Emmaüs Life Sciences Inc reports Q3 revenue boosted by Endari sales in the United Arab Emirates

Emmaus Life Sciences Inc (OTCQX: EMMA) reported net revenue of $4.9 million for the third quarter of 2022, nearly 15% higher than the $4.3 million recorded in the second quarter, boosted mainly by its oral sickle cell therapy Endari in the United Arab Emirates after it was approved for sale in May this year.

“We experienced a third consecutive substantial increase in quarterly net sales due to increased sales in the Middle East and North Africa region. The increase was lower than expected due to a delay in production of region-specific product packaging. The product is being processed and we are optimistic that sales will be achieved in the fourth quarter,” Yutaka Niihara, CEO of Emmaus, said in a statement.

“We are also pleased to see a significant decrease in operating loss compared to previous quarters. We continue to discuss with stakeholders the possible restructuring or refinancing of our outstanding debt and other current liabilities and will make account of any transactions in this regard as they may occur,” he added.

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The commercial-stage biopharmaceutical company and leader in the treatment of sickle cell disease said it saw lower net revenue for the three months to September compared to the same period in 2021 due to lower order purchases in wholesale in 2022 due to overstocking by US distributors over the past year.

Total operating expenses for the three months were $5.1 million, compared to $5.4 million for the same period in 2021. Of the decrease in expenses in the third quarter, $0.2 million was attributable to a decrease in professional fees.

Meanwhile, operating loss for the three months was $0.7 million, compared to $31,000 for the same period in 2021. The increase in operating loss resulted from lower net revenue in 2022 compared to 2021.

Emmaus posted a net loss of $0.4 million in the third quarter, compared to a loss of $3.2 million a year earlier, mainly due to the $3.1 million increase in other income, partially offset by a $0.7 million decrease in operating loss.

As of September 30, 2022, the company had cash and cash equivalents of $1.2 million, compared to $2.3 million as of December 31, 2021.

Based on cash and cash equivalents, anticipated future revenues, current liabilities and expected operating expenses, Emmaüs has stated that its working capital is insufficient to meet its current liabilities and future cash requirements. anticipated working capital for the next 12 months without restructuring or refinancing its existing debt and other current liabilities and obtaining additional loans from related parties or debt or equity financing from third parties or the reduction of certain operations or activities.

Emmaus Life Sciences currently markets and markets Endari® (L-glutamine oral powder), indicated to reduce acute complications of sickle cell disease in adults and children 5 years of age and older, in the USA and the United Arab Emirates, and continues to market the authorization of Endari® in other countries of the Gulf Cooperation Council.

The company is also engaged in the discovery and development of innovative treatments and therapies for certain rare and orphan diseases as well as those affecting larger populations, such as certain cancers.

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Sallie R. Loera