-First Quarter 2017 Net Revenues of $26.0
Million-
-Cost Savings Plan Expected to Reduce 2017 Expenses by
$23.0 Million; Improved 2017 Adjusted
EBITDA Guidance-
-Currently Implementing a Bold Program Aimed at Allowing All
Patients to Access Yosprala for Only $10.00 Per Month-
MISSISSAUGA, Ontario,
May 9, 2017 /CNW/ -- Aralez
Pharmaceuticals Inc. (NASDAQ: ARLZ) (TSX: ARZ)
(Aralez or the Company) today announced
financial results for the first quarter ended March 31, 2017. The Company also highlighted
certain recent corporate and commercial achievements. All figures
are in U.S. dollars.
"We are pleased to report a solid first quarter of 2017,
together with important updates to our business addressing a number
of the challenges we face," said Adrian
Adams, Chief Executive Officer of Aralez. "We are making a
bold and significant change to our pricing strategy for
Yosprala® aimed at allowing
all patients to access the product for only $10.00 per month. In addition, we continue to
implement our cost savings plan to further improve our cost
structure and balance sheet to maximize and preserve our financial
flexibility. Our updated financial guidance for 2017 reflects our
commitment to reaching break-even on an Adjusted EBITDA basis this
year. We also continue to opportunistically look at business
development opportunities with a strong focus on value creating and
transformative M&A with the goal of enhancing shareholder
value."
Company Highlights:
- The Company is currently implementing a bold, patient friendly
program aimed at allowing all patients to access Yosprala for only
$10.00 per month, regardless of
coverage or copay level set by the insurer. This program will
be available for all patients through retail pharmacies or through
select national mail order partners.
- The Company has begun implementing cost savings initiatives
that are expected to reduce our 2017 operating expenses by
approximately $23.0 million, of which
approximately $9.0 million was
included in our original 2017 Adjusted EBITDA guidance. In
addition, the Company has also identified other initiatives to
drive an increase in profitability, such as an increased focus on
the Canadian core growth brands and the Board of Directors recent
decision to reduce the cash portion of their fees for 2017 by
half.
- On May 8, 2017, Aralez subsidiary
Pozen Inc. (Pozen) entered into a license agreement with a
multi-national pharmaceutical company pursuant to which Pozen
granted a non-exclusive license to such company under a Japanese
patent owned by Pozen. The non-exclusive license is limited to
Japan. In consideration for this
non-exclusive license, Pozen will receive an upfront payment of
$4.0 million, plus contingent
milestone payments and royalties under certain circumstances.
- On April 24, 2017, the Company
commenced its phased launch of Zontivity® utilizing 15 sales
representatives deployed to high volume physicians who treat
post-myocardial infarction (MI) and Peripheral Artery Disease (PAD)
patients. The Phase 2, full-scale launch is expected to begin in
early June 2017 with 75 sales
representatives targeting approximately 12,000 physicians made up
of cardiologists, primary care and vascular surgeons.
- On April 6, 2017, Aralez
Pharmaceuticals US Inc. (APUS) and the United States Government
(the Government) entered into a Modification of Contract for
Toprol-XL®
pursuant to which the Government exercised its first renewal option
under the VA National Contract between APUS and the Government (the
VA Contract), extending the term of the VA Contract by one year to
April 28, 2018 with reduced pricing
for the duration thereof.
"Deerfield Partners remains fully supportive of Aralez and its
management team as the company navigates its way through recent
challenges," said James Flynn,
Managing Partner at Deerfield. "We
are encouraged by the new pricing strategy for Yosprala and the
prospects for Zontivity."
