Opiant Pharmaceuticals, Inc. Reports Fiscal Fourth Quarter and Full Year 2017 Financial Results and Provides Corporate Update

SANTA MONICA, Calif, Oct. 13, 2017 (GLOBE NEWSWIRE) — Opiant Pharmaceuticals, Inc. (“Opiant”) (NASDAQ:OPNT), a specialty pharmaceutical company developing pharmacological treatments for addictions, today reported financial results for the fiscal fourth quarter and year ended July 31, 2017.

“I recently testified before the President’s Commission on Combating Drug Addiction and the Opioid Crisis, where industry experts and advocates came together to discuss strategies to combat and treat drug abuse, addiction and the opioid epidemic. This gathering of experts further strengthened our resolve to continue the advancement of our pipeline of addiction therapies,” said Roger Crystal, M.D., Chief Executive Officer of Opiant. “Fiscal 2017 was a transformational year for Opiant, marked by a significant increase in sales of NARCAN® Nasal Spray. We expect fiscal 2018 will be another exciting year, and we believe we are well positioned to execute on our mission to develop novel therapeutics that transform the lives of patients with addictions.”

 Fourth Quarter 2017 and Recent Highlights

  • Received an additional $3.75 million in funding from SWK Funding LLC (“SWK”), which was triggered by surpassing $25.0 million of net sales of NARCAN® Nasal Spray (“NARCAN”) for the first half of calendar 2017.
  • Announced that shares of our common stock were approved for listing on the Nasdaq Capital Market (“Nasdaq”).
  • Strengthened the leadership team through the appointment of David O’Toole as Chief Financial Officer.
  • Announced a collaboration with Titan Pharmaceuticals to explore development of a novel approach to the prevention of opioid relapse and overdose in individuals with opioid use disorder.
  • Generated encouraging Phase I data for OPNT002, in development for the treatment of Alcohol Use Disorder (AUD).
  • Licensed Aegis Therapeutics’ Intravail® drug delivery technology, which can improve the absorption of drugs delivered nasally. 
  • Had three additional patents issued for NARCAN® Nasal Spray in the U.S. Food and Drug Administration (FDA) publication, Approved Drug Products with Therapeutic Equivalence Evaluations, commonly known as the Orange Book. There are now six Orange Book-listed patents covering NARCAN®.

Expected Clinical Goals               

  • Further advance OPNT002 for AUD in the second half of calendar 2017.
  • Complete enrollment of patients in the OPNT001 Phase II Study for Bulimia Nervosa by end of calendar Q2 2018.
  • Further advance the pre-clinical development of Opiant’s heroin vaccine candidate, which was licensed in October 2016 from the Walter Reed Army Institute of Research and the National Institute on Drug Abuse (NIDA).

Financial Results

Quarter ended July 31, 2017 compared to quarter ended July 31, 2016

For the quarter ended July 31, 2017, Opiant generated revenue of approximately $3.75 million, compared to approximately $0.3 million in the corresponding period in 2016. The increase was primarily due to the $3.75 million milestone payment that was earned under the royalty monetization agreement with SWK.

General and administrative expenses were approximately $2.0 million in the quarter ended July 31, 2017, compared to approximately $1.2 million in the corresponding period in 2016. The increase was primarily due to compensation expense from increased headcount, consulting expense and legal fees.

Research and development expenses were approximately $1.3 million for the quarter ended July 31, 2017, compared to approximately $0.2 million for the same period in 2016. The increase was primarily due to compensation expense associated with the hiring of our Chief Scientific Officer and additional clinical trial personnel in our UK office.

Selling expenses were approximately $0.3 million compared to approximately $16 thousand for the same period in 2016.

For the quarter ended July 31, 2017, Opiant reported a net loss of approximately $0.3 million, or a net loss of $0.17 per basic share and fully-diluted share, compared to a net loss of approximately $1.1 million, or a net loss of $0.57 per basic share and fully-diluted share, for the same period in 2016.

Year ended July 31, 2017 compared to year ended July 31, 2016

For the year ended July 31, 2017, Opiant generated revenue of approximately $18.4 million, compared to approximately $9.9 million in the corresponding period in 2016. The increase was primarily due to the $3.75 million milestone payment that was earned in July 2017 and the $13.7 million received in December of 2016 at closing under the royalty monetization agreement with SWK.

General and administrative expenses were approximately $6.5 million for the year ended July 31, 2017, compared to approximately $14.5 million for the same period in 2016.  The decrease was primarily due to the reduction in stock based compensation expense.

Research and development expenses were approximately $3.2 million for the year ended July 31, 2017 compared to approximately $2.8 million for the same period in 2016. The increase was primarily due to compensation expense related to the hiring of our Chief Scientific Officer and additional clinical trial personnel in our UK office.

Selling expenses were approximately $1.7 million for the year ended July 31, 2017, compared to approximately $0.3 million for the corresponding period in 2016.  The increase was primarily due to selling expenses associated with the royalty monetization agreement with SWK.

For the year ended July 31, 2017, Opiant reported a net profit of approximately $6.6 million, or $3.27 per basic share and $2.94 per fully-diluted share, compared to a net loss of approximately $7.8 million, or $4.09 per basic and fully-diluted share, for the same period in 2016.

