2018 Q2 Form 10-Q Financial Statement

#000143853318000016 Filed on May 01, 2018

View on sec.gov

Income Statement

Concept 2018 Q2 2018 Q1 2017 Q1
Revenue $41.34M $38.43M $33.62M
YoY Change 6.54% 14.31% 15.9%
Cost Of Revenue $1.178M $1.613M $709.0K
YoY Change 47.8% 127.5% -6.34%
Gross Profit $40.16M $36.82M $32.91M
YoY Change 5.67% 11.87% 16.49%
Gross Profit Margin 97.15% 95.8% 97.89%
Selling, General & Admin $25.10M $26.47M $23.12M
YoY Change -12.95% 14.51% 20.86%
% of Gross Profit 62.5% 71.89% 70.23%
Research & Development $34.46M $24.64M $20.86M
YoY Change 76.88% 18.1% 42.18%
% of Gross Profit 85.81% 66.91% 63.38%
Depreciation & Amortization $4.640M $4.348M $4.284M
YoY Change 4.5% 1.49% 10.1%
% of Gross Profit 11.55% 11.81% 13.02%
Operating Expenses $62.90M $56.34M $48.03M
YoY Change 20.04% 17.31% 28.94%
Operating Profit -$21.56M -$17.91M -$14.41M
YoY Change 58.55% 24.32% 74.83%
Interest Expense -$1.057M -$1.155M -$132.0K
YoY Change 60.64% 775.0% -19.02%
% of Operating Profit
Other Income/Expense, Net -$602.0K -$237.0K $1.254M
YoY Change -61.31% -118.9% -108.72%
Pretax Income -$22.16M -$18.15M -$13.15M
YoY Change 46.25% 37.97% -314.03%
Income Tax $167.0K $229.0K -$2.064M
% Of Pretax Income
Net Earnings -$22.33M -$18.38M -$11.09M
YoY Change 68.79% 65.72% -198.88%
Net Earnings / Revenue -54.02% -47.82% -32.99%
Basic Earnings Per Share -$0.56 -$0.46 -$0.29
Diluted Earnings Per Share -$0.56 -$0.46 -$0.32
COMMON SHARES
Basic Shares Outstanding 39.94M shares 39.66M shares 38.05M shares
Diluted Shares Outstanding 39.66M shares 39.16M shares

Balance Sheet

Concept 2018 Q2 2018 Q1 2017 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $255.7M $264.0M $248.2M
YoY Change -13.61% 6.39% 11.61%
Cash & Equivalents $89.31M $61.12M $41.87M
Short-Term Investments $166.4M $202.9M $206.3M
Other Short-Term Assets $5.500M $4.600M $6.900M
YoY Change -8.33% -33.33% -40.52%
Inventory $5.388M $5.142M $4.751M
Prepaid Expenses
Receivables $12.32M $12.98M $15.43M
Other Receivables $0.00 $0.00 $47.20M
Total Short-Term Assets $278.9M $286.8M $322.4M
YoY Change -12.75% -11.04% 8.28%
LONG-TERM ASSETS
Property, Plant & Equipment $3.455M $3.042M $2.428M
YoY Change 36.02% 25.29% 482.25%
Goodwill $936.0K $936.0K $936.0K
YoY Change 0.0% 0.0% 0.0%
Intangibles
YoY Change
Long-Term Investments $15.00M $15.00M
YoY Change
Other Assets $5.351M $6.457M $3.661M
YoY Change 47.49% 76.37% 96.93%
Total Long-Term Assets $212.2M $214.0M $188.0M
YoY Change 13.2% 13.84% -10.21%
TOTAL ASSETS
Total Short-Term Assets $278.9M $286.8M $322.4M
Total Long-Term Assets $212.2M $214.0M $188.0M
Total Assets $491.1M $500.8M $510.4M
YoY Change -3.15% -1.88% 0.65%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $7.847M $9.423M $4.671M
YoY Change -13.54% 101.73% 0.52%
Accrued Expenses $35.27M $31.64M $30.19M
YoY Change 27.8% 4.81% 48.06%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $45.40M
YoY Change
Total Short-Term Liabilities $103.5M $56.53M $76.56M
YoY Change 29.98% -26.16% 14.92%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $45.20M $44.60M
YoY Change -100.0% 1.35% 1.59%
Other Long-Term Liabilities $4.880M $4.617M $3.857M
YoY Change 26.72% 19.7% 33.51%
Total Long-Term Liabilities $4.880M $4.617M $3.857M
YoY Change 26.72% 19.7% 33.51%
TOTAL LIABILITIES
Total Short-Term Liabilities $103.5M $56.53M $76.56M
Total Long-Term Liabilities $4.880M $4.617M $3.857M
Total Liabilities $203.2M $201.3M $209.4M
YoY Change -3.86% -3.88% 11.49%
SHAREHOLDERS EQUITY
Retained Earnings -$208.0M -$185.7M -$129.0M
YoY Change 46.26% 43.95% 139.19%
Common Stock $497.2M $486.7M $430.4M
YoY Change 13.35% 13.09% 15.28%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $288.0M $299.5M $300.9M
YoY Change
Total Liabilities & Shareholders Equity $491.1M $500.8M $510.4M
YoY Change -3.15% -1.88% 0.65%

