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Aralez Pharmaceuticals Inc. (ARLZ)

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Aralez Pharmaceuticals Inc. operates as a specialty pharmaceutical company in Canada, Ireland, and the United States. It engages in acquiring, developing, and commercializing products primarily in cardiovascular disease, pain, and other specialty areas. It offers Fibricor, a fenofibric acid for the treatment of severe hypertriglyceridemia; Cambia, a non-steroidal anti-inflammatory drug (NSAID) for the acute treatment of migraine attacks; Fiorinal and Fiorinal C for the relief of tension type headaches; Soriatane, a retinoid, an aromatic analog of vitamin A for the treatment of severe psoriasis and other disorders of keratinization; and Bezalip SR, a pan-peroxisome proliferator-activated receptor activator to treat hyperlipidemia, as well as to increase insulin sensitivity and decrease blood glucose levels for the patients with metabolic syndrome. It also markets NeoVisc, a sodium hylauronic solution; Uracyst, a sodium chondroitin sulfate; Durela, a tramadol hydrochloride; Proferrin, a heme iron polypeptide; Resultz, a isopropyl myristate; Collatamp G, a collagen-gentamycin; and a portfolio of eight products targeted for the areas of gastroenterology and women?s health. In addition, it develops YOSPRALA 81/40 and 325/40 for secondary prevention of cardiovascular and cerebrovascular disease in patients at risk for gastric ulcers, which have completed Phase III clinical development in the United States; and Bilastine, an antihistamine drug for the treatment of allergic rhinoconjunctivitis and urticaria. Further, its out-licensed products include VIMOVO for the relief of the signs and symptoms of osteoarthritis, rheumatoid arthritis, and ankylosing spondylitis, as well as to decrease the risk of developing gastric ulcers in patients at risk of developing NSAID-associated gastric ulcers; and Treximet, a migraine medicine. The company is headquartered in Milton, Canada.

Corporate Governance

Aralez Pharmaceuticals Inc.’s ISS Governance QualityScore as of March 2, 2017 is 6. The pillar scores are Audit: 1; Board: 6; Shareholder Rights: 4; Compensation: 9.

Corporate governance scores courtesy of Institutional Shareholder Services (ISS). Scores indicate decile rank relative to index or region. A decile score of 1 indicates lower governance risk, while a 10 indicates higher governance risk.

Aralez Pharmaceuticals Inc.

151 Steeles Avenue East
Milton, ON L9T 1Y1

Full Time Employees:

Key Executives

Name Title Pay Exercised Age
Mr. Adrian Adams Chief Exec. Officer and Director 1.02M N/A 66
Mr. Andrew I. Koven Pres and Chief Bus. Officer 683.18k N/A 59
Mr. Scott J. Charles Chief Financial Officer 653.07k N/A 42
Mr. Mark A. Glickman Chief Commercial Officer 504.94k N/A 51
Mr. John E. Barnhardt CPA Principal Accounting Officer and VP of Fin. & Admin. N/A N/A 67
Amounts are as of December 31, 2015 and compensation values are for the last fiscal year ending on that date. Pay is salary, bonuses, etc. Exercised is the value of options exercised during the fiscal year. Currency in USD.

Aralez Reports First Quarter 2017 Financial Results



Aralez Pharmaceuticals Inc. 

09 May, 2017, 07:00 ET



-First Quarter 2017 Net Revenues of $26.0 Million-

-Cost Savings Plan Expected to Reduce 2017 Expenses by $23.0 Million; Improved 2017 Adjusted EBITDA Guidance-


-Currently Implementing a Bold Program Aimed at Allowing All Patients to Access Yosprala for Only $10.00 Per Month-

MISSISSAUGA, Ontario, May 9, 2017 /PRNewswire/ -- Aralez Pharmaceuticals Inc. (NASDAQ: ARLZ) (TSX: ARZ) (Aralez or the Company) today announced financial results for the first quarter ended March 31, 2017. The Company also highlighted certain recent corporate and commercial achievements. All figures are in U.S. dollars.

