Tribute Pharmaceuticals Reports Double Digit Revenue Growth in Third Quarter 2014
(firmenpresse) - MILTON, ONTARIO -- (Marketwired) -- 11/10/14 -- Tribute Pharmaceuticals Canada Inc. (OTCQX: TBUFF) (TSX VENTURE: TRX) ("Tribute" or the "Company"), a specialty pharmaceutical company with a primary focus on the acquisition, licensing, development and promotion of healthcare products in Canada and the US, today announced financial results for its third quarter ending September 30, 2014. In this press release, all dollar amounts are expressed in Canadian currency - unless otherwise noted - and results are reported in accordance with United States generally accepted accounting principles (U.S. GAAP).
On October 2, 2014, subsequent to the quarter ended September 30, 2014, the Company entered into an asset purchase agreement, license agreement and supply agreement with Novartis AG and Novartis Pharma AG (together "Novartis") pursuant to which the Company acquired from Novartis the Canadian rights to manufacture, market, promote, distribute and sell Fiorinal®, Fiorinal® C, Visken® and Viskazide®. The consideration paid for the acquired assets was $32,000,000. The Company funded the acquisition of the acquired assets with cash on hand and with US$6,000,000 of debt provided by SWK Funding LLC ("SWK"), a wholly-owned subsidiary of SWK Holdings Corporation. See press release dated October 2, 2014 for additional details.
"We continued to demonstrate solid growth in Q3 2014," said Rob Harris, President and CEO of Tribute, "and we are laying a strong foundation for record revenues for the Company in the coming quarters and years." Mr. Harris went on to say, "Q3 2014 was a very productive quarter for Tribute and the completion of the $30 million financing on July 15, 2014 enabled us to acquire Fiorinal®, Fiorinal® C, Visken® and Viskazide® from Novartis. This acquisition is transformative for our Company as we now expect to report positive EBITDA beginning as soon as Q4 2014. We are seeing good organic growth from all of our promoted products and along with the additional products from Novartis expect to see top-line revenue growth as high as 50% next year."
Third Quarter 2014 Highlights:
Review of Third Quarter 2014 Operating Results:
Total revenues for the three month period ended September 30, 2014 increased by 11.2% to $3,868,900 compared to $3,480,100 during the same period in 2013. The growth in revenue was attributable to an increase in licensed domestic product net sales of $139,400 or 6.2%, other domestic product sales of $200,700 or 25.4% and international product sales of $148,600 or 42.8% partially offset by a decrease in royalty and licensing revenues of $99,900.
Gross profit for the three-month period ended September 30, 2014 was $1,880,500, higher by 19.8%, or $311,000 compared to the same period in the prior year. Underlying improvements in gross profit for the three-month period ended September 30, 2014 resulted from an increase in gross profit of $115,500 from licensed domestic product net sales, $300,300 from other domestic product sales and international product sales primarily based on the growth of Cambia sales during this period. These increases were partially offset by an increase of $5,000 in the write-off of expired products and a decrease in royalty and licensing revenues of $99,900.
Selling, general and administrative expenses for the three month period ended September 30, 2014 were $2,529,500 compared to $2,224,500 for the same period in 2013. The increase of $305,100 or 13.7% is primarily due to foreign exchange losses of $196,300, as well as continued investment in the Company''s sales force and marketing expenses to grow its existing products, plus an increase in business development related expenses.
The net loss from operations for the three month period ended September 30, 2014, was $945,800 compared to the same period in 2013 of $968,600. The decrease in operational loss of $22,800 or 2.4% represents increased gross profit of $311,000 and decreased amortization of $16,900, partially offset by higher selling, general and administrative expenses $305,100 (primarily related to foreign exchange loss of $196,300).
Net income before taxes for the three month period ended September 30, 2014, was $3,041,900, compared to a net loss of $2,583,600 for the same period in the prior year or an increase in the net income of $5,625,500 or 217.7%. This equates to gain of $0.03 per share compared to a loss of $0.05 per share for the same period in 2013.
Review of September Year-To-Date Operating Results:
For the nine month period ended September 30, 2014 total revenues increased by 11.5% to $11,403,800 compared to $10,232,400 in the same period in 2013. The increase in revenue was attributable to an increase in licensed domestic product net sales of $742,800 or 11.6%, an increase in other domestic product sales of $327,200 or 12.5% and an increase in international product sales of $280,900 or 27.1%. Serving as a partial offset was a decrease in royalty and licensing revenues of $179,500.
Gross profit for the nine month period ended September 30, 2014 was $5,655,600, higher by 19.4%, or $918,900 compared to the same period in the prior year. Underlying improvements in gross profit for the nine month period ended September 30, 2014 resulted from an increase in gross profit of $548,500 from licensed domestic product net sales and an increase of $568,200 from other domestic product sales and international product sales. Serving as a partial offset was a decrease in royalty and licensing revenues of $179,500 and an increase of $18,300 related to the write-off of expired products.
Selling, general and administrative expenses for the nine month period ended September 30, 2014 were $8,161,900 compared to $7,681,200 for the same period in 2013. The increase of $480,700 or 6.3% related to continued investment in the Company''s sales force and marketing expenses to grow its existing products, plus an increase in business development activities, including $194,600 related to a Bezalip SR® filing in the U.S. and $72,100 related to recently licensed bilastine as well as foreign exchange losses of $372,300.
