PR Newswire
MISSISSAUGA, ON, Nov. 14, 2018
MISSISSAUGA, ON, Nov. 14, 2018 /PRNewswire/ - Concordia International Corp. ("Concordia" or the "Company") (TSX: CXR), an international specialty pharmaceutical company focused on becoming a leader in European specialty, off-patent medicines, today announced its financial and operational results for the three and nine months ended September 30, 2018. All financial references are in U.S. dollars ("USD") unless otherwise noted.
"Our third quarter results are consistent with our expectations," said Graeme Duncan, Chief Executive Officer of Concordia. "When combined with our recently completed recapitalization, we believe that the Company is on a path towards stabilization, while laying the foundation for long-term growth."
Consolidated Third Quarter 2018 Financial and Operational Results
Third Quarter 2018 Segment Results
Concordia International segment revenue of $91.9 million for the third quarter of 2018 decreased by $14.7 million, or 14%, compared to second quarter 2018 revenue of $106.7 million.
Approximately $4.6 million of the $14.7 million sequential decline in revenue is the result of foreign exchange arising from the weakening of the Great British Pound ("GBP") against the U.S. dollar. The remaining $10.1 million sequential quarterly decline is attributable to lower sales in the UK market of approximately $6 million, mostly resulting from competition on certain key products, and lower sales in other global markets of approximately $4 million primarily due to timing of shipments.
Concordia International segment revenue for the third quarter of 2018 decreased by $25.7 million, or 22% compared to the corresponding period in 2017. A $25.2 million decrease in revenue was combined with a further decrease of $0.5 million in revenue as a result of the GBP weakening against the USD, when compared to the corresponding period in 2017, given a significant portion of the segment revenues are earned in GBP.
Declines to revenue attributable to key products during the quarter, excluding the impact of foreign currency translation, were a $8.1 million decrease from Liothyronine Sodium; a $1.5 million decrease from Flurbiprofen; a $1.2 decrease from Acetylsalicylic Acid; a $1.2 million decrease from Trazodone; and a $1.1 million decrease from Levothyroxine Sodium. These lower product volumes and revenues are primarily due to ongoing competitive market pressures resulting in market share erosion in the UK market and timing of shipments for certain products in non-UK markets.
The decline in revenue for Liothyronine Sodium is reflective of the impairment charges taken in the second quarter of 2017 on the product rights attributable to Liothyronine Sodium as a result of market competition that had not yet had a significant impact on the third quarter of 2017 reported revenue for Liothyronine Sodium.
These declines to revenue were partially offset by a $0.9 million increase in revenue from Nitrofurantoin; and a $0.8 million increase in revenue from Hydralazine HCL, as a result of product volume increases. The remaining decrease was primarily due to general competitive market pressures across the segment's product portfolio.
Revenue of $311.6 million for the first nine months of 2018 decreased by $40.2 million, or 11%, compared to the corresponding period in 2017. A $61.3 million decrease in revenue was partially offset by a $21.1 million increase in revenue as a result of the GBP strengthening against the USD in the first half of 2018.
Declines to revenue attributable to key products during the year-to-date period, excluding the impact of foreign currency translation, consisted of a $23.2 million decrease from Liothyronine Sodium; a $5.2 million decrease from Trazodone; a $3.1 million decrease from Prednisolone; a $2.9 million decrease from Levothyroxine Sodium; and a $2.7 million decrease from Prochlorperazine Mesilate, due to the competitive pressures described above.
These declines to revenue were partially offset by $6.6 million increased revenue from Nitrofurantoin; and $2.3 million increased revenue from Argipressin, as a result of product volume increases. The remaining decrease was primarily due to general competitive market pressures across the segment's product portfolio.
North America Segment
Concordia North America segment revenue of $35.7 million for the third quarter of 2018 increased by $2.9 million, or 9%, compared to second quarter, 2018 revenue of $32.8 million.
