Business Wire | Nov 2, 2020 06:47AM EST

Eagle Pharmaceuticals Reports Third Quarter 2020 Results

Nov. 02, 2020

WOODCLIFF LAKE, N.J.--(BUSINESS WIRE)--Nov. 02, 2020--Eagle Pharmaceuticals, Inc. (Nasdaq: EGRX) ("Eagle" or the "Company") today announced financial results for the three and nine months ended September 30, 2020.

Business and Recent Highlights:

* Received formal notification from FDA granting Priority Review for the Company's abbreviated new drug application ("ANDA") filed for vasopressin. A trial date of January 11, 2021 has been set; * Added four experienced pharmaceutical industry executives to clinical, formulations and commercial leadership teams as follows: Judith ("Judi") Ng-Cashin, M.D., is EVP and Chief Medical Officer; John Kimmet, is EVP, Oncology and Acute Care Marketing; Valentin R. Curt, M.D., is SVP, Clinical Drug Development; and Gaozhong Zhu, Ph.D., is SVP, Pharmaceutical Development; * Promoted Brian Cahill as the Company's new Chief Financial Officer. Mr. Cahill has served as Eagle's VP, Finance for the last four years and brings more than 20 years of public company and public accounting experience to the Company; * Received Board approval for a $25.0 million accelerated share repurchase transaction with JPMorgan as part of the Company's existing $160.0 million share repurchase program. To date, Eagle has purchased $205.0 million, or approximately 22% of the Company's issued shares, at approximately $55.00 per share; * Announced the publication of preclinical research on dantrolene sodium in the peer-reviewed Journal of Alzheimer's Disease. The academic-based study, conducted by Eagle's collaboration partner, the University of Pennsylvania, demonstrated dantrolene sodium improved memory and cognition in a mouse model of Alzheimer's disease; * Initiating dose ranging studies in another animal model using intravenous administration of RYANODEX(r) for the treatment of brain damage secondary to nerve agent exposure and will include an arm using an intramuscular formulation of EA-111. Eagle believes that the preliminary results will allow the Company to update its Special Protocol Assessment with the FDA; and * Despite the ongoing COVID-19 pandemic, the Company has not experienced significant disruptions to its supply chain to date, and believes it has sufficient supply chain inventory to continue manufacturing and to provide product without interruption consistent with its current business plans and projections; the Company has experienced variable financial impacts and has also experienced delays in the timing of certain of its pre-clinical programs and delays in its ongoing litigation matters due to the COVID-19 pandemic; the Company continues to monitor the ongoing pandemic and evaluate and evolve its business plans and response strategy thereto.

Oncology Highlights:

* Held a positive Type C meeting with FDA on fulvestrant and is in the process of gaining agreement on the details of the formal protocol for the clinical study; * Japanese licensing partner, SymBio, received regulatory approval for TREAKISYM ready-to-dilute ("RTD") (250 ml) liquid formulation from the Pharmaceuticals and Medical Devices Agency in Japan. The approval covers all currently approved TREAKISYM indications (low-grade non-Hodgkin's lymphoma, mantle cell lymphoma, and chronic lymphocytic leukemia) and triggered a $5.0 million milestone payment to Eagle. SymBio's conversion of its current lyophilized formulation of TREAKISYM to Eagle's RTD liquid formulation and commercial launch are expected in January 2021; * Centers for Medicare & Medicaid Services established unique Healthcare Common Procedure Coding System code, or J-code, for PEMFEXY(tm) (Pemetrexed for Injection, 10 mg), a branded alternative to ALIMTA(r) effective October 1, 2020; * Granted a supplement approval by FDA for 500mg multiple-dose vial of PEMFEXY. The Company has initial market entry (equivalent to approximately a three-week supply of current ALIMTA utilization) on February 1, 2022, and a subsequent uncapped entry on April 1, 2022; and * The Company's strategic collaboration partner, Tyme Technologies, Inc. ("Tyme"), announced that FDA granted Orphan Drug Designation for its lead product candidate, SM-88, a treatment for patients with pancreatic cancer.

