MISSISSAUGA, ON, Aug. 3, 2016 /PRNewswire/ - Cipher
Pharmaceuticals Inc. (NASDAQ:CPHR; TSX:CPH) ("Cipher" or "the
Company") today announced preliminary estimates of its financial
results for the three months ended June 30,
2016. The complete financial statements for the Company's
second quarter will be released on August
10, 2016, followed by a conference call with
management. These preliminary financial results are subject to
completion of the Company's customary quarterly closing and review
procedures. Unless otherwise noted, all figures are in U.S.
currency.
Preliminary Financial Highlights for Q2 2016
The Company expects the following results for its second quarter
ended June 30, 2016:
- Total revenue of approximately $11.7
million, an increase of more than 30% from $8.8 million in Q2 2015.
- Licensing revenue of approximately $7.4
million, compared with $6.3
million in Q2 2015.
- Total product revenue of approximately $4.3 million, compared with $2.5* million in Q2 2015.
- U.S. product revenue of approximately $3.2 million, compared with $1.8* million in Q2 2015.
- Adjusted EBITDA1 is estimated to be approximately
$2.7 million, compared with
$1.6 million in Q2 2015, an increase
of more than 70%.
- Net loss of approximately $3.4
million, or $0.13 per basic
share, which includes a $1.8 million
write-off of debt issuance costs.
- Net cash generated from operating activities of approximately
$3.2 million.
- Approximately $30.8 million in
cash and cash equivalents at quarter end, up from $27.2 million at year end.
"It was a solid second quarter for the Company, highlighted by
more than 30% growth in revenue and a strong improvement in
Adjusted EBITDA," said Shawn Patrick
O'Brien, President and CEO of Cipher. "In addition, we
generated cash from operating activities of approximately
$3.2 million in the second quarter,
and ended the quarter with more than $30
million in cash."
About Cipher Pharmaceuticals Inc.
Cipher
Pharmaceuticals (NASDAQ:CPHR;TSX:CPH) is a rapidly growing
specialty pharmaceutical dermatology company with a diversified
portfolio of commercial-stage products with the goal of becoming
the most customer-centric dermatology company in North
America.
Through multiple transactions, including the acquisition of
Innocutis and its nine branded dermatology products, Cipher has
built its U.S. commercial presence, expanded its Canadian
dermatology franchise and broadened its pipeline. Cipher is
well-capitalized to drive long-term, sustained earnings growth by
leveraging its proven clinical development capabilities and
efficient commercial execution. For more information,
visit www.cipherpharma.com.
Forward-Looking Statements
Statements made in this news release may be forward-looking
and therefore subject to various risks and uncertainties. The words
"may", "will", "could", "should", "would", "suspect", "outlook",
"believe", "plan", "anticipate", "estimate", "expect", "intend",
"forecast", "objective", "hope" and "continue" (or the negative
thereof), and words and expressions of similar import, are intended
to identify forward-looking statements. Certain material factors or
assumptions are applied in making forward-looking statements and
actual results may differ materially from those expressed or
implied in such statements. Factors that could cause results to
vary include those identified in the Company's Annual Information
Form, Form 40-F and other filings with Canadian and U.S. securities
regulatory authorities. These factors include, but are not limited
to, our ability to enter into in-licensing, development,
manufacturing and marketing and distribution agreements with other
pharmaceutical companies and keep such agreements in effect; our
dependency on a limited number of products; integration
difficulties and other risks if we acquire or in-license
technologies or product candidates; reliance on third parties for
the marketing of certain products; the product approval process is
highly unpredictable; the timing of completion of clinical trials;
reliance on third parties to manufacture our products; we may be
subject to product liability claims; unexpected product safety or
efficacy concerns may arise; we generate license revenue from a
limited number of distribution and supply agreements; the
pharmaceutical industry is highly competitive; requirements for
additional capital to fund future operations; dependence on key
managerial personnel and external collaborators; no assurance that
we will receive regulatory approvals in the U.S., Canada or any other jurisdictions; certain of
our products are subject to regulation as controlled substances;
limitations on reimbursement in the healthcare industry; limited
reimbursement for products by government authorities and
third-party payor policies; various laws pertaining to health care
fraud and abuse; reliance on the success of strategic investments
and partnerships; the publication of negative results of clinical
trials; unpredictable development goals and projected time frames;
rising insurance costs; ability to enforce covenants not to
compete; risks associated with the industry in which it operates;
we may be unsuccessful in evaluating material risks involved in
completed and future acquisitions; we may be unable to identify,
acquire or integrate acquisition targets successfully; operations
in the U.S.; inability to meet covenants under our debt
obligations; compliance with privacy and security regulation; our
policies regarding returns, allowances and chargebacks may reduce
revenues; certain regulations could restrict our activities;
additional regulatory burden and controls over financial reporting;
reliance on third parties to perform certain services; general
commercial litigation, class actions, other litigation claims and
regulatory actions; being a foreign private issuer may limit the
information available to U.S. shareholders; we may lose our foreign
private issuer status which could result in significant additional
costs; the potential violation of intellectual property rights of
third parties; our efforts to obtain, protect or enforce our
patents and other intellectual property rights related to our
products; changes in U.S., Canadian or foreign patent laws;
litigation in the pharmaceutical industry concerning the
manufacture and supply of novel and generic versions of existing
drugs; inability to protect our trademarks from infringement;
shareholders may be further diluted; volatility of our share price;
a significant shareholder; we do not currently intend to pay
dividends; our operating results may fluctuate significantly; and
our debt obligations will have priority over the Common Shares in
the event of a liquidation, dissolution or winding up. All
forward-looking statements presented herein should be considered in
conjunction with such filings. Except as required by Canadian or
U.S. securities laws, the Company does not undertake to update any
forward-looking statements; such statements speak only as of the
date made.
* Q2 2015 revenue reflects the revenue from the
acquisition of Innocutis, which was completed on April 13, 2015
1) EBITDA is a non-IFRS financial measure. The term EBITDA
(earnings before interest, taxes, depreciation and amortization)
does not have any standardized meaning under IFRS and therefore may
not be comparable to similar measures presented by other companies.
Cipher defines Adjusted EBITDA as earnings before interest, taxes,
depreciation, amortization, non-cash share-based compensation,
changes in fair value of derivative financial instruments and
foreign exchange gains and losses from the translation of Canadian
cash balances. The Company will provide a summary of how EBITDA and
Adjusted EBITDA are calculated in the full Q2 reporting.
SOURCE Cipher Pharmaceuticals Inc.