Emmaus Life Sciences Reports Q3 2022 Financial Results and Provides Business Update

TORRANCE, Calif., Nov. 14, 2022 /PRNewswire/ — Emmaus Life Sciences, Inc. (OTCQX: EMMA), a commercial-stage biopharmaceutical firm and chief within the remedy of sickle cell illness, right now reported on its outcomes of operations and monetary situation as of and for the three and 9 months ended September30, 2022 and offered a enterprise replace.

Current Highlights

“We loved a 3rd straight substantial enhance in quarterly internet income on the energy of elevated gross sales within the Center East North Africa (MENA) area. Promote-through by our home distributors additionally elevated, though our home gross sales had been comparatively flat in comparison with the second quarter because of a big bulk order because the second quarter was ending.  We anticipate an extra enhance in internet income in This autumn as we full the primary bulk manufacturing of product packaging particular to the MENA area,” said Yutaka Niihara, M.D., M.P.H., Chairman and Chief Govt Officer of Emmaus.

Dr. Niihara added, “We’re happy to see progressive lower in quarterly internet loss.  We are going to proceed to work with stakeholders and all associated events on additional restructuring or refinancing of our excellent indebtedness and different present liabilities and can report on any transactions on this regard as they might happen.”

Monetary and Working Outcomes

Internet Revenues. Internet revenues for the three months and 9 months ended September 30, 2022 had been $4.9 million and $12.5 million, respectively, in comparison with $5.8 million and $17.6 million, respectively, for identical durations in 2021.  The lower was primarily attributable to decrease bulk order purchases in 2022 in comparison with the identical durations in 2021 because of overstocking by U.S. distributors in 2021. Internet revenues in Q3 2022 elevated by $0.7 million, or almost 15%, from Q2 2022 internet revenues of $4.3 million. Internet revenues had been positively affected by Q3 gross sales of Endari within the United Arab Emirates, the place Endari was permitted for advertising and marketing in Could 2022, and, to a lesser extent, gross sales on an early entry foundation within the different Gulf Cooperation Council (GCC) nations. The corporate had no related gross sales in Q1 2022 or in 2021.

Working Bills. Complete working bills for the three months ended September 30, 2022 had been $5.1 million, in contrast with $5.4 million for a similar interval in 2021.  Of the decreased bills in Q3, $0.2 million was attributable to a lower in skilled charges. Complete working bills for the 9 months ended September 30, 2022 had been $15.7 million, in contrast with $17.4 million for a similar interval in 2021. The lower was because of a $1.8 million lower in analysis and improvement bills associated to $0.5 million in money and $0.5 million in shares of the Firm widespread inventory paid and issued in 2021 to Kainos Medication, Inc. (“Kainos”) to guide the scientific improvement of Kainos’s patented IRAK4 inhibitor. Complete working bills in Q3 2022 decreased barely from Q2 2022 because of $0.3 million lower in promoting bills.

Loss From Operations. Loss from operations for the three months ended September 30, 2022 was $0.7 million, in comparison with $31,000 in the identical interval in 2021.  Working loss for 9 months ended September 30, 2022 elevated to $5.2 million, in comparison with $1.2 million for a similar interval final 12 months. The elevated working loss resulted from decrease internet revenues in 2022 in comparison with 2021. Loss from operations in Q3 2022 decreased by $0.8 million, or 54.2%, from $1.4 million in Q2 2022 because of the rise in internet revenues in Q3.

Different Revenue (Expense). Different earnings elevated by $3.1 million to $0.2 million for the three months ended September 30, 2022, in comparison with different expense of $2.9 million in the identical interval in 2021. Different earnings in Q3 included a $5.2 million lower in change in honest worth of conversion characteristic derivatives and a $1.2 million enhance in international change loss as in comparison with Q3 2021.

Internet Loss. For the quarter, the corporate realized a internet lack of $0.4 million, or $0.01 per share based mostly on roughly 49.6 million weighted common primary and diluted widespread shares. This compares to internet lack of $3.2 million, or $0.06 per share based mostly on roughly 49.3 million weighted common primary and diluted widespread shares for the third quarter of 2021. The lower in internet loss was primarily attributable to the rise of $3.1 million in different earnings, partially offset by a lower of $0.7 million in loss from operations mentioned above.  For the 9 months ended September 30, 2022, the corporate incurred a internet lack of $10.8 million, or $0.22 per share, based mostly on roughly 49.4 million weighted common primary and diluted widespread shares. This compares to a internet lack of $9.1 million, or $0.18 per share, based mostly on roughly 49.2 million weighted common primary and diluted widespread shares for the 9 months ended September 30, 2021. Internet loss for Q3 2022 decreased by $8.5 million, or 96%, from $8.9 million in Q2 2022 due to the rise of $7.5 million in different earnings and a lower of $0.8 million in loss from operations, as mentioned above.