Cashflow Statement

Concept 2018 Q2 2018 Q1 2017 Q1
OPERATING ACTIVITIES
Net Income -$22.33M -$18.38M -$11.09M
YoY Change 68.79% 65.72% -198.88%
Depreciation, Depletion And Amortization $4.640M $4.348M $4.284M
YoY Change 4.5% 1.49% 10.1%
Cash From Operating Activities -$2.760M -$14.73M -$3.410M
YoY Change -150.46% 332.08% -4.48%
INVESTING ACTIVITIES
Capital Expenditures -$3.730M $39.00K $838.0K
YoY Change 23.92% -95.35% 3391.67%
Acquisitions
YoY Change
Other Investing Activities $31.65M -$12.60M $8.440M
YoY Change -32.36% -249.29% -217.88%
Cash From Investing Activities $27.91M -$20.85M $4.130M
YoY Change -36.22% -604.87% -142.32%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 3.080M -$2.702M 150.0K
YoY Change -262.11% -1901.33% -116.13%
NET CHANGE
Cash From Operating Activities -2.760M -$14.73M -3.410M
Cash From Investing Activities 27.91M -$20.85M 4.130M
Cash From Financing Activities 3.080M -$2.702M 150.0K
Net Change In Cash 28.23M -$38.28M 870.0K
YoY Change -40.35% -4499.66% -106.1%
FREE CASH FLOW
Cash From Operating Activities -$2.760M -$14.73M -$3.410M
Capital Expenditures -$3.730M $39.00K $838.0K
Free Cash Flow $970.0K -$14.77M -$4.248M
YoY Change -88.56% 247.76% 18.2%

