Juniper Pharmaceuticals Reports Second Quarter 2015 Financial Results

- Revenues increased 53% year-over-year to $10.2 million -

Aug 04, 2015, 07:00 ET from Juniper Pharmaceuticals, Inc.

BOSTON, Aug. 4, 2015 /PRNewswire/ -- Juniper Pharmaceuticals, Inc. (Nasdaq: JNP) ("Juniper" or the "Company") a women's health specialty pharmaceutical company, today announced financial results for the three months ended June 30, 2015. Highlights include:

  • Patient enrollment is underway and on track in the Phase 2 clinical study of COL-1077 10% lidocaine bioadhesive gel;
  • Total revenues increased 53% year-over-year to $10.2 million, driven by an 89% increase in product revenues and 29% growth in service revenues;
  • $16.1 million in cash and equivalents at June 30, 2015.

"This was a robust quarter for Juniper Pharmaceuticals, with solid revenue growth reflecting strength in the CRINONE® franchise and our pharmaceutical services business," stated Frank Condella, Chief Executive Officer. "The recent approval of CRINONE® in nine additional European Union countries will support the ongoing expansion of our product revenues and reinforces our expectation for low double-digit revenue growth this year."

The Company continues to advance its drug development activities on several fronts, with focus on developing therapeutics for unmet medical needs in women's health. 

Enrollment is underway at 13 of 15 planned U.S. study centers in the ongoing Phase 2 trial of COL-1077, with the remaining two sites expected to come online by the end of August. This study is evaluating the safety and efficacy of COL-1077 in women undergoing pipelle-directed endometrial biopsy with tenaculum placement. The primary endpoint of this study is the reduction in pain intensity at the time of biopsy. Results are expected in mid-2016.

The Company is prioritizing identified opportunities that would leverage its proprietary bioadhesive gel and segmented intra-vaginal ring technologies. These include initial indications in OB/Reproductive, Rheumatologic, GYN Endocrine, Endocrine-Bone, and Uro-Gynecological health. Juniper plans to announce by the end of this year the second product it will move into development.   

Juniper has assembled an exceptional team of drug development and formulation experts, both in-house and on its Scientific Advisory Board comprised of leading experts in women's health. The Company is leveraging this expertise and its world-class pharmaceutical development and clinical manufacturing capabilities to support both its global client base and its proprietary drug development activities. These unique resources, along with the Company's cash position, provide a strong platform for future growth.

Second Quarter Financial Results

Revenues for the three-month period ended June 30, 2015 were $10.2 million, an increase of 53% as compared to $6.7 million for the three-month period ended June 30, 2014. On a sequential basis, revenues rose 23% versus the first quarter of 2015.

Product revenues for the second quarter increased 89% to $6.6 million, compared with $3.5 million in the prior year period. The $3.1 million increase continues the return of normalized CRINONE® (progesterone gel) shipments beginning in the third quarter of 2014. On a sequential basis, product revenues rose 36% versus the first quarter of 2015.   

On a U.S. dollar basis, second quarter service revenues increased 29% year-over-year to $2.7 million, primarily due to higher customer volumes across the Company's service offering. On a local currency basis, second quarter service revenues increased 41% year-over-year and 9% versus the first quarter of 2015.

Royalty revenues were $0.9 million in the quarter, compared with $1.0 million in the prior year period. The decrease largely reflects the monetization of a legacy product royalty stream in the third quarter of 2014, with no corresponding revenue in 2015.

Gross profit rose 67% to $4.6 million in the second quarter of 2015, as compared to $2.8 million in the prior year period. Gross profit as a percentage of total revenues was 45%, up from 42% in the prior year quarter.  

Total operating expenses increased to $5.0 million in the second quarter, compared to $2.7 million in the prior year period. The increase was largely driven by $2.1 million of research and development (R&D) costs. R&D costs during the quarter included expenses associated with the initiation of the Phase 2 study of COL-1077 in late May 2015. No R&D expenses were incurred in the second quarter of 2014.

The Company reported an operating loss of $0.3 million, compared with an operating profit of $0.1 million in the year-ago period.

The second quarter net loss was $0.3 million, or ($0.03) per diluted share. In the second quarter of 2014, the net loss was $10 thousand, or ($0.01) per diluted share. Adjusted EBITDA was $0.6 million in the second quarter of 2015 compared with $0.8 million in the second quarter of 2014.

Cash and cash equivalents were $16.1 million as of June 30, 2015.

