Company makes significant progress in invest-to-grow strategy
RESEARCH TRIANGLE PARK, NC / ACCESSWIRE / November 14, 2019 / Adhera Therapeutics, Inc. (ATRX), an emerging specialty pharmaceutical company that commercializes and delivers effective, patient-centric treatment in chronic care, to improve and simplify the quality of care for patients suffering from chronic diseases, reported financial and operating results for the third quarter of 2019 today.
During the third quarter the Company achieved three important milestones in progressing its ‘invest to grow' strategy and removing barriers to performance, by scaling up 1) its marketing capabilities, 2) its distribution capabilities and 3) its product portfolio.
- Marketing - The Company entered into a strategic partnership with Indegene Inc. to deploy Indegene's proprietary co-commercialization model to expand commercialization for the Company's primary product, Prestalia®, across the United States. Indegene is an important strategic relationship that will enable Adhera to scale up and penetrate markets reaching healthcare providers nationwide.
- Distribution - The Company entered into a strategic partnership with Novos Patient Solutions, LLC increasing patient access to Prestalia by 400% by increasing local distribution to support growing patient demand.
- Product portfolio - The Company entered into an agreement with Allegis Pharmaceuticals, LLC to co-promote Allegis' Nitrolingual® Pumpspray, a nitroglycerin lingual spray.
"We are encouraged by the progress we've made in Q3 in our ‘invest-to-grow' strategy and recognize that our full potential has not yet been met. We are committed to a commercialization approach that is more efficient and effective and reaches more physicians and hypertension patients," stated Nancy Phelan, Chief Executive Officer of Adhera Therapeutics. "In addition, our transition to a new pharmacy network through our agreement with Novos will allow us to provide nationwide distribution of Prestalia®. The addition of Nitrolingual® Pumpspray to our product portfolio will allow us to further expand our commercialization activities. We believe these three initiatives, increasing marketing, expanding distribution and increasing the number of products we sell, will help Adhera realize its ambition to accelerate top line revenue and crossover into profitability."
Third Quarter Financial Results
The Company recorded approximately $51,000 in net sales for the three months ended September 30, 2019 as compared to $135,000 for the same period of 2018. The reduction in sales was primarily due to our strategic decision to transition to a new pharmacy network during the quarter which will reduce costs and provide nationwide distribution of Prestalia® and our production supply issues including production delays and serialization activities which have now been resolved.
Total Operating Expenses
The Company recorded approximately $2.2 million of total operating expenses for the three-month period ended September 30, 2019 as compared to $7.8 million for the same period of 2018. The $5.6 million decrease was primarily due to a one time-charge in the third quarter of 2018 of $4.8 for an intangible asset and goodwill impairment and increased sales and marketing expenses for the commercial launch of Prestalia® that were incurred in the third quarter of 2018 as compared to the same period of 2019.
As of September 30, 2019, we had cash of $2.7 million, compared to cash of $3.9 million at December 31, 2018.
About Adhera Therapeutics
Adhera Therapeutics, Inc. is a specialty pharmaceutical company leveraging technology to commercialize unique therapies and improve patient outcomes. Adhera is initially focused on commercializing Prestalia through DyrctAxess, a patient-centric treatment approach. Adhera is dedicated to identifying additional assets to expand its commercial presence. Additional information can be found at www.adherathera.com.
Statements made in this news release may be forward-looking statements within the meaning of Federal Securities laws that are subject to certain risks and uncertainties and involve factors that may cause actual results to differ materially from those projected or suggested. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to: (i) the ability of Adhera Therapeutics to obtain funding to support its commercialization activities; (ii) the ability of Adhera Therapeutics to attract and/or maintain manufacturing, research, development and commercialization partners; (iii) the ability of Adhera Therapeutics and/or a partner to successfully complete product research and development, including preclinical and clinical studies and commercialization; (iv) the ability of Adhera Therapeutics and/or a partner to obtain and maintain required governmental approvals; and (v) the ability of Adhera Therapeutics and/or a partner to develop and commercialize products prior to, and that can compete favorably with those of, competitors. Additional factors that could cause actual results to differ materially from those projected or suggested in any forward-looking statements are contained in our most recent filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and any Quarterly Reports filed by the Company thereafter. Adhera Therapeutics assumes no obligation to update or supplement forward-looking statements because of subsequent events.
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SOURCE: Adhera Therapeutics, Inc.
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