Third Quarter 2020 Financial Highlights

* Total revenue for Q3 2020 was $49.9 million, compared to $41.1 million in Q3 2019, primarily reflecting increased product sales of BELRAPZO(r) and RYANODEX, as well as the $5.0 million milestone from SymBio, partially offset by lower product sales of BENDEKA. * Net income for Q3 2020 was $7.1 million, or $0.52 per basic and $0.51 per diluted share, compared to net loss for Q3 2019 of $2.4 million, or ($0.17) per basic and diluted share. * Adjusted non-GAAP net income for Q3 2020 was $16.1 million, or $1.19 per basic and $1.17 per diluted share, compared to adjusted non-GAAP net income for Q3 2019 of $3.7 million, or $0.27 per basic and $0.26 per diluted share. * Cash and cash equivalents were $89.7 million, net accounts receivable was $52.2 million, and debt was $36.0 million as of September 30, 2020.

"Our strong third-quarter results demonstrate the efficiency of our business model as we continue to reinvest in our company. This momentum is further supported by multiple near-term product opportunities we are advancing, including vasopressin, fulvestrant, RYANODEX for several indications and PEMFEXY, along with our key partnerships with SymBio for bendamustine and Tyme for pancreatic cancer and other oncology indications. We are also excited to welcome a talented group of pharmaceutical executives to the Eagle team and look forward to their contributions in support of our promising lineup of products and anticipated upcoming launches. The next 12-18 months look to be an active period for Eagle, and I am optimistic about our prospects going forward," stated Scott Tarriff, Chief Executive Officer of Eagle Pharmaceuticals.

Third Quarter 2020 Financial Results

Total revenue for Q3 2020 was $49.9 million, as compared to $41.1 million for Q3 2019.

Q3 2020 BELRAPZO product sales were $8.7 million, compared to $3.4 million in Q3 2019.

Q3 2020 RYANODEX product sales were $4.2 million, compared to $2.6 million in Q3 2019.

Royalty revenue was $27.6 million in the third quarter of 2020, compared to $26.5 million in the third quarter of 2019. BENDEKA royalties were $27.6 million in the third quarter of 2020, compared to $26.2 million in the third quarter of 2019. A summary of total revenue is outlined below:

Three Months Ended September 30,

2020 2019

(unaudited) (unaudited)

Revenue (in thousands):

Product sales $17,317 $14,659

Royalty revenue 27,611 26,488

License and other revenue 5,000 -

Total revenue $49,928 $41,147

Gross Margin was 76% during the third quarter of 2020, as compared to 64% in the third quarter of 2019. The expansion in gross margin in the third quarter of 2020 was driven by an increase in RYANODEX sales, lower BENDEKA product sales in the period to our marketing partner, on which Eagle earns no profit, the increase in BENDEKA royalty revenue, and the $5.0 million milestone payment from SymBio.

R&D expense was $4.8 million for the third quarter of 2020, compared to $10.2 million in the third quarter of 2019. The decrease primarily resulted from lower spending on vasopressin and RYANODEX for the treatment of exertional heat stroke, as well as lower stock-based compensation expense. Excluding stock-based compensation and other non-cash and non-recurring items, R&D expense during the third quarter of 2020 was $5.3 million.

SG&A expense in the third quarter of 2020 decreased to $17.7 million compared to $18.5 million in the third quarter of 2019, primarily due to decreases in travel and entertainment expenses, trade show costs, and external legal expenses. Excluding stock-based compensation and other non-cash and non-recurring items, third quarter 2020 SG&A expense was $11.9 million.

Net income for the third quarter of 2020 was $7.1 million, or $0.52 per basic and $0.51 per diluted share, compared to net loss of $2.4 million, or ($0.17) per basic and diluted share, in the third quarter of 2019.

Adjusted non-GAAP net income for the third quarter of 2020 was $16.1 million, or $1.19 per basic and $1.17 per diluted share, compared to adjusted non-GAAP net income of $3.7 million or $0.27 per basic and $0.26 per diluted share in the third quarter of 2019. For a full reconciliation of adjusted non-GAAP net income to the most comparable GAAP financial measures, please see the tables at the end of this press release.

2020 Expense Guidance

* R&D expense in 2020, on a non-GAAP basis, is expected to be $40-$44 million, as compared to $31 million in 2019.

* SG&A spend in 2020, on a non-GAAP basis, is expected to be $61-$64 million, as compared to $56 million in 2019.

