Eagle Pharmaceuticals, Inc. (Nasdaq: EGRX) (“Eagle” or the
“Company”) today announced financial results for the three months
ended March 31, 2023.
Business and Recent Highlights:
- Net product sales of PEMFEXY
totaled $22.9 million in the first quarter 2023. Based on internal
data and customer feedback, the Company estimates that as of the
second quarter to date, its U.S. share of commercial (non-340B)
pemetrexed usage has grown to 15% up from 6% exiting the fourth
quarter of 2022.
- Centers for Medicare & Medicaid
Services (“CMS”) established a unique, product-specific billing
code for Byfavo® (remimazolam for injection)6, a short-acting
sedative for procedures lasting 30 minutes or less. This new
Healthcare Common Procedure Coding System (HCPCS) Level II code
(“J-code”) is J2249 “Injection, remimazolam, 1 mg.” The J-code will
be effective on July 1, 2023.
- Reached a settlement agreement with
Dr. Reddy’s Laboratories, Ltd. and Dr. Reddy’s Laboratories, Inc.
(collectively, “Dr. Reddy’s”). Eagle had asserted its Orange
Book-listed patents against Dr. Reddy’s related to its new drug
application referencing BENDEKA. Under the settlement agreement,
Dr. Reddy’s has the right to market its product beginning November
17, 2027, or earlier based on certain circumstances. The settlement
with Dr. Reddy’s follows Eagle’s previously announced settlements
with Hospira, Inc. (“Hospira”) and Accord Healthcare, Inc.
(“Accord”) related to their new drug applications referencing
BENDEKA.
- With the Dr. Reddy’s settlement,
all the existing challenges, except for one, which is for a
proposed powder, not liquid, formulation have been settled. The
Company expects bendamustine to be a significant contributor for
several more years.
- Reaffirms full-year Company
guidance.
- The Company is also currently
working with lenders to secure financing to support a potential
accretive acquisition.
Financial Highlights
First Quarter 2023
- Total revenue for Q1 2023 was $66.3
million, compared to $115.9 million in Q1 2022.
- Q1 2023 net income was $5.8
million, or $0.44 per basic and diluted share, compared to net
income of $44.1 million, or $3.47 per basic and $3.41 per diluted
share, in Q1 2022.
- Q1 2023 adjusted non-GAAP net
income was $16.5 million, or $1.27 per basic and $1.26 per
diluted share, compared to adjusted non-GAAP net income of $52.2
million, or $4.10 per basic and $4.04 per diluted share, in Q1
2022.
- Cash and cash equivalents were
$21.9 million, net accounts receivable was $115.0 million, and
total debt was $77.5 million, as of March 31, 2023.
“Following on from our outstanding performance in 2022, we
believe Eagle remains well positioned for another strong year, and
therefore we are reiterating our 2023 guidance. Our products
continue to track well, and we are on pace to surpass our 2022 net
product sales for the full year 2023 for PEMFEXY, which continues
to gain share in commercial (non-340B) pemetrexed usage in the
U.S.,” stated Scott Tarriff, President and Chief Executive Officer
of Eagle Pharmaceuticals.
“To be clear, the investments we are making for the future
account for much of the expected difference of our earnings in 2023
versus 2022. We are investing to support our products and advance
our pipeline, notably CAL02, which bridges much of the
year-over-year gap. We believe the expansion of our commercial team
will enable us to capture synergies with an acquisition target and
are currently working with lenders to secure financing to support a
potentially accretive transaction,” concluded Tarriff.
First Quarter 2023 Financial Results
Total revenue for the three months ended March 31, 2023 was
$66.3 million, as compared to $115.9 million for the three months
ended March 31, 2022.
Q1 2023 RYANODEX® net product sales were $8.8 million, compared
to $6.6 million in the first quarter of 2022.
Q1 2023 BELRAPZO net product sales were $6.4 million, compared
to $5.9 million in the first quarter of 2022.
Q1 2023 PEMFEXY net product sales were $22.9 million, compared
to $37.2 million in the first quarter of 2022.
Q1 2023 vasopressin net product sales were $3.5 million,
compared to $34.3 million in the first quarter of 2022. During the
first quarter of 2023, the Company gave notice to customers and the
FDA that it was withdrawing from the vasopressin market. Inventory
on hand is expected to be depleted by the end of the second quarter
of 2023.
Q1 2023 royalty revenue was $20.1 million, compared to $25.8
million in the prior year quarter.
A summary of total revenue is outlined below:
|
Three Months Ended March 31, |
|
|
2023 |
|
2022 |
|
|
(unaudited) |
|
(unaudited) |
|
Revenue (in thousands): |
|
|
|
|
Product sales, net |
$ |
46,221 |
|
$ |
90,088 |
|
Royalty revenue |
|
20,084 |
|
|
25,786 |
|
Total revenue |
$ |
66,305 |
|
$ |
115,874 |
|
|
|
|
|
|
Gross margin was 74% during the first quarter of 2023, compared
to 76% in the first quarter of 2022. The decrease in gross margin
was primarily the result of the inclusion of amortization of
intangible assets related to the newly acquired products, which we
expect to continue going forward.
R&D expense was $9.3 million for the first quarter of 2023,
compared to $6.1 million for the first quarter of 2022. The
increase was primarily due to higher spend of $2.0 million on CAL02
and $1.0 million on Byfavo and Barhemsys pediatric studies.
