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Jun 30, 2020

Eton Q2 2020 Earnings Report

Reported financial results for the second quarter ended June 30, 2020.

Key Takeaways

Eton Pharmaceuticals reported revenue of $20,000 in the second quarter of 2020, primarily from Biorphen sales. The company's net loss for the quarter was $4.7 million, and they had cash and cash equivalents of $10.3 million as of June 30, 2020.

Submitted two NDAs, including one with orphan designation.

Made significant progress preparing for the expected launch of Alkindi Sprinkle.

Expect to complete two more NDA submissions in the coming months.

Plan to launch as many as six branded products before the end of 2021.

Total Revenue
$20K
EPS
-$0.23
Previous year: -$0.18
+27.8%
R&D Expenses
$1.6M
Previous year: $1.4M
+14.3%
G&A Expenses
$2.9M
Previous year: $1.9M
+52.6%
Gross Profit
-$8K
Cash and Equivalents
$10.3M
Free Cash Flow
-$2.85M
Total Assets
$14.6M

Eton

Eton

Forward Guidance

Eton expects to launch as many as six branded products before the end of 2021 and implement new targeting strategies and promotional campaigns in the third quarter that are expected to drive stronger sales in the second half of 2020.

Positive Outlook

  • Alkindi Sprinkle's NDA is under review by the FDA.
  • Expects the FDA to meet the existing September 29, 2020 PDUFA date without any disruption from COVID-19 for Alkindi Sprinkle.
  • Believes the Alkindi Sprinkle application is approvable and is working aggressively on launch preparation activities.
  • Plans to implement new targeting strategies and promotional campaigns in the third quarter that are expected to drive stronger sales in the second half of 2020.
  • Expects the vial product launch to significantly accelerate Biorphen adoption.

Challenges Ahead

  • Biorphen sales continue to be impacted by COVID-19.
  • Hospital policies continue to restrict sales representatives from visiting with pharmacy directors and hospital staff.
  • Study participant enrollment for ET-105 has been impacted by COVID-19.
  • Received Complete Response Letter in March 2020 for ET-105 (Lamotrigine for Oral Suspension).
  • EM-100's goal date was extended to September 15th due to a proprietary name change submission by its partner.