Business Wire | Nov 5, 2020 06:50AM EST

ANI Pharmaceuticals Reports Third Quarter 2020 Results

Nov. 05, 2020

BAUDETTE, Minn.--(BUSINESS WIRE)--Nov. 05, 2020--ANI Pharmaceuticals, Inc. ("ANI" or the "Company") (NASDAQ: ANIP) today announced business highlights and financial results for the three and nine months ended September 30, 2020.

Business and Recent Highlights

* Company's supplemental New Drug Application ("sNDA") for lead product, Cortrophin Gel, re-filing on track; driving commercial and operational readiness for a successful launch; * Welcomed Nikhil Lalwani as President and CEO, on September 8, 2020; and * Broadened Board of Directors' scope of experience with addition of two pharmaceutical industry leaders, Jeanne Thoma and Tony Pera.

Third Quarter 2020 Financial Highlights

* Net revenues for Q3 2020 were $53.0 million compared to $51.3 million in Q3 2019 and $48.5 million in Q2 2020. * GAAP net income for Q3 2020 was $0.4 million, and diluted GAAP earnings per share was $0.04. * Adjusted non-GAAP EBITDA for Q3 2020 was $17.0 million. * Adjusted non-GAAP diluted earnings per share for Q3 2020 was $0.97. * Cash and cash equivalents were $17.9 million, net accounts receivable was $83.7 million, and debt was $187.9 million as of September 30, 2020.

"My initial two months as CEO of ANI Pharmaceuticals have been rewarding, as I have set forth to evaluate the state of the business and begun to build plans for the next phase of ANI's growth. I have completed tours of our manufacturing facilities, conducted dozens of one-on-ones and small group discussions with our team, commercial customers, CDMO clients, key suppliers and external stakeholders. All of these interactions have contributed to understanding our challenges, and importantly, our opportunities and what we need to do to realize their full potential. These include the significant opportunity with Cortrophin Gel, a strong North American manufacturing footprint that can be leveraged further and a robust portfolio of ANDAs, several of which have limited competition. In addition, the target-rich acquisition environment will enable us to build on our strong track record of pursuing accretive in-organic opportunities to enhance scale and capabilities in our company. I am excited to lead ANI at this important time in the company's journey," stated Nikhil Lalwani, President and CEO.

Third Quarter 2020 Financial Results

Net Revenues Three Months Ended (in thousands) September 30

2020 2019

Generic pharmaceutical products $ 37,712 $ 31,753

Branded pharmaceutical products 12,411 16,605

Contract manufacturing 2,152 2,376

Royalty and other income 704 603

Total net revenues $ 52,979 $ 51,337

Net revenues for generic pharmaceutical products were $37.7 million during the three months ended September 30, 2020, an increase of 18.8% compared to $31.8 million for the same period in 2019, primarily due to the January 2020 launch of Miglustat, Penicillamine, and Paliperidone, all products acquired from Amerigen. The increases were tempered by declines in revenues of Ezetimibe Simvastatin, Vancomycin Capsules, and Methazolamide.

Net revenues for branded pharmaceutical products were $12.4 million during the three months ended September 30, 2020, a decrease of 25.3% compared to $16.6 million for the same period in 2019, primarily due to lower unit sales of Inderal XL and Innopran XL and a decline in revenues of Atacand.

Contract manufacturing revenues were $2.2 million during the three months ended September 30, 2020, a decrease of 9.4% compared to $2.4 million for the same period in 2019, due to a decreased volume of orders from contract manufacturing customers in the period.

Royalty and other revenues were $0.7 million during the three months ended September 30, 2020, an increase of $0.1 million from $0.6 million for the same period in 2019, primarily due to an increase in product development revenues earned by ANI Canada and an increase in royalty revenues.

Operating expenses increased to $50.2 million for the three months ended September 30, 2020, from $44.0 million in the prior year period.

Cost of sales, excluding depreciation and amortization, increased by $5.1 million to $20.1 million in the third quarter of 2020, primarily as a result of increased volumes related to a shift in product mix toward generic products and increased sales of products subject to profit-sharing arrangements.

Research and development expense decreased by $2.1 million in the third quarter of 2020 to $2.9 million compared with $5.0 million in the third quarter of 2019, primarily due to a decrease in expense related to the Cortrophin re-commercialization project. The Company currently anticipates that Cortrophin-related expenses in the fourth quarter of 2020 will be moderately higher than those of the third quarter, as we continue to focus on our sNDA resubmission efforts.