SG&A expenses in the first quarter of 2023 were $28.0
million compared to $22.2 million in the first quarter of 2022.
This increase was driven by $3.3 million in salary and other
personnel-related costs, $2.0 million in external sales and
marketing spend, partially offset by $2.0 million in lower
legal-related costs.
Net income for the first quarter of 2023 was $5.8 million, or
$0.44 per basic and diluted share, compared to net income of $44.1
million, or $3.47 per basic and $3.41 per diluted share, in the
first quarter of 2022, primarily as a result of the factors
discussed above.
Adjusted non-GAAP net income for the first quarter of 2023 was
$16.5 million, or $1.27 per basic and $1.26 per diluted share,
compared to adjusted non-GAAP net income of $52.2 million, or $4.10
per basic and $4.04 per diluted share, in the first quarter of
2022.
Adjusted non-GAAP EBITDA for the first quarter of 2023 was $22.3
million, compared to adjusted non-GAAP EBITDA of $66.9 million in
the first quarter of 2022.
2023 Full-Year Guidance
The Company continues to expect:
- Adjusted EBITDA of $74.0-$80.0
million
- Adjusted non-GAAP earnings per share
of $4.20-$4.53
- Adjusted non-GAAP R&D expense
of $41.0-$45.0 million
- Adjusted non-GAAP SG&A expense
of $86.0-$90.0 million
Liquidity
As of March 31, 2023, Eagle had $21.9 million in cash and cash
equivalents, $115.0 million in accounts receivable, net, and $77.5
million in outstanding debt on the Company’s $150 million credit
facility with JPMorgan. As of March 31, 2023, Eagle had a working
capital surplus of $94.7 million.
Conference Call
As previously announced, Eagle management will host its first
quarter 2023 conference call as follows:
Date |
|
|
|
|
|
|
|
|
|
|
|
|
May 9, 2023 |
Time |
|
|
|
|
|
|
|
|
|
|
|
|
8:30 A.M. ET |
Toll free (U.S.) |
|
|
|
|
|
800-274-8461 |
International |
|
|
|
|
|
203-518-9814 |
Webcast (live and
replay) |
|
|
|
|
|
www.eagleus.com, under the
“Investor + News” section |
A replay of the conference call will be available for two weeks
after the call's completion by dialing 888-566-0151 (U.S.) or
402-220-9181 (International) and entering conference call ID
EGRXQ123. The webcast will be archived for 30 days at the
aforementioned URL.
About Eagle Pharmaceuticals, Inc.
Eagle is a fully integrated pharmaceutical company with research
and development, clinical, manufacturing and commercial expertise.
Eagle is committed to developing innovative medicines that result
in meaningful improvements in patients’ lives. Eagle’s
commercialized products include vasopressin, PEMFEXY®, RYANODEX®,
BENDEKA®, BELRAPZO®, TREAKISYM® (Japan), and Byfavo® and Barhemsys®
through its wholly owned subsidiary Acacia Pharma Inc. Eagle’s
oncology and CNS/metabolic critical care pipeline includes product
candidates with the potential to address underserved therapeutic
areas across multiple disease states. Additional information is
available on Eagle’s website at www.eagleus.com.
Forward-Looking Statements This press release
contains “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995, as amended, and
other securities law. Forward-looking statements are statements
that are not historical facts. Words and phrases such as
“anticipated,” “forward,” “will,” “would,” “could,” “should,”
“may,” “remain,” “potential,” “prepare,” “expect,” “anticipate,”
“believe,” “plan,” “future,” “believe,” “guidance,” “project,”
“estimate,” “intend,” “advance,” “continue” and similar expressions
are intended to identify forward-looking statements. These
statements include, but are not limited to, statements with respect
to: the effectiveness date of the J-code and potential benefits
thereof; the Company’s ability to manage its bendamustine
franchise; the potential further investment by the Company in its
development programs, products and pipeline the ability of the
Company’s products and product candidates to address unmet clinical
needs; the Company’s financial projections and guidance, including
anticipated financial performance for 2023, including expected
adjusted EBITDA, adjusted non-GAAP earnings per share, adjusted
non-GAAP R&D and adjusted non-GAAP SG&A expense; the
potential benefits and commercial opportunity of Enalare’s product
candidates; expected continued earnings growth and anticipated
deployment of cash to fund clinical development and potential
strategic transactions; the potential for the Company to transition
into a diversified pharmaceutical company with a portfolio of
branded, first-in-class assets and to utilize legacy products; the
Company’s ability to pursue additional potential transactions to
further diversify its product portfolio and pipeline and broaden
its footprint on favorable terms or at all and expectations that
the Company’s cash and balance sheet will be used for any such
transaction and that any such transaction will be accretive; the
Company’s ability to obtain and maintain regulatory approval of its
products and product candidates; the Company's clinical development
plan for its product candidates, including the number and timing of
development initiatives or new indications for the Company’s
product candidates; the timing, scope or likelihood and timing of
regulatory filings and approvals from the FDA for the Company’s or
its partner’s product candidates; the progress and success of the
Company’s launch of any products; the addressable market size for,
and the ability of the Company to successfully commercialize, its
products and product candidates, and expectations with respect to
growth of market share; the period of marketing exclusivity for any
of the Company’s products or product candidates; the resolution of
patent litigation and related settlement terms, including the date
of market entry and the potential for earlier market entry under
certain circumstances and submission of settlement agreements to
the U.S. Federal Trade Commission and the U.S. Department of
Justice for review; the strength of the Company’s intellectual
property rights; the expected expansion, defense and enforcement of
intellectual property rights; the ability of the Company to obtain
and maintain coverage and adequate reimbursement for its products;
the success of the Company's collaborations with its strategic
partners and the timing and results of these partners’ preclinical
