Press release content from ACCESSWIRE. The AP news staff was not involved in its creation.
Press release content from ACCESSWIRE. The AP news staff was not involved in its creation.

Aytu Reports Q2 Revenue of $3.2M, Up 77% Year-over-Year and 121% Sequentially

February 13, 2020 GMT
ENGLEWOOD, CO / ACCESSWIRE / February 13, 2020 / Aytu BioScience, Inc. (NASDAQ:AYTU), a specialty pharmaceutical company focused on commercializing novel products that address significant medical needs, today will provide an overview of its business, ...
ENGLEWOOD, CO / ACCESSWIRE / February 13, 2020 / Aytu BioScience, Inc. (NASDAQ:AYTU), a specialty pharmaceutical company focused on commercializing novel products that address significant medical needs, today will provide an overview of its business, ...

ENGLEWOOD, CO / ACCESSWIRE / February 13, 2020 / Aytu BioScience, Inc. (NASDAQ:AYTU), a specialty pharmaceutical company focused on commercializing novel products that address significant medical needs, today will provide an overview of its business, including the company’s operational and financial results for its fiscal second quarter 2020 that ended December 31, 2019. The company will host a live conference call and webcast today at 4:30 p.m. ET. Conference call details are provided at the end of this press release.

2020 Second Quarter Financial and Corporate Highlights

Commenting on the second quarter of 2020, Josh Disbrow, Chief Executive Officer of Aytu BioScience, stated, “Revenue for the three months ended December 31, 2019 was $3.2 million, which represents 121% growth over the three months ended September 30, 2019. Considering that the Cerecor Rx portfolio purchase didn’t close until November, with the start of the integration beginning after that, this is a strong revenue number that we expect to grow with the product portfolio now integrated. We are not yet realizing the full benefit of the acquisition, so we look forward to our continued growth as we complete cross-training and maximize the multiple opportunities to gain synergy through our expanded Rx product portfolio.”

Conference Call Information

The company will host a live conference call at 4:30 p.m. ET today. The conference call can be accessed by dialing either:

1- 844-602-0380 (toll-free)

1- 862-298-0970 (international)

The webcast will be accessible live and archived on Aytu BioScience’s website, within the Investors section under Events & Presentations, at aytubio.com, for 90 days.

A replay of the call will be available for fourteen days. Access the replay by calling 1-877-481-4010 (toll-free) and using the replay access code 57940.

About Aytu BioScience, Inc.

Aytu BioScience is a commercial-stage specialty pharmaceutical company focused on commercializing novel products that address significant patient needs. The company currently markets a portfolio of prescription products addressing large primary care and pediatric markets. The primary care portfolio includes (i) Natesto®, the only FDA-approved nasal formulation of testosterone for men with hypogonadism (low testosterone, or “Low T”), (ii) ZolpiMist™, the only FDA-approved oral spray prescription sleep aid, and (iii) Tuzistra® XR, the only FDA-approved 12-hour codeine-based antitussive syrup. The pediatric portfolio includes (i) AcipHex® Sprinkle™, a granule formulation of rabeprazole sodium, a commonly prescribed proton pump inhibitor; (ii) Cefaclor, a second-generation cephalosporin antibiotic suspension; (iii) Karbinal® ER, an extended-release carbinoxamine (antihistamine) suspension indicated to treat numerous allergic conditions; and (iv) Poly-Vi-Flor® and Tri-Vi-Flor®, two complementary prescription fluoride-based supplement product lines containing combinations of fluoride and vitamins in various for infants and children with fluoride deficiency. Aytu’s strategy is to continue building its portfolio of revenue-generating products, leveraging its focused commercial team and expertise to build leading brands within large therapeutic markets. For more information visit aytubio.com.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, or the Exchange Act. All statements other than statements of historical facts contained in this presentation, are forward-looking statements. Forward-looking statements are generally written in the future tense and/or are preceded by words such as ″may,″ ″will,″ ″should,″ ″forecast,″ ″could,″ ″expect,″ ″suggest,″ ″believe,″ ″estimate,″ ″continue,″ ″anticipate,″ ″intend,″ ″plan,″ or similar words, or the negatives of such terms or other variations on such terms or comparable terminology. These statements are just predictions and are subject to risks and uncertainties that could cause the actual events or results to differ materially. These risks and uncertainties include, among others: the effects of the business combination of Aytu and the Commercial Portfolio and the previously announced, but not yet consummated, merger (“Merger”) with Innovus Pharmaceuticals, including the combined company’s future financial condition, results of operations, strategy and plans, the ability of the combined company to realize anticipated synergies in the timeframe expected or at all, changes in capital markets and the ability of the combined company to finance operations in the manner expected, the diversion of management time on Merger-related issues and integration of the Commercial Portfolio, the ultimate timing, outcome and results of integrating the operations the Commercial Portfolio and Innovus with Aytu’s existing operations, the failure to obtain the required votes of Innovus’ shareholders or Aytu’s shareholders to approve the Merger and related matters, the risk that a condition to closing of the Merger may not be satisfied, that either party may terminate the merger agreement or that the closing of the Merger might be delayed or not occur at all, the price per share utilized in the formula for the initial $8 million merger consideration in the Merger may not be reflective of the current market price of Aytu’s common stock on the closing date, potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the Merger, risks relating to gaining market acceptance of our products, obtaining or maintaining reimbursement by third-party payors, the potential future commercialization of our product candidates, the anticipated start dates, durations and completion dates, as well as the potential future results, of our ongoing and future clinical trials, the anticipated designs of our future clinical trials, anticipated future regulatory submissions and events, our anticipated future cash position and future events under our current and potential future collaboration. We also refer you to the risks described in ″Risk Factors″ in Part I, Item 1A of the company’s Annual Report on Form 10-K and in the other reports and documents we file with the Securities and Exchange Commission from time to time.

