Core Insights - Assertio (ASRT) reported a quarterly loss of $0.14 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.06, marking an earnings surprise of -133.33% [1] - The company's revenues for the quarter ended March 2025 were $26.49 million, missing the Zacks Consensus Estimate by 5.23% and down from $32.45 million a year ago [2] - Assertio shares have declined approximately 30% year-to-date, contrasting with the S&P 500's decline of -3.8% [3] Financial Performance - Over the last four quarters, Assertio has surpassed consensus EPS estimates only once [2] - The current consensus EPS estimate for the upcoming quarter is -$0.06 on revenues of $27.54 million, and for the current fiscal year, it is -$0.12 on revenues of $116.78 million [7] Market Outlook - The estimate revisions trend for Assertio is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] - The Medical - Drugs industry, to which Assertio belongs, is ranked in the top 27% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Financial Data and Key Metrics Changes - In Q1 2025, net product sales were $26 million, slightly ahead of expectations, compared to $31.9 million in the prior year quarter [6][15] - Gross margin increased to 70% from 65% a year ago, although the prior year's gross margin was 78% when excluding inventory step-up [17] - GAAP net income for Q1 was a loss of $13.5 million, compared to a loss of $4.5 million in the prior year [19] - Adjusted EBITDA for Q1 was $200,000, down from $7.4 million in the prior year quarter [19] Business Line Data and Key Metrics Changes - ROLVOIDON sales were stable, with strong demand expected to continue [6][7] - SYMPAZAN prescriptions increased by 6.5% year over year, indicating a positive trend [7] - Indocin sales were $5.5 million, down from $8.7 million in the prior year due to generic competition [16] Market Data and Key Metrics Changes - The company is focusing on expanding payer coverage, having recently strengthened relationships with Cigna [6][10] - The primary business for ROLVOIDON is in community oncology Medicare Part B, with plans to expand into hospital settings [31] Company Strategy and Development Direction - The company is in a transformation phase aimed at reducing legal exposure, simplifying corporate structure, and prioritizing growth investments [10][11] - The growth phase is expected to begin in 2026, with a focus on becoming a leading specialty pharma company [10][14] - The company plans to divest non-core assets to reallocate resources towards growth [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the full year net product sales and adjusted EBITDA outlook [6][21] - The company is optimistic about ongoing strategic conversations that may enhance its commercial portfolio [46] - Management does not foresee immediate risks from tariffs or drug pricing changes, given current inventory levels [59][61] Other Important Information - Cash and investments as of March 31, 2025, totaled $87.3 million, down from $100.1 million at the end of 2024 [19] - The company has settled multiple legal matters, which is expected to reduce legal costs moving forward [11][12] Q&A Session Summary Question: Was there any value movement regarding the opioid litigation matters? - Management indicated that there was nominal value received in the settlement [23] Question: How should cash be used to bring down accrued liabilities? - Management expects the use of cash to occur relatively evenly throughout the year [25] Question: Any updates on same day dosing and NCCN? - Management is executing a twelve-month strategy and hopes for publication in a peer-reviewed journal by mid-summer [27] Question: Progress on expanding Rovodon into hospital settings? - The strategy involves building payer coverage to unlock commercial channels and hospital access [32] Question: Why not adjust the adjusted EBITDA guidance down after Q1 results? - Management believes there are still too many variables to adjust the guidance down at this time [34] Question: Expectations for Indocin's generic competition? - Management anticipates two more generics entering the market in 2025, which will impact revenue [41] Question: Any updates on strategic business development? - Management is optimistic about ongoing positive conversations for potential growth opportunities [46] Question: Impact of tariffs and drug pricing changes? - Management does not foresee immediate risks from tariffs or drug pricing changes [59][61]

