SeeThruEquity Issues Update on Innovus Pharmaceuticals and Maintains its target price of $1.34
San Diego, CA, April 28, 2015 (Newswire.com) – SeeThruEquity, a leading New York City based independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced that it has issued an update on Innovus Pharmaceuticals, Inc. (OTCQB: INNV).
The report is available here: http://www.seethruequity.com/. SeeThruEquity is an approved equity research contributor on Thomson First Call, CapitalIQ, FactSet, and Zack’s. The report will also available on these platforms. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
Innovus Pharmaceuticals, Inc. (OTCBB: INNV) is an emerging commercial stage pharmaceutical company that delivers safe, innovative and effective over-the counter medicine and consumer care products to improve men and women’s health, vitality, and respiratory diseases. The currently has five commercial products: Zestra® (for female arousal), Zestra Glide® (female water-based lubricant), EjectDelay® (for premature ejaculation), Sensum+® (ex- US, for reduced penile sensitivity), and Vesele® (for sexual and cognitive health). The company has also in-licensed Androferti® (for male reproductive health) in the US and Canada, and recently acquired FlutiCare™ nasal spray (for Allergic Rhinitis).
Innovus recently reported full year 2014 results, with highlights as follows:
Revenue increased to $1mn in the company’s first full year of commercial operations, up from $6,641 in 2013
EPS came in at ($0.20) versus ($0.23) in 2013
Signed distribution agreements with approximately $2mn in minimum annual orders in 2015 for its five commercial products from its seven global partners.
“Innovus generated $1mn in revenue during 2014, up substantially from $6,641 in 2013. This was the company’s first full year of commercialization. More important in our view, is the fact that during 2014, Innovus struck commercial distribution agreements with seven commercial partners for its five existing commercial products, totaling over $2mn in minimum annual orders in 2015E. We are maintaining our target price of $1.34,” stated Ajay Tandon, CEO of SeeThruEquity.
Additional highlights of the update note are as follows:
Solid first year of commercialization; poised for growth in 2015
Innovus generated $1mn in revenue during 2014, up substantially from $6,641 in 2013. This was roughly aligned with our thinking, and we see it as a solid first full year of commercialization. In 2015E we forecast sales to grow 265% to reach $3.8mn. During 2014 Innovus generated $375,00 in licensing revenues and $655,113 in product sales, representing 34% and 64% of total sales, respectively. Gross margins on product sales were 55.4%, a figure we have forecast to expand over time as the company scales.
Expanding international distribution drives growth
During 2014, Innovus struck commercial distribution agreements with seven commercial partners for its five existing commercial products, which totaled over $2mn in minimum annual orders in 2015E. The company continues to add strategic partners in 2015 as it pursues its goal of making its commercial products available in 40 countries by the end of the year. Most recently, Innovus struck agreements with Tabuk Pharmaceutical Manufacturing Company, BroadMed SAL, and Oz Biogenics. The BroadMed agreement covers the distribution of Sensum+® in Lebanon and includes up to $11.1mn in upfront sales and milestone payments, plus royalties. The Tabuk deal includes up to $86.5mn in upfront and sales milestone payments, plus royalties based on Tabuk’s sales, and grants Tabuk an exclusive license to market and sell EjectDelay®, Vesele® and Sensum+® in Saudi Arabia, the Gulf Countries, North Africa and the Middle East. The Oz Biogenics agreement grants it an exclusive license to all products for Myanmar and Vietnam with minimum orders of over $0.8mn over the term of the agreement.
Attractive additions to product portfolio
On February 5, 2015, the company also announced it was acquiring FlutiCare™ for Allergic Rhinitis. With Fluticasone propionate nasal spray being the most prescribed nasal steroid in the US since 2007, FlutiCare™ is well positioned to benefit as this large market transitions to OTC. Innovus expects to launch FlutiCare™ in 2016E, assuming the FDA approves the product’s abbreviated new drug application (ANDA) for the OTC version.
Maintain price target of $1.34
We see Innovus as a high-risk / high-reward investment opportunity in the OTC pharmaceuticals space with a differentiated business model focused on men and women’s health, vitality, and respiratory diseases and an expanding international presence. We are maintaining our price target of $1.34 for Innovus at this time. If achieved this would represent 793% upside from the recent market price of $0.15 on April 22, 2015.
Please review important disclosures on our website at www.seethruequity.com.
About Innovus Pharmaceuticals, Inc.
Headquartered in San Diego, Innovus Pharma is an emerging leader in OTC and consumer products for men’s and women’s health, vitality, and respiratory disease. The Company generates revenues from its lead products Zestra® for female arousal and EjectDelay® for premature ejaculation and has a total of five marketed products in this space, including Sensum+® for reduced penile sensitivity, (for sales outside the U.S. only), Zestra Glide® for female arousal, Vesele® for promoting sexual and cognitive health, and two products in the pipeline including, Androferti® (in the US and Canada) to support overall male reproductive health and sperm quality and FlutiCare™, an OTC drug for Allergic Rhinitis (currently ANDA submitted to FDA for approval).
For more information, go to http://www.innovuspharma.com/, http://www.zestra.com/; http://www.ejectdelay.com/; http://www.myvesele.com/; http://www.sensumplus.com/; www.myandroferti.com.
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and unbiased. We do not conduct any investment banking or commission based business. We are approved to contribute our research to Thomson Reuters One (First Call), CapitalIQ, FactSet, Zacks and distribute our research to our database of opt-in investors. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
For more information visit www.seethruequity.com.