Alimera Sciences Reports Second Quarter 2024 Results
Rhea-AI Summary
Alimera Sciences reported strong Q2 2024 results with net revenue up 54% to $27 million compared to Q2 2023. Key highlights include:
- U.S. net revenue increased 48% to $17.6 million
- International net revenue grew 65% to $9.4 million
- Global end user demand up 6% to 3,821 units
- Net loss improved to $(3.3) million from $(10.7) million in Q2 2023
- Adjusted EBITDA of $6.7 million vs. $0.9 million in Q2 2023
The company recently announced a definitive merger agreement with ANI Pharmaceuticals, valuing Alimera's equity at approximately $320 million in upfront consideration. The transaction is expected to close later this year.
Positive
- Net revenue increased 54% year-over-year to $27 million
- U.S. net revenue grew 48% to $17.6 million
- International net revenue rose 65% to $9.4 million
- Global end user demand increased 6% to 3,821 units
- Adjusted EBITDA improved to $6.7 million from $0.9 million in Q2 2023
- Merger agreement with ANI Pharmaceuticals values Alimera's equity at approximately $320 million
Negative
- Net loss of $(3.3) million, although improved from $(10.7) million in Q2 2023
- Operating expenses increased to $23.2 million from $16.3 million in Q2 2023
- Cash and cash equivalents decreased to $10.8 million from $14.3 million at the end of Q1 2024
News Market Reaction 1 Alert
On the day this news was published, ALIM declined NaN%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Net Revenue up
54% to$27 Million vs. Q2 2023 - Global End User Demand up
6% vs. Q2 2023 - Company Recently Announced Definitive Merger Agreement with ANI Pharmaceuticals, Inc.
ATLANTA, Aug. 06, 2024 (GLOBE NEWSWIRE) -- Alimera Sciences, Inc. (Nasdaq: ALIM) (“Alimera”), a global pharmaceutical company whose mission is to be invaluable to patients, physicians and partners concerned with retinal health and maintaining better vision longer, today announced financial results for the second quarter of 2024. Alimera will not host a conference call today due to the recently announced agreement to be acquired by ANI Pharmaceuticals, Inc. (“ANI”).
“We are pleased with our strong second quarter results, in line with our expectations, as we completed the integration of YUTIQ into our U.S. business and delivered
Key Second Quarter Financial Highlights:
- Net revenue of
$27.0 million , up54% vs. Q2 2023 - Net loss improved to
$(3.3) million vs.$(10.7) million in Q2 2023 - Adjusted EBITDA of
$6.7 million vs.$0.9 million in Q2 2023 - U.S. net revenue of
$17.6 million , up48% vs.$11.9 million in Q2 2023 - International net revenue of
$9.4 million , up65% vs.$5.7 million in Q2 2023 - Global end user demand of 3,821 units up
6% vs. Q2 2023 on a pro-forma basis
Second Quarter Corporate Highlights:
- On June 21, 2024, Alimera entered into an agreement and plan of merger with ANI. Under the proposed merger, Alimera will be acquired for
$5.50 per share in cash at closing and one non-tradable contingent value right (CVR) representing the right to receive up to$0.50 per share upon the achievement of certain net revenue targets in 2026 and 2027. The transaction, which values Alimera’s equity at approximately$320 million in up front consideration, was approved by the ANI and Alimera Boards of Directors and is expected to close later this year. - Modified the terms associated with royalty payments Alimera is obligated to pay SWK Funding LLC (“SWK”), reducing the royalty to
3.125% of net revenues, and defining any product containing fluocinolone acetonide (“FAc”) as being subject to such royalty, including ILUVIEN and YUTIQ.
Second Quarter 2024 Financial Results
Net Revenue
Consolidated global net revenue was up
U.S. net revenue increased
International net revenue increased
Operating Expenses
Total operating expenses were approximately
Cash and Cash Equivalents
As of June 30, 2024, Alimera had cash and cash equivalents of approximately
About Alimera Sciences, Inc.
Alimera Sciences is a global pharmaceutical company whose mission is to be invaluable to patients, physicians and partners concerned with retinal health and maintaining better vision longer. For more information, please visit www.alimerasciences.com.
Non-GAAP Financial Measures
This press release presents Adjusted EBITDA, as defined below, which is a non-GAAP financial measure. Alimera uses this measure to supplement the financial information presented on a GAAP basis. Alimera believes that excluding certain items from its GAAP financial results allows management to better understand its ongoing operations and analyze its financial performance from period to period and provides meaningful supplemental information to its investors.
Alimera defines “Adjusted EBITDA” as earnings before interest, taxes, depreciation, amortization, stock-based compensation expenses, net unrealized gains and losses from foreign currency exchange transactions, gains on extinguishment of debt, preferred stock dividends, severance expenses, expenses incurred with Merger Agreement, and change in fair value of warrant asset.
Alimera believes that Adjusted EBITDA, when taken together with its corresponding GAAP financial measure, provides meaningful supplemental information to its investors regarding its performance by excluding certain items that may not be indicative of its business, results of operations or outlook. Accordingly, Adjusted EBITDA for the three months ended June 30, 2024, and 2023, together with a reconciliation to GAAP net income or loss, its most directly comparable GAAP financial measure, has been presented in the table entitled “Reconciliation of GAAP Loss to Non-GAAP Adjusted EBITDA.”
