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| 8-K - 8-K - JUNIPER NETWORKS INC | d271657d8k.htm |
Exhibit 99.1
Juniper Pharmaceuticals Reports Third Quarter 2017
Financial and Operating Results
CRINONE® Revenues Increased 19% and Juniper Pharma Services
Revenues Increased 38% Year-over-Year
Implemented Strategic Reprioritization
BOSTON, November 2, 2017 — Juniper Pharmaceuticals (Nasdaq:JNP), a diversified healthcare company focused on women’s health, today announced financial results for the three-month period ended September 30, 2017. Cash and cash equivalents were $22.1 million at September 30, 2017, an increase of 3% from June 30, 2017.
“During the third quarter, we delivered robust revenue growth for our core businesses, CRINONE® and Juniper Pharma Services (JPS), which resulted in positive cash flow for the quarter. Our third quarter G&A expense has decreased to align closer to 2016 expenses,” said Alicia Secor, Chief Executive Officer. “The strength in our core businesses provide a solid financial foundation and represents a key near-term growth driver for Juniper. We will continue to focus our resources in 2018 to maintain this momentum and drive further growth in these businesses.”
Corporate Update
| • | Juniper Pharma Services achieved record revenues this quarter, reflecting the continued expansion of customers and service offerings. |
| • | Active discussions with partner Merck KGaA to extend the CRINONE® Progesterone Gel agreement are progressing, and the expansion of this relationship remains a strategic priority for the Company. |
| • | IND-enabling preclinical studies were initiated this quarter, and results from these studies for Juniper’s IVR formulations, JNP-0101, JNP-0201 and JNP-0301, remain on track for topline preclinical data by the end of 2017. At the completion of the in vivo preclinical studies, the Company may decide to further develop JNP-0201, a combination of Estradiol plus natural progesterone IVR, for hormone replacement therapy (HRT) to address symptoms of menopause. |
| • | Partnering opportunities will be explored for JNP-0101, the oxybutynin IVR for the treatment of overactive bladder (OAB), and JNP-0301, a natural progesterone IVR for the prevention of pre-term birth (PTB) in women with a short cervical length at mid-pregnancy. |
| • | Jennifer Good was appointed to the Juniper Board of Directors, and will serve as a member of both the Audit and Compensation Committees. Ms. Good brings to the board proven executive operational experience and financial leadership. |
Third Quarter Financial Results
“We continued to see strong year-over-year growth in our core business during the third quarter of 2017,” said Jeff Young, Chief Financial Officer at Juniper. “CRINONE® product revenues were up 19%, and revenues from Juniper Pharma Services grew 38%, compared to the third quarter of 2016.”
Third quarter total revenues increased 12% to $13.0 million, compared with $11.6 million for the prior year quarter.
Product revenues increased by $1.3 million to $8.4 million, driven by continued in-market growth and new market sales of CRINONE® by Merck KGaA, Darmstadt, Germany.
Service revenues from Juniper Pharma Services were $4.6 million, an increase of $1.3 million, or 38%, versus the third quarter of last year, driven by new and existing customer growth.
Gross profit decreased to $5.3 million as compared to $5.9 million in the quarter ended September 30, 2016. Excluding the impact of royalty revenue from the prior period, the gross profit for the quarter ended September 30, 2016 would have been $4.7 million.
Total operating expenses were $6.8 million in the third quarter of 2017, a $1.1 million increase as compared to the prior year period. This increase was primarily driven by the approximately $0.8 million restructuring charge recorded in September related to the Company’s reprioritization efforts.
Juniper’s net loss was $1.4 million, or $(0.13) per diluted share, in the third quarter of 2017, compared to a net income of $0.2 million, or $0.2 per diluted share, in the third quarter of 2016.
Liquidity
Cash and cash equivalents were $22.1 million as of September 30, 2017, versus $21.5 million at June 30, 2017.
