Egalet Corporation (EGLT) saw its loss widen to $21.37 million, or $0.87 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $6.79 million, or $0.28 a share.
Revenue during the quarter plunged 68.32 percent to $6.14 million from $19.38 million in the previous year period. Gross margin for the quarter contracted 407 basis points over the previous year period to 82.41 percent.
Operating loss for the quarter was $18.62 million, compared with an operating loss of $6.48 million in the previous year period.
"The fourth quarter of 2016 showed continued momentum for both SPRIX ® (ketorolac tromethamine) Nasal Spray and OXAYDO® (oxycodone HCI, USP) tablets for oral use only -CII," said Bob Radie, president and chief executive officer of Egalet.
Working capital drops significantly
Egalet Corporation has witnessed a decline in the working capital over the last year. It stood at $68.28 million as at Dec. 31, 2016, down 43.84 percent or $53.30 million from $121.57 million on Dec. 31, 2015. Current ratio was at 3.74 as on Dec. 31, 2016, down from 5.24 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 14 days for the quarter from 95 days for the last year period. Days sales outstanding went up to 16 days for the quarter compared with 3 days for the same period last year.
Days inventory outstanding has increased to 72 days for the quarter compared with 32 days for the previous year period. At the same time, days payable outstanding went down to 102 days for the quarter from 130 for the same period last year.
Debt increases substantially
Egalet Corporation has witnessed an increase in total debt over the last one year. It stood at $84.09 million as on Dec. 31, 2016, up 50.81 percent or $28.33 million from $55.76 million on Dec. 31, 2015. Total debt was 73.21 percent of total assets as on Dec. 31, 2016, compared with 32.34 percent on Dec. 31, 2015. Debt to equity ratio was at 15.79 as on Dec. 31, 2016, up from 0.62 as on Dec. 31, 2015.
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