Stock within Traders Radar: Valeritas Holdings, Inc. (NASDAQ: VLRX)

On 15 Jan 2020, Valeritas Holdings, Inc. (NASDAQ: VLRX) spotted trading -94.09% off 52-week high price. On the other end, the stock has been noted 22.38% away from the low price over the last 52-weeks. The stock changed 1.98% to recent value of $0.67. The stock transacted 420771 shares during most recent day however it has an average volume of 250.31K shares. The company has 8.48M of outstanding shares and 7.36M shares were floated in the market.

Valeritas Holdings, Inc. (VLRX) recently reported financial results for the third quarter ended September 30, 2019.

Third Quarter 2019 Financial Highlights

Total revenue for the third quarter of 2019 was $8.5M, a 22% increase as contrast to the third quarter of 2018, and a 32% increase over the first quarter of this year.  This represented a 30% year-over-year revenue growth for sales in the U.S., up from $6.5M for the third quarter of 2018.

The increase in the Company’s revenue was driven by prescription growth in the Company’s targeted territories as U.S. total and new prescriptions in targeted accounts grew 41% and 48% year-over-year, respectively.  The existing territories grew targeted account volume by 34% year-over-year while the 2019 expansion territories during their first full quarter of selling, grew targeted volume by 30% from the second quarter of this year.  Overall, total prescriptions for the third quarter grew over 25%, as prescriptions in our non-targeted accounts declined 4% year-over-year.

Gross profit in the third quarter of 2019 was $4.2M, a raise of 32% versus $3.2M in the same period in 2018. Gross margin increased by over 370 basis points to 49.6% contrast to the third quarter of 2018 due primarily to the increase in unit sales of V-Go, as well as a raise in the net selling price.

Operating expenses for the third quarter of 2019 were $16.3M, consistent with the previous quarter and a raise of 19% from $13.8M in the third quarter of 2018 largely Because of a raise in SG&A expenses primarily related to the planned 50% increase in the U.S. field sales force, which was completed by the end of the first quarter of 2019, as well as a 60% increase in field commercial spend supporting our expanded sales team.

Operating loss in the third quarter of 2019 was $12.1M, as contrast to $10.6M in the third quarter of 2018, primarily Because of a raise in SG&A expenses as before noted. Net loss in the third quarter of 2019 was $13.2M, contrast to $11.5M in the third quarter of 2018, which was primarily Because of the increase in SG&A expense as before noted.

Total cash and cash equivalents were $23.2M as of September 30, 2019.  During the third quarter, the Company exchanged $25M of its long-term debt for a newly-created class of Series B Preferred stock, thereby reducing its cash interest by about $8.0M over the next two years.  In addition, the Company raised an aggregate of $6.5M through the sale of its ordinary stock, net of fees, through its ATM program with B. Riley FBR, and its purchase contract with Aspire Capital.


Based on its third quarter results and prescriptions through October, the Company expects to record yearly revenue of between $31.5M and $31.8M, representing yearly growth of roughly 20%. The Company anticipates gross margin to continue to trend higher for the remainder of 2019, and expects to exit the fourth quarter of 2019 with gross margin between 52% and 54%.

The price moved ahead of -19.38% from the mean of 20 days, -46.88% from mean of 50 days SMA and performed -75.34% from mean of 200 days price. Company’s performance for the week was 5.67%, -61.09% for month and YTD performance remained 17.08%.


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