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Neos Therapeutics Reports Second Quarter 2018 Financial Results

20:00 EDT 7 Aug 2018 | Globe Newswire

DALLAS and FORT WORTH, Texas, Aug. 08, 2018 (GLOBE NEWSWIRE) -- Neos Therapeutics, Inc. (Nasdaq: NEOS), a fully integrated pharmaceutical company focused on developing, manufacturing and commercializing innovative extended-release (XR) products using its proprietary modified-release drug delivery technologies, today reported financial results for the second quarter ended June 30, 2018 and provided a business update.

“Second quarter revenues for our ADHD products were $10.8 million which represents a 22.5% growth over first quarter revenues. With over 7,500 prescribers of Adzenys XR-ODT and over 4,700 prescribers of Cotempla XR-ODT in the second quarter alone, we believe we are in a strong position to drive prescription growth as many school-aged ADHD patients visit their health care provider for back to school physicals,” said Jerry McLaughlin, Chief Executive Officer of Neos Therapeutics. “Our ADHD products provide a solid and growing base of business and our primary goals are to continue to increase market share for these products, achieve profitability and strategically expand our pipeline and commercial product portfolio. With continued careful management of our cash flow, we are happy to report a cash position of approximately $29.1 million at the end of July versus a cash position of $28.0 million at the end of June.”

Commercial Product Highlights

Neos’ three commercial attention deficit hyperactivity disorder (ADHD) products are Adzenys XR-ODT®, Cotempla XR-ODT® and Adzenys ER which launched in May 2016, September 2017 and February 2018, respectively. Continued growth in prescription trends for Adzenys XR-ODT and Cotempla XR-ODT builds momentum for the upcoming back to school season.

 Cumulative TRx (2Q18)Cumulative TRx (2Q17)Year-over-year increasePatients switching from another medication
(as of 7/13/18)
Adzenys XR-ODT®59,89139,96850%69%
Cotempla XR-ODT®35,910N/AN/A76%

                  * As reported by IQVIA

Additional Commercial Product Highlights

  • Rapid Growth Continues During First Year of Launch for Cotempla XR-ODT: Monthly prescriptions for Cotempla XR-ODT, as reported by IQVIA, have grown 40% per month since its launch in September 2017.  
  • The Number of Prescribers of Neos ADHD Products Continues to Grow: As of June 30, 2018, as reported by IQVIA, 13,615 health care providers had written prescriptions for Adzenys XR-ODT since its launch, and 6,102 health care providers had written prescriptions for Cotempla XR-ODT since its launch.

Select Financial Results for the Second Quarter Ended June 30, 2018

  • Total product revenues were $11.4 million for the three months ended June 30, 2018, compared to $5.2 million for the same period in 2017. For the three months ended June 30, 2018, total product revenues were $10.8 million for the Company’s ADHD products and $0.6 million for generic Tussionex.
 Q2 2018Q2 2017% Change
Adzenys XR-ODT$6.5MM$4.4MM47.7%
Cotempla XR-ODT$4.3MMN/AN/A
Generic Tussionex$0.6MM$0.8MM(25.0)%
Total$11.4MM$5.2MM119.2%
Adzenys ER revenue was negligible in Q2 2018
  • The Company reported a gross profit of $4.4 million for the three months ended June 30, 2018, compared to a gross profit of $2.4 million for the same period in 2017.
  • Research and development expenses for the three months ended June 30, 2018, were $2.4 million compared to $3.7 million for the same period in 2017.
  • Selling and marketing expenses were $11.6 million for the three months ended June 30, 2018, compared to $11.7 million for the same period in 2017.
  • General and administrative expenses for the three months ended June 30, 2018, were $3.7 million compared to $3.3 million for the same period in 2017.
  • The Company reported a net loss of $15.2 million, or $0.52 per share, for the three months ended June 30, 2018, compared to a net loss of $18.6 million, or $0.82 per share, for the same period in 2017.
  • At June 30, 2018, the Company held $28.0 million in cash and cash equivalents and short-term investments.

Conference Call Details
Neos management will host a conference call and live audio webcast to discuss results and provide a company update at 8:30 a.m. ET today. The live call may be accessed by dialing (877) 388-8985 for domestic calls, or +1 (562) 912-2654 for international callers, and referencing conference ID number 5853008. A live audio webcast for the conference call will be available on the Investor Relations page of the Company’s website at http://investors.neostx.com/.

