Keryx Biopharmaceuticals, Inc. (Nasdaq:KERX), a biopharmaceutical
company focused on bringing innovative medicines to people with
renal disease, today announced its financial results for the fourth
quarter and year ended December 31, 2016. The company also reviewed
its commercial progress with Auryxia and upcoming milestones.
“We are off to a very good start in 2017 with Auryxia in the
dialysis patient population,” said Greg Madison, president and
chief executive officer of Keryx. “During a period when the
phosphate binder market declined, Auryxia prescriptions grew to
approximately 4,650 in January, an increase of 3.3 percent from the
approximate 4,500 prescriptions reported in December 2016.”
Mr. Madison continued, “we look forward to important milestones
over the year that would mark continued progress toward our goal of
maximizing Auryxia’s potential. These include continued growth in
the U.S. dialysis market, acceptance and assignment of a target
review date for the supplemental new drug application submitted in
January to the U.S. FDA to expand the indication of Auryxia for the
treatment of iron deficiency anemia (IDA) in adults with
non-dialysis dependent chronic kidney disease, and the subsequent
approval and launch in late 2017. If approved for this indication,
Auryxia could be the first FDA-approved oral medicine to treat IDA
in this patient population.”
FOURTH QUARTER, FULL YEAR 2016 FINANCIAL RESULTS AND
RECENT BUSINESS HIGHLIGHTSOn January 8, 2017, Keryx
provided a review of its preliminary fourth quarter and full year
2016 commercial progress and financial results. The company today
provided final results for the same periods in 2016, and the
following updates:
Auryxia Recent Commercial Progress
- Fourth quarter 2016 net U.S. product sales for Auryxia were
$8.2 million compared to $4.8 million for the fourth quarter of
2015, an approximately 70 percent increase despite the three-month
supply interruption from August to November 2016. Full year 2016
net U.S. product sales for Auryxia were $27.2 million compared to
$10.1 million for the full year 2015, an approximately 170 percent
year-over-year increase.
- Approximately 8,700 prescriptions for Auryxia were reported in
the fourth quarter of 2016, which included approximately 4,500
prescriptions reported for the month of December, the first full
month of sales post resupply of Auryxia. This compares to
approximately 5,000 prescriptions for the month of July 2016, the
last full month of sales prior to the supply
interruption.
- Keryx reported today that in January 2017 Auryxia prescriptions
increased to approximately 4,650, or 3.3 percent from December
2016, while the overall market for phosphate binder prescriptions
declined by 2.6 percent.
Potential Label Expansion Opportunity
- Keryx is executing on its strategy to leverage its commercial
capabilities. In January 2017, the company submitted a supplemental
new drug application seeking label expansion for Auryxia to include
the treatment of iron deficiency anemia (IDA) in adults with
non-dialysis dependent chronic kidney disease (NDD-CKD). The
company estimates that of the 1.7 million Americans with CKD under
the care of a nephrologist, approximately 650,000 people are
treated for IDA and another 250,000 – 400,000 people could have IDA
but are not treated today.
- Detailed results from the company’s pivotal Phase 3 trial that
evaluated ferric citrate for the treatment of IDA in adults with
stage 3 - 5 NDD-CKD were published online in the Journal of the
American Society of Nephrology in January. Publication of the data
should advance understanding of the potential importance of Auryxia
to treat this serious disease.
Fourth Quarter and Year Ended December 31, 2016
Financial Results
Total revenues for the quarter ended December
31, 2016 were approximately $9.5 million, compared with $5.8
million during the same period in 2015. Total revenue for the
fourth quarter of 2016 consist of approximately $8.2 million in
ex-factory Auryxia net U.S. product sales, compared to $4.8 million
in the fourth quarter of 2015, which were recorded based on actual
prescriptions written during the period. Total revenue for the
fourth quarter of 2016 also includes $1.3 million in license
revenues as compared to $1.0 million during the same period in
2015.
For the year ended 2016, total revenues were approximately $32.0
million as compared to $13.7 million in 2015. Total revenues for
2016 include $27.2 million of Auryxia net U.S. product sales and
$4.8 million in license revenues as compared to $10.1 million and
$3.5 million, respectively, in 2015.