The sequential increase is primarily attributable to timing of shipments to wholesaler partners and lower co-pay utilization on Donnatal® rather than an underlying increase in prescriptions.
Revenue of for the third quarter of 2018 decreased by $1.2 million or 3%, compared to the corresponding period in 2017. The decrease was primarily due to a $2.8 million decrease from Plaquenil® authorized generic as a result of lower product volumes; and a $2.0 million decrease from Donnatal® as a result of additional competitive pressures that have resulted in a loss of market share. In the third quarter of 2018, Donnatal® tablets continued to face pressure from two competitive products. As well, during the second quarter of 2018, the Company became aware of the launch of additional non-FDA approved competitive products to Donnatal® elixir, which has resulted in lower product volumes of the elixir in the third quarter of 2018 compared to the corresponding period in 2017.
These declines in revenue were partially offset by a $1.7 million increase in revenue from Nilandron® as a result of higher product volumes; a $1.3 million increase in revenue from Kapvay®; and a $0.8 million increase in revenue from Orapred®. The remaining decrease was primarily due to general competitive market pressures across the segment's product portfolio.
Revenue of $107.8 million for the year-to-date decreased by $16.4 million or 13% compared to the corresponding period in 2017. The decrease was primarily due to a $9.0 million decrease from Donnatal®; a $3.8 million decrease from Dibenzyline® authorized generic; a $3.5 million decrease from Plaquenil® authorized generic; and a $2.3 million decrease from Lanoxin® authorized generic. These declines in revenue were partially offset by a $3.5 million increase in revenue from Orapred®; a $3.0 million increase in revenue from Dibenzyline®; and a $2.5 million increase in revenue from Zonegran®. The remaining decrease was primarily due to general competitive market pressures across the segment's product portfolio.
Pipeline Update
Consistent with Concordia's prior disclosure, with its leadership and board transition, the Company will continue to evaluate the composition of its pipeline of medicines.
In the third quarter of 2018, Concordia launched one new product.
Concordia also has 27 products that have already been approved or are awaiting approval by the regulators.
In addition, the Company currently has 12 products under development that are anticipated to launch in the next three to five years.
The Company believes that these products include several second-to-market or early-to-market opportunities for difficult-to-make products.
Additionally, Concordia has 10 products identified for potential development.
Therefore, in total, Concordia's current pipeline is now comprised of approximately 49 products.
Over the near term, the Company is not expecting material incremental revenue contributions from its pipeline.
In the longer term, the Company is optimistic about a number of products in its pipeline that could potentially come to market during 2020 through to 2023.
In addition, Concordia intends to continue investing in its pipeline expansion as a key strategic priority going forward.
Consolidated Financial Results
| Three months ended | Nine months ended | ||
(in $000's, except per share data) | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2018 | Sep 30, 2017 |
Revenue | 127,662 | 154,622 | 419,413 | 475,964 |
Gross profit | 86,751 | 108,610 | 282,944 | 335,337 |
Gross profit % | 68% | 70% | 67% | 70% |
Adjusted gross profit (2) | 86,751 | 108,610 | 282,944 | 335,648 |
Adjusted gross profit % (2) | 68% | 70% | 67% | 71% |
Total operating expenses | 135,693 | 99,021 | 384,399 | 1,288,637 |
Operating income (loss) for the period | (48,942) | 9,589 | (101,455) | (953,300) |
| | | | |
Gain on debt and purchase consideration settlement | 1,924,520 | - | 1,931,828 | - |
Income tax expense (recovery) | 6,555 | 3,661 | 3,358 | (28,953) |
Net income (loss) for the period | 1,787,881 | (69,485) | 1,552,233 | (1,158,962) |
| | | | |
Earnings (loss) per share | | | | |
Basic (1) | 147.76 | (407.46) | 370.37 | (6,801.94) |
Diluted (1) | 147.76 | (407.46) | 370.37 Werbung Mehr Nachrichten zur ADVANZ PHARMA Aktie kostenlos abonnieren
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