REDONDO BEACH, CA--(Marketwired - Aug 18, 2017) - SECFilings.com, a leading financial news and information portal offering free real time public filing alerts, announces the publication of an article discussing Innovus Pharmaceuticals Inc. (
Nasal allergies affect about 50 million people in the United States and that figure has been increasing over time, according to the Asthma and Allergy Foundation of America . Sales of U.S. OTC allergy products rose at an average annual rate of 11%, according to a report by the Kline Group , far outstripping the average 2% - 3% growth for the overall OTC drug market. Fluticasone propionate has been a popular option for those suffering from allergies and is the number one active ingredient prescribed by physicians to treat hay fever and stuffy nose. In 2015, GlaxoSmithKline introduced Flonase Allergy Relief, with fluticasone propionate as the active ingredient, to the OTC market and met with tremendous success, further driving the growth of the category as prescription users switched to OTC products.
Near-Term Launch Innovus Pharma recently ordered its first commercial batch of 220,000 FlutiCare™ units scheduled for the fourth quarter of this year. In addition, the company has committed to purchasing multiple batches from its partner, West-Ward Pharmaceuticals, Inc., a subsidiary of Hikma Pharmaceuticals PLC, throughout 2018 and 2019.
"We are very excited about the upcoming commercial launch of our FlutiCare™ product in the United States," said President & CEO Dr. Bassam Damaj in the press release announcing the commercial order. "We have ordered our initial commercial batch of the product, are finalizing our online, Beyond Human®, retail, and wholesale sales and marketing efforts, and are gearing up for a successful launch of FlutiCare™ in the fourth quarter of this year."
For the first time, the company put out their plans for the launch of their drug in the U.S., which includes the following steps:
1. Finalizing agreements with wholesalers, retail stores in which we are a vendor of record and independent pharmacies; 2. Preparing to provide sampling to the top 20% prescribers of fluticasone propionate nasal spray; 3. Creating direct sampling and coupon programs to consumers to continue to build brand awareness; 4. Preparing to launch under its Beyond Human® sales and marketing platform through print and online media; and 5. Preparing to launch through its online platforms including our website, its over 2 million email subscriber lists and Amazon® stores.
Although Innovus is actively working to put the drug on the shelf of retail stores, its best advantage and most lucrative way to sell FlutiCare™ is through the company's robust Beyond Human® sales and marketing platform and strong online presence. The platform has already shown that it can reach millions of potential customers as the sales of their supplements Vesele™, UriVarx™, Sensum+™ and ProstaGorx™ have reached millions of dollars in sales just one year from launch. In addition to the print platform, the company has a very respectable 2M website subscribers to its over 160 websites.
By any measurement this is a very robust online presence. Innovus' ability to connect its print and online presence through a centralized online store and convert calls into sales through its call center is not matched by retail stores or competitors. Another advantage Innovus Pharma has is a monthly autoship program that allows monthly shipping of their products at a lower cost. According to Dr. Damaj in a recent conversation, "The market has shifted from a one bottle purchase to multiple bottles and lower pricing. FlutiCare™ is not a seasonal drug as allergic rhinitis patients use the drug all the time so monthly shipments to their own homes is very appealing, especially if they can save money."
With the company anticipating $3 million in revenue from 220,000 units, the price per bottle works out to just over $13.50. This compares favorably with a number of store brands currently offered in outlets like CVS Pharmacy, Rite-Aid, and Target, with prices ranging from $15 to $21/bottle. Note that all figures reflect regular pricing, and special pricing occurs from time to time.
Listening to the CEO's 2Q 2017 earnings call on Monday and his plans to sample the drug to the top 20% prescribers of the drug made sense as Innovus Pharma would be the only company putting FlutiCare™ in front of both prescribers and patients. Numerous studies published by the National Institutes of Health have shown that physicians will change their prescription habits when a drug is freely available to give to patients.
The projected revenues from the sale of FlutiCare™ are not minimal and will take the company to a different level of revenue. Innovus announced that each batch of FlutiCare™ units is projected to generate upwards of $3 million in gross revenue, which means that the new product should have an important impact on gross revenue in 2017 and between $10-15M for 2018.
Company Value Innovus Pharma trades with a market capitalization of just $15 million, despite strong revenue from existing products and FlutiCare's™ significant long-term potential.
During the second quarter 2017, the company reported revenue that increased 99.2% to $2 million and a net loss that decreased 74.1% to $1.1 million. The increase in revenue and decrease in operating loss mark significant progress in its effort to reach profitability by 2018, while gross margins reached 80% in a sign of a strong business model. FlutiCare's™ upcoming launch could further accelerate this top- and bottom-line performance.
In addition to the strong financial performance, Innovus made tremendous progress expanding its distribution internationally and launching new products on the proven Beyond Human® sales platform. Additionally, the company's licensing agreements for two GRAS-listed OTC compounds for cachexia and muscle growth mark its entrance into the oncology supportive care market.
Investors may want to listen to the replay of the company's second quarter financial results call from Monday, August 14, available for 30 days. To access the replay, dial 1-877-344-7529 domestically or 1-412-317-0088 internationally and reference Conference ID: 10111229.
Innovus Pharma has a long history of exceeding expectations when it comes to over-the-counter products. With its Beyond Human® sales and marketing platform, the company has developed an extremely effective pathway to launch new products. FlutiCare™ is also particularly well-positioned given its past as a prescription allergy treatment, which lends a lot of brand credibility in the space.
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