REDONDO BEACH, CA--(Marketwired - May 19, 2017) - SECFilings.com, a leading financial news and information portal offering free real time public filing alerts, recently published an article discussing Innovus Pharmaceuticals' (
Closing in on Profitability
Innovus reported first quarter 2017 revenue of $2.2 million, which is a sharp increase from just $224,000 during the year ago period. On a sequential basis, the company's revenue increased $500,000 -- or 29% -- despite the first quarter traditionally being its weakest. Historically, Innovus Pharmaceuticals quarter per quarter revenues show a very slow first quarter ($224K in 2016), followed by a significant increase in second quarter ($1M or close to 4x increase) and a peak in revenues in its third quarter ($1.9M close to 2x increase) and a slower fourth quarter ($1.7M).
On a linear flat growth basis, the company seems to be tracking to $8.8M in revenue for the year. But if we take into account their historical revenue patterns, the company may be able to reach and exceed its estimates for 2017. During a Q&A session on the earnings conference call, the company indicated that they expect to reach profitability upon hitting a $10 million revenue run rate, and considering past patterns (along with new product introductions and expanded distribution channels for existing products) that figure seems to be reachable this year. Gross margins improved to 79.8% from 46.7% a year ago, while cash used in operations decreased by $500,000 sequentially as the company moves closer to profitability.
"We have not only seen an increase in our net revenue from the most recent fourth quarter 2016 but our operating loss and cash used in operations has improved as we work to achieve our goal of profitability," said Innovus Pharma President & CEO Bassam Damaj. "With the exciting news stemming from the commercial supply agreement we entered into with our new partner for FlutiCare™ in May 2017 and the recent completion of our registered public equity offering in March 2017, we believe we are well on our way to having the necessary resources to assist us in executing our goals of the expected launch of FlutiCare™ in the fourth quarter of 2017, the continued expansion of our product lines, and achieving profitability."
Growing Innovative Product Lines
Innovus Pharmaceuticals continues to build its portfolio of consumer products for men and women's health and respiratory diseases.
On May 1, the company announced the launch of ProstaGorx™ in the United States -- a clinical strength, multi-response prostate supplement that is formulated to effectively maintain good prostate health and prevent future prostate issues. With multiple published clinical trials, the over-the-counter product has been shown to reduce prostate weight, regulate hormones, reduce nocturia, decrease PSA levels, and reduce the progression of prostate cancer.
"ProstaGorx is an excellent complement to our fast growing UriVarx™ product for bladder health and is the sixth product to date to be launched using our acquired Beyond Human sales and marketing platform," said CEO Dr. Bassam Damaj in a recent press release. "We currently believe the product could generate an additional $2 million per year in revenue. This product launch moves us one step closer to achieving our 2017 revenue goals and profitability."
The company's other products already on the market include the Beyond Human Testosterone Booster; Beyond Human Human Growth Agent; Zestra® for female arousal; EjectDelay™ for premature ejaculation; Sensum+® for reduced penile sensitivity; Zestra Glide®; Vesele® for promoting sexual and cognitive health; Androferti® to support male reproductive health; Beyond Human Vision Formula; Beyond Human Lean Green Coffee; and UriVarx™ for bladder health.
Last year, these products generated $4.8 million in revenue, which is up from just $700,000 during FY 2015. The greatly increased gross margins signal growing pricing power and scalable operations. These gains were largely attributable to its Beyond Human marketing and distribution platform , which reaches between 20 million and 30 million customers on a monthly basis through print channels as well as over 2 million online subscribers to the platform's more than 140 websites.
Expanding Footprint & Distribution
Innovus Pharmaceuticals has secured a growing number of patents, distribution agreements, and licensing arrangements around the world that protect its proprietary formulations and set the stage for future expansion into new markets.
Innovus announced a partnership agreement with West-Ward Pharmaceuticals International on May 9, 2017 that will enable Innovus to launch FlutiCare™ under West-Ward's recently approved ANDA application No. 207957. Under the terms of the agreement, Innovus will be the first and only nationally branded over-the-counter product under the ANDA, and one of three nationally branded products with the same formulation. The company expects to generate upwards of $10 million in revenue in the first year from FlutiCare™, following the expected launch in the fourth quarter of 2017.
On May 15, the company announced a significant partnership for its approved product Zestra® in Europe with Densmore for the commercialization of the product in France and Belgium.
On May 18, the company announced that it filed a product license application in Canada for the commercialization of Vesele® as a natural health product to help improve the symptoms of sexual dysfunction. If accepted by Health Canada, the product will be available over-the-counter into 120 capsule bottles without a prescription and marketed through its Beyond Human sales platform that's currently being setup in Canada and indicated that if the product is approved by Health Canada it expects to add an additional $0.5-$1M in revenues from the sale of the product in Canada.
The company made significant progress in FY 2016 in terms of expanding its reach, securing approval to commercialize Zestra® in the European Union, South Korea, and Lebanon. In addition, the company in-licensed Lertal® tablets for the United States and Canada under the brand name AllerVarx™ and launched Zestra® in the United States under its Beyond Human® sales and marketing platform to help grow the product to the next level.
On March 27, the company announced that it received a Notice of Intention to Grant form the European Patent Office to issue a European-wide patent for its Sensum+® product. Shortly after, the company received a CPNP notification from the European Union to commercialize its Zestra Glide® product in all 28 member countries, which brings the total number of approved-to-market products to three - the others being Zestra® and Sensum+®.
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