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How’s Athenex’s Financial Performance?

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Aug. 18 2020, Updated 10:18 a.m. ET

Top line

In fiscal 2017, Athenex (ATNX) generated total revenues of $38 million—compared to $20.5 million in fiscal 2016. The 85% increase was primarily due to the launch of 11 specialty products through its commercial platform since March 2011. Athenex’s total revenues include product sales, licensing fees, and grant revenue.

Product sales are the biggest component of Athenex’s total revenues. Product sales were $36.1 million in fiscal 2017—compared to $19.3 million in fiscal 2016. The company’s licensing fees increased from $392,000 in fiscal 2016 to $1.1 million in fiscal 2017.

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Costs and expenses

Athenex’s cost of sales increased from $19.7 million in fiscal 2016 to $25.1 million in fiscal 2017. The 7% increase was related to higher product sales with new launches in fiscal 2017.

Athenex’s research and development expenses were $76.7 million in fiscal 2017—compared to $60.6 million in fiscal 2016. The increase in research and development expenses was due to the advancement of Athenex’s clinical pipeline and additional drug licensing fees. Most of the increase came from the costs of clinical studies related to Oraxol, Kx-01 ointment, and Oratecan.

The company incurred selling, general, and administrative expenses of $46.1 million in fiscal 2017—compared to $25.9 million in fiscal 2016. The 78% increase was primarily due to increased employee compensation and marketing costs.

Athenex’s total operating expenses were $148 million in fiscal 2017—compared to $106.2 million in fiscal 2016. As a result, Athenex’s operating loss increased from $85.7 million in fiscal 2016 to $109.9 million in fiscal 2017.

Next, we’ll discuss Athenex’s cash flows.

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