Conference Call
As previously announced, Juniper’s management team will hold a conference call to discuss financial results for the second quarter ended September 30, 2017, as follows:
| Date: | November 2, 2017 | |
| Time: | 4:30 p.m. ET | |
| Dial-in numbers: | Toll free: (866) 374-4635 (U.S.), (855) 669-9657 (Canada), or International: (412) 902-4218 |
Webcast (live and archive): www.juniperpharma.com, under “Investors” or click here.
The teleconference replay will be available approximately one hour after completion through Thursday, November 9, 2017, at (877) 344-7529 (U.S.), (855) 669-9658 (Canada) or (412) 317-0088 (International). The replay access code is 10113476.
The archived webcast will be available for one year via the aforementioned URLs.
About Juniper Pharmaceuticals
Juniper Pharmaceuticals, Inc. core businesses include its CRINONE® (progesterone gel) franchise and Juniper Pharma Services, which provides high-end fee-for-service pharmaceutical development and clinical trials manufacturing to clients. The Company is also leveraging its differentiated intravaginal ring technology, which offers the potential to address unmet needs in women’s health. Please visit www.juniperpharma.com for more information.
Juniper Pharmaceuticals™ is a trademark of Juniper Pharmaceuticals, Inc., in the U.S. and EU.
CRINONE® is a registered trademark of Merck KGaA, Darmstadt, Germany, outside the U.S. and of Allergan plc in the U.S.
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the corporate reprioritization, reduction in force and restructuring charges, the potential cost savings resulting from these changes and the ability to achieve at least a cash flow neutral position in 2018, the timing of an IND for JNP-201, the potential to partner Juniper’s other product candidates, the potential to complete a contract extension under Juniper’s CRINONE® supply contract with Merck, the ability to continue to grow the JPS business, the strength of Juniper’s core business, product candidates and future results. Management believes that these forward-looking statements are reasonable as and when made. However, such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those projected in the forward-looking statements. These risks and uncertainties include, but are not limited to: risks associated with potential employee retention challenges following our restructuring; risks associated with the drug development process generally, including the outcomes of planned clinical trials and the regulatory review process; the risk that the results of previously conducted studies involving our product candidates will not be repeated or observed in ongoing or future studies or following commercial launch, if such product candidates are approved; risks associated with obtaining, maintaining and protecting intellectual property; risks associated with Juniper Pharmaceuticals’ ability to enforce its patents against infringers and defend its patent portfolio against challenges from third parties; the risk of competition from currently approved therapies and from other companies developing products for similar uses; risk associated with Juniper Pharmaceuticals’ ability to manage operating expenses and/or obtain additional funding to support its business activities; and risks associated with Juniper Pharmaceuticals’ dependence on third parties, particularly with respect to JPS and CRINONE®. For a discussion of certain risks and uncertainties associated with Juniper Pharmaceuticals’ forward-looking statements, please review the Company’s reports filed with the SEC, including, but not limited to, its Annual Report on Form 10-K for the period ended December 31, 2016 and subsequent filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date on which they are made. These statements are based on management’s current expectations and Juniper Pharmaceuticals does not undertake any responsibility to revise or update any forward-looking statements contained herein, except as expressly required by law.
Investor Contact:
Argot Partners
Laura Perry or Heather Savelle
212-600-1902
laura@argotpartners.com
heather@argotpartners.com
To receive Juniper’s press releases, SEC filings or calendar alerts by email click here.
