GlobeNewswire Inc | May 6, 2021 08:00AM EDT

May 06, 2021

Total Company Net Revenue of $41 Million, an Increase of 7% versus Prior YearNet Income of $5.2 Million, EBITDA Margin of 22% and Operating Cash Generation of $11 MillionConference Call and Webcast Scheduled for 8:30 AM EST Today

RALEIGH, N.C., May 06, 2021 (GLOBE NEWSWIRE) -- BioDelivery Sciences International, Inc.(NASDAQ: BDSI), a growing specialty pharmaceutical company dedicated to patients living with serious and complex chronic conditions, today reported strong financial results for the first quarter ended March 31, 2021, including the following operational and performance highlights.

Key Business Highlights

-- Total Company net revenue for the first quarter increased by 7% versus the prior year period to $41.0 million.This growth was driven by BELBUCA netsales of $36.4 million, which increased 9%, and Symproic net sales of $4.4 million, which increased 5%. -- BELBUCA continued to deliver an all-time high quarterly market share, despite pandemic challenges and the impact of winter storm Uri. Total BELBUCA prescriptions were approximately 113,000 during the first quarter, representing year-over-year prescription volume growth of 9%. -- Total Symproic prescriptions were approximately 17,000 in the first quarter, consistent with prescriptions for the prior year period. -- Continued to achieve strong profitability, delivering $5.2 million of GAAP Net Income and an attractive 22% EBITDA margin in the first quarter of 2021. -- The Company repurchased 1.6 million shares in the quarter under its share buyback program, at an average price of $3.87 per share.

We again delivered solid top and bottom-line growth in a challenging quarter against the backdrop of the pandemic and weather-related disruptions, resulting in 22% EBITDA margin and $11 million operating cash flow generation, stated Jeff Bailey, CEO of BDSI. Our performance highlights the strength of our commercial team and the persistent market demand for our highly differentiated products. We expect continued success as the selling environment improves throughout the year, including increases of in-office patient visits and more face-to-face interactions with health care providers by our sales representatives.

First Quarter 2021 Financial Results

Total Company Net Revenue for the first quarter of 2021 was $41.0 million, an increase of 7% compared to $38.3 million in the first quarter of 2020. Total product net revenue, including sales of BELBUCA and Symproic, grew 8% year over year. Severe winter weather conditions, especially in the South-Central region where the Company has strong market presence, affected patients access to their physicians and pharmacies. Additionally, the severe weather delayed shipments of the Companys products to pharmacy distribution centers of the major wholesalers.

BELBUCA Net Sales for the first quarter of 2021 were $36.4 million, an increase of 9% compared to $33.5 million in the first quarter of 2020. As we typically experience each year, BELBUCA gross to net deductions were lower in the first quarter, largely due to the Medicare coverage gap impact.

Symproic Net Sales for the first quarter were $4.4 million, an increase of 5% compared to $4.2 million in the first quarter of 2020. Symproic net sales benefited from reduced gross to net deductions in the first quarter due to the typical decreases seen for Medicare coverage gap, as well as updates to our gross to net deductions related to channel estimates.

Total Operating Expenses for the first quarter of 2021 were $27.8 million, compared to $26.7 million in the first quarter of 2020. The increase in spending as compared to fourth quarter of 2020 was driven by increased investments in sales and marketing and $3.0 million higher legal spend in the quarter, primarily due to costs associated with the Paragraph IV patent litigation.

GAAP Net Incomefor the first quarter of 2021 was $5.2 million, or $0.05 per share, compared to GAAP net income of $5.0 million, or $0.05 per share, in the first quarter of 2020.

EBITDA for the first quarter of 2021 was $9.2 million, or 22% of net sales, compared to $7.8 million or 20% of net sales, in the first quarter of 2020.

Non-GAAP Net Income for the first quarter of 2021 was $8.5 million and reflects GAAP net income excluding stock-based compensation and non-cash amortization of intangible assets as compared to non-GAAP net income of $8.3 million in the first quarter of 2020, excluding the same items

Cash Position As of March 31, 2021, cash and cash equivalents were approximately $116.4 million, compared to $111.6 million as of December 31, 2020. The total cash flow generation over the quarter of $4.9 million includes continued strong operating cash generation of $11.1 million, partially offset by $6.1 million used to repurchase shares in the quarter.