studies and clinical trials, and the Company’s potential earnings
potential through such collaborations; the ability of the Company’s
executive team to execute on the Company’s strategy and to utilize
its cash and other assets to increase shareholder value; and the
ability of the Company’s product candidates to deliver value to
stockholders; the Company's ability to deliver value in 2023 and
over the long term; the Company’s ability to sustain and further
its growth; the Company’s ability to effectively manage and control
expenses in line with its budget; the sufficiency of the Company’s
cash flows and capital resources; and the Company’s ability to
achieve expected future financial performance and results. All of
such statements are subject to certain risks and uncertainties,
many of which are difficult to predict and generally beyond the
Company’s control, that could cause actual results to differ
materially from those expressed in, or implied or projected by, the
forward-looking information and statements. Such risks and
uncertainties include, but are not limited to: the risk that the
anticipated benefits of the Company’s acquisition of Acacia are not
realized; the ability of Enalare to achieve milestones and
deliverables and achieve successful results in the development of
ENA-001 and the Company’s ability to exercise its option to acquire
the remaining outstanding share capital of Enalare; the impacts of
the continuing effects of the COVID-19 pandemic and geopolitical
events such as the conflict in Ukraine, including disruption or
impact in the sales of the Company's marketed products,
interruptions or other adverse effects to clinical trials, delays
in regulatory review, manufacturing and supply chain interruptions,
adverse effects on healthcare systems, disruption in the operations
of the Company's third party partners and disruption of the global
economy or other events on the Company's business, financial
condition and results of operations; macroeconomic conditions,
including rising inflation and interest rates, uncertain credit and
financial markets and recent and potential disruptions in banking
systems; whether the Company will incur unforeseen expenses or
liabilities or other market factors; whether the Company will
successfully implement its development plan for its product
candidates; delay in or failure to obtain regulatory approval of
the Company's or its partners’ product candidates; whether the
Company can successfully market and commercialize its product
candidates; the success of the Company's relationships with its
partners; the availability and pricing of third party sourced
products and materials; the outcome of litigation involving any of
its products or that may have an impact on any of our products;
successful compliance with the FDA and other governmental
regulations applicable to product approvals, manufacturing
facilities, products and/or businesses; general economic
conditions, including the potential adverse effects of public
health issues, including the COVID-19 pandemic and geopolitical
events, on economic activity and the performance of the financial
markets generally; the strength and enforceability of the Company's
intellectual property rights or the rights of third parties;
competition from other pharmaceutical and biotechnology companies
and the potential for competition from generic entrants into the
market; the risks inherent in the early stages of drug development
and in conducting clinical trials; and any unanticipated factors in
addition to the foregoing that may impact the Company’s financial
and business projections and guidance and may cause the Company’s
actual results and outcomes to materially differ from its
projections and guidance; and those risks and uncertainties
identified in the “Risk Factors” sections of the Company's Annual
Report on Form 10-K for the year ended December 31, 2022, filed
with the Securities and Exchange Commission (the “SEC”) on March
23, 2023, and its other subsequent filings with the SEC, including
the Company’s Quarterly Report on Form 10-Q for the quarter ended
March 31, 2023. Readers are cautioned not to place undue reliance
on these forward-looking statements. All forward-looking statements
contained in this press release speak only as of the date on which
they were made. Except to the extent required by law, the Company
undertakes no obligation to update such statements to reflect
events that occur or circumstances that exist after the date on
which they were made.
Non-GAAP Financial Performance Measures
In addition to financial information prepared in accordance with
U.S. GAAP, this press release also contains adjusted non-GAAP net
income, adjusted non-GAAP earnings per share, adjusted non-GAAP
R&D expense and adjusted non-GAAP SG&A expense and
projected adjusted non-GAAP R&D expense, adjusted EBITDA,
adjusted non-GAAP earnings per share and adjusted non-GAAP SG&A
expense. The Company believes these measures provide investors and
management with supplemental information relating to operating
performance and trends that facilitate comparisons between periods
and with respect to projected information.
Adjusted non-GAAP net income and related earnings per share
information excludes amortization expense, stock-based compensation
expense, depreciation expense, severance, acquisition related
costs, legal settlement, non-cash interest expense, fair value
adjustments on equity investment, convertible promissory note
related adjustments, fair value adjustments related to derivative
instruments, foreign currency exchange gain, inventory step-up, and
the tax effect of these adjustments.
Adjusted EBITDA excludes interest expense net of interest
income, income tax provision, depreciation and amortization
expense, stock-based compensation expense, fair value adjustments
on equity investment, convertible promissory note related
adjustments, fair value adjustments related to derivative
instruments, foreign currency exchange gain, gain on euro debt,
legal settlement, acquisition related costs, inventory step-up,
debt issuance cost and severance.
Adjusted non-GAAP R&D expense excludes stock-based
compensation expense and depreciation expense.
Adjusted non-GAAP SG&A expense excludes stock-based
compensation expense, depreciation expense, severance, acquisition
related costs and legal settlement.