Selling, general and administrative expenses rose by $1.3 million in the third quarter of 2020 to $15.7 million compared to $14.4 million in the comparable quarter in 2019. The increase primarily reflects increased pharmacovigilance compliance costs in continued support of the expansion of our commercial portfolio, and increased legal, insurance and other professional fees.

Depreciation and amortization increased by $1.9 million in the third quarter of 2020 to $11.4 million compared to $9.5 million in the comparable quarter in 2019 due to amortization of the Abbreviated New Drug Applications ("ANDAs"), and marketing and distribution rights acquired in January 2020 from Amerigen and the ANDA acquired in July 2020.

Net income for the third quarter of 2020 was $0.4 million as compared to net income of $3.9 million in the prior year period. Diluted earnings per share for the three months ended September 30, 2020 was $0.04, compared to diluted earnings per share of $0.32 in the prior year period.

Adjusted non-GAAP diluted earnings per share was $0.97 in the third quarter of 2020 compared to adjusted non-GAAP diluted earnings per share of $1.23 in the prior year period.

For reconciliations of adjusted non-GAAP EBITDA and adjusted non-GAAP diluted earnings per share to the most directly comparable GAAP financial measure, please see Table 3 and Table 4, respectively.

Liquidity

As of September 30, 2020, the Company had $17.9 million in unrestricted cash and cash equivalents plus $83.7 million in net accounts receivable. The Company had $187.9 million in outstanding debt as of September 30, 2020.

Conference Call

As previously announced, ANI Pharmaceuticals management will host its third quarter 2020 conference call as follows:

Date Thursday, November 5, 2020

Time 10:30 a.m. ET

Toll free (U.S.) (866) 776-8875

Webcast (live and replay) www.anipharmaceuticals.com, under the "Investors"section

A replay of the conference call will be available within two hours of the call's completion and will remain accessible for one week by dialing (800) 585-8367 and entering access code 7454258.

Non-GAAP Financial Measures

Adjusted non-GAAP EBITDA

ANI's management considers adjusted non-GAAP EBITDA to be an important financial indicator of ANI's operating performance, providing investors and analysts with a useful measure of operating results unaffected by non-cash stock-based compensation and differences in capital structures, tax structures, capital investment cycles, ages of related assets, and compensation structures among otherwise comparable companies. Management uses adjusted non-GAAP EBITDA when analyzing Company performance.

Adjusted non-GAAP EBITDA is defined as net income, excluding tax expense or benefit, interest expense, (net), other expense, (net), depreciation, amortization, the excess of fair value over cost of acquired inventory, non-cash stock-based compensation expense, CEO transition expenses, expense from acquired in-process research and development, transaction and integration expenses, Cortrophin pre-launch charges, and certain other items that vary in frequency and impact on ANI's results of operations. Adjusted non-GAAP EBITDA should be considered in addition to, but not in lieu of, net income or loss reported under GAAP. A reconciliation of adjusted non-GAAP EBITDA to the most directly comparable GAAP financial measure is provided below.

Adjusted non-GAAP Net Income

ANI's management considers adjusted non-GAAP net income to be an important financial indicator of ANI's operating performance, providing investors and analysts with a useful measure of operating results unaffected by the excess of fair value over cost of acquired inventory sold, non-cash stock-based compensation, CEO transition expenses, non-cash interest expense, depreciation and amortization, Cortrophin pre-launch charges, acquired in-process research and development ("IPR&D") expense, transaction and integration expenses and certain other items that vary in frequency and impact on ANI's results of operations. Management uses adjusted non-GAAP net income when analyzing Company performance.

Adjusted non-GAAP net income is defined as net income, plus the excess of fair value over cost of acquired inventory sold, non-cash stock-based compensation expense, CEO transition expenses, transaction and integration expenses, non-cash interest expense, depreciation and amortization expense, expense from acquired in-process research and development, Cortrophin pre-launch charges and certain other items that vary in frequency and impact on ANI's results of operations, less the tax impact of these adjustments calculated using an estimated statutory tax rate, and tax benefit related to the ANI Canada transfer pricing agreement. Management will continually analyze this metric and may include additional adjustments in the calculation in order to provide further understanding of ANI's results. Adjusted non-GAAP net income should be considered in addition to, but not in lieu of, net income reported under GAAP. A reconciliation of adjusted non-GAAP net income to the most directly comparable GAAP financial measure is provided below.

