MISSISSAUGA, ON, Nov. 14, 2016 /CNW/ - Crescita Therapeutics Inc. (TSX:CTX) (Crescita or the Company), a commercial dermatology company with a portfolio of over-the-counter and prescription products for the treatment and care of skin conditions and diseases and their symptoms, today announced its financial and operational results for the third quarter ended September 30, 2016. The Company commenced operations on a stand-alone basis on March 1, 2016, the effective date of a reorganization of the former Nuvo Research Inc. (Nuvo Research) pursuant to which certain development stage products and assets were "spun out" from Nuvo Research to the Company.
INTEGA Skin Sciences Acquisition
- On September 1, 2016, the Company completed the acquisition of INTEGA Skin Sciences Inc. (INTEGA), a Montreal-based dermatology company which develops, manufactures, sells and markets science-based quality skin care products. The INTEGA skin care brands include, Laboratoire Dr Renaud™, Pro-Derm™, Premiology™ and ISDIN® (the trademark is owned by ISDIN S.A. and is being used under license by INTEGA Skin Sciences Inc.).
- Crescita is evaluating strategies to optimize product sales in Canada, the United States and Mexico of Pliaglis, its commercial stage product that has received approval for marketing by the United States Food and Drug Administration (FDA) and by Health Canada. The Company is transitioning these rights from Galderma S.A. and expects this process to be completed in the fourth quarter.
- The Company is continually assessing in-licensing, merger and acquisition activities, or some combination thereof, related to new product opportunities.
"We are excited about our first acquisition since the spin out of Crescita in March," said Dan Chicoine, Crescita's Executive Chairman and Interim CEO. "Executive management and the board of directors made the decision to pursue a strategy to transform Crescita into a dermatological company focused on skin care products and the acquisition of INTEGA is the first step towards building the Company into a large, profitable and successful North American skin care business."
For further details on the results, please refer to the Management, Discussion and Analysis (MD&A) and Condensed Consolidated Interim Financial Statements which are available on the Company's website (www.crescitatherapeutics.com).
Cash and short-term investments were $23.6 million at September 30, 2016 compared to $30.0 million at June 30, 2016 and $0.5 million at December 31, 2015.
Total revenue, consisting of product sales, royalties and services revenue was $1.1 million and $1.3 million for the three and nine months ended September 30, 2016 compared to $29,000 and $0.2 million for the three and nine months ended September 30, 2015. Product sales of $0.9 million for the three and nine months ended September represent the majority of Crescita's revenue and relate to the sale of non-prescription products from the INTEGA acquisition. The remainder of the revenue is related to royalties from Pliaglis and revenue for services provided to Nuvo as part of the transition services agreement with Nuvo.
Total operating expenses for the three and nine months ended September 30, 2016 were $3.9 million and $11.0 million compared to $2.3 million and $5.1 million for the three and nine months ended September 30, 2015.
In the quarter, the $1.7 million increase in operating expenses related primarily to cost of goods sold from the sale of INTEGA products ($567,000) and higher selling, general and administrative expenses of $1.3 million primarily due to professional and consulting fees, transaction costs in connection with the INTEGA acquisition as well as severance.
Net loss from continuing operations (excluding the Immunology Group which was discontinued) was $1.4 million and $8.7 million for the three and nine months ended September 30, 2016 compared to $2.3 million and $5.0 million for the three and nine months ended September 30, 2015.
The number of common shares outstanding as at September 30, 2016 was 13.9 million.
About Crescita Therapeutics Inc.
Crescita (TSX:CTX) is a publicly traded, Canadian commercial dermatology company with a portfolio of over-the-counter and prescription products for the treatment and care of skin conditions and diseases and their symptoms. Crescita owns multiple proprietary drug delivery platforms that support the development of patented formulations that can facilitate the delivery of active drugs into or through the skin. Crescita's board of directors and management team have demonstrated success in building Crescita's predecessor company, Nuvo Research Inc., including developing multiple drugs that are now approved and commercialized and negotiating multiple licensing transactions. For additional information, please visit www.crescitatherapeutics.com.
Certain statements in this press release constitute forward-looking information and/or forward-looking statements (collectively, forward-looking statements) within the meaning of applicable securities laws. Forward-looking statements include, but are not limited to Crescita's future governance plans and the expected benefits of the transaction to Crescita's shareholders. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "believe", "should" or "plans", or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by such statements. Factors that could cause such differences include, but are not limited to, general business and economic uncertainties and adverse market conditions; uncertainties related to Crescita's ability to realize the anticipated benefits of the acquisition; the expected future attributes and success of Crescita and INTEGA; the successful execution of Crescita's and INTEGA's priorities and strategies; the reliability of Nuvo Research's historical financial information as an indicator of Crescita's historical or future results; as well as other risk factors included in Nuvo Research's Management Information Circular dated December 31, 2015 (the Reorganization Circular) and the most recent Crescita Annual Information Form dated March 23, 2016 under the heading "Risks Factors", and as described from time to time in the reports and disclosure documents filed by Crescita with Canadian securities regulatory agencies and commissions. These and other factors should be considered carefully and readers should not place undue reliance on Crescita's forward-looking statements. As a result of the foregoing and other factors, no assurance can be given as to any such future results, levels of activity or achievements and none of Crescita, INTEGA or any other person assumes responsibility for the accuracy and completeness of these forward-looking statements. Although the forward-looking information contained in this press release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. All forward-looking statements in this press release are qualified by these cautionary statements. The forward-looking statements contained herein are made as of the date of this press release and, except as required by applicable law, Crescita undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE Crescita Therapeutics Inc.