; the potential lack of market acceptance of our products; our inability to protect our intellectual property rights; changes in and the impact of global political, economic, business, competitive, market, regulatory and other factors; and our inability to complete successfully future product acquisitions. We assume no obligation to update any forward-looking statements or information, which speak as of their respective dates.
IGI LABORATORIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except shares and per share information)
(Unaudited)
Three months ended Nine months ended September
September 30, 30,
2014 2013 2014 2013
---- ---- ---- ----
Revenues:
Product sales, net $6,005 $3,950 $18,525 $11,124
Research and
development
income 635 10 1,385 278
Licensing, royalty
and other revenue 28 35 95 97
--- --- --- ---
Total revenues 6,668 3,995 20,005 11,499
Costs and Expenses:
Cost of sales 4,036 2,684 11,603 7,932
Selling, general
and
administrative
expenses 1,124 692 3,563 2,078
Product
development and
research expenses 1,652 661 5,045 2,123
----- --- ----- -----
Total costs and
expenses 6,812 4,037 20,211 12,133
Operating loss (144) (42) (206) (634)
Interest expense
and other, net (58) (53) (174) (121)
--- --- ---- ----
Net loss $(202) $(95) $(380) $(755)
===== ==== ===== =====
Basic and diluted
loss per share ($0.00) ($0.00) ($0.01) ($0.02)
Weighted average shares of common stock
outstanding:
Basic and diluted 52,457,938 43,395,980 48,811,328 39,510,540
IGI LABORATORIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 2014 and 2013
(in thousands)
(Unaudited)
2014 2013
---- ----
Cash flows from
operating activities:
Net loss $(380) $(755)
Non-cash expenses 1,244 671
Changes in operating
assets and
liabilities (1,894) (1,307)
------ ------
Net cash used in
operating activities (1,030) (1,391)
Net cash used in
investing activities (3,077) (2,049)
Net cash provided by
financing activities 25,254 2,306
------ -----
Net increase
(decrease) in cash
and cash equivalents 21,147 (1,134)
Cash and cash
equivalents at
beginning of period 2,101 2,536
----- -----
Cash and cash
equivalents at end of
period $23,248 $1,402
======= ======
IGI LABORATORIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share information)
(Unaudited)
September 30, December 31,
2014 2013*
----
ASSETS
Current assets:
Cash and cash equivalents $23,248 $2,101
Accounts receivable, net 6,369 4,947
Inventories 3,218 2,869
Prepaid expenses and other receivables 1,011 641
----- ---
Total current assets 33,846 10,558
Property, plant and equipment, net 3,169 2,623
Product acquisition costs, net 10,135 1,766
Restricted cash, long term 54 54
License fee, net 125 200
Debt issuance costs, net 45 69
Other 143 157
--- ---
Total assets $47,517 $15,427
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,143 $1,523
Accrued expenses 3,359 2,915
Payable for product acquisition costs 6,000 -
Deferred income, current 34 768
Capital lease obligation, current 131 15
--- ---
Total current liabilities 11,667 5,221
Note payable, bank 2,854 3,000
Other long term liabilities 105 15
--- ---
Total liabilities 14,626 8,236
------ -----
Commitments and contingencies
Stockholders' equity:
Common stock, $0.01 par value, 60,000,000
shares authorized; 52,577,787 and 46,748,575
shares issued and outstanding as
of September 30, 2014 and December 31, 2013,
respectively 545 487
Additional paid-in capital 77,563 51,541
Accumulated deficit (45,217) (44,837)
------- -------
Total stockholders' equity 32,891 7,191
------ -----
Total liabilities and stockholders' equity $47,517 $15,427
======= =======
*Derived from the audited December 31, 2013 financial statements
Logo - http://photos.prnewswire.com/prnh/20130827/MM70487LOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/igi-laboratories-announces-third-quarter-2014-results-389512077.html
SOURCE IGI Laboratories, Inc.