The guidance provided in this section represents forward-looking information, and actual results may vary. Please see the risks and assumptions referred to in the Forward-Looking Statements section of this press release.

Liquidity

As of September 30, 2020, the Company had $89.7 million in cash and cash equivalents plus $52.2 million in net accounts receivable, $34.3 million of which was due from Teva. The Company had $36.0 million in outstanding debt. Therefore, as of September 30, 2020, the Company had net cash plus receivables of $105.9 million.

In the third quarter of 2020, the Company repurchased $28.0 million of its common stock as part of the Company's $160.0 million share repurchase program. From August 2016 through September 30, 2020, the Company repurchased $205.0 million of its common stock.

Conference Call

As previously announced, Eagle management will host its Q3 2020 conference call as follows:

Date Monday, November 2, 2020

Time 8:30 A.M. ET

Toll free (U.S.) 866-342-8591

International 203-518-9713

Webcast (live and www.eagleus.com, under the "Investor + News" replay) section

Participants should dial in 15 minutes prior to the start of the call to ensure timely access.

A replay of the conference call will be available for one week after the call's completion by dialing 800-934-3336 (US) or 402-220-1148 (International) and entering conference call ID EGRXQ320. The webcast will be archived for 30 days at the aforementioned URL.

About Eagle Pharmaceuticals, Inc.

Eagle is a fully integrated pharmaceutical company with research and development, clinical, manufacturing and commercial expertise. Eagle is committed to developing innovative medicines that result in meaningful improvements in patients' lives. Eagle's commercialized products include RYANODEX(r), BENDEKA(r), BELRAPZO(r), and its oncology and CNS/metabolic critical care pipeline includes product candidates with the potential to address underserved therapeutic areas across multiple disease states. Additional information is available on Eagle's website at www.eagleus.com.

Forward-Looking Statements

This press release contains forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and other securities laws. Forward-looking statements are statements that are not historical facts. Words and phrases such as "anticipated," "forward," "will," "would," "may," "remain," "potential," "prepare," "expected," "believe," "plan," "near future," "belief," "guidance," and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements regarding future events such as: the Company's expectations regarding the current and anticipated impact of the ongoing COVID-19 pandemic on the Company's business and operations, including sales, marketing, manufacturing and supply chain interruptions; the number and timing of potential product launches, development initiatives and new indications for RYANODEX, including for the treatment of brain damage secondary to Nerve Agent exposure and ability to update its Special Protocol Assessment with the FDA; the Company's clinical development plan for its fulvestrant product candidate, EA-114, including potential approval of its submitted ANDA for vasopressin, as well as the development efforts for the other product candidates in its portfolio; the timing of the Company's PEMFEXY and vasopressin launches, if ever; the period of market exclusivity for vasopressin; the success of the Company's collaborations with its strategic partners; the Company's expense guidance for fiscal year 2020; the Company's expectations with respect to near-term product opportunities and commercial launches and the ability of the leadership team to support the Company's growth; statements regarding the efficiency and strength of the Company's business model; the Company's ability to deliver value in 2020 and over the long term; and the Company's plans and ability to advance the products in its pipeline. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the Company's control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Such risks and uncertainties include, but are not limited to: the impacts of the ongoing COVID-19 pandemic, including disruption or impact in the sales of the Company's marketed products, interruptions or other adverse effects to clinical trials, delays in regulatory review, manufacturing and supply chain interruptions, adverse effects on healthcare systems, disruption in the operations of the Company's third party partners and disruption of the global economy, and the overall impact of the COVID-19 pandemic on the Company's business, financial condition and results of operations; risks that the Company's business, financial condition and results of operations will be impacted by the continued spread of COVID-19 in the geographies where the Company's third-party partners operate; whether the Company will incur unforeseen expenses or liabilities or other market factors; whether the Company will successfully implement its development plan for its fulvestrant product candidate, EA-114, or other product candidates; delay in or failure to obtain regulatory approval of the Company's product candidates; whether the Company can successfully market and commercialize its product candidates, including RYANODEX, BENDEKA and BELRAPZO; the success of the Company's relationships with its partners, including the University of Pennsylvania, Teva, Tyme and SymBio and the parties' ability to work effectively together; the availability and pricing of third party sourced products and materials; the outcome of litigation involving any of our products or that may have an impact on any of our products; successful compliance with the FDA and other governmental regulations applicable to product approvals, manufacturing facilities, products and/or businesses; general economic conditions, including the potential adverse effects of public health issues, including the COVID-19 pandemic, on economic activity and the performance of the financial markets generally; the strength and enforceability of the Company's intellectual property rights or the rights of third parties; competition from other pharmaceutical and biotechnology companies and the potential for competition from generic entrants into the market; the risks inherent in the early stages of drug development and in conducting clinical trials; and those risks and uncertainties identified in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities and Exchange Commission (the "SEC") on March 2, 2020 as updated by its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020, filed with the SEC on May 11, 2020 and August 10, 2020, respectively, and its other subsequent filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and the Company does not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events, except as required by law.

