Retrophin Inc (RTRX) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $11.09 million, or $ 0.32 a share in the quarter, against a net profit of $11.22 million, or $0.08 a share in the last year period. On an adjusted basis, net profit for the quarter was $0.31 million, when compared with $5.19 million in the last year period. Revenue during the quarter grew 15.90 percent to $33.62 million from $29.01 million in the previous year period. Gross margin for the quarter expanded 50 basis points over the previous year period to 97.89 percent. Operating margin for the quarter stood at negative 42.86 percent as compared to a negative 28.41 percent for the previous year period.
Operating loss for the quarter was $14.41 million, compared with an operating loss of $8.24 million in the previous year period.
However, the adjusted operating income for the quarter stood at $0.31 million compared to $5.14 million in the prior year period. At the same time, adjusted operating margin contracted 1678 basis points in the quarter to 0.93 percent from 17.72 percent in the last year period.
“I’m very pleased with our progress to start the year,” said Stephen Aselage, chief executive officer of Retrophin. “Our meeting with the FDA in the first quarter helped define the path forward for sparsentan, and progress continues on the development of a protocol that will enable us to begin the pivotal trial in FSGS. In addition, our recent advancements with RE-024 have positioned us to begin dosing the first PKAN patients in our Phase 3 study mid-year. These clinical achievements, along with strong operational performance during the quarter, have built solid momentum for the remainder of 2017.”
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 $245.84 million as at Mar. 31, 2017, up 6.37 percent or $14.72 million from $231.12 million on Mar. 31, 2016. Current ratio was at 4.21 as on Mar. 31, 2017, down from 4.47 on Mar. 31, 2016. Cash conversion cycle (CCC) has increased to 317 days for the quarter from 204 days for the last year period. Days sales outstanding went down to 163 days for the quarter compared with 188 days for the same period last year.
Days inventory outstanding has decreased to 302 days for the quarter compared with 347 days for the previous year period. At the same time, days payable outstanding went up to 781 days for the quarter from 738 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 $44.58 million as on Mar. 31, 2017, up 1.49 percent or $0.65 million from $43.93 million on Mar. 31, 2016. Retrophin has witnessed an increase in long-term debt over the last one year. It stood at $44.58 million as on Mar. 31, 2017, up 1.49 percent or $0.65 million from $43.93 million on Mar. 31, 2016. Total debt was 8.74 percent of total assets as on Mar. 31, 2017, compared with 8.66 percent on Mar. 31, 2016. Debt to equity ratio was at 0.15 as on Mar. 31, 2017, up from 0.14 as on Mar. 31, 2016.
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