Wed, Jul 3, 10:02 AM (66 days ago)
Emmaus Life Sciences, Inc. reported a net loss of $3.7 million for the year ended December 31, 2023, a 65% decrease from the $10.6 million loss in 2022. This improvement was driven by a $12.5 million increase in gross profit, despite a $2.3 million rise in operating expenses and a $3.4 million increase in other expenses. Net revenues grew by 61% to $29.6 million, primarily due to a recovery in U.S. sales and a $5.6 million increase in the MENA region. Cost of goods sold decreased by 48% to $1.3 million, thanks to a $1.6 million reduction in reserve costs for inventory with a shorter shelf-life. Research and development expenses dropped by 31% to $1.2 million, reflecting the completion of certain studies and the suspension of further R&D activities. Selling expenses rose by 15% to $8.6 million. The company faces risks related to the expiration of market exclusivity for Endari® in the U.S. in July 2024 and its lack of exclusivity in the MENA region, which could impact future sales and reimbursement rates. Emmaus also dealt with a significant inventory shortage in late 2023 and early 2024 but expects a rebound in sales by mid-2024.