BioDelivery Sciences Reports Second Quarter 2021 Results
Total Company Net Revenue of
Strong Profitability with GAAP Net Income of
Announces Agreement to Acquire ELYXYB TM for the Acute Treatment of Migraine
Conference Call and Webcast Scheduled for
“BELBUCA continued its strong double-digit revenue growth trajectory in spite of a slower-than-expected rebound in the pain market, however, we are starting to see gradual signs of market normalization,” stated
“We are also very pleased to be adding ELYXYB to our portfolio of valuable and differentiated products, as the only ready-to-use oral solution approved for acute migraine with or without aura in adults,” Bailey added. “This differentiated drug represents a highly attractive opportunity to diversify our product portfolio, deepening our presence in neurology, a logical adjacency to our chronic pain franchise. We see this acquisition as establishing a great growth platform in neurology.”
Key Business Highlights
Total Companynet revenue for the second quarter increased by 13% versus the prior year period to $41.4 million. This growth was driven by all-time high BELBUCA net sales of $36.5 million, which increased 13% year over year, and Symproic® net sales of $4.0 million, which increased 18% year over year.
- BELBUCA achieved an all-time high quarterly market share of 4.7% as well as an all- time high in unique BELBUCA prescribers of 8,345 which is an increase of 11% year over year. Total BELBUCA prescriptions were approximately 119,000 during the second quarter, representing year-over-year prescription volume growth of 11%.
- Total Symproic prescriptions were approximately 18,000 in the second quarter, up 3% versus the prior year period.
- Strong gross margin of 89.7%, coupled with prudent management and prioritization of operating expenses, contributed to continued strong profitability, with
$9.1 millionof GAAP Net Income, an attractive 32% EBITDA margin, and non-GAAP Net Income of $12.5 millionor $0.12 centsper share in the second quarter of 2021. Year-to-date through June 30, 2021, non-GAAP Net Income is $21.0 millionor $0.20 centsper share. Both GAAP and non-GAAP net income were impacted by higher litigation spend year to date through June 30, 2021.
August 3, 2021, the Company entered into an agreement to acquire the U.S.and Canadian rights to ELYXYB (celecoxib oral solution), from Dr. Reddy’s Laboratories. ELYXYB is the only ready-to-use oral solution approved by the FDA for the acute treatment of migraine, with or without aura, in adults. When launched in the US, ELYXYB will participate in a substantial and growing market, and is expected to drive the Company’s revenue growth and shareholder value while leveraging much of its existing infrastructure.
- The Company repurchased 1.6 million shares in the quarter under its existing share buyback program, at an average price of
$3.51per share, bringing the total shares purchased to date under the program to 3.3 million shares, at an average price of $3.70.
Second Quarter 2021 Financial Results
Total Company Net Revenue for the second quarter of 2021 was
BELBUCA Net Sales for the second quarter of 2021 were an all-time high of
Symproic Net Sales for the second quarter were
Total Operating Expenses for the second quarter of 2021 were
GAAP Net Income for the second quarter of 2021 was
EBITDA for the second quarter of 2021 was
Non-GAAP Net Income for the second quarter of 2021 was
Cash Position: As of
The Company reiterates its 2021 financial guidance, with full year 2021 total Company net sales of $170 -
“We continue to invest behind our growing brands and infrastructure to drive future growth. The persistent efforts of our commercial team permit us to continue growing our market share for BELBUCA within the long-acting opioid market. Our focus remains on helping patients with unmet needs and driving long-term shareholder value through our pain and now neurology franchises,” stated
Please see Important Safety Information about ELYXYB below.
Conference Call & Webcast Details
BioDelivery Sciences will host a conference call and webcast today, August 4, 2021, at 8:30 a.m. ET to present second quarter 2021 results and to provide a business update. Dial-in details are as follows:
ABOUT BIODELIVERY SCIENCES INTERNATIONAL, INC.
CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS
This press release and any statements of employees, representatives, and partners of BioDelivery Sciences International, Inc. (“BDSI”) related thereto contain, or may contain, among other things, certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve significant risks and uncertainties. Such statements may include, without limitation, statements with respect to BDSI’s plans, objectives, projections, expectations and intentions and other statements identified by words such as “projects,” “may,” “will,” “could,” “would,” “should,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “potential” or similar expressions. These statements are based upon the current beliefs and expectations of BDSI’s management and are subject to significant risks and uncertainties, including those detailed in BDSI’s filings with the Securities and Exchange Commission. Actual results (including, without limitation, the expectations for total company net sales, BELBUCA net sales, operating expenses, EBITDA and operating cash flows in 2021, the acquisition and launch of ELYXYB and growth in neurology) may differ materially from those set forth or implied in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond BDSI’s control) including the risk that the current coronavirus pandemic impacts on our supply chain, commercial partners, patients and their physicians and the healthcare facilities in which they work, and our personnel are greater than we anticipate, as well as those set forth in our 2020 annual report on Form 10-K filed with the US Securities and Exchange Commission and subsequent filings. BDSI undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future presentations or otherwise, except as required by applicable law.
