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Mar 31, 2020
Veru Q2 2020 Earnings Report
Net revenues increased by 43% and gross profit rose by 61%.
Key Takeaways
Veru Inc. reported a strong fiscal 2020 second quarter with net revenues increasing by 43% and gross profit up by 61%. The growth was primarily driven by substantial growth in prescription sales of FC2. The company also made significant clinical progress in advanced prostate cancer with VERU-111 and initiated a Phase 2 clinical study for VERU-111 as a potential treatment for COVID-19.
Net revenues increased 43% to $9.9 million from $7.0 million.
Gross profit increased 61% to $7.4 million from $4.6 million.
Gross margin climbed to 75% of net revenues from 66%.
FC2 US prescription net revenues grew 168% to $7.0 million from $2.6 million.
Veru
Veru
Forward Guidance
Veru is focused in prostate cancer and oncology, and will pursue COVID-19 indication with VERU-111, due to the urgency of the current global pandemic.
Positive Outlook
- Initiated Phase 2 clinical trial to assess the efficacy of VERU-111 in combating COVID-19.
- Expect the first patient to be dosed within 2 weeks for COVID-19 trial.
- VERU-111 has the potential to treat both SARS-CoV-2 infection and the associated reactive severe lung inflammation in COVID-19 patients at high risk for ARDS.
- Applied for significant grant funding through both BARDA and DARPA to expedite the clinical development program of VERU-111 for COVID-19.
- Plan to advance Zuclomiphene Citrate to a Phase 3 clinical trial in men with advanced prostate cancer who experience moderate to severe hot flashes with a potential start date in late calendar year 2020.
Challenges Ahead
- There can be no assurances that any grant funding for VERU-111 COVID-19 will be provided.
- VERU-100 is anticipated to enter a Phase 2 dose-finding study with a potential start date in the third quarter of calendar year 2020.
- The expected submission of the NDA for TADFIN is the fourth quarter of calendar year 2020 or early 2021.
- The Company may be unable to develop a drug that successfully treats the COVID-19 virus in a timely manner, if at all.
- Pursuit of a COVID-19 treatment candidate may cause delays in or otherwise negatively impact other development programs.