"We are pleased to report a solid first quarter of 2017, together with important updates to our business addressing a number of the challenges we face," said Adrian Adams, Chief Executive Officer of Aralez. "We are making a bold and significant change to our pricing strategy for Yosprala® aimed at allowing all patients to access the product for only $10.00 per month. In addition, we continue to implement our cost savings plan to further improve our cost structure and balance sheet to maximize and preserve our financial flexibility. Our updated financial guidance for 2017 reflects our commitment to reaching break-even on an Adjusted EBITDA basis this year. We also continue to opportunistically look at business development opportunities with a strong focus on value creating and transformative M&A with the goal of enhancing shareholder value."

Company Highlights:

  • The Company is currently implementing a bold, patient friendly program aimed at allowing all patients to access Yosprala for only $10.00 per month, regardless of coverage or copay level set by the insurer. This program will be available for all patients through retail pharmacies or through select national mail order partners.
    The Company has begun implementing cost savings initiatives that are expected to reduce our 2017 operating expenses by approximately $23.0 million, of which approximately $9.0 million was included in our original 2017 Adjusted EBITDA guidance. In addition, the Company has also identified other initiatives to drive an increase in profitability, such as an increased focus on the Canadian core growth brands and the Board of Directors recent decision to reduce the cash portion of their fees for 2017 by half.
    On May 8, 2017, Aralez subsidiary Pozen Inc. (Pozen) entered into a license agreement with a multi-national pharmaceutical company pursuant to which Pozen granted a non-exclusive license to such company under a Japanese patent owned by Pozen. The non-exclusive license is limited to Japan. In consideration for this non-exclusive license, Pozen will receive an upfront payment of $4.0 million, plus contingent milestone payments and royalties under certain circumstances.
    On April 24, 2017, the Company commenced its phased launch of Zontivity® utilizing 15 sales representatives deployed to high volume physicians who treat post-myocardial infarction (MI) and Peripheral Artery Disease (PAD) patients. The Phase 2, full-scale launch is expected to begin in early June 2017 with 75 sales representatives targeting approximately 12,000 physicians made up of cardiologists, primary care and vascular surgeons.
    On April 6, 2017, Aralez Pharmaceuticals US Inc. (APUS) and the United States Government (the Government) entered into a Modification of Contract for Toprol-XL® pursuant to which the Government exercised its first renewal option under the VA National Contract between APUS and the Government (the VA Contract), extending the term of the VA Contract by one year to April 28, 2018 with reduced pricing for the duration thereof. 

"Deerfield Partners remains fully supportive of Aralez and its management team as the company navigates its way through recent challenges," said James Flynn, Managing Partner at Deerfield. "We are encouraged by the new pricing strategy for Yosprala and the prospects for Zontivity."

Cost Savings Initiatives 
The Company previously announced in April 2017 that it had begun implementing cost savings initiatives as part of the Company's ongoing objective to maximize value from its assets and preserve financial flexibility. The total expected operating expense reduction in 2017 of approximately $23.0 million includes the previously announced 32% reduction in its U.S. sales force, which is expected to yield 2017 savings of approximately $5.5 million ($7.5 million on an annual basis), a decrease of approximately $9.0 million in 2017 commercial spend, which primarily relates to non-direct marketing spend on Yosprala, and decreased 2017 departmental expenses across the business of approximately $8.5 million. While Aralez has made significant reductions to its expenses, the Company plans to invest an additional $7.0 million to support a successful phased launch of Zontivity that commenced on April 24, 2017, which the Company views as an increasingly attractive opportunity. The Company also continues to assess various business development opportunities with the goal of providing improved cash flow and an enhanced platform for creating value.

