Antares Pharma Could Report Solid Revenue Growth in Fiscal 2018



Performance in H1 2018

In H1 2018, Antares Pharma (ATRS) reported revenues of $26.86 million, which was a year-over-year (or YoY) rise of 6%. The revenue growth was mainly driven by a 27% YoY rise in product sales, which reached $22.04 million in H1 2018. However, licensing, development, and royalty revenues fell YoY by 40% to reach $4.82 million in H1 2018.

Wall Street analysts expect Antares Pharma to report revenues of $59.56 million in fiscal 2018, which is a YoY rise of 9.25%. The company is expected to report revenues of $112.27 million in fiscal 2019, which is a YoY increase of 88.50%.

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Growth driver in H1 2018

Antares Pharma reported product sales of $11.09 million in Q2 2018, which was a solid YoY rise of 51%. In its Q2 2018 conference call, the company has attributed a major portion of this growth to increased sales of Makena auto-injectors to partner AMAG Pharmaceuticals (AMAG). According to Antares Pharma’s investor presentation, Antares Pharma receives a cost plus product transfer price for its QuickShot device, milestone payments, and royalties on net sales of Makena from Amag Pharmaceuticals.

Makena was first approved by the FDA in 2011 as an intramuscular injection for reducing the risk of preterm birth in at-risk pregnant women. On February 14, 2018, Amag Pharmaceuticals announced in a press release that it had received FDA approval for the Makena auto-injector, which is a drug-device combination product used to administer the drug subcutaneously to at-risk women for preventing pre-term birth. Amag Pharmaceuticals launched the Makena auto-injector in the US market in March 2018, which added $1.0 million worth of royalties to Antares Pharma’s revenues in Q2 2018.

Antares Pharma reported licensing, development, and royalty revenues of $3.07 million in Q2 2018, which was a decline of 49%. In its Q2 2018 conference call, the company attributed the drop in development revenues to the reduction of development activities associated with the Makena auto-injector.

In the next article, we’ll discuss the net profit margins and EPS performance of Antares Pharma in greater detail.


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