Company Pursuing U.S. Vitaros Partnership and Strategic
Alternatives
SAN DIEGO, May 03, 2018 (GLOBE NEWSWIRE) --
Apricus Biosciences, Inc. (Nasdaq:APRI), a biopharmaceutical
company seeking to advance innovative medicines in urology and
rheumatology, today reported financial results for the first
quarter of 2018 and provided a corporate update on its near-term
priorities.
"Since our recent end-of-review
meeting on the NDA for Vitaros with the FDA, we have been focused
on pursuing U.S. Vitaros partnership discussions with interested
parties. Our objective is to enable continued development and
potential approval of the Vitaros product and receive financial
terms commensurate with this development stage asset in exchange
for a sublicense or assignment of our U.S. development and/or
commercialization rights. In parallel, the Company is
evaluating strategic alternatives, which may include a sale of the
company, a business combination, a merger or reverse merger or a
license, and in order to maximize shareholder value, the Company
has engaged Canaccord Genuity LLC to assist in that process,"
said Richard Pascoe, Chief Executive Officer.
First
Quarter Financial Results
Net loss during the quarter ended
March 31, 2018 was $2.3 million, or loss per share of $0.14,
compared to net income of $8.1 million, or earnings per share of
$1.04, during the first quarter of 2017. Net income during the
quarter ended March 31, 2017 was primarily due to the $11.8 million
gain recorded upon the sale of our ex-U.S. Vitaros rights and
assets to Ferring.
For all periods presented,
financial statement activity related to our ex-U.S. Vitaros
business has been presented as discontinued operations. As of
March 31, 2018, the Company's cash totaled $5.7 million,
compared to $6.3 million as of December 31, 2016, which is expected
to fund operations through the end of 2018. The Company's cash
balance as of March 31, 2018 does not include net proceeds of
approximately $2.9 million from the Company's public equity
offering, which closed on April 2, 2018.
About
Apricus Biosciences, Inc.
Apricus Biosciences, Inc. (APRI)
is a biopharmaceutical company seeking to advance innovative
medicines in urology and rheumatology. Apricus has two product
candidates: Vitaros, a product candidate in the United States for
the treatment of erectile dysfunction, which is in-licensed from
Warner Chilcott Company, Inc., now a subsidiary of Allergan plc
(Allergan); and RayVa, a product which has completed a Phase 2a
clinical trial for the treatment of the circulatory disorder
Raynaud's phenomenon, secondary to scleroderma, for which Apricus
owns worldwide rights.
For further information on
Apricus, visit http://www.apricusbio.com.
Vitaros(TM) is
Apricus' trademark in the United States, which is pending
registration and subject to the agreement with Allergan.
Vitaros® is a
registered trademark of Ferring International Center S.A. in
certain countries outside of the United States.
RayVa(TM) is
Apricus' trademark, which is registered in certain countries
throughout the world and pending registration in the United
States.
Forward
Looking Statements
This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act, as amended. Statements in this
press release that are not purely historical are forward-looking
statements. Such forward-looking statements include, among other
things: the potential to enter into a U.S. partnership regarding
Vitaros; Apricus' ability to identify and conclude strategic
transactions or other business combinations and to maximize
shareholder value in connection with such transactions; and that
Apricus' current cash will be sufficient to fund operations through
2018. Actual results could differ from those projected in any
forward-looking statements due to a variety of reasons that are
outside the control of Apricus, including, but not limited to:
Apricus' financial position and need for additional capital to fund
its operations, which may be adversely impacted if Apricus is
unable to maintain the continued listing of its common stock on the
Nasdaq stock market; a partnership with respect to U.S. Vitaros and
any larger strategic transaction or other business combination may
not be available on acceptable terms or at all; Apricus' and any
future partner's ability to address any conditions for
approvability of Vitaros raised by the FDA in the CRL; the failure
to remain in compliance with Nasdaq continued listing requirements
which could result in Apricus' common stock being delisted from the
exchange; Apricus' ability to retain and attract key personnel;
Apricus' ability to raise additional funding that it may need to
continue to pursue its commercial and business development plans;
Apricus' ability to secure a strategic partner for RayVa;
Apricus may expend cash resources more quickly than it anticipates;
and other risks identified by Apricus in its reports filed with the
Securities and Exchange Commission (SEC). These forward-looking
statements are made as of the date of this press release, and
Apricus assumes no obligation to update the forward-looking
statements, or to update the reasons why actual results could
differ from those projected in the forward-looking statements.
Readers are urged to read the risk factors set forth in Apricus'
most recent annual report on Form 10-K, subsequent quarterly
reports filed on Form 10-Q, and other filings made with the SEC.
Copies of these reports are available from the SEC's website at
www.sec.gov or without charge from Apricus.
(Financial Information to
Follow)
CONTACT: Matthew
Beck
mbeck@troutgroup.com
Solebury Trout
(646) 378-2933
Selected
Financial Information
Condensed Consolidated Statements of
Operations
(In thousands, except per share amounts)
(Unaudited) |
|
|
|
Three
Months Ended
March 31, |
|
2018 |
|
2017 |
Operating expense |
|
|
|
Research and development |
$ |
(217 |
) |
|
$ |
(412 |
) |
General and administrative |
(2,135 |
) |
|
(1,441 |
) |
Total other income (expense) |
81 |
|
|
(1,551 |
) |
Loss from continuing operations |
(2,271 |
) |
|
(3,404 |
) |
Income from discontinued operations |
- |
|
|
11,477 |
|
Net
income (loss) |
$ |
(2,271 |
) |
|
$ |
8,073 |
|
|
|
|
|
Basic
and diluted earnings (loss) per share |
|
|
|
Continuing operations |
$ |
(0.14 |
) |
|
$ |
(0.44 |
) |
Discontinued operations |
$ |
- |
|
|
$ |
1.48 |
|
Total earnings (loss) per share |
$ |
(0.14 |
) |
|
$ |
1.04 |
|
|
|
|
|
Weighted average common shares outstanding for basic and
diluted earnings (loss) per share |
15,971 |
|
|
7,737 |
|
Condensed Consolidated Balance Sheets
(In thousands) |
|
|
March 31,
2018 |
|
December 31,
2017 |
Assets |
(Unaudited) |
|
|
Cash |
$ |
5,678 |
|
|
$ |
6,331 |
|
Other
current assets |
240 |
|
|
261 |
|
Property and equipment, net |
66 |
|
|
79 |
|
Other
long term assets |
36 |
|
|
35 |
|
Assets
of discontinued operations |
- |
|
|
- |
|
Total assets |
$ |
6,020 |
|
|
$ |
6,706 |
|
|
|
|
|
Liabilities and stockholders'
equity |
|
|
|
Current liabilities |
$ |
1,690 |
|
|
$ |
1,583 |
|
Current liabilities of discontinued operations |
- |
|
|
- |
|
Notes
payable, net |
- |
|
|
- |
|
Warrant liabilities |
- |
|
|
694 |
|
Other
long term liabilities |
42 |
|
|
58 |
|
Stockholders' equity |
4,288 |
|
|
4,371 |
|
Total liabilities and stockholders'
equity |
$ |
6,020 |
|
|
$ |
6,706 |
|