Cost Savings Initiatives
The Company previously
announced in April 2017 that it had
begun implementing cost savings initiatives as part of the
Company's ongoing objective to maximize value from its assets and
preserve financial flexibility. The total expected operating
expense reduction in 2017 of approximately $23.0 million includes the previously announced
32% reduction in its U.S. sales force, which is expected to yield
2017 savings of approximately $5.5
million ($7.5 million on an
annual basis), a decrease of approximately $9.0 million in 2017 commercial spend, which
primarily relates to non-direct marketing spend on Yosprala, and
decreased 2017 departmental expenses across the business of
approximately $8.5 million. While
Aralez has made significant reductions to its expenses, the Company
plans to invest an additional $7.0
million to support a successful phased launch of Zontivity
that commenced on April 24, 2017,
which the Company views as an increasingly attractive opportunity.
The Company also continues to assess various business development
opportunities with the goal of providing improved cash flow and an
enhanced platform for creating value.
First Quarter 2017 Financial Results
Aralez's
financial results for the three months ended March 31, 2016 include the operations of Tribute
Pharmaceuticals Canada Inc. (Tribute) from February 5, 2016, the closing date of the Pozen
and Tribute merger transaction (the Merger), through March 31, 2016, but do not include the results of
Zontivity or Toprol-XL and its currently marketed authorized
generic (the Toprol-XL franchise) as these acquisitions were
completed on September 6, 2016 and
October 31, 2016, respectively.
Aralez's financial results for the three months ended March 31, 2017 include the results of Tribute,
Zontivity and the Toprol-XL franchise.
Total revenues for the three months ended March 31, 2017 were $26.0
million compared to $8.1
million for the three months ended March 31, 2016. Net product revenues of
$6.7 million for the three months
ended March 31, 2017 primarily
related to the product portfolio acquired with the acquisition of
Tribute as well as net product revenues from Yosprala and
Fibricor®.
Other revenues of $19.3 million for
the three months ended March 31, 2017
were comprised of net revenues of $15.6
million from the acquisitions of the Toprol-XL franchise and
Zontivity, which are recorded net of related cost of product
revenues and fees paid during the respective transition service
periods, and Vimovo® royalties of
$3.7 million. Pursuant to the
Company's agreement with Horizon in the U.S., subject to certain
conditions described in our public filings, Aralez is guaranteed a
quarterly minimum royalty amount (calculated based on a minimum
annual royalty of $7.5 million),
which was reflected in the Company's first quarter results. Net
product revenues of $3.6 million for
the three months ended March 31, 2016
related to the Tribute product portfolio acquired in the Merger,
which was completed on February 5,
2016. Other revenues of $4.5
million for the three months ended March 31, 2016 were comprised solely of Vimovo
royalties.
Cost of product revenues were $2.8
million for the three months ended March 31, 2017
compared to $2.5 million for the
three months ended March 31, 2016. The increase related
primarily to costs of product revenues for the full quarter in 2017
from the Company's product portfolio that was acquired as part of
the Merger in February 2016.
SG&A expenses were $30.8
million for the three months ended March 31, 2017 compared to $37.5 million for the three months ended
March 31, 2016. The decrease in
SG&A expenses was primarily driven by costs related to the
Merger in the prior year of approximately $19.4 million, partially offset by increased
costs related to the build out of our U.S. sales force in 2016 and
increased promotional expenses in the U.S. during the first quarter
of 2017.
R&D expenses for the three months ended March 31, 2017 were $0.1
million compared to $4.4
million for the three months ended March 31, 2016. The decrease related primarily to
higher costs incurred in the first quarter of 2016 for Yosprala in
advance of its U.S. approval in September
2016.
Amortization of intangible assets of $8.5
million for the three months ended March 31, 2017 related to the acquisitions of
Tribute, Zontivity and the Toprol-XL franchise. Amortization of
intangible assets for the three months ended March 31, 2016 of $1.3
million related solely to the acquisition of Tribute.
The change in fair value of contingent consideration of
$4.4 million for the three months
ended March 31, 2017 related to
accretion for the Toprol-XL franchise and Zontivity acquisitions.
There was no expense related to fair value changes in contingent
consideration for the three months ended March 31, 2016.