This non-GAAP financial measure may not be comparable to similarly titled measures reported by other companies, including companies in Alimera’s industry, because not all companies calculate Adjusted EBITDA in an identical manner or may use other financial measures to evaluate their performance. Therefore, this non-GAAP financial measure may be limited in usefulness for comparison between companies.
The presentation of this non-GAAP financial measure is not intended to be considered in isolation from or as a substitute for other financial performance measures prepared in accordance with GAAP and should be read only in conjunction with financial information presented on a GAAP basis. The principal limitation of this non-GAAP financial measure is that it excludes significant elements required by GAAP to be recorded in Alimera’s financial statements. In addition, this non-GAAP financial measure is subject to inherent limitations because it reflects the exercise of judgment by management. Investors are encouraged not to rely on any single financial measure to evaluate Alimera’s business.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding, among other things, Alimera’s expectations with respect to growth opportunities, demand for its product, its business strategy, future operations, future financial position including the timeline for achieving positive Adjusted EBITDA, future revenues, projected costs, prospects, plans and objectives. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “contemplates,” “predict,” “project,” “target,” “likely,” “potential,” “continue,” “ongoing,” “will,” “would,” “should,” “could,” or the negative of these terms and similar expressions or words, identify forward-looking statements. Forward-looking statements are based on current expectations and involve inherent risks and uncertainties (some of which are beyond Alimera’s control), including factors that could delay, divert or change any of them, and could cause actual results to differ materially from those projected in these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors discussed in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Alimera’s most recently filed Annual Report on Form 10-K, most recently filed Quarterly Report on Form 10-Q, and any of Alimera’s subsequent filings with the U.S. Securities and Exchange Commission (SEC) and available on the SEC’s website at www.sec.gov.
All forward-looking statements contained in this press release are expressly qualified by the cautionary statements contained or referred to herein. Alimera cautions investors not to rely on the forward-looking statements Alimera makes or that are made on its behalf as predictions of future events. These forward-looking statements speak only as of the date of this press release. Alimera undertakes no obligation to publicly update or revise any of the forward-looking statements made in this press release, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Additional Information and Where to Find It
In connection with the Merger, Alimera has filed a preliminary proxy statement and intends to file a definitive proxy statement. The definitive proxy statement and proxy card will be delivered to Alimera’s stockholders in advance of the special meeting relating to the proposed acquisition. Each of ANI and Alimera also plan to file other relevant materials with the SEC in connection with the Merger. INVESTORS IN AND SECURITY HOLDERS OF ALIMERA ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT IN ITS ENTIRETY WHEN IT BECOMES AVAILABLE, AS WELL AS ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR FURNISHED OR WILL BE FILED OR WILL BE FURNISHED BY EACH OF ANI AND ALIMERA WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER, RELATED MATTERS AND THE PARTIES TO THE MERGER. Materials filed by ANI and Alimera can be obtained free of charge at the SEC’s website, www.sec.gov. In addition, materials filed by ANI can be obtained free of charge at ANI’s website, www.anipharmaceuticals.com, and materials filed by Alimera can be obtained free of charge at Alimera’s website, www.alimerasciences.com.
| For investor inquiries: Scott Gordon for Alimera Sciences scottg@coreir.com | For media inquiries: Jules Abraham for Alimera Sciences julesa@coreir.com |
| ALIMERA SCIENCES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| (In thousands, except share and per share data) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 10,828 | $ | 12,058 | ||||
| Restricted cash | 33 | 32 | ||||||
| Accounts receivable, net | 37,079 | 34,545 | ||||||
| Prepaid expenses and other current assets | 4,013 | 3,909 | ||||||
| Inventory | 3,455 | 1,879 | ||||||
| Total current assets | 55,408 | 52,423 | ||||||
| Property and equipment, net | 2,278 | 2,466 | ||||||
| Right-of-use assets, net | 996 | 1,124 | ||||||
| Intangible assets, net | 91,587 | 97,355 | ||||||
| Deferred tax asset | 101 | 104 | ||||||
