U.S. Markets closed

SeeThruEquity Issues Update on Innovus Pharmaceuticals (INNV) and Maintains Price Target of $0.65

NEW YORK, NY / ACCESSWIRE / August 22, 2017 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced it has issued an update on Innovus Pharmaceuticals, Inc. (INNV) and maintained its price target of $0.65.

The report is available here: INNV August 2017 Update Note.

Innovus Pharmaceuticals, Inc. (OTCQB: INNV, "Innovus") is a fast-growing 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.

On August 14, 2017, Innovus reported strong 2Q17 results, reflecting a growing portfolio of OTC products, and re-affirmed the release and details of its upcoming launch of FlutiCare™ in 4Q17, with highlights as follows:

  • Innovus revenues rose by 99% to $2.0mn in 2Q17 versus $1.0mn in 2Q16. Revenues for the first half of 2017 were $4.2mn, well ahead of $1.2mn in 1H16, and management guided for an acceleration of growth to close the year.
  • Gross Margins remained strong at 80%, representing a significant expansion over 74.2% in 2Q16, and INNV reiterated its goal of reaching adjusted profitability by the end of 2017 / beginning of 2018.
  • First FlutiCare™ batch. INNV confirmed that it ordered the first commercial batch of 220,000 units, with the commercial launch in 4Q17.

Portfolio expansion driving revenues

On August 14, 2017, Innovus reported 99% top line growth for its second quarter. Revenues doubled from $1mn in 2Q16 to $2.0mn, with attractive 80% gross margins - gross margins expanded more than 600 basis points from 2Q16 levels. For the first half of 2017, revenue is now at $4.2mn, 238.6% ahead of 2Q16 results and nearly as much as all of fiscal 2016. Of note, Innovus generated revenue from an expanded number of products as the company begins to show evidence of a budding portfolio of OTC products.

Innovus announces first Fluticare™ orders

We were pleased to hear Innovus announce that it had ordered its first commercial batch of FlutiCare™. FlutiCare™ is a generic formulation of Flonase® nasal spray for allergy symptoms. The initial batch from the company's partner West-Ward Pharmaceuticals International, a subsidiary Hikma Pharmaceuticals, PLC will be 220,000 units, and is expected to arrive in September / October, with the commercial launch in 4Q17. On the company's call with investors, Innovus CEO Dr. Bassam Damaj stated that Innovus expects that each batch of 220,000 units is expected to generate $3mn in revenues from its FlutiCare™ sales efforts in the US market. We are looking to the upcoming launch of FlutiCare™ as a key event to watch for to drive growth to close the year and into 2018. On its investor call following 2Q17 results, INNV reiterated its target of $10-$15mn of additional revenues from FlutiCare™ in its first year of commercialization.

Maintaining Price target of $0.65 for Innovus

Our price target for Innovus to $0.65, which if achieved, represents substantial upside potential from the recent price of $0.10. The main driver of our thesis is our expectations for dramatic growth as a result of the expanding portfolio of products sold by Innovus, and the potentially game-changing new product line in with the launch of FlutiCare™ in 4Q17.

Please review important disclosures at www.seethruequity.com.

About Innovus Pharmaceuticals, Inc.

Headquartered in San Diego, Innovus Pharma is an emerging over-the-counter ("OTC") consumer goods and specialty pharmaceutical company engaged in the commercialization, licensing and development of safe and effective non-prescription medicine and consumer care products to improve men's and women's health and vitality and respiratory diseases. Innovus Pharma delivers innovative and uniquely presented and packaged health solutions through its (a) OTC medicines and consumer and health products, which we market directly, (b) commercial partners to primary care physicians, urologists, gynecologists and therapists, and (c) directly to consumers through our on-line channels, retailers and wholesalers. The Company is dedicated to being a leader in developing and marketing new OTC and branded Abbreviated New Drug Application ("ANDA") products. The Company is actively pursuing opportunities where existing prescription drugs have recently, or are expected to, change from prescription (or Rx) to OTC. Innovuspharma.com

About SeeThruEquity

Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high-quality research on underfollowed small-cap and micro-cap 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.

SeeThruEquity is approved to contribute its research reports and estimates to Thomson One Analytics (First Call), the leading estimates platform on Wall Street, as well as Capital IQ and FactSet. SeeThruEquity maintains one of the industry's most extensive databases of opt-in institutional and high net worth investors. The firm is headquartered in Midtown Manhattan in New York City.

For more information visit www.seethruequity.com.


Ajay Tandon

SOURCE: SeeThruEquity