Emmaus Life Sciences Inc (OTCQX:EMMA) has reported net revenue of $4.9 million for the third quarter of 2022, nearly 15% higher than the $4.3 million recorded in the second quarter, boosted primarily by its sickle cell oral therapy Endari in the United Arab Emirates after it was approved for sale in May this year.
"We enjoyed a third straight substantial increase in quarterly net revenue due to increased sales in the Middle East North Africa region. The increase was less than anticipated because of a delay in production of product packaging specific to the region. The product is being processed and we are optimistic that the sales will be realized in Q4," Yutaka Niihara, Emmaus’ chairman and CEO said in a statement.
"We also are pleased to see significant decrease in the loss from operations compared to the previous quarters. We continue to discuss with stakeholder the possible restructuring or refinancing of our outstanding indebtedness and other current liabilities and will report on any transactions in this regard as they may occur," he added.
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The commercial-stage biopharmaceutical company and leader in the treatment of sickle cell disease said it reported lower net revenue for the three months to September from the same period in 2021 due to lower bulk order purchases in 2022 as a result of overstocking by US distributors last year.
Total operating expenses for the three months were $5.1 million, compared with $5.4 million for the same period in 2021. Of the decreased expenses in Q3, $0.2 million was attributable to a decrease in professional fees.
Meanwhile, the loss from operations for the three months was $0.7 million, compared to $31,000 in the same period in 2021. The increased operating loss resulted from lower net revenues in 2022 compared to 2021.
Emmaus realized a net loss of $0.4 million for the third quarter, compared to a loss of $3.2 million a year earlier, primarily due to the $3.1 million increase in other income, which was partially offset by a decrease of $0.7 million in loss from operations.
As of September 30, 2022, the company had cash and cash equivalents of $1.2 million, compared with $2.3 million on December 31, 2021.
Based on the cash and cash equivalents, anticipated future revenues, current liabilities and expected operating expenses, Emmaus said its working capital is insufficient to meet its current liabilities and anticipated future working capital requirement for the next 12 months without restructuring or refinancing its existing indebtedness 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.
Emmaus Life Sciences currently markets and sells Endari® (L-glutamine oral powder), indicated to reduce the acute complications of sickle cell disease in adults and children five years and older, in the U.S. and in the United Arab Emirates, and is pursuing marketing authorization for Endari® in other Gulf Cooperation Council countries.
The company is also engaged in the discovery and development of innovative treatments and therapies for certain rare and orphan diseases as well as those affecting larger populations, such as certain cancers.
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