Non-GAAP Financial Performance Measures

In addition to financial information prepared in accordance with U.S. GAAP, this press release also contains adjusted non-GAAP net income and adjusted non-GAAP earnings per share attributable to Eagle. The Company believes these measures provide investors and management with supplemental information relating to operating performance and trends that facilitate comparisons between periods and with respect to projected information.

Adjusted non-GAAP net income excludes amortization expense, stock-based compensation expense, depreciation expense, expense related to collaboration with Tyme, severance, non-cash interest expense, fair value adjustments on equity investment, fair value adjustments on unsettled accelerated share repurchase agreement and the tax effect of these adjustments. The Company believes these non-GAAP financial measures help indicate underlying trends in the Company's business and are important in comparing current results with prior period results and understanding projected operating performance. Non-GAAP financial measures provide the Company and its investors with an indication of the Company's baseline performance before items that are considered by the Company not to be reflective of the Company's ongoing results. See the attached Reconciliation of GAAP to Adjusted Non-GAAP Net Income and Adjusted Non-GAAP Earnings per Share and Reconciliation of GAAP to Adjusted Non-GAAP EBITDA for details of the amounts excluded and included to arrive at adjusted non-GAAP net income, adjusted non-GAAP earnings per share amounts, and adjusted non-GAAP EBITDA amounts, respectively.

These adjusted measures are non-GAAP and should be considered in addition to, but not as a substitute for, the information prepared in accordance with U.S. GAAP. The Company strongly encourages investors to review its consolidated financial statements and publicly-filed reports in their entirety and cautions investors that the non-GAAP measures used by the Company may differ from similar measures used by other companies, even when similar terms are used to identify such measures.

-- Financial tables follow -

EAGLE PHARMACEUTICALS, INC.CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)(In thousands, except share amounts) September December 31, 30, 2020 2019ASSETSCurrent assets:Cash and cash equivalents $ 89,681 $ 109,775

Accounts receivable, net 52,199 48,004

Inventories 6,586 6,566

Prepaid expenses and other current assets 15,330 15,104

Total current assets 163,796 179,449

Property and equipment, net 2,123 2,202

Intangible assets, net 13,584 15,583

Goodwill 39,743 39,743

Deferred tax asset, net 15,340 13,669

Other assets 13,575 3,908

Total assets $ 248,161 $ 254,554

LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable $ 13,068 $ 5,462

Accrued expenses and other liabilities 24,445 28,361

Current portion of long-term debt 8,000 5,000

Total current liabilities 45,513 38,823

Other long-term liabilities 2,844 3,000

Long-term debt, less current portion 27,017 33,557

Total liabilities 75,374 75,380

Commitments and ContingenciesStockholders' equity:Preferred stock, 1,500,000 shares authorized and no - - shares issued or outstanding as of September 30,2020 and December 31, 2019Common stock, $0.001 par value; 50,000,000 sharesauthorized; 16,624,681 and 16,537,846 shares issued 17 17 as of September 30, 2020 and December 31, 2019,respectivelyAdditional paid in capital 296,198 278,518

Retained earnings 76,432 72,500

Treasury stock, at cost, 3,594,551 and 2,907,687 (199,860 ) (171,861 )shares as of September 30, 2020 and December 31,2019, respectivelyTotal stockholders' equity 172,787 179,174

