Apricus Biosciences Inc (NASDAQ:APRI) shares are rising by 3% in Thursday’s trading on the news that Apricus has completed the sale to Ferring International of its topical cream Vitaros. The sale excludes the US market where Apricus will keep its Vitaros rights. The company stated that it remains on track to re-submit the Vitaros new drug application (NDA) to the FDA in the third quarter of 2017.
Swiss biopharma Ferring will pay Apricus