Crescita Therapeutics™ Announces Profitable 2017 Second Quarter Results

Second Quarter Financial Review

Cash

At June 30, 2017, cash and short-term investments were $12.7 million compared to $18.4 million at December 31, 2016 of which $8.6 million was restricted cash.  As discussed above, a portion of the restricted cash has since been used to pay down the Knight loan and the balance has been released and is available to the Company to fund its operations.

Revenues

Total revenue, consisting of product sales, out-licensing and services revenue, for the three and six months ended June 30, 2017 was $4.9 million and $6.9 million compared to $0.1 million and $0.2 million for the three and six months ended June 30, 2016.  The increase in revenue in the current quarter related to the upfront payment of US$2.0 million ($2.7 million) for the U.S. rights to sell and distribute Pliaglis and Flexicaine, as well as product sales of non-prescription skincare products resulting from the INTEGA acquisition. 

Operating Expenses

Total operating expenses for the three and six months ended June 30, 2017 were $4.3 million and $9.5 million compared to $2.4 million and $7.1 million for the three and six months ended June 30, 2016.  The increase in operating expenses related primarily to the inclusion of INTEGA's operations including product costs, as well as costs related to the restructuring of the business, offset by synergies from integration.

Net Income (Loss)

Net income was $0.5 million for the three months ended June 30, 2017 compared to a net loss of $3.1 million in the comparative quarter, primarily resulting from the upfront payment from Taro, offset by the net loss from discontinued operations of $0.7 million for the three months ended June 30, 2016.  Net loss was $2.7 million for the six months ended June 30, 2017 compared to $9.1 million for the six months ended June 30, 2016.  The net loss for the six months ended June 30, 2017 was higher by $4.7 million from continuing operations and $1.7 million from discontinued operations as discussed above.

Share Capital

The number of common shares outstanding as at June 30, 2017 was 13,935,638.

About Crescita Therapeutics Inc.
Crescita (TSX:CTX) is a publicly traded, Canadian commercial dermatology company with a portfolio of non-prescription skincare products for the treatment and care of skin conditions and diseases and their symptoms and prescription drug products for the treatment of pain.  Crescita owns multiple proprietary drug delivery platforms that support the development of patented formulations that can facilitate the delivery of active drugs into or through the skin.  For additional information, please visit www.crescitatherapeutics.com.

Forward-Looking Statements
This Press Release contains "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company's current beliefs, expectations and assumptions regarding the completion of the convertible debenture financing and use of proceeds, the Company's future obligations under the INTEGA purchase agreement, the Company's ability to comply with the terms of the amended Knight loan, the future of its business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company's control. Crescita's actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, readers should not rely on any of these forward-looking statements. Important factors that could cause Crescita's actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the conditions to the convertible debenture financing, the risk factors included in Crescita's most recent Annual Information Form dated March 29, 2017 under the heading "Risks Factors", and as described from time to time in the reports and disclosure documents filed by Crescita with Canadian securities regulatory agencies and commissions. These and other factors should be considered carefully and readers should not place undue reliance on Crescita's forward-looking statements. As a result of the foregoing and other factors, no assurance can be given as to any such future results, levels of activity or achievements and none of Crescita or any other person assumes responsibility for the accuracy and completeness of these forward-looking statements.

Any forward-looking statement made by the Company in this Press Release is based only on information currently available to it and speaks only as of the date on which it is made. Except as required by applicable securities laws, Crescita undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

SOURCE Crescita Therapeutics Inc.