The Company believes the use of non-GAAP financial measures
helps indicate underlying trends in the Company’s business and are
important in comparing current results with prior period results
and understanding projected operating performance. Non-GAAP
financial measures provide the Company and its investors with an
indication of the Company’s baseline performance before items that
are considered by the Company not to be reflective of the Company’s
ongoing results. See the attached reconciliation tables for details
of the amounts excluded and included to arrive at certain of the
non-GAAP financial measures.
Investors should note that reconciliations of the
forward-looking or projected non-GAAP financial measures included
in this press release to their most comparable GAAP financial
measures cannot be provided because the Company cannot do so
without unreasonable efforts due to the unavailability of
information needed to calculate the reconciling items and the
variability, complexity, and limited visibility of comparable GAAP
measures, and the reconciling items that would be excluded from the
non-GAAP financial measures in the future. Likewise, the Company is
unable to provide projected GAAP financial measures. GAAP
projections and reconciliations of the components of projected
adjusted EBITDA, adjusted non-GAAP R&D expenses, adjusted
non-GAAP SG&A expense, and adjusted non-GAAP earning per share
to their most comparable GAAP financial measures are not provided
because the quantification of projected GAAP R&D expenses,
adjusted non-GAAP SG&A expense, net income and earnings per
share and the reconciling items between projected GAAP to adjusted
EBITDA, adjusted non-GAAP R&D expenses, adjusted non-GAAP
SG&A expense and adjusted non-GAAP earnings per share cannot be
reasonably calculated or predicted at this time without
unreasonable efforts. For example, with respect to GAAP net income,
R&D expenses and SG&A expenses, the Company is not able to
calculate the favorable or unfavorable expenses related to the fair
value adjustments on equity investments and derivative instruments
primarily due to nature of these items. Such unavailable
information could be significant such that actual GAAP net income,
R&D expenses, SG&A expenses and earnings per share would
vary significantly from projected adjusted EBITDA, adjusted
non-GAAP R&D expenses, adjusted non-GAAP SG&A expense and
adjusted non-GAAP earnings per share.
These non-GAAP financial measures should be considered in
addition to, but not as a substitute for, the information prepared
in accordance with U.S. GAAP. In addition, from time to time in the
future there may be other items that the Company may exclude for
purposes of its non-GAAP financial measures; and the Company has
ceased, and may in the future cease, to exclude items that it has
historically excluded for purposes of its non-GAAP financial
measures. For example, beginning in the fourth quarter of 2022, the
Company no longer excludes expense of acquired in-process research
& development from the Company’s adjusted non-GAAP net income
or adjusted EBITDA, their line item components, and non-GAAP
earnings per share. For purposes of comparability, non-GAAP
adjusted financial measures for the three ended March 31, 2022 have
been updated to reflect this change. Accordingly, such expenses are
not excluded from its non-GAAP financial measures for the three
months ended March 31, 2023 and 2022, as detailed in the
reconciliation tables that follow, or from 2023 non-GAAP adjusted
net income and adjusted non-GAAP earnings per share guidance.
Likewise, the Company may determine to modify the nature of its
adjustments to arrive at its non-GAAP financial measures. The
Company strongly encourages investors to review its consolidated
financial statements and publicly-filed reports in their entirety
and cautions investors that the non-GAAP financial measures used by
the Company may differ from similar measures used by other
companies, even when similar terms are used to identify such
measures.
Investor Relations for Eagle Pharmaceuticals,
Inc.:
Lisa M.
Wilson In-Site
Communications, Inc. T: 212-452-2793 E: lwilson@insitecony.com
-- Financial tables follow --
EAGLE PHARMACEUTICALS, INC. |
|
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED) |
|
(In thousands, except share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2023 |
|
December 31, 2022 |
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
21,897 |
