LYNBROOK, N.Y., May 10, 2017 /PRNewswire/ -- BioSpecifics
Technologies Corp. (NASDAQ: BSTC), a biopharmaceutical company that
originated and continues to develop collagenase based-therapies
with a first in class collagenase-based product marketed as
XIAFLEX® in the U.S. and
Xiapex® in Europe, today announced its
financial results for the first quarter ended March 31, 2017 and provided a corporate
update.
"We were very excited to recently announce the initiation of our
Phase 1 clinical trial of XIAFLEX for the treatment of uterine
fibroids, a serious medical condition with upward of $9.4 billion in U.S. annual direct costs as a
result of all of the surgeries, hospital visits and other
complications that come with treatment. These benign tumors of the
reproductive tract cause pelvic discomfort, pain, decreased
fertility and many other adverse symptoms. We are looking forward
to the progression of our trial as we hope to deliver a more
effective and efficient treatment option to patients," said
Thomas L. Wegman, President of
BioSpecifics. "We continue to work with our partner Endo to
maximize the potential of XIAFLEX and in particular, look forward
to the start of the Phase 3 trials for cellulite in the second half
of this year."
First Quarter 2017 Financial Results
BioSpecifics reported net income of $3.3
million for the first quarter ended March 31, 2017, or $0.47 per basic share and $0.46 per share on a fully diluted basis,
compared to net income of $2.8
million, or $0.40 per basic
share and $0.39 per share on a fully
diluted basis, for the same period in 2016.
Total revenue for the first quarter ended March 31, 2017 was $7.7
million, compared to $6.6
million for the same period in 2016. The increase in total
revenues for the quarterly period was primarily due to royalties
and the mark-up on cost of goods sold revenue associated with an
increase in sales of XIAFLEX for the treatment of Peyronie's
disease and Dupuytren's contracture.
Royalty and mark-up on cost of goods sold (COGS) revenues
recognized under BioSpecifics' agreement with Endo International
plc (Endo) for the first quarter ended March
31, 2017 were $7.7 million,
compared to $6.6 million for the same
period in 2016, an increase of $1.1
million, or 17 percent.
Licensing revenue consists of licensing fees, sublicensing fees
and milestones. BioSpecifics recognized licensing revenue of
approximately $4,000 for the first
quarter ended March 31, 2017 as
compared to $12,000 in the
corresponding 2016 period.
Research and development expenses for the first quarter ended
March 31, 2017 were $0.3 million compared to $0.2 million for the same period in 2016.
General and administrative expenses for the first quarter ended
March 31, 2017 were $2.4 million compared to $2.2 million for the same period in 2016.
Provision for income taxes for the first quarter ended
March 31, 2017 were $1.8 million, compared to $1.4 million for the same period in 2016.
As of March 31, 2017, BioSpecifics
had cash and cash equivalents and investments of $56.0 million, compared to $52.8 million as of December 31, 2016.
XIAFLEX Commercial Highlights
On May 9, 2017, Endo reported
commercial highlights for XIAFLEX for the first quarter of 2017
(Endo's first quarter 2017 financials are reported in BioSpecifics'
second quarter 2017 financials). For the first quarter of 2017, net
revenues were $49.5 million compared
to $44.0 million in the first quarter
of 2016, a 12 percent growth. Endo continues to expect high-single
to low-double digit revenue growth in 2017.
XIAFLEX Pipeline Updates and Anticipated Upcoming
Milestones
BioSpecifics manages the development of XIAFLEX for uterine
fibroids and may initiate the development of new potential
indications, not licensed by Endo. In addition to Dupuytren's
contracture and Peyronie's disease, Endo's licensed rights include
human and canine lipoma, adhesive capsulitis, cellulite, lateral
hip fat and plantar fibromatosis.