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:13px;padding-top:12px;font-size:13pt;"><font style="font-family:Arial;font-size:13pt;color:#000000;font-style:normal;font-weight:bold;text-decoration:none;">DESCRIPTION OF BUSINESS</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:16px;font-size:12pt;"><font style="font-family:Arial;font-size:12pt;color:#1131c1;font-style:normal;font-weight:bold;text-decoration:none;">Organization and Description of Business</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:4px;text-align:justify;font-size:9.5pt;"><font style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">Retrophin, Inc. (&#8220;we&#8221;, &#8220;our&#8221;, &#8220;us&#8221;, &#8220;Retrophin&#8221; and the &#8220;Company&#8221;) refers to Retrophin, Inc., a Delaware corporation, as well as our direct and indirect subsidiaries. Retrophin is a fully integrated biopharmaceutical company headquartered in San Diego, California focused on the development, acquisition and commercialization of therapies for the treatment of rare diseases. We regularly evaluate and, where appropriate, act on opportunities to expand our product pipeline through licenses and acquisitions of products in areas that will serve patients with rare diseases and that we believe offer attractive growth characteristics.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:12px;font-size:10.5pt;"><font style="font-family:Arial;font-size:10.5pt;color:#424242;font-style:italic;font-weight:bold;text-decoration:none;">The Company is developing the following pipeline products:</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:4px;text-align:left;font-size:9.5pt;"><font style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">The Company is developing fosmetpantotenate (RE-024), a novel small molecule, as a potential treatment for </font><font style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">pantothenate kinase-associated neurodegeneration (&#8220;PKAN&#8221;). PKAN is a genetic neurodegenerative disorder that is typically diagnosed in the first decade of life. Consequences of PKAN include dystonia, dysarthria, rigidity, retinal degeneration, and severe digestive problems. There are currently no viable treatment options for patients with PKAN. Fosmetpantotenate is a phosphopantothenate replacement therapy that aims to restore levels of this key substrate in PKAN patients.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:4px;text-align:left;font-size:9.5pt;"><font style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">Sparsentan (RE-021) is an investigational product candidate which acts as both a potent </font><font style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">angiotensin receptor blocker (&#8220;ARB&#8221;), as well as a selective endothelin receptor antagonist (&#8220;ERA&#8221;), with in vitro selectivity toward endothelin receptor type A. The Company secured a license to sparsentan from Ligand Pharmaceuticals, Inc. and Bristol-Myers Squibb Company (who referred to it as DARA). The Company is developing sparsentan as a treatment for:</font></div><table cellpadding="0" cellspacing="0" style="padding-top:12px;padding-bottom:4px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:9.5pt;padding-left:24px;"><font style="font-family:Arial Narrow;font-size:9.5pt;color:#2c2c2c;font-weight:bold;">&#9642;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:9.5pt;"><font style="font-family:Arial Narrow;font-size:9.5pt;color:#2c2c2c;font-weight:normal;">Focal segmental glomerulosclerosis ("FSGS")</font><font style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">, which is a leading cause of end-stage renal disease and nephrotic syndrome (&#8220;NS&#8221;). There are no U.S. Food and Drug Administration ("FDA") approved pharmacologic treatments for FSGS and off-label resources are limited to ACE/ARBs, steroids, and immunosuppressant agents, which are effective in only a subset of patients.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:12px;padding-bottom:4px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:9.5pt;padding-left:24px;"><font style="font-family:Arial Narrow;font-size:9.5pt;color:#2c2c2c;font-weight:bold;">&#9642;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:9.5pt;"><font style="font-family:Arial Narrow;font-size:9.5pt;color:#2c2c2c;font-weight:normal;">Immunoglobulin A nephropathy ("IgAN</font><font style="font-family:Arial Narrow;font-size:9.5pt;color:#2c2c2c;font-weight:bold;">")</font><font style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">, which is characterized by hematuria, proteinuria, and variable rates of progressive renal failure. There is no FDA approved treatment for IgAN.</font></div></td></tr></table><div style="line-height:120%;padding-bottom:8px;padding-top:4px;text-align:left;font-size:9.5pt;"><font style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">The Company is a party to a&#160;joint development agreement with&#160;Censa Pharmaceuticals Inc. ("Censa"), a privately held biotechnology company focused on developing therapies for orphan metabolic diseases, to evaluate sepiapterin ("CNSA-001") for the treatment of phenylketonuria ("PKU"). CNSA-001 is an orally bioavailable form of a natural precursor of tetrahydrobiopterin ("BH4") with the potential to provide improved phenylalanine ("Phe") reduction in patients with PKU when compared to BH4.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:4px;text-align:left;font-size:9.5pt;"><font style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">PKU is a rare, genetic metabolic condition in which the body cannot breakdown Phe due to a missing or defective phenylalanine hydroxylase ("PAH") enzyme. High Phe levels can lead to developmental and physical growth delay, executive function impairment, seizures, and microcephaly caused by toxic Phe accumulation in the brain.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:4px;text-align:left;font-size:9.5pt;"><font style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">The Company is party to a three-way Cooperative Research and Development Agreement ("CRADA")&#160;with the National Institutes of Health&#8217;s National Center for Advancing Translational Sciences and patient advocacy foundation NGLY1.org&#160;to collaborate on research efforts aimed at the identification of potential small molecule therapeutics for N-glycanase deficiency ("NGLY1").</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:4px;text-align:left;font-size:9.5pt;"><font style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">NGLY1 is an extremely rare genetic disorder believed to be caused by a deficiency in an enzyme called N-glycanase-1, which is encoded by the gene NGLY1. The condition has been characterized by symptoms such as developmental delays, seizures, complex hyperkinetic movement disorders, diminished reflexes and an inability to produce tears. There are no approved therapeutic options for NGLY1 deficiency, and current therapeutic strategies are limited to symptom management.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:4px;text-align:left;font-size:9.5pt;"><font style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">Liquid ursodeoxycholic acid ("L-UDCA") is a liquid formulation of ursodeoxycholic acid being developed for the treatment of a rare liver disease called primary biliary cholangitis ("PBC"). The Company obtained the rights to L-UDCA in 2016 with the intention of making L-UDCA commercially available to the subset of PBC patients who have difficulty swallowing.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:12px;font-size:10.5pt;"><font style="font-family:Arial;font-size:10.5pt;color:#424242;font-style:italic;font-weight:bold;text-decoration:none;">The Company sells the following </font><font style="font-family:Arial;font-size:10.5pt;color:#424242;font-style:italic;font-weight:bold;text-decoration:none;">three</font><font style="font-family:Arial;font-size:10.5pt;color:#424242;font-style:italic;font-weight:bold;text-decoration:none;"> products:</font></div><table cellpadding="0" cellspacing="0" style="padding-top:4px;padding-bottom:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:9.5pt;padding-left:24px;"><font style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:9.5pt;"><font style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">Chenodal&#174; (chenodiol tablets) is approved in the United States for the treatment of patients suffering from gallstones in whom surgery poses an unacceptable health risk due to disease or advanced age. Chenodal has also been the standard of care for cerebrotendinous xanthomatosis ("CTX") patients for more than three decades and the Company is currently pursuing adding this indication to the label.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:4px;padding-bottom:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:9.5pt;padding-left:24px;"><font style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:9.5pt;"><font style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">Cholbam&#174; (cholic acid capsules) is approved in the United States (approved and marketed in Europe for select indications as Kolbam) for the treatment of bile acid synthesis disorders due to single enzyme defects and is further indicated for adjunctive treatment of patients with peroxisomal disorders.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:4px;padding-bottom:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:9.5pt;padding-left:24px;"><font style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:9.5pt;"><font style="font-family:Arial Narrow;font-size:9.5pt;color:#000000;">Thiola&#174; (tiopronin tablets) is approved in the United States for the prevention of cystine (kidney) stone formation in patients with severe homozygous cystinuria.</font></div></td></tr></table></div>

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