Interest expense of $6.7 million
for the three months ended March 31,
2017 was primarily attributable to the borrowing of
$200 million under the Company's
credit facility in the fourth quarter of 2016 in connection with
the acquisitions of Zontivity and the Toprol-XL franchise and
$75 million convertible
notes. Interest expense of $0.3
million for the three months ended March 31, 2016 related to the $75 million convertible notes.
Other income, net for the three months ended March 31, 2017, was $0.4
million compared to $4.8
million for the three months ended March 31, 2016, a decrease of $4.4 million. The decrease principally related to
a $4.6 million decrease in the fair
value of the warrants liability acquired from Tribute during the
prior year, offset by a $0.3 million
gain from the sale of a building in London, Ontario during the three months ended
March 31, 2017.
The net loss for the three months ended March 31, 2017 was $27.5
million, or $0.42 loss per
share on a fully diluted basis, compared to a net loss for the
three months ended March 31, 2016 of
$33.8 million, or $0.73 loss per share on a fully diluted
basis.
Adjusted EBITDA was ($3.6) million
for the three months ended March 31,
2017 compared to Adjusted EBITDA of ($11.1) million for the three months ended
March 31, 2016.
Balance Sheet
As of March 31,
2017, approximately 65.8 million of the Company's common
shares were issued and outstanding and the Company had cash and
cash equivalents of approximately $73.7
million.
Updated 2017 Guidance
Aralez's estimates are based on
projected results of the Company for the year ending
December 31, 2017 and reflect management's current beliefs and
expectations about, among other things, prescription trends,
competition, pricing levels, inventory levels, and anticipated
future events. The Company's guidance on Adjusted EBITDA includes,
among other things, costs to support the commercialization efforts
with respect to Yosprala, Zontivity and the Canadian product
portfolio as well as costs to support the global corporate
structure. It excludes share-based compensation expense and certain
discrete costs, including merger and product acquisition-related
expenses. See "Use of Non-GAAP Financial Measures"
below.
For the year ending December 31, 2017, assuming, among
other factors more particularly set out in "Cautionary Note
Regarding Forward-Looking Statements" below, the Company currently
expects:
- 2017 Net Revenues to be in a range of $80 million to $100 million; and
- Updated 2017 Adjusted EBITDA to be in a range of $(5) million to $5 million.
See the table below for a comparison of the Company's original
2017 guidance compared to the updated 2017 guidance:
Measure
|
2017 Original
Guidance
|
2017 Updated
Guidance
|
Net
Revenues
|
$80 million to $100
million
|
$80 million to $100
million
|
Adjusted
EBITDA
|
$(25) million to
$(10) million
|
$(5) million to $5
million
|
First Quarter Results Webcast
Aralez will host a
webcast this morning, May 9, 2017 at
9:00 a.m. ET to present results for
the first quarter 2017. The webcast can be accessed live and will
be available for replay at www.aralez.com.
Conference Call Details
Date: Tuesday, May 9, 2017
Time: 9:00 a.m. ET
Dial-in (U.S.): 877-407-8037
Dial-in (International): 201-689-8037
About Aralez Pharmaceuticals Inc.
Aralez
Pharmaceuticals Inc. (NASDAQ: ARLZ) (TSX: ARZ) is a global
specialty pharmaceutical company focused on delivering meaningful
products to improve patients' lives while creating shareholder
value by acquiring, developing and commercializing products
primarily in cardiovascular, pain and other specialty areas.
Aralez's Global Headquarters is in Ontario, Canada, the U.S. Headquarters is in
Princeton, New Jersey and the
Irish Headquarters is in Dublin,
Ireland. More information about Aralez can be found at
www.aralez.com.
Use of Non-GAAP Financial Measures
The Company has
presented certain non-GAAP financial measures, including Adjusted
EBITDA (as defined below). These non-GAAP financial measures
exclude certain amounts, expenses or income, from the corresponding
financial measures determined in accordance with accounting
principles generally accepted in the U.S. (GAAP).
