Aytu Bioscience (AYTU)’s Healight gets approved for clinical studies & FDA EUA submitted

  • Q4 Net Revenue increased 82% sequentially, and 766% year-over-year to $14.9 million
  • Highest revenue quarter to date is more than 2X entire fiscal 2019 revenue
  • Q4 Consumer Health Net Revenue was $6.9 million, compared to $3.5 in Q3
  • Q4 Rx Net Revenue was $7.9 million, compared to $4.7 in Q3
  • Q4 Net loss of ($3.1) million and Q4 Adjusted EBITDA of ($1.7) million
  • Cash, cash equivalents and restricted cash of $48.3 million on June 30, 2020, after fully extinguishing the $15 million Deerfield balloon payment obligation.

Aytu Bioscience (AYTU) shares skyrocketed 17% in after hours today. According to the recent earnings call the developments of the company is straight forward.

Commenting on the fourth quarter of fiscal 2020, Josh Disbrow, Chief Executive Officer of Aytu BioScience, stated “Revenue increased exponentially in Q4 2020, to $14.9 million, compared to $1.7 million for Q4 2019. It is important to note that this was the first full quarter of revenue from the combined Aytu and Innovus businesses, along with the Cerecor assets. Turning to the bottom line, adjusted EBITDA loss was reduced to just $1.7 million for Q4 2020, compared to a $3.7 million adjusted EBITDA loss for Q4 2019. On the balance sheet, with approximately $48.3 million in cash, cash equivalents and restricted cash after paying $15 million to fully extinguish the Deerfield balloon payment previously due January 2021, we have less than $1 million of debt, and at current spending levels, we believe we have sufficient runway to reach profitability.”

Mr. Disbrow continued, “Taking a closer look at the top line, both of our revenue streams, from the Consumer Health and Rx segments, performed well. On the Consumer Health side, we generated $6.9 million in revenue, an increase compared to Q3. Contributing to those results was organic growth within our core Consumer Health product lines of diabetes care, sexual wellness and bladder health. Additionally, we strengthened our e-commerce business for Consumer Health. Furthermore, our newly launched Consumer Health product, Regoxidine┬«, an over-the-counter foam formulation of minoxidil for hair regrowth, is on track to contribute revenue in excess of seven figures in its first twelve months from launch.”

Mr. Disbrow added, “On the Rx side, revenue was $7.9 million, a significant increase compared to Q3. Contributing to Rx revenue was solid contribution from the pediatric franchise. Additional value was created with Natesto┬« gaining preferred status on Express Scripts’ national formulary and the Natesto spermatogenesis study results published in the Journal of Urology, both of which we expect to drive prescription growth in the coming quarters. Organic Rx growth was fueled by a relatively balanced contribution across our key products and improved sales execution. Despite the impact COVID has had on physician office access, Q4 represented a record revenue quarter for our Rx business and significant growth over the previous quarters. This is a strong statement about our field execution and clinical value of our products, and I’m pleased to see our call levels now picking back up to near normal in the current quarter to further drive prescription growth.”

Mr. Disbrow concluded, “At $14.9 million in record quarterly revenue, with a narrowed Adjusted EBITDA loss, $48.3 million of cash, cash equivalents and restricted cash on the balance sheet, the addition of the Healight opportunity for COVID-19 and future potential non-COVID-19 applications, and our addition to the Russell 2000, we have strong momentum to grow shareholder value in fiscal 2021 and onward.”

Aytu Bioscience (AYTU) Healight & FDA EUA

In the earnings call Josh Disbrow acknowledged that the company is working with Healight and the FDA at a rapid pace. The clinical studies are expected to be announced soon with the cooperation with leading centers in Europe.

Recent developments

  • The company is looking for treatment using alternative methods (nasal)
  • Revenue grew higher than previous quarter
  • Aytu Bioscience will transform operations into a consumer health and medical prescription (RX) company.

Should you invest in Aytu Bioscience (AYTU)?

Shares of Aytu Bioscience (AYTU) appear to be a very good investment option, the Money Midnight Indicator is expecting its price to increase considerably in the next several months. The majority of the metrics point to this investment being highly attractive.

Jay Lorrence
Jay Lorrence

Investor of 12 years and Managing Editor of Money Midnight, a news outlet focused on highly profitable investment ideas and bold underground research.

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