Innovus Pharmaceuticals, Inc. (“Innovus Pharma” or the “Company”) (OTCQB: INNV), an emerging commercial-stage pharmaceutical company that delivers safe, innovative and effective over-the-counter medicine and consumer care products to improve men’s and women’s health and respiratory diseases, announced today its reported results for the third quarter 2018.
SAN DIEGO--(BUSINESS WIRE)--Innovus Pharmaceuticals, Inc., (“Innovus Pharma” or the “Company”) (OTCQB: INNV), an emerging commercial-stage pharmaceutical company that delivers safe, innovative and effective over-the-counter medicine and consumer care products to improve men’s and women’s health and respiratory diseases, announced today its reported results for the third quarter 2018.
Notable Highlights from the Third Quarter of 2018 and Recent Developments
- Revenues of approximately $7.4 million, highest gross revenue quarter in Company’s history and up 232% year-over-year;
- Gross margin remains relatively consistent at 79% from prior quarter;
- Quarter subscription net revenue increased 31.7% from prior quarter to $861,000;
- Sales & Marketing expenses declined 4.3% from prior quarter to 71.3%
- Fifth straight quarter of revenue growth;
- FlutiCare® is now the Company’s third highest selling product in terms of units shipped and its number one selling product on its Amazon stores;
- Extended its Beyond Human™ marketing and sales platform to Canada resulting in 25% of total net sales, thus increasing its country diversification away from a reliance on the U.S. market;
- GlucoGorx™ blood glucose monitoring system received coding for Medicare reimbursement;
- Continued growth of cooperative marketing revenue by 27%;
- Expanded its e-commerce business to potentially a $3 million per year business;
- No significant increase in net operating loss;
- Increased product pipeline to 10 additional products;
- Expect approval of 3 new products in Canada for 2018;
- Received approval to expand its Amazon stores to Europe, Mexico and Japan; and
- Currently have seven products that are now sold in certain retail stores in the US and Canada (Zestra®, Zestra Glide®, Androferti®, UriVarx®, Apeaz®, ProtaGorx®, and Uxor®)
Notable Highlights from the Nine Months of 2018
- Revenues of $19.2 million, up 199% year-over-year and in line with its annual gross revenue estimate of $24 million;
- Six products are currently included in the Company’s core product group of gross revenue greater than $1 million per year; and
- Number of units shipped of all of our products increase from 94,140 in the nine months ended 2017 versus 478,615 units in the nine months ended 2018..
“We are very pleased to announce that our third quarter gross revenues of approximately $7.4 million have been the highest in the Company’s history,” stated Bassam Damaj, President and Chief Executive Officer of Innovus Pharma. “We are happy to see that the proportion of our gross revenues from Canada have increased to 25% thereby broadening the reach of our Beyond Human® marketing and sales platform.”
“While we have seen record quarterly revenues and a broadening of our sales efforts, we were also able to decrease our marketing and sales expense and we are diligently working towards exiting the fourth quarter of 2018 profitable,” continued Dr. Damaj.
The Company will host a conference call at 4:15 p.m. ET/1:15 p.m. PT today to discuss the financial results and recent business developments. To participate in the call, please dial 1-877-883-0383 for domestic callers or 1-412-902-6506 for international callers or 1-877-885-0477 for Canadian callers. Participant Elite Entry Number: 1300437. A replay of the call will be available for 30 days. To access the replay, dial 1-877-344-7529 domestically or 1-412-317-0088 internationally or 1-855-669-9658 for Canada and reference Replay Access Code: 10126177. The replay will be available shortly after the end of the conference call.
| Consolidated Statements of Operations | ||||||||
| Three months ended | ||||||||
| September 30, | ||||||||
| 2018 | 2017 | |||||||
| (unaudited) | ||||||||
| Net revenue: | ||||||||
| Product sales, net | $ | 6,956,861 | $ | 2,218,343 | ||||
| License revenue | 582 | 2,500 | ||||||
| Service revenue | 189,462 | - | ||||||
| Cooperative marketing revenue | 233,074 | - | ||||||
| Total net revenue | 7,379,979 | 2,220,843 | ||||||
| Operating expense: | ||||||||
| Cost of product sales | 1,536,792 | 480,076 | ||||||
| Research and development | 59,201 | 8,736 | ||||||
| Sales and marketing | 5,263,533 | 1,626,630 | ||||||
| General and administrative | 2,023,030 | 1,321,001 | ||||||
| Total operating expense | 8,882,556 | 3,436,443 | ||||||
| Loss from operations | (1,502,577 | ) | (1,215,600 | ) | ||||
| Other income and (expense): | ||||||||
| Interest expense | (381,663 | ) | (104,276 | ) | ||||
| Loss on extinguishment of debt | (745,439 | ) | (89,341 | ) | ||||
| Other income (expense), net | 290 | (4,800 | ) | |||||
| Fair value adjustment for contingent consideration | 179,451 | 69,305 | ||||||
| Change in fair value of derivative liabilities | - | 16,055 | ||||||
| Total other expense, net | (947,361 | ) | (113,057 | ) | ||||
| Net loss | (2,449,938 | ) | (1,328,657 | ) | ||||
| Net loss per share of common stock – basic and diluted: |
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
|
| Weighted average number of shares of common stock outstanding – basic and diluted |
214,527,261 |
161,587,934 |
||||||
| Consolidated Statements of Operations | |||||||||||
