Emmaus Life Sciences Inc (OTCQX:EMMA) co-founder and CEO Dr Yutaka Niihara has told investors that the commercial-stage biopharmaceutical company successfully expanded market and patient access to sickle cell treatment Endari during the first quarter.
"Immediately after the United Arab Emirates, granted full marketing authorization in March, we received a significant order from one of our distributors in the country and expect to see a continuing flow of orders going forward,” Dr Niihara said in an earnings statement.
“Additionally, the launch of our unique, full-service telehealth solution in April is expected to make a meaningful impact, as it gives both patients and providers on-line access to Endari, allowing for same-day physician authorization and at-home delivery,” he added.
READ: Emmaus Life Sciences is tackling debilitating sickle cell disease as it eyes other remedies
According to Emmaus, early indications from the uptake of the telehealth program are “promising.” The firm said it should give it a “competitive advantage” over other sickle cell treatments as Endari is the only treatment that can be prescribed through telehealth because it doesn’t require “a blood test prior to or after treatment” and is taken orally.
“Since a majority of sickle cell disease patients do not regularly see a doctor, we believe that our telehealth service will allow us to reach and capture a greater percentage of this unserved patient population," added Dr Niihara.
For the 1Q ended March 31, 2022, the Torrance, California-based leader in the treatment of sickle cell disease reported net revenues of $3.2 million, compared to $5.3 million for the same period in 2021.
The company said that although sell-through by its distributors increased compared to 2021, net revenue was adversely affected by “overstocking by distributors” in response to discounts given by the company on bulk pre-orders in the first three months of 2022.
Meanwhile, total operating expenses for the quarter fell to $5.3 million from $6.5 million in 1Q 2021. The $1.3 million decrease was attributable to smaller research and development expenses related to one time license fees paid to Kainos (LSE:KNOS) Medicine Inc in 2021.
For the quarter, Emmaus realized a smaller net loss of $1.5 million, or $0.03 per share, compared to a net loss of $8.4 million, or $0.17 per share in the comparable period in 2021.
The company attributed the smaller net loss to the rise in other income for the quarter, partially offset by a higher loss from operations.
Dr Niihara said: "While the company's financial results for the 1Q were adversely affected by overstocking of Endari by our distributors in prior periods - impacted, in part by the effects of the COVID-19 pandemic - sell through of Endari by distributors in the first three months of 2022 was substantially higher than in the same period in 2021.”
He added: “We anticipate a possible uptick in sales in the US and UAE, as well as additional marketing approvals in the Gulf Cooperation Council countries later this year. Domestically, our new telehealth solution should positively impact US sales for the full year."
As of March 31, 2022, Emmaus had cash and equivalents of $0.8 million, compared with $2.3 million at the end of December 2021.
Emmaus said it is likely to bolster its working capital with additional loans or debt or equity financing from third parties or curtail “certain operations or activities at its Japanese joint venture in Ube, Japan.”
The company currently markets and sells Endari (L-glutamine oral powder), which helps to reduce the acute complications of debilitating sickle cell disease in adults and children 5 years and older, in the US and in the Emirates.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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