Significant progress in its clinical-development programs – and a chunky opt-in payment from a major international partner – won’t affect BioSpecifics Technologies Corp.’s financial fortunes until the third quarter, but the spry old timer of Long Island biopharmaceuticals is already riding high.
The Lynbrook-based, circa-1957 “specialty pharmaceuticals corporation” – which produces collagenase-based therapies for Peyronie’s disease, which causes the penis to curve, sometimes painfully, during an erection – on Tuesday reported strong financial results for its second quarter, ended June 30.
Among the highlights of the report: a 36.3 percent increase in second-quarter net income, from $1.8 million in 2Q 2015 to $2.6 million this year, and quarterly earnings that improved from 24 cents per fully diluted share last year to 37 cents per share in 2Q 2016.
Also showing a marked increase were the company’s year-over-year second-quarter revenues, jumping 27.6 percent from $4.7 million in 2Q 2015 to $6.2 million this year.
The company specifically credited the revenue spike to increased sales of Xiaflex – a first-in-class collagenase clostridium histolyticum, or CCH, marketed as Xiapex in Europe – through distribution partner Endo International.
Quarterly expenses rose only slightly year-over-year. Research and development costs were $400,000 in 2Q 2016, compared to $300,000 last year, and general and administrative expenses were reported as $400,000 this year, as opposed to $300,000 in 2Q 2013.
It all adds up to a strong company growing stronger by nearly every financial measure. As of June 30, BioSpecifics Technologies reported cash, cash equivalents and investments of $45.8 million – a significant increase over the $37.1 million it reported just six months earlier, at the end of its 2015 fiscal year.
Tuesday’s glowing report followed a March financial statement that noted a 62 percent year-over-year hike in first-quarter revenues, also credited to skyrocketing Xiaflex sales through Endo International.
BioSpecifics Technologies President Thomas Wegman – one of only five full-timers on staff at the Lynbrook company, which is consistently ranked at or near the top of Long Island’s public-company lists – said the strong second quarter and the strong first half of fiscal 2016 as a whole point to bigger and better returns on the horizon.
Among the goodies investors can look forward to in the second half of 2016 is a $750,000 boost from Endo International, triggered by “statistically significant results” from a Phase II clinical trial pitting CCH against human lipoma.
“We made significant progress advancing our clinical development programs during the second quarter,” Wegman said Tuesday. “We are pleased with Endo’s decision to opt-in to this indication, triggering a $750,000 opt-in payment from Endo, which we will receive in the third quarter of 2016.”
And the company may just be getting started with potential uses for its flagship CCH, the president added, with early designs on clinical programs targeting plantar fibromatosis, Dupuytren’s nodules – lumps associated with Dupuytren’s contracture, a condition that causes connective tissue to thicken in the palm of the hand – and other indications.