ANI Pharmaceuticals(US:ANIP)2024-11-20 12:00Financial Performance - Generated record quarterly net revenues of $148.3 million, representing year-over-year growth of 12.5%[1] - Purified Cortrophin® Gel net revenues reached $52.6 million, an increase of 76.8% year-over-year[1] - Adjusted non-GAAP net income for Q3 2024 was $148.3 million, compared to $131.8 million in Q3 2023, representing a year-over-year increase of 12.5%[41] - Net revenues for the three months ended September 30, 2024, were $148,332 thousand, up from $131,829 thousand in 2023, reflecting an increase of approximately 12.5%[43] - Adjusted non-GAAP EBITDA for Q3 2024 was $35.1 million, a decrease of 3.8% compared to the same period in 2023[14] - Adjusted non-GAAP EBITDA for the three months ended September 30, 2024, was $35,104 thousand, slightly down from $36,484 thousand in 2023[44] Expenses and Losses - Selling, general, and administrative expenses increased 88.2% to $79.1 million, primarily due to increased employment-related costs and acquisition-related expenses[12] - Total operating expenses for Q3 2024 were $168.9 million, up from $113.9 million in Q3 2023, reflecting a significant increase of 48.3%[41] - Research and development expenses decreased to $10.1 million in Q3 2024 from $11.1 million in Q3 2023, a decline of 9.0%[41] - The net loss for Q3 2024 was $24.2 million, compared to a net income of $9.9 million in Q3 2023, indicating a significant shift in profitability[41] - Basic and diluted loss per share for Q3 2024 was $(1.27), compared to earnings of $0.46 per share in Q3 2023[41] - The company incurred M&A transaction and integration expenses of $9,945 thousand for the three months ended September 30, 2024, compared to $165 thousand in 2023, indicating a significant increase in costs associated with mergers and acquisitions[44] Guidance and Future Expectations - Increased 2024 guidance with expected net revenues of $594 million to $602 million, up from previous guidance of $540 million to $560 million[17] - Cortrophin Gel net revenues guidance for 2024 is $196 million to $200 million, representing year-over-year growth of 75% to 78%[17] - The company expects to capture approximately $10 million of identified cost synergies from the Alimera acquisition in 2025[5] Acquisitions and Business Expansion - Completed the acquisition of Alimera Sciences on September 16, 2024, adding ILUVIEN® and YUTIQ® to the Rare Disease portfolio[1] - The company is focused on expanding its Rare Disease business, which includes novel products in various therapeutic areas[36] Cash and Assets - As of September 30, 2024, the company had $145.0 million in unrestricted cash and cash equivalents[15] - As of September 30, 2024, total assets increased to $1,287,377 thousand from $904,422 thousand as of December 31, 2023, representing a growth of approximately 42.4%[42] - The company’s cash and cash equivalents decreased to $144,982 thousand as of September 30, 2024, from $221,121 thousand as of December 31, 2023, a decline of approximately 34.3%[42] Liabilities and Equity - Total current liabilities rose to $189,933 thousand as of September 30, 2024, compared to $145,477 thousand as of December 31, 2023, indicating an increase of about 30.5%[42] - Non-current liabilities increased to $312,918 thousand as of September 30, 2024, from $284,819 thousand as of December 31, 2023, reflecting a growth of approximately 9.9%[42] - The company reported a total stockholders' equity of $405,948 thousand as of September 30, 2024, down from $432,749 thousand as of December 31, 2023, a decrease of about 6.2%[42] Other Financial Metrics - Total depreciation and amortization expenses for the three months ended September 30, 2024, were $15.748 million, slightly up from $15.207 million in the same period of 2023[47] - Stock-based compensation for the three months ended September 30, 2024, was $7.484 million, compared to $5.444 million in the same period of 2023[47] - The diluted weighted-average shares outstanding increased to 19.404 million for the three months ended September 30, 2024, from 19.125 million in the same period of 2023[47] Risks and Challenges - Risks include the ability to achieve commercial success with Cortrophin Gel and the impact of supply chain disruptions on production[39] - The impact of Canada operations included revenues and expenses that will not recur after the closure of operations, which was completed as of March 31, 2023[47] - The company recorded a loss on extinguishment of debt of $7.468 million for the three months ended September 30, 2024[47] - The unrealized gain on investment in equity securities for the three months ended September 30, 2024, was a loss of $1.355 million, with no comparable figure in the same period of 2023[47]