Assertio (US:ASRT)2024-11-12 13:28Financial Performance - Total revenues for Q3 2024 were $29,204, a decrease of 18.5% compared to $35,627 in Q3 2023[7] - Product sales, net for Q3 2024 were $28,705, down 18.2% from $35,137 in Q3 2023[7] - Net loss for Q3 2024 was $2,921, significantly improved from a net loss of $279,544 in Q3 2023[7] - Basic net loss per share for Q3 2024 was $(0.03), compared to $(3.42) in Q3 2023[7] - Total revenues for the three months ended September 30, 2023, were $36,718, and for the nine months ended September 30, 2023, were $159,528[32] - The net loss for the three months ended September 30, 2023, was $(314,282), and for the nine months ended September 30, 2023, was $(323,288)[32] - For the three months ended September 30, 2024, the Company reported a net loss of $2.9 million, with a basic and diluted net loss per share of $(0.03)[109] Expenses and Costs - Total costs and expenses for Q3 2024 were $32,252, a decrease from $263,898 in Q3 2023[7] - Research and development expenses for Q3 2024 were $1,005, down from $1,316 in Q3 2023[7] - Selling, general and administrative expenses for Q3 2024 were $16,726, a decrease from $21,005 in Q3 2023[7] - Amortization expense for the three months ended September 30, 2024, was $6.7 million, compared to $10.2 million for the same period in 2023, a decrease of 34.3%[43] - Selling, general and administrative expenses decreased by $4.3 million from $21.0 million for the three months ended September 30, 2023, to $16.7 million for the same period in 2024[172] - Research and development expenses rose to $2.5 million for the nine months ended September 30, 2024, up from $1.8 million in the same period of 2023, mainly due to ongoing clinical activities for ROLVEDON[200] - Selling, general and administrative expenses decreased to $53.6 million for the nine months ended September 30, 2024, from $54.7 million in the same period of 2023, attributed to lower transaction-related expenses and other cost reductions[201] Cash and Equity - Cash and cash equivalents at the end of the period were $37,981, down from $76,888 at the end of the previous year[14] - The company experienced a net decrease in cash and cash equivalents of $35,460 during the reporting period[14] - Shareholders' equity as of September 30, 2024, was $130,518, down from $192,873 as of September 30, 2023[9] - The company had 95,361 common shares outstanding as of September 30, 2024, an increase from 94,553 shares as of September 30, 2023[9] - The company’s total cash and cash equivalents as of September 30, 2024, amounted to $78.577 million, with $25.792 million classified as Level 1 and $52.785 million as Level 2[115] Acquisitions and Mergers - The acquisition of Spectrum Pharmaceuticals was completed on July 31, 2023, with a total fair value of consideration transferred amounting to $252,873, which includes $216,294 in Assertio shares issued[20][23] - The company completed the acquisition of Spectrum Pharmaceuticals on July 31, 2023, with Spectrum becoming a wholly-owned subsidiary[148] - Acquisition costs related to the Spectrum Merger recognized for the nine months ended September 30, 2023, were $8.5 million, with no costs recognized for the same period in 2024[29] - The contingent value rights (CVRs) associated with the Spectrum acquisition could result in additional payments of up to $44.7 million based on achieving specific sales milestones for the product ROLVEDON[24] - The contingent value rights (CVR) related to the Spectrum Merger could yield up to $0.20 based on future sales milestones of ROLVEDON, with specific targets set at $175 million for 2024 and $225 million for 2025[150] Legal Matters - The company is involved in multiple opioid-related litigations, including over 2,000 cases in the Multi-District Litigation court, with no trial dates set yet[79] - The company intends to vigorously defend itself in the qui tam lawsuit filed against it, which alleges violations of the federal False Claims Act and other laws[83] - The company is currently in negotiations with the DOJ regarding a potential settlement of the qui tam lawsuit, with mediation scheduled for December 2, 2024[85] - Assertio is involved in multiple securities class action lawsuits alleging false or misleading statements regarding the impact of INDOCIN sales and the Spectrum Merger on profitability[93] - The company has been named in several lawsuits across various states, asserting opioid-drug related claims against it[81] - The company has recorded a liability for a settlement agreement in principle regarding California state court lawsuits, which is not expected to materially impact its financial statements[76] Product Sales - ROLVEDON product sales for the three months ended September 30, 2024, were $15,021, compared to $7,132 for the same period in 2023, representing a 110% increase[33] - Total product sales for Q3 2024 were $28.7 million, a decrease of 6.5% from $30.7 million in Q2 2024, and a decrease of 18.2% from $35.1 million in Q3 2023[153] - INDOCIN net product sales for Q3 2024 were $5.7 million, a decrease of 17.4% from $6.9 million in Q2 2024, and a decrease of 68.5% from $17.9 million in Q3 2023[155] - ROLVEDON net product sales increased to $44.6 million for the nine months ended September 30, 2024, from $7.1 million in the same period of 2023, driven by the acquisition of Spectrum and higher volume[189] - Total product sales, net, decreased to $91.3 million for the nine months ended September 30, 2024, from $117.0 million in the same period of 2023, reflecting a shift in product mix and increased sales allowances[196] Future Expectations - The company expects total future amortization expense for its intangible assets to be $92,359, with the highest expected in 2025 at $19,407[44] - The company expects cost of sales as a percentage of sales to be negatively affected due to changes in product volume and mix for the remainder of 2024[167] - The company anticipates ongoing challenges for INDOCIN sales due to increasing competition from generic products[190] - The company expects continued negative impact on average selling prices for ROLVEDON due to higher discounts and rebates for the remainder of 2024[189]