|
|
$ |
55,321 |
|
|
Accounts receivable, net |
|
114,953 |
|
|
|
72,439 |
|
|
Inventories |
|
44,140 |
|
|
|
47,794 |
|
|
Prepaid expenses and other current assets |
|
11,501 |
|
|
|
13,200 |
|
|
Total current assets |
|
192,491 |
|
|
|
188,754 |
|
|
Property and equipment, net |
|
1,116 |
|
|
|
1,168 |
|
|
Intangible assets, net |
|
112,875 |
|
|
|
118,327 |
|
|
Goodwill |
|
45,033 |
|
|
|
45,033 |
|
|
Deferred tax asset, net |
|
29,150 |
|
|
|
27,146 |
|
|
Other assets |
|
33,510 |
|
|
|
25,732 |
|
|
Total assets |
$ |
414,175 |
|
|
$ |
406,160 |
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
$ |
17,108 |
|
|
$ |
18,993 |
|
|
Accrued expenses and other liabilities |
|
73,201 |
|
|
|
85,844 |
|
|
Short-term debt |
|
7,500 |
|
|
|
6,250 |
|
|
Total current liabilities |
|
97,809 |
|
|
|
111,087 |
|
|
Long-term debt |
|
68,829 |
|
|
|
56,216 |
|
|
Other long-term liabilities |
|
4,692 |
|
|
|
5,297 |
|
|
Total liabilities |
|
171,330 |
|
|
|
172,600 |
|
|
Commitments and Contingencies |
|
|
|
|
Stockholders' equity: |
|
|
|
|
Preferred stock, 1,500,000 shares authorized and no shares issued
or outstanding as of March 31, 2023 and December 31, 2022 |
|
— |
|
|
|
— |
|
|
Common stock, $0.001 par value; 50,000,000 shares authorized;
17,636,973 and 17,569,375 shares issued as of March 31, 2023 and
December 31, 2022, respectively |
|
18 |
|
|
|
18 |
|
|
Additional paid in capital |
|
369,800 |
|
|
|
366,265 |
|
|
Accumulated other comprehensive loss |
|
(1,112 |
) |
|
|
(1,112 |
) |
|
Retained earnings |
|
117,254 |
|
|
|
111,504 |
|
|
Treasury stock, at cost, 4,552,730 and 4,552,730 shares as of March
31, 2023 and December 31, 2022, respectively |
|
(243,115 |
) |
|
|
(243,115 |
) |
|
Total stockholders' equity |
|
242,845 |
|
|
|
233,560 |
|
|
Total liabilities and stockholders' equity |
$ |
414,175 |
|
|
$ |
406,160 |
|
|
|
|
|
|
|
EAGLE PHARMACEUTICALS, INC. |
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED) |
|
(In thousands, except share and per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
Revenue: |
|
|
|
|
Product sales, net |
$ |
46,221 |
|
|
$ |
90,088 |
|
|
Royalty revenue |
|
20,084 |
|
|
|
25,786 |
|
|
Total revenue |
|
66,305 |
|
|
|
115,874 |
|
|
Operating expenses: |
|
|
|
|
Cost of product sales |
|
17,300 |
|
|
|
25,176 |
|
|
Cost of royalty revenue |
|
— |
|
|
|
2,579 |
|
|
Research and development |
|
9,272 |
|
|
|
6,108 |
|
|
Selling, general and administrative |
|
27,960 |
|
|
|
22,182 |
|
|
Total operating expenses |
|
54,532 |
|
|
|
56,045 |
|
|
Income from operations |
|
11,773 |
|
|
|
59,829 |
|
|
Interest income |
|
212 |
|
|
|
154 |
|
|
Interest expense |
|
(1,516 |
) |
|
|
(366 |
) |
|
Other expense |
|
(238 |
) |
|
|
(1,957 |
) |
|
Total other expense, net |
|
(1,542 |
) |
|
|
(2,169 |
) |
|
Income
before income tax provision |
|
10,231 |
|
|
|
57,660 |
|
|
Income tax provision |
|
(4,481 |
) |
|
|
(13,602 |
) |
|
Net
income |
$ |
5,750 |
|
|
$ |
44,058 |
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
Basic |
$ |
0.44 |
|
|
$ |
3.47 |
|
|
Diluted |
$ |
0.44 |
|
|
$ |
3.41 |
|
|
Weighted average number of common shares outstanding: |
|
|
|
|
Basic |
|
13,059,153 |
|
|
|
12,710,646 |
|
|
Diluted |
|
13,153,271 |
|
|
|
12,906,811 |
|
|
|
|
|
|
|
EAGLE PHARMACEUTICALS, INC. |
|
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED NON-GAAP NET
INCOME AND |
|
GAAP EARNINGS PER SHARE TO ADJUSTED NON-GAAP EARNINGS PER
SHARE (UNAUDITED) |
|
(In thousands, except share and per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
Net income - GAAP |
$ |
5,750 |
|
|
$ |
44,058 |
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
Cost of product revenues: |
|
|
|
|
|
Amortization expense |
|
5,442 |
|
|
|
731 |
|
|
Research and development: |
|
|
|
|
|
Stock-based compensation expense |
|
687 |
|
|
|
643 |
|
|
|
Depreciation expense |
|
30 |
|
|
|
48 |
|
|
Selling, general and administrative: |
|
|
|
|
|
Stock-based compensation expense |
|
3,952 |
|
|
|
3,652 |
|
|
|
Depreciation expense |
|
80 |
|
|
|
129 |
|
|
|
Severance |
|
43 |
|
|
|
49 |
|
|
|
Acquisition related costs |
|
— |
|
|
|
1,490 |
|
|
|
Legal settlement |
|
— |
|
|
|
300 |
|
|
|
|
|
|
|
|
Other: |
|
|
|
|
|
Non-cash interest expense |
|
122 |
|
|
|
118 |
|
|
|
Fair value adjustments on equity investment |
|
403 |
|
|
|
2,530 |
|
|
|
Convertible promissory note related adjustments |
|
— |
|
|
|
(9 |
) |
|
|
Fair value adjustments related to derivative instruments |
|
(77 |
) |
|
|
(608 |