Financial Data and Key Metrics Changes - In Q1 2025, net product sales were $26 million, slightly ahead of expectations, compared to $31.9 million in the prior year quarter [5][13] - Adjusted EBITDA for Q1 was $200,000, down from $7.4 million in the prior year quarter, primarily due to lower net sales and gross margin [16] - GAAP net income for Q1 was a loss of $13.5 million, compared to a loss of $4.5 million in the prior year [16] Business Line Data and Key Metrics Changes - ROLVOIDON sales were $13.1 million, down from $14.5 million in the prior year, impacted by lower pricing but partially offset by higher volume [13] - SYMPAZAN sales decreased to $2.2 million from $2.6 million, affected by pricing and volume [14] - Indocin net product sales were $5.5 million, down from $8.7 million, due to generic competition [13] Market Data and Key Metrics Changes - The demand for ROLVOIDON remains strong, with expectations for net sales to continue increasing throughout the year [6] - The promotional strategy for SYMPAZAN has shown effectiveness, with total prescriptions up 6.5% year over year [6] Company Strategy and Development Direction - The company is in the transformation phase of its three-phase strategy, focusing on reducing legal exposure, simplifying corporate structure, prioritizing growth investments, divesting non-core assets, and leveraging its balance sheet for strategic transactions [8][9] - The growth phase is expected to begin in 2026, aiming to establish the company as a leading specialty pharma entity [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sustainable near-term growth and increasing long-term value, despite challenges from generic competition and pricing pressures [18] - The company is optimistic about ongoing conversations for strategic transactions that could enhance its business [44] Other Important Information - The company has settled multiple legal matters, including significant lawsuits, which is expected to reduce legal costs and refocus resources on business operations [9][10] - As of March 31, 2025, cash and investments totaled $87.3 million, down from $100.1 million at the end of 2024 [16] Q&A Session Summary Question: Was there any value movement regarding the opioid litigation matters? - The company received nominal value in the settlement [20] Question: How should cash be used to bring down accrued liabilities? - The company expects to manage this relatively evenly throughout the year, primarily driven by ROLVOIDON's ASP-based pricing [21] Question: Any updates on same-day dosing progress with NCCN? - The company is on track for a publication in a peer-reviewed journal and plans to approach NCCN for inclusion in guidelines for 2026 [23][24] Question: Progress on expanding ROLVOIDON into the hospital setting? - The company is focusing on building payer coverage to unlock commercial channels and penetrate hospitals [29] Question: Why maintain the adjusted EBITDA guidance despite Q1 results? - The company believes there are still too many variables to adjust the guidance down at this time [30] Question: Expectations for Indocin's generic competition? - The company anticipates two more generics entering the market this year, which will impact revenue [39] Question: Any updates on strategic business development opportunities? - The company is optimistic about ongoing positive conversations for potential strategic transactions in 2025 [44] Question: Impact of tariffs and drug pricing changes? - The company does not foresee immediate risks from tariffs or drug pricing changes, as it primarily sells within the U.S. [57][59] Question: Confirmation of revenue guidance post-divestiture? - The company confirmed it is maintaining its revenue guidance of $108 million to $122 million [61]

