SAN DIEGO--(BUSINESS WIRE)--
Innovus Pharmaceuticals, Inc. (“Innovus Pharma”) (INNV), today announced full year 2016 net revenues of $4.8 million compared to $0.7 million in revenues for the same period in 2015 and fourth quarter of 2016 net revenues of $1.7 million compared to $0.2 million in revenues for the same period in 2015.
“We believe our revenue growth for all of 2016 highlights the strength of our Beyond Human® Sales and Marketing platform that we acquired in March 2016 along with the high value products we are commercializing,” stated Bassam Damaj, President and Chief Executive Officer of Innovus Pharma. “Looking forward to 2017, we continue to be focused on increasing annual revenues to $15 million by executing on our goals of expanding our product lines and making our products commercially available in the United States and outside of the United States through our partners, and achieving profitability.”
Financial highlights for the year ended December 31, 2016 included:
• Net revenues totaled $4.8 million for the year ended December 31, 2016, compared to net revenues of $0.7 million for the year ended December 31, 2015.
• Gross margins increased to 77.5% for the year ended December 31, 2016, compared to 53.4% for the year ended December 31, 2015.
• Total operating expenses increased to $10.7 million and included $2.7 million in non-cash share-based compensation for the year ended December 31, 2016.
• Net loss totaled $13.7 million, or $0.15 per common share, for the year ended December 31, 2016. The net loss included interest expense of $6.7 million, of which $6.4 million was non-cash and related to amortization of debt discounts and the excess initial fair value of the embedded conversion features from our 2016 financing. The net loss also included a non-cash expense of $1.3 million for the net change in fair value of contingent consideration. Net loss for the year ended December 31, 2015 totaled $4.2 million or $0.08 per common share.
Financial highlights for the three months ended December 31, 2016 included:
• Net revenues totaled $1.7 million for the three months ended December 31, 2016, compared to net revenues of $0.2 million for the three months ended December 31, 2015.
• Gross margins increased to 78.2% for the three months ended December 31, 2016, significantly higher than gross margins for the three months ended December 31, 2015 which totaled 44.3%.
• Total operating expenses increased to $3.6 million and included $0.8 million in non-cash share-based compensation for the three months ended December 31, 2016.
• Net loss totaled $3.4 million, or $0.03 per common share, for the three months ended December 31, 2016. The net loss included a non-cash expense of $1.5 million for the net change in fair value of contingent consideration. The net loss also included interest expense of $0.7 million, of which $0.6 million was non-cash and related to amortization of debt discounts and the excess initial fair value of the embedded conversion feature from our 2016 financing. Net loss for the three months ended December 31, 2015 totaled $1.0 million or $0.02 per common share.
• Cash balance totaled $0.8 million at December 31, 2016.
Fourth quarter 2016 and recent developments:
• Notification was received to commercialize Zestra® in all 28 member countries of the European Union.
• Zestra® was approved for sale in South Korea through its partner J&H Co. LTD.
• Mr. Randy Berholtz was appointed as Executive Vice President, Corporate Development and General Counsel.
• Lertal® tablets, a clinically proven supplement for the relief of allergic rhinitis symptoms from NTC was in-licensed for the United States and Canada. Product will be launched under the brand name AllerVarx™.
• UriVarx™, clinically proven to reduce urinary urgency, accidents and both day and night frequency in Overactive Bladder (OAB) and Urinary Incontinence (UI), was launched under the Beyond Human® Sales and Marketing Platform.
• Entered into a $2.0 million per year exclusive license and distribution agreement with J&H Co. LTD granting them exclusive rights to market and sell Zestra® in South Korea.
• Zestra® multi-dose form for female sexual arousal, was launched under the Beyond Human® Sales and Marketing Platform in the U.S.
• Entered into an exclusive license and distribution agreement with Elis Pharmaceuticals granting Elis exclusive license to market and sell Zestra® in Lebanon.
• Initiated a pre-clinical and clinical program intended to evaluate the safety and efficacy of the combination of its supplement Vesele® for promoting sexual health with sildenafil indicated for treating erectile dysfunction.
The Company will host a conference call at 4:30 p.m. ET/1:30 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. Participant Elite Entry Number: 5095822. 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 and reference Conference ID: 10102614. The replay will be available shortly after the end of the conference call.
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