Assertio (ASRT) - 2025 Q1 - Quarterly Report

Financial Performance - ROLVEDON net product sales decreased by $1.4 million from$14.5 million in Q1 2024 to $13.1 million in Q1 2025, primarily due to lower net pricing, partially offset by higher volume [125]. - Total revenues for Q1 2025 were$26.5 million, down from $32.4 million in Q1 2024, reflecting a decrease of approximately 18.2$13.2 million in Q1 2025 compared to a loss of $4.3 million in Q1 2024 [124]. - INDOCIN net product sales decreased by$3.1 million from $8.7 million in Q1 2024 to$5.5 million in Q1 2025 due to lower volume and pricing from generic competition [126]. - Sympazan net product sales decreased by $0.4 million from$2.6 million in Q1 2024 to $2.2 million in Q1 2025, primarily due to unfavorable payor mix and lower volume [127]. Expenses - Cost of sales decreased from$11.2 million in Q1 2024 to $7.8 million in Q1 2025, a reduction of approximately 30.0$22.0 million in Q1 2025 from $18.5 million in Q1 2024, an increase of approximately 19.8$5.6 million in Q1 2024 to $9.2 million in Q1 2025, reflecting a rise of approximately 63.5$0.4 million in Q1 2025, down from $0.7 million in Q1 2024, reflecting reduced costs associated with ongoing clinical activity for ROLVEDON [134]. - Selling, general and administrative expenses increased by$3.5 million from $18.5 million in Q1 2024 to$22.0 million in Q1 2025, driven by higher legal charges [136]. - Amortization of intangible assets increased by $3.6 million from$5.6 million in Q1 2024 to $9.2 million in Q1 2025, primarily due to changes in estimated useful lives of ROLVEDON and INDOCIN [137]. Cash Flow and Working Capital - Cash and cash equivalents totaled$87.3 million as of March 31, 2025, expected to be sufficient for operations and debt payments over the next 12 months [146]. - Net cash used in operating activities was $12.5 million in Q1 2025, compared to net cash provided of$7.5 million in Q1 2024 [151]. - Cash used in operating activities was $12.5 million for Q1 2025, a decrease from cash provided of$7.5 million in Q1 2024, primarily due to lower net product sales and higher expenses [152]. - Net working capital was a net use of cash of $10.1 million in Q1 2025, compared to a net cash provided of$3.6 million in Q1 2024, reflecting a $13.7 million change [152]. - Cash used in investing activities was$2.9 million in Q1 2025, consisting of $31.4 million in purchases of short-term investments, offset by$28.5 million from maturities [155]. - Cash used in financing activities was $0.1 million in Q1 2025, slightly down from$0.2 million in Q1 2024, related to employee stock awards [156]. Tax and Accounting - The company recorded an income tax expense of $0.2 million in Q1 2025, compared to$0.1 million in Q1 2024, with a full valuation allowance against net deferred tax assets [144]. - There were no material changes to the company's cash requirements from contractual obligations since the last filing [157]. - Critical accounting policies related to revenue recognition and impairment of long-lived assets remain unchanged since the last filing [158]. - The company is classified as a smaller reporting company and is not required to provide additional market risk disclosures [159]. Product and Market Strategy - ROLVEDON is indicated to decrease the incidence of infection in adult patients receiving anti-cancer drugs, targeting both hospitals and community oncology clinics [118]. - The company acquired ROLVEDON through a merger with Spectrum Pharmaceuticals on July 31, 2023, enhancing its product portfolio [118]. - The company is focusing on expanding its commercial capabilities through a patient-centric approach and omni-channel promotional model [121]. - The company anticipates that the average sales price for ROLVEDON will be negatively impacted in the remainder of 2025 due to increased discounts and rebates [125]. Restructuring - Restructuring charges were $0.3 million in Q1 2025, down from$0.7 million in Q1 2024, related to efficiency improvements in the sales and marketing department [141].