Inogen shares nosedive after poor fourth-quarter earnings
Shares of Goleta-based Inogen have nosedived 32% in the days since the company’s fourth quarter and full-year earnings results.
Inogen, a maker of portable oxygen containers, announced on Feb. 23 that it suffered a net loss of $56.6 million for the quarter ended Dec. 31, up substantially from a net loss of $22.8 million in the same quarter a year ago.
The company said in its press release the loss included a one-time loss on disposal of intangible asset of $52.2 million and an offsetting reduction to fair value of contingent liability of $15.4 million.
Adjusted for one-time losses, Inogen suffered a net loss of just $13 million, or 57 cents per share, actually beating analysts’ expectations of a net loss of 60 cents for the quarter.
But, analysts must have been surprised by the wider non-adjusted net loss, as shares of Inogen’s stock is down 32.3% as of March 1 with the stock hovering above $15.50.
Revenue in the fourth quarter was $88.1 million for Inogen, up 15.3% year-over-year. For the entire fiscal year, revenue was $377.2 million, slight 5.4% growth rate from 2021’s final number.
“Despite the headwinds we faced in 2022, I am pleased with how our team successfully managed these challenges, while growing revenue and executing on our transformation,” Nabil Shabshab, CEO of Inogen, said in a press release.
“We remain focused on our innovation pipeline to provide a foundation for growth along with judicious management of operating expenses to drive medium to long-term growth.”
Inogen ended the quarter with cash and cash equivalents worth $187 million.
OLAPLEX STRUGGLES CONTINUE
Sales and earnings fell yet again for Olaplex Holdings, a Montecito-based hair products seller, in the fourth quarter of 2022 leading to shares dropping nearly 10% during the trading day Feb. 28.
Olaplex presented a net income of $33.6 million or 5 cents per diluted share for the quarter that ended Dec. 31, down from $69.3 million, or 11 cents per share, in the same quarter a year ago.
Net sales also declined 21.5% in the fourth quarter, as the company generated just $130.7 million, with 28% of those sales coming from the United States.
Olaplex president and CEO JuE Wong stated that the company expected the challenges in the fourth quarter.
“Our priorities in 2023 are to reset our base and invest in our core to provide a more powerful platform for growth,” said JuE Wong, Olaplex’s president and CEO, in a press release.
Wong continued by emphasizing Olaplex’s commitment to increasing sales, marketing and education while bringing to market products the company can be proud to sell to its devoted consumer base.
“We believe the actions we are taking along with our strength in product technology, R&D and community, combined with our strong cash flow generation, will enable us to increase our leadership position in prestige haircare and return the business to grow in the future,” she said.
For the year, Olaplex sales did increase from $598.3 million to $704.2 million while net income increased from $220.7 million to $244 million.
Olaplex shares closed at $4.92 a share on Feb. 28, down 9% after the company’s earnings release. Since going public in 2021, Olaplex shares are down 75%.
ARCUTIS GEARING UP FOR 2023
Arcutis Biotherapeutics generated sales from its first treatment during the fourth quarter of 2022, helping usher in a new era for the company.
Based in Westlake Village, Arcutis recognized $3 million in revenue for the quarter that ended Dec. 31, all of it coming from its Zoryve cream aimed to treat plaque psoriasis. For the year, revenue was $3.7 million.
During the fourth quarter, the company also secured expanded commercial payer coverage for Zoryve with the second of the top three pharmacy benefit managers in the U.S., as well as an additional national health plan.
“Arcutis’ execution in 2022 was extraordinary, setting us up very well for 2023 and beyond. We are well on our way towards building one of the industry’s leading medical dermatology companies focused on long-term growth from our broad, innovative pipeline,” Frank Watanabe, Arcutis’ president and CEO, said in a press release.
He added since June the company has delivered “four successful pivotal Phase 3 trial readouts” and has raised nearly $300 million “to bolster a strong balance sheet.”
“The momentum around the Zoryve psoriasis launch continues to build, with confirmatory feedback on our differentiated product profile and access strategy setting the foundation for commercial success in psoriasis as well as our next three indications,” he said.
Arcutis’ net loss in the fourth quarter was $72 million, in line with last fourth quarter’s $71.2 million net loss.
For the year, the company’s net loss was $311.5 million compared to $206.4 million in 2021 as Arcutis’ research and development costs rose.
Shares of Arcutis were up 3.5% on March 1, the day after its earnings release with the stock hovering above $16.60 a share.
MANNKIND DELIVERS RECORD REVENUE
MannKind, a biotechnology company that develops treatments for diabetes and pulmonary arterial hypertension, delivered a record year for revenue behind its multiple products out in the market.
Based in Westlake Village, MannKind generated revenue worth $99.7 million in 2022, up from $75.2 million in 2021.
In the fourth quarter, revenue also shot up to $36 million, nearly tripling its fourth quarter amount from 2021 of $12.5 million.
The strong revenue growth is due to the continued adoption of its main product, Afrezza, which saw 11% growth in sales year-over-year to $43.3 million. MannKind’s other product, V-Go which it acquired in 2022, reached sales of $12.9 million.
“For 2022, we recognized almost $100 million in total revenues – an incredible triumph for our entire organization,” Michael Castagna, CEO of MannKind, said in a press release.
“With our revenues growing nicely, we are focusing on our product pipeline where our INHALE-1 Phase 3 trial for Afrezza in pediatrics reached 50% enrollment at December 31, 2022 and our inhaled clofazimine will move into an adaptive Phase 2/3 study in the second half of 2023.”’
The company did suffer a net loss of $17.8 million in the fourth quarter, and although it was higher than analysts expected, it was still lower than the company’s $28 million loss in the fourth quarter of 2021.
For the year, MannKind had a net loss of $87.4 million up from $80 million in 2021, but that was mostly due to the company’s acquisition of V-Go.
Shares of MannKind are down about 7% since the company released its earnings on Feb. 23 with the price hovering above $4.80 as of March 1.
The company ended the quarter with cash and cash equivalents worth $172.8 million.