) |
|
|
Foreign currency exchange gain |
|
(90 |
) |
|
|
— |
|
|
|
Inventory step-up |
|
320 |
|
|
|
— |
|
|
Tax effect of the non-GAAP adjustments |
|
(126 |
) |
|
|
(979 |
) |
|
|
|
|
|
|
|
Adjusted non-GAAP net income |
$ |
16,536 |
|
|
$ |
52,152 |
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
Basic |
$ |
0.44 |
|
|
$ |
3.47 |
|
|
Diluted |
$ |
0.44 |
|
|
$ |
3.41 |
|
|
Weighted average number of common shares outstanding: |
|
|
|
|
Basic |
|
13,059,153 |
|
|
|
12,710,646 |
|
|
Diluted |
|
13,153,271 |
|
|
|
12,906,811 |
|
|
|
|
|
|
|
|
Adjusted non-GAAP earnings per share: |
|
|
|
|
Basic |
$ |
1.27 |
|
|
$ |
4.10 |
|
|
Diluted |
$ |
1.26 |
|
|
$ |
4.04 |
|
|
Weighted average number of common shares outstanding: |
|
|
|
|
Basic |
|
13,059,153 |
|
|
|
12,710,646 |
|
|
Diluted |
|
13,153,271 |
|
|
|
12,906,811 |
|
|
|
|
|
|
|
|
EAGLE PHARMACEUTICALS, INC. |
|
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED
NON-GAAP EBITDA (UNAUDITED) |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
Twelve Months Ended March 31, |
|
Twelve Months Ended December 31, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) - GAAP |
$ |
5,750 |
|
|
$ |
44,058 |
|
|
$ |
(2,666 |
) |
|
$ |
35,642 |
|
|
|
|
|
|
|
|
|
|
|
|
Add back: |
|
|
|
|
|
|
|
|
|
Interest expense, net of interest income |
|
1,304 |
|
|
|
212 |
|
|
|
4,866 |
|
|
|
3,774 |
|
|
|
Income tax provision |
|
4,481 |
|
|
|
13,602 |
|
|
|
16,670 |
|
|
|
25,791 |
|
|
|
Depreciation and amortization expense |
|
5,552 |
|
|
|
908 |
|
|
|
16,668 |
|
|
|
12,024 |
|
|
|
|
|
|
|
|
|
|
|
|
Add back: |
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
4,639 |
|
|
|
4,295 |
|
|
|
16,795 |
|
|
|
16,451 |
|
|
|
Fair value adjustments on equity investment |
|
403 |
|
|
|
2,530 |
|
|
|
2,330 |
|
|
|
4,457 |
|
|
|
Convertible promissory note related adjustments |
|
— |
|
|
|
36 |
|
|
|
4,206 |
|
|
|
4,242 |
|
|
|
Fair value adjustments related to derivative instruments |
|
(77 |
) |
|
|
(608 |
) |
|
|
8,496 |
|
|
|
7,965 |
|
|
|
Foreign currency exchange gain |
|
(90 |
) |
|
|
— |
|
|
|
(737 |
) |
|
|
(647 |
) |
|
|
Gain on euro debt |
|
— |
|
|
|
— |
|
|
|
(264 |
) |
|
|
(264 |
) |
|
|
Legal Settlement |
|
— |
|
|
|
300 |
|
|
|
— |
|
|
|
300 |
|
|
|
Acquisition related costs |
|
— |
|
|
|
1,490 |
|
|
|
11,632 |
|
|
|
13,122 |
|
|
|
Inventory step-up |
|
320 |
|
|
|
— |
|
|
|
866 |
|
|
|
546 |
|
|
|
Debt issuance cost |
|
— |
|
|
|
— |
|
|
|
258 |
|
|
|
258 |
|
|
|
Severance |
|
43 |
|
|
|
49 |
|
|
|
8,445 |
|
|
|
8,451 |
|
|
Adjusted Non-GAAP EBITDA |
$ |
22,325 |
|
|
$ |
66,872 |
|
|
$ |
87,565 |
|
|
$ |
132,112 |
|
|
|
|
|
|
|
|
|
|
|
|
EAGLE PHARMACEUTICALS, INC. |
|
RECONCILIATION OF GAAP RESEARCH AND DEVELOPMENT
AND |
|
SELLING, GENERAL AND ADMINISTRATIVE TO ADJUSTED NON-GAAP
RESEARCH |
|
AND DEVELOPMENT AND SELLING, GENERAL AND
ADMINISTRATIVE (UNAUDITED) |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
2023 |
|
|
2022 |
|
Research and development - GAAP |
$ |
9,272 |
|
$ |
6,108 |
|
Add back: |
|
|
|
|
|
Stock-based compensation expense |
|
687 |
|
|
643 |
|
|
Depreciation expense |
|
30 |
|
|
48 |
|
Research and development - Non-GAAP |
$ |
8,555 |
|
$ |
5,417 |
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
2023 |
|
|
2022 |
|
Selling, general and administrative - GAAP |
$ |
27,960 |
|
$ |
22,182 |
|
Add back: |
|
|
|
|
|
Stock-based compensation expense |
|
3,952 |
|
|
3,652 |
|
|
Depreciation expense |
|
80 |
|
|
129 |
|
|
Severance |
|
43 |
|
|
49 |
|
|
Acquisition related costs |
|
— |
|
|
1,490 |
|
|
Legal settlement |
|
— |
|
|
300 |
|
Selling, general and administrative - Non-GAAP |
$ |
23,885 |
|
$ |
16,562 |
|
|
|
|
|
|
|
Important Safety Information for
BARHEMSYS® (amisulpride)7
Injection
Contraindication
BARHEMSYS is contraindicated in patients with known
hypersensitivity to amisulpride.
QT Prolongation
BARHEMSYS causes dose- and concentration-dependent prolongation
of the QT interval. The recommended dosage is 5 mg or 10 mg as a
single intravenous (IV) dose infused over 1 to 2 minutes.
Avoid BARHEMSYS in patients with congenital long QT syndrome and
in patients taking droperidol.
Electrocardiogram (ECG) monitoring is recommended in patients
with pre-existing arrhythmias/cardiac conduction disorders,
electrolyte abnormalities (e.g., hypokalemia or hypomagnesemia),
congestive heart failure, and in patients taking other medicinal
products (e.g., ondansetron) or with other medical conditions known
to prolong the QT interval.
