NEW YORK, NY / ACCESSWIRE / August 21, 2018 / 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) and has raised its target price to $0.75.
The report is available here: August 2018 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. Led by CEO Dr. Bassam Damaj, Innovus is based in San Diego, CA and has demonstrated robust growth in its product offerings and annual revenues since we initiated coverage on the company in September 2014. Innovus revenues have grown from approximately $1.0mn in 2014 to $8.8mn in 2017 and guidance for more than $20mn in revenues in 2018.
Innovus reported another quarter of record in 2Q18 on August 14, 2018. In 2Q18, the company continued to generate strong top-line growth from solid execution in its proprietary Beyond Human™ sales and marketing platform, marking the fourth consecutive quarter of record revenue growth. Highlights include:
- Record quarterly revenues in 2Q18. INNV 2Q18 revenues increased by 258.7% YoY to reach $7.3mn, versus $2.0mn in 2Q17.
- Revenues rise 60.9% sequentially. Sequentially, revenues grew by an impressive 60.9% from $4.5mn in 1Q18, due to the impact of new products, execution in sales and marketing efforts on the company's Beyond Human platform, and international expansion.
- 1H18 topline well ahead of full-year 2017. Impressively, INNV generated $11.9mn in revenues during the first half of 2018 - more than $3mn above full-year 2017 revenues of $8.8mn.
- Innovus raises guidance. Innovus CEO Bassam Damaj announced that the company was increasing its full-year outlook to $23mn - a significant increase from the company's guidance of "greater than $18mn" at the end of the last quarter.
- INNV now markets 32 products in the US and 12 products in multiple countries through international commercial distribution partners. The company has experienced success in the Canadian market, which represented 14% of total revenues in the quarter.
- Gross margins in 2Q18 remained healthy, coming in at 81%, consistent with 1Q18 and above 2017 levels of 79%.
- Net loss was flat at in 2Q18 at ($1.8mn), or ($0.01) per share, matching 1Q18.
- INNV ended the quarter with $1.6mn in cash on the balance sheet and financial debt of $2.0mn. The company had 207.2mn shares outstanding as of August 9, 2018.
Increasing target to $0.75 for Innovus
We are increasing our 2018E revenue estimate to $23mn following guidance from management. Our price target moves to $0.75 per share. We view INNV as a high growth company with several catalysts ahead as the company increases the number of products in its pipeline and expands its sales channels and geographic presence.
Please review important disclosures in the report and on our website at www.seethruequity.com.
About Innovus Pharmaceuticals, Inc.
Headquartered in San Diego, Innovus Pharma is an emerging 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. www.Innovuspharma.com
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