Financial Performance - ROLVEDON net product sales decreased by $1.4 million from $14.5 million in Q1 2024 to $13.1 million in Q1 2025, primarily due to lower net pricing, partially offset by higher volume [125]. - Total revenues for Q1 2025 were $26.5 million, down from $32.4 million in Q1 2024, reflecting a decrease of approximately 18.2% [124]. - Loss from operations increased to $13.2 million in Q1 2025 compared to a loss of $4.3 million in Q1 2024 [124]. - INDOCIN net product sales decreased by $3.1 million from $8.7 million in Q1 2024 to $5.5 million in Q1 2025 due to lower volume and pricing from generic competition [126]. - Sympazan net product sales decreased by $0.4 million from $2.6 million in Q1 2024 to $2.2 million in Q1 2025, primarily due to unfavorable payor mix and lower volume [127]. Expenses - Cost of sales decreased from $11.2 million in Q1 2024 to $7.8 million in Q1 2025, a reduction of approximately 30.0% [124]. - Selling, general and administrative expenses rose to $22.0 million in Q1 2025 from $18.5 million in Q1 2024, an increase of approximately 19.8% [124]. - Amortization of intangible assets increased significantly from $5.6 million in Q1 2024 to $9.2 million in Q1 2025, reflecting a rise of approximately 63.5% [124]. - Research and development expenses were $0.4 million in Q1 2025, down from $0.7 million in Q1 2024, reflecting reduced costs associated with ongoing clinical activity for ROLVEDON [134]. - Selling, general and administrative expenses increased by $3.5 million from $18.5 million in Q1 2024 to $22.0 million in Q1 2025, driven by higher legal charges [136]. - Amortization of intangible assets increased by $3.6 million from $5.6 million in Q1 2024 to $9.2 million in Q1 2025, primarily due to changes in estimated useful lives of ROLVEDON and INDOCIN [137]. Cash Flow and Working Capital - Cash and cash equivalents totaled $87.3 million as of March 31, 2025, expected to be sufficient for operations and debt payments over the next 12 months [146]. - Net cash used in operating activities was $12.5 million in Q1 2025, compared to net cash provided of $7.5 million in Q1 2024 [151]. - Cash used in operating activities was $12.5 million for Q1 2025, a decrease from cash provided of $7.5 million in Q1 2024, primarily due to lower net product sales and higher expenses [152]. - Net working capital was a net use of cash of $10.1 million in Q1 2025, compared to a net cash provided of $3.6 million in Q1 2024, reflecting a $13.7 million change [152]. - Cash used in investing activities was $2.9 million in Q1 2025, consisting of $31.4 million in purchases of short-term investments, offset by $28.5 million from maturities [155]. - Cash used in financing activities was $0.1 million in Q1 2025, slightly down from $0.2 million in Q1 2024, related to employee stock awards [156]. Tax and Accounting - The company recorded an income tax expense of $0.2 million in Q1 2025, compared to $0.1 million in Q1 2024, with a full valuation allowance against net deferred tax assets [144]. - There were no material changes to the company's cash requirements from contractual obligations since the last filing [157]. - Critical accounting policies related to revenue recognition and impairment of long-lived assets remain unchanged since the last filing [158]. - The company is classified as a smaller reporting company and is not required to provide additional market risk disclosures [159]. Product and Market Strategy - ROLVEDON is indicated to decrease the incidence of infection in adult patients receiving anti-cancer drugs, targeting both hospitals and community oncology clinics [118]. - The company acquired ROLVEDON through a merger with Spectrum Pharmaceuticals on July 31, 2023, enhancing its product portfolio [118]. - The company is focusing on expanding its commercial capabilities through a patient-centric approach and omni-channel promotional model [121]. - The company anticipates that the average sales price for ROLVEDON will be negatively impacted in the remainder of 2025 due to increased discounts and rebates [125]. Restructuring - Restructuring charges were $0.3 million in Q1 2025, down from $0.7 million in Q1 2024, related to efficiency improvements in the sales and marketing department [141].