Adjusted EBITDA for the Company is defined as net income (loss)
before income taxes, interest expense and financing costs,
depreciation and amortization, stock-based compensation and gains
or losses related to warrants, changes to the fair value of
contingent consideration, restructuring costs, retention costs,
impact of an acquisition of a business or product, including
transaction related expenses, acquired in-process R&D, and tax
equalization payments, interest income, the impact of changes in
foreign currency rates, asset impairment charges, losses or gains
on sale of assets, losses or gains on extinguishment or
modification of debt and the impact of a sale or disposition of a
business or product, including discontinued operations.
Management believes this non-GAAP information is useful for
investors, taken in conjunction with GAAP financial statements,
because it provides greater transparency regarding the Company's
operating performance by excluding (i) non-cash expenses that are
substantially dependent on changes in the market price of our
common shares, and (ii) discrete items, such as merger and
acquisition-related costs, including transaction fees, and
severance and retention expenses, that may not be consistently
recurring. Management uses these measures, among other factors, to
assess and analyze operational results and to make financial and
operational decisions. Non-GAAP information is not prepared under a
comprehensive set of accounting rules and should only be used
to supplement an understanding of the Company's operating results
as reported under GAAP, not as a substitute for GAAP. In addition,
these non-GAAP financial measures are unlikely to be comparable
with non-GAAP information provided by other companies. The
determination of the amounts that are excluded from non-GAAP
financial measures is a matter of management judgment and depends
upon, among other factors, the nature of the underlying expense or
income amounts. Reconciliations between non-GAAP financial measures
and the most comparable GAAP financial measures are included in the
tables accompanying this press release.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain statements that constitute
"forward-looking statements" within the meaning of applicable
securities laws. Forward-looking statements include, but are not
limited to, statements regarding the Company's expectation to
reduce 2017 operating expenses by approximately $23.0 million through its cost savings plan (of
which approximately $9.0 million was
included in our original 2017 Adjusted EBITDA guidance), including
a decrease of approximately $5.5
million expected in 2017 due to the previously announced
sales force reduction ($7.5 million
on an annual basis), a decrease of approximately $9.0 million in 2017 commercial spend and
decreased 2017 departmental expenses across the business of
approximately $8.5 million, that the
Company plans to invest an additional $7.0
million to support the successful phased launch of Zontivity
which the Company views as an increasingly attractive opportunity,
the Company's commitment to reaching break-even this year on
an Adjusted EBITDA basis, that the Company has identified other
initiatives to drive an increase in profitability, including an
increased focus on the Canadian core growth brands, implementing
our cost savings plan to further improve our cost structure and
balance sheet to maximize and preserve financial flexibility, that
the Company is currently implementing a bold and significant change
to its pricing strategy for Yosprala aimed at allowing all patients
to access the product for only $10.00
per month regardless of coverage or co-pay level set by their
insurer, that this program will be available for all patients
through retail pharmacies or through select national mail order
partners, that we continue to look opportunistically at business
development opportunities with a strong focus on value creating and
transformative M&A with the goal of enhancing shareholder
value, providing improved cash flows and an enhanced platform for
creating value, that the full launch of Zontivity is expected in
early June 2017 with 75 sales
representatives targeting approximately 12,000 physicians, that
Deerfield Partners remains fully supportive of Aralez and its
management team, the extension of the VA Contract, payments or
potential payments under the non-exclusive Japanese patent license
entered into by Pozen, the outlook for the Company's future
business and financial performance, including the Company's updated
2017 guidance on Adjusted EBITDA and net revenues, our strategies,
plans, objectives, goals, prospects, future performance or results
of current and anticipated products, and other statements that are
not historical facts, and such statements are typically identified
by use of terms such as "may," "will," "would," "should," "could,"
"expect," "plan," "intend," "anticipate," "believe," "estimate,"
"predict," "likely," "potential," "continue" or the negative or
similar words, variations of these words or other comparable words
or phrases, although some forward-looking statements are expressed
differently.