Non-GAAP Financial Measures
This press release includes information about certain financial measures that are not prepared in accordance with generally accepted accounting principles in
Non-GAAP net income adjusts for one-time and non-cash charges by excluding the following from GAAP net income: stock-based compensation expense and non-cash amortization of intangible assets, as well as one-time costs associated with the CEO transition in the second quarter of 2020 and the non-recurring impact of the discontinuation of BUNAVAIL.
EBITDA excludes net interest, including both interest expenses and interest income, provision for (benefit from) income taxes, depreciation, and amortization.
The Company's management and board of directors utilize these non-GAAP financial measures to evaluate the Company's performance. The Company provides these non-GAAP measures of the Company's performance to investors because management believes that these non-GAAP financial measures, when viewed with the Company's results under GAAP and the accompanying reconciliations, are useful in identifying underlying trends in ongoing operations. However, non-GAAP net income and EBITDA are not measures of financial performance under GAAP and, accordingly, should not be considered as alternatives to GAAP measures as indicators of operating performance. Further, non-GAAP net income and EBITDA should not be considered measures of our liquidity.
A reconciliation of certain GAAP to non-GAAP financial measures has been provided in the tables included in this press release.
ELYXYB INDICATION AND USAGE
ELYXYB is indicated in adults for the acute treatment of migraine with or without aura.
Limitations of Use: ELYXYB is not indicated for the preventive treatment of migraine.
ELYXYB IMPORTANT SAFETY INFORMATION
WARNING: RISK OF SERIOUS CARDIOVASCULAR AND GASTROINTESTINAL EVENTS
|Cardiovascular Thrombotic Events
ELYXYB is contraindicated in patients with:
- Known hypersensitivity to celecoxib, any components of the drug product, or sulfonamides (4)
- History of asthma, urticaria, or other allergic-type reactions after taking aspirin or other NSAIDs (4)
- In the setting of CABG surgery (4)
To minimize the potential risk for an adverse cardiovascular (CV) event in NSAID-treated patients, use ELYXYB for the fewest number of days per month as needed, based on individual treatment goals. Physicians and patients should remain alert for the development of such events, throughout the entire treatment course, even in the absence of previous CV symptoms. Patients should be informed about the symptoms of serious CV events and the steps to take if they occur.
Avoid the use of ELYXYB in patients with a recent myocardial infarction (MI) unless the benefits are expected to outweigh the risk of recurrent CV thrombotic events. If ELYXYB is used in patients with a recent MI, monitor patients for signs of cardiac ischemia.
NSAIDs, including ELYXYB, can cause serious gastrointestinal (GI) adverse events including inflammation, bleeding, ulceration, and perforation of the esophagus, stomach, small intestine, or large intestine, which can be fatal. These serious adverse events can occur at any time, with or without warning symptoms, in patients treated with celecoxib. Only one in five patients who develop a serious upper GI adverse event on NSAID therapy is symptomatic. Upper GI ulcers, gross bleeding, or perforation caused by NSAIDs occurred in approximately 1% of patients treated for 3 to 6 months, and in about 2% to 4% of patients treated for one year. However, even short-term NSAID therapy is not without risk.
Avoid the use of ELYXYB in patients with severe heart failure unless the benefits are expected to outweigh the risk of worsening heart failure. If ELYXYB is used in patients with severe heart failure, monitor patients for signs of worsening heart failure.
Elevations of ALT or AST (less than three times ULN) may occur in up to 15% of patients treated with NSAIDs, including ELYXYB.
Long-term administration of NSAIDs, including celecoxib, the active ingredient in ELYXYB, has resulted in renal papillary necrosis and other renal injury.
No information is available from controlled clinical studies regarding the use of celecoxib in patients with severe renal impairment. The renal effects of celecoxib may hasten the progression of renal dysfunction in patients with preexisting renal disease.
Overuse of acute migraine drugs (e.g., ergotamine, triptans, opioids, nonsteroidal anti-inflammatory drugs or combination of these drugs for 10 or more days per month), including ELYXYB, may lead to exacerbation of headache (medication overuse headache). Medication overuse headache may present as migraine-like daily headaches or as a marked increase in frequency of migraine attacks. Detoxification of patients, including withdrawal of the overused drugs and treatment of withdrawal symptoms (which often includes a transient worsening of headache) may be necessary.