Recent Business Highlights

  • Merck KGaA, Darmstadt, Germany, was granted new marketing authorization for CRINONE® in nine European Union countries: Bulgaria, Estonia, France, Iceland, Latvia, Lithuania, the Netherlands, Poland, and Romania. Juniper Pharmaceuticals is the exclusive supplier of CRINONE® to Merck, KGaA, Darmstadt, Germany.
  • James Geraghty was elected as Chairman of the Board. Mr. Geraghty is an industry leader with 30 years of strategic and leadership experience, including more than 20 years as a senior member of executive teams at biotechnology companies developing and commercializing innovative therapies.
  • Biotechnology industry veteran Ann Merrifield joined Juniper's Board of Directors. Ms. Merrifield was formerly President and Chief Executive Officer of PathoGenetix, and previously held executive roles at Genzyme Corporation.

Conference Call

As previously announced, Juniper's management will hold a conference call to discuss financial results for the second quarter ended June 30, 2015, as follows:

Date:

Tuesday, August 4, 2015

Time:

8:30 am EDT

Dial-in numbers:

Toll free: 

(866) 374-4635 (U.S.)

(855) 669-9657 (Canada)

International:

(412) 902-4218

Webcast (live & archive):

www.juniperpharma.com, under 'Investor Relations' or click here

The teleconference replay will be available approximately one hour after completion through Friday, August 21, 2015, at (877) 344-7529 (U.S.), (855) 669-9658 (Canada), or (412) 317-0088 (International). The conference ID for the replay is 10069118.  The archived webcast will be available for one year via the aforementioned URLs.

About Juniper Pharmaceuticals

Juniper Pharmaceuticals, Inc. (Nasdaq: JNP) (formerly Columbia Laboratories) is a specialty pharmaceutical company focused on developing therapeutics that address unmet medical needs in women's health.  Juniper has a successful heritage in developing pharmaceutical products, including CRINONE® 8% (progesterone gel), which is marketed by Allergan, Inc. in the U.S. and by Merck and of Merck KGaA, Darmstadt, Germany, in over 90 countries worldwide. The Company is uniquely positioned to leverage in-house pharmaceutical development, clinical trial manufacturing, and analytical capabilities to advance an internal development pipeline, while also providing valuable consultative services to its pharmaceutical industry customers. Please visit www.juniperpharma.com for more information.

Juniper Pharmaceuticals™ and Juniper Pharma Services™ are trademarks of Juniper Pharmaceuticals, Inc., in the U.S. and EU.

CRINONE® is a registered trademark of Allergan, Inc. in the U.S. and of Merck KGaA, Darmstadt, Germany, outside the U.S.

Forward Looking Statements

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This communication contains forward-looking statements, which statements are usually indicated by the words "may," "will," "plans," "believes," "expects," "anticipates," "potential," "should," or similar expressions, and which are generally not historical in nature. These include all statements relating to expected financial performance and future business or product developments.  Management believes that these forward-looking statements are reasonable as and when made.  However, such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those projected in the forward-looking statements.  Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. These statements are based on management's current expectations and Juniper Pharmaceuticals does not undertake any responsibility to revise or update any forward-looking statements contained herein, except as expressly required by law.  For a discussion of certain risks and uncertainties associated with Juniper Pharmaceuticals' forward-looking statements, please review the Company's reports filed with the SEC, including, but not limited to, its Annual Report on Form 10-K for the period ended December 31, 2014.  

Contact

Katja Buhrer MBS Value Partners (212) 661-7004 katja.buhrer@mbsvalue.com

Follow us on LinkedIn: https://www.linkedin.com/company/juniper-pharmaceuticals 

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Juniper Pharmaceuticals, Inc

Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

2015

2014

2015

2014

Revenues

Product revenues

$       6,635

$       3,508

$    11,510

$      6,802

Product revenues from related party

167

Service revenues

2,714

2,110

5,174

4,588

Royalties

864

1,036

1,855

1,399

Royalties from related party

714

Total revenues

10,213

6,654

18,539

13,670

Cost of product revenues

3,521

1,953

6,633

4,379

Cost of service revenues

2,049

1,916

3,815

3,762

Total cost of revenues

5,570

3,869

10,448

8,141

Gross profit

4,643

2,785

8,091

5,529

Operating expenses

Sales and marketing

282

467

603

868

Research and development

2,132

3,516

General and administrative

2,562

2,239

5,136

4,690

Total operating expenses

4,976

2,706

9,255

5,558

Loss from operations

(333)