You should be aware that the forward-looking statements included
herein represent management's current judgment and expectations,
and are based on current estimates and assumptions made by
management in light of its experience and perception of historical
trends, current conditions and expected future developments, as
well as other factors that it believes are appropriate and
reasonable under the circumstances, but there can be no assurance
that such estimates and assumptions will prove to be correct and,
as a result, the forward-looking statements based on those
estimates and assumptions could prove to be incorrect. Accordingly,
actual results, level of activity, performance or achievements or
future events or developments could differ materially from those
expressed or implied in the forward-looking statements. Material
factors, risks or assumptions that were applied or taken into
account in providing updated financial guidance for the year ending
December 31, 2017, including with
respect to the statements that Aralez's net revenues are expected
to be in the range of $80 million to $100
million and Adjusted EBITDA is expected to be in the range
of $(5) million to $5 million
include, but are not limited to, (i) successfully integrating
Zontivity and the Toprol-XL franchise, (ii) expected costs to
support the commercialization efforts with respect to Yosprala,
Fibricor, Zontivity (in process of being re-launched) and the
Canadian product portfolio as well as expected costs to support the
global corporate structure, (iii) the exclusion of any impact from
additional potential strategic business transactions, such as
mergers, acquisitions, divestures, or financings that may be
consummated, (iv) an increase in prescription trends and revenues
for both Yosprala and Zontivity in 2017 relative to 2016, (v) with
respect to the Toprol-XL franchise, pricing with respect to the AG
business at or near current levels and pricing with respect to VA
business as reflected in our modified VA National Contract, (vi)
our ability to source and qualify suppliers for our drugs,
including for Yosprala, (vii) our ability to mitigate legal and
regulatory risks and uncertainties, including ongoing litigation
related to Vimovo and Yosprala, that may negatively impact our
expectations regarding our products and product candidates, (viii)
future performance of our commercialization partners being in line
with our expectations and the impact such performance is
anticipated to have being consistent with our expectations with
respect to our revenue projections, (ix) currency rates remaining
at or near current levels for the remainder of fiscal 2017, (x)
ongoing operational activities to manage expenses and improve
profitability; and (xi) prescription trends, competition, pricing
levels, inventory, and the anticipated timing of future product
launches and events remaining in line with management's current
beliefs. Readers are cautioned that actual future operating results
and economic performance of the Company, including with respect to
our net revenues and Adjusted EBITDA for the year ending
December 31, 2017, are subject to a
number of risks and uncertainties, including, among other things,
those described below, and could differ materially from what is
currently expected as set out in this press release.
In addition, our operations and 2017 updated financial guidance
involve risks and uncertainties, many of which are outside of our
control, and any one or any combination of these risks and
uncertainties could also affect whether the forward-looking
statements ultimately prove to be correct and could cause our
actual results, level of activity, performance or achievements or
future events or developments to differ materially from those
expressed or implied by the forward- looking statements. These
risks and uncertainties include, without limitation, our inability
to maintain a sales force of sufficient scale for the
commercialization of our products in a timely and cost-effective
