On August 6, 2024, Aquestive Therapeutics Inc (AQST, Financial) released its 8-K filing for the second quarter of 2024, showcasing a robust financial performance that surpassed analyst expectations. Aquestive Therapeutics Inc is a specialty pharmaceutical company focused on developing and commercializing differentiated products to address unmet medical needs, particularly in the Central Nervous System (CNS) and severe allergic reactions, including anaphylaxis.
Financial Performance and Key Metrics
For the second quarter of 2024, Aquestive Therapeutics Inc reported total revenues of $20.1 million, a significant 52% increase from $13.2 million in the same period last year. This surge was primarily driven by increases in license and royalty revenue, partially offset by a decrease in manufacture and supply revenue.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $20.1 million | $13.2 million |
| Net Loss | $(2.7) million | $(5.8) million |
| Non-GAAP Adjusted EBITDA | $1.8 million | $(3.3) million |
Despite the increase in revenue, the company reported a net loss of $2.7 million, or $0.03 per share, compared to a net loss of $5.8 million, or $0.10 per share, in the second quarter of 2023. The improvement in net loss was primarily due to higher revenues and lower manufacture and supply expenses, offset by increased selling, general, and administrative expenses, as well as research and development costs.
Pipeline and Product Developments
Aquestive Therapeutics Inc continues to advance its late-stage pipeline, particularly with Anaphylm™ (epinephrine) Sublingual Film, which is on track for a near-term New Drug Application (NDA) submission to the FDA. The company also expanded sales coverage for Libervant™ (diazepam) Buccal Film for patients aged two to five, with national retail distribution anticipated in the fourth quarter of 2024.
“We continue to rapidly transform the Company through advancing our epinephrine prodrug platform,” said Daniel Barber, President and Chief Executive Officer of Aquestive. “We believe Anaphylm has the potential to be a billion-dollar commercial opportunity.”
Financial Achievements and Outlook
Aquestive Therapeutics Inc finished the second quarter with cash and cash equivalents of approximately $90 million, reaffirming its cash runway into 2026. The company updated its full-year 2024 financial guidance, projecting total revenue between $57 million and $60 million, up from the previous guidance of $48 million to $51 million. Non-GAAP adjusted EBITDA loss is now expected to be between $20 million and $23 million, compared to the previous range of $22 million to $26 million.
Income Statement Highlights
The income statement revealed that manufacture and supply revenue decreased to $8.1 million from $11.6 million in the second quarter of 2023, primarily due to the timing of product orders. Research and development expenses increased to $4.2 million from $3.5 million, driven by the advancement of the Anaphylm development program. Selling, general, and administrative expenses rose to $11.4 million from $7.4 million, reflecting increased commercial spending and regulatory fees related to the approval of Libervant and preparations for Anaphylm.
Balance Sheet and Cash Flow
As of June 30, 2024, Aquestive Therapeutics Inc reported total assets of $117.6 million, up from $57.4 million at the end of 2023. The increase in assets was primarily due to higher cash and cash equivalents. Total liabilities stood at $153.1 million, compared to $163.9 million at the end of 2023, while stockholders' deficit improved to $35.5 million from $106.5 million.
In summary, Aquestive Therapeutics Inc's second-quarter performance highlights its strong revenue growth and strategic advancements in its product pipeline. The company's financial achievements and updated guidance underscore its potential for continued growth and innovation in the pharmaceutical industry.
Explore the complete 8-K earnings release (here) from Aquestive Therapeutics Inc for further details.