Adjusted non-GAAP Diluted Earnings per Share

ANI's management considers adjusted non-GAAP diluted earnings per share to be an important financial indicator of ANI's operating performance, providing investors and analysts with a useful measure of operating results unaffected by the excess of fair value over cost of acquired inventory sold, non-cash stock-based compensation, CEO transition expenses, non-cash interest expense, depreciation and amortization, Cortrophin pre-launch charges, acquired IPR&D expense, transaction and integration expenses and certain other items that vary in frequency and impact on ANI's results of operations. Management uses adjusted non-GAAP diluted earnings per share when analyzing Company performance.

Adjusted non-GAAP diluted earnings per share is defined as adjusted non-GAAP net income, as defined above, divided by the diluted weighted average shares outstanding during the period, as adjusted for the dilutive effect of the convertible debt notes (in 2019), when applicable. Management will continually analyze this metric and may include additional adjustments in the calculation in order to provide further understanding of ANI's results. Adjusted non-GAAP diluted earnings per share should be considered in addition to, but not in lieu of, diluted earnings or loss per share reported under GAAP. A reconciliation of adjusted non-GAAP diluted earnings per share to the most directly comparable GAAP financial measure is provided below.

About ANI

ANI Pharmaceuticals, Inc. is an integrated specialty pharmaceutical company developing, manufacturing, and marketing branded and generic prescription pharmaceuticals. The Company's targeted areas of product development currently include narcotics, oncolytics (anti-cancers), hormones and steroids, and complex formulations involving extended release and combination products. For more information, please visit our website www.anipharmaceuticals.com.

Forward-Looking Statements

To the extent any statements made in this release relate to information that is not historical, these are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the Company's future operations, products, financial position, operating results and prospects, including plans for growth, the Company's pipeline or potential markets therefor, plans for existing ANDAs, timing for submission of a sNDA for Cortrophin Gel and commercialization plans, and other statements that are not historical in nature, particularly those that utilize terminology such as "anticipates," "will," "expects," "plans," "potential," "future," "believes," "intends," "continue," other words of similar meaning, derivations of such words and the use of future dates.

Uncertainties and risks may cause the Company's actual results to be materially different than those expressed in or implied by such forward-looking statements. Uncertainties and risks include, but are not limited to, the risk that the Company may face with respect to importing raw materials; the use of single source suppliers and the time it may take to validate and qualify another supplier, if necessary; increased competition and strategies employed by competitors; the ability to realize benefits anticipated from acquisitions; costs and regulatory requirements relating to contract manufacturing arrangements; delays or failure in obtaining product approvals from the U.S. Food and Drug Administration; general business and economic conditions, including the ongoing impact of the COVID-19 pandemic; market trends for our products; regulatory environment and changes; and regulatory and other approvals relating to product development and manufacturing.

More detailed information on these and additional factors that could affect the Company's actual results are described in the Company's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q. All forward-looking statements in this news release speak only as of the date of this news release and are based on the Company's current beliefs, assumptions, and expectations. Except as required by law, the Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Financial Tables Follow

ANI Pharmaceuticals, Inc. and Subsidiaries

Table 1: US GAAP Statement of Operations

(unaudited, in thousands, except per share amounts)

Three Months Ended Nine Months Ended September 30, September 30,

2020 2019 2020 2019

Net Revenues $ 52,979 $ 51,337 $ 151,223 $ 158,581

Operating ExpensesCost of sales (excl. 20,118 15,002 62,617 45,359 depreciation andamortization)Research and development 2,939 4,982 12,318 15,128

Selling, general, and 15,725 14,357 50,621 41,829 administrativeDepreciation and 11,358 9,473 33,739 35,048 amortizationCortrophin pre-launch 37 195 8,275 195 charges Total Operating Expenses 50,177 44,009 167,570 137,559

Operating Income/(Loss) 2,802 7,328 (16,347 ) 21,022

Other Expense, NetInterest expense, net (2,510 ) (3,336 ) (6,898 ) (10,096 )

Other expense, net (229 ) (33 ) (335 ) (117 )