Contact for Investors:

James Carbonara

Hayden IR

(646) 755-7412

Aytu BioScience, Inc, Condensed Consolidated Balance Sheet Information

December 31,June 30,


Current assets

Cash and cash equivalents


Restricted cash


Accounts receivable, net


Inventory, net


Prepaid expenses and other


Note receivable


Other current assets


Total current assets


Fixed assets, net


Licensed assets, net


Patents, net


Right-of-use asset


Product technology rights






Total long-term assets


Total assets



Current liabilities

Accounts payable and other


Accrued liabilities


Accrued compensation


Current lease liability


Current contingent consideration


Current portion of fixed payment arrangements


Total current liabilities


Long-term contingent consideration


Long-term lease liability


Long-term fixed payment arrangements


Warrant derivative liability


Total liabilities


Commitments and contingencies

Stockholders' equity

Preferred Stock, par value $.0001; 50,000,000 shares authorized; shares issued and outstanding 10,215,845 and 3,594,981, respectively as of December 31, 2019 (unaudited) and June 30, 2019.


Common Stock, par value $.0001; 100,000,000 shares authorized; shares issued and outstanding 20,733,052 and 17,538,071, respectively as of December 31, 2019 (unaudited) and June 30, 2019.


Additional paid-in capital


Accumulated deficit


Total stockholders' equity


Total liabilities and stockholders' equity


Aytu BioScience, Inc,. Consolidated Statements of Operations Information (Unaudited)

Three Months Ended December 31,Six Months Ended December 31,


Product revenue, net


Operating expenses

Cost of sales


Research and development


Selling, general and administrative


Selling, general and administrative - related party


Amortization of intangible assets


Total operating expenses


Loss from operations


Other (expense) income

Other (expense), net


Gain from derecognition of contingent consideration liability


Gain from warrant derivative liability


Total other (expense) income


Net loss


Weighted average number of common shares outstanding


Basic and diluted net loss per common share


Aytu BioScience, Inc, Condensed Consolidated Cash Flow Information (Unaudited)

Six Months Ended December 31,

Operating Activities

Net loss


Adjustments to reconcile net loss to cash used in operating activities:

Depreciation, amortization and accretion


Stock-based compensation expense


Derecognition of contingent consideration


Issuance of common stock to employee


Derivative income


Changes in operating assets and liabilities:

(Increase) in accounts receivable


(Increase) in inventory


(Increase) in prepaid expenses and other


(Increase) in other current assets


Increase in accounts payable and other


Increase in accrued liabilities


(Decrease) Increase in accrued compensation


(Decrease) in fixed payment arrangements


Increase in interest payable


(Decrease) in deferred rent


Net cash used in operating activities


Investing Activities



Purchases of fixed assets


Contingent consideration payment


Note receivable


Purchase of assets


Net cash used in investing activities


Financing Activities

Issuance of preferred, common stock and warrants


Issuance costs related to preferred, common stock and warrants


Issuance of debt


Net cash provided by financing activities


Net change in cash, restricted cash and cash equivalents


Cash, restricted cash and cash equivalents at beginning of period


Cash, restricted cash and cash equivalents at end of period


Supplemental disclosures of cash and non-cash investing and financing transactions

Cash paid for interest


Fair value of right-to-use asset and related lease liability


Issuance of Series G preferred stock due to acquisition of the Cerecor portfolio of pediatrics therapeutics (unaudited)


Inventory payment included in accounts payable


Contingent consideration included in accounts payable


Fixed payment arrangements included in accounts payable


Exchange of convertible preferred stock into common stock


Return deductions received by Cerecor


Fair value of warrants issued to investors and underwriters


Issuance of preferred stock related to purchase of asset


Contingent consideration related to purchase of asset


SOURCE: Aytu BioScience, Inc.

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