Clarus Therapeutics Holdings, Inc. (Clarus) (Nasdaq:CRXT), a
pharmaceutical company dedicated to providing solutions to unmet
medical needs by advancing androgen and metabolic therapies for men
and women, today reported financial results for the third quarter
of 2021.
“We have achieved some exciting milestones this quarter,” said
Dr. Robert Dudley, President and Chief Executive Officer of Clarus
and founder of its wholly-owned operating subsidiary, Clarus
Therapeutics, Inc. “JATENZO continues to grow in prescriptions with
positive feedback from both patients and physicians. We remain very
enthusiastic and optimistic as we focus on executing our plans to
increase awareness about the only FDA-approved oral softgel with
flexible dosing options in the testosterone replacement therapy
market by educating physicians and patients alike about the
attributes of JATENZO.”
“September 10 marked our debut as a public combined company
trading on Nasdaq,” continued Dr. Dudley. “Also in September, we
announced the continued diversification and growth of our internal
pipeline with the addition of a new technology we licensed from
McGill University to potentially treat rare conditions associated
with CoQ10 deficiencies. This, in addition to the recent
license agreement with HavaH Therapeutics for the worldwide
development and commercialization rights to CLAR-121 to potentially
treat androgen-dependent inflammatory breast disease and certain
forms of breast cancer, positions us well as we focus on our
mission to develop androgen and metabolic therapies for men and
women. We thank everyone, including our patients, physicians, and
stockholders, for their continued support.”
Third Quarter 2021 Financial Results- Third
quarter 2021 total revenue increased 92.7% to $4.3 million from
$2.2 million in the same period last year. For the nine months
ended September 30, 2021, total revenue was $9.4 million, an
increase of 138.3% from $3.9 million for the comparable period in
2020.- Gross margin percentage was 88.1% for the third quarter of
2021 compared to 88.4% for the prior year period, and 84.8% for the
nine months ended September 30, 2021 as compared to a negative
margin in the prior year period.- Third quarter 2021 operating
expenses decreased by 7.6% to $12.2 million from $13.2 million in
the same period last year, primarily attributable to the timing of
advertising and promotion costs, offset by slight increases in
general and administrative expenses primarily due to increased
headcount and financing related costs. For the nine months ended
September 30, 2021, operating expenses increased by 16.7% to $40.4
million from $34.6 million for the comparable period in 2020,
primarily attributable to increased general and administrative
expenses, which increased due to higher personnel costs, as well as
increased sales and marketing expenses associated with JATENZO
advertising and promotion. - Third quarter 2021 research and
development expenses decreased by 11.3% to $1.3 million (29.7% of
revenue) from $1.4 million in the same period last year primarily
due to decreased costs for consulting services during the quarter,
offset by increased license fees in the period. For the nine months
ended September 30, 2021, research and development expenses
increased by 9.8% to $3.1 million from $2.8 million in the same
period last year, primarily due to clinical costs associated with
our lead commercial asset, JATENZO, and licensing fees related to
the HavaH and McGill agreements, offset by decreased consulting
costs.- Third quarter 2021 net loss was $2.8 million, or net loss
per common share of $0.26, compared to net income of $5.4 million,
or net loss per common share of $0.63 in the same period last year.
For the nine months ended September 30, 2021, net loss was $36.3
million, or net loss per common share of $5.68, compared to net
income of $4.1 million, or net loss per common share of $2.03 in
the same period last year. - Cash and cash equivalents as of
September 30, 2021 were $22.0 million.- In September 2021, the
combined company received $25.3 million in cash upon closing of the
business combination between Blue Water Acquisition Corp. (Blue
Water) and Clarus Therapeutics, Inc. before transaction expenses.
Following completion of the business combination, Blue Water
changed its name to Clarus Therapeutics Holdings, Inc.- As
of September 30, 2021, Clarus had 9.2 million weighted-average
common shares outstanding for purposes of calculating net (loss)
income per share attributable to common stockholders, basic and
diluted. Recent Business Highlights- Continued
total prescription growth for JATENZO in the third quarter of 2021
with an increase of 12% sequentially and 132% year-over-year driven
primarily by advertising and promotion and an increase in payer
coverage across all payer channels - Announced a
comprehensive settlement of patent litigation with Lipocine,
resolving all outstanding claims with payments to Clarus as part of
the settlement- Received two notices of allowance from the United
States Patent and Trademark Office (USPTO) covering JATENZO- Closed
the business combination between Blue Water and Clarus
Therapeutics, and debuted as a publicly traded combined company
focused on androgen and metabolic therapies- Entered into an
exclusive worldwide license agreement with McGill University,
Canada’s top ranked medical doctoral university, to develop
and commercialize technology to treat rare conditions
associated with CoQ10 deficiencies- Entered into an exclusive
license agreement with HavaH Therapeutics, an Australia-based
biopharmaceutical company developing androgen therapies for
inflammatory breast disease and certain forms of breast cancer
Conference Call and WebcastClarus will host a
conference call today at 5:15 p.m. ET to discuss the results. The
dial-in numbers are (844) 249-2007 for domestic callers and (224)
619-3902 for international callers. The conference ID number is
1354439. A live webcast and replay of the conference call will be
accessible through the Investors section of Clarus Therapeutics’
website at Investors.ClarusTherapeutics.com.
