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| 8-K - CURRENT REPORT - INNOVUS PHARMACEUTICALS, INC. | innv8k_aug142017.htm |
Exhibit 99.1
Innovus Pharmaceuticals Reports a Quarterly Net
Revenue
Increase of 99.2% and Net Loss Decrease of 74.1%
Compared to the Same Period in 2016
FlutiCare™ on Track for Q4 2017 Launch
SAN
DIEGO, August 14, 2017 – Innovus Pharmaceuticals, Inc.,
(“Innovus Pharma” or the “Company”) (OTCQB:
INNV), today announced second quarter 2017 net revenue of $2.0
million compared to $1.0 million in net revenue for the same period
in 2016. Net revenue for the six months ended June 30, 2017 was
$4.2 million compared to $1.2 million for the same period in 2016.
Net loss for the second quarter 2017 was $1.1 million compared to
$4.4 million for the same period in 2016 and the net loss for the
six months ended June 30, 2017 and 2016 was $3.7 million and $5.9
million, respectively.
“We
continue to increase our revenue year over year and decrease our
operating loss sequentially quarter over quarter to meet our
profitability goal entering 2018,” stated Bassam Damaj,
President and Chief Executive Officer of Innovus Pharma.
“With the FlutiCare™ launch on the horizon, our push
for greater growth and revenue is the icing on the cake”
continued Dr. Damaj.
Financial highlights for the three months ended June 30, 2017
included:
●
Net revenue totaled
$2.0 million for the three months ended June 30, 2017, compared to
net revenue of $1.0 million for the three months ended June 30,
2016.
●
Gross margin
increased to 80.0% for the three months ended June 30, 2017,
significantly higher than the gross margin for the three months
ended June 30, 2016 which totaled 74.2%.
●
Total operating
expense was $3.2 million for the three months ended June 30, 2017
or a sequential quarter over quarter decrease of $0.7 million or
17.6% when compared to the three months ended March 31,
2017.
●
Sequential quarter
over quarter loss from operations decreased by $0.5 million or
32.3% to $1.1 million for the three months ended June 30, 2017
compared to the three months ended March 31, 2017.
●
Net loss totaled
$1.1 million, or ($0.01) per common share, for the three months
ended June 30, 2017 representing a 74.1% decrease year over year.
The net loss included $0.3 million in non-cash expense related to
the amortization of debt discounts, stock-based compensation and
depreciation and amortization. Net loss for the three months ended
June 30, 2016 totaled $4.4 million or ($0.05) per common
share.
●
Sequential quarter
over quarter cash used in operations decreased to approximately
$474,000 for the three months ended June 30, 2017 compared to
approximately $496,000 for the three months ended March 31,
2017.
●
Cash balance
totaled $1.8 million at June 30, 2017.
Financial highlights for the six months ended June 30, 2017
included:
●
Net revenue totaled
$4.2 million for the six months ended June 30, 2017, compared to
net revenue of $1.2 million for the six months ended June 30,
2016.
●
Gross margin
increased to 79.9% for the six months ended June 30, 2017,
significantly higher than gross margin for the six months ended
June 30, 2016 which totaled 69.2%.
●
Total operating
expense increased to $7.0 million and included $0.7 million in
non-cash share-based compensation and $0.3 million in non-cash
depreciation and amortization for the six months ended June 30,
2017.
●
Net loss totaled
$3.7 million, or ($0.02) per common share, for the six months ended
June 30, 2017. The net loss included a non-cash expense of $0.3
million for the loss on extinguishment of debt as a result of the
prepayment of the remaining 2016 convertible debentures. The net
loss also included interest expense of $0.7 million, of which $0.6
million was non-cash and related to the amortization of debt
discounts. Net loss for the six months ended June 30, 2016 totaled
$5.9 million or ($0.08) per common share.