Total liabilities and stockholders' equity $ 248,161 $ 254,554

EAGLE PHARMACEUTICALS, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDTED)(In thousands, except share and per share amounts)Three Months Ended September 30,Nine Months Ended September 30,2020

2019

2020

2019

Revenue:Product sales$

17,317

$

14,659

$

49,387

$

58,568

Royalty revenue27,611

26,488

83,499

80,066

License and other revenue5,000

-

5,000

9,000

Total revenue49,928

41,147

137,886

147,634

Operating expenses:Cost of product sales8,726

12,137

23,804

39,866

Cost of royalty revenue3,260

2,785

9,120

9,440

Research and development4,828

10,172

21,390

25,504

Selling, general and administrative17,697

18,537

60,411

53,906

Total operating expenses34,511

43,631

114,725

128,716

Income (loss) from operations15,417

(2,484

)

23,161

18,918

Interest income46

570

542

1,701

Interest expense(489

)

(628

)

(2,164

)

(1,979

)

Other expense(6,049

)

-

(10,249

)

-

Total other expense, net(6,492

)

(58

)

(11,871

)

(278

)

Income (loss) before income tax (provision) benefit8,925

(2,542

)

11,290

18,640

Income tax (provision) benefit(1,866

)

152

(7,358

)

(5,332

)

Net Income (Loss)$

7,059

$

(2,390

)

$

3,932

$

13,308

Earnings (Loss) per share attributable to common stockholders:Basic$

0.52

$

(0.17

)

$

0.29

$

0.96

Diluted$

0.51

$

(0.17

)

$

0.28

$

0.94

Weighted average number of common shares outstanding:Basic13,531,372

13,668,091

13,620,981

13,791,071

Diluted13,786,803

13,668,091

13,917,800

14,147,658

EAGLE PHARMACEUTICALS, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDTED)(In thousands, except share and per share amounts) Three Months Ended September Nine Months Ended September 30, 30, 2020 2019 2020 2019

Revenue:Product sales $ 17,317 $ 14,659 $ 49,387 $ 58,568

Royalty revenue 27,611 26,488 83,499 80,066

License and 5,000 - 5,000 9,000 other revenueTotal revenue 49,928 41,147 137,886 147,634

Operatingexpenses:Cost of product 8,726 12,137 23,804 39,866 salesCost of royalty 3,260 2,785 9,120 9,440 revenueResearch and 4,828 10,172 21,390 25,504 developmentSelling, general 17,697 18,537 60,411 53,906 andadministrativeTotal operating 34,511 43,631 114,725 128,716 expensesIncome (loss) 15,417 (2,484 ) 23,161 18,918 from operationsInterest income 46 570 542 1,701

Interest expense (489 ) (628 ) (2,164 ) (1,979 )

Other expense (6,049 ) - (10,249 ) -

Total other (6,492 ) (58 ) (11,871 ) (278 )expense, netIncome (loss)before income 8,925 (2,542 ) 11,290 18,640 tax (provision)benefitIncome tax (1,866 ) 152 (7,358 ) (5,332 )(provision)benefitNet Income $ 7,059 $ (2,390 ) $ 3,932 $ 13,308 (Loss)Earnings (Loss)per shareattributable tocommonstockholders:Basic $ 0.52 $ (0.17 ) $ 0.29 $ 0.96

Diluted $ 0.51 $ (0.17 ) $ 0.28 $ 0.94

Weighted averagenumber of commonsharesoutstanding:Basic 13,531,372 13,668,091 13,620,981 13,791,071

Diluted 13,786,803 13,668,091 13,917,800 14,147,658

EAGLE PHARMACEUTICALS, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)(In thousands)Nine Months Ended September 30,2020

2019

Cash flows from operating activities:Net income$

3,932

$

13,308

Adjustments to reconcile net income to net cash provided by operating activities:Deferred income taxes(1,671

)

(175

)

Depreciation expense656

725

Amortization expense of right-of-use assets980

754

Amortization expense of intangible assets1,999

1,890

Fair value adjustments on equity investment7,700

-

Stock-based compensation expense18,435

16,815

Amortization of debt issuance costs301

282

Fair value adjustments on unsettled accelerated share repurchase agreement2,549

-

Changes in operating assets and liabilities which provided (used) cash:Accounts receivable(4,195

