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Tuesday, November 14, 2017 3:01:09 PM
$ARLZ-1.60-is-100-Million-Revenue-Nasdaq-Pharma-Turnaround Stock-EARNINGS-NEWS...
Aralez Announces Third Quarter 2017 Financial Results And Achieves Profitability on an Adjusted EBITDA Basis for the First Time in the Third Quarter
•Nov 9, 2017, 7:00 AMComment
-3Q 2017 Net Revenues of $24.3 Million ; Year-to-Date 2017 Net Revenues of $77.9 Million -
-Implements Fiscal Improvements designed to Deliver Profitability, Support Growth & Extend Cash Runway-
-Provides Updated 2017 Full-Year Guidance and Preliminary 2018 Full-Year Outlook-
MISSISSAUGA, Ontario , Nov. 9, 2017 /CNW/ -- Aralez Pharmaceuticals Inc. (ARLZ) (ARZ.TO) ("Aralez" or the "Company") today announced financial results for the three and nine months ended September 30, 2017 , and provided updated financial guidance for 2017 and its preliminary 2018 financial outlook. The Company also provided a business and corporate update. All figures are in U.S. dollars.
"Our performance in the third quarter demonstrates the strength of our underlying business, with growth in the U.S. and Canada , and puts us on the path to profitability as reflected by the achievement of positive quarterly Adjusted EBITDA for the first time as Aralez," said Adrian Adams , Chief Executive Officer of Aralez. "We are delighted with the evolution of Zontivity ® , the improved outlook for the Toprol-XL ® franchise in the U.S. and the continued strong performance of the Canadian business. As a result of this performance, we updated our 2017 financial guidance and now expect full-year net revenue to be in the range of $95 million to $105 million ."
Financial Improvements Designed to Streamline the U.S. Business, Deliver Profitability and Growth
Aralez plans to implement further financial improvements designed to streamline the U.S. business, deliver profitability and support growth, as well as extend the cash runway through 2018 and beyond. These efforts are expected to result in a leaner, nimble and more effective performance-oriented operating model with the elimination of approximately $32 million , or 28%, of SG&A in 2018 compared to the current full-year 2017 estimate. The $32 million estimated annual SG&A reduction reflects the reductions announced in April 2017 as well as incremental expense reductions. These expense reductions, which will include reductions in marketing spend, professional and consulting fees, and other departmental expenses, are intended to significantly reduce the Company's overall costs and are expected to produce significant EBITDA on an adjusted basis, opening potential pathways to better position the Company to refinance its debt in the future. The Company plans to maintain the size of its sales force with a continued focus and investment in the key growth asset, Zontivity.
Based on the Company's preliminary 2018 outlook, the Company is expected to transition into a growth phase of its corporate evolution and pivot into a profitable (on an Adjusted EBITDA basis) and growth Company. In 2018, net revenues are currently expected to be in a range of $140 million to $160 million and Adjusted EBITDA is currently expected to be in a range of $35 million to $55 million (see "Preliminary 2018 Financial Outlook" below for more information). The 2018 net revenue outlook reflects projected growth of Zontivity and the Canadian business and expected improvements in Toprol-XL franchise revenues, volume and margins due to, among other things, renegotiated distribution and other fees with various partners. The 2018 net revenue outlook also reflects Toprol-XL revenues being recorded on a gross basis, rather than on a net basis, commencing January 1, 2018 as a result of the expiration of the Transition Services Agreement with AstraZeneca.
"These broad financial improvements, together with the previously announced cost savings, are designed to position the Company on a pathway to achieve sustained profitability and growth," said Adrian Adams , Chief Executive Officer of Aralez. "We are significantly improving our overall costs and extending our cash runway through 2018 and beyond while better positioning the Company to refinance its debt in the future. In addition, we believe our strong financial outlook demonstrates that our business is on course to deliver meaningful growth in revenues and adjusted EBITDA in 2018 and beyond."
Aralez Announces Third Quarter 2017 Financial Results And Achieves Profitability on an Adjusted EBITDA Basis for the First Time in the Third Quarter
•Nov 9, 2017, 7:00 AMComment
-3Q 2017 Net Revenues of $24.3 Million ; Year-to-Date 2017 Net Revenues of $77.9 Million -
-Implements Fiscal Improvements designed to Deliver Profitability, Support Growth & Extend Cash Runway-
-Provides Updated 2017 Full-Year Guidance and Preliminary 2018 Full-Year Outlook-
MISSISSAUGA, Ontario , Nov. 9, 2017 /CNW/ -- Aralez Pharmaceuticals Inc. (ARLZ) (ARZ.TO) ("Aralez" or the "Company") today announced financial results for the three and nine months ended September 30, 2017 , and provided updated financial guidance for 2017 and its preliminary 2018 financial outlook. The Company also provided a business and corporate update. All figures are in U.S. dollars.
"Our performance in the third quarter demonstrates the strength of our underlying business, with growth in the U.S. and Canada , and puts us on the path to profitability as reflected by the achievement of positive quarterly Adjusted EBITDA for the first time as Aralez," said Adrian Adams , Chief Executive Officer of Aralez. "We are delighted with the evolution of Zontivity ® , the improved outlook for the Toprol-XL ® franchise in the U.S. and the continued strong performance of the Canadian business. As a result of this performance, we updated our 2017 financial guidance and now expect full-year net revenue to be in the range of $95 million to $105 million ."
Financial Improvements Designed to Streamline the U.S. Business, Deliver Profitability and Growth
Aralez plans to implement further financial improvements designed to streamline the U.S. business, deliver profitability and support growth, as well as extend the cash runway through 2018 and beyond. These efforts are expected to result in a leaner, nimble and more effective performance-oriented operating model with the elimination of approximately $32 million , or 28%, of SG&A in 2018 compared to the current full-year 2017 estimate. The $32 million estimated annual SG&A reduction reflects the reductions announced in April 2017 as well as incremental expense reductions. These expense reductions, which will include reductions in marketing spend, professional and consulting fees, and other departmental expenses, are intended to significantly reduce the Company's overall costs and are expected to produce significant EBITDA on an adjusted basis, opening potential pathways to better position the Company to refinance its debt in the future. The Company plans to maintain the size of its sales force with a continued focus and investment in the key growth asset, Zontivity.
Based on the Company's preliminary 2018 outlook, the Company is expected to transition into a growth phase of its corporate evolution and pivot into a profitable (on an Adjusted EBITDA basis) and growth Company. In 2018, net revenues are currently expected to be in a range of $140 million to $160 million and Adjusted EBITDA is currently expected to be in a range of $35 million to $55 million (see "Preliminary 2018 Financial Outlook" below for more information). The 2018 net revenue outlook reflects projected growth of Zontivity and the Canadian business and expected improvements in Toprol-XL franchise revenues, volume and margins due to, among other things, renegotiated distribution and other fees with various partners. The 2018 net revenue outlook also reflects Toprol-XL revenues being recorded on a gross basis, rather than on a net basis, commencing January 1, 2018 as a result of the expiration of the Transition Services Agreement with AstraZeneca.
"These broad financial improvements, together with the previously announced cost savings, are designed to position the Company on a pathway to achieve sustained profitability and growth," said Adrian Adams , Chief Executive Officer of Aralez. "We are significantly improving our overall costs and extending our cash runway through 2018 and beyond while better positioning the Company to refinance its debt in the future. In addition, we believe our strong financial outlook demonstrates that our business is on course to deliver meaningful growth in revenues and adjusted EBITDA in 2018 and beyond."
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