Full Press Release Details
Aytu Reports First Quarter 2020 Financial Results
ACCESSWIRE / November 14, 2019 / Aytu BioScience, Inc. (NASDAQ:
AYTU), a specialty pharmaceutical company focused on global
commercialization of novel products addressing significant medical
needs, today will provide an overview of its business, including
the company's operational and financial results for its fiscal
first quarter 2020 that ended September 30, 2019. The company will
host a live conference call and webcast today at 4:30 p.m. ET.
Conference call details are provided at the end of this press
2020 First Quarter Financial and Corporate Highlights
$1.44 million for the three months ended September 30,
with cash, cash equivalents and restricted cash of $7.3 million,
which does not include $10 million raised in a private placement
closed subsequent to quarter end.
definitive agreement to acquire Innovus Pharmaceuticals, Inc, and
purchased a portfolio of prescription products from Cerecor, Inc,
resulting in Pro Forma revenue1 of
approximately $10.6 million and $42.7 million for the three and
twelve months ended September 30, 2019.
(approximately $9.3 million after fees and expenses) through a
private placement with healthcare institutional investors,
resulting in Pro Forma net cash2, cash equivalents
and restricted cash of approximately $16.6 million as of September
on the first quarter of 2019, Josh Disbrow, Chief Executive Officer
of Aytu BioScience, stated, During and subsequent to the
quarter ending September 30 we announced two transformative
transactions that increase our scale and are expected to accelerate
our path to profitability. Those two transactions were the
definitive agreement to acquire Innovus Pharmaceuticals and the
acquisition of the portfolio of prescription products from Cerecor,
Inc. These transactions significantly bolster the company's
product portfolio to now include nine prescription products and,
upon the closing of the Innovus acquisition, over thirty consumer
health products. The result of this combination with Innovus and
the Cerecor commercial portfolio yields trailing twelve-month
combined pro forma revenue for the period ending September 30 of
approximately $43 million.
Disbrow continued, While boosting our top line run rate, we
also expect these transactions to accelerate the company's
path to profitability. Both Innovus and the Cerecor commercial
business operate at or near breakeven from a cash standpoint, so we
are adding increased revenue scale without a corresponding increase
in cash burn. We feel we are well positioned to reach break-even
more rapidly as a result of the cost saving synergies the two
transactions provide, as well as expected growth in revenue from
product cross selling and increased physician reach due to the
increased scale across combined sales forces. Additionally, as
context, Aytu grew by 100% from fiscal 2018 to 2019, and Innovus
has grown over 300% from 2017 to 2019. Through the combination of
Aytu and Innovus, coupled with the asset purchase from Cerecor, we
expect the consolidated entity to continue on a significant growth
path while realizing operational synergies across the new combined
organization to potentially achieve profitability sooner than the
company would have prior to the consummation of these
1 Pro Forma revenue is a non-GAAP metric
calculated by combining the reported net revenues for: (i) Aytu
BioScience, Inc., (ii) the net revenues associated with the
acquired pediatric pharmaceutical products from Cerecor, which
closed November 1, 2019, and (iii) the net revenues associated with
the pending acquisition of Innovus Pharmaceuticals,
2 Pro Forma net cash is a non-GAAP metric
calculated by combining the (i) cash, cash equivalents and
restricted cash on hand as of September 30, 2019, and (ii) the net
cash proceeds from the October 2019 private placement
Additional Corporate Highlights
re-negotiated the Natesto license
agreement with Acerus Pharmaceuticals, Inc. to accelerate
prescription growth and increase promotion to
of Natesto sales representatives; augments current Aytu sales force
with nationwide specialty sales team focused on urology and
profit, eliminates milestone payments, and removes regulatory fees
and clinical trial expenses.
announced a Tuzistra XR co-promotion
with Poly Pharmaceuticals to accelerate Rx growth and increase
of Tuzistra XR sales representatives,
care physician promotion by over 7,500 prescribers.
announced a co-promotion agreement with Validus Pharmaceuticals for
ZolpiMist and launched
into the $163 million psychiatry market
representatives selling ZolpiMist to psychiatrists.
announced positive clinical results from a Natesto Spermatogenesis
Study, which demonstrated maintenance of semen parameters (sperm
concentration, sperm motility, and total motile sperm count) in
hypogonadal men treated with Natesto for six months.
Natesto added to two
national pharmacy benefit managers' (PBM) formularies:
Natesto now covered on payer plans covering over 36 million U.S.
to a leading national PBM's formulary, increasing patient
insurance coverage rates nationwide.
the Russell Microcap
Conference Call Information
company will host a live conference call at 4:30 p.m. ET today. The
conference call can be accessed by dialing either:
844-602-0380 (toll-free)
862-298-0970 (international)
webcast will be accessible live and archived on Aytu BioScience's
website, within the Investors section under Events &
Presentations, at aytubio.com, for 90 days.
replay of the call will be available for fourteen days. Access the
replay by calling 1-877-481-4010 (toll-free) and using the replay