RALEIGH, N.C., May 15, 2017 /PRNewswire/ -- BioDelivery
Sciences International, Inc. (BDSI) today reported financial results for the first quarter ended March 31,
2017 and provided a corporate update.
"We are very pleased with the financial results of the first quarter, particularly what we were able to accomplish with
BELBUCA® in our hands," said Dr. Mark A. Sirgo, President and Chief Executive Officer
of BDSI. "We completed a swift and effective transition of BELBUCA following the early January close of the transaction
with Endo Pharmaceuticals (Endo), and by the end of the quarter, we were generating sufficient product revenue to offset the
expense of our commercial business unit. In fact, we recorded the highest net sales revenue for BELBUCA since the product
was launched over a year ago, and albeit early in the relaunch, it appears our focused selling approach and commercial strategy
are working. These efforts led to first quarter sales of $4.6 million in comparison to what
would have been approximately $640 thousand in royalties had we not reacquired the product.
Importantly, the impact of the BELBUCA license termination and reacquisition has resulted in $43.3
million in value that is added to BDSI's balance sheet. This gain in value arises out of the very favorable terms on which
BDSI reacquired BELBUCA. In addition, we are vigorously pursuing potential licensing agreements and remain focused on
securing up to two ex-U.S. partnerships for BELBUCA in the coming months."
"As for BUNAVAIL®, we will continue to focus our efforts on our current prescribers while working to secure new
managed contracts where BUNAVAIL is in a favorable position. BUNAVAIL generated $3.2 million
in revenue for the quarter."
"Finally, to support our currently planned activities into the second half of 2018, we recently completed a debt financing for
a total of up to $75 million, $45 million of which was funded in
February 2017. We believe this has allowed us to take the appropriate steps, in a non-dilutive fashion, to strengthen our
balance sheet, which allows us to now put our full attention on growing the business."
First Quarter 2017 Financial Highlights
Net revenue for the first quarter ended March 31, 2017, was approximately $29.5 million. Total net sales of BELBUCA (buprenorphine) buccal film (CIII) and BUNAVAIL (buprenorphine
and naloxone) buccal film (CIII) in the first quarter were $4.6 million and $3.2 million, respectively. This compares to BUNAVAIL total net revenue of approximately $2.1 million in the first quarter of 2016. The $20 million of contract
revenues recorded in the three months ended March 31, 2017, is related to the release of deferred
revenue for BELBUCA upon the reacquisition from Endo. This deferred revenue was part of the $50 million NDA approval milestone payment received by BDSI from Endo. The $20
million had been deferred because it was tied to the entry of any generic competition between 2020 and 2027.
Total operating expenses for the first quarter ended March 31, 2017, were $15.9 million, compared to $18.4 million in the first quarter of 2016, with the
reduction in operating expenses being attributable to reduced research and development spending.
Net income for the first quarter ended March 31, 2017 was $48.3
million, or $0.89 per basic and $0.87 per diluted share,
compared to a net loss of $18.7 million, or ($0.36) per basic and
diluted share, in the same period of 2016. The increase in net income was attributable principally to the impact of the
valuation of the licensing and distribution agreement for BELBUCA and recognition of deferred revenue associated with the license
termination and reacquisition of BELBUCA.
BDSI had cash and cash equivalents of approximately $35.2 million at March 31, 2017, including net proceeds of $13.7 million from the initial funding
under the CRG facility in February 2017. This compares to cash and cash equivalents of approximately $32.0
million at December 31, 2016.
BDSI also began recognizing revenue using the sell-in method, which records sales based on product sold to wholesalers versus
sell-through method previously. As such, we recognized $1.7 million of the $3.2 million of BUNAVAIL sales for product shipped to wholesalers prior to January
1, 2017.
Recent Company Milestones
Commercial
- Closed on an agreement with Endo Pharmaceuticals, terminating Endo's licensing of rights for BELBUCA and returning
worldwide rights to the product back to BDSI.