| Warrant asset | 7 | 52 | ||||||
| Total assets | $ | 150,377 | $ | 153,524 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 10,208 | $ | 8,252 | ||||
| Accrued expenses | 5,708 | 6,192 | ||||||
| Accrued licensor payment | 3,677 | 7,275 | ||||||
| Finance lease obligations | 245 | 194 | ||||||
| Total current liabilities | 19,838 | 21,913 | ||||||
| Non-current liabilities: | ||||||||
| Notes payable, net of discount | 69,731 | 64,489 | ||||||
| Accrued licensor payments | 16,111 | 15,136 | ||||||
| Other non-current liabilities | 5,909 | 5,816 | ||||||
| Total liabilities | 111,589 | 107,354 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, $.01 par value — 10,000,000 shares authorized at June 30, 2024 and December 31, 2023, none issued | — | — | ||||||
| Common stock, $.01 par value — 150,000,000 shares authorized, 52,387,763 shares issued and outstanding at June 30, 2024 and 52,354,450 shares issued and outstanding at December 31, 2023 | 524 | 524 | ||||||
| Common stock warrants | 4,396 | 4,396 | ||||||
| Additional paid-in capital | 464,825 | 462,446 | ||||||
| Accumulated deficit | (428,052 | ) | (418,490 | ) | ||||
| Accumulated other comprehensive loss | (2,905 | ) | (2,706 | ) | ||||
| Total stockholders’ equity | 38,788 | 46,170 | ||||||
| Total liabilities and stockholders’ equity | $ | 150,377 | $ | 153,524 | ||||
| ALIMERA SCIENCES, INC. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (In thousands, except share and per share data) | ||||||||||||||||
| Net revenue | $ | 27,000 | $ | 17,538 | $ | 50,011 | $ | 31,084 | ||||||||
| Cost of goods sold, excluding depreciation and amortization | (3,831 | ) | (2,425 | ) | (7,184 | ) | (4,453 | ) | ||||||||
| Gross profit | 23,169 | 15,113 | 42,827 | 26,631 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research, development and medical affairs expenses | 4,263 | 3,648 | 8,624 | 7,812 | ||||||||||||
| General and administrative expenses | 7,379 | 4,373 | 12,811 | 8,544 | ||||||||||||
| Sales and marketing expenses | 8,511 | 6,434 | 17,593 | 12,238 | ||||||||||||
| Depreciation and amortization | 3,093 | 1,866 | 6,178 | 2,547 | ||||||||||||
| Total operating expenses | 23,246 | 16,321 | 45,206 | 31,141 | ||||||||||||
| Loss from operations | (77 | ) | (1,208 | ) | (2,379 | ) | (4,510 | ) | ||||||||
| Interest expense and other, net | (3,153 | ) | (1,694 | ) | (6,892 | ) | (3,361 | ) | ||||||||
| Unrealized foreign currency loss, net | (125 | ) | (7 | ) | (321 | ) | (20 | ) | ||||||||
| Loss on extinguishment of debt | — | (1,079 | ) | — | (1,079 | ) | ||||||||||
| Change in fair value of common stock warrant | — | (105 | ) | — | (91 | ) | ||||||||||
| Change in fair value of warrant asset | 1 | (5,911 | ) | (45 | ) | (5,911 | ) | |||||||||
| Net loss before income taxes | (3,354 | ) | (10,004 | ) | (9,637 | ) | (14,972 | ) | ||||||||
| Income tax benefit (provision) | 43 | (25 | ) | 75 | (25 | ) | ||||||||||
| Net loss | (3,311 | ) | (10,029 | ) | (9,562 | ) | (14,997 | ) | ||||||||
| Preferred stock dividends | — | (669 | ) | — | (683 | ) | ||||||||||
| Net loss applicable to common stockholders | $ | (3,311 | ) | $ | (10,698 | ) | $ | (9,562 | ) | $ | (15,680 | ) | ||||
| Net loss per share — basic and diluted | $ | (0.06 | ) | $ | (1.32 | ) | $ | (0.18 | ) | $ | (2.07 | ) | ||||
| Weighted average shares outstanding — basic and diluted | 54,383,604 | 8,093,640 | 54,370,216 | 7,565,868 | ||||||||||||
| ALIMERA SCIENCES, INC. RECONCILIATION OF U.S. GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA (UNAUDITED) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (In thousands) | ||||||||||||||||
| U.S. GAAP net loss | $ | (3,311 | ) | $ | (10,029 | ) | $ | (9,562 | ) | $ | (14,997 | ) | ||||
| Adjustments to U.S. GAAP net loss: | ||||||||||||||||
| Interest expense and other, net | 3,153 | 1,694 | 6,892 | 3,361 | ||||||||||||
| Expenses incurred with Merger Agreement | 2,226 | — | 2,226 | — | ||||||||||||
| Income tax (benefit) provision | (43 | ) | 25 | (75 | ) | 25 | ||||||||||
| Depreciation and amortization | 3,093 | 1,866 | 6,178 | 2,547 | ||||||||||||
| Stock-based compensation | 1,457 | 217 | 2,302 | 442 | ||||||||||||
| Foreign currency exchange losses | 125 | 7 | 321 | 20 | ||||||||||||
| Extinguishment of debt | — | 1,079 | — | 1,079 | ||||||||||||
| Change in fair value of warrant asset | (1 | ) | 5,911 | 45 | 5,911 | |||||||||||
| Change in fair value of common stock warrant | — | 105 | — | 91 | ||||||||||||
| Severance expenses | 15 | — | 191 | — | ||||||||||||
| Non-GAAP adjusted EBITDA | $ | 6,714 | $ | 875 | $ | 8,518 | $ | (1,521 | ) | |||||||
FAQ
What was Alimera Sciences' (ALIM) net revenue for Q2 2024?
How much did Alimera's (ALIM) U.S. net revenue grow in Q2 2024?
What was Alimera Sciences' (ALIM) global end user demand in Q2 2024?
What is the value of Alimera Sciences' (ALIM) merger agreement with ANI Pharmaceuticals?
