MISSISSAUGA, ON, March 30, 2017 /CNW/ - Crescita Therapeutics Inc. (TSX:CTX) (Crescita or the Company), a commercial dermatology company with a portfolio of non-prescription skincare products and prescription drug products for the treatment and care of skin conditions and diseases and their symptoms, today announced its financial and operational results for the fourth quarter and year ended December 31, 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.
- In March, the Company signed an exclusive license agreement with a U.S.-based, major dermatological contract research company (CRO) (the Licensee) to develop prescription treatments of skin diseases utilizing Crescita's patented MMPE technology. The Licensee will oversee and fund the cost of all development activities until commercialization partner(s) for the products are secured. Crescita is entitled to a share of royalties and other consideration received by the Licensee from such partners based on a formula that includes compensation to Crescita for granting the Licensee the exclusive license to the MMPE technology.
- In January, INTEGA Skin Sciences (INTEGA) launched the ISDIN® Acnisdin and Nutratopic product lines at Brunet pharmacy chains throughout Québec. The trademark is owned by ISDIN S.A. and is being used under license by INTEGA.
- 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. The Company's goal is to leverage its current sales and manufacturing infrastructure to grow the Company.
For further details on the results, please refer to the Management, Discussion and Analysis (MD&A) and Consolidated Financial Statements which are available on the Company's website (www.crescitatherapeutics.com).
Cash and short-term investments were $18.4 million compared to $23.6 million at September 30, 2016 and $0.5 million at December 31, 2015.
Total revenue, consisting of product sales, royalties and services revenue, for the three months ended December 31, 2016 was $2.2 million compared to $60,000 for the three months ended December 31, 2015. The increase in revenue primarily related to product sales of non-prescription skincare products resulting from the INTEGA Acquisition. Total revenue was $3.5 million for the year ended December 31, 2016 compared to $0.2 million for the year ended December 31, 2015.
Total operating expenses for the three months ended December 31, 2016 were $7.1 million compared to $2.5 million for the three months ended December 31, 2015. The increase in operating expenses was primarily due to transactional costs for INTEGA, as well as incremental costs for the integration of INTEGA and costs related to the restructuring of the business. Total operating expenses for the year ended December 31, 2016 were $18.1 million compared to $7.7 million for the year ended December 31, 2015.
Net loss for the three months ended December 31, 2016 was $4.1 million compared to $4.4 million for the three months ended December 31, 2015. In the comparative quarter, net loss included a net loss from discontinued operations of $1.9 million which was attributable to the development of WF10 for the treatment of allergic rhinitis. The improvement in net loss for the current quarter was a result of the increased revenues netted against the corresponding costs to realize those revenues and was offset by the additional one-time non-recurring costs incurred to integrate and restructure the operations. Net loss was $14.9 million for the year ended December 31, 2016 compared to $15.4 million for the year ended December 31, 2015.
The number of common shares outstanding as at December 31, 2016 was 13,935,638.
About Crescita Therapeutics Inc.
Crescita (TSX:CTX) is a publicly traded, Canadian commercial dermatology company with a portfolio of non-prescription skincare products and prescription drug 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 29, 2017 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.