Income/(Loss) Before 63 3,959 (23,580 ) 10,809 Benefit/(Provision) forIncome Taxes Benefit/(provision) for 371 (64 ) 4,667 120 income taxes Net Income/(Loss) $ 434 $ 3,895 $ (18,913 ) $ 10,929

Basic and Diluted Earnings/(Loss) Per Share:Basic Earnings/(Loss) Per $ 0.04 $ 0.32 $ (1.58 ) $ 0.91 ShareDiluted Earnings/(Loss) $ 0.04 $ 0.32 $ (1.58 ) $ 0.89 Per Share Basic Weighted-Average 11,991 11,879 11,953 11,826 Shares OutstandingDiluted Weighted-Average 12,003 12,085 11,953 12,060 Shares Outstanding ANI Pharmaceuticals, Inc. and Subsidiaries

Table 2: US GAAP Balance Sheets

(unaudited, in thousands)

September 30, 2020

December 31, 2019

Current AssetsCash and cash equivalents$

17,900

$

62,332

Accounts receivable, net83,745

72,129

Inventories, net59,195

48,163

Prepaid income taxes1,621

1,076

Prepaid expenses and other current assets3,358

3,995

Total Current Assets165,819

187,695

Property and equipment, net40,444

40,551

Restricted cash5,003

5,029

Deferred tax assets, net of deferred tax liabilities and valuation allowance48,130

38,326

Intangible assets, net198,620

180,388

Goodwill3,580

3,580

Other non-current assets985

1,220

Total Assets$

462,581

$

456,789

Current LiabilitiesCurrent debt, net of deferred financing costs$

12,785

$

9,941

Accounts payable13,460

14,606

Accrued expenses and other2,534

2,362

Accrued royalties6,088

5,084

Accrued compensation and related expenses5,993

3,736

Accrued government rebates11,678

8,901

Returned goods reserve23,250

16,595

Deferred revenue112

451

Total Current Liabilities75,900

61,676

Non-current debt, net of deferred financing costs and current component175,161

175,808

Derivatives and other non-current liabilities16,420

6,514

Total Liabilities267,481

243,998

Stockholders' EquityCommon stock1

1

Treasury stock(2,246

)

(723

)

Additional paid-in capital211,792

200,800

(Accumulated deficit)/retained earnings(1,337

)

17,584

Accumulated other comprehensive loss, net of tax(13,110

)

(4,871

)

Total Stockholders' Equity195,100

212,791

Total Liabilities and Stockholders' Equity$

462,581

$

456,789

ANI Pharmaceuticals, Inc. and Subsidiaries

Table 2: US GAAP Balance Sheets

(unaudited, in thousands)

September 30, December 31, 2020 2019

Current AssetsCash and cash equivalents $ 17,900 $ 62,332

Accounts receivable, net 83,745 72,129

Inventories, net 59,195 48,163

Prepaid income taxes 1,621 1,076

Prepaid expenses and other current assets 3,358 3,995

Total Current Assets 165,819 187,695

Property and equipment, net 40,444 40,551

Restricted cash 5,003 5,029

Deferred tax assets, net of deferred tax 48,130 38,326 liabilities and valuation allowanceIntangible assets, net 198,620 180,388

Goodwill 3,580 3,580

Other non-current assets 985 1,220

Total Assets $ 462,581 $ 456,789

Current LiabilitiesCurrent debt, net of deferred financing costs $ 12,785 $ 9,941

Accounts payable 13,460 14,606

Accrued expenses and other 2,534 2,362

Accrued royalties 6,088 5,084

Accrued compensation and related expenses 5,993 3,736

Accrued government rebates 11,678 8,901

Returned goods reserve 23,250 16,595

Deferred revenue 112 451

Total Current Liabilities 75,900 61,676

Non-current debt, net of deferred financing costs 175,161 175,808 and current componentDerivatives and other non-current liabilities 16,420 6,514

Total Liabilities 267,481 243,998

Stockholders' EquityCommon stock 1 1

Treasury stock (2,246 ) (723 )

Additional paid-in capital 211,792 200,800

(Accumulated deficit)/retained earnings (1,337 ) 17,584

Accumulated other comprehensive loss, net of tax (13,110 ) (4,871 )

