2020 Q2 Form 10-Q Financial Statement

#000143853320000022 Filed on July 31, 2020

View on sec.gov

Income Statement

Concept 2020 Q2 2019 Q2 2019 Q1
Revenue $48.43M $44.71M $39.57M
YoY Change 8.33% 8.15% 2.96%
Cost Of Revenue $1.494M $979.0K $1.017M
YoY Change 52.6% -16.89% -36.95%
Gross Profit $46.94M $43.73M $38.55M
YoY Change 7.34% 8.89% 4.71%
Gross Profit Margin 96.92% 97.81% 97.43%
Selling, General & Admin $34.97M $38.97M $32.67M
YoY Change -10.26% 55.26% 23.43%
% of Gross Profit 74.51% 89.12% 84.74%
Research & Development $30.79M $37.93M $33.44M
YoY Change -18.83% 10.08% 35.75%
% of Gross Profit 65.6% 86.75% 86.75%
Depreciation & Amortization $5.850M $4.840M $4.901M
YoY Change 20.87% 4.31% 12.72%
% of Gross Profit 12.46% 11.07% 12.71%
Operating Expenses $65.76M $81.24M $77.80M
YoY Change -19.05% 29.16% 38.08%
Operating Profit -$23.11M -$36.53M -$38.23M
YoY Change -36.73% 69.43% 113.42%
Interest Expense -$4.634M -$4.817M -$4.865M
YoY Change -3.8% 355.72% 321.21%
% of Operating Profit
Other Income/Expense, Net -$2.892M -$2.103M -$2.348M
YoY Change 37.52% 249.34% 890.72%
Pretax Income -$26.00M -$38.63M -$40.58M
YoY Change -32.69% 74.32% 123.57%
Income Tax $65.00K $69.00K $401.0K
% Of Pretax Income
Net Earnings -$26.07M -$38.70M -$40.98M
YoY Change -32.64% 73.32% 122.97%
Net Earnings / Revenue -53.83% -86.57% -103.56%
Basic Earnings Per Share -$0.58 -$0.99
Diluted Earnings Per Share -$0.58 -$922.3K -$0.99
COMMON SHARES
Basic Shares Outstanding 44.76M shares 41.44M shares 41.41M shares
Diluted Shares Outstanding 44.76M shares 41.41M shares

Balance Sheet

Concept 2020 Q2 2019 Q2 2019 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $370.3M $298.4M $270.7M
YoY Change 24.1% 16.7% 2.52%
Cash & Equivalents $237.2M $75.66M $69.84M
Short-Term Investments $133.1M $222.7M $200.8M
Other Short-Term Assets $7.700M $10.60M $9.600M
YoY Change -27.36% 92.73% 108.7%
Inventory $6.286M $5.050M $5.571M
Prepaid Expenses
Receivables $14.10M $15.50M $12.71M
Other Receivables $20.10M $0.00 $0.00
Total Short-Term Assets $505.6M $457.0M $475.5M
YoY Change 10.62% 63.85% 65.8%
LONG-TERM ASSETS
Property, Plant & Equipment $2.930M $3.015M $2.995M
YoY Change -2.82% -12.74% -1.55%
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 0.0% 0.0%
Other Assets $13.90M $12.70M $13.47M
YoY Change 9.39% 137.38% 108.63%
Total Long-Term Assets $173.1M $190.6M $192.2M
YoY Change -9.15% -10.21% -10.2%
TOTAL ASSETS
Total Short-Term Assets $505.6M $457.0M $475.5M
Total Long-Term Assets $173.1M $190.6M $192.2M
Total Assets $678.7M $647.6M $667.7M
YoY Change 4.81% 31.85% 33.32%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $10.20M $12.52M $7.627M
YoY Change -18.54% 59.54% -19.06%
Accrued Expenses $44.38M $50.56M $46.62M
YoY Change -12.22% 43.34% 47.32%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $22.50M
YoY Change -100.0%
Total Short-Term Liabilities $69.93M $90.59M $104.1M
YoY Change -22.8% -12.47% 84.12%
LONG-TERM LIABILITIES
Long-Term Debt $210.0M $199.9M $197.5M
YoY Change 5.05% 336.95%
Other Long-Term Liabilities $19.51M $22.10M $23.41M
YoY Change -11.74% 352.91% 407.08%
Total Long-Term Liabilities $19.51M $22.10M $23.41M
YoY Change -11.74% 352.91% 407.08%
TOTAL LIABILITIES
Total Short-Term Liabilities $69.93M $90.59M $104.1M
Total Long-Term Liabilities $19.51M $22.10M $23.41M
Total Liabilities $360.0M $370.5M $382.0M
YoY Change -2.82% 82.37% 89.73%
SHAREHOLDERS EQUITY
Retained Earnings -$441.7M -$349.7M -$311.0M
YoY Change 26.31% 68.09% 67.46%
Common Stock $759.0M $626.0M $596.6M
YoY Change 21.24% 25.91% 22.59%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $318.6M $277.1M $285.7M
YoY Change
Total Liabilities & Shareholders Equity $678.7M $647.6M $667.7M
YoY Change 4.81% 31.85% 33.32%