- In April 2017, BioSpecifics
announced that the first patient was dosed with XIAFLEX in its
ongoing Phase 1 open-label dose escalation study for the treatment
of uterine fibroids being conducted at the Department of Gynecology
& Obstetrics at Johns Hopkins
University. The study is designed to enroll 15 female
subjects treated prior to hysterectomy. Three subjects were
injected with saline only to evaluate the accuracy of the injection
method prior to the first patient being dosed with XIAFLEX. The
primary endpoint will assess the safety and tolerability of a
single injection of XIAFLEX directly into the uterine fibroids
under transvaginal ultrasound guidance. The secondary endpoints
will assess symptoms of pain and bleeding, quality of life
throughout the study, shrinkage of XIAFLEX treated fibroids in
size, increased rates of apoptosis in treated fibroids and a
decrease in the collagen content of treated fibroids.
- In March 2017, the potential use
of XIAFLEX for the treatment of uterine fibroids was highlighted at
the Uterine Fibroids 2017 Conference: A Case for Women's Health
conference held in Durham, NC. The
investigator for the recently initiated Phase 1 trial, Dr.
James Segars, Director of
Reproductive Science and Women's Health Research at Johns Hopkins School of Medicine, presented data in
a presentation titled, "An Injectable Drug to Treat Fibroids: A
Phase 1 clinical trial," demonstrating accuracy of the injection
technique in three patients.
- Highly statistically significant data from Endo's Phase 2b
study of XIAFLEX in patients with cellulite were presented at the
Aesthetica Super Symposium (American Society of Plastic Surgeons)
in March 2017 and the American
Academy of Dermatology Annual Meeting in February 2017.
- Endo plans to initiate Phase 3 clinical trials of XIAFLEX for
the treatment of cellulite in the second half of 2017.
- A commercial review of additional indications and priority
programs, beyond cellulite, is ongoing by Endo and will determine
the clinical trial timelines for Endo's licensed indications moving
forward.
About BioSpecifics Technologies Corp.
BioSpecifics Technologies Corp. is a biopharmaceutical company
that has developed injectable collagenase for thirteen clinical
indications to date. Injectable collagenase is marketed as
XIAFLEX® in the U.S. for the treatment of
Dupuytren's contracture and Peyronie's disease by BioSpecifics'
partner, Endo International plc (Endo). XIAFLEX® is
also commercialized
in Japan, Europe, Canada and Australia for
Dupuytren's contracture and for Peyronie's disease in Europe
and Australia. Endo is partnered with Sobi, Actelion and Asahi
Kasei for Dupuytren's contracture and Peyronie's disease outside
the U.S. The XIAFLEX research and development pipeline includes
several additional promising indications. BioSpecifics is managing
the development of XIAFLEX for uterine fibroids and is conducting a
Phase 1 clinical trial. For more information, please
visit www.biospecifics.com.
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of, and made pursuant to the safe harbor provisions of,
the Private Securities Litigation Reform Act of 1995. All
statements other than statements of historical fact, including
statements regarding the company's strategy, future operations,
future financial position, future revenues, projected costs,
prospects, plans and objectives of management, expected revenue
growth, and the assumptions underlying or relating to such
statements, are "forward-looking statements." The forward-looking
statements in this press release include statements concerning,
among other things, the progression of our Phase 1 clinical trial
of XIAFLEX for the treatment of uterine fibroids; whether and when
Endo will begin the Phase 3 clinical trial of XIAFLEX for the
treatment of cellulite; whether Endo will achieve high-single to
low-double-digit revenue growth in 2017; whether and when Endo will
publish full data from the Phase 2b study of XIAFLEX for the
treatment of cellulite; the outcome of Endo's commercial assessment
regarding the additional indications and priority programs and the
timing of Endo's determination of clinical trial timelines for its
licensed indications. In some cases, these statements can be
identified by forward-looking words such as "believe," "expect,"
"plan", "may," "will," "can," and "could," the negative or plural
of these words, and other similar expressions. These
forward-looking statements are predictions based on BioSpecifics'
current expectations and its projections about future events and
various assumptions. There can be no assurance that BioSpecifics
will realize its expectations or that BioSpecifics' beliefs will
prove correct. There are a number of important factors that could
cause BioSpecifics' actual results to differ materially from those
indicated by such forward-looking statements, including the timing
of regulatory filings and action; the ability of Endo and its
partners, Asahi Kasei Pharma Corporation, Actelion Ltd. and Swedish
Orphan Biovitrum AB, to achieve their objectives for XIAFLEX in
their applicable territories; the market for XIAFLEX in, and
timing, initiation and outcome of clinical trials for additional
indications that will determine the amount of milestone, royalty,
mark-up on cost of goods sold, license and sublicense income
BioSpecifics may receive; the potential of XIAFLEX to be used in
additional indications; Endo modifying its objectives or allocating
resources other than to XIAFLEX; and other risk factors identified
in BioSpecifics' Annual Report on Form 10-K for the year
ended December 31, 2016, Quarterly Report on Form 10-Q for the
quarter ended March 31, 2017 and its
Current Reports on Form 8-K filed with the Securities and Exchange
Commission. All forward-looking statements included in this press
release are made as of the date hereof, are expressly qualified in
their entirety by the cautionary statements included in this press
release and, except as may be required by law, BioSpecifics assumes
no obligation to update these forward-looking statements.