About Clarus Therapeutics Holdings, Inc.Clarus
Therapeutics Holdings, Inc. is a pharmaceutical company with
expertise in developing androgen and metabolic therapies for men
and women – including potential therapies for orphan indications.
Clarus Therapeutics’ first commercial product is JATENZO
(testosterone undecanoate). For more information, visit
www.clarustherapeutics.com and www.jatenzo.com. Follow us on
Twitter (@Clarus_Thera) and LinkedIn (Clarus Therapeutics).
Clarus Forward-Looking StatementsCertain
statements in this press release constitute “forward-looking
statements” for purposes of the federal securities laws. The words
“anticipate,” “believe,” “contemplate,” “continue,” “could,”
“estimate,” “expect,” “intends,” “may,” “might,” “plan,”
“possible,” “potential,” “predict,” “project,” “should,” “will,”
“would” and similar expressions may identify forward-looking
statements, but the absence of these words does not mean that a
statement is not forward-looking. Clarus’ forward-looking
statements in this press release include, but are not limited to,
statements regarding increasing awareness of JATENZO and growing
prescriptions, the potential of the technology licensed from McGill
University, the potential of CLAR-121, and its ability to execute
on its mission, among others. These forward-looking statements are
based on current expectations and beliefs concerning future
developments and their potential effects. There can be no assurance
that future developments affecting us will be those that Clarus has
anticipated. These forward-looking statements involve a number of
risks, uncertainties (some of which are beyond Clarus’ control) or
other assumptions that may cause actual results or performance to
be materially different from those expressed or implied by these
forward-looking statements. These risks and uncertainties include,
but are not limited to, the risks associated with pharmaceutical
development, risks associated with Clarus’ financial position, and
those factors described under the heading “Risk Factors” in the
prospectus filed with the Securities and Exchange Commission (the
SEC) under Rule 424(b)(3) on October 7, 2021, and those that
are included in any of Clarus’ future filings with the SEC,
including the 10-Q. Some of these risks and uncertainties may in
the future be amplified by the COVID-19 pandemic and there may be
additional risks that Clarus considers immaterial, or which are
unknown. It is not possible to predict or identify all such risks.
Clarus’ forward-looking statements only speak as of the date they
are made, and Clarus does not undertake any obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required
under applicable securities laws.
JATENZO® is a registered trademark of Clarus Therapeutics
Holdings, Inc.
Clarus Investor Relations Contact:Kara
Stancellkstancell@clarustherapeutics.com(847) 562-4300 x 206
The following presents Clarus Therapeutics Holdings, Inc.
statements of operations for the three and nine months ended
September 30, 2021 and 2020:
|
CLARUS THERAPEUTICS HOLDINGS,
INC.Condensed Consolidated Statements of
Operations(Unaudited; in thousands, except share
and per share data) |
|
|
|
|
|
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net product revenue |
$ |
4,286 |
|
|
$ |
2,224 |
|
|
$ |
9,395 |
|
|
$ |
3,943 |
|
Cost of product sales |
|
510 |
|
|
|
257 |
|
|
|
1,431 |
|
|
|
8,328 |
|
Gross profit (loss) |
|
3,776 |
|
|
|
1,967 |
|
|
|
7,964 |
|
|
|
(4,385 |
) |
Operating expenses: |
|
|
|
|
|
|
|
Sales and marketing |
|
7,550 |
|
|
|
8,733 |
|
|
|
25,017 |
|
|
|
23,557 |
|
General and administrative |
|
3,384 |
|
|
|
3,040 |
|
|
|
12,316 |
|
|
|
8,261 |
|
Research and development |
|
1,275 |
|
|
|
1,437 |
|
|
|
3,093 |
|
|
|
2,818 |
|
Total operating expenses |
|
12,209 |
|
|
|
13,210 |
|
|
|
40,426 |
|
|
|
34,636 |
|
Loss from operations |
|
(8,433 |
) |
|
|
(11,243 |
) |
|
|
(32,462 |
) |
|
|
(39,021 |
) |
Other (expense) income,