Opiant ended the fiscal year 2017 with cash and cash equivalents of approximately $6.9 million. This cash balance does not include the $3.75 million that was received in August 2017.

About Opiant Pharmaceuticals, Inc.

Opiant Pharmaceuticals, Inc. is a specialty pharmaceutical company developing pharmacological treatments for addictions. NIDA, a division of the NIH, describes these disorders as chronic relapsing brain diseases which burden society at both the individual and community levels. With its innovative opioid antagonist nasal delivery technology, Opiant is positioned to become a leader in these treatment markets. Its first product, NARCAN® Nasal Spray, is approved for marketing in the U.S. and Canada by the company’s partner, Adapt Pharma Operations Limited. For more information please visit: www.opiant.com.

Forward-Looking Statements

This press release contains forward-looking statements. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed, implied or inferred by these forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “would,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” or “continue” or the negative of such terms and other comparable terminology. These statements are only predictions based on our current expectations and projections about future events. You should not place undue reliance on these statements. Actual events or results may differ materially. In evaluating these statements, you should specifically consider various factors. These and other factors may cause our actual results to differ materially from any forward-looking statement. We undertake no obligation to update any of the forward-looking statements after the date of this press release to conform those statements to reflect the occurrence of unanticipated events, except as required by applicable law.

[Financial tables to follow]

Opiant Pharmaceuticals, Inc. 
Condensed Consolidated Balance Sheets
(in thousands, except shares and per share amounts)
(unaudited)
  As of July 31,     As of July 31,  
    2017       2016    
Assets        
  Current Assets      
  Cash & Cash Equivalents $   6,873     $   1,481    
  Accounts Receivable     3,750         313    
  Prepaid expenses and other current assets     165         62    
  Total Current Assets     10,788         1,856    
  Long-term Assets        
  Computer equipment, net     3         7    
  Patents and patent applications, net     17         19    
  Total Assets $   10,808     $   1,882    
           
Liabilities and stockholders’ equity (deficit)      
  Current Liabilities      
  Accounts Payable $   2,212     $   141    
  Accrued Compensation and other current liabilities     1,701         3,681    
  Note Payable    –          165    
  Deferred revenue     254         250    
  Total Current Liabilities     4,167         4,237    
  Long-Term Liabilities        
    Deferred revenue     2,307         2,350    
  Total Long-Term Liabilities     2,307         2,350    
    Total Liabilities     6,474         6,587    
   Stockholders’ equity (deficit)        
  Common stock, $0.001 par value, 200,000,000 shares authorized, 2,026,608 and 1,992,433 shares issued and outstanding at July 31, 2017 and July 31, 2016, respectively     2         2    
   Additional paid-in-capital     58,937         56,478    
   Accumulated deficit     (54,605 )       (61,185 )  
  Total stockholders’ equity (deficit)     4,334         (4,705 )  
  Total liabilities and stockholders’ equity (deficit) $   10,808     $   1,882    
     

Opiant Pharmaceuticals Inc.
Condensed Consolidated Statements of Operations
(in thousands, except shares and per share amounts)
(unaudited)
                   
       Three months ended     Year Ended 
      July 31, 
   July 31, 
        2017       2016       2017     2016  
                   
Revenues              
  Royalty & licensing revenue $   3,750     $   313     $   18,406   $   5,098  
  Treatment investment income     22        –          40     4,800  
    Total Revenue     3,772       313       18,446     9,898  
Operating Expenses              
  General and Administrative     1,962         1,189         6,530       14,509  
  Research and development     1,282         158         3,172       2,809  
  Sales and Marketing     328         16         1,651       318  
                   
    Total expenses     3,572         1,363         11,353       17,636  
                   
    Operating income (loss)     200         (1,050 )       7,093       (7,738 )
                   
Interest and other income (expense)              
  Interest income (expense), net     11         (1 )       20       (12 )
  Income (loss) on foreign exchange     1         (39 )       18       (64 )
    Total other income (expense     12         (40 )       38       (76 )
Income (loss) before provision for income taxes $   212     $   (1,090 )   $   7,131   $   (7,814 )
Provision for income taxes $   550           550      –   
                   
Net income (loss) $   (338 )   $   (1,090 )     6,581     (7,814 )
                   
Net income (loss) per common share              
  Basic net income (loss) per common share $   (0.17 )   $   (0.57 )   $   3.27   $   (4.09 )
  Diluted net income (loss) per common share $   (0.17 )   $   (0.57 )   $   2.94   $   (4.09 )
                   
Weighted-average common shares outstanding:                 
  Basic     2,026,608         1,910,489         2,014,540       1,910,489  
  Diluted     2,026,608         1,910,489         2,235,851       1,910,489  
                   

CONTACT INFORMATION:

Corporate Contact:
Investor.relations@opiant.com

Media Contact:
Casey Myburgh                                                          
Ketchum Public Relations                                         
Casey.Myburgh@Ketchum.com                               
202-835-8876

Investor Contact:
Sam Martin
Argot Partners
sam@argotpartners.com
212-600-1902

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