BioSpecifics
Technologies Corp.
|
Condensed
Consolidated Income Statement
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
March
31,
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Royalties
|
|
$7,686,210
|
|
$6,555,647
|
|
|
|
|
Licensing revenue
|
|
4,409
|
|
12,344
|
|
|
|
|
Total
Revenues
|
|
7,690,619
|
|
6,567,991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
Research
and development
|
|
254,781
|
|
248,500
|
|
|
|
|
General
and administrative
|
|
2,425,717
|
|
2,164,333
|
|
|
|
|
Total
costs and expenses
|
|
2,680,498
|
|
2,412,833
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
5,010,121
|
|
4,155,158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income:
|
|
|
|
|
|
|
|
|
Interest
income
|
|
101,753
|
|
52,703
|
|
|
|
|
Other,
net
|
|
2,562
|
|
21,358
|
|
|
|
|
|
|
104,315
|
|
74,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax expense
|
|
5,114,436
|
|
4,229,219
|
|
|
|
|
Provision for income
tax expense
|
|
(1,769,683)
|
|
(1,400,095)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
3,344,753
|
|
$
2,829,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.47
|
|
$
0.40
|
|
|
|
|
Diluted
|
|
$
0.46
|
|
$
0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
calculation of earnings per share:
|
|
|
|
|
|
|
|
Basic
|
|
7,164,245
|
|
7,011,664
|
|
|
|
|
Diluted
|
|
7,332,736
|
|
7,274,966
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BioSpecifics
Technologies Corp.
|
|
|
Selected Condensed
Consolidated Balance Sheet Data
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
|
|
2017
|
|
2016
(1)
|
|
|
Cash and cash
equivalents
|
|
|
|
$
9,031,808
|
|
$
4,763,364
|
|
|
Investments
|
|
|
|
46,941,561
|
|
48,026,242
|
|
|
Accounts and income
tax receivable
|
|
|
|
5,210,830
|
|
4,305,503
|
|
|
Deferred tax
assets
|
|
|
|
3,192,614
|
|
3,290,122
|
|
|
Working
capital
|
|
|
|
52,555,718
|
|
53,403,332
|
|
|
Total
assets
|
|
|
|
68,274,018
|
|
64,696,280
|
|
|
Long-term
liabilities
|
|
|
|
5,974,947
|
|
6,417,702
|
|
|
Total stockholders'
equity
|
|
|
|
59,696,600
|
|
56,281,943
|
|
|
|
|
|
|
|
|
|
|
|
(1) The
selected consolidated balance sheet information for the year ended
December 31, 2016 have been derived from the audited financial
statements but do not include all of the information and footnotes
required by accounting principles generally accepted in the United
States for complete financial statements.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/biospecifics-technologies-corp-reports-first-quarter-2017-financial-results-300454793.html
SOURCE BioSpecifics Technologies Corp.