Cost of goods sold for the quarter ended
December 31, 2016 were approximately $13.4 million, compared with
$1.1 million during the same period in 2015. Cost of goods sold for
the fourth quarter of 2016 include approximately $11.8 million in
write-offs of work-in-process inventory that was determined to no
longer be suitable for commercial manufacture.
For the year ended 2016, total cost of goods sold were
approximately $37.8 million, as compared to $4.5 million in 2015.
Total 2016 cost of goods include $25.6 million in write-offs of
work-in-process inventory that was determined to no longer be
suitable for commercial manufacture and approximately $2.6 million
related to manufacturing charges incurred as a result of not fully
utilizing planned production at the company’s third-party drug
product manufacturers. Total 2015 cost of goods sold included $2.6
million related to manufacturing charges incurred as a result of
not fully utilizing planned production at the company’s third-party
drug product manufacturers.
Research and development expenses for the
quarter ended December 31, 2016 were $6.2 million, as compared to
$8.0 million during the same period in 2015. The decrease was
primarily related to a reduction in development work at our
contract manufacturers following approval of a second drug product
contract manufacturer in the fourth quarter of 2016, as well as a
decrease in clinical costs following the completion of our Phase 3
clinical trial in early 2016.
Selling, general and administrative expenses
for the quarter ended December 31, 2016 were $23.0 million, as
compared to $21.6 million during the same period in 2015. The
increase was related to the continued commercialization of Auryxia,
including an expanded sales force in the fourth quarter of 2016 as
compared to the same period in 2015.
Net loss for the quarter ended December 31,
2016 was $33.8 million, or $0.32 per share, compared to a net loss
of $37.8 million, or $0.36 per share, for the comparable period in
2015. For the full year 2016, net loss was $161.1 million, or
$1.52 per share, as compared to $123.1 million, or $1.19 per share
in 2015.
Cash and cash equivalents as of December 31,
2016 totaled approximately $111.8 million.
Conference Call Information Keryx will host an
investor conference call today, Wednesday, March 1, 2017, at 8:00
a.m. ET to discuss financial results for the fourth quarter and
full year of 2016. To participate in the conference call, please
call 1-(888) 396-2320 (U.S.), 1-(774) 264-7560 (outside the U.S.),
call-in ID: 74238520. The call will also be webcast with slides,
which will be accessible through the Investors section of the
company's website at www.keryx.com. The audio replay will be
available at http://www.keryx.com for approximately 15 days after
the call.
About Iron Deficiency Anemia, NDD-CKDIron
deficiency anemia is a common complication in patients with
non-dialysis dependent chronic kidney disease (NDD-CKD), and the
prevalence and severity of IDA increases as kidney disease
progresses. It is estimated that there are approximately 1.6
million people living in the U.S. with stage 3-5 non-dialysis
dependent chronic kidney disease and iron deficiency anemia.
Efficacy and tolerability of current oral iron supplements are
mixed. Intravenous (IV) iron administration is associated with
important risks and burdens.
About Auryxia Auryxia (ferric citrate) was
approved by the U.S. Food and Drug Administration on September 5,
2014 and is indicated in the U.S. for the control of serum
phosphorus levels in patients with CKD on dialysis. The U.S.
approval of Auryxia was based on data from the company's Phase 3
registration program in dialysis patients. In the Phase 3 clinical
trials, Auryxia effectively reduced serum phosphorus levels to
within the KDOQI guidelines range of 3.5 to 5.5 mg/dL.
Auryxia binds with dietary phosphate in the GI tract and
precipitates as ferric phosphate. The unbound portion of Auryxia
has been shown to increase serum iron parameters including ferritin
and transferrin saturation (TSAT). Iron absorption from Auryxia may
lead to excessive elevations in iron stores. Accordingly,
physicians should assess and monitor iron parameters before
starting and while on Auryxia, and may need to decrease or
discontinue IV iron for these patients. The most common adverse
events for Auryxia treated patients were gastrointestinal related,
including diarrhea, nausea, vomiting and constipation. For more
information about Auryxia and the U.S. full prescribing
information, visit www.Auryxia.com.
