Juniper Pharmaceuticals (Nasdaq: JNP), a diversified healthcare company with core businesses of its CRINONE® (progesterone gel) franchise and fee-for-service pharmaceutical development and manufacturing business JPS, today announced financial results for the twelve-month period ended December 31, 2017. Cash and equivalents were $21.4 million at December 31, 2017 compared to $21.0 million at December 31, 2016.
"The past year has been transformational for Juniper as we made significant progress toward the achievement of each of our corporate goals. Notably, we took the necessary steps to streamline our organization to focus on accelerating growth across our core businesses, JPS and CRINONE®, and we successfully secured an extension of the CRINONE® supply agreement with Merck, KGaA," said Alicia Secor, Chief Executive Officer.
Ms. Secor added, "Our continued investment in JPS and solid performance in the CRINONE® business resulted in significant annual revenue growth and allowed us to exceed our financial guidance for 2017. We ended the year cash flow positive, and we anticipate this trend will continue and expect to end 2018 cash flow positive as well. As our process to explore strategic alternatives continues, we are committed to building shareholder value while maintaining the momentum in these businesses."
Fourth Quarter and Recent Corporate Highlights
- Engaged Rothschild as independent financial advisor to assist in the exploration of strategic alternatives as part of an ongoing effort to enhance shareholder value. This process remains ongoing.
- Announced a 4.5-year extension through 2024 of the CRINONE® supply agreement with Merck KGaA, Darmstadt, Germany.
- Focusing on expansion of its JPS pharmaceutical development and manufacturing services to new and existing customers seeking solutions for difficult-to-formulate products.
- Announced positive top-line pharmacokinetic data from in vivo studies evaluating each of the Company's three IVR formulations which support advancement of the IVR technology platform.
- Exploring partnering opportunities for each of the IVR pipeline candidates.
Full Year Financial Results
"We exceeded our top-line growth guidance for 2017, reporting a 24% increase in revenues from our core business year-over-year, outpacing the growth levels we observed in 2016," said Jeff Young, Chief Financial Officer at Juniper. "We are well-positioned to continue to deliver double-digit growth in these core businesses in 2018."
Product revenues from Merck KGaA increased 20.1% to $32.7 million in 2017, compared with $27.2 million in the prior year. The $5.5 million increase primarily reflects continued expansion of existing key markets as well as new markets.
Service revenues from Juniper Pharma Services were $17.3 million for the twelve months ended December 31, 2017, an increase of $4.2 million, or 32.3%, as compared with $13.1 million in the prior year. The service revenue increase primarily reflects the continued uptake of our specialized service offering for challenging-to-develop molecules as well as follow-on later stage contracts from existing clients.
Total revenues decreased 8.4% year-over-year to $50.0 million in the year ended December 31, 2017, as compared to $54.6 million in the previous year. Excluding royalties, which were monetized in the fourth quarter of 2016, combined product and service revenue increased 24% year-over-year.
Gross profit decreased to $21.0 million in the year ended December 31, 2017, compared with $30.3 million in the prior year. This decrease was primarily the result of the reduction of royalty revenue for the year ended 2017. Excluding royalties from the prior period, gross profit would have increased by $5.0 million, or 31%, to $21.0 million from $16.0 million in 2016.
Total operating expenses were down slightly to $24.9 million, as compared $25 million in the previous year. The decrease was primarily driven by lower R&D spend of $2.8 million predominantly due to the COL-1077 Phase 2b clinical trial, which was completed in August 2016, partially off...
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