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JUNIPER PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
| September 30, 2017 |
December 31, 2016 |
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| Assets: |
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| Cash and cash equivalents |
$ | 22,106 | $ | 20,994 | ||||
| Accounts receivable, net |
6,521 | 6,573 | ||||||
| Inventories |
5,897 | 5,621 | ||||||
| Prepaid expenses and other current assets |
2,152 | 1,539 | ||||||
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| Total current assets |
36,676 | 34,727 | ||||||
| Property and equipment, net |
15,127 | 13,366 | ||||||
| Intangible assets, net |
817 | 969 | ||||||
| Goodwill |
9,056 | 8,342 | ||||||
| Other assets |
79 | 167 | ||||||
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| Total Assets |
$ | 61,755 | $ | 57,571 | ||||
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| Liabilities, contingently redeemable preferred stock, and stockholders’ equity: |
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| Accounts payable |
$ | 4,607 | $ | 3,893 | ||||
| Accrued expenses and other |
5,739 | 5,271 | ||||||
| Deferred revenue |
7,444 | 5,624 | ||||||
| Current portion of long-term debt |
535 | 204 | ||||||
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| Total current liabilities |
18,325 | 14,992 | ||||||
| Long-term debt, net of current portion |
3,369 | 2,203 | ||||||
| Other noncurrent liabilities |
148 | 56 | ||||||
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| Total Liabilities |
21,842 | 17,251 | ||||||
| Commitments and Contingencies |
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| Series C preferred stock |
— | 550 | ||||||
| Total stockholders’ equity |
39,913 | 39,770 | ||||||
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| Total liabilities, contingently redeemable preferred stock, and stockholders’ equity |
$ | 61,755 | $ | 57,571 | ||||
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JUNIPER PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Revenues |
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| Product revenues |
$ | 8,389 | $ | 7,057 | $ | 25,684 | $ | 20,716 | ||||||||
| Service revenues |
4,597 | 3,337 | 12,505 | 9,964 | ||||||||||||
| Royalties |
— | 1,162 | — | 2,963 | ||||||||||||
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| Total net revenues |
12,986 | 11,556 | 38,189 | 33,643 | ||||||||||||
| Cost of product revenues |
5,160 | 3,683 | 14,776 | 11,892 | ||||||||||||
| Cost of service revenues |
2,559 | 2,022 | 7,149 | 6,630 | ||||||||||||
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| Total cost of revenues |
7,719 | 5,705 | 21,925 | 18,522 | ||||||||||||
| Gross profit |
5,267 | 5,851 | 16,264 | 15,121 | ||||||||||||
| Operating expenses |
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| Sales and marketing |
517 | 259 | 1,306 | 910 | ||||||||||||
| Research and development |
2,291 | 2,304 | 5,285 | 8,234 | ||||||||||||
| General and administrative |
3,238 | 3,111 | 12,263 | 9,815 | ||||||||||||
| Restructuring charge |
756 | — | 756 | — | ||||||||||||
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| Total operating expenses |
6,802 | 5,674 | 19,610 | 18,959 | ||||||||||||
| Loss from operations |
(1,535 | ) | 177 | (3,346 | ) | (3,838 | ) | |||||||||
| Interest expense, net |
(47 | ) | (24 | ) | (105 | ) | (74 | ) | ||||||||
| Other income, net |
127 | 90 | 179 | 296 | ||||||||||||
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| (Loss) income before income taxes |
(1,455 | ) | 243 | (3,272 | ) | (3,616 | ) | |||||||||
| Income tax (benefit) expense |
(45 | ) | (5 | ) | (45 | ) | 47 | |||||||||
| Net loss (income) |
$ | (1,410 | ) | $ | 248 | $ | (3,227 | ) | $ | (3,663 | ) | |||||
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| Diluted net (loss) income per share |
$ | (0.13 | ) | $ | 0.02 | $ | (0.26 | ) | $ | (0.34 | ) | |||||
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| Diluted weighted average shares outstanding |
10,844 | 11,060 | 10,817 | 10,791 | ||||||||||||
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| Basic net (loss) income per share |
$ | (0.13 | ) | $ | 0.02 | $ | (0.26 | ) | $ | (0.34 | ) | |||||
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| Basic weighted average shares outstanding |
10,844 | 10,799 | 10,817 | 10,791 | ||||||||||||
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