Sees FY23 adjusted EBITDA $85M-$93M. "Assertio's successful achievement of its strategic priorities in 2022 delivered financial results that exceeded our outlook quarter after quarter, culminating in an especially strong fourth quarter as we shifted Indocin demand in favor of higher margin commercial purchases," said Dan Peisert, CEO. "The fourth quarter was a springboard into 2023 where we see opportunities to increase sales in our key Indocin, Sympazan and Otrexup assets, which we expect will offset the January loss of exclusivity on Cambia. Our life cycle management program for Indocin will be one of our key priorities for 2023 as we seek to access a larger addressable market. Later this year, we expect to be enrolling patients into a clinical trial that is currently being designed to expand the label and, if approved, to provide regulatory exclusivity."
Reports Q4 revenue $50.35M, consensus $47.44M. The company said, "The 2022 results reported today reflect a full year benefit from the creation of the Company's non-personal commercial platform and related cost savings. In addition, the strategic actions taken in the second half - refinancing the debt, exiting an unprofitable sales channel and acquiring Sympazan - as well as the acquisition of Otrexup in late 2021, have contributed to the positive change in our business. These actions have produced full year results where net product sales increased 42%, adjusted EBITDA increased 108% and operating cash flow increased by $73.1 million."
BWS Financial raised the firm's price target on Assertio Holdings to $8 from $6 and keeps a Buy rating on the shares. The company could "significantly benefit" from this week's new guideline set by American Society for Gastrointestinal Endoscopy related to the use of indomethacin post endoscopic retrograde cholangiopancreatography surgery, the analyst tells investors in a research note. The firm says Indocin is Assertio's largest source of revenue and nearly all the revenue from off-line use is related to post ERCP surgery. It believes the new guidance could result in many more patients being given Indocin.
Assertio entered into separate, privately negotiated exchange agreements with a limited number of holders of Assertio's currently outstanding 6.50% Convertible Senior Notes due 2027. Pursuant to the Exchange Agreements, Assertio will exchange $30.0 million aggregate principal amount of Exchanged Notes for a combination of a cash payment and an agreed number of shares of Assertio's common stock. Assertio will pay an aggregate of $10.5 million in cash and issue an aggregate of approximately 7.0 million shares of its common stock in the transactions. Assertio will not receive any cash proceeds from the issuance of the shares of its common stock. The transactions are subject to customary closing conditions and are expected to close on February 27, 2023. The shares of Assertio's common stock will be issued in private placements exempt from registration in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended. Upon completion of the transactions, Assertio expects to have $40.0 million aggregate principal remaining outstanding on its 6.50% Convertible Senior Notes due 2027.
Sees Q4 product ales $49M-$50M, consensus $46.82M. "Assertio's preliminary 2022 results demonstrated our ability to scale net product sales and generate substantial cash flow to fund our growth objectives, both organic and strategic," said Dan Peisert, Chief Executive Officer. "We ended 2022 with cash and cash equivalents of $64.9 million, which was greater than our September cash balance even after funding $25 million of asset purchase payments for Otrexup and Sympazan in the fourth quarter."
Assertio Holdings announced that it has provided the LGS Foundation a $100,000 educational grant to assist in efforts to raise awareness of LGS and provide educational materials to the LGS community. In October, Assertio acquired an exclusive license for SYMPAZAN or clobazam oral film CIV, which is approved by the U.S. Food and Drug Administration FDA for the adjunctive treatment of seizures associated with LGS in patients two years of age or older.According to the LGS Foundation, Lennox-Gastaut Syndrome or LGS is a severe epilepsy syndrome. LGS is a rare disease, about 50,000 people in the United States have LGS. It is generally diagnosed between the ages of 3 and 5, but some people aren't correctly diagnosed until much later. People with LGS may have many different types of seizures, and the condition can be complex to manage. Some people with LGS also experience cognitive and behavioral challenges.