NASDAQ$VERU

Veru Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported second quarter financial results and provided a business update.

Veru Inc. reported a decrease in net revenues to $6.6 million from $13.0 million, a decrease in gross profit to $4.1 million from $11.2 million, and a net loss of $38.8 million, or $0.48 per share, compared to a net loss of $14.2 million, or $0.18 per share for the second quarter of fiscal year 2022. The company sold ENTADFI® for $20 million, plus up to an additional potential $80 million from sales milestones and entered into a common stock purchase agreement with Lincoln Park Capital for up to $100 million.

  • Reached agreement with FDA on confirmatory Phase 3 clinical trial design for sabizabulin treatment of hospitalized COVID-19 adult patients at high risk for ARDS, including two planned interim efficacy analyses.
  • ENTADFI® product sold for $20 million, plus up to an additional potential $80 million from sales milestones.
  • Common stock purchase agreement with Lincoln Park Capital for up to $100 million provides financial flexibility.
  • Reported positive preclinical data for sabizabulin for influenza induced ARDS and for poxvirus.

Headline financials

Total Revenue

$6.59M

Previous: $13M-49.4%
EPS (adj)

-$0.43

Previous: -$0.18-138.9%
Capital Expenditures

-$427K

Previous: -$487K+12.4%
Free Cash Flow

-$39.2M

Previous: -$14.7M-167.4%
Net Income

-$38.8M

Previous: -$14.2M-173.6%
Operating Income

-$39.4M

Previous: -$11.8M-235.1%
Gross Profit

$4.09M

Previous: $11.2M-63.4%
Cash & Equivalents

$23.5M

Previous: $112M-79.0%
Total Assets

$70.3M

Previous: $173M-59.3%
Stock-Based Comp

$3.84M

Previous: $2.12M+80.6%

Revenue & EPS history

Veru · Revenue · Quarterly

$6.59M

Q2 2023-49.4%vs Q2 2022
Beat estimate in 4 of 11 quarters(36%)
ActualEstimate

Forward guidance

The company is focused on advancing its clinical development programs, including enobosarm for metastatic breast cancer and sabizabulin for SARS-CoV-2 viral ARDS, with potential Phase 3 clinical data results expected in 2024. They are also expanding enobosarm into bone-only metastatic breast cancer and sabizabulin into influenza-induced ARDS.

Tailwinds

  • FDA clarity received to continue advancing ENABLAR-2 Phase 2b/3 clinical trial for metastatic breast cancer.
  • Agreement reached to pursue confirmatory Phase 3 clinical trial for hospitalized COVID-19 adult patients at high risk for ARDS.
  • Cash burn rate reduced.
  • Available capital increased through the completed ENTADFI sale and the Lincoln Park Capital transaction.
  • Seeking partnerships for clinical drug candidates.

Headwinds

  • FDA declined to grant Emergency Use Authorization (EUA) for sabizabulin for hospitalized COVID-19 patients at high risk for ARDS in February 2023.
  • Net revenues decreased to $6.6 million from $13.0 million.
  • Gross profit decreased to $4.1 million from $11.2 million.
  • Operating loss was $39.4 million versus $11.8 million.
  • Net loss was $38.8 million, or $0.48 per share, compared to $14.2 million, or $0.18 per share.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+1.5%

Avg return

Earnings day

+8.3%

Avg return

5 days after

+9.6%

Avg return

30 days after

45%

30 / 66 earnings

Positive

+83.7%

Q4 2020

Best reaction

-23.5%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+1.8%-6.7%+33.8%
Q1 2026-0.4%-0.9%+3.5%
Q4 2025-8.4%-6.1%+10.2%
Q3 2025-12.0%+0.0%-0.8%
Q2 2025+4.1%+4.0%+24.0%
Q1 2025-4.5%+0.0%-12.7%
Q4 2024-1.3%-9.7%+2.8%
Q3 2024+7.1%+6.5%+10.4%
Q4 2023+3.5%+11.8%-4.7%
Q2 2024-16.0%-18.4%-43.6%
Q1 2024-13.7%-13.6%+47.7%
Q3 2023+5.6%+3.7%-4.6%
Q2 2023-23.5%-27.5%-12.1%
Q1 2023-19.1%-21.8%-57.5%
Q4 2022+2.9%-0.5%-1.3%
Q3 2022+62.1%+89.0%+32.3%
Q2 2022+59.3%+91.2%+60.8%
Q1 2022+9.4%+7.4%-8.8%
Q4 2021-12.3%-8.1%-14.8%
Q3 2021+8.8%-2.0%+31.3%
Q2 2021-3.2%+3.7%+18.7%
Q1 2021-2.3%+7.8%-22.3%
Q4 2020+83.7%+198.5%+193.8%
Q3 2020-11.6%-10.9%-9.9%
Q2 2020+13.9%+10.5%-5.4%
Q1 2020+0.9%-0.9%-29.8%
Q4 2019-1.6%+17.1%+64.5%
Q3 2019-14.0%-11.0%-16.2%
Q2 2019-4.8%-1.8%+20.8%
Q1 2019-8.1%-10.7%+0.0%
Q4 2018-4.9%+0.7%-1.4%
Q3 2018+1.0%+1.0%-13.6%
Q2 2018-1.2%+6.6%+18.7%
Q1 2018+0.8%+2.3%+50.4%
Q4 2017+28.9%+29.8%+10.5%
Q3 2017-11.3%-4.0%+2.0%
Q2 2017-1.0%-2.9%+17.6%
Q1 2017+1.9%+3.8%-1.9%
Q4 2016-6.2%-8.8%-10.6%
Q3 2016-2.3%+1.6%+2.3%
Q2 2016-12.3%
Q1 2016+10.2%
Q4 2015+0.6%
Q3 2015+9.9%
Q2 2015-8.1%
Q1 2015+2.9%
Q4 2014-8.5%
Q3 2014-5.8%
Q2 2014-3.7%
Q1 2014-4.1%
Q4 2013+3.4%
Q3 2013-3.3%
Q2 2013+5.8%
Q1 2013-4.2%
Q4 2012-0.7%
Q3 2012+4.7%
Q2 2012-9.2%
Q1 2011+1.5%
Q1 2012+4.7%
Q4 2009+5.5%
Q4 2011+5.5%
Q2 2011+5.5%
Q4 2010-5.4%
Q3 2010-5.4%
Q3 2011-5.4%
Q2 2010+0.9%

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