Raises 2014 and 2015 Guidance significantly on "robust" sales of gallstone drug
Retrophin Ups 2014, 2015 Revenue Guidance; FDA Not Yet Approved Clinical Trial For RE-024 - Seeing Higher Pre-Bell Bid of $15.51
BY Midnight Trader — 7:15 AM ET 04/14/2014
Retrophin (RTRX) raised its revenue guidance for 2014 and 2015 as reimbursement for its Chenodal drug to treat gallstones was "robust."
The pharmaceutical company said it now expects sales of between $19 million and $21 million in 2014, up from the previous guidance of $10 million to $12 million. For 2015, it expects sales between $35 million and $40 million compared to the previous guidance range between $19 million and $21 million.
"The success of Chenodal significantly reduces our cash needs and may propel the company to profitability in the near-term," CEO Martin Shkreli said in a statement. "As such, we have no need or desire to explore a dilutive equity offering unless it is accompanied by an accretive and strategic acquisition. Retrophin (RTRX) remains opportunistic with respect to M&A and has strong access to both debt and equity capital."
RTRX closed down nearly 16% on Friday, near the mid-point of the 52-week range between $4.50 and $24.25. The stock was bid higher in recent pre-market trade.
The company said it received an update from clinical investigators on Friday regarding its RE-024 for the ultra-orphan disease Pantothenate Kinase-Associated Neurodegenerationthat, that the U.S. Food Administration had so far been unwilling to grant a clinical trial.
"The small delay is frustrating to all of our stakeholders, but we expect the issue will be resolved in the near term and we are taking steps to grow our R&D infrastructure to avoid similar experiences in the future," Shkreli said.