Financial Performance - Total net product sales for the first quarter of 2025 were $26.0 million, down from $31.9 million in the same quarter of 2024, reflecting a decrease of approximately 18.3% year-over-year[5] - Rolvedon net sales were $13.1 million, a decrease from $14.5 million in the prior year quarter, driven by lower pricing, partially offset by higher volume[8] - Indocin net product sales were $5.5 million, down from $8.7 million in the prior year quarter, due to generic competition affecting both volume and pricing[8] - The company reported a net loss of $13.5 million for the first quarter of 2025, compared to a net loss of $4.5 million in the same quarter of 2024[5] - Adjusted EBITDA for the first quarter was $0.2 million, a significant decrease from $7.4 million in the prior year quarter, primarily reflecting lower net product sales[8] - Adjusted EBITDA for the three months ended March 31, 2025, was $158,000, down from $7,379,000 in the same period of 2024, showing a decline of approximately 97.9%[22] Expenses and Costs - Selling, general and administrative expenses increased to $22.0 million from $18.5 million in the prior year quarter, primarily due to higher legal charges[8] - The company incurred stock-based compensation expenses of $1,101,000 for the three months ended March 31, 2025, slightly down from $1,207,000 in the same period of 2024[22] Cash and Investments - Cash, cash equivalents, and short-term investments totaled $87.3 million as of March 31, 2025, down from $100.1 million as of December 31, 2024[8] - Cash and cash equivalents decreased to $35,004,000 at the end of the period, down from $50,588,000 at the beginning of the year, representing a decrease of about 30.7%[21] - The company reported a net cash used in operating activities of $12,538,000 for the three months ended March 31, 2025, compared to net cash provided of $7,508,000 in the same period of 2024[21] Assets and Liabilities - Total current assets increased to $213,550,000 as of March 31, 2025, up from $202,549,000 as of December 31, 2024, reflecting a growth of about 5.0%[19] - Total liabilities rose to $177,896,000 as of March 31, 2025, compared to $163,651,000 as of December 31, 2024, indicating an increase of approximately 8.7%[19] - The company’s total current liabilities increased to $128,832,000 as of March 31, 2025, compared to $114,688,000 as of December 31, 2024, indicating an increase of approximately 12.3%[19] - The total shareholders' equity decreased to $108,530,000 as of March 31, 2025, down from $121,081,000 as of December 31, 2024, reflecting a decline of about 10.4%[19] Strategic Focus - The company is prioritizing investment in growth assets and divesting declining or non-core assets as part of its long-term business strategy[2] - The company has settled multiple legal matters, reducing future legal costs and focusing resources on the business[4] Accounts Receivable - The company experienced a significant increase in accounts receivable, net, which rose to $66,292,000 as of March 31, 2025, compared to $54,120,000 as of December 31, 2024, marking an increase of approximately 22.5%[19]

Core Insights - Assertio Holdings, Inc. reported first quarter total net product sales of $26.0 million, aligning with its 2025 outlook for sustainable growth and increased long-term value [1][2] - The company is focused on reducing legal exposure, simplifying corporate structure, prioritizing growth investments, and divesting non-core assets as part of its transformation strategy [2][5] Financial Performance - Net sales for the first quarter were $26.0 million, down from $31.9 million in the same quarter last year, with a net loss of $13.5 million compared to a loss of $4.5 million in the prior year [4][11] - Adjusted EBITDA was $0.2 million, significantly lower than $7.4 million in the previous year, primarily due to decreased net product sales and increased costs associated with higher Rolvedon volumes [4][11] - Rolvedon net sales were $13.1 million, a decrease from $14.5 million year-over-year, while Sympazan prescriptions increased by 6.5% year-over-year [3][11] Legal and Corporate Developments - The company settled multiple legal matters, including a DOJ False Claims Act lawsuit and an antitrust action, which is expected to reduce future legal costs [5] - Assertio has begun simplifying its corporate structure by transferring interests in its subsidiary Assertio Therapeutics, which held approximately $8.2 million in cash and certain legal liabilities [5] Balance Sheet and Cash Flow - As of March 31, 2025, Assertio had cash, cash equivalents, and short-term investments totaling $87.3 million, down from $100.1 million at the end of 2024 [12] - The company reported a net cash used in operating activities of $12.5 million for the quarter, compared to a net cash provided of $7.5 million in the same period last year [22] Strategic Focus - Assertio is reallocating resources to focus on growth assets, particularly Rolvedon and Sympazan, while progressing towards divesting non-core assets [5][11] - The management plans to host a conference call to discuss the financial results and provide further details on the corporate strategy for 2025 [7]

Core Viewpoint - Assertio Holdings, Inc. is set to release its first quarter 2025 financial results on May 12, 2025, after market close, followed by a live webcast conference call to discuss the results and update on strategic plans for 2025 [1]. Group 1 - The financial results announcement is scheduled for May 12, 2025, after market close [1]. - A live webcast conference call will take place at 4:30 p.m. Eastern Time on the same day [1]. - The company encourages participants to connect at least 10 minutes prior to the webcast for any necessary software downloads [2]. Group 2 - Assertio is a commercial pharmaceutical company with capabilities in marketing, market access, and distribution [4]. - The company has built its commercial portfolio through acquisitions or licensing of approved products [4]. - For more information about Assertio, the company’s website is provided [4].