Liquidity and Capital Assets. At September 30, 2022, the corporate had money and money equivalents of $1.2 million, in contrast with $2.3 million at December 31, 2021. Money and money equivalents at September 30 included the online proceeds of $5.5 from associated get together loans. Based mostly on the corporate’s money and money equivalents, anticipated future revenues, present liabilities and anticipated working bills, the corporate’s working capital is inadequate to fulfill its present liabilities and anticipated future working capital requirement for the subsequent 12 months with out restructuring or refinancing its current indebtedness and different present liabilities and acquiring further loans from associated events or debt or fairness financing from third events or curbing sure operations or actions.

About Emmaus Life Sciences

Emmaus Life Sciences, Inc. is a commercial-stage biopharmaceutical firm and chief within the remedy of sickle cell illness. The corporate at present markets and sells Endari® (L-glutamine oral powder), indicated to cut back the acute issues of sickle cell illness in adults and youngsters 5 years and older, within the U.S. and within the United Arab Emirates, or U.A.E., and is pursuing advertising and marketing authorization for Endari® in different Gulf Cooperation Council nations. The corporate can also be engaged within the discovery and improvement of revolutionary remedies and therapies for sure uncommon and orphan illnesses in addition to these affecting bigger populations, comparable to sure cancers. For extra info, please go to www.emmausmedical.com.

About Endari® (prescription grade L-glutamine oral powder)

Endari®, Emmaus’ prescription grade L-glutamine oral powder, is permitted for advertising and marketing by the U.S. Meals and Drug Administration and the U.A.E. Ministry of Well being for treating sickle cell illness. Endari® can also be obtainable on a named-patient or early-access foundation in France, the Netherlands, the United Kingdom, Saudi Arabia, Bahrain, Qatar, Oman, and Kuwait.

Indication

Endari® is indicated to cut back the acute issues of sickle cell illness in grownup and pediatric sufferers 5 years of age and older.

Necessary Security Data

The commonest hostile reactions (incidence >10 p.c) in scientific research had been constipation, nausea, headache, stomach ache, cough, ache in extremities, again ache, and chest ache.

Antagonistic reactions resulting in remedy discontinuation included one case every of hypersplenism, stomach ache, dyspepsia, burning sensation, and scorching flash.

The protection and efficacy of Endari® in pediatric sufferers with sickle cell illness youthful than 5 years of age has not been established.

For extra info, please see full Prescribing Data of Endari® at: www.ENDARIrx.co/PI.

Ahead-looking Statements

This press launch comprises forward-looking statements made pursuant to the protected harbor provisions of the Personal Securities Litigation Reform Act of 1995, as amended, together with statements concerning potential elevated gross sales of Endari® within the GCC nations, potential advertising and marketing approval within the Kingdom of Saudi Arabia and maybe different nations within the Center East North Africa (MENA) area, potential restructuring or refinancing of excellent indebtedness or potential fairness or debt financings. These forward-looking statements are topic to quite a few assumptions, dangers and uncertainties which change over time, together with dangers and uncertainties referring to the corporate’s working capital and talent to boost wanted financing, dangers inherent within the regulatory approval course of and commercialization of Endari® within the MENA area, and different elements disclosed within the firm’s Annual Report on Type 10-Ok for 2021 and Quarterly Reviews on Type 10-Q filed with the Securities and Change Fee, and precise outcomes could differ materially. Such forward-looking statements communicate solely as of the date they’re made, and Emmaus assumes no responsibility to replace them, besides as could also be required by legislation. 

Firm Contact:                                                   
Emmaus Life Sciences, Inc.                                      
Willis Lee                                           
Chief Working Officer                                                          
(310) 214-0065, Ext. 1130                                           
[email protected]

(Monetary Tables Observe)

SOURCE Emmaus Life Sciences, Inc.