Adverse Reactions
Common adverse reactions reported in ≥ 2% of adult patients who
received BARHEMSYS 5 mg (n=748) and at a higher rate than placebo
(n=741) in clinical trials for the prevention of PONV were: chills
(4% vs. 3%), hypokalemia (4% vs. 2%), procedural hypotension (3%
vs. 2%), and abdominal distention (2% vs. 1%).
Serum prolactin concentrations were measured in one prophylaxis
study where 5% (9/176) of BARHEMSYS-treated patients had increased
blood prolactin reported as an adverse reaction compared with 1%
(1/166) of placebo-treated patients.
The most common adverse reaction, reported in ≥ 2% of adult
patients who received BARHEMSYS 10 mg (n=418) and at a higher rate
than placebo (n=416), in clinical trials for the treatment of PONV
was infusion site pain (6% vs. 4%).
Use in Specific Populations
Lactation
Amisulpride is present in human milk. There are no reports of
adverse effects on the breastfed child and no information on the
effects of amisulpride on milk production.
BARHEMSYS may result in an increase in serum prolactin levels,
which may lead to a reversible increase in maternal milk
production. In a clinical trial, serum prolactin concentrations in
females (n=112) increased from a mean of 10 ng/mL at baseline to 32
ng/mL after BARHEMSYS treatment and from 10 ng/mL to 19 ng/mL in
males (n=61). No clinical consequences due to elevated prolactin
levels were reported.
To minimize exposure to a breastfed infant, lactating women may
consider interrupting breastfeeding and pumping and discarding
breast milk for 48 hours after receiving a dose of BARHEMSYS.
Pediatric Use
Safety and effectiveness in pediatric patients have not been
established.
Geriatric Use
No overall differences in safety or effectiveness were observed
between these patients and younger patients, and other reported
clinical experience has not identified differences in responses
between the elderly and younger patients, but greater sensitivity
of some older individuals cannot be ruled out.
Renal Impairment
Avoid BARHEMSYS in patients with severe renal impairment
(estimated glomerular filtration rate [eGFR] < 30 mL/min/1.73
m2). The pharmacokinetics of amisulpride in patients with severe
renal impairment have not been adequately studied in clinical
trials. Amisulpride is known to be substantially excreted by the
kidneys, and patients with severe renal impairment may have
increased systemic exposure and an increased risk of adverse
reactions.
No dosage adjustment is necessary in patients with mild to
moderate renal impairment
(eGFR ≥ 30 mL/min/1.73 m2).
Drug Interactions
- BARHEMSYS causes dose- and
concentration-dependent QT prolongation. To avoid potential
additive effects, avoid use of BARHEMSYS in patients taking
droperidol.
- ECG monitoring is recommended in
patients taking other drugs known to prolong the QT interval (e.g.,
ondansetron).
- Reciprocal antagonism of effects
occurs between dopamine agonists (e.g., levodopa) and BARHEMSYS.
Avoid using levodopa with BARHEMSYS.
Important Safety Information for
BYFAVO™ (remimazolam)8 Injection
Indications
BYFAVO is a benzodiazepine indicated for the induction and
maintenance of procedural sedation in adults undergoing procedures
lasting 30 minutes or less.
Important Safety Information
WARNING: PERSONNEL AND EQUIPMENT FOR MONITORING AND
RESUSCITATION AND RISKS FROM CONCOMITANT USE WITH OPIOID
ANALGESICS
Personnel and Equipment for Monitoring and
Resuscitation
- Only
personnel trained in the administration of procedural sedation, and
not involved in the conduct of the diagnostic or therapeutic
procedure, should administer BYFAVO.
-
Administering personnel must be trained in the detection
and management of airway obstruction, hypoventilation, and apnea,
including the maintenance of a patent airway, supportive
ventilation, and cardiovascular resuscitation.
- BYFAVO has
been associated with hypoxia, bradycardia, and hypotension.
Continuously monitor vital signs during sedation and during the
recovery period.
-
Resuscitative drugs, and age- and size-appropriate
equipment for bag-valve-mask–assisted ventilation must be
immediately available during administration of
BYFAVO.
Risks From Concomitant Use With Opioid Analgesics and
Other Sedative-Hypnotics
Concomitant use of benzodiazepines, including BYFAVO,
and opioid analgesics may result in profound sedation, respiratory
depression, coma, and death. The sedative effect of intravenous
BYFAVO can be accentuated by concomitantly administered CNS
depressant medications, including other benzodiazepines and
propofol. Continuously monitor patients for respiratory depression
and depth of sedation.
Contraindication
BYFAVO is contraindicated in patients with a history of severe
hypersensitivity reaction to dextran 40 or products containing
dextran 40.
Personnel and Equipment for Monitoring and
Resuscitation
Clinically notable hypoxia, bradycardia, and hypotension were
observed in Phase 3 studies of BYFAVO. Continuously monitor vital
signs during sedation and through the recovery period. Only
personnel trained in the administration of procedural sedation, and
not involved in the conduct of the diagnostic or therapeutic
procedure, should administer BYFAVO. Administering personnel must
be trained in the detection and management of airway obstruction,
hypoventilation, and apnea, including the maintenance of a patent
airway, supportive ventilation, and cardiovascular resuscitation.
