Aytu Bioscience, Inc. reported a net loss of $5.33 million on $8.16 million of total revenues for the three months ended March 31, 2020, compared to a net loss of $4.49 million on $2.38 million of total revenue for the three months ended March 31, 2019. The Company’s third quarter revenue results represent partial revenue contribution from the acquisition of Innovus Pharmaceuticals, which closed on Feb. 14, 2020, and zero revenue contribution from COVID-19 IgG/IgM rapid tests first received at the start of the fiscal fourth quarter on April 1, 2020.
For the nine months ended March 31, 2020, the Company reported a net loss of $10.47 million on $12.77 million of total revenue compared to a net loss of $12.60 million on $5.60 million of total revenue for the nine months ended March 31, 2019.
As of March 31, 2020, the Company had $158.95 million in total assets, $73.25 million in total liabilities, and $85.70 million in total stockholders’ equity.
As of March 31, 2020, the Company had approximately $62.5 million of cash, cash equivalents and restricted cash. The Company said its operations have historically consumed cash and are expected to continue to require cash, but at a declining rate.
Commenting on the third quarter of fiscal 2020, Josh Disbrow, chief executive officer of Aytu BioScience, stated, “We had a transformative third quarter and have had exceptional performance in the period year to date. Starting with revenue, in Q3 we reported our highest ever revenue quarter with $8.2 million in top line, up 243% year over year. Additionally, through our recent equity offerings and warrant exercises we strengthened our balance sheet and have $62.5 million in cash, restricted cash, and cash equivalents as of March 31st. Further, by signing two distribution agreements for COVID-19 rapid tests and securing an exclusive worldwide licensing agreement with Cedars-Sinai for the Healight technology platform, the Company is well positioned to continue to take the fight to COVID-19. With a large number of tests having just arrived at our warehouse this week, we can now help even more providers screen patients for COVID-19 IgG and IgM antibodies as we collectively work to reopen the country.”
Mr. Disbrow continued, “Looking at our growth drivers beyond fiscal Q3, the Company has three strategic areas from which we expect to make progress going forward: growth of our organic Rx and consumer health business segments, continuing the distribution of the two COVID-19 antibody test kits for which we’ve secured distribution rights, and progressing the development of the Healight platform technology as a prospective treatment for COVID-19 and other severe infections. Organically in Q4, we will have our first full quarter of revenue contribution from the newly acquired Innovus consumer health segment. Importantly, the consumer business has already launched Regoxidine, for hair regrowth, and more near-term consumer health product launches are planned. With respect to the prescription business, we reported recently published Phase IV data for Natesto and demonstrated that a testosterone replacement therapy can increase serum testosterone levels while maintaining sperm concentration, motility, and total motile sperm count. We believe this clinical development enables Natesto to stand apart from other testosterone replacement therapies in offering a treatment solution for hypogonadal men wishing to maintain fertility. In terms of COVID-19 testing revenue, we began shipping product in April, so we expect a significant increase in revenue in Q4 now that those test sales are under way. Additionally, we signed an exclusive global license with Cedars-Sinai for Healight, which represents a novel opportunity as a potential treatment for COVID-19 and other serious infections for hospitalized patients.”
Mr. Disbrow concluded, “When considering our organic growth, a $62.5 million cash balance, our expected revenue from the COVID-19 antibody test kits, the addition of the Healight opportunity, and a cleaned-up capital structure, I have never been more optimistic about the future of Aytu BioScience.”
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About Aytu BioScience
Englewood, Colorado-based Aytu BioScience, Inc. (OTCMKTS:AYTU) 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, an FDA-approved nasal formulation of testosterone for men with hypogonadism, (ii) ZolpiMist, an FDA-approved oral spray prescription sleep aid, and (iii) Tuzistra XR, an FDA-approved 12-hour codeine-based antitussive syrup. Aytu Bioscience reported a net loss of $27.13 million for the year ended June 30, 2019, compared to a net loss of $10.18 million for the year ended June 30, 2018. As of Dec. 31, 2019, the Company had $74.48 million in total assets, $57.39 million in total liabilities, and $16.76 million in total stockholders’ equity.
Plante & Moran, PLLC, in Denver, CO, the Company’s auditor since 2015, issued a “going concern” qualification in its report dated Sept. 26, 2019, on the Company’s consolidated financial statements for the year ended June 30, 2019, citing that the Company has suffered recurring losses from operations and has an accumulated deficit that raise substantial doubt about its ability to continue as a going concern.