First Quarter 2017 Financial Results 
Aralez's financial results for the three months ended March 31, 2016 include the operations of Tribute Pharmaceuticals Canada Inc. (Tribute) from February 5, 2016, the closing date of the Pozen and Tribute merger transaction (the Merger), through March 31, 2016, but do not include the results of Zontivity or Toprol-XL and its currently marketed authorized generic (the Toprol-XL franchise) as these acquisitions were completed on September 6, 2016 and October 31, 2016, respectively. Aralez's financial results for the three months ended March 31, 2017 include the results of Tribute, Zontivity and the Toprol-XL franchise.

Total revenues for the three months ended March 31, 2017 were $26.0 million compared to $8.1 million for the three months ended March 31, 2016. Net product revenues of $6.7 million for the three months ended March 31, 2017 primarily related to the product portfolio acquired with the acquisition of Tribute as well as net product revenues from Yosprala and Fibricor®. Other revenues of $19.3 million for the three months ended March 31, 2017 were comprised of net revenues of $15.6 million from the acquisitions of the Toprol-XL franchise and Zontivity, which are recorded net of related cost of product revenues and fees paid during the respective transition service periods, and Vimovo® royalties of $3.7 million. Pursuant to the Company's agreement with Horizon in the U.S., subject to certain conditions described in our public filings, Aralez is guaranteed a quarterly minimum royalty amount (calculated based on a minimum annual royalty of $7.5 million), which was reflected in the Company's first quarter results. Net product revenues of $3.6 million for the three months ended March 31, 2016 related to the Tribute product portfolio acquired in the Merger, which was completed on February 5, 2016. Other revenues of $4.5 million for the three months ended March 31, 2016 were comprised solely of Vimovo royalties.

Cost of product revenues were $2.8 million for the three months ended March 31, 2017 compared to $2.5 million for the three months ended March 31, 2016. The increase related primarily to costs of product revenues for the full quarter in 2017 from the Company's product portfolio that was acquired as part of the Merger in February 2016.

SG&A expenses were $30.8 million for the three months ended March 31, 2017 compared to $37.5 million for the three months ended March 31, 2016. The decrease in SG&A expenses was primarily driven by costs related to the Merger in the prior year of approximately $19.4 million, partially offset by increased costs related to the build out of our U.S. sales force in 2016 and increased promotional expenses in the U.S. during the first quarter of 2017.

R&D expenses for the three months ended March 31, 2017 were $0.1 million compared to $4.4 million for the three months ended March 31, 2016. The decrease related primarily to higher costs incurred in the first quarter of 2016 for Yosprala in advance of its U.S. approval in September 2016.

Amortization of intangible assets of $8.5 million for the three months ended March 31, 2017 related to the acquisitions of Tribute, Zontivity and the Toprol-XL franchise. Amortization of intangible assets for the three months ended March 31, 2016 of $1.3 million related solely to the acquisition of Tribute.

The change in fair value of contingent consideration of $4.4 million for the three months ended March 31, 2017 related to accretion for the Toprol-XL franchise and Zontivity acquisitions. There was no expense related to fair value changes in contingent consideration for the three months ended March 31, 2016.

Interest expense of $6.7 million for the three months ended March 31, 2017 was primarily attributable to the borrowing of $200 million under the Company's credit facility in the fourth quarter of 2016 in connection with the acquisitions of Zontivity and the Toprol-XL franchise and $75 million convertible notes. Interest expense of $0.3 million for the three months ended March 31, 2016 related to the $75 million convertible notes.

Other income, net for the three months ended March 31, 2017, was $0.4 million compared to $4.8 million for the three months ended March 31, 2016, a decrease of $4.4 million. The decrease principally related to a $4.6 million decrease in the fair value of the warrants liability acquired from Tribute during the prior year, offset by a $0.3 million gain from the sale of a building in London, Ontario during the three months ended March 31, 2017.

The net loss for the three months ended March 31, 2017 was $27.5 million, or $0.42 loss per share on a fully diluted basis, compared to a net loss for the three months ended March 31, 2016 of $33.8 million, or $0.73 loss per share on a fully diluted basis.

