Imprimis Pharmaceuticals Announces Fourth Quarter 2017 Results
SAN DIEGO, March 8, 2018 /PRNewswire/ -- Imprimis Pharmaceuticals, Inc. (NASDAQ: IMMY), an ophthalmology-focused pharmaceutical company, today reported financial results for the fourth quarter 2017.
- Revenue of $7.3 million, up 27% year-over-year
- Gross ophthalmology-related revenue of $5.8 million, up 64% year-over-year
- Average 503B order exceeded $1,400 for the quarter
- Gross Margin of 53%, compared to 47% in Q4 2016
- Adjusted EBITDA loss of $794,000, a 67% improvement year-over-year, and 52% improvement quarter-over-quarter
- There are 8 clinical studies and investigations underway or near completion on the MKO Melt®, LessDrops®, OmegaDoxy™, Simple Drops™ and Imprimis's patent-pending cyclosporine formulations
Mark L. Baum, CEO of Imprimis stated, "Record quarterly revenues for the fourth quarter of 2017 meant our 15th consecutive quarter of double digit or better year-over-year growth. We continued to narrow our Adjusted EBITDA loss, this time halving it on a quarter-over-quarter basis to $794,000. We limited cash used in operating activities to under $300,000 for the fourth quarter and we expect to further narrow our Adjusted EBITDA loss as we achieve our goal of profitability in the near future. We also ended the fourth quarter with more cash on hand than we had at the end of the prior quarter."
Baum concluded, "The first quarter is historically strong, and we are seeing that play out currently with new accounts being opened and refill rates from chronic care patients exceeding our expectations. Eton Pharmaceuticals and Surface Pharmaceuticals, two companies we started last year that are seeking FDA-approval for several Imprimis-developed drug formulations, are performing well; and we continue to drive value from Imprimis as a pharmaceutical innovation platform. I continue to believe we are at the beginning of what I expect to be a longer-term growth and value-creation cycle."
Recent Commercialization and Corporate Developments
- Customer network now exceeds 2,000 prescribers
- Strengthened sales force by adding new contract-based and seasoned ophthalmic sales professionals
- FDA-registered outsourcing facility in New Jersey issued a DEA Manufacturer Certificate
- Nationwide dispensing of preservative-free dorzolamide and preservative-free dorzolamide/timolol due to a shortage of dorzolamide, a drug dispensed 4 million times in 2017 to treat glaucoma
- Launched national custom compounded ophthalmic formulation program to meet emergent needs of patients suffering from sight-threatening conditions
- Four new cGMP ophthalmic formulations expected to become available from Imprimis's 503B outsourcing facility during Q1 2018
In addition to the company's results of operations determined in accordance with U.S. generally accepted accounting principles (GAAP), which are presented and discussed above, management also utilizes adjusted EBITDA, an unaudited financial measure that is not calculated in accordance with GAAP, to evaluate the company's financial results and performance and to plan and forecast future periods. Adjusted EBITDA is considered a "non-GAAP" financial measure within the meaning of Regulation G promulgated by the SEC. Management believes that this non-GAAP financial measure reflects an additional way of viewing aspects of the company's operations that, when viewed with GAAP results, provides a more complete understanding of the company's results of operations and the factors and trends affecting its business. Management believes adjusted EBITDA provides meaningful supplemental information regarding the company's performance because (i) it allows for greater transparency with respect to key metrics used by management in its financial and operational decision-making; (ii) it excludes the impact of non-cash or, when specified, non-recurring items that are not directly attributable to the company's core operating performance and that may obscure trends in the company's core operating performance; and (iii) it is used by institutional investors and the analyst community to help analyze the company's results. However, adjusted EBITDA and any other non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. Further, non-GAAP financial measures used by the company and the manner in which they are calculated may differ from the non-GAAP financial measures or the calculations of the same non-GAAP financial measures used by other companies, including the company's competitors.
The company defines adjusted EBITDA as net income (loss) excluding the effects of interest, taxes, depreciation, amortization, stock-based compensation, other income (expense) and, if any and when specified, other non-recurring income or expense items. The company believes that the most directly comparable GAAP financial measure to adjusted EBITDA is net loss. Adjusted EBITDA has limitations and should not be considered as an alternative to gross profit or net loss as a measure of operating performance or to net cash provided by (used in) operating, investing or financing activities as a measure of ability to meet cash needs.
Conference Call and Webcast
The company's management team will host a conference call and audio-only webcast today at 4:30 p.m. EST (1:30 p.m. PST) to discuss the financial results and recent developments. To participate in the call, dial (877) 407-8035 for domestic callers or (201) 689-8035 for international callers. To listen to the webcast, please click here or visit the investor relations section of the Imprimis website at www.ImprimisRx.com. A dial in replay of the call will be available until April 8, 2018. To access the replay, dial (877) 481-4010 domestically or (919) 882-2331 internationally and reference Replay ID: 25720. The webcast replay will be available until June 8, 2018.