Eagle Pharmaceuticals (EGRX) Misses Q1 EPS by 16c, Miss on Revenues

Eagle Pharmaceuticals (NASDAQ: EGRX) reported Q1 EPS of $0.53, $0.16 worse than the analyst estimate of $0.69. Revenue for the quarter came in at $46.63 million versus the consensus estimate of $48.88 million.

Financial Highlights:

First Quarter 2018

• Total revenue for the first quarter of 2018 was $46.6 million, compared to $76.8 million in the first quarter of 2017 (which included $25.0 million in license and other income);
• Q1 2018 income before income tax provision was $1.7 million compared to $32.7 million in Q1 2017;
• Q1 2018 net income was $2.6 million, or $0.18 per basic and $0.17 per diluted share, compared to net income of $22.9 million, or $1.50 per basic and $1.42 per diluted share in Q1 2017;
• Q1 2018 Adjusted Non-GAAP net income was $8.2 million, or $0.55 per basic and $0.53 per diluted share, compared to Adjusted Non-GAAP net income of $26.5 million, or $1.74 per basic and $1.64 per diluted share in Q1 2017;
• During Q1 2018, Eagle purchased an additional $7 million of Eagle common stock as part of its share buyback program; since August 2016, Eagle has repurchased $88 million of Eagle common stock;
• Settled $48 million in potential Arsia milestone obligations in exchange for $15 million in cash; and
• Cash and cash equivalents were $95.7 million, accounts receivable was $53.4 million, and debt was $48.8 million as of March 31, 2018.
• Reiterating 2018 Expense Guidance:
  • R&D expense is expected to be in the range of $46 - $50 million ($40 – $44 million on a non-GAAP basis)
  • SG&A expense is expected to be in the range of $61 - $64 million ($44 – $47 million on a non-GAAP basis)

“We expect multiple catalysts to drive growth and build long-term value at Eagle. This includes expanding our existing bendamustine and RYANODEX portfolios by taking advantage of product and label expansion opportunities, as well as protecting the franchises with our robust patent estate and exclusivity. We believe that advancing several of our late-stage opportunities targeting attractive new markets will open additional paths for growth and profitability for years to come,” stated Scott Tarriff, Chief Executive Officer of Eagle Pharmaceuticals.

“We have decided to launch our tentatively approved bendamustine hydrochloride 500ml solution, subject to receipt of final approval from the FDA, which we have recently requested. We believe that we are uniquely positioned to fill a need with the segment of the population that requires an alternative to TREANDA®, but at a lower price point to BENDEKA. Over time, this would provide us with more control over our revenue growth and allow us to better manage our business. We continue to believe BENDEKA is a tremendous product with many patient and caregiver benefits. Teva is doing a very good job for us and we are pleased with their accomplishments. We view the launch of a “big bag” formulation as complementary, enabling us to provide additional value to a cost-conscious segment of the market, while at the same time allowing Eagle to increase profitability,” added Tarriff.

“We also look forward to advancing RYANODEX for EHS with another clinical study at the Hajj in August of this year, adding to the positive data we have already collected. Our fulvestrant study is now fully underway with results anticipated later this year. In addition, with what we believe is a first-to-file ANDA submission for vasopressin accepted for filing, as well as our progress on a second ANDA product, we are excited about these added opportunities to create value for patients and shareholders,” concluded Tarriff.

For earnings history and earnings-related data on Eagle Pharmaceuticals (EGRX) click here.

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