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Sep 30, 2023

Eton Q3 2023 Earnings Report

Eton reported eleventh straight quarter of product sales and royalty revenue growth and reached cash flow break-even ahead of schedule.

Key Takeaways

Eton Pharmaceuticals reported a net revenue of $7.0 million, a 118% increase compared to the prior year period. The company achieved positive cash flow from operations and ended the quarter with $22.1 million in cash on hand. They also acquired Nitisinone Capsules, an ultra-rare disease product.

Product sales and royalty revenue increased by 118% compared to Q3 2022, reaching $7.0 million.

The company generated $0.9 million in positive cash flow from operations.

Cash on hand increased to $22.1 million.

Nitisinone Capsules were acquired, adding a fourth commercial rare disease product to the portfolio.

Total Revenue
$7.03M
Previous year: $3.22M
+118.3%
EPS
-$0.02
Previous year: -$0.12
-83.3%
Gross Profit
$4.4M
Previous year: $2M
+120.2%
Cash and Equivalents
$22.1M
Previous year: $13.4M
+64.9%
Free Cash Flow
$873K
Previous year: -$1.7M
-151.3%
Total Assets
$31.5M
Previous year: $21.5M
+46.5%

Eton

Eton

Eton Revenue by Segment

Forward Guidance

Eton anticipates strong organic growth for its existing commercial products, potential near-term launches of Nitisinone and ET-400, a strong balance sheet, and a favorable M&A environment.

Positive Outlook

  • Strong organic growth prospects for existing commercial products.
  • Potential near-term launches of Nitisinone and ET-400.
  • Strong balance sheet.
  • Favorable M&A environment.
  • Combined peak sales of ET-400 and ALKINDI SPRINKLE could exceed $50 million annually.

Challenges Ahead

  • Risks associated with discovering, developing, and commercializing drugs.
  • Uncertainties related to regulatory filings and approvals.
  • Risks related to building a business around such drugs.
  • Dependence on successful development and commercialization of product candidates.
  • Competition from other pharmaceutical companies.