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Juniper Pharmaceuticals Reports Full-Year 2017 Financial and Operating Results
Full Year CRINONE® Revenues Increased 20% and Juniper Pharma Services (JPS) Revenues Increased 32% Year-over-Year
Ended 2017 Cash Flow Positive; Company Expects Trend to Continue in 2018
Conference Call at 8:30 a.m. EST Today

BOSTON, March 8, 2018 /PRNewswire/ -- 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.

Juniper Pharmaceuticals, Inc.

"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 offset by $1.3 million increase in G&A spend as a result of costs incurred in the first half of 2017 related to the restatement of our financial statements for the years ended December 31, 2013 through 2015, $0.8 million restructuring charge related to the Company's September 2017 reprioritization recorded in the third quarter of 2017 and a $0.6 million increase in sales and marketing that resulted from the continued growth of Juniper Pharma Services.

The Company recorded a net loss of $2.1 million, or $0.15 per diluted share, in the twelve months ended December 31, 2017, compared with net income of $6.0 million, or $0.55 per diluted share, for the twelve months ended December 31, 2016.

Liquidity and Capital Resources

Cash and cash equivalents were $21.4 million as of December 31, 2017, versus $21.0 million at December 31, 2016. The Company believes that its current cash and cash equivalents, as well as cash generated from operations, will be sufficient to meet its anticipated cash needs for working capital and capital expenditures through at least the next twelve months.

Conference Call

As previously announced, Juniper's management team will hold a conference call to discuss financial results for the fourth quarter and full year ended December 31, 2017, as follows:

Date:

March 8, 2018

Time:

8:30 a.m. ET

Dial-in numbers:

Toll free: (866) 374-4635 (U.S.), (855) 669-9657 (Canada),


or International: (412) 902-4218

Webcast (live and archive): www.juniperpharma.com, under "Investors" or click here.

The teleconference replay will be available approximately one hour after completion through Thursday, March 15, 2018, at (877) 344-7529 (U.S.), (855) 669-9658 (Canada) or (412) 317-0088 (International). The replay access code is 10117499.

The archived webcast will be available for one year via the aforementioned URLs. 

About Juniper Pharmaceuticals
Juniper Pharmaceuticals, Inc.'s core businesses include its CRINONE® (progesterone gel) franchise and Juniper Pharma Services, which provides high-end fee-for-service pharmaceutical development and clinical trials manufacturing to clients. The Company is also leveraging its differentiated intravaginal ring technology, which offers the potential to address unmet needs in women's health. Please visit www.juniperpharma.com for more information.

Juniper Pharmaceuticals™ is a trademark of Juniper Pharmaceuticals, Inc., in the U.S. and EU.

CRINONE® is a registered trademark of Merck KGaA, Darmstadt, Germany, outside the U.S. and of Allergan plc in the U.S.

Forward Looking Statements 

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the strength of Juniper's business, product candidates and future results and the adaquecy of its current capital position, including the ability to achieve double-digit growth in its core businesses and positive cash flow and the outcome of its exploration of partnering opportunities for its IVR product candidates and strategic alternatives for the company.  Management believes that these forward-looking statements are reasonable as and when made.  However, such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those projected in the forward-looking statements.  These risks and uncertainties include, but are not limited to: the uncertainty associated with being able to identify, evaluate and complete any strategic alternative, the impact of the announcement of the Company's review of strategic alternatives, as well as any strategic alternative that may be pursued, on the Company's business, including its financial and operating results and its employees and customers, risks associated with the drug development process generally, including the outcomes of clinical trials and the regulatory review process; the risk that the results of previously conducted studies involving our product candidates will not be repeated or observed in ongoing or future studies or following commercial launch, if such product candidates are approved; risks associated with obtaining, maintaining and protecting intellectual property; risks associated with Juniper Pharmaceuticals' ability to enforce its patents against infringers and defend its patent portfolio against challenges from third parties; the risk of competition from currently approved therapies and from other companies developing products for similar uses; risk associated with Juniper Pharmaceuticals' ability to manage operating expenses and/or obtain additional funding to support its business activities; and risks associated with Juniper Pharmaceuticals' dependence on third parties.  For a discussion of certain risks and uncertainties associated with Juniper Pharmaceuticals' forward-looking statements, please review the Company's reports filed with the SEC, including, but not limited to, its Annual Report on Form 10-K for the period ended December 31, 2017 and subsequent filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. These statements are based on management's current expectations and Juniper Pharmaceuticals does not undertake any responsibility to revise or update any forward-looking statements contained herein, except as expressly required by law.

