SeeThruEquity Issues Update on Innovus Pharmaceuticals (INNV) and Maintains $1.00 Target Price

NEW YORK, NY / ACCESSWIRE / November 22, 2016 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has issued an update on Innovus Pharmaceuticals, Inc. (INNV).

The report is available here: INNV November Update Note.

Innovus Pharmaceuticals, Inc. (OTCQB: INNV, "Innovus") is an emerging commercial stage pharmaceutical company that delivers safe, innovative and effective over-the-counter (OTC) medicine and consumer care products to improve men and women's health, respiratory disease and vitality. Innovus recently released robust top line results in 3Q16, with highlights as follows:

• Innovus revenues rose by 947% YoY to reach $1.9mn, versus $0.2mn in 3Q15. Revenues also accelerated sequentially, nearly doubling 2Q16 revenues of $1.0mn

• For the first nine months of 2016, Innovus revenues were $3.1mn, compared to $0.6mn in the comparable year-ago period.

• Strong Outlook: Innovus reiterated its guidance for $5mn in 2016 and also issued guidance for $15mn in 2017E, which would imply 200% YoY growth.

Highlights from the report are as follows:

Strong top line results as revenues and gross margins rise

On November 10, 2016, Innovus reported 3Q16 results, which showed an improvement in revenues and gross margins on both a sequential and year-over-year basis. Revenues rose by 947% over 3Q15 and more than 80% sequentially to $1.9mn, as compared to $0.2mn in 3Q15 and $1.0mn in 2Q16, respectively. Innovus gross margins expanded with the higher sales levels to reach 82.4% in 3Q16, versus 75.7% in 2Q16 and 43% in 3Q15. GAAP EPS came in at a loss of ($0.04) per share, versus ($0.02) in the year-ago period, and Innovus ended the quarter with cash on hand of $1.5mn. Revenue growth in the period was driven by an increase in results from in-licensed products from Beyond Human and its BTH® sales and marketing platform.

Innovus reiterates 2016 outlook; sees robust growth in 2017E

Innovus CEO, Dr. Bassam Damaj reiterated guidance for the full year 2016E of at least $5mn. The guidance is in line with our estimate of $5mn, and seems more than achievable, in our view, with $3.1mn in revenues reported in the first nine months of the year. Looking ahead, Innovus issued a revenue target of $15mn for 2017E, which would imply 200% annual growth over 2016 guidance. Importantly, management stated that it believed the company could outperform this revenue guidance should the FDA approve Fluticare™, a generic reformulation of Flonase® nasal spray for allergy symptoms. Dr. Damaj stated that Innovus is hoping for an FDA decision on Fluticare™ by the end of 2016; the company has estimated that it could generate an additional $10-$15mn of revenue from Fluticare™ in its first year of commercialization.

Price target maintained at $1.00

We are leaving our price target for Innovus unchanged at $1.00 at this time. The maintained target reflects a combination of strong top line results and solid revenue guidance for 2016E and 2017E, offset by an increase in shares outstanding to 106mn as of November 10, 2016. We continue to view Innovus as a high-risk / high-reward investment opportunity in the OTC pharmaceuticals space with a differentiated business model focused on men and women's health and vitality. Upcoming potential catalysts for the company include ongoing financing activities, an FDA decision on Fluticare™ and new license opportunities such as the recent announcement that it would in-license Urox® for overactive bladders and incontinence.

Please review important disclosures at www.seethruequity.com.

About Innovus Pharmaceuticals, Inc.

Headquartered in San Diego, Innovus Pharma is an emerging commercial stage pharmaceutical company delivering over-the-counter medicines and consumer care products for men's and women's health and respiratory diseases. The Company generates revenues from its lead products (a) BTH® Testosterone Booster, (b) BTH® Human Growth Agent, (c) Zestra® for female arousal, and (d) EjectDelay® for premature ejaculation, and has an additional five marketed products in this space, including (e) Sensum+® to help with reduced penile sensitivity, (f) Zestra Glide®, (g)Vesele® for promoting sexual health, (h) RecalMax™ for promoting brain and cognitive health, (i) Androferti® (in the US and Canada) to support overall male reproductive health and sperm quality, (j) BTH Vision Formula, and (k) BTH Blood Sugar, among others, and FlutiCare™ OTC for allergic rhinitis, if its ANDA is approved by the U.S. FDA. Innovuspharma.com

About SeeThruEquity

Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative business model for equity research that is not paid for and is unbiased. SeeThruEquity is the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion.

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SOURCE: SeeThruEquity