- Generated total product revenue of $9.5 million in the first quarter of 2017
-
- Achieved the highest net sales level for BELBUCA since the product was launched.
- Achieved profitability in commercial business unit in the month of March, although not full enterprise
profitability.
Regulatory
- Received approval from the U.S. Food and Drug Administration's (FDA) for a Supplemental New Drug Application (sNDA)
expanding the indication for BUNAVAIL to include induction of buprenorphine treatment for opioid dependence. Induction is the
first step to assist a patient in discontinuing or markedly reducing their use of opioids.
- Received FDA acceptance of the Investigational New Drug (IND) for Sustained Release Buprenorphine Injection, allowing
initiation of the clinical development program.
Intellectual Property
- Strengthened the intellectual property surrounding BELBUCA, BUNAVAIL and ONSOLIS®, with the granting of two new patents
listed in FDA's Orange Book
Corporate
- Secured a $75 million senior credit facility with affiliates of CRG LP, a healthcare-focused
investment firm, to retire existing credit facility and provide additional working capital into the second half of 2018.
Key Anticipated 2017 Milestones
- Opportunity to execute up to two commercial transactions for ex-U.S. rights to BELBUCA in the coming months.
- Anticipated approval of BELBUCA in Canada in June 2017.
- Initiation of, and initial results from, an ascending, single dose pharmacokinetic study of sustained release buprenorphine
injection. Results from the first dosing cohort expected to be available in the fourth quarter.
- Planned regulatory submission later this year to qualify the new manufacturer for ONSOLIS (product licensed to Collegium
Pharmaceutical) and, if approved, allows the product to return to market early in the first half of 2018.
Conference Call & Webcast
Monday, May 15 @ 4:30 PM Eastern Time
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Domestic:
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888-437-9364
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International:
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719-325-2133
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Passcode:
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7698100
|
Webcast:
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http://public.viavid.com/index.php?id=124144
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Replays available through May 29th:
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Domestic:
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844-512-2921
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International:
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412-317-6671
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Conference ID:
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7698100
|
About BioDelivery Sciences International
BioDelivery Sciences International, Inc. (NASDAQ: BDSI) is a specialty pharmaceutical company with a focus in the areas of
pain management and addiction medicine. BDSI is utilizing its novel and proprietary BioErodible MucoAdhesive
(BEMA®) technology and other drug delivery technologies to develop and commercialize, either on its own or in
partnership with third parties, new applications of proven therapies aimed at addressing important unmet medical needs.
BDSI's development strategy focuses on the utilization of the FDA's 505(b)(2) approval process. This regulatory pathway
creates the potential for more timely and efficient approval of new formulations of previously approved therapeutics.
BDSI's area of focus is the development and commercialization of products in the areas of pain management and addiction. These
are areas where BDSI believes its drug delivery technologies and products can best be applied to address critical unmet medical
needs. BDSI's marketed products and those in development address serious and debilitating conditions such as breakthrough
cancer pain, chronic pain, painful diabetic neuropathy and opioid dependence. BDSI's headquarters is in Raleigh, North
Carolina.
BUNAVAIL® (buprenorphine and naloxone) buccal film (CIII) and BELBUCA® (buprenorphine) buccal film
(CIII) are marketed in the U.S. by BioDelivery Sciences. ONSOLIS ® (fentanyl buccal soluble film) (CII) is
licensed in the U.S. to Collegium Pharmaceutical pursuant to the U.S. licensing and development agreement between BDSI and
Collegium. For full prescribing information and important safety information on BDSI products, including BOXED WARNINGS for
ONSOLIS, please visit www.bdsi.com where the
Company promptly posts press releases, SEC filings and other important information or contact the Company at (800)
469-0261. For full prescribing and safety information on BELBUCA, please visit www.belbuca.com and for full prescribing and safety information on BUNAVAIL,
please visit www.bunavail.com.
Cautionary Note on Forward-Looking Statements
This press release and any statements of employees, representatives and partners of BioDelivery Sciences International, Inc.
