BUENA, NJ - (BUSINESS WIRE) – IGI Laboratories, Inc. (NYSE MKT: IG), a New Jersey based topical generic drug development and manufacturing company, announced its financial results for the first quarter ended March 31, 2013.
First Quarter 2013 Highlights vs. 2012
- Total revenues of $3.7 million in the first quarter of 2013, an increase of 101% over the same quarter in 2012
- Total revenues in the first quarter of 2013 include $1.4 million of revenue generated from the sale of IGI label generic topical pharmaceutical products
- Revenue from our formulation and manufacturing contract services business increased by 24% in the first quarter of 2013 as compared to the same quarter in 2012
- Announced the purchase of the topical pharmaceutical product econazole nitrate cream 1%
- Gross profit increased to 30.1% in the first quarter of 2013 from 25.4% in the same quarter of 2012
- Filed one Abbreviated Drug Application, or ANDA, with the U.S. Food and Drug Administration (FDA) in the first quarter of 2013
- Net loss was $0.3 million and $0.7 million in the first quarter of 2013 and 2012, respectively
- Net loss included research and development costs of $0.7 million and $0.5 million in the first quarter of 2013 and 2012, respectively
- Announced execution of three year turnkey supply agreement with a total of $3.0 million of minimum purchases over the contract lifespan
IGI’s President and Chief Executive Officer, Jason Grenfell-Gardner, stated, “The launch of our first ever IGI labeled topical pharmaceutical products has enabled us to more than double revenue compared to the first quarter of 2012. We believe that we are one step closer to our mission to become a leading player in the generic topical prescription drug market. At the same time, through the increase in orders from our pharmaceutical partners we were able to grow our formulation and manufacturing contract services revenue 24% over the first quarter of 2012. We believe that our sales strategy to increase revenue and improve our product mix resulted in an increase in gross profit to 30.1% in the first quarter of 2013, from 25.4% in the same period last year.” Mr. Grenfell-Gardner continued, “Our research and development team has filed two ANDAs in 2013, one in the first quarter in January and one in April, which should keep us on track with our plan to file at least six ANDAs in 2013. In addition, we are working on completing the transfer of econazole nitrate cream 1%, which pending FDA approval of our site transfer, will allow us to begin manufacturing another IGI labeled generic pharmaceutical product beginning in the third quarter of 2013. We remain committed to our target to at least double our 2012 total revenue and achieve profitability in 2013.
IGI LABORATORIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended March 31, 2013 and 2012
(in thousands, except shares and per share information)
Three months ended March 31,
|
|
|
2013 |
|
|
2012 |
|
Revenues: |
|
|
|
|
|
|
Product sales, net |
$ |
3,467 |
|
$ |
1,510 |
|
Research and development income |
|
159 |
|
|
308 |
|
Licensing, royalty and other revenue |
|
57 |
|
|
14 |
|
Total revenues |
|
3,683 |
|
|
1,832 |
|
|
|
|
|
|
|
|
Costs and Expenses: |
|
|
|
|
|
|
Cost of sales |
|
2,575 |
|
|
1,366 |
|
Selling, general and administrative expenses |
|
679 |
|
|
659 |
|
Product development and research expenses |
|
658 |
|
|
471 |
|
Total costs and expenses |
|
3,912 |
|
|
2,496 |
|
Operating loss |
|
(229) |
|
|
(664) |
|
Interest expense and other, net |
|
(28) |
|
|
(71) |
|
|
|
|
|
|
|
|
Net loss |
$ |
(257) |
|
$ |
(735) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss per share |
$ |
(0.01) |
|
$ |
(0.02) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock outstanding: |
|
|
|
|
|
|
Basic and diluted |
|
42,933,146 |
|
|
39,500,559 |
IGI LABORATORIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended March 31, 2013 and 2012
(in thousands)
|
|
|
2013 |
|
|
2012 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
Net loss |
$ |
(257) |
|
$ |
(735) |
|
Non-cash expenses |
|
196 |
|
|
237 |
|
Changes in operating assets and liabilities |
|
(1,533) |
|
|
26 |
|
|
|
|
|
|
|
|
Net cash used in operating activities |
|
(1,594) |
|
|
(472) |
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
(1,486) |
|
|
(254) |
|
|
|
|
|
|
|
|
Net cash provided by financing activities |
|
1,190 |
|
|
- |
|
|
|
|
|
|
|
|
Net decrease in cash and cash equivalents |
|
(1,890) |
|
|
(726) |
|
Cash and cash equivalents at beginning of period |
|
2,536 |
|
|
2,914 |
|
Cash and cash equivalents at end of period |
$ |
646 |
|
$ |
2,188 |
IGI LABORATORIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share information)
|
|
|
March 31, |
|
|
December 31, |
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
646 |
|
$ |
2,536 |
|
Accounts receivable, net |
|
3,123 |
|
|
1,577 |
|
Inventories |
|
2,040 |
|
|
1,773 |
|
Prepaid expenses and other receivables |
|
452 |
|
|
253 |
|
Total current assets |
|
6,261 |
|
|
6,139 |
|
Property, plant and equipment, net |
|
2,657 |
|
|
2,691 |
|
Product acquisition costs |
|
1,426 |
|
|
- |
|
Restricted cash, long term |
|
54 |
|
|
54 |
|
License fee, net |
|
275 |
|
|
300 |
|
Debt issuance costs, net |
|
92 |
|
|
100 |
|
Other |
|
155 |
|
|
143 |
|
Total assets |
$ |
10,920 |
|
$ |
9,427 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
$ |
877 |
|
$ |
1,091 |
|
Accrued expenses |
|
1,460 |
|
|
820 |
|
Deferred income, current |
|
127 |
|
|
48 |
|
Capital lease obligation, current |
|
17 |
|
|
17 |
|
Total current liabilities |
|
2,481 |
|
|
1,976 |
|
|
|
|
|
|
|
|
Note payable, bank |
|
2,000 |
|
|
1,000 |
|
Deferred income, long term |
|
18 |
|
|
20 |
|
Capital lease obligation, long term |
|
- |
|
|
4 |
|
Total liabilities |
|
4,499 |
|
|
3,000 |
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: Series A Convertible Preferred stock, liquidation preference - $500,000 at March 31, 2013 and December 31, 2012 |
|
500 |
|
|
500 |
|
Series C Convertible Preferred stock, liquidation preference - $1,783,349 at March 31, 2013 and $1,764,240 at December 31, 2012 |
|
1,517 |
|
|
1,517 |
|
Common stock |
|
451 |
|
|
446 |
|
Additional paid-in capital |
|
47,655 |
|
|
47,409 |
|
Accumulated deficit |
|
(43,702) |
|
|
(43,445) |
|
Total stockholders’ equity |
|
6,421 |
|
|
6,427 |
|
Total liabilities and stockholders' equity |
$ |
10,920 |
|
$ |
9,427 |
* Derived from the audited December 31, 2012 financial statements