Use of ferric citrate in patients with NDD-CKD and IDA, as
highlighted above, is investigational and has not been determined
to be safe or efficacious.
IMPORTANT U.S. SAFETY INFORMATION FOR AURYXIA® (ferric
citrate)Contraindication: Patients
with iron overload syndrome, e.g. hemochromatosis, should not take
Auryxia®.
Iron Overload: Iron absorption from
Auryxia may lead to increased iron in storage sites. Iron
parameters should be monitored prior to and while on Auryxia.
Patients receiving IV iron may require a reduction in dose or
discontinuation of IV iron therapy.
Accidental Overdose of Iron: Accidental
overdose of iron containing products is a leading cause of fatal
poisoning in children under 6 years of age. Keep Auryxia away
from children as it contains iron. Call a poison control
center or your physician in case of an accidental overdose in a
child.
Patients with Gastrointestinal Bleeding or
Inflammation: Safety has not been established for
these patients.
Adverse Events: The most common adverse
events with Auryxia were diarrhea (21%), nausea (11%), constipation
(8%), vomiting (7%) and cough (6%). Gastrointestinal adverse
reactions were the most common reason for discontinuing Auryxia
(14%). Auryxia contains iron and may cause dark stools, which is
considered normal with oral medications containing iron.
Drug Interactions: Doxycycline should be
taken at least 1 hour before Auryxia. Ciprofloxacin should be
taken at least 2 hours before or after Auryxia.
For Full Prescribing Information for Auryxia, please
visit http://auryxia.com/important-safety-information/
Keryx Biopharmaceuticals,
Inc. |
Condensed Consolidated Statement of
Operations |
(In thousands, except share and per share
amounts) |
(unaudited) |
|
|
Three Months EndedDecember
31, |
Year EndedDecember
31, |
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
|
Revenues: |
|
|
|
|
|
|
Net U.S. Auryxia
product sales |
|
$ |
8,228 |
|
$ |
4,770 |
|
$ |
27,173 |
|
$ |
10,141 |
|
|
License
revenue |
|
|
1,305 |
|
|
1,013 |
|
|
4,810 |
|
|
3,539 |
|
|
Total
Revenues |
|
|
9,533 |
|
|
5,783 |
|
|
31,983 |
|
|
13,680 |
|
|
|
|
|
|
|
|
|
Costs
and Expenses: |
|
|
|
|
|
|
Cost of goods
sold |
|
|
13,437 |
|
|
1,075 |
|
|
37,803 |
|
|
4,520 |
|
|
License
expenses |
|
|
783 |
|
|
608 |
|
|
2,886 |
|
|
2,124 |
|
|
Research and
development |
|
|
6,185 |
|
|
7,990 |
|
|
29,504 |
|
|
36,694 |
|
|
Selling, general
and administrative |
|
|
23,035 |
|
|
21,563 |
|
|
84,553 |
|
|
81,410 |
|
|
Total Costs and
Expenses |
|
|
43,440 |
|
|
31,236 |
|
|
154,746 |
|
|
124,748 |
|
|
|
|
|
|
|
|
|
Operating
Loss |
|
|
(33,907 |
) |
|
(25,453 |
) |
|
(122,763 |
) |
|
(111,068 |
) |
|
Other Income: |
|
|
|
|
|
|
Other income (expense),
net |
|
|
143 |
|
|
(12,308 |
) |
|
(38,252 |
) |
|
(11,987 |
) |
|
Loss Before
Income Taxes |
|
|
(33,764 |
) |
|
(37,761 |
) |
|
(161,015 |
) |
|
(123,055 |
) |
|
|
|
|
|
|
|
|
Income taxes |
|
|
20 |
|
|
23 |
|
|
80 |
|
|
90 |
|
|
Net
Loss |
|
$ |
(33,784 |
) |
$ |
(37,784 |
) |
$ |
(161,095 |
) |
$ |
(123,145 |
) |
|
|
|
|
|
|
|
|
Net Loss Per
Common ShareBasic and diluted net loss per common
share |
|
$ |
(0.32 |
) |
$ |
(0.36 |
) |
$ |
(1.52 |
) |
$ |
(1.19 |
) |
|
|
|
|
|
|
|
|
Shares Used in
Computing Net Loss Per Common Share |
|
|
|
|
|
|
Basic and diluted |
|
|
105,962,622 |
|
|
105,204,495 |
|
|
105,845,121 |
|
|
103,898,399 |
|
Selected Consolidated Balance Sheet
Data |
(In thousands) |
(unaudited) |
|
|
|
December 31, 2016 |
|
December 31, 2015 |
Assets |
|
|
|
|
Cash and cash
equivalents |
|
$ |
111,810 |
|
|
$ |
200,290 |
Inventory |
|
$ |
12,681 |
|
|
$ |
41,881 |
Total assets |
|