manner; our failure to successfully commercialize our products and
product candidates; competition, including increased generic
competition; costs and delays in the development and/or approval of
our product candidates (including Yosprala in the EU), including as
a result of the need to conduct additional studies or due to issues
with third-party API or finished product manufacturers, or the
failure to obtain such approval of our product candidates for all
expected indications, including as a result of changes in
regulatory standards or the regulatory environment during the
development period of any of our product candidates; with respect
to certain products, dependence on reimbursement from third-party
payors and the possibility of a failure to obtain coverage or
reduction in the extent of reimbursement; the inability to maintain
or enter into, and the risks resulting from our dependence upon,
collaboration or contractual arrangements necessary for the
development, manufacture, commercialization, marketing, sales and
distribution of any products, including our dependence on
AstraZeneca AB and Horizon Pharma USA, Inc. for the sales and marketing of
Vimovo, our dependence on Patheon Pharmaceuticals Inc. for the
manufacture of Yosprala, our dependence on Schering-Plough
(Ireland) Company for the supply
of Zontivity and our dependence on AstraZeneca AB for the
manufacture and supply of Toprol-XL and its currently marketed
authorized generic (AG); our dependence on maintaining and renewing
contracts with customers, distributors and other counterparties
(certain of which may be under negotiation from time to time),
including our inability to renew existing contracts on favorable
terms, and the risks that we may not be able to maintain our
existing terms with certain customers, distributors and other
counterparties; our ability to protect our intellectual property
and defend our patents; regulatory obligations and oversight;
failure to successfully identify, execute, integrate, maintain and
realize expected benefits from new acquisitions, such as the
acquisitions of Tribute, Zontivity and Toprol-XL and its AG;
failure to realize the expected benefits of our initiatives to
reduce costs and improve profitability; fluctuations in the value
of certain foreign currencies, including the Canadian dollar, in
relation to the U.S. dollar, and other world currencies; changes in
laws and regulations, including tax laws and unanticipated tax
liabilities and regulations regarding the pricing of pharmaceutical
products; risks related to our financing and liquidity; general
adverse economic, market and business conditions; and those risks
detailed from time-to-time under the caption "Risk Factors" and
elsewhere in the Company's Securities and Exchange Commission (SEC)
filings and reports and Canadian securities law filings, including
in our Annual Report on Form 10-K for the year ended December 31, 2016 and our Quarterly Report on
Form 10-Q for the quarterly period ended March 31, 2017, which will be available on EDGAR
at www.sec.gov, on SEDAR at www.sedar.com, and on the Company's
website at www.aralez.com, and those described from time to time in
our future reports filed with the SEC and applicable securities
regulatory authorities in Canada.
You should not place undue importance on forward-looking statements
and should not rely upon this information as of any other date. We
undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, unless required by law.
Aralez Pharmaceuticals US Inc. Contact:
Nichol L. Ochsner
Executive Director, Investor Relations & Corporate
Communications
732-754-2545
nochsner@aralez.com
ARALEZ
PHARMACEUTICALS INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
|
(in thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2017
|
|
2016
|
|
Revenues:
|
|
|
|
|
|
|
|
Product revenues,
net
|
|
$
|
6,686
|
|
$
|
3,565
|
|
Other
revenues
|
|
|
19,283
|
|
|
4,492
|
|
Total revenues,
net
|
|
|
