Assertio (US:ASRT)2021-03-11 16:00Financial Transactions - In 2020, the company completed the sale of Gralise for cash proceeds of $130.3 million, recognizing a gain of $126.7 million on the sale[219]. - The company sold its remaining rights to the NUCYNTA franchise for $375.0 million, resulting in a loss of $14.7 million[220]. - The company repaid its senior secured notes in full, recognizing a loss on debt extinguishment of $8.2 million[221]. - In May 2020, the company completed a merger with Zyla Life Sciences, acquiring several products including INDOCIN and SPRIX[224]. - The company completed two registered direct offerings in February 2021, raising approximately $47.3 million in gross proceeds[229]. - The company completed a registered direct offering on February 9, 2021, selling 22.6 million shares at $0.62 per share, raising approximately $14.0 million in gross proceeds[287]. - The company also completed another registered direct offering on February 12, 2021, selling 35 million shares at $0.98 per share, raising approximately $34.3 million in gross proceeds[287]. Revenue and Sales Performance - Total revenues for 2020 were $106.275 million, a decrease of 53.7% from $229.504 million in 2019[253]. - Product sales, net for 2020 were $93.498 million, down from $108.806 million in 2019, representing a decline of 14.1%[256]. - Total product sales included INDOCIN products generating $31.684 million in 2020, with CAMBIA contributing $28.350 million[256]. - For the year ended December 31, 2020, net product sales were primarily from INDOCIN Products, CAMBIA, Zipsor, and SPRIX, with CAMBIA sales decreasing by $4.1 million compared to 2019 due to lower volume and unfavorable payor mix[259]. - Total commercialization agreement revenue, net for 2020 was $11.3 million, a significant decrease from $118.6 million in 2019, largely due to the divestiture of NUCYNTA[263]. Expenses and Costs - The company incurred total costs and expenses of $188.430 million in 2020, down from $423.932 million in 2019[253]. - Research and development expenses decreased to $4.213 million in 2020 from $10.106 million in 2019, a reduction of 58.3%[253]. - Cost of sales increased from $9.5 million in 2019 to $19.9 million in 2020, primarily due to Zyla-related product costs, including $4.1 million of amortization of inventory step-up[266]. - Selling, general and administrative expenses decreased from $108.9 million in 2019 to $104.3 million in 2020, primarily due to a prior year's loss on disposal of equipment and increased costs related to opioid litigation[270]. - Restructuring charges for the year ended December 31, 2020 amounted to $17.8 million, significantly higher than $3.9 million in 2019, due to workforce reductions and other exit costs[276]. Impairments and Losses - The company recorded a net loss of $28.144 million in 2020 compared to a net loss of $217.201 million in 2019, indicating an improvement[253]. - The impairment loss on the NUCYNTA intangible asset was $189.8 million in 2019, reducing its carrying value from $564.8 million to $375 million[247]. - Goodwill impairment charge of $17.4 million was recorded as of December 31, 2020, due to declining revenues and decreased market capitalization[249]. - The company recognized a loss on impairment of goodwill of $17.4 million for the year ended December 31, 2020, following a fair value assessment[275]. Cash Flow and Financial Position - Cash used in operating activities was $65.6 million for the year ended December 31, 2020, compared to cash provided of $90.5 million in 2019, mainly due to the sale of Gralise and NUCYNTA[295]. - Cash provided by investing activities was $512.8 million for the year ended December 31, 2020, significantly up from cash used of $1.5 million in 2019, driven by the sales of NUCYNTA and Gralise[296]. - Cash used in financing activities increased to $468.6 million in 2020 from $157.8 million in 2019, primarily due to the repurchase of $264.7 million of outstanding notes and settlement of $171.8 million of Senior Notes[297]. - As of December 31, 2020, cash and cash equivalents decreased to $20.8 million from $42.1 million at the beginning of the year[294]. - The company anticipates that existing cash will be sufficient to fund operations for the next twelve months, although future cash needs may vary due to various factors[292]. - The company had no off-balance sheet arrangements as of December 31, 2020[299]. Restructuring and Workforce Changes - The company recognized $5.6 million in restructuring charges related to workforce reduction following the Zyla Merger[225]. - A restructuring plan announced in December 2020 is expected to incur $9.6 million in severance and benefits costs[227]. - Research and development expenses decreased from $10.1 million in 2019 to $4.2 million in 2020, mainly due to lower R&D headcount and costs associated with the divestiture of Gralise and NUCYNTA[268]. Product and Market Adjustments - The company expects to adjust estimates related to product return allowances and managed care rebates based on experience and quantitative factors[240]. - Non-promoted products SOLUMATRIX and OXAYDO generated $7.7 million in sales for the year ended December 31, 2020, following their acquisition in May 2020[260].