Cashflow Statement

Concept 2020 Q2 2019 Q2 2019 Q1
OPERATING ACTIVITIES
Net Income -$26.07M -$38.70M -$40.98M
YoY Change -32.64% 73.32% 122.97%
Depreciation, Depletion And Amortization $5.850M $4.840M $4.901M
YoY Change 20.87% 4.31% 12.72%
Cash From Operating Activities -$6.450M -$19.11M -$20.49M
YoY Change -66.25% 592.39% 39.08%
INVESTING ACTIVITIES
Capital Expenditures -$4.440M -$3.390M $19.00K
YoY Change 30.97% -9.12% -51.28%
Acquisitions
YoY Change
Other Investing Activities $72.23M $28.62M -$7.430M
YoY Change 152.38% -9.57% -41.03%
Cash From Investing Activities $67.80M $25.23M -$11.41M
YoY Change 168.73% -9.6% -45.27%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $108.7M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 108.8M -320.0K -$1.110M
YoY Change -34096.87% -110.39% -58.92%
NET CHANGE
Cash From Operating Activities -6.450M -19.11M -$20.49M
Cash From Investing Activities 67.80M 25.23M -$11.41M
Cash From Financing Activities 108.8M -320.0K -$1.110M
Net Change In Cash 170.1M 5.800M -$33.04M
YoY Change 2833.45% -79.45% -13.69%
FREE CASH FLOW
Cash From Operating Activities -$6.450M -$19.11M -$20.49M
Capital Expenditures -$4.440M -$3.390M $19.00K
Free Cash Flow -$2.010M -$15.72M -$20.51M
YoY Change -87.21% -1720.62% 38.84%