(the "Company") related thereto (including, without limitation, at the presentation described herein) contain, or may contain,
among other things, certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of
1995. Such forward-looking statements involve significant risks and uncertainties. Such statements may include,
without limitation, statements with respect to the Company's plans, objectives, projections, expectations and intentions and
other statements identified by words such as "projects," "may," "will," "could," "would," "should," "believes," "expects,"
"anticipates," "estimates," "intends," "plans," "potential" or similar expressions. These statements are based upon the
current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties, including
those detailed in the Company's filings with the Securities and Exchange Commission. Actual results (including, without
limitation, the results of commercialization efforts for the Company's approved products and the clinical trials for, and
regulatory review of, the Company's products in development) may differ significantly from those set forth in the forward-looking
statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on
various factors (many of which are beyond the Company's control). The Company undertakes no obligation to publicly update
any forward-looking statements, whether as a result of new information, future presentations or otherwise, except as required by
applicable law.
BDSI®, BEMA®, ONSOLIS®, BUNAVAIL® and BELBUCA® are registered
trademarks of BioDelivery Sciences International, Inc. The BioDelivery Sciences, BUNAVAIL and BELBUCA logos are trademarks
owned by BioDelivery Sciences International, Inc. All other trademarks and tradenames are owned by their respective
owners.
© 2017 BioDelivery Sciences International, Inc. All rights reserved.
BIODELIVERY SCIENCES INTERNATIONAL, INC. AND
SUBSIDIARIES
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(U.S. dollars, in thousands, except share and per share
amounts)
|
(Unaudited)
|
|
March 31,
|
December 31,
|
|
2017
|
2016
|
ASSETS
|
|
|
Current assets:
|
|
|
Cash and cash equivalents
|
$ 35,219
|
$ 32,019
|
Accounts receivable
|
7,102
|
3,569
|
Inventory
|
8,145
|
3,368
|
Prepaid expenses and other current
assets
|
3,942
|
4,136
|
Total current assets
|
54,408
|
43,092
|
|
|
|
Property and equipment, net
|
4,549
|
4,230
|
Goodwill
|
2,715
|
2,715
|
BELBUCA license and distribution rights intangible
|
45,000
|
-
|
Other intangible assets, net
|
918
|
2,285
|
Total assets
|
$ 107,590
|
$ 52,322
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
|
|
|
Current liabilities:
|
|
|
Accounts payable and accrued
liabilities
|
$ 30,521
|
$ 18,174
|
Deferred revenue, current
|
-
|
1,716
|
Total current liabilities
|
30,521
|
19,890
|
|
|
|
Notes payable, current maturities, net
|
34,800
|
29,272
|
Deferred revenue, long term
|
-
|
20,000
|
Other long-term liabilities
|
4,050
|
825
|
Total liabilities
|
69,371
|
69,987
|
|
|
|
Commitments and contingencies (Notes 11 and 14)
|
|
|
|
|
|
Stockholders' equity:
|
|
|
Preferred Stock, $.001 par value; 5,000,000 shares authorized; 2,093,155
and 2,093,155
shares of Series A Non-Voting Convertible Preferred Stock outstanding at
both March 31,
2017 and December 31, 2016 and 2015, respectively.
|
2
|
2
|
Common Stock, $.001 par value; 75,000,000 shares authorized; 55,341,463 and
54,133,511
shares issued; 55,325,972 and 54,118,020 shares outstanding at March 31,
2017 and
December 31, 2016, respectively.