About Neos Therapeutics
Neos Therapeutics, Inc. (NASDAQ: NEOS) is a pharmaceutical company focused on developing, manufacturing and commercializing products utilizing its proprietary modified-release drug delivery technology platforms. Adzenys XR-ODT® (amphetamine) extended-release orally disintegrating tablets (see Full Prescribing Information, including Boxed WARNING), Cotempla XR-ODT™ (methylphenidate) extended-release orally disintegrating tablets (see Full Prescribing Information, including Boxed WARNING), and Adzenys-ER™ (amphetamine) extended-release oral suspension (see Full Prescribing Information, including Boxed WARNING), all for the treatment of ADHD, are the first three approved products using the Company’s extended-release  technology platform. In addition, Neos manufactures and markets its generic version of the branded product Tussionex®1, an extended-release oral suspension of hydrocodone and chlorpheniramine for the relief of cough and upper respiratory symptoms of a cold (see Full Prescribing Information, including Boxed WARNING). Additional information about Neos is available at www.neostx.com.

1Tussionex® is a registered trademark of the UCB Group of Companies.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements concerning the commercialization of Adzenys XR-ODT, Cotempla XR-ODT™ and Adzenys ER, the prescription growth for our products, our marketing plans, the therapeutic potential of our products, the strategic expansion of our product pipeline and commercial product portfolio and the research and development plan for our potential product candidates. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. These forward-looking statements reflect our current views about our expectations, strategy, plans, prospects or intentions, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation, our ability to market and sell our products, the inherent uncertainty of drug research and development, and other risks set forth under the caption “Risk Factors” in our most recently filed Annual Report on Form 10-K as updated by our subsequently filed other SEC filings, including our Quarterly Report(s) on Form 10-Q. We assume no obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.


Neos Therapeutics, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(unaudited)

  June 30,  

December 31,
 
  2018
 2017
 
    (as adjusted) 
ASSETS     
Current Assets:     
Cash and cash equivalents $18,318  $31,969 
Short-term investments 9,722  18,448 
Accounts receivable, net of allowances for chargebacks and cash discounts of $788 and $1,154, respectively 17,977  13,671 
Inventories 12,713  11,732 
Other current assets 1,336  3,575 
Total current assets 60,066  79,395 
      
Property and equipment, net 8,269  8,203 
Intangible assets, net 15,507  16,348 
Other assets 150  162 
      
Total assets $83,992  $104,108 
      
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)     
      
Current Liabilities:     
Accounts payable $6,060  $11,460 
Accrued expenses 34,128  20,944 
Current portion of long-term debt 15,983  896 
      
Total current liabilities 56,171  33,300 
      
Long-Term Liabilities:     
Long-term debt, net of current portion 43,932  58,938 
Derivative liability 1,311  1,660 
Deferred rent 1,036  1,083 
Other long-term liabilities 178  180 
      
Total long-term liabilities 46,457  61,861 
      
Stockholders’ Equity (Deficit):     
Preferred stock, $0.001 par value, 5,000,000 shares authorized, no shares issued or outstanding at June 30, 2018 and December 31, 2017    
Common stock, $0.001 par value, 100,000,000 authorized at June 30, 2018 and December 31, 2017; 29,048,589 and 29,014,788 issued and outstanding at June 30, 2018, respectively; 29,030,757 and 28,996,956 issued and outstanding at December 31, 2017, respectively 29  29 
Treasury stock, at cost, 33,801 shares at June 30, 2018 and December 31, 2017 (352) (352)
Additional paid-in capital 276,637  274,584 
Accumulated deficit (294,951) (265,308)
Accumulated other comprehensive loss 1  (6)
      
Total stockholders’ equity (deficit) (18,636) 8,947 
      
Total liabilities and stockholders’ equity $83,992  $104,108 
         


Neos Therapeutics, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(unaudited)

  Three Months Ended
June 30,
 Six Months Ended
 June 30,
 
  2018 2017
(as adjusted)
 2018 2017
(as adjusted)
 
Revenues:         
Net product sales $11,363 $5,179 $22,092 $10,810 
          
Cost of goods sold 6,987 2,817 12,208 7,567 
Gross profit 4,376 2,362 9,884 3,243 
          
Research and development 2,381 3,692 4,072 5,416 
Selling and marketing expenses 11,557 11,706 24,547 22,412 
General and administrative expenses 3,705 3,316 7,051 6,854 
          
Loss from operations (13,267)(16,352)(25,786)(31,439)
          
Interest expense (2,232)(2,390)(4,452)(4,602)
Other income, net 292 97 595 175 
          
Net loss $(15,207)$(18,645)$(29,643)$(35,866)
          
Weighted average common shares outstanding used to compute net loss per share, basic and diluted 29,008,909 22,613,382 29,002,966 21,127,303 
          
Net loss per share of common stock, basic and diluted $(0.52)$(0.82)$(1.02)$(1.70)


Contacts:         

Richard Eisenstadt
Chief Financial Officer
Neos Therapeutics
(972) 408-1389
reisenstadt@neostx.com

Sarah McCabe
Stern Investor Relations, Inc.
(212) 362-1200
sarah@sternir.com

 

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