Emmaus Life Sciences Inc (OTCQX:EMMA) has announced its financial results for the three and six months ended June 30, 2022, which received a fillip from the marketing approval in May of its sickle cell disease treatment Endari in the United Arab Emirates (UAE).
The company reported net revenues of $4.3 million for the second quarter, a rise of nearly 33% compared with the first quarter of 2022, on the back of sales of Endari in the UAE and sales of Endari on an early access basis in Saudi Arabia.
"We are pleased to have realized significant increases in net revenues for two consecutive quarters after our sales were negatively impacted by COVID-19 related travel issues and lockdowns throughout much of 2021, and are looking forward to continued increases in sales in the Middle East North Africa region, where we are anticipating a decision on our marketing approval application for Endari in the Kingdom of Saudi Arabia before year-end and perhaps as early as the end of the third quarter," Yutaka Niihara, MD, MPH, chairman and CEO of Emmaus said in a statement.
The CEO added that Emmaus is in discussions “to possibly restructure or refinance our outstanding indebtedness and other current liabilities in conjunction with our efforts to improve sales”.
READ: Emmaus Life Sciences says it successfully expands market access to sickle cell treatment Endari in 1Q
Net revenues were $7.5 million in the first half of 2022, compared with $11.8 million in the same period last year. The decrease was primarily attributable to lower bulk order purchases in 2022 compared to the same period last year due to overstocking by US distributors in 2021.
Net loss was $8.9 million in the second quarter compared with net income of $2.5 million in the same period the year before.
The company had cash and cash equivalents of $1.0 million as of June 30, 2022, compared with $2.3 million as of December 31, 2021.
Emmaus said that based on its cash, anticipated future revenues, current liabilities and expected operating expenses, management believes the company's working capital is insufficient to meet its needs for the next 12 months without restructuring or refinancing its debt and other current liabilities and obtaining additional loans from related parties or debt or equity financing from third parties or curtailing certain operations or activities.
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