BRIDGEWATER, N.J., May 11, 2023 (GLOBE NEWSWIRE) — RVL Pharmaceuticals plc (Nasdaq: RVLP), a specialty pharmaceutical company focused on the commercialization of UPNEEQ, 0.1%, for the treatment of acquired blepharoptosis, or droopy or low-lying eyelids, in adults, today announced financial results and business highlights for the three months ended March 31, 2023.
“RVL is off to a great start on the year. Our one-of-a-kind product continues to exhibit year-over-year growth as we leverage our cost base for improved efficiency. Our multi-channel strategy is delivering favorable results. In fact, monthly pharmacy prescriptions reached an all-time high during the first quarter of 2023, despite the absence of personal promotional support. Additionally, momentum in aesthetics continued, with growth in the percentage of reorders and in new account openings during the quarter. We believe we have barely scratched the surface of the potential for this amazing product,” stated Brian Markison, Chief Executive Officer of RVL.
“We believe the July rollout of Elevate, our next-generation e-commerce portal, will be a powerful step that will broaden our reach, improve the customer experience and facilitate enhanced access to UPNEEQ – all while providing us with data and analytics to further inform our marketing initiatives,” continued Markison.
“The social proof behind UPNEEQ continues to build, as evidenced by being selected the winner as ‘Best Eye Drop for Drooping Lids’ in the NewBeauty 13th Annual Beauty Awards. This is our second consecutive win, following our award last year from NewBeauty for the ‘Best Innovation,’” concluded Markison.
First Quarter 2023 Financial Highlights
- UPNEEQ net product sales were $8.8 million, an increase of $2.9 million, or 49%, over the first quarter of 2022.
- Approximately 4,800 cumulative unique medical aesthetics practices had placed orders for UPNEEQ at quarter end, an increase of 12% from the end of 2022.
- Approximately 19,900 cumulative unique pharmacy-paid prescribers at quarter end, an increase of 8% compared to the end of 2022.
- At quarter end, the optometry and ophthalmology customer base accounted for 68% and 32%, respectively, of its total unique eye care prescriber base.
- Net loss was $(11.6) million, compared to a net loss of $(6.8) million in the prior year period. Adjusted EBITDA1 loss was $(8.7) million, compared to an Adjusted EBITDA loss of $(18.9) million in the first quarter of 2022.
- At March 31, 2023, the Company had cash and cash equivalents of $32.6 million and senior secured indebtedness with aggregate principal maturities of $70.7 million.
First Quarter 2023 Financial Results
Net product sales, relating entirely to sales of UPNEEQ, increased by $2.9 million to $8.8 million for the three months ended March 31, 2023, as compared to $5.9 million for the three months ended March 31, 2022, primarily due to a year-over-year increase in sales volume reflecting expanded commercialization into the medical aesthetics market in February 2022 and into telemedicine in the second half of 2022.
Royalty and licensing revenues were $15.5 million in the three months ended March 31, 2022, reflecting milestone revenues recognized under our agreement with Santen. There was no royalty and licensing revenue in the three months ended March 31, 2023.
Total revenues decreased by $12.6 million to $8.8 million in the three months ended March 31, 2023, as compared to $21.4 million in the three months ended March 31, 2022, primarily due to the absence of licensing revenue from Santen during 2023, partially offset by a year-over-year increase in net product sales. For the three months ended March 31, 2023, one customer accounted for 21% of the Company’s total revenues.
Total cost of goods sold increased by $0.2 million to $2.3 million in the three months ended March 31, 2023, as compared to $2.1 million in the three months ended March 31, 2022. The year-over-year increase in cost of goods sold was primarily driven by $0.3 million in higher product costs for UPNEEQ due to higher sales volume.
Gross profit percentage decreased to 74% in the three months ended March 31, 2023, as compared to 90% in the 2022 period, largely due to unique licensing revenue from Santen recognized during the 2022 period. Excluding licensing revenues, gross profit percentage from net product sales was 74% and 64% in the 2023 and 2022 periods, respectively, reflecting lower royalty expense, inclusive of contingent earn out obligations, and improved overhead absorption driven by higher volumes.