The net loss from operations was $3,390,000 compared to the same period in 2013 of $3,922,200. The decrease in the operational loss of $532,200 or 13.6% is mainly attributable to a higher gross profit of $918,900 and lower amortization of $94,000, offset by a higher selling, general and administrative expenses of $480,700.
The net loss for the nine month period ended September 30, 2014 was $4,647,100, compared to a net loss of $6,286,000 for the same period in the prior year or a decrease of $1,638,900 or 26.1%. This equates to a loss of $0.07 per share compared to a loss of $0.13 per share for the same period in 2013.
Warrant Liability:
The revaluation of the warrant liability for the three month period ended September 30, 2014, resulted in a decrease in the warrant expense (non-cash) of $4,454,600 (September 30, 2013 - $660,300 increase). The decrease primarily relates to a private placement in 2013 of approximately $4.6 million of units of the Company''s equity securities. Since the warrants are denominated in U.S. dollars and the Company''s functional currency is in Canadian dollars, the fair market value of the warrants fluctuates from period to period. The fair market value is based on the current stock price, volatility, the risk free interest rate, time remaining until expiry and changes in the exchange rate between the U.S. and Canadian dollar.
For the nine month period ended September 30, 2014 the revaluation of the warrant liability resulted in an increase in the warrant expense (non-cash) of $163,200 (September 30, 2013 - $1,510,800). The increase primarily relates to the private placement of approximately $4.6 million of units completed in the first quarter of 2013.
Liquidity and Capital Resources:
Tribute''s cash and cash equivalents position amounted to $28,725,800 at September 30, 2014 compared to $2,813,500 at December 31, 2013.
On October 1, 2014 subsequent to the quarter ended September 30, 2014, Tribute and SWK entered into an amended credit agreement to increase the Company''s existing credit facility from US$8,000,000 to US$14,000,000 which may be increased by an additional US$3,000,000 at the Company''s request, on or before December 31, 2015. In addition, the Company issued SWK a warrant to purchase 740,000 common shares of the Company. The warrant is exercisable for a period of five years from the closing date at an exercise price of US$0.70.
Tribute will host a conference call on Monday, November 10, 2014 at 11 AM EDT to review and discuss the Company''s results for its third quarter ending September 30, 2014. To join the conference call, use the dial-in information below. When prompted, ask for the "Tribute Pharmaceuticals Call."
Conference Line Dial-In (Canada & U.S.): 877-407-0782
International Dial-In: 201-689-8567
About Tribute Pharmaceuticals Canada Inc.
Tribute is a specialty pharmaceutical company with a primary focus on the acquisition, licensing, development and promotion of healthcare products in Canada and the U.S. markets.
Tribute markets Cambia® (diclofenac potassium for oral solution), Bezalip® SR (bezafibrate), Soriatane® (acitretin), NeoVisc® (1.0% sodium hyaluronate solution) Uracyst® (sodium chondroitin sulfate solution 2%), Fiorinal®, Fiorinal® C, Visken®, Viskazide® and Collatamp® G in the Canadian market. Additionally, NeoVisc® and Uracyst® are commercially available and are sold globally through various international partnerships. Tribute also has the exclusive U.S. rights to develop and commercialize Bezalip® SR in the U.S. and has the exclusive right to sell bilastine, a product licensed from Faes Farma for the treatment of allergic rhinitis and chronic idiopathic urticaria (hives), in Canada. The exclusive license is inclusive of prescription and non-prescription rights for bilastine, as well as adult and pediatric presentations in Canada. This product is subject to receiving Canadian regulatory approval.
Tribute Pharmaceuticals'' Forward Looking Statement
This press release contains certain forward-looking statements about Tribute as under applicable securities laws, which statements can be identified by the use of forward-looking terminology, such as "may", "will", "expect", "intend", "anticipate", "estimate", "predict", "plan" or "continue" or the negative thereof or other variations thereon or comparable terminology referring to future events or results. Such forward-looking statements include, without limitation, statements with respect to expectations of positive EBITDA beginning as soon as Q4 2014 and top-line revenue growth as high as 50% next year. Forward-looking statements, by their nature, are subject to risks and uncertainties, Tribute''s actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous factors, any of which could cause actual results to vary materially from current results or anticipated future results. See Tribute''s reports filed with the Canadian Securities Regulatory Authorities and the U.S. Securities and Exchange Commission from time to time for cautionary statements identifying important factors with respect to such forward-looking statements, including certain risks and uncertainties that could cause actual results to differ materially from results referred to in forward-looking statements. Tribute assumes no obligation to update the information contained in this press release to update forward-looking statements to reflect changed assumptions, the occurrence of anticipated events or changes in future operating results, financial condition or business over time.
Bezalip® SR and Soriatane® are registered trademarks and under license from Actavis Group PTC ehf. Cambia® is a registered trademark and under license from Depomed, Inc. Collatamp® G is a registered trademark and under license EUSA Pharma (Europe) Limited. Visken® and Viskazide® are registered trademarks under license with Novartis AG.
For further information on Tribute visit the Company''s website:
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Scott Langille
CFO
Tribute Pharmaceuticals Canada Inc.
905-876-3166
Kevin Fickle
Nuwa Group LLC, President
(925) 330-8315
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Datum: 10.11.2014 - 06:30 Uhr
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