Second quarter 2017 and recent developments:
●
Entered into a
major supply agreement in May 2017 with West-Ward Pharmaceuticals
International Limited, a wholly-owned subsidiary of Hikma
Pharmaceuticals PLC to launch FlutiCare™ in the fourth
quarter of 2017 under their approved OTC ANDA No. 207597 for
fluticasone propionate nasal spray
USP, 50 mcg per spray;
●
Ordered our first commercial batch of 220,000
units of FlutiCare™ for
our expected fourth quarter launch in the U.S.;
●
Entered into the
oncology supportive care market by signing an exclusive license
agreement in June 2016 to two GRAS-Listed OTC compounds for
Cachexia and muscle growth and repair from the University of Iowa
Research Foundation;
●
Entered into an
exclusive license and distribution agreement with Densmore
Pharmaceutical International in April 2017 for the
commercialization of Zestra® in France and
Belgium;
●
Expanded the
exclusive license and distribution territory under our agreement
with Densmore to Singapore and Vietnam in July 2017;
●
Entered into an
exclusive license and distribution agreement with Luminarie Pty
Ltd. in May 2017 for the commercialization of Zestra® and
Zestra Glide® in Australia, New Zealand and the
Philippines;
●
Approval
notification as a Class I medical device was received to
commercialize Zestra® in Australia in July 2017;
●
The combination of
Apeaz™ cream for arthritis pain relief and ArthriVarx™,
a supplement designed to maximize and support joint health,
launched under the Beyond Human® Sales and Marketing Platform
in July 2017;
●
ProstaGorx™,
a clinical strength, multi-response prostate supplement,
scientifically formulated to effectively maintain good prostate
health, was launched under the Beyond Human® Sales and
Marketing Platform in May 2017;
●
AllerVarx™, a
clinically proven supplement for the relief of allergy symptoms,
was launched under the Beyond Human® Sales and Marketing
Platform in May 2017;
●
Expanded product
approval for Zestra Glide® and Sensum+® in the 28
countries of the European Union; and
●
Expanded patent
coverage and filing for Vesele® in the United States and for
Sensum+® in Morocco and the 28 countries of the European
Union.
The
Company will host a conference call at 4:15 p.m. ET/1:15 p.m. PT
today to discuss the financial results and recent business
developments. To participate in the call, please dial
1-877-883-0383 for domestic callers or 1-412-902-6506 for
international callers. Participant Elite Entry
Number: 2626860. A replay of the call will be available for 30
days. To access the replay, dial 1-877-344-7529 domestically
or 1-412-317-0088 internationally and reference Conference ID:
10111229. The replay will be available shortly after the end of the
conference call.
Consolidated Statements of Operations
|
|
(Unaudited)
For the
|
|
|
|
Three Months Ended
|
|
|
|
June
30,
|
|
|
|
2017
|
2016
|
|
Net
revenue:
|
|
|
|
Product sales, net
|
$2,031,157
|
$1,019,520
|
|
License revenue
|
7,500
|
-
|
|
Net
revenue
|
2,038,657
|
1,019,520
|
|
|
|
|
|
Operating
expense:
|
|
|
|
Cost of product sales
|
408,579
|
262,934
|
|
Research and development
|
15,063
|
3,892
|
|
Sales and marketing
|
1,555,736
|
249,515
|
|
General and administrative
|
1,182,235
|
945,572
|
|
Total
operating expense
|
3,161,613
|
1,461,913
|
|
|
|
|
|
Loss
from operations
|
(1,122,956)
|
(442,393)
|
|
|
|
|
|
Other
income and (expense):
|
|
|
|
Interest expense
|
(110,130)
|
(1,860,399)
|
|
Other income (expense), net
|
(206)
|
111
|
|
Fair value adjustment for contingent consideration
|
98,979
|
(16,750)
|
|
Change in fair value of derivative liabilities
|
3,463
|
(2,040,909)
|
|
Total
other expense, net
|
(7,894)
|
(3,917,947)
|
|
|
|
|
|
Loss
before provision for income taxes
|
(1,130,850)
|
(4,360,340)
|
|
|
|
|
|
Provision
for income taxes
|
3,200
|
-
|
|
|
|
|
|
Net
loss
|
$(1,134,050)
|
$(4,360,340)
|
|
|
|
|
|
Net
loss per share of common stock – basic and
diluted
|
$(0.01)
|
$(0.05)
|
|
|
|
|
|
Weighted
average number of shares of common stock outstanding – basic
and diluted
|
159,997,395
|
85,395,846
|
|
|
(Unaudited)
For the |
|
|
|
Six
Months Ended
|
|
|
|
June
30,
|
|
|
|
2017
|
2016
|
|
Net
revenue:
|
|
|
|
Product sales, net
|
$4,208,447
|
$1,243,983
|
|
License revenue
|
7,500
|
1,000
|
|
Net
revenue
|
4,215,947
|
1,244,983
|
|
|
|
|
|
Operating
expense:
|
|
|
|
Cost of product sales
|
849,055
|
383,057
|
|
Research and development
|
18,246
|
3,892
|
|
Sales and marketing
|
3,243,087
|
285,011
|
|
General and administrative
|
2,886,898
|
2,233,309
|
|
Total
operating expense
|
6,997,286
|
2,905,269
|
|
|
|
|
|
Loss
from operations
|
(2,781,339)
|
(1,660,286)
|
|
|
|
|
|
Other
income and (expense):
|
|
|
