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Mar 31, 2023
Assertio Q1 2023 Earnings Report
Reported an increase in net product sales and raised the full year outlook.
Key Takeaways
Assertio Holdings, Inc. reported a strong first quarter with an 18% increase in net product sales, driven by Indocin and Sympazan. The company is raising its full-year net product sales and adjusted EBITDA outlook. They also announced the acquisition of Spectrum Pharmaceuticals.
Net product sales increased by 18% year-over-year, reaching $41.8 million.
Adjusted EBITDA increased to $25.6 million, up from $23.9 million in the prior year quarter.
The company strengthened its balance sheet through a $30.0 million exchange of convertible debt.
Assertio announced the acquisition of Spectrum Pharmaceuticals, expected to close in the third quarter of 2023.
Assertio
Assertio
Forward Guidance
Assertio is raising its full-year 2023 financial guidance, reflecting confidence in the company's performance and growth prospects. The guidance does not include the effect of the Spectrum acquisition.
Positive Outlook
- Net Product Sales (GAAP) raised to $157.0 Million to $167.0 Million
- Adjusted EBITDA (Non-GAAP) raised to $90.0 Million to $98.0 Million
- The company anticipates clinical trial costs in the second half of the year.
- Assertio intends to update its guidance to include the effect of the acquisition after closing, currently anticipated to take place in the third quarter 2023.
- Company expects significant and sustainable growth over the coming years
Challenges Ahead
- Guidance does not include the effect of the Spectrum acquisition.
- Full year Adjusted EBITDA guidance includes an initial estimate of the anticipated clinical trial costs in the second half of the year.
- GAAP net loss of $3.5 million
- Increased operating expenses, including $2.4 million in transaction costs associated with the pending acquisition of Spectrum Pharmaceuticals, Inc.
- Indocin products which are not patent protected and may face generic competition at any time