Assertio (US:ASRT)2021-08-12 23:07Financial Data and Key Metrics Changes - Net product sales for Q2 2021 were $24.8 million, a decrease from pro forma net product sales of $28.2 million in the prior-year quarter and $26.4 million in the previous quarter [11] - Adjusted EBITDA for Q2 was a loss of $505,000 compared to income of $15.7 million in Q1, but adjusted EBITDA excluding one-time legal matters was $10.8 million, slightly up from $10.7 million in Q1 [12][14] - The net loss for Q2 was $14.2 million, significantly down from a net income of $4.5 million in Q1, primarily due to a legal reserve of $11.3 million [14] Business Line Data and Key Metrics Changes - INDOCIN net sales were impacted by a channel inventory adjustment due to a change in distribution strategy, affecting sales by $1.5 million [12] - Combined net sales for CAMBIA and ZIPSOR remained flat compared to the prior quarter, while overall portfolio net sales decreased by 6% due to the distribution model change [12] Market Data and Key Metrics Changes - The company experienced a decline in sales driven by lower volume on discontinued and non-promoted brands, as well as SPRIX, which was affected by prior-year commercial coverage changes [11] Company Strategy and Development Direction - The company is focusing on mitigating legacy legal uncertainties and has taken a charge of $1.3 million for two separate legal matters [8] - There is a commitment to achieving $40 million in cost savings in 2021, with expectations to reach $45 million in annual savings starting in 2022 [14] - The management is actively pursuing M&A opportunities and has been more aggressive in generating targets [10] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's resilience and the effectiveness of the new distribution model, which is expected to enhance profitability in the future [7] - The company has updated its annual guidance for 2021, projecting product net sales of $91 million to $96 million and adjusted EBITDA of $34 million to $37 million [16] Other Important Information - The company ended Q2 with cash of $54.4 million, a decrease from $61 million at the end of Q1, primarily due to a $10 million principal and interest payment [15] - The senior secured debt balance was $75.5 million, maturing in Q1 2024 [15] Q&A Session Summary - The Q&A session did not contain any recorded questions or answers, as the call concluded shortly after management's remarks [17][18]