Total Stockholders' Equity 195,100 212,791

Total Liabilities and Stockholders' Equity $ 462,581 $ 456,789

ANI Pharmaceuticals, Inc. and SubsidiariesTable 3: Adjusted non-GAAP EBITDA Calculation and US GAAP to Non-GAAP Reconciliation(unaudited, in thousands)Three Months Ended September 30,

Nine Months Ended September 30,

2020

2019

2020

2019

Net Income/(Loss)$

434

$

3,895

$

(18,913

)

$

10,929

Add/(Subtract):Interest expense, net2,510

3,336

6,898

10,096

Other expense, net229

33

335

117

Benefit/(provision) for income taxes(371

)

64

(4,667

)

(120

)

Depreciation and amortization11,358

9,473

33,739

35,048

Cortrophin pre-launch charges37

195

8,275

195

Expensed FDA approval milestone payment-

329

-

329

Stock-based compensation(1)2,383

2,470

7,078

6,773

CEO transition items(2)204

-

7,349

-

Cortrophin team restructuring-

-

401

-

Acquired IPR&D expense-

-

3,784

2,324

Excess of fair value over cost of acquired inventory111

-

4,183

-

Asset impairments(3)92

-

884

-

Charges related to market exits-

-

567

-

Transaction and integration expenses-

-

-

84

Adjusted non-GAAP EBITDA$

16,987

$

19,795

$

49,913

$

65,775

ANI Pharmaceuticals, Inc. and SubsidiariesTable 3: Adjusted non-GAAP EBITDA Calculation and US GAAP to Non-GAAPReconciliation(unaudited, in thousands) Three Months Ended Nine Months Ended September 30, September 30,

2020 2019 2020 2019

Net Income/(Loss) $ 434 $ 3,895 $ (18,913 ) $ 10,929

Add/(Subtract):Interest expense, net 2,510 3,336 6,898 10,096

Other expense, net 229 33 335 117

Benefit/(provision) for income (371 ) 64 (4,667 ) (120 )taxesDepreciation and amortization 11,358 9,473 33,739 35,048

Cortrophin pre-launch charges 37 195 8,275 195

Expensed FDA approval milestone - 329 - 329 paymentStock-based compensation^(1) 2,383 2,470 7,078 6,773

CEO transition items^(2) 204 - 7,349 -

Cortrophin team restructuring - - 401 -

Acquired IPR&D expense - - 3,784 2,324

Excess of fair value over cost 111 - 4,183 - of acquired inventoryAsset impairments^(3) 92 - 884 -

Charges related to market exits - - 567 -

Transaction and integration - - - 84 expensesAdjusted non-GAAP EBITDA $ 16,987 $ 19,795 $ 49,913 $ 65,775

(1) For the nine months ended September 30, 2020, Stock-based compensation excludes $3.4 million of stock-based compensation expense associated with the departure of our former President and CEO. This amount is included in this table as part of CEO transition items.(2) CEO transition items for the nine months ended September 30, 2020 is comprised of $3.4 million of stock-based compensation expense and $3.1 million of expense for salary continuation, bonus and other fringe benefits associated with the departure of our former President and CEO, as well as certain legal and recruiting costs related to the search for a permanent replacement.(3) For the nine months ended September 30, 2020, Asset impairments is comprised of finished goods inventory reserves for Bretylium and accounts receivable reserves due to customer bankruptcy, tempered by a modest recovery of previously reserved inventory related to market exits.^(1) For the nine months ended September 30, 2020, Stock-based compensationexcludes $3.4 million of stock-based compensation expense associated withthe departure of our former President and CEO. This amount is included inthis table as part of CEO transition items. ^(2) CEO transition items for the nine months ended September 30, 2020 iscomprised of $3.4 million of stock-based compensation expense and $3.1million of expense for salary continuation, bonus and other fringe benefitsassociated with the departure of our former President and CEO, as well ascertain legal and recruiting costs related to the search for a permanentreplacement. ^(3) For the nine months ended September 30, 2020, Asset impairments iscomprised of finished goods inventory reserves for Bretylium and accountsreceivable reserves due to customer bankruptcy, tempered by a modestrecovery of previously reserved inventory related to market exits.ANI Pharmaceuticals, Inc. and Subsidiaries

Table 4: Adjusted non-GAAP Net Income and Adjusted non-GAAP Diluted Earnings per Share Reconciliation

(unaudited, in thousands, except per share amounts)