$ |
141,427 |
|
|
$ |
258,685 |
|
|
|
|
|
Liabilities and
Stockholders’ (Deficit) Equity |
|
|
|
|
Accounts payable and
accrued expenses |
|
$ |
21,190 |
|
|
$ |
26,795 |
Deferred revenue |
|
$ |
-- |
|
|
$ |
3,526 |
Derivative
liability |
|
$ |
-- |
|
|
$ |
46,686 |
Convertible senior
notes, net of discount |
|
$ |
125,000 |
|
|
$ |
90,773 |
Total liabilities |
|
$ |
149,723 |
|
|
$ |
171,751 |
Stockholders’ (deficit)
equity |
|
$ |
(8,296 |
) |
|
$ |
86,934 |
Forward Looking Statements Some of the
statements included in this press release, particularly those
regarding the commercialization and ongoing clinical development of
Auryxia and the submission of an sNDA to the FDA to
expand the label of ferric citrate to include the treatment of IDA
in adults with stage 3-5 NDD-CKD and the potential approval in this
indication and the impact thereof on Keryx, may be forward-looking
statements that involve a number of risks and uncertainties. For
those statements, we claim the protection of the safe harbor for
forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. Among the factors that could cause
our actual results to differ materially are the following: whether
we can increase adoption of Auryxia in patients with CKD on
dialysis; whether we can maintain our operating expenses to
projected levels while continuing our current clinical, regulatory
and commercial activities; the risk that the FDA may not
concur with our interpretation of our Phase 3 study results in NDD-
CKD, supportive data, conduct of the studies, or any other part of
our regulatory submission and could ultimately deny approval of
ferric citrate for the treatment of IDA in adults with stage 3-5
NDD-CKD; the risk that if approved for use in NDD-CKD that we may
not be able to successfully market Auryxia for use in this
indication; our ability to continue to supply Auryxia following the
recent resupply to the market; and other risk factors identified
from time to time in our reports filed with the Securities and
Exchange Commission. Any forward looking statements set forth in
this press release speak only as of the date of this press release.
We do not undertake to update any of these forward looking
statements to reflect events or circumstances that occur after the
date hereof. This press release and prior releases are available
at http://www.keryx.com. The information found on our website
is not incorporated by reference into this press release and is
included for reference purposes only.
About Keryx Biopharmaceuticals, Inc.Keryx
Biopharmaceuticals, Inc., with headquarters in Boston,
Massachusetts, is a commercial stage company focused on bringing
innovative medicines to people with renal disease. Keryx developed
and commercializes Auryxia® (ferric citrate), an iron-based
phosphate binder, in the U.S. Ferric citrate is marketed as
Riona® by Keryx’s Japanese partner, Japan Tobacco Inc. and
Torii Pharmaceutical Co. Ltd. In September 2015, the European
Commission granted European market authorization for Fexeric®
(ferric citrate coordination complex). Keryx has programs
underway to leverage its development and commercial infrastructure,
including evaluation of iron deficiency anemia in adults with
non-dialysis dependent chronic kidney disease and
in-licensing medicines for renal disease. For more information
about Keryx, please visit www.keryx.com.
KERYX BIOPHARMACEUTICALS CONTACTS:
Amy Sullivan
Senior Vice President, Corporate Affairs
T: 617.466.3519
amy.sullivan@keryx.com
Lora Pike
Senior Director, Investor Relations
T: 617.466.3511
lora.pike@keryx.com
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