MIAMI, Aug. 08, 2017 (GLOBE NEWSWIRE) -- Veru Inc. (Nasdaq:VERU) (formerly, Nasdaq:FHCO) ("Veru" or the "company"), formerly known as Veru Healthcare/The Female Health Company, a biopharmaceutical company focused on urology and oncology, today announces financial results from its fiscal third quarter 2017, which ended June 30, 2017. Management will host a teleconference and live webcast to review these results and corporate performance today at 8:00AM ET.
Summary of Accomplishments During FY Q3 and to Date
"Veru has achieved key development milestones for both the company and our products. Our approach toward developing drug products via the 505(b)(2) development pathway means more expedited market access. We are enthusiastic about the progress for our drugs for BPH, PE and hot flashes associated with hormone therapy in men with advanced prostate cancer," said Mitchell Steiner, MD, president and CEO of Veru. "Since the end of the third quarter, we have also made important corporate strides by launching FC2 US prescription business and by ensuring that we have flexibility to finance future opportunities, improving our ability to attract and retain top talent and clarifying our corporate identity with the consolidation under the Veru Inc. name and new ticker symbol. We are also encouraged by the unit sales of FC2 in the global public sector, which show a positive upward trend, and are confident in our ability to compete for historically large tenders in South Africa and Brazil expected later this year."
For the three months ended June 30, 2017, unit sales totaled 8.5 million, which is 21 percent lower than the 10.7 million from the same prior-year quarter. Net revenues totaled $4.3 million, a decrease of 22 percent from the prior-year quarter of $5.6 million. Gross profit decreased 29 percent to $2.3 million for a margin of 53 percent compared with $3.2 million for a margin of 58 percent in the prior-year quarter. Operating expenses increased by 49 percent from $2.4 million for the prior-year quarter to $3.6 million. Net loss for this fiscal quarter was approximately $789,000, or 3 cents per diluted common share, compared to a gain of approximately $570,000, or 2 cents per diluted common share, for the three months ended June 30, 2016.
During this fiscal quarter, Veru received several payments on aged receivables due from Brazil quarter totaling $2.2 million, bringing total payments from Brazil to $5.0 million for the nine months ended June 30, 2017. The total unpaid balance on the Brazil receivables was $10.9 million as of June 30, 2017. An additional $2.0 million was received subsequent to June 30, 2017, leaving a total of $8.9 million remaining due from Brazil, $1.1 million of which the Company expects to collect this fiscal year.
For the nine months ended June 30, 2017, unit sales totaled 19.4 million, which is down 45 percent from prior year of 35.3 million units. Excluding Brazil sales of 11.5 million units, which are included in the prior year total, unit sales were down 18 percent. Net revenues for the quarter totaled $10 million, a decrease of 46 percent from the prior-year total of $18.6 million. Gross profit decreased 54 percent to $5.2 million for a margin of 52 percent compared with $11.5 million for a margin of 62 percent in the comparable prior-year period. Operating expenses increased 34 percent from $8.2 million for the prior-year to $10.9 million. The increase in operating expenses was primarily due to an increase in research and development expenses for Veru's clinical development programs, which were not present in the prior year, and additional headcount associated with the FC2 prescription launch. Net loss for the nine months ended June 30, 2017 was $3.9 million, or 13 cents per diluted common share, compared to net income of $2.1 million, or 7 cents per diluted common share, in the nine months ended June 30, 2016.
Net working capital, which continues to benefit from collections on the Brazil receivables, was $7.2 million as of June 30, 2017 compared to $8.3 million as of the March 31, 2017. During the nine months ended June 30, 2017, the Company produced approximately $405,000 of cash from operating activities, compared with using $900,000 in the nine-month period ended 2016. As of June 30, 2017, we had $2.7 million of cash, short term accounts receivable of $5.8 million, and long-term accounts receivable of $7.8 million.
In addition, investors may access a replay of the conference call at approximately noon ET dialing 1-877-344-7529 for US callers (international callers dial 1-412-317-0088) and entering the replay access code 10110602. This replay will be available for one week, after which, the recording will be available via the company's website at https://veruhealthcare.com/investors.
About Veru Inc.
The company's division, The Female Health Company, manages the Global Public Health Division, which is focused on the global public health sector FC2 business. This division markets the company's Female Condom (FC2) to entities, including ministries of health, government health agencies, U.N. agencies, nonprofit organizations and commercial partners, that work to support and improve the lives, health and well-being of women around the world.
More information about Veru and its products can be found at www.veruhealthcare.com, www.PREBOOST.com and www.fc2femalecondom.com. For corporate and investor-related information about the Company, please visit https://veruhealthcare.com/investors.
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Contact:Kevin GilbertVeru Healthcare312-366-2633KGilbert@veruhealthcare.comJules AbrahamJQA Partners, Inc.firstname.lastname@example.org
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