25,969
|
|
|
8,057
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Cost of product
revenues (exclusive of amortization shown separately
below)
|
|
|
2,756
|
|
|
2,538
|
|
Selling, general and
administrative
|
|
|
30,846
|
|
|
37,459
|
|
Research and
development
|
|
|
94
|
|
|
4,412
|
|
Amortization of
intangible assets
|
|
|
8,513
|
|
|
1,272
|
|
Change in fair value of
contingent consideration
|
|
|
4,443
|
|
|
—
|
|
Total costs and
expenses
|
|
|
46,652
|
|
|
45,681
|
|
Loss from
operations
|
|
|
(20,683)
|
|
|
(37,624)
|
|
Interest
expense
|
|
|
(6,653)
|
|
|
(307)
|
|
Other (expense) income,
net
|
|
|
411
|
|
|
4,797
|
|
Loss before income
taxes
|
|
|
(26,925)
|
|
|
(33,134)
|
|
Income tax
expense
|
|
|
552
|
|
|
654
|
|
Net loss
|
|
$
|
(27,477)
|
|
$
|
(33,788)
|
|
|
|
|
|
|
|
|
|
Basic net loss per
common share
|
|
$
|
(0.42)
|
|
$
|
(0.65)
|
|
Diluted net loss per
common share
|
|
$
|
(0.42)
|
|
$
|
(0.73)
|
|
Shares used in
computing basic net loss per common share
|
|
|
65,690
|
|
|
52,156
|
|
Shares used in
computing diluted net loss per common share
|
|
|
65,690
|
|
|
52,491
|
|
ARALEZ
PHARMACEUTICALS INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
March 31, 2017
|
|
December 31, 2016
|
|
ASSETS
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
73,729
|
|
$
|
64,943
|
|
Accounts receivable,
net
|
|
|
9,048
|
|
|
20,405
|
|
Inventory
|
|
|
4,132
|
|
|
4,548
|
|
Prepaid expenses and
other current assets
|
|
|
4,774
|
|
|
2,435
|
|
Property and
equipment, net
|
|
|
8,172
|
|
|
7,316
|
|
Goodwill
|
|
|
77,384
|
|
|
76,694
|
|
Other intangible
assets, net
|
|
|
332,306
|
|
|
340,194
|
|
Other long-term
assets
|
|
|
1,017
|
|
|
842
|
|
Total
assets
|
|
$
|
510,562
|
|
$
|
517,377
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
25,942
|
|
$
|
8,833
|
|
Accrued
expenses
|
|
|
26,275
|
|
|
32,141
|
|
Short-term contingent
consideration
|
|
|
10,266
|
|
|
10,430
|
|
Other current
liabilities
|
|
|
6,288
|
|
|
5,870
|
|
Long-term
debt
|
|
|
274,467
|
|
|
274,441
|
|
Deferred tax
liability
|
|
|
3,305
|
|
|
3,273
|
|
Long-term contingent
consideration
|
|
|
65,167
|
|
|
60,685
|
|
Other long-term
liabilities
|
|
|
2,630
|
|
|
2,218
|
|
Total
liabilities
|
|
|
414,340
|
|
|
397,891
|
|
Total shareholders'
equity
|
|
|
96,222
|
|
|
119,486
|
|
Total liabilities and
shareholders' equity
|
|
$
|
510,562
|
|
$
|
517,377
|
|
ARALEZ
PHARMACEUTICALS INC.
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
$
|
(27,477)
|
|
$
|
(33,788)
|
|
Share-based
compensation
|
|
|
2,824
|
|
|
3,910
|
|
Severance and
retention
|
|
|
62
|
|
|
1,094
|
|
Depreciation and
amortization expense
|
|
|
8,875
|
|
|
1,311
|
|
Interest
expense
|
|
|
6,653
|
|
|
307
|
|
Change in fair value of
contingent consideration
|
|
|
4,443
|
|
|
—
|
|
Change in fair value of
warrants liability
|
|
|
(24)
|
|
|
(4,581)
|
|
Transaction related
expenses
|
|
|
823
|
|
|
8,183
|
|
Excise tax equalization
payments
|
|
|
—
|
|
|
12,043
|
|
Other
|
|
|
(373)
|
|
|
(216)
|
|
Income tax
expense
|
|
|
552
|
|
|
654
|
|
Adjusted
EBITDA
|
|
$
|
(3,642)
|
|
$
|
(11,083)
|
|
ARALEZ
PHARMACEUTICALS INC.
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Updated 2017
Guidance Range
|
|
|
|
Low
End
|
|
High
End
|
|
|
|
Year
ended
December 31,
2017
|
|
Year
ended
December 31,
2017
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
$
|
(100,900)
|
|
$
|
(79,700)
|
|
Share-based
compensation
|
|
|
15,000
|
|
|
13,500
|
|
Severance and
retention
|
|
|
1,500
|
|
|
500
|
|
Depreciation and
amortization expense
|
|
|
33,000
|
|
|
31,000
|
|
Interest
expense
|
|
|
26,900
|
|
|
26,900
|
|
Change in fair value of
contingent consideration
|
|
|
13,000
|
|
|
10,000
|
|
Transaction related
expenses
|
|
|
1,500
|
|
|
800
|
|
Income tax
expense
|
|
|
5,000
|
|
|
2,000
|
|
Adjusted
EBITDA
|
|
$
|
(5,000)
|
|
$
|
5,000
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/aralez-reports-first-quarter-2017-financial-results-300453792.html
SOURCE Aralez Pharmaceuticals Inc.