)

21,674

Inventories(20

)

1,057

Prepaid expenses and other current assets(2,774

)

(253

)

Accounts payable7,606

1,315

Accrued expenses and other liabilities(3,916

)

3,608

Other assets and other long-term liabilities, net(1,845

)

(1,813

)

Net cash provided by operating activities29,737

59,187

Cash flows from investing activities:Purchase of equity investment security(17,500

)

-

Purchase of property and equipment(577

)

(647

)

Net cash used in investing activities(18,077

)

(647

)

Cash flows from financing activities:Proceeds from common stock option exercises555

78

Employee withholding taxes related to stock-based awards(1,310

)

(198

)

Proceeds from existing revolving credit facility110,000

-

Repayment of existing revolving credit facility(110,000

)

-

Payment of debt(3,000

)

(5,000

)

Repurchases of common stock(27,999

)

(15,000

)

Net cash used in financing activities(31,754

)

(20,120

)

Net (decrease) increase in cash and cash equivalents(20,094

)

38,420

Cash and cash equivalents at beginning of period109,775

78,791

Cash and cash equivalents at end of period$

89,681

$

117,211

Supplemental disclosures of cash flow information:Cash paid during the period for:Income taxes, net$

3,036

$

6,587

Interest1,878

1,787

Right-of-use asset obtained in exchange for lease obligation - lease amendment842

1,700

EAGLE PHARMACEUTICALS, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)(In thousands) Nine Months Ended September 30, 2020 2019

Cash flows from operating activities:Net income $ 3,932 $ 13,308

Adjustments to reconcile net income to net cashprovided by operating activities:Deferred income taxes (1,671 ) (175 )

Depreciation expense 656 725

Amortization expense of right-of-use assets 980 754

Amortization expense of intangible assets 1,999 1,890

Fair value adjustments on equity investment 7,700 -

Stock-based compensation expense 18,435 16,815

Amortization of debt issuance costs 301 282

Fair value adjustments on unsettled accelerated share 2,549 - repurchase agreementChanges in operating assets and liabilities whichprovided (used) cash:Accounts receivable (4,195 ) 21,674

Inventories (20 ) 1,057

Prepaid expenses and other current assets (2,774 ) (253 )

Accounts payable 7,606 1,315

Accrued expenses and other liabilities (3,916 ) 3,608

Other assets and other long-term liabilities, net (1,845 ) (1,813 )

Net cash provided by operating activities 29,737 59,187

Cash flows from investing activities:Purchase of equity investment security (17,500 ) -

Purchase of property and equipment (577 ) (647 )

Net cash used in investing activities (18,077 ) (647 )

Cash flows from financing activities:Proceeds from common stock option exercises 555 78

Employee withholding taxes related to stock-based (1,310 ) (198 )awardsProceeds from existing revolving credit facility 110,000 -

Repayment of existing revolving credit facility (110,000 ) -

Payment of debt (3,000 ) (5,000 )

Repurchases of common stock (27,999 ) (15,000 )

Net cash used in financing activities (31,754 ) (20,120 )

Net (decrease) increase in cash and cash equivalents (20,094 ) 38,420

Cash and cash equivalents at beginning of period 109,775 78,791

Cash and cash equivalents at end of period $ 89,681 $ 117,211

Supplemental disclosures of cash flow information:Cash paid during the period for:Income taxes, net $ 3,036 $ 6,587

Interest 1,878 1,787

Right-of-use asset obtained in exchange for lease 842 1,700 obligation - lease amendment EAGLE PHARMACEUTICALS, INC.RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP NET INCOME ANDADJUSTED NON-GAAP EARNINGS PER SHARE (UNAUDITED)(In thousands, except share and per share amounts)Three Months Ended September 30,Nine Months Ended September 30,2020

2019

2020

2019

Net income (loss) - GAAP$

7,059

$

(2,390

)

$

3,932

$

13,308

Adjustments:Cost of product revenues:Amortization expense261

225

784

675

Research and development:Stock-based compensation expense(514

)

