ANI Pharmaceuticals, Inc. Reports Second Quarter 2014 Financial Results And Year-To-Date Highlights

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BAUDETTE, Minn., Aug. 4, 2014 /PRNewswire/ -- ANI Pharmaceuticals, Inc. ("ANI") (NASDAQ: ANIP) today reported financial results for the three and six months ended June 30, 2014 and provided revenue and adjusted non-GAAP earnings guidance for the second half of 2014.

Second quarter net revenues were $6.6 million, an increase of 8% as compared to $6.2 million for the same period in 2013. Total revenues, adjusted non-GAAP EBITDA, and net income for the quarter include $3.9 million in charges, which were a direct result of the price increase for ANI's Esterified Estrogen with Methyltestosterone ("EEMT") product. These charges reduced net revenues, adjusted non-GAAP EBITDA, and net income on a dollar-for-dollar basis for the quarter. Second quarter adjusted non-GAAP EBITDA was $0.2 million, a decrease of 81% as compared to $1.2 million in the same period in 2013. ANI's net loss of $2.4 million also reflected a catch-up charge of $1.3 million in non-cash stock-based compensation, which was recognized upon shareholder approval of an increase in shares available for issuance under ANI's stock compensation plan. Total non-cash stock compensation expense for the quarter was $2.0 million, including the $1.3 million catch-up charge. Non-cash stock compensation expense is expected to be approximately $0.7 million per quarter for the remainder of 2014.

ANI's Guidance for the Second Half of 2014

ANI's guidance for the second half of 2014 is based on management's current estimates of the Company's market share for its products, product pricing, cost of sales, and operating costs.

  • Net revenues estimated to be between $28 million and $30 million.
  • Adjusted non-GAAP earnings per share, excluding non-cash stock compensation expense, estimated to be between $0.90 and $1.00 per share, assuming 11,312,582 shares outstanding.
  • Adjusted non-GAAP EBITDA, excluding non-cash stock compensation expense, estimated to be between $14 million and $15 million.
  • An estimated effective tax rate for the second half of 15%.

This guidance includes the benefits from the Lithobid® and Vancocin® products acquired in July and August 2014, respectively. Additional product launches during the second half of 2014 would be incremental to the guidance above.

Year-to-date highlights include:

  • First half net revenues of $17.5 million, an increase of 50% as compared to $11.7 million for the same period in 2013.
  • First half adjusted non-GAAP EBITDA of $4.5 million, an increase of 137% as compared to $1.9 million for the same period in 2013.
  • Acquired Lithobid® NDA from Noven Therapeutics on July 1, 2014.
  • Acquired Vancocin® NDA and related ANDAs from Shire on August 1, 2014.
  • Acquired ANDAs for 31 generic products from Teva Pharmaceuticals.
  • Completed a follow-on public offering of common stock yielding net proceeds of $46.7 million.
  • Filed an ANDA with the FDA for an anti-cancer drug and requested an expedited review.
  • Entered into a collaborative arrangement for a second generic drug product with Sofgen Pharmaceuticals.
  • Entered into a collaborative arrangement for a generic drug product with Dexcel Pharma Technologies Ltd.
  • Entered into two development agreements for generic drugs with Sterling Pharmaceutical Services.

 

Net revenues and
Adjusted Non-GAAP
EBITDA

(in thousands)

Three months ended

June 30,

Six months ended

June 30,



2014

2013

2014

2013


Net revenues

$    6,647

$    6,152

$  17,546

$  11,713


Adjusted Non-GAAP EBITDA(a)

$       226

$    1,204

$    4,470

$    1,886





(a) See Table 2 for US GAAP reconciliation.

 

Arthur S. Przybyl, President and CEO, stated,

"Our second quarter financial results generated net revenues of $6.6 million and adjusted non-GAAP EBITDA of $0.2 million, including $3.9 million in charges related to the April price increase for our EEMT product. We expect to realize the benefits from the price increase in the second half of the year.

We entered into two collaborative arrangements during the second quarter, with Sofgen and Dexcel Pharmaceuticals. We also filed an ANDA with the FDA for our first anti-cancer drug and requested an expedited review, as there are no current generics or blocking patents for the product. We remain committed to launching our first product acquired from Teva in the fourth quarter of 2014.

In July and August, and as part of our mature brand strategy, we acquired Lithobid® and Vancocin® for combined consideration of $23 million. We expect these products to generate approximately $9 million in revenues and $8 million in non-GAAP EBITDA on an annualized basis. We continue to advance our internal generic product development efforts while selectively pursuing acquisitions and partnerships for late stage ANDA products and mature brands."  

Second Quarter Results

For the three months ended June 30, 2014, ANI reported net revenues of $6.6 million, an increase of 8% from $6.2 million in the prior year period.

To read full press release, please click here.

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