Financial Guidance

The Company reiterates its 2021 financial guidance, with full year 2021 total Company net sales of$170 - $180 million, including full year 2021 BELBUCA net sales of$155 - $165 million. Total operating expenses are expected to be in the range of $115 - $120 million, as the Company continues to invest to support the growth of its brands, and EBITDA is expected to be in the range of $40 - $50 million in 2021. The Company expects to continue delivering positive operating cash flow throughout 2021.

Our confidence in the continued growth of our brands and the profitability of our business remains unchanged. This is demonstrated by our continuing investments behind our portfolio, together with the share repurchase program which is underway. We remain on track to drive long-term shareholder value, and are actively considering potential business development opportunities, stated Jeff Bailey.

Conference Call & Webcast Details

BioDelivery Scienceswill host a conference call and webcast today,May 6, 2021, at8:30 a.m. ETto present first quarter 2021 results and to provide a business update. Dial-in details are as follows:

Date: Thursday, May 6, 2021Time: 8:30 AM Eastern TimeDomestic: 877-407-0789International: 201-689-8562Conference ID: 13718097Webcast: http://public.viavid.com/index.php?id=144116

ABOUTBIODELIVERY SCIENCES INTERNATIONAL, INC.

BioDelivery Sciences International, Inc. (NASDAQ: BDSI) is a commercial-stage specialty pharmaceutical company dedicated to patients living with chronic conditions. BDSI has built a portfolio of products that includes utilizing its novel and proprietary BioErodible MucoAdhesive (BEMA) technology to develop and commercialize, either on its own or in partnership with third parties, new applications of proven therapies aimed at addressing important unmet medical needs. BDSI's marketed products address serious and debilitating conditions, including chronic pain and opioid-induced constipation.

CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS

This press release and any statements of employees, representatives, and partners ofBioDelivery Sciences International, Inc.(BDSI) related thereto contain, or may contain, among other things, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve significant risks and uncertainties. Such statements may include, without limitation, statements with respect to BDSIs plans, objectives, projections, expectations and intentions and other statements identified by words such as projects, may, will, could, would, should, believes, expects, anticipates, estimates, intends, plans, potential or similar expressions. These statements are based upon the current beliefs and expectations of BDSIs management and are subject to significant risks and uncertainties, including those detailed in BDSIs filings with theSecurities and Exchange Commission. Actual results (including, without limitation, the expectations for total company net sales, BELBUCA net sales, operating expenses, EBITDA and operating cash flows in 2021) may differ materially from those set forth or implied in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond BDSIs control) including the risk that the current coronavirus pandemic impacts on our supply chain, commercial partners, patients and their physicians and the healthcare facilities in which they work, and our personnel are greater than we anticipate, as well as those set forth in our 2020 annual report on Form 10-K filed with theUS Securities and Exchange Commissionand subsequent filings. BDSI undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future presentations or otherwise, except as required by applicable law.

Non-GAAP Financial Measures

This press release includes information about certain financial measures that are not prepared in accordance with generally accepted accounting principles in the United States, or GAAP, including non-GAAP net income and EBITDA. These non-GAAP measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies.

Non-GAAP net income adjusts for one-time and non-cash charges by excluding the following from GAAP net income: stock-based compensation expense and non-cash amortization of intangible assets.

EBITDA excludes net interest, including both interest expenses and interest income, provision for (benefit from) income taxes, depreciation, and amortization.

The Company's management and board of directors utilize these non-GAAP financial measures to evaluate the Company's performance. The Company provides these non-GAAP measures of the Company's performance to investors because management believes that these non-GAAP financial measures, when viewed with the Company's results under GAAP and the accompanying reconciliations, are useful in identifying underlying trends in ongoing operations. However, non-GAAP net incomeand EBITDA are not measures of financial performance under GAAP and, accordingly, should not be considered as alternatives to GAAP measures as indicators of operating performance. Further, non-GAAP net incomeand EBITDA should not be considered measures of our liquidity.

A reconciliation of certain GAAP to non-GAAP financial measures has been provided in the tables included in this press release.

2021BioDelivery Sciences International, Inc. All rights reserved.