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DESCRIPTION OF BUSINESS<div style="margin-top:12pt;margin-bottom:6pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#006ebf;font-family:'Arial',sans-serif;font-size:12pt;font-weight:700;line-height:120%;">Organization and Description of Business</span></div><div style="text-align:justify;margin-top:3pt;margin-bottom:6pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial Narrow',sans-serif;font-size:9pt;font-weight:400;line-height:120%;">Retrophin, Inc. (“we”, “our”, “us”, “Retrophin” and the “Company”) 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 identifying, developing and delivering life-changing therapies to people living with 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 serious or rare diseases and that we believe offer attractive growth characteristics.</span></div><div style="text-align:justify;margin-top:3pt;margin-bottom:6pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial Narrow',sans-serif;font-size:9pt;font-weight:400;line-height:120%;">On January 30, 2020, the World Health Organization (“WHO”) declared that the recent novel coronavirus (COVID-19) outbreak was a global health emergency, which prompted national governments to begin putting actions in place to slow the spread of COVID-19. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic. The outbreak of COVID-19 has resulted in travel restrictions, quarantines, “stay-at-home” and “shelter-in-place” orders and extended shutdown of certain businesses around the world. While the impact of the COVID-19 pandemic did not have a material adverse effect on our financial position or results of operations for the three and six months ended June 30, 2020, these governmental actions and the widespread economic disruption arising from the pandemic have the potential to materially impact our business and influence our business decisions. The extent and duration of the pandemic is unknown, and the future effects on our business are uncertain and difficult to predict. The Company is continuing to monitor the events and circumstances surrounding the COVID-19 pandemic, which may require adjustments to the Company’s estimates and assumptions in the future.</span></div><div style="margin-top:9pt;margin-bottom:6pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#666666;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%;">Clinical Programs:</span></div><div style="margin-top:3pt;margin-bottom:6pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial Narrow',sans-serif;font-size:9pt;font-weight:400;line-height:120%;">Sparsentan</span><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial Narrow',sans-serif;font-size:9pt;font-style:italic;font-weight:400;line-height:120%;">,</span><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial Narrow',sans-serif;font-size:9pt;font-weight:400;line-height:120%;"> also known as RE-021, is an investigational product candidate with a dual mechanism of action, selective endothelin receptor antagonist (“ERA”), with in vitro selectivity toward endothelin receptor type A, and a potent angiotensin receptor blocker (“ARB”). Sparsentan is currently being evaluated in two pivotal Phase 3 clinical studies in the following indications:</span></div><div style="text-indent:-18pt;padding-left:36pt;margin-top:9pt;margin-bottom:3pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#4c4c4c;font-family:'Arial Narrow',sans-serif;font-size:9pt;font-weight:700;line-height:120%;">•</span><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial Narrow',sans-serif;font-size:9pt;font-weight:700;line-height:120%;padding-left:15.42pt;">Focal segmental glomerulosclerosis ("FSGS")</span><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial Narrow',sans-serif;font-size:9pt;font-weight:400;line-height:120%;"> is a rare kidney disease characterized by proteinuria where the glomeruli become progressively scarred. FSGS is a leading cause of end-stage renal disease.</span></div><div style="text-indent:-18pt;padding-left:36pt;margin-top:9pt;margin-bottom:3pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#4c4c4c;font-family:'Arial Narrow',sans-serif;font-size:9pt;font-weight:700;line-height:120%;">•</span><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial Narrow',sans-serif;font-size:9pt;font-weight:700;line-height:120%;padding-left:15.42pt;">Immunoglobulin A nephropathy ("IgAN")</span><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial Narrow',sans-serif;font-size:9pt;font-weight:400;line-height:120%;"> is an immune-complex-mediated glomerulonephritis characterized by hematuria, proteinuria, and variable rates of progressive renal failure. IgAN is the most common primary glomerular disease.</span></div><div style="margin-top:3pt;margin-bottom:6pt;"><span><br/></span></div><div style="margin-top:3pt;margin-bottom:6pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial Narrow',sans-serif;font-size:9pt;font-weight:400;line-height:120%;">Chenodal® has been recognized as the standard of care for cerebrotendinous xanthomatosis (“CTX”) patients for more than three decades but is not currently labeled for this indication. In January 2020, we randomized the first patients in a Phase 3 clinical trial to evaluate the effects of Chenodal in adult and pediatric patients with CTX. The pivotal study, known as the RESTORE study, is intended to support a new drug application (“NDA”) submission for marketing authorization of Chenodal for CTX in the United States.</span></div><div style="margin-top:9pt;margin-bottom:6pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#666666;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%;">Cooperative Research and Development Agreements ("CRADAs"):</span></div><div style="margin-top:3pt;margin-bottom:6pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial Narrow',sans-serif;font-size:9pt;font-weight:400;line-height:120%;">The Company is a participant in two CRADAs, which form a multi-stakeholder approach to pool resources with leading experts, and incorporates the patient perspective early in the identification and development process. Retrophin has partnered with the National Institutes of Health’s National Center for Advancing Translational Sciences ("NCATS") and leading patient advocacy organizations, NGLY1.org and Alagille Syndrome Alliance ("ALGSA"), aimed at the identification of potential small molecule therapeutics for NGLY1 deficiency and Alagille syndrome, respectively. There are no treatment options currently approved for these diseases.</span></div><div style="text-align:justify;margin-top:9pt;margin-bottom:6pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#666666;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%;">Approved products:</span></div><div style="text-indent:-18pt;padding-left:36pt;text-align:justify;margin-top:3pt;margin-bottom:6pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial Narrow',sans-serif;font-size:9pt;font-weight:400;line-height:120%;">•</span><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial Narrow',sans-serif;font-size:9pt;font-weight:400;line-height:120%;padding-left:15.42pt;">Chenodal (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 been the standard of care for CTX patients for more than three decades.</span></div><div style="text-indent:-18pt;padding-left:36pt;text-align:justify;margin-top:3pt;margin-bottom:6pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial Narrow',sans-serif;font-size:9pt;font-weight:400;line-height:120%;">•</span><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial Narrow',sans-serif;font-size:9pt;font-weight:400;line-height:120%;padding-left:15.42pt;">Cholbam® (cholic acid capsules) is approved in the United States 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.</span></div>•Thiola® and Thiola EC® (tiopronin tablets) are approved in the United States for the prevention of cystine (kidney) stone formation in patients with severe homozygous cystinuria.
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2000 USD
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67000 USD
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7000000.0 USD
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500000 USD
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4300000 USD
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2400000 USD
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3400000 USD
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7432000 USD
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7272000 USD
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7321000 USD
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3552000 USD
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44763843 shares
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17110450000 shares
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16512348000 shares
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16878538000 shares
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16564478000 shares
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18000000.0 USD
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5300000 shares
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19.20
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5954000 USD
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5748000 USD
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11864000 USD
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12268000 USD
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3037000 USD
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2713000 USD
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3249000 USD
CY2019Q4 us-gaap Inventory Finished Goods Net Of Reserves
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3369000 USD
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6286000 USD
CY2019Q4 us-gaap Inventory Net
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6082000 USD
CY2020Q2 us-gaap Inventory Valuation Reserves
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3600000 USD
CY2019Q4 us-gaap Inventory Valuation Reserves
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3100000 USD
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14100000 USD
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500000 USD
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25000000.0 USD
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1000000.0 USD
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25500000 USD
CY2019Q1 rtrx Write Off Of Contingent Consideration
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18000000.0 USD
CY2019Q1 us-gaap Disposal Group Not Discontinued Operation Gain Loss On Disposal
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CY2020Q2 us-gaap Sale Of Stock Number Of Shares Issued In Transaction
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7500000 shares
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15.50
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108600000 USD
CY2020Q1 us-gaap Proceeds From Issuance Of Common Stock
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100000000.0 USD

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