Crescita Posts Financial Results For 2016

- March 30th, 2017

Crescita Therapeutics (TSX:CTX) released their fourth quarter and 2016 financial results.

Crescita Therapeutics (TSX:CTX) released their fourth quarter and 2016 financial results.
As quoted in the press release:

The Company commenced operations on a stand-alone basis on March 1, 2016, the effective date of a reorganization of the former Nuvo Research Inc. (Nuvo Research) pursuant to which certain development stage products and assets were “spun out” from Nuvo Research to the Company.
Corporate Developments:
MMPE

  • In March, the Company signed an exclusive license agreement with a U.S.-based, major dermatological contract research company (CRO) (the Licensee) to develop prescription treatments of skin diseases utilizing Crescita’s patented MMPE technology. The Licensee will oversee and fund the cost of all development activities until commercialization partner(s) for the products are secured. Crescita is entitled to a share of royalties and other consideration received by the Licensee from such partners based on a formula that includes compensation to Crescita for granting the Licensee the exclusive license to the MMPE technology.

ISDIN

  • In January, INTEGA Skin Sciences (INTEGA) launched the ISDIN® Acnisdin and Nutratopic product lines at Brunet pharmacy chains throughout Québec. The trademark is owned by ISDIN S.A. and is being used under license by INTEGA.

Pliaglis

  • Crescita is evaluating strategies to optimize product sales in Canada, the United States and Mexico of Pliaglis, its commercial stage product that has received approval for marketing by the United States Food and Drug Administration (FDA) and by Health Canada. The Company is transitioning these rights from Galderma S.A. and expects this process to be completed in the fourth quarter.

Strategic Initiative

  • The Company is continually assessing in-licensing, merger and acquisition activities, or some combination thereof, related to new product opportunities. The Company’s goal is to leverage its current sales and manufacturing infrastructure to grow the Company.

For further details on the results, please refer to the Management, Discussion and Analysis (MD&A) and Consolidated Financial Statements which are available on the Company’s website (www.crescitatherapeutics.com).
Cash
Cash and short-term investments were $18.4 million compared to $23.6 million at September 30, 2016 and $0.5 million at December 31, 2015.
Revenues
Total revenue, consisting of product sales, royalties and services revenue, for the three months ended December 31, 2016 was $2.2 million compared to $60,000 for the three months ended December 31, 2015.  The increase in revenue primarily related to product sales of non-prescription skincare products resulting from the INTEGA Acquisition.  Total revenue was $3.5 million for the year ended December 31, 2016 compared to $0.2 million for the year ended December 31, 2015.
Operating Expenses
Total operating expenses for the three months ended December 31, 2016 were $7.1 million compared to $2.5 million for the three months ended December 31, 2015.  The increase in operating expenses was primarily due to transactional costs for INTEGA, as well as incremental costs for the integration of INTEGA and costs related to the restructuring of the business.  Total operating expenses for the year ended December 31, 2016 were $18.1 million compared to $7.7 million for the year ended December 31, 2015.
Net Loss
Net loss for the three months ended December 31, 2016 was $4.1 million compared to $4.4 million for the three months ended December 31, 2015.  In the comparative quarter, net loss included a net loss from discontinued operations of $1.9 million which was attributable to the development of WF10 for the treatment of allergic rhinitis.  The improvement in net loss for the current quarter was a result of the increased revenues netted against the corresponding costs to realize those revenues and was offset by the additional one-time non-recurring costs incurred to integrate and restructure the operations.  Net loss was $14.9 million for the year ended December 31, 2016 compared to $15.4 million for the year ended December 31, 2015.
Share Capital
The number of common shares outstanding as at December 31, 2016 was 13,935,638.
AboutCrescita Therapeutics Inc.
Crescita (TSX:CTX) is a publicly traded, Canadian commercial dermatology company with a portfolio of non-prescription skincare products and prescription drug products for the treatment and care of skin conditions and diseases and their symptoms.  Crescita owns multiple proprietary drug delivery platforms that support the development of patented formulations that can facilitate the delivery of active drugs into or through the skin.  Crescita’s board of directors and management team have demonstrated success in building Crescita’s predecessor company, Nuvo Research Inc., including developing multiple drugs that are now approved and commercialized and negotiating multiple licensing transactions. For additional information, please visit www.crescitatherapeutics.com.

Click here to read the full press release.

Source: www.crescitatherapeutics.com

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