1,081

2,070

3,320

Depreciation expense72

71

206

210

Selling, general and administrative:Stock-based compensation expense5,236

4,570

16,365

13,495

Expense related to collaboration with Tyme-

-

2,500

-

Amortization expense405

405

1,215

1,215

Depreciation expense124

171

450

515

Severance-

-

245

-

Other:Non-cash interest expense118

94

354

282

Fair value adjustments on equity investment3,500

-

7,700

-

Fair value adjustments on unsettled accelerated share repurchase agreement2,549

-

2,549

-

Tax effect of the non-GAAP adjustments(2,663

)

(556

)

(2,466

)

(2,875

)

Adjusted non-GAAP net income

$

16,147

$

3,671

$

35,904

$

30,145

Adjusted non-GAAP earnings per share:Basic$

1.19

$

0.27

$

2.64

$

2.19

Diluted$

1.17

$

0.26

$

2.58

$

2.13

Weighted number of common shares outstanding:Basic13,531,372

13,668,091

13,620,981

13,791,071

Diluted13,786,803

14,120,025

13,917,800

14,147,658

EAGLE PHARMACEUTICALS, INC.RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP NET INCOME ANDADJUSTED NON-GAAP EARNINGS PER SHARE (UNAUDITED)(In thousands, except share and per share amounts) Three Months Ended September Nine Months Ended September 30, 30, 2020 2019 2020 2019

Net income $ 7,059 $ (2,390 ) $ 3,932 $ 13,308 (loss) - GAAP Adjustments:Cost of productrevenues:Amortization 261 225 784 675 expenseResearch anddevelopment:Stock-based (514 ) 1,081 2,070 3,320 compensationexpenseDepreciation 72 71 206 210 expenseSelling, generalandadministrative:Stock-based 5,236 4,570 16,365 13,495 compensationexpenseExpense related - - 2,500 - to collaborationwith TymeAmortization 405 405 1,215 1,215 expenseDepreciation 124 171 450 515 expenseSeverance - - 245 -

Other:Non-cash 118 94 354 282 interest expenseFair valueadjustments on 3,500 - 7,700 - equityinvestmentFair valueadjustments onunsettled 2,549 - 2,549 - acceleratedshare repurchaseagreementTax effect of (2,663 ) (556 ) (2,466 ) (2,875 )the non-GAAPadjustments Adjustednon-GAAP net $ 16,147 $ 3,671 $ 35,904 $ 30,145 income

Adjustednon-GAAPearnings pershare:Basic $ 1.19 $ 0.27 $ 2.64 $ 2.19

Diluted $ 1.17 $ 0.26 $ 2.58 $ 2.13

Weighted numberof common sharesoutstanding:Basic 13,531,372 13,668,091 13,620,981 13,791,071

Diluted 13,786,803 14,120,025 13,917,800 14,147,658

EAGLE PHARMACEUTICALS, INC.RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP EBITDA (UNAUDITED)(In thousands)Three Months EndedSeptember 30,Nine Months EndedSeptember 30,Twelve Months EndedSeptember 30,Twelve Months EndedDecember 31,2020

2019

2020

2019

2020

2019

Net income (loss) - GAAP$

7,059

$

(2,390

)

$

3,932

$

13,308

$

4,937

$

14,313

Add back:Interest expense, net of interest income443

58

1,622

278

1,861

517

Income tax provision (benefit)1,866

(152

)

7,358

5,332

$

9,711

7,685

Depreciation and amortization expense862

872

2,655

2,615

3,532

3,492

Add back:Stock-based compensation expense4,722

5,651

18,435

16,815

$

23,618

21,998

Debt issuance cost-

-

-

-

88

88

Fair value adjustments on equity investment3,500

-

7,700

-

$

7,700

-

Fair value adjustments on unsettled accelerated share repurchase agreement2,549

2,549

2,549

-

Expense of acquired in-process research & development-

-

-

-

500

500

Expense related to collaboration with Tyme-

-

2,500

-

$

2,500

-

Severance-

-

245

-

700

455

Adjusted Non-GAAP EBITDA$

21,001

$

4,039

$

46,996

$

38,348

$

57,696

$

49,048

View source version on businesswire.com: https://www.businesswire.com/news/home/20201102005298/en/

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

CONTACT: Public Relations for Eagle Pharmaceuticals, Inc.: Faith Pomeroy-Ward T: 817-807-8044 E: faith@fpwservices.com