Aytu BioScience (AYTU) Stock: Posts Strong Earnings; Natesto® Prescription Trends Surge Higher

Aytu BioSceince, on Thursday, reported earnings generated during the first fiscal quarter of 2018. The results highlight significant operational growth for several company brands, inclusive of Natesto®, MiOXSYS®, and Fiera®.

AYTU Trends Are Strong

The quarterly results posted increasing revenue contribution from several pipeline products, proving that the company’s revenue mix is diversifying itself well to position the company for long-term sustainable growth. Highlights from the quarter include:

  • a 54% increase in total revenue in comparison to Q1 2017. AYTU reported $1.1 million in total revenue for the quarter, primarily generated through the surging trends for Natesto®, MiOXSYS®, and Fiera®
  • a 411% surge in Natesto® prescription demand compared to Q1 2017, supported by record high total prescription levels of 2,036 units sold
  • an increase in Natesto® factory sales orders that surpassed 7,000 units, also an all-time high for the product. The results are an 85% increase over the prior comparable quarter
  • an increase in Natesto® prescribers across the United States to 991, a 21% increase over the previous quarter
  • the listing of company shares on the NASDAQ Capital Markets, a move that is expected to generate increased opportunity to attract institutional coverage, partnership opportunity, and stronger financing options if and when needed
  • an increase in the number of MiOXSYS® System placements to 96 on a global basis since Q1 of fiscal 2017. AYTU placed 29 of the instruments in six countries through the Company’s distribution partners.
  • began the commercial integration of Fiera®, AYTU’s women’s sexual wellness product line, highlighted by the launch of the Company’s first international distribution agreement in Japan

Strong Diversified Sales Contribute To Surge In Growth

Strengthened by the more than $1 million in total first quarter revenue, AYTU saw stronger contribution from three pipeline products, Natesto®, MiOXSYS®, and Fiera®. The 54% increase in sales combined to produce total gross receipts of $2.2 million over the same period last year and represents an increase of 142%, respectively.

The completion of AYTU’s recent private placement places the company in stable financial shape, with cash and cash equivalents at the quarter end sitting at roughly $7.1 million on September 30, 2017. In addition to the strengthened balance sheet, AYTU reported a sharp reduction in SG&A expense during the quarter to $4.6 million, representing a 20% decrease from the same quarter last year. The decline in expenses combined with the revenue growth cut the quarterly loss by roughly 26%.

AYTU Positioned For Profitability

Although AYTU did not provide revenue guidance, management indicated that the increase in net revenues contributed from the growth in Natesto®, MiOXSYS®, and Fiera® products place the company within sight of cash-flow breakeven or potential profitability during the middle of fiscal 2019.

The company’s shares responded sharply higher in after-hours trading by more than 11% on the report.

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