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Jun 30, 2022

Zevra Q2 2022 Earnings Report

Reported financial results for the second quarter ended June 30, 2022 and provided a corporate update.

Key Takeaways

KemPharm reported Q2 2022 net revenue of $1.3 million and a net loss attributable to common stockholders of $24.0 million, which includes a one-time non-cash expense of $17.7 million related to the acquisition of arimoclomol.

Acquired substantially all assets and operations of Orphazyme A/S, including arimoclomol, for $12.8 million in cash.

Resubmission of the arimoclomol NDA for the treatment of NPC is expected as early as Q1 2023.

Filed IND application for KP1077, an SDX-based product candidate, for the treatment of IH and expects to initiate a Phase 2 trial by the end of 2022.

Total cash, cash equivalents, and investments were $114.5 million as of June 30, 2022.

Total Revenue
$1.3M
Previous year: $12M
-89.2%
EPS
-$0.19
Previous year: -$0.4
-52.5%
Gross Profit
$1.25M
Previous year: $11M
-88.6%
Cash and Equivalents
$115M
Previous year: $132M
-13.5%
Free Cash Flow
-$4.12M
Previous year: $16.5M
-124.9%
Total Assets
$124M
Previous year: $139M
-10.5%

Zevra

Zevra

Forward Guidance

KemPharm is well positioned for growth with a strong financial foundation and anticipates numerous milestone opportunities for 2022 and beyond.

Positive Outlook

  • NDA-stage product with a rapidly advancing clinical-stage pipeline.
  • Focus on rare central nervous system, neurodegenerative, and lysosomal storage diseases.
  • Commercialization of AZSTARYS by Corium.
  • Strong operational and financial foundation.
  • Multiple milestone opportunities anticipated for 2022 and beyond.

Challenges Ahead

  • Current macroeconomic and global equity market challenges.
  • Net loss attributable to common stockholders for Q2 2022 was ($24.0) million.
  • Q2 2022 net revenue was $1.3 million, as compared to Q2 2021 net revenue of $12.0 million.
  • Expense of $17.7 million during Q2 2022 related to acquired in-process research and development from the arimoclomol asset acquisition during the quarter.
  • Research and development expenses were $4.8 million for Q2 2022, as compared to $2.8 million in Q2 2021.