Adjusted EBITDA was ($3.6) million for the three months ended March 31, 2017 compared to Adjusted EBITDA of ($11.1) million for the three months ended March 31, 2016.

Balance Sheet 
As of March 31, 2017, approximately 65.8 million of the Company's common shares were issued and outstanding and the Company had cash and cash equivalents of approximately $73.7 million.

Updated 2017 Guidance 
Aralez's estimates are based on projected results of the Company for the year ending December 31, 2017 and reflect management's current beliefs and expectations about, among other things, prescription trends, competition, pricing levels, inventory levels, and anticipated future events. The Company's guidance on Adjusted EBITDA includes, among other things, costs to support the commercialization efforts with respect to Yosprala, Zontivity and the Canadian product portfolio as well as costs to support the global corporate structure. It excludes share-based compensation expense and certain discrete costs, including merger and product acquisition-related expenses. See "Use of Non-GAAP Financial Measures" below.   

For the year ending December 31, 2017, assuming, among other factors more particularly set out in "Cautionary Note Regarding Forward-Looking Statements" below, the Company currently expects:

  • 2017 Net Revenues to be in a range of $80 million to $100 million; and
    Updated 2017 Adjusted EBITDA to be in a range of $(5) million to $5 million.

See the table below for a comparison of the Company's original 2017 guidance compared to the updated 2017 guidance:



2017 Original Guidance

2017 Updated Guidance

Net Revenues

$80 million to $100 million

$80 million to $100 million

Adjusted EBITDA

$(25) million to $(10) million

$(5) million to $5 million

First Quarter Results Webcast 
Aralez will host a webcast this morning, May 9, 2017 at 9:00 a.m. ET to present results for the first quarter 2017. The webcast can be accessed live and will be available for replay at

Conference Call Details 
Date: Tuesday, May 9, 2017 
Time: 9:00 a.m. ET 
Dial-in (U.S.): 877-407-8037  
Dial-in (International): 201-689-8037

About Aralez Pharmaceuticals Inc. 
Aralez Pharmaceuticals Inc. (NASDAQ: ARLZ) (TSX: ARZ) is a global specialty pharmaceutical company focused on delivering meaningful products to improve patients' lives while creating shareholder value by acquiring, developing and commercializing products primarily in cardiovascular, pain and other specialty areas. Aralez's Global Headquarters is in Ontario, Canada, the U.S. Headquarters is in Princeton, New Jersey and the Irish Headquarters is in Dublin, Ireland. More information about Aralez can be found at