Three Months Ended September 30,

Nine Months Ended September 30,

2020

2019

2020

2019

Net Income/(Loss)$

434

$

3,895

$

(18,913

)

$

10,929

Add/(Subtract):Non-cash interest expense565

1,871

1,222

5,525

Depreciation and amortization expense11,358

9,473

33,739

35,048

Cortrophin pre-launch charges37

195

8,275

195

Expensed FDA approval milestone payment-

329

-

329

Acquired IPR&D expense-

-

3,784

2,324

Stock-based compensation(1)2,383

2,470

7,078

6,773

CEO transition items(2)204

-

7,349

-

Cortrophin team restructuring-

-

401

-

Asset impairments(3)92

-

884

-

Excess of fair value over cost of acquired inventory111

-

4,183

-

Charges related to market exits-

-

567

-

Transaction and integration expenses-

-

-

84

Less:Tax impact of adjustments(3,540

)

(3,441

)

(16,196

)

(12,067

)

Discrete tax benefit related to ANI Canada transfer pricing agreement-

-

-

(1,653

)

Adjusted Non-GAAP Net Income$

11,644

$

14,792

$

32,373

$

47,487

Diluted Weighted-AverageShares Outstanding12,003

12,085

11,953

12,060

Less: Dilutive Effect of Notes-

(78

)

-

(128

)

Adjusted Diluted Weighted-AverageShares Outstanding12,003

12,007

11,977

11,932

Adjusted Non-GAAPDiluted Earnings per Share$

0.97

$

1.23

$

2.70

$

3.98

ANI Pharmaceuticals, Inc. and Subsidiaries

Table 4: Adjusted non-GAAP Net Income and Adjusted non-GAAP Diluted Earningsper Share Reconciliation

(unaudited, in thousands, except per share amounts)

Three Months Ended Nine Months Ended September 30, September 30,

2020 2019 2020 2019

Net Income/(Loss) $ 434 $ 3,895 $ (18,913 ) $ 10,929

Add/(Subtract):Non-cash interest expense 565 1,871 1,222 5,525

Depreciation and 11,358 9,473 33,739 35,048 amortization expenseCortrophin pre-launch 37 195 8,275 195 chargesExpensed FDA approval - 329 - 329 milestone paymentAcquired IPR&D expense - - 3,784 2,324

Stock-based compensation^ 2,383 2,470 7,078 6,773 (1)CEO transition items^(2) 204 - 7,349 -

Cortrophin team - - 401 - restructuringAsset impairments^(3) 92 - 884 -

Excess of fair value over 111 - 4,183 - cost of acquired inventoryCharges related to market - - 567 - exitsTransaction and - - - 84 integration expensesLess:Tax impact of adjustments (3,540 ) (3,441 ) (16,196 ) (12,067 )

Discrete tax benefit - - - (1,653 )related to ANI Canadatransfer pricing agreement Adjusted Non-GAAP Net $ 11,644 $ 14,792 $ 32,373 $ 47,487 Income Diluted Weighted-AverageShares Outstanding 12,003 12,085 11,953 12,060

Less: Dilutive Effect of - (78 ) - (128 )NotesAdjusted DilutedWeighted-AverageShares Outstanding 12,003 12,007 11,977 11,932

Adjusted Non-GAAPDiluted Earnings per Share $ 0.97 $ 1.23 $ 2.70 $ 3.98

(1) For the nine months ended September 30, 2020, Stock-based compensation excludes $3.4 million of stock-based compensation expense associated with the departure of our former President and CEO. This amount is included in this table as part of CEO transition items.(2) CEO transition items for the nine months ended September 30, 2020 is comprised of $3.4 million of stock-based compensation expense and $3.1 million of expense for salary continuation, bonus and other fringe benefits associated with the departure of our former President and CEO, as well as certain legal and recruiting costs related to the search for a permanent replacement.(3) For the nine months ended September 30, 2020, Asset impairments is comprised of finished goods inventory reserves for Bretylium and accounts receivable reserves due to customer bankruptcy, tempered by a modest recovery of previously reserved inventory related to market exits. View source version on businesswire.com: https://www.businesswire.com/news/home/20201105005273/en/

CONTACT: Investor Relations: Lisa M. Wilson, In-Site Communications, Inc. T: 212-452-2793 E: lwilson@insitecony.com