|
Interest expense
|
(667,609)
|
(2,251,250)
|
|
Loss on extinguishment of debt
|
(304,828)
|
-
|
|
Other income (expense), net
|
(822)
|
1,876
|
|
Fair value adjustment for contingent consideration
|
126,154
|
(22,334)
|
|
Change in fair value of derivative liabilities
|
(48,193)
|
(1,983,315)
|
|
Total
other expense, net
|
(895,298)
|
(4,255,023)
|
|
|
|
|
|
Loss
before provision for income taxes
|
(3,676,637)
|
(5,915,309)
|
|
|
|
|
|
Provision
for income taxes
|
3,200
|
-
|
|
|
|
|
|
Net
loss
|
$(3,679,837)
|
$(5,915,309)
|
|
|
|
|
|
Net
loss per share of common stock – basic and
diluted
|
$(0.02)
|
$(0.08)
|
|
|
|
|
|
Weighted
average number of shares of common stock outstanding – basic
and diluted
|
147,617,064
|
70,271,333
|
|
|
|
|
Condensed Consolidated Balance Sheet Data
|
|
June
30,
|
December 31,
|
|
|
2017
|
2016
|
|
|
(Unaudited)
|
(1)
|
|
Assets
|
|
|
|
Cash
|
$1,824,633
|
$829,933
|
|
Accounts receivable, net
|
21,148
|
33,575
|
|
Prepaid expense and other current assets
|
394,273
|
863,664
|
|
Inventories
|
586,455
|
599,856
|
|
Intangible assets & other non-current assets
|
5,587,780
|
5,900,350
|
|
Total
assets
|
$8,414,289
|
$8,227,378
|
|
|
|
|
|
Liabilities & Stockholders' Equity
|
|
|
|
Accounts payable and accrued expense
|
$1,256,551
|
$1,210,050
|
|
Total accrued compensation
|
2,576,539
|
2,299,593
|
|
Deferred revenue and customer deposits
|
46,769
|
11,000
|
|
Accrued interest payable
|
20,587
|
47,782
|
|
Total
notes payable and non-convertible debenture, net of
discount
|
819,252
|
681,127
|
|
Total derivative liabilities
|
90,206
|
483,744
|
|
Total contingent consideration
|
1,559,763
|
1,685,917
|
|
Convertible debentures, net of discount
|
-
|
714,192
|
|
Total stockholders' equity
|
2,044,622
|
1,093,973
|
|
Total
liabilities and stockholders’ equity
|
$8,414,289
|
$8,227,378
|
|
|
|
|
(1) The Condensed Consolidated Balance Sheet Data has been
derived from the audited consolidated financial statements as of
that date.
About Innovus Pharmaceuticals, Inc.
Headquartered in San Diego, Innovus Pharma is an emerging
over-the-counter (“OTC”) consumer goods and specialty
pharmaceutical company engaged in the commercialization, licensing
and development of safe and effective non-prescription medicine and
consumer care products to improve men’s and women’s
health and vitality and respiratory diseases. Innovus Pharma delivers innovative and uniquely
presented and packaged health solutions through its (a) OTC
medicines and consumer and health products, which we market
directly, (b) commercial partners to primary care physicians,
urologists, gynecologists and therapists, and (c) directly to
consumers through our on-line channels, retailers and wholesalers.
The Company is dedicated to being a leader in developing and
marketing new OTC and branded Abbreviated New Drug Application
(“ANDA”) products. The Company is actively pursuing
opportunities where existing prescription drugs have recently, or
are expected to, change from prescription (or Rx) to
OTC.
For more information, go to www.innovuspharma.com; www.zestra.com;
www.ejectdelay.com; www.myvesele.com; www.sensumplus.com;
www.myandroferti.com;
www.fluticare.com;
www.beyondhumantestosterone.com; www.getbeyondhuman.com;
www.trybeyondhuman.com; www.recalmax.com;
www.prostagorx.com;
www.allervarx.com;
and www.apeaz.com.
Innovus Pharma’s Forward-Looking Safe Harbor
Statements under the Private Securities Litigation Reform Act, as
amended: with the exception of the historical information contained
in this release, the matters described herein contain
forward-looking statements that involve risks and uncertainties
that may individually or mutually impact the matters herein
described for a variety of reasons that are outside the control of
the Company, including, but not limited to, its financial results,
projected revenues, projected online subscribers and other
customers, estimated markets for its products, and statements about
achieving its other corporate and business development, growth,
commercialization, financial and staffing objectives. Readers are
cautioned not to place undue reliance on these forward-looking
statements as actual results could differ materially from the
forward-looking statements contained herein. Readers are urged to
read the risk factors set forth in the Company's most recent filing
on Form S-1, annual report on Form 10-K, subsequent quarterly
reports filed on Form 10-Q and other filings made with the SEC.
Copies of these reports are available from the SEC's website or
without charge from the Company.
# #
#
Contact:
Emerging
Markets Consulting, LLC
James
S. Painter, III
321-206-6681
jamespainter@emergingmarketsllc.com