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ARLZ News: Current Report Filing (8-k) 06/06/2018 05:02:09 PM
ARLZ News: Statement of Changes in Beneficial Ownership (4) 06/06/2018 05:02:09 PM
ARLZ News: Additional Proxy Soliciting Materials (definitive) (defa14a) 05/18/2018 07:07:04 AM
ARLZ News: Proxy Statement (definitive) (def 14a) 05/18/2018 07:05:34 AM
ARLZ News: Statement of Changes in Beneficial Ownership (4) 05/16/2018 07:51:28 PM
PlusOneCoin Top Posts
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#311   well that sucked. and yes Clay is here. Crumbster 06/14/18 09:37:04 PM
#310   Just looking for a scalp here Crumbster 06/14/18 09:35:03 PM
#309   Yep, I averaged down in the .30's, but Drugdoctor 06/13/18 09:41:04 PM
#308   * * $ARLZ Video Chart 06-13-18 * * ClayTrader 06/13/18 05:05:14 PM
#307   Clay is in this one. I'm out:) juancarlos 06/13/18 12:42:57 PM
#306 mudcat61820 06/13/18 11:17:03 AM
#305   Nice move today! Chunky Salsa 06/13/18 11:09:00 AM
#304   nice bounce starting here, maybe Crumbster 06/13/18 10:42:39 AM
#303   Morning, Anyone,,, when is annual meeting, TY Country Squire 06/13/18 09:41:27 AM
#302   Can we get in the .50s of course Chunky Salsa 06/12/18 02:23:36 PM
#301   I probably need to update the info in Drugdoctor 06/10/18 03:15:21 PM
#300   I'm with you also, but the CEO is Country Squire 05/31/18 06:42:17 AM
#299   I still think the company is far from Drugdoctor 05/30/18 06:36:13 PM
#298   This was Kyle Dennis pick for long term Country Squire 05/30/18 03:10:24 PM
#297   OOPS sorry I was talking about AGRX Chunky Salsa 05/28/18 01:01:49 PM
#296   I thought .59 would hold this week but Chunky Salsa 05/28/18 01:00:15 PM
#295   I just can't believe it's this low.... Drugdoctor 05/27/18 04:12:13 PM
#294   IF not, stay away until december30, tax selling Country Squire 05/24/18 11:49:27 AM
#293   * * $ARLZ Video Chart 05-11-18 * * ClayTrader 05/11/18 05:10:38 PM
#292   Getting in this week if .38 holds. Chunky Salsa 05/10/18 02:39:56 PM
#291   * * $ARLZ Video Chart 05-09-18 * * ClayTrader 05/09/18 04:57:21 PM
#290   * * $ARLZ Video Chart 05-08-18 * * ClayTrader 05/08/18 04:36:34 PM
#289   No, they still are well funded, but institutions Drugdoctor 05/08/18 11:01:11 AM
#287   Sounds like chap 11 likely. willlbone 05/08/18 09:49:08 AM
#286   1st quarter earnings out May 8th.... we should Drugdoctor 04/30/18 04:25:57 AM
#285   The only contract that I am aware of lennie 04/13/18 05:47:08 PM
#284   sorry it took me so long to get Country Squire 04/12/18 07:18:14 PM
#283   Some BIG contracts for the Metoprolol XL (Toprol)... Drugdoctor 04/12/18 06:32:03 PM
#282   Whats going on here, did all of Kyle Country Squire 04/12/18 12:49:42 PM
#281   I dunno... at least wait for 1st quarter Drugdoctor 04/11/18 05:52:39 PM
#280   The CEO is suppose to be a Turn Country Squire 04/11/18 06:14:28 AM
#279   The stock is rebounding after the earnings disappointment Drugdoctor 03/18/18 12:57:49 AM
#278   Power hour will be amazing if we break Jols 03/13/18 02:49:40 PM
#277   I think the sell off is a knee lennie 03/13/18 11:36:22 AM
#276   Earnings out and no posts? Anyone interested jrf30 03/13/18 09:19:34 AM
#275   Question doc. jrf30 03/09/18 01:51:30 AM
#274   NEWS - Earnings out March 13th... The stock Drugdoctor 03/06/18 07:53:03 AM
#273   I like how 1.70 held up this morning Jols 03/02/18 11:55:23 AM
#272   So Broadfin Healthcare Master Fund is out... that Drugdoctor 02/13/18 08:42:49 PM
#271   6$ price target ... Sziszi 02/05/18 08:31:25 AM
#270   ARLZ buy rating by HC Wainwright! Sziszi 02/05/18 08:27:02 AM
#269   Very nice to see this forecast HappyCamper27 02/03/18 04:21:24 PM
#268   DD ALSo let me go on Country Squire 01/31/18 10:35:16 AM
#267   Morning, agree with your long term thinking, CEO, Country Squire 01/31/18 06:50:12 AM
#266   Welcome to $ARLZ.... can't believe it went down Drugdoctor 01/30/18 06:41:48 PM
#265   I feel so guilty, buy 10,000 between Country Squire 01/30/18 02:12:59 PM
#264   Morning PR Announcement Arales to Country Squire 01/30/18 09:29:05 AM
#263   Nice plateau chart at higher levels.... $ARLZ Drugdoctor 01/29/18 09:29:23 PM
#262   here we go! aristotelisonassis 01/18/18 02:04:26 PM
#261   boom! aristotelisonassis 01/18/18 01:59:09 PM