net: |
|
|
|
|
|
|
|
Change in fair value of warrant liability and derivative, net |
|
7,610 |
|
|
|
20,939 |
|
|
|
7,610 |
|
|
|
53,854 |
|
Interest income |
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
24 |
|
Interest expense |
|
(4,447 |
) |
|
|
(4,291 |
) |
|
|
(13,964 |
) |
|
|
(10,790 |
) |
Litigation settlement |
|
2,500 |
|
|
|
— |
|
|
|
2,500 |
|
|
|
— |
|
Total other (expense) income, net |
|
5,664 |
|
|
|
16,649 |
|
|
|
(3,853 |
) |
|
|
43,088 |
|
Net (loss) income before
income taxes |
|
(2,769 |
) |
|
|
5,406 |
|
|
|
(36,315 |
) |
|
|
4,067 |
|
Provision for income
taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net (loss) income |
$ |
(2,769 |
) |
|
$ |
5,406 |
|
|
$ |
(36,315 |
) |
|
$ |
4,067 |
|
Net (loss) income attributable
to common stockholders, basic |
$ |
(2,357 |
) |
|
$ |
5,396 |
|
|
$ |
(35,903 |
) |
|
$ |
(4,059 |
) |
Net loss attributable to
common stockholders, diluted |
$ |
(2,357 |
) |
|
$ |
(13,743 |
) |
|
$ |
(35,903 |
) |
|
$ |
(44,279 |
) |
Net (loss) income per common
share attributable to common stockholders, basic |
$ |
(0.26 |
) |
|
$ |
1.10 |
|
|
$ |
(5.68 |
) |
|
$ |
0.83 |
|
Net loss per common share
attributable to common stockholders, diluted |
$ |
(0.26 |
) |
|
$ |
(0.63 |
) |
|
$ |
(5.68 |
) |
|
$ |
(2.03 |
) |
Weighted-average common shares
used in net (loss) income per share attributable to common
stockholders, basic |
|
9,153,848 |
|
|
|
4,901,564 |
|
|
|
6,318,992 |
|
|
|
4,901,564 |
|
Weighted-average common shares
used in net loss per share attributable to common stockholders,
diluted |
|
9,153,848 |
|
|
|
21,828,570 |
|
|
6,318,992 |
|
|
|
21,828,570 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLARUS THERAPEUTICS HOLDINGS,
INC.Condensed Consolidated Balance
Sheets(Unaudited; in thousands, except share and
per share data) |
|
|
September 30, |
|
December 31, |
|
2021 |
|
2020 |
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
21,953 |
|
|
$ |
7,233 |
|
Accounts receivable, net |
|
6,932 |
|
|
|
4,400 |
|
Inventory, net |
|
12,480 |
|
|
|
5,857 |
|
Prepaid expenses and other current assets |
|
3,891 |
|
|
|
1,846 |
|
Total current assets |
|
45,256 |
|
|
|
19,336 |
|
Property and equipment,
net |
|
66 |
|
|
|
64 |
|
Total assets |
$ |
45,322 |
|
|
$ |
19,400 |
|
Liabilities,
redeemable convertible preferred stock, and stockholders’
deficit |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Senior notes payable |
$ |
40,339 |
|
|
$ |
41,902 |
|
Accounts payable |
|
15,843 |
|
|
|
12,107 |
|
Accrued expenses |
|
7,373 |
|
|
|
4,631 |
|
Deferred revenue |
|
827 |
|
|
|
1,172 |
|
Total current liabilities |
|
64,382 |
|
|
|
59,812 |
|
Convertible notes payable to
related parties |
|
— |
|
|
|
77,911 |
|
Royalty obligation |
|
— |
|
|
|
9,262 |
|
Derivative warrant
liability |
|
6,465 |
|
|
|
— |
|
Total liabilities |
|
70,847 |
|
|
|
146,985 |
|
Commitments and
contingencies |
|
|
|
|
|
Redeemable convertible preferred stock, $0.001 par value, — and
53,340,636 shares authorized at September 30, 2021 and December 31,
2020, respectively; — and 36,756,498 shares issued and outstanding
at September 30, 2021 and December 31, 2020, respectively |
|
— |
|
|
|
198,195 |
|
Stockholders’ deficit: |
|
|
|
|
|
Preferred stock, $0.0001 par value; 10,000,000 shares authorized;
no shares issued and outstanding at September 30, 2021 and December
31, 2020, respectively |
|
— |
|
|
|
— |
|
Common stock $0.0001 par value; 125,000,000 shares authorized;
21,725,817 and 4,901,564 shares issued and outstanding at September
30, 2021 and December 31, 2020, respectively |
|
2 |
|
|
|
1 |
|
Additional paid-in capital |
|
291,825 |
|
|
|
— |
|
Accumulated deficit |
|
(317,352 |
) |
|
|
(325,781 |
) |
Total stockholders’ deficit |
|
(25,525 |
) |
|
|
(325,780 |
) |
Total liabilities, redeemable convertible preferred stock, and
stockholders’ deficit |
$ |
45,322 |
|
|
$ |
19,400 |
|
|
|
|
|
|
|
|
|
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