Selling, general and administrative expenses decreased by $7.6 million to $16.2 million in the three months ended March 31, 2023, as compared to $23.8 million in the three months ended March 31, 2022. The year-over-year decrease in selling, general and administrative expenses was primarily driven by (i) $5.6 million in lower net compensation and training costs primarily relating to the absence of an eye care salesforce in the 2023 period, (ii) $0.9 million in lower legal, insurance and other professional fees, (iii) $0.5 million in lower share-based compensation, and (iv) $0.4 million in lower marketing expenses for UPNEEQ.
Research and development expenses decreased by $0.3 million to $0.6 million in the three months ended March 31, 2023, as compared to $0.9 million in the three months ended March 31, 2022. The year-over-year decrease in research and development expenses primarily reflects $0.2 million in lower share-based compensation expense.
Total other non-operating activities were a source of income of $1.3 million and $1.5 million in the three months ended March 31, 2023, and 2022, respectively. Non-operating income in each of the 2023 and 2022 periods was primarily attributable to the receipt of an aggregate of $5.0 million in cash from Alora related to contingent milestone payments earned in connection with the sale of our legacy business in 2021. Non-operating income in the 2023 and 2022 periods was partially offset by aggregate losses recognized from the change in fair value of the Company’s debt and warrant liability.
Net loss increased by $(4.8) million to an $(11.6) million loss in the three months ended March 31, 2023, as compared to a $(6.8) million loss in the three months ended March 31, 2022. Adjusted EBITDA loss decreased by $10.2 million to an $(8.7) million loss in the three months ended March 31, 2023, as compared to an $(18.9) million loss in the three months ended March 31, 2022.
Liquidity
At March 31, 2023, the Company had cash and cash equivalents of $32.6 million and senior secured indebtedness with aggregate principal maturities of $70.7 million, which are reflected on its balance sheet at fair value of $56.3 million.
IMPORTANT SAFETY INFORMATION
INDICATION
UPNEEQ® (oxymetazoline hydrochloride ophthalmic solution), 0.1% is indicated for the treatment of acquired blepharoptosis in adults.
WARNINGS AND PRECAUTIONS
- Ptosis may be associated with neurologic or orbital diseases such as stroke and/or cerebral aneurysm, Horner syndrome, myasthenia gravis, external ophthalmoplegia, orbital infection and orbital masses. Consideration should be given to these conditions in the presence of ptosis with decreased levator muscle function and/or other neurologic signs.
- Alpha-adrenergic agonists as a class may impact blood pressure. Advise UPNEEQ patients with cardiovascular disease, orthostatic hypotension, and/or uncontrolled hypertension or hypotension to seek medical care if their condition worsens.
- Use UPNEEQ with caution in patients with cerebral or coronary insufficiency or Sjögren’s syndrome. Advise patients to seek medical care if signs and symptoms of potentiation of vascular insufficiency develop.
- UPNEEQ may increase the risk of angle closure glaucoma in patients with untreated narrow-angle glaucoma. Advise patients to seek immediate medical care if signs and symptoms of acute narrow-angle glaucoma develop.
- Patients should not touch the tip of the single patient-use container to their eye or to any surface, in order to avoid eye injury or contamination of the solution.
ADVERSE REACTIONS
Adverse reactions that occurred in 1-5% of subjects treated with UPNEEQ were punctate keratitis, conjunctival hyperemia, dry eye, blurred vision, instillation site pain, eye irritation and headache.
DRUG INTERACTIONS
- Alpha-adrenergic agonists, as a class, may impact blood pressure. Caution in using drugs such as betablockers, anti-hypertensives, and/or cardiac glycosides is advised. Caution should also be exercised in patients receiving alpha adrenergic receptor antagonists such as in the treatment of cardiovascular disease, or benign prostatic hypertrophy.
- Caution is advised in patients taking monoamine oxidase inhibitors which can affect the metabolism and uptake of circulating amines.
About RVL Pharmaceuticals plc
RVL Pharmaceuticals plc is a specialty pharmaceutical company focused on the commercialization of UPNEEQ® (oxymetazoline hydrochloride ophthalmic solution), 0.1%, for the treatment of acquired blepharoptosis, or low-lying eyelid, in adults. UPNEEQ is the first non-surgical treatment option approved by the FDA for acquired blepharoptosis.
