IGI Laboratories, Inc. Announces Second Quarter 2014 Results

BUENA, N.J., July 24, 2014 /PRNewswire/ -- IGI Laboratories, Inc. (NYSE MKT: IG), a New Jersey based specialty generic drug development and manufacturing company, announced its financial results for the second quarter ended June 30, 2014.

Second Quarter 2014 Highlights

• Total revenues of $6.5 million in the second quarter of 2014, an increase of 70% over the same quarter in 2013
• Total revenues of $13.3 million for the six months ended June 30, 2014, an increase of 78% over the same period in 2013
• Total revenues generated from the sale of IGI label generic topical pharmaceutical products for the three and six months ended June 30, 2014 were $3.4 million, and $6.3 million, respectively, increases of 146% and 127% over the same periods in 2013, respectively
• Gross margin increased to 43% for the six months ended June 30, 2014 from 30% in the same period of 2013
• IGI filed five Abbreviated Drug Applications, or ANDAs, with the U.S. Food and Drug Administration (FDA) in the second quarter of 2014
• IGI filed an additional ANDA, under a joint development agreement with Impax Laboratories, Inc. in June 2014  
• IGI received its tentative approval from the FDA for an ANDA for diclofenac sodium 1.5% topical solution, and executed an agreement to enable the company to launch the product in March 2015 after final FDA approval
• Net loss was $0.3 million in the second quarter of 2014, compared to a net loss of $0.4 million in the same period in 2013
• Net loss was $0.2 million and $0.7 million for the six months ended June 30, 2014 and 2013, respectively
• Net loss for the six months ended June 30, 2014 was impacted by the Company's decision to increase research and development costs to $3.4 million, an increase of 132% over the same period in 2013
• On June 27, 2014, IGI announced the pricing of their underwritten public offering of 4,650,000 shares of its common stock at a price to the public of $5.00 per share.  Subsequently on July 2, 2014, IGI, after giving effect to the exercise of the over-allotment option, sold an aggregate of 5,347,500 shares of common stock in the offering at a public offering price of $5.00 per share.  The net proceeds of the offering were approximately $25.2 million
• On June 30, 2014 IGI was added to the Russell 3000 Index

IGI's President and Chief Executive Officer, Jason Grenfell-Gardner, stated, "The extensive list of accomplishments by the IGI team in the second quarter represents our continued focus on executing our business plan.  We filed six ANDAs in the first few weeks of June, including one under a joint development agreement with Impax Laboratories, Inc.  We received tentative approval of our ANDA for diclofenac sodium 1.5% topical solution in May, and we should be ready to launch the product in March 2015, after final FDA approval.  As of today, we have seventeen ANDAs pending at the FDA, with an addressable market of over $465 million, and four additional ANDAs which we have filed with three of our pharmaceutical partners under joint development agreements.  On the financial front, we increased total revenue 70% over the same quarter last year, and improved margins to end the second quarter of 2014 with a gross margin of 45%, compared to 30% one year ago.  We continue to expect to file at least ten ANDAs in 2014, and we have accelerated our R&D efforts in order to meet our commitments."  Mr. Grenfell-Gardner continued, "We continue to expect revenue to increase between 40% and 45% over 2013.  We are committed to profitability for the year ended December 31, 2014, even though we plan to at least double our spending in research and development in 2014 over 2013."  

The Company will hold a conference call at 4:15 pm ET on Thursday, July 24, 2014 to discuss the 2nd quarter 2014 results.

The Company invites you to listen to the call by dialing 1-877-870-4263. International participants should call 1-412-317-0790. Canadian participants should call 1-855-669-9657.  Participants should ask to be joined into the IGI Laboratories, Inc. call.

This call is being webcast by MultiVu (a PR Newswire Company) and can be accessed in the Investor Relations Section of IGI's website at www.igilabs.com.

To read full press release, please click here.

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