Resuscitative drugs, and age- and size-appropriate equipment for
bag-valve-mask–assisted ventilation must be immediately available
during administration of BYFAVO. Consider the potential for
worsened cardiorespiratory depression prior to using BYFAVO
concomitantly with other drugs that have the same potential (e.g.,
opioid analgesics or other sedative-hypnotics). Administer
supplemental oxygen to sedated patients through the recovery
period. A benzodiazepine reversal agent (flumazenil) should be
immediately available during administration of BYFAVO.
Risks From Concomitant Use With Opioid Analgesics and
Other Sedative-Hypnotics
Concomitant use of BYFAVO and opioid analgesics may result in
profound sedation, respiratory depression, coma, and death. The
sedative effect of IV BYFAVO can be accentuated when administered
with other CNS depressant medications (eg, other benzodiazepines
and propofol). Titrate the dose of BYFAVO when administered with
opioid analgesics and sedative-hypnotics to the desired clinical
response. Continuously monitor sedated patients for hypotension,
airway obstruction, hypoventilation, apnea, and oxygen
desaturation. These cardiorespiratory effects may be more likely to
occur in patients with obstructive sleep apnea, the elderly, and
ASA-PS class III or IV patients.
Hypersensitivity Reactions
BYFAVO contains dextran 40, which can cause hypersensitivity
reactions, including rash, urticaria, pruritus, and anaphylaxis.
BYFAVO is contraindicated in patients with a history of severe
hypersensitivity reaction to dextran 40 or products containing
dextran 40.
Neonatal Sedation
Use of benzodiazepines during the later stages of pregnancy can
result in sedation (respiratory depression, lethargy, hypotonia) in
the neonate. Observe newborns for signs of sedation and manage
accordingly.
Pediatric Neurotoxicity
Published animal studies demonstrate that anesthetic and
sedation drugs that block NMDA receptors and/or potentiate GABA
activity increase neuronal apoptosis in the developing brain and
result in long-term cognitive deficits when used for longer than 3
hours. The clinical significance of this is not clear. However, the
window of vulnerability to these changes is believed to correlate
with exposures in the third trimester of gestation through the
first several months of life but may extend out to approximately 3
years of age in humans.
Anesthetic and sedation drugs are a necessary part of the care
of children needing surgery, other procedures, or tests that cannot
be delayed, and no specific medications have been shown to be safer
than any other. Decisions regarding the timing of any elective
procedures requiring anesthesia should take into consideration the
benefits of the procedure weighed against the potential risks.
Adverse Reactions
The most common adverse reactions reported in >10% of
patients (N=630) receiving BYFAVO 5-30 mg (total dose) and
undergoing colonoscopy (two studies) or bronchoscopy (one study)
were: hypotension, hypertension, diastolic hypertension, systolic
hypertension, hypoxia, and diastolic hypotension.
Use in Specific Populations
Pregnancy
There are no data on the specific effects of BYFAVO on
pregnancy. Benzodiazepines cross the placenta and may produce
respiratory depression and sedation in neonates. Monitor neonates
exposed to benzodiazepines during pregnancy and labor for signs of
sedation and respiratory depression.
Lactation
Monitor infants exposed to BYFAVO through breast milk for
sedation, respiratory depression, and feeding problems. A lactating
woman may consider interrupting breastfeeding and pumping and
discarding breast milk during treatment and for 5 hours after
BYFAVO administration.
Pediatric Use
Safety and effectiveness in pediatric patients have not been
established. BYFAVO should not be used in patients less than 18
years of age.
Geriatric Use
No overall differences in safety or effectiveness were observed
between these subjects and younger subjects. However, there is a
potential for greater sensitivity (eg, faster onset, oversedation,
confusion) in some older individuals. Administer supplemental doses
of BYFAVO slowly to achieve the level of sedation required and
monitor all patients closely for cardiorespiratory
complications.
Hepatic Impairment
In patients with severe hepatic impairment, the dose of BYFAVO
should be carefully titrated to effect. Depending on the overall
status of the patient, lower frequency of supplemental doses may be
needed to achieve the level of sedation required for the procedure.
All patients should be monitored for sedation-related
cardiorespiratory complications.
Abuse and Dependence
BYFAVO is a federally controlled substance (CIV) because it
contains remimazolam which has the potential for abuse and physical
dependence.
1 Adjusted non-GAAP net income, adjusted non-GAAP earnings per
share, adjusted non-GAAP EBITDA, adjusted non-GAAP R&D expense
and adjusted non-GAAP SG&A expense are non-GAAP financial
measures. For descriptions and reconciliations of these non-GAAP
financial measures to their most comparable GAAP financial
measures, please see below and the tables at the end of this press
release.2 Based on IQVIA SMART-US weekly volume data and internal
data.3
https://www.bendekahcp.com/globalassets/bendeka-hcp/prescribinginformation.pdf4
https://belrapzo.com/prescribing-information.pdf5 IQVIA SMART-US
weekly volume data for the first quarter of 2023 and 2022 historic
IQVIA data.6
https://bynder.acaciapharma.com/m/5d7c2cd0d58865f7/original/Barhemsys-Prescribing-Information.pdf7
https://bynder.acaciapharma.com/m/5d7c2cd0d58865f7/original/Barhemsys-Prescribing-Information.pdf8
https://bynder.acaciapharma.com/m/403e8c343b2922de/original/Byfavo-PI.pdf
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