EWING, N.J., Nov. 05, 2019 (GLOBE NEWSWIRE) -- Antares Pharma, Inc. (NASDAQ: ATRS) today reported operating and financial results for the third quarter ended September 30, 2019. The Company reported revenue of $34.3 million and earnings per share of $0.01 for the quarter ended September 30, 2019. The Company also reported record nine-month year-to-date revenue of $86.0 million.
“I am extremely pleased to report another quarter of record revenue driven by increased sales of our flagship product XYOSTED, and strong demand for our partnered products, led by the rapid growth of Teva’s generic EpiPen. Another historic milestone for Antares today was the recognition of the first profit from ongoing operations in the Company’s history.” said Robert F. Apple, President and Chief Executive Officer of the Company. “While our commercial organization is executing on the XYOSTED launch plan, we continue to make progress on our strategy to drive top-line revenue growth derived from a diverse mix of proprietary and partnered product revenue. As a result of the growing demand for our products and devices, we are once again revising upward our full-year 2019 revenue guidance to a range of $115.0 to $120.0 million.”
Third Quarter 2019 and Recent Highlights
- Reported third quarter 2019 revenue of $34.3 million, an increase of 92% compared to the same period last year. Generated third quarter product revenue of $24.7 million, an increase of 113% compared to the same period last year. Third quarter royalty revenue was $8.4 million as compared to $3.7 million reported in the same period last year, a 126% increase. Cash and cash equivalents were $41.9 million at September 30, 2019, as compared to $40.2 million at June 30, 2019.
- Reported third quarter 2019 earnings per share of $0.01. This represents the Company’s first quarterly income from ongoing operations.
- On October 28, 2019, we received the final $2.5 million payment from Ferring Pharmaceuticals in connection with the previously announced sale of the ZOMAJET™ needle-free delivery system. The gain on the sale of the needle free product line was previously recorded in the fourth quarter of 2018.
- Announced two poster presentations at the 20th Annual Fall Scientific Meeting of the Sexual Medicine Society of America.
- Announced that our partner Teva Pharmaceuticals launched a generic equivalent of the EpiPen Jr®. Teva’s generic equivalent of the EpiPen® and the EpiPen Jr® utilize the Antares Pharma VIBEX® device.
Third Quarter and Year-to-Date Financial Results
Total revenue represents revenue generated from product sales, development activities and royalties. Total revenue was $34.3 million for the three months ended September 30, 2019, compared to $17.9 million for the comparable period in 2018, a 92% increase. For the nine months ended September 30, 2019, total revenue was $86.0 million, compared to $44.7 million for the comparable period in 2018, also a 92% increase.
Product sales represent sales of our proprietary products and devices or device components to our partners. Product sales were $24.7 million for the three months ended September 30, 2019, compared to $11.6 million for the comparable period in 2018, a 113% increase. For the nine month period ended September 30, 2019, product sales were $63.6 million, compared to $33.6 million for the comparable period in 2018, an 89% increase.
Sales of our proprietary products XYOSTED® and OTREXUP® generated revenue of $11.5 million and $25.2 million for the three and nine months ended September 30, 2019, respectively, as compared to $4.1 million and $11.8 million for the three and nine months ended September 30, 2018, respectively. The increase in proprietary product sales for the three and nine months ended September 30, 2019 as compared to the three and nine months ended September 30, 2018 was principally attributable to sales of XYOSTED®, which was launched in late 2018.
We sell devices, components and fully assembled and packaged product to our partners Teva, AMAG and Ferring. Partnered product sales were $13.2 million and $7.5 million for the three months ended September 30, 2019 and 2018, respectively, and $38.4 million and $21.8 million for the nine months ended September 30, 2019 and 2018, respectively. The increase in sales of partnered products for the three and nine months ended September 30, 2019 as compared to the same period in 2018 is primarily attributable to sales of auto injector devices to Teva for use with their Epinephrine Injection USP. With the final Ferring payment received, we will no longer manufacture and supply needle free devices.
Licensing and development revenue includes license fees received from partners for the right to use our intellectual property and amounts earned in joint development arrangements with partners under which we perform development activities or develop new products on their behalf. Licensing and development revenue was $1.2 million and $4.4 million for the three and nine month periods ended September 30, 2019, respectively, compared to $2.6 million and $5.6 million for the comparable periods in 2018, respectively. Licensing and development revenue for the three and nine month periods was primarily from Teva teriparatide pen and Pfizer rescue pen development programs.
Royalties are recognized based on in-market sales of products sold by our partners. Royalty revenue was $8.4 million for the three months ended September 30, 2019 compared to $3.7 million for the same period in 2018, a 126% increase. For the nine month period ended September 30, 2019, royalty revenue was $18.1 million, compared to $5.5 million for the comparable period in 2018, a 230% increase. The significant increases in royalty revenue for the three and nine month periods were primarily attributable to royalties recognized from Teva on their net sales of Epinephrine Injection USP and from AMAG on their net sales of the Makena® subcutaneous auto injector.
Operating expenses were $19.2 million for the third quarter of 2019 compared to $11.9 million in the comparable period of 2018. Total operating expenses for the nine months ended September 30, 2019 were $54.2 million as compared to $34.2 million for the comparable period in 2018. The increase in operating expenses for the three and nine month periods of 2019 was primarily attributable to additional sales and marketing expenses associated with the launch of XYOSTED®.
Net income was $1.0 million for the third quarter of 2019, compared to a ($1.9) million net loss in the comparable period in 2018, and a ($6.7) million loss for the nine months ended September 30, 2019 compared to ($12.6) million net loss in the comparable period of 2018, a reduction of 47%. Net income per share was $0.01 and net loss per share was ($0.04) for the three and nine month periods ended September 30, 2019, respectively, and net loss per share was ($0.01) and ($0.08) for the comparable periods in 2018, respectively.
At September 30, 2019, cash and cash equivalents were $41.9 million compared to $27.9 million at December 31, 2018. During the second quarter of 2019, the Company amended the existing loan and security agreement with Hercules Capital and borrowed an additional $15 million upon execution of the agreement.
2019 Financial Guidance
The Company is raising full year 2019 revenue guidance to a range of $115.0 million to $120.0 million, from a previous range of $100.0 million to $110.0 million.
About Antares Pharma
Antares Pharma, Inc. is a combination drug device company focused primarily on the development and commercialization of self-administered parenteral pharmaceutical products using advanced drug delivery auto injector technology. The Company has a portfolio of proprietary and partnered commercial products with several product candidates in various stages of development, as well as significant strategic alliances with industry leading pharmaceutical companies including Teva Pharmaceutical Industries, Ltd. (Teva), AMAG Pharmaceuticals, Inc. and Pfizer Inc. (Pfizer). Antares Pharma’s proprietary products include XYOSTED® (testosterone enanthate) injection, OTREXUP® (methotrexate) injection for subcutaneous use and Sumatriptan Injection USP, which is distributed by Teva.
