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How Antares Pharma Beat Expectations in Q4

By Keith Speights - Mar 3, 2020 at 3:00PM

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Products from the pharmaceutical technology company continued to pick up momentum in the fourth quarter.

Antares Pharma (ATRS) finished 2019 on a positive note, with the stock jumping nearly 73% last year. But it's been pretty much all downhill for shares in 2020 so far.

The pharmaceutical technology company's latest quarterly update isn't likely to change things one way or the other. Antares announced its 2019 fourth-quarter and full-year results before the market opened on Tuesday. Here are the highlights from the company's Q4 update.

Pharmacist filling capsules

Image source: Getty Images.

By the numbers

Antares reported that its revenue in Q4 jumped 101% year over year to $37.8 million. Analysts estimated that the company's revenue for the fourth quarter would come in at $32.28 million.

The company reported net income of $4.7 million, or $0.03 per share, based on generally accepted accounting principles (GAAP). This compared to net income of $6.1 million, or $0.04 per share, posted in the same period in 2018. The average analyst estimate was for Antares to report neither an earnings nor a loss in Q4, and only break even.

Antares ended the fourth quarter with cash, cash equivalents, and short-term investments of $45.7 million. This was up from the $27.9 million on hand as of Dec. 31, 2018.

Behind the numbers

The company generates its revenue in three ways: product sales, development activities, and royalties. Antares' product sales in Q4 of $28.5 million set an all-time high, and more than doubled the $14.2 million in the prior-year period. The company's testosterone injection Xyosted and chemotherapy Otrexup both delivered strong sales growth. Antares' partnered product sales to Teva Pharmaceutical Industries, AMAG Pharmaceuticals, and Ferring Pharmaceuticals also increased year over year.

Antares reported licensing and development revenue of $3.2 million in Q4, up from $1.1 million in the prior-year period. The company stated that most of this revenue came from its Pfizer rescue pen and Teva pen-development programs.

In addition, Antares recorded royalty revenue of $6.2 million in the fourth quarter, well above the $3.5 million reported in the prior-year period. The company attributed the increase in royalty revenue to Teva's sales of its generic epinephrine auto-injector, and from AMAG's sales of the Makena subcutaneous auto-injector.

Antares' operating expenses rose 22% year over year to $18.2 million. This increase stemmed mainly from added costs related to the company's launch of Xyosted.

Looking ahead

Antares projects full-year 2020 revenue of between $135 million and $155 million, unchanged from its previous guidance. This guidance includes several potential scenarios for royalty revenue from AMAG's Makena auto-injector.

CEO Robert Apple thinks that Antares' "strong financial position and established commercial operations provide a foundation to help fuel continued growth of Xyosted and progress of our pipeline." But just as many pharmaceutical stocks have been pulled down with the broader market downturn over the last week, Antares could be dragged down even more if the overall market continues its fall.

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