Egalet Corp (NASDAQ:EGLT)
Egalet Corp (NASDAQ:EGLT) had a disappointing quarter as its Q1, 2017 net loss widened compared to the same period last year. However net revenue doubled thanks to an increase in sales for its lead products. The pain maker also made important developments in its pipeline of drugs having achieved key regulatory approval for one of its candidate drug for pain management.
Q1 Financial Results
Egalet Corp (NASDAQ:EGLT)’s total net revenue in the quarter doubled to $5.4 million compared to $2.7 million as of the same period last year. Net product sales totaled $5.4 million compared to $2.6 million as of Q1 2016. Collaboration revenue, on the other hand, came in at $100,000.
The cost of sales in the quarter totaled $1.3 million, compared to $882,000 as of last year. The cost of sales in the quarter included the cost of inventory produced and dispensed to patients. General and administrative expenses increased to $8.5 million from $6 million. The increase was mainly as a result of an increase in employee salaries as well as benefits in professional and administrative fees.
Research and development expenses came in at $6.5 million from $6.1 million as of the end of Q1 2016. The increase in development costs of Egalet-002 and employee salary benefits are seen as a major cause of the increase. However this was offset by a decrease in developmental costs for OXAYDO and ARYMO ER.
Net revenue doubling could not stop Egalet from posting a net loss of $25.4 million or $1.02 a share, compared to a net loss of $18.5 million as of last year Q1.
During the quarter Egalet Corp (NASDAQ:EGLT) received the Novel Treatment designation from the U.S. Food & Drug Administration (FDA) for ARYMO ER – a severe pain management therapy that requires round the clock opioid treatment.
The pain medicine maker also expanded and deployed two teams of territory managers. One of the teams has been mandated to promote SPRIX, a nasal spray, with the other will be working on promoting OXAYDO.
Egalet Corp (NASDAQ:EGLT) also grew its SPRIX Nasal Spray and OXAYDO prescriptions by 14% in the quarter having also added over 550 new SPRIX prescribers and 400 new OXAYDO prescribers. The drug maker also received an FDA acceptance of OXAYDO in 10 and 15mg dosage.
“During the first quarter we saw growth continue with both SPRIX and OXAYDO and we believe our new sales force structure that was deployed at the end of the quarter should maximize the potential opportunity for all three of our products,” said Chief Executive Officer Bob Radie
Egalet Corp (NASDAQ:EGLT) stock was up by 10.18% in Friday trading session ending the week at highs of $3.03 a share
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About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.