Emmaus Life Sciences Inc (OTCQX:EMMA) announced its financial results for the three and six months ended June 30, 2022, which received a boost from the May marketing authorization of its sickle cell treatment Endari in the United Arab Emirates (UAE).
The company reported net revenue of $4.3 million for the second quarter, up nearly 33% from the first quarter of 2022, driven by sales of Endari in the United Arab Emirates and sales of Endari in early access in Saudi Arabia.
“We are delighted to have achieved significant net revenue increases for two consecutive quarters after our sales were negatively impacted by travel issues and COVID-19 related lockdowns for much of 2021, and we look forward to looking forward to a continued increase in sales in the Middle East and Africa region, where we anticipate a decision on our marketing authorization application for Endari in the Kingdom of Saudi Arabia before the end of the year and possibly as of the end of the third quarter,” Yutaka Niihara, MD, MPH, president and CEO of Emmaüs said in a statement.
The CEO added that Emmaus is in discussion “to possibly restructure or refinance our outstanding debt and other current liabilities in connection with our efforts to improve sales”.
READ: Emmaus Life Sciences says it successfully expanded market access for Endari sickle cell treatment in Q1
Net revenues were $7.5 million in the first half of 2022, compared to $11.8 million in the same period last year. The decline is primarily attributable to lower wholesale orders in 2022 compared to the same period last year due to overstocking by U.S. distributors in 2021.
Net loss was $8.9 million in the second quarter, compared to net profit of $2.5 million in the same period a year earlier.
The company had cash and cash equivalents of $1.0 million as of June 30, 2022, compared to $2.3 million as of December 31, 2021.
Emmaus said that based on its cash flow, anticipated future revenues, current liabilities and expected operating expenses, management believes that the company’s working capital is insufficient to meet its needs for the next 12 months without restructuring or refinancing its debt and other current liabilities and obtaining additional loans. from related parties or debt or equity financing from third parties or to reduce certain operations or activities.
Contact the author at [email protected]