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Press Release

Crescita Therapeutics™ Reports 2017 Fourth Quarter and Year End Results

Crescita Therapeutics
Posted on: 31 Mar 18

MISSISSAUGA, ON, March 28, 2018 /PRNewswire/ - Crescita Therapeutics Inc. (TSX: CTX) (Crescita or the Company), a commercial dermatology company with a portfolio of non-prescription skincare and prescription drug products for the treatment and care of skin conditions, diseases and their symptoms, today reported its financial results for the fourth quarter and fiscal year ended December 31, 2017.  

F2017 Year-over-Year Financial Highlights

Revenue1 of $12.0 million, up $8.5 million versus F2016, including $3.3 million of up-front and milestone payments;

Adjusted EBITDA1,2 of $(4.4) million, an improvement of $9.0 million versus F2016;

Net loss of $(11.5)1,3 million, a reduction of $5.4 million versus F2016;

Net loss per share from continuing operations1,3 of $(0.81) a $0.38 improvement versus F2016;

Non-cash goodwill and intangible assets impairment of $5.7 million recorded in connection to the INTEGA Acquisition;

Cash position of $7.0 million after paying down long-term debt and other obligations by $4.2 million.

Q4-F2017 Year-over-Year Financial Highlights

Revenue of $2.3 million versus $2.2 million in Q4-F2016;

Adjusted EBITDA2 of $(2.0), improved by $2.0 million versus Q4-F2016;

Net loss per share from continuing operations3 of $(0.59), versus $(0.33) in Q4-F2016;

Cash position of $7.0 million.

"Fiscal 2017 was a year of many operational and financial challenges for Crescita.  We are proud of the progress we have made over the last year. We have refocused our corporate strategy, realigned our resources and have signed certain strategic agreements, such as the acquisition of the Alyria® product line and the out-licensing of the Pliaglis® U.S. rights to Taro, all of which will be pivotal to securing Crescita's future," said Serge Verreault, President of Crescita.  

Mr. Verreault added, "While still in a loss position, we have improved our Adjusted EBITDA by $9.0 million year-over-year, we have paid down our long-term debt and other obligations by $4.2 million, and, most recently, we have completed our Rights Offering, raising gross proceeds of approximately $3.7 million. This additional cash now affords us the flexibility and agility to successfully execute our strategic growth plan and deliver shareholder value going forward as we work towards making Crescita a leading North-American skincare company." 

1 The F2017 results reflect the full year's impact of the INTEGA acquisition, versus only four months in F2016 due to the timing of the acquisition.
2Adjusted EBITDA is a non-IFRS measure. This term is defined as earnings (loss) from continuing operations before interest, income taxes (recovery), depreciation and amortization, gain on debt renegotiations, net, equity-settled stock-based compensation (SBC), goodwill and intangible assets impairment, accretion on the fair value of inventory, and foreign currency (gains) and losses.  Please refer to the Non-IFRS Financial Measures and Adjusted EBITDA Reconciliation sections of this press release.
3Net loss and net loss per share from continuing operations for F2017 and Q4-F2017 included a non-cash goodwill and intangible assets impairment of $5.7 million.

Key Operational Highlights of F2017 and Subsequent Event

Successfully completed a Rights Offering on March 9, 2018, raising approximately $3.7 million in gross equity financing to support our growth;

Received a total of US$2.5 million (CAD $3.3 million) in up-front and milestone payments from Taro Pharmaceuticals Inc. (Taro) upon the sale of the license for the exclusive U.S. rights to Pliaglis and the issuance of the Flexicaine composition patent;

Amended the Knight loan, freeing up $8.6 million of previously restricted cash;

Completed a convertible debenture financing with Bloom Burton Funds for proceeds of $1.0 million;

Completed the acquisition of Alyria from Sanofi Consumer Health Inc. - a skincare line using scientific research;

Received positive topline results from a Phase 2 clinical trial (The Trial) studying the efficacy of the MiCal1 formulation in patients with plaque psoriasis. The Trial was conducted by our partner, Ferndale Laboratories, Inc., in conjunction with a leading U.S. Contract Research Organization.

Q4-F2017 and F2017 Financial Results 

Note: All figures are in Canadian dollars. The fiscal 2017 MD&A, audited consolidated financial statements and accompanying notes can be found on www.crescitatherapeutics.com/investors and have been filed with SEDAR.

For more information:
www.prnewswire.com/news-releases/crescita-therapeutics-reports-2017-fourth-quarter-and-year-end-results-678151623.html

Editor's Details

Mike Wood
PharmiWeb.com
www.pharmiweb.com
editor@pharmiweb.com

Last updated on: 31/03/2018

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