Retrophin, Inc (RTRX) saw its loss widen to $8.60 million, or $0.39 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $2.47 million, or $0.14 a share. On an adjusted basis, net profit for the quarter was $0.10 million, when compared with $2.27 million in the last year period. Revenue during the quarter grew 22.60 percent to $37.33 million from $30.45 million in the previous year period. Gross margin for the quarter contracted 72 basis points over the previous year period to 96.78 percent. Operating margin for the quarter stood at negative 48.82 percent as compared to a negative 49.94 percent for the previous year period.
Operating loss for the quarter was $18.22 million, compared with an operating loss of $15.20 million in the previous year period.
However, the adjusted operating income for the quarter stood at $0.67 million compared to $2.93 million in the prior year period. At the same time, adjusted operating margin contracted 783 basis points in the quarter to 1.79 percent from 9.62 percent in the last year period.
“We are pleased to have received regulatory guidance from the FDA for sparsentan and look forward to working with them to finalize our Phase 3 study protocol and initiate this important trial later this year,” said Stephen Aselage, chief executive officer of Retrophin. “We are particularly encouraged by the agency’s alignment on the use of an interim analysis of proteinuria in this trial, which gives us an opportunity to expedite sparsentan’s path to approval. We are eager to build on the strong data from the Phase 2 DUET study to further demonstrate the significant potential of sparsentan in the treatment of FSGS.”
Retrophin projects revenue to be in the range of $150 million to $160 million for financial year 2017.
Working capital increases
Retrophin, Inc has recorded an increase in the working capital over the last year. It stood at $249.09 million as at Dec. 31, 2016, up 15.25 percent or $32.96 million from $216.13 million on Dec. 31, 2015. Current ratio was at 3.99 as on Dec. 31, 2016, up from 3.52 on Dec. 31, 2015. Cash conversion cycle (CCC) has decreased to 99 days for the quarter from 219 days for the last year period. Days sales outstanding went down to 81 days for the quarter compared with 90 days for the same period last year.
Days inventory outstanding has decreased to 108 days for the quarter compared with 153 days for the previous year period. At the same time, days payable outstanding went down to 288 days for the quarter from 462 for the same period last year.
Debt moves up marginally
Retrophin, Inc has witnessed an increase in total debt over the last one year. It stood at $44.42 million as on Dec. 31, 2016, up 1.50 percent or $0.66 million from $43.77 million on Dec. 31, 2015. Retrophin has witnessed an increase in long-term debt over the last one year. It stood at $44.42 million as on Dec. 31, 2016, up 1.50 percent or $0.66 million from $43.77 million on Dec. 31, 2015. Total debt was 8.46 percent of total assets as on Dec. 31, 2016, compared with 8.54 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.14 as on Dec. 31, 2016, when compared with the last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