| Nine months ended | |||||||||||
| September 30, | |||||||||||
| 2018 | 2017 | ||||||||||
| (unaudited) | |||||||||||
| Net revenue: | |||||||||||
| Product sales, net | $18,469,199 | $6,426,790 | |||||||||
| License revenue | 5,737 | 10,000 | |||||||||
| Service revenue | 345,110 | - | |||||||||
| Cooperative marketing revenue | 416,710 | - | |||||||||
| Total net revenue | 19,236,756 | 6,436,790 | |||||||||
| Operating expense: | |||||||||||
| Cost of product sales | 3,739,837 | 1,329,131 | |||||||||
| Research and development | 93,093 | 26,982 | |||||||||
| Sales and marketing | 14,094,203 | 4,869,717 | |||||||||
| General and administrative | 5,638,352 | 4,207,899 | |||||||||
| Total operating expense | 23,565,485 | 10,433,729 | |||||||||
| Loss from operations | (4,328,729 | ) | (3,996,939 | ) | |||||||
| Other income and (expense): | |||||||||||
| Interest expense | (949,533 | ) | (771,885 | ) | |||||||
| Loss on extinguishment of debt | (1,039,711 | ) | (394,169 | ) | |||||||
| Other income (expense), net | 665 | (5,622 | ) | ||||||||
| Fair value adjustment for contingent consideration | 198,250 | 195,459 | |||||||||
| Change in fair value of derivative liabilities | - | (32,138 | ) | ||||||||
| Total other expense, net | (1,790,329 | ) | (1,008,355 | ) | |||||||
| Provision for income taxes | - | 3,200 | |||||||||
| Net loss | (6,119,058 | ) | (5,008,494 | ) | |||||||
| Net loss per share of common stock – basic and diluted: |
$(0.03 |
) |
|
$(0.03 |
) |
||||||
| Weighted average number of shares of common stock outstanding – basic and diluted |
202,290,341 |
152,325,196 |
|||||||||
|
Condensed Consolidated Balance Sheet Data |
|||||||||||
|
September 30, |
|||||||||||
|
1 |
|
||||||||||
| Assets | |||||||||||
| Cash | $703,012 | ||||||||||
| Accounts receivable, net | 356,347 | ||||||||||
| Prepaid expenses and other current assets | 1,265,474 | ||||||||||
| Inventories | 2,198,045 | ||||||||||
| Intangible assets and other non-current assets | 4,980,556 | ||||||||||
| Total assets | $9,503,434 | ||||||||||
| Liabilities & Stockholders' Equity | |||||||||||
| Accounts payable & accrued liabilities | $2,530,687 | ||||||||||
| Total accrued compensation | 2,254,622 | ||||||||||
| Deferred revenue and customer deposits | 95,372 | ||||||||||
| Accrued interest payable | 24,232 | ||||||||||
| Short-term loans payable | 138,048 | - | |||||||||
| Notes payable, net of discount | 2,340,849 | ||||||||||
| Total contingent consideration | 1,261,455 | ||||||||||
| Total stockholders' equity | 858,169 | ||||||||||
| Total liabilities & stockholders' equity | $9,503,434 | ||||||||||
1 The Condensed Consolidated Balance Sheet Data has been derived from the audited consolidated financial statements as of that date.
About Innovus Pharmaceuticals, Inc.
Headquartered in San Diego, Innovus Pharma is an emerging OTC consumer goods and specialty pharmaceutical company engaged in the commercialization, licensing and development of safe and effective non-prescription medicine and consumer care products to improve men’s and women’s health and vitality and respiratory diseases. Innovus Pharma delivers innovative and uniquely presented and packaged health solutions through its (a) OTC medicines and consumer and health products, which we market directly, (b) commercial partners to primary care physicians, urologists, gynecologists and therapists, and (c) directly to consumers through our on-line channels, retailers and wholesalers. The Company is dedicated to being a leader in developing and marketing new OTC and branded Abbreviated New Drug Application (“ANDA”) products. The Company is actively pursuing opportunities where existing prescription drugs have recently, or are expected to, change from prescription (or Rx) to OTC.
For more information, go to www.innovuspharma.com; www.zestra.com; www.ejectdelay.com; www.myvesele.com; www.urivarx.com; www.sensumplus.com; www.myandroferti.com; www.beyondhumantestosterone.com; www.getbeyondhuman.com; www.trybeyondhuman.com; www.recalmax.com; www.prostagorx.com; www.fluticare.com; www.allervarx.com; and www.apeaz.com.
* Population data for Florida and Texas gathered from the 2010 Census Brief from the United States Census Bureau.
Innovus Pharma’s Forward-Looking Safe Harbor
Statements under the Private Securities Litigation Reform Act, as amended: with the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risks and uncertainties that may individually or mutually impact the matters herein described for a variety of reasons that are outside the control of the Company, including, but not limited to, its financial results, projected revenues, projected online subscribers and other customers, estimated markets for its products, and statements about achieving its other corporate and business development, growth, commercialization, financial and staffing objectives. Readers are cautioned not to place undue reliance on these forward-looking statements as actual results could differ materially from the forward-looking statements contained herein. Readers are urged to read the risk factors set forth in the Company's most recent filing on Form S-1, annual report on Form 10-K, subsequent quarterly reports filed on Form 10-Q and other filings made with the SEC. Copies of these reports are available from the SEC's website or without charge from the Company.
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Source: Innovus Pharmaceuticals, Inc.
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