Contact:

Bob YedidLifeSci Advisors646-597-6989Bob@LifeSciAdvisors.com

BIODELIVERY SCIENCES INTERNATIONAL, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(U.S. DOLLARS, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)(Unaudited)

March 31, December 31, 2021 2020ASSETS Current assets: Cash and cash equivalents $ 116,436 $ 111,584 Accounts receivable, net 48,294 48,150 Inventory, net 16,968 17,443 Prepaid expenses and other current assets 4,449 5,208 Total current assets 186,147 182,385 Property and equipment, net 1,626 1,418 Goodwill 2,715 2,715 License and distribution rights, net 51,642 53,376 Total assets $ 242,130 $ 239,894 LIABILITIES AND STOCKHOLDERS? EQUITY Current liabilities: Accounts payable and accrued liabilities $ 54,584 $ 52,995 Total current liabilities 54,584 52,995 Notes payable, net 78,538 78,452 Other long-term liabilities 154 213 Total liabilities 133,276 131,660 Commitments and contingencies Stockholders? equity: Preferred Stock, 5,000,000 shares authorized;Series B Non-Voting Convertible PreferredStock, $0.001 par value, 443 shares outstanding ? ? at March31, 2021 and December31, 2020,respectively.Common Stock, $.001 par value; 235,000,000shares authorized at March31, 2021 andDecember31, 2020, respectively; 101,702,234 104 104 and 101,417,441 shares issued;100,061,096 and101,354,447 shares outstanding at March31,2021 and December31, 2020, respectively.Additional paid-in capital 450,794 449,264 Treasury stock, at cost, 1,641,138 and 62,994shares as of March31, 2021 and December 31, (6,399 ) (252 ) 2020, respectivelyAccumulated deficit (335,645 ) (340,882 ) Total stockholders? equity 108,854 108,234 Total liabilities and stockholders? equity $ 242,130 $ 239,894

BIODELIVERY SCIENCES INTERNATIONAL, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(U.S. DOLLARS, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)(Unaudited)

Three months ended March 31, 2021 2020Revenues: Product sales, net $ 40,804 $ 37,715 Product royalty revenues 216 563 Total Revenues: 41,020 38,278 Cost of sales 5,821 5,560 Expenses: Selling, general and administrative 27,761 26,736 Total Expenses: 27,761 26,736 Income from operations 7,438 5,982 Interest expense, net (1,979 ) (1,293 ) Other expense, net ? (1 ) Income before income taxes $ 5,459 $ 4,688 Income tax provision (222 ) 278 Net income attributable to common $ 5,237 $ 4,966 stockholdersBasic Weighted average common stock shares 100,988,245 97,118,267 outstandingBasic earnings per share $ 0.05 $ 0.05 Diluted Weighted average common stock shares 105,396,793 106,965,762 outstandingDiluted earnings per share $ 0.05 $ 0.05

BIODELIVERY SCIENCES INTERNATIONAL, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(U.S. DOLLARS, IN THOUSANDS) (Unaudited)

Three months ended March 31, 2021 2020Operating activities: Net income $ 5,237 $ 4,966 Adjustments to reconcile net income to net cash flows from operating activitiesDepreciation 19 21 Accretion of debt discount and loan costs 86 65 Amortization of intangible assets 1,735 1,781 Provision for inventory obsolescence 369 405 Stock-based compensation expense 1,490 1,520 Changes in assets and liabilities: Accounts receivable (144 ) (6,324 ) Inventories 106 (4,096 ) Prepaid expenses and other assets 602 1,169 Accounts payable and accrued liabilities 1,597 6,920 Taxes payable ? (40 ) Net cash flows provided by operating activities 11,097 6,387 Investing activities: Purchase of equipment (296 ) ? Net cash flows used in investing activities (296 ) ? Financing activities: Proceeds from exercise of stock options 198 338 Payment on share repurchase (6,147 ) ? Net cash flows (used in) provided by financing (5,949 ) 338 activitiesNet change in cash and cash equivalents 4,852 6,725 Cash and cash equivalents at beginning of period 111,584 63,888 Cash and cash equivalents at end of year $ 116,436 $ 70,613

BIODELIVERY SCIENCES INTERNATIONAL, INC. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP METRICS(U.S. DOLLARS, IN THOUSANDS)(Unaudited)

Three Months Ended,Reconciliation of GAAP net March 31, December 31, March 31, 2020income to EBITDA (non-GAAP) 2021 2020GAAP net income $ 5,237 $ 10,197 4,966 Add back/(subtract): Income tax provision 222 233 (278 ) Net interest expense 1,979 2,022 1,294 Depreciation and amortization 1,753 1,806 1,802 EBITDA $ 9,191 $ 14,258 $ 7,784 Reconciliation of GAAP net income to Non-GAAP net incomeGAAP net income 5,237 10,197 4,966 Non-GAAP adjustments: Stock-based compensation 1,490 1,750 1,520 expenseAmortization of intangible 1,735 1,733 1,781 assetsNon-GAAP net income $ 8,462 $ 13,680 $ 8,267