Valeritas (NSDQ:VLRX) said today that cut its debt load by $25 million in a refinancing move and released its third-quarter preliminary results, sending its share price up on Wall Street in early trading.
The terms of refi saw the exchange of $25.0 million in senior debt owned by CR Group and another creditor for new Series B convertible shares, cutting its overall senior secured debt to roughly $17.0 million and saving $8 million in interest payments through March 2022.
“As we continue to see strong momentum in V-Go prescriptions from both our tenured sales representatives and our newly hired sales representatives, we were able to work with our creditors to significantly reduce our long-term debt obligations. The reduction in our long-term debt obligations by nearly 60% and the elimination of any cash interest payments until maturity will result in greater financial flexibility, significant cash savings, and better positions us to continue to drive sales growth across our 75 territories in the U.S.,” president & CEO John Timberlake said in prepared remarks.
Bridgewater, N.J.-based Valeritas also said it expects to post sales of about $8.5 million for the three months ended Sept. 30, up some 30% over Q3 2018, and reiterated its annual sales guidance of $31.0 million to $33.0 million.
“We remain confident in our revenue expectations for 2019 as V-Go prescription rates continue to accelerate. Additionally, we are excited by the prospects of regulatory clearance for use of U-100 Regular Human Insulin (RHI) in V-Go, as well as the results of our pharmacokinetic studies using our h-Patch technology to deliver cannabidiol and apomorphine, which will be presented at several industry conferences,” Timberlake said.
Valeritas also said it plans to file for 510(k) clearance during Q1 2020 from the FDA for its V-Go SIM Bluetooth accessory, “which we expect to launch immediately upon clearance by the FDA.”
VLRX shares were up 6.6% to $1.3752 apiece today in early trading.