NSAIDs, including ELYXYB, may increase the risk of bleeding events. Co-morbid conditions such as coagulation disorders or concomitant use of warfarin, other anticoagulants, antiplatelet drugs (e.g., aspirin), SSRIs, and serotonin norepinephrine reuptake inhibitors (SNRIs) may increase this risk.
Most common adverse reaction (at least 3% and greater than placebo) is dysgeusia.
These are not all the side effects associated with ELYXYB.
Please see Patient Information, Instructions For Use, Medication Guide and Full Prescribing Information for ELYXYB
© 2021 BioDelivery Sciences International, Inc. All rights reserved.
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|Cash and cash equivalents||$||119,853||$||111,584|
|Accounts receivable, net||52,872||48,150|
|Prepaid expenses and other current assets||4,680||5,208|
|Total current assets||196,064||182,385|
|Property and equipment, net||1,640||1,418|
|License and distribution rights, net||49,908||53,376|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Accounts payable and accrued liabilities||$||57,752||$||52,995|
|Notes payable, current||6,154||—|
|Total current liabilities||63,906||52,995|
|Notes payable, less current maturities||72,472||78,452|
|Other long-term liabilities||31||213|
|Commitments and contingencies|
|Preferred Stock, 5,000,000 shares authorized; Series B Non-Voting Convertible
98,529,046 and 101,354,447 shares outstanding at
|Additional paid-in capital||452,550||449,264|
|Total stockholders’ equity||113,918||108,234|
|Total liabilities and stockholders’ equity||$||250,327||$||239,894|
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|Three months ended
||Six months ended
|Product royalty revenues||916||137||1,132||700|
|Cost of sales||4,284||5,435||10,105||10,995|
|Selling, general and administrative||25,779||28,211||53,540||54,948|
|Income from operations||11,376||2,936||18,813||8,918|
|Interest expense, net||(1,999||)||(1,693||)||(3,977||)||(2,987||)|
|Other (expense)/income, net||(1||)||8||(1||)||8|
|Income before income taxes||$||9,376||$||1,251||$||14,835||$||5,939|
|Income tax (provision)/recovery||(312||)||(86||)||(534||)||192|
|Net income attributable to common
|Weighted average common stock shares
|Basic earnings per share||$||0.09||$||0.01||$||0.14||$||0.06|
|Weighted average common stock shares
|Diluted earnings per share||$||0.09||$||0.01||$||0.14||$||0.06|
|CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS|
|Six months ended
|Adjustments to reconcile net income to net cash flows from operating
|Depreciation and amortization||54||446|
|Accretion of debt discount and loan costs||174||142|
|Amortization of intangible assets||3,469||3,515|
|Provision for inventory obsolescence||699||72|
|Stock-based compensation expense||3,187||6,306|
|Net change in operating lease assets and liabilities||(19||)||—|
|Changes in assets and liabilities:|
|Prepaid expenses and other assets||368||1,670|
|Accounts payable and accrued liabilities||4,731||2,617|
|Net cash flows provided by operating activities||20,327||4,989|
|Acquisitions of equipment||(415||)||—|
|Net cash flows used in investing activities||(415||)||—|
|Proceeds from notes payable||—||20,000|
|Proceeds from exercise of stock options||260||2,569|
|Payment on share repurchase||(11,903||)||—|
|Payment on deferred financing fees||—||(437||)|
|Net cash flows (used in)/provided by financing activities||(11,643||)||22,132|
|Net change in cash and cash equivalents||8,269||27,121|
|Cash and cash equivalents at beginning of period||111,584||63,888|
|Cash and cash equivalents at end of period||$||119,853||$||91,009|
|RECONCILIATION OF NON-GAAP METRICS|
|Three Months Ended
||Six Months Ended
|Reconciliation of GAAP net income to EBITDA (non-GAAP)||2021||2020||2021||2020|
|GAAP net income||$||9,064||$||1,165||$||14,301||$||6,131|
|Income tax recovery/(provision)||312||86||534||(192||)|
|Net interest expense||1,999||1,685||3,977||2,979|
|Depreciation and amortization||1,769||2,159||3,523||3,960|
|Reconciliation of GAAP net income to Non-GAAP net income|
|GAAP net income||$||9,064
|Stock-based compensation expense||1,697||1,364||3,187||2,884|
|Amortization of intangible assets||1,735||1,734||3,469||3,515|
|Non-recurring financial impact of CEO transition||—||5,078||—||5,078|
|Non-recurring financial impact of BUNAVAIL discontinuation||—||295||—||295|
|Non-GAAP net income||$||12,496||$||9,636||$||20,957||$||17,903|
Source: BioDelivery Sciences International