Retrophin, Inc (RTRX) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $37.11 million, or $ 1 a share in the quarter, against a net profit of $105.58 million, or $1.78 a share in the last year period. On an adjusted basis, net loss for the quarter was $3.42 million, when compared with $1.95 million in the last year period. Revenue during the quarter grew 21.21 percent to $33.94 million from $28 million in the previous year period. Gross margin for the quarter contracted 280 basis points over the previous year period to 95.37 percent. Operating margin for the quarter stood at negative 60.01 percent as compared to a negative 73.19 percent for the previous year period.
Operating loss for the quarter was $20.37 million, compared with an operating loss of $20.50 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $3.27 million compared to operating profit of $3.21 million in prior year period.
"Positive top-line data from the DUET study demonstrating sparsentan’s potential to be a significant advancement in the treatment of FSGS enabled a pivotal third quarter for Retrophin," said Stephen Aselage, chief executive officer of Retrophin. "With the RE-024 efficacy study in PKAN patients on track to initiate by year-end and further top-line revenue growth expected, we are in position to deliver on all of our transformational milestones in 2016."
For financial year 2016, Retrophin, Inc expects revenue to be in the range of $130 million to $140 million.
Working capital increases sharply
Retrophin, Inc has recorded an increase in the working capital over the last year. It stood at $256.60 million as at Sep. 30, 2016, up 29.59 percent or $58.59 million from $198.01 million on Sep. 30, 2015. Current ratio was at 3.98 as on Sep. 30, 2016, up from 2.94 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 35 days for the quarter from 332 days for the last year period. Days sales outstanding went down to 99 days for the quarter compared with 117 days for the same period last year.
Days inventory outstanding has decreased to 95 days for the quarter compared with 417 days for the previous year period. At the same time, days payable outstanding went down to 229 days for the quarter from 867 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 $44.26 million as on Sep. 30, 2016, up 1.17 percent or $0.51 million from $43.75 million on Sep. 30, 2015. Retrophin, Inc has witnessed an increase in long-term debt over the last one year. It stood at $44.26 million as on Sep. 30, 2016, up 1.17 percent or $0.51 million from $43.75 million on Sep. 30, 2015. Total debt was 8.31 percent of total assets as on Sep. 30, 2016, compared with 8.55 percent on Sep. 30, 2015. Debt to equity ratio was almost stable at 0.14 as on Sep. 30, 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
