Osmotica Pharma PLC (OSMT) stock prices stayed stable over the course of the market day on June 17th, 2021. Subsequent pre-market fluctuations have seen the stock climb by 3.74%, bringing it up to USD$3.05.
Upneeq Snowball Effect
The first quarter of the fiscal year 2021 saw the company ride the momentum generated by the earlier launch of Upneeq, the first and only FDA-approved ophthalmic solution for the treatment of acquired ptosis in adults. The growth accelerated since the launch, with Q1 2021 having reported a 74% quarter-over-quarter growth in paid subscriptions. Paid subscriptions for the month of April were 17% higher than the previous month, reflecting the increased exposure of Upneeq and the familiarity of more and more eye care professionals with it. The company is keen to spearhead its market penetration and expand the scope of exposure of Upneeq.
Upneeq established itself as an invaluable asset with it being awarded the 2021 Medtech Breakthrough Award. The company’s partner, Santen Pharma, had a successful meeting with the Japanese equivalent of the FDA, the PMDA, and subsequently made plans to initiate clinical trials in the very near future. The success of the meeting was reflected by the USD$10 million milestone as per its licensing agreement, which it anticipates receiving in the second quarter of 2021.
The company has submitted a revised study protocol of arbaclofen to the FDA, with the belief that the treatment has the potential to play an essential role in MS spasticity. OMST is also in advanced discussions with several parties as a part of the previously announced execution of its strategic process focus on its legacy portfolio.
Revenues for the first quarter of the fiscal year 2021 came in at USD$23.9 million, down from the USD$48.6 million reported in the prior year quarter. Net loss was on the rise, with Q1 2021 reporting USD$9.6 million, up from the USD$3.1 million net loss reported for the first quarter of 2020. As of March 31st, 2021, the company reported cash and cash equivalents on the amount of USD$109.2 million, against a debt of USD$219.8 million.
Future Outlook for OSMT
Armed with the continuously expanding actualization of the commercial potential of Upneeq, OSMT is poised to return to its trajectory of growth after a consistent few days of the stock trending down. Current and potential investors are hopeful that management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.