Core Points - Assertio Holdings, Inc. will present at the iAccess Alpha Best Ideas Spring Investment Conference on March 25, 2025, at 1:30 pm Eastern Time [1] - Investors can request one-on-one meetings on March 26, 2025, through conference representatives or Assertio investor relations [2] - Assertio is a pharmaceutical company focused on oncology, neurology, and pain management, offering differentiated products to meet patient needs [3]

Group 1 - Assertio Holdings, Inc. will present at the iAccess Alpha Best Ideas Spring Investment Conference on March 25, 2025, at 1:30 pm Eastern Time [1] - Investors can request one-on-one meetings on March 26, 2025, through conference representatives or Assertio investor relations [2] - Assertio is a pharmaceutical company focused on oncology, neurology, and pain management, offering differentiated products to meet patient needs [3]

Financial Data and Key Metrics Changes - Assertio reported a positive cash flow from operations of $11.5 million, while adjusted EBITDA was negative at $500,000, indicating a discrepancy primarily driven by working capital adjustments and excess inventory charges [33][36] - The company provided a broad guidance range for 2025, estimating revenues between $108 million and $123 million, influenced by various operational factors [7][8] Business Line Data and Key Metrics Changes - The company highlighted a significant legal reserve taken in Q4 related to ongoing opioid legal exposure, which remains a known issue [12] - Assertio experienced an inventory write-down of approximately $4 million due to excess inventory of Indosin, indicating potential challenges in inventory management [29] Market Data and Key Metrics Changes - The ASP (Average Selling Price) for Rolodin showed a slight uptick, with management discussing strategies to manage ASP effectively [13] Company Strategy and Development Direction - The company outlined four strategic priorities for 2025, focusing on simplifying structure and processes, which is part of a broader transformation initiative [5] - Assertio aims to position itself for sustainable near-term growth, leveraging its proven platform and sound strategy [39] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing opioid legal exposure but emphasized that there were no new developments impacting the legal front in the recent quarter [26] - The CEO expressed confidence in the company's ability to unlock growth through a strong balance sheet and an excellent team [39] Other Important Information - The impairment of Otracip intangible assets was attributed to accounting evaluations based on the gap between book value and fair value, rather than specific issues with the franchise [30][32] Q&A Session Summary Question: Factors influencing revenue guidance range - Management acknowledged the broad guidance range and indicated various operational factors could influence the final revenue outcome [7][8] Question: Likelihood of acquisitions in the next twelve months - Management indicated that the odds of making an acquisition are above fifty-fifty, supported by a strengthened balance sheet [9] Question: Details on legal exposure and reserves - Management confirmed ongoing opioid legal exposure and discussed the relatively large legal reserve taken in Q4 [12] Question: ASP management for Rolodin - Management confirmed an uptick in Rolodin's ASP and discussed strategies for managing it [13] Question: Generics competition for Indosin - Management noted the launch of the first generic formulation of Indosin and discussed the competitive landscape [23] Question: Clarification on opioid legal exposure - Management stated there were no new developments regarding opioid legal exposure, maintaining that the situation has been steady [26] Question: Inventory write-down reasons - Management explained the $4 million write-down was due to excess inventory of Indosin [29] Question: Impairment of Otracip intangible assets - Management clarified that the impairment was related to accounting evaluations rather than specific franchise issues [30][32] Question: Discrepancy between cash flow and EBITDA - Management attributed the discrepancy between positive cash flow and negative EBITDA to working capital adjustments and excess inventory charges [33][36]