79

(1,164)

(29)

Interest expense, net

(27)

(29)

(54)

(63)

Change in fair value of common stock warrant liability

70

379

Other income (expense), net

37

36

208

33

Total non-operating income

10

77

154

349

(Loss) Income before income taxes

(323)

156

(1,010)

320

Provision for income taxes

3

166

8

178

Net (loss) income

$        (326)

$         (10)

$    (1,018)

$         142

Basic net (loss) income per common share

$       (0.03)

$       (0.00)

$      (0.09)

$        0.01

Diluted net loss per common share

$       (0.03)

$       (0.01)

$       (0.09)

$       (0.02)

Basic weighted average common shares outstanding

10,758

10,741

10,754

11,686

Diluted weighted average common shares outstanding

10,758

10,756

10,754

11,706

 

 

Juniper Pharmaceuticals, Inc

Consolidated Balance Sheets

(in thousands, except per share data)

June 30, 2015

December 31, 2014

(unaudited)

Assets

Current assets:

Cash and cash equivalents

$        16,130

$           16,762

Accounts receivable, net

6,466

5,289

Inventories

3,779

3,201

Prepaid expenses and other current assets

2,267

1,134

Total current assets

28,642

26,386

Property and equipment, net

12,917

13,041

Intangible assets, net

1,952

2,182

Goodwill

10,629

10,503

Other assets

91

96

Total assets

$        54,231

$           52,208

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable

$          2,997

$             2,873

Accrued expenses

3,987

1,918

Deferred revenue

964

914

Notes payable

249

243

Total current liabilities

8,197

5,948

Deferred revenue, net of current portion

1,215

1,553

Notes payable, net of current portion

3,203

3,289

Total liabilities

12,615

10,790

Commitments and contingencies

Contingently redeemable series C preferred stock, 0.55 shares issued and outstanding (liquidation preference of $550)

550

550

Shareholders' equity:

Preferred stock, $0.01 par value; 1,000 shares authorized Series B convertible preferred stock, 0.13 shares issued and outstanding (liquidation preference of $13)

Common stock $0.01 par value; 150,000 shares authorized; 12,202 issued and 10,791 outstanding at June 30, 2015 and 12,186 issued and 10,775 outstanding at December 31, 2014

122

122

Additional paid-in capital

288,634

287,660

Treasury stock (at cost), 1,411 shares at June 30, 2015

(8,579)

(8,579)

Accumulated deficit

(239,290)

(238,272)

Accumulated other comprehensive loss

179

(63)

Total shareholders' equity

41,066

40,868

Total liabilities and shareholders' equity

$        54,231

$           52,208

 

 

 

Juniper Pharmaceuticals, Inc.

Reconciliation of GAAP Net (Loss) Income to Adjusted EBITDA

(in thousands)

(unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2015

2014

2015

2014

Net Income

$

(326)

$

(10)

$

(1,018)

$

142

Non-GAAP adjustments to net income:

Depreciation and amortization

507

501

1,030

949

Stock-based compensation expense

372

182

904

346

Change in fair value of common stock warrant liability

-

(70)

-

(379)

Income tax provision

3

166

8

178

Interest expense (income), net

27

29

54

63

Total Non-GAAP adjustments to net income

909

808

1,996

1,158

Adjusted EBITDA

$

583

$

798

$

978

$

1,300

 

Non-GAAP Financial Presentation  To supplement our consolidated financial statements presented in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), Juniper uses non-GAAP measures. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The non-GAAP financial measure included in this press release presents adjusted EBITDA, which is a financial measure calculated in this instance by excluding from net income: depreciation and amortization; stock-based compensation expense; the change in the fair value of common stock warrant liability; income taxes; and interest expense net. This exclusion may be different from, and therefore not comparable to, similar measures used by other companies.

Juniper's management believes that this non-GAAP financial measure provides meaningful supplemental information regarding our performance by excluding certain expenses and expenditures that may not be indicative of our core business operating results. Juniper believes that both management and investors may benefit from referring to this non-GAAP financial measure in assessing Juniper's performance and when planning, forecasting and analyzing future periods. This non-GAAP financial measure also facilitates management's internal comparisons to Juniper's historical performance and our competitors' operating results. Juniper believes that this non-GAAP measure may be useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making.

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SOURCE Juniper Pharmaceuticals, Inc.



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