|
55
|
54
|
Additional paid-in capital
|
300,225
|
292,667
|
Treasury stock, at cost, 15,491 shares
|
(47)
|
(47)
|
Accumulated deficit
|
(262,016)
|
(310,341)
|
Total stockholders' equity (deficit)
|
38,219
|
(17,665)
|
|
|
|
Total liabilities and stockholders' equity (deficit)
|
$ 107,590
|
$ 52,322
|
BIODELIVERY SCIENCES INTERNATIONAL, INC. AND
SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(U.S. DOLLARS, IN THOUSANDS, EXCEPT SHARE AND PER SHARE
AMOUNTS)
|
(Unaudited)
|
|
|
|
|
Three Months Ended March 31,
|
|
2017
|
2016
|
Revenues:
|
|
|
Product sales
|
$
7,795
|
$
2,102
|
Product royalty revenues
|
1,661
|
934
|
Research and development reimbursements
|
22
|
4
|
Contract revenue
|
20,000
|
-
|
Total Revenues:
|
29,478
|
3,040
|
|
|
|
Cost of sales
|
5,645
|
2,550
|
|
|
|
Expenses:
|
|
|
Research and development:
|
2,671
|
5,377
|
Sales, general and administrative
|
13,259
|
13,055
|
Total
Expenses:
|
15,930
|
18,432
|
|
|
|
Income (loss) from operations
|
7,903
|
(17,942)
|
Interest expense, net
|
(2,886)
|
(778)
|
Other expense, net
|
-
|
(13)
|
Bargain purchase gain
|
27,336
|
-
|
Income (loss)
|
$ 32,353
|
$ (18,733)
|
|
|
|
Income tax benefit
|
15,972
|
$
-
|
Net income (loss) attributable to common stockholders
|
$ 48,325
|
$ (18,733)
|
|
|
|
Basic:
|
|
|
Basic income (loss) per share
|
$
0.59
|
$
(0.36)
|
Weighted average common stock shares outstanding
|
54,519,574
|
52,230,648
|
|
|
|
Diluted:
|
|
|
Diluted income (loss) per share
|
$
0.58
|
$
(0.36)
|
Weighted average common stock shares outstanding
|
55,431,628
|
52,230,648
|
|
BIODELIVERY SCIENCES INTERNATIONAL, INC. AND
SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(U.S. DOLLARS, IN THOUSANDS)
|
|
(Unaudited)
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2017
|
2016
|
Operating activities:
|
|
|
|
Net income (loss)
|
$ 48,325
|
$ (18,733)
|
|
|
Depreciation
|
111
|
86
|
|
|
Accretion of debt discount and loan costs
|
1,040
|
99
|
|
|
Amortization of Intangible Assets
|
1,369
|
243
|
|
|
Stock-based compensation expense
|
3,070
|
4,111
|
|
|
Deferred income taxes
|
(15,972)
|
-
|
|
|
Bargain purchase gain
|
(27,336)
|
-
|
|
Changes in assets and liabilities:
|
|
|
|
|
Accounts receivable
|
(3,531)
|
356
|
|
|
Inventories, net of effect of acquisition
|
633
|
(2,263)
|
|
|
Prepaid expenses and other assets
|
194
|
118
|
|
|
Accounts payable and accrued expenses, net of effect of
acquisition
|
4,811
|
(438)
|
|
|
Deferred Revenue
|
(21,716)
|
(235)
|
|
Net cash flows from operating activities
|
(9,002)
|
(16,656)
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
Purchase of equipment
|
-
|
(236)
|
|
Net cash flows from investing activities
|
-
|
(236)
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
Proceeds from notes payable
|
45,000
|
-
|
|
|
Payment of notes payable
|
(30,000)
|
-
|
|
|
Payment of deferred financing fees
|
(2,798)
|
-
|
|
|
Equity financing costs
|
-
|
40
|
|
|
Proceeds from exercise of stock options
|
-
|
225
|
|
|
Proceeds form issuance of common stock
|
-
|
2,460
|
|
Net cash flows from financing activities
|
12,202
|
2,725
|
Net change in cash and cash equivalents
|
3,200
|
(14,167)
|
Cash and cash equivalents at beginning of year
|
32,019
|
83,560
|
Cash and cash equivalents at end of year
|
$ 35,219
|
$ 69,392
|
Cash paid for interest
|
$
946
|
$
679
|
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/biodelivery-sciences-reports-first-quarter-2017-financial-results-and-provides-corporate-update-300457765.html
SOURCE BioDelivery Sciences International, Inc.