Valeritas Reports Second Quarter 2017 Financial Results
Conference Call and Webcast Today, August 11, at 11:00 a.m. EDT
BRIDGEWATER, New Jersey, August 11, 2017 --- Valeritas Holdings, Inc. (NASDAQ: VLRX) today announced financial results for the second quarter ended June 30, 2017.
Second Quarter 2017 Highlights:
Revenues of $4.8 million, down 2% from the same period in 2016 and gross profit of $1.8 million; sequential revenues up 4% from the first quarter 2017 demonstrating the high-touch and higher-service sales and marketing strategy is gaining traction;
Gross margin was 37.7% during the second quarter of 2017 compared to 35.3% during the same period in 2016, an increase of 240 basis points;
Total and new prescriptions in our non-disrupted territories targeted accounts grew 13% and 18%, respectively in the second quarter vs. a year ago;
Appointed Peter J. Devlin as chairman of the Company’s Board of Directors.
“We believe our capital efficient high-touch, higher-service sales and marketing strategy was further validated in the second quarter of 2017 as our non-disrupted sales territories targeted accounts experienced 18% new prescription growth compared to the prior year,” said John Timberlake, President and Chief Executive Officer of Valeritas. “Given this success, we increased the number of active sales territories from 30 to 48 in the quarter and launched our new marketing direct to patient activation programs to excellent initial feedback. While these achievements continue to be masked by declining revenue in accounts that we no longer actively service with our sales force, our confidence in our more focused sales and service strategy has grown and we expect continued sequential quarterly growth in the second half of 2017.”
Second Quarter Year 2017 Financial Results
Total revenue for the fiscal second quarter of 2017 was $4.8 million, a 2% decrease from the same period in 2016. This overall decrease was primarily due to a volume decline of 21% from accounts that are not targeted by our sales representatives under our capital efficient high-touch and higher-service sales and marketing strategy.
New prescriptions in targeted accounts in non-disrupted territories, defined as territories that have had the same sales representative for at least six months, increased by 18% year over year.
Targeted accounts in disrupted territories, defined primarily as territories with sales representatives who are new to the Company or new to a specific territory (tenure of six months or less), are demonstrating strong early trends. With the physician practices in these disrupted territories targeted accounts now once-again being serviced, new prescriptions increased sequentially from the first quarter of 2017 by 14%, thus reversing the declining trend the Company has seen over the last couple of quarters in these territories.
The following information was filed by Valeritas Holdings Inc. (VLRX) on Friday, August 11, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: VLRX CIK: 1619250 Form Type:10-Q Quarterly Report Accession Number: 0001628280-17-008587 Submitted to the SEC: Fri Aug 11 2017 4:23:09 PM EST Accepted by the SEC: Fri Aug 11 2017 Period: Friday, June 30, 2017 Industry: Surgical And Medical Instruments And Apparatus