Investor Contact:   
Argot Partners
Laura Perry or Heather Savelle
212-600-1902
laura@argotpartners.com 
heather@argotpartners.com

To receive Juniper's press releases, SEC filings or calendar alerts by email click here.
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JUNIPER PHARMACEUTICALS, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

(In thousands)


December 31,


December 31,

2017

2016





Assets:






Cash and cash equivalents

$

21,446


$

20,994

Accounts receivable, net


4,734



6,573

Inventories


6,326



5,621

Prepaid expenses and other current assets


3,467



1,539







Total current assets


35,973



34,727

Property and equipment, net


15,229



13,366

Intangible assets, net


744



969

Goodwill


9,123



8,342

Other assets


151



167







Total Assets

$

61,220


$

57,571










Liabilities, contingently redeemable preferred stock, and stockholders' equity:






Accounts payable

$

4,038


$

3,893

Accrued expenses and other


5,615



5,271

Deferred revenue


6,141



5,624

Current portion of long-term debt


546



204







Total current liabilities


16,340



14,992

Long-term debt, net of current portion


3,253



2,203

Other noncurrent liabilities


115



56







Total Liabilities


19,708



17,251







Commitments and Contingencies






Series C preferred stock




550




Total stockholders' equity


41,512



39,770







Total liabilities, contingently redeemable preferred stock, and stockholders' equity

$

61,220


$

57,571

 

  

JUNIPER PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)














Three Months Ended 
December 31,


For the Year Ended
December 31, 


2017


2016


2017


2016







Revenues












Product revenues

$

7,004


$

6,495


$

32,688


$

27,211

Service revenues


4,786



3,101



17,291



13,065

Royalties




11,334





14,297

Total net revenues


11,790



20,930



49,979



54,573













Cost of product revenues


4,237



3,703



19,013



15,595

Cost of service revenues


2,799



2,068



9,948



8,698

Total cost of revenues


7,036



5,771



28,961



24,293













Gross profit


4,754



15,159



21,018



30,280









Operating expenses












Sales and marketing


553



349



1,859



1,259

Research and development


1,575



1,442



6,860



9,676

General and administrative


3,122



4,251



15,385



14,066

Restructuring charge


21





777



Total operating expenses


5,271



6,042



24,881



25,001









(Loss) income from operations


(517)



9,117



(3,863)



5,279









Interest expense, net


(25)



(23)



(130)



(97)

Other income, net


1,568



564



1,747



860

(Loss) income before income taxes


1,026



9,658



(2,246)



6,042

Income tax (benefit) expense


(141)



44



(186)



91

Net  income (loss)

$

1,167


$

9,614


$

(2,060)


$

5,951













Adjustments attributable to preferred stockholders




(7)



445



(28)













Income (loss) available to common stockholders

$

1,167


$

9,607


$

(1,615)


$

5,923













Diluted net income (loss) income per share

$

0.11


$

0.88


$

(0.15)


$

0.55













Diluted weighted average shares outstanding


10,989



10,908



10,824



10,891













Basic net income (loss) income per share

$

0.11


$

0.89


$

(0.15)


$

0.55













Basic weighted average shares outstanding


10,844



10,802



10,824



10,795

 

 

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SOURCE Juniper Pharmaceuticals, Inc.