BRIDGEWATER, N.J., May 12, 2017 (GLOBE NEWSWIRE) -- Valeritas Holdings, Inc. (Nasdaq:VLRX) today announced financial results for the first quarter ended March 31, 2017.
First Quarter 2017 and Recent Highlights:
- Revenues of $4.6 million and gross profit of $1.7 million.
- Gross profit as a percentage of revenues increased to 37.6% during the first quarter of 2017 from 34.2% during the same period in 2016.
- Raised $48.8 million of net proceeds in a public offering completed in March 2017 and up-listed to the Nasdaq Capital Market.
- Converted $27.5 million in debt to preferred stock and extended the time periods to begin cash interest payments and maturity by one year.
- Published additional data on the clinical value of V-Go® Wearable Insulin Delivery device and announced presentations at upcoming medical conferences.
“With our integrated multi-channel commercial plan aligned with our high touch and capital efficient sales strategy now in place, we are poised to generate sustainable long-term growth,” said John Timberlake, President and Chief Executive Officer of Valeritas. “In territories where we have had sales rep continuity, we have seen positive results and our newer sales reps are quickly getting up to speed. We have also increased our financial flexibility by raising $48.8 million of net proceeds in our public offering completed in March 2017 and, in collaboration with our creditors, reduced our debt-to-equity ratio by converting $27.5 million of our debt into shares of our Series A Preferred Stock, and extended the time period to our first cash interest payment until June 2019 and maturity to March 2022. We continue to expect double digit revenue growth in 2017 with most of this growth occurring in the second half of the year.”
First Quarter Year 2017 Financial Results
Total revenue for the fiscal first quarter of 2017 was $4.6 million, a 7.9% decrease from the same period in 2016. The decrease was primarily due to deploying 15% fewer sales representatives than in the first quarter of 2016, our continued transition to focus on fewer prioritized high-volume prescribers and a decline in volume from physicians we no longer target. We continue to see sequential growth in our stable territories (territories in which we had the same representative in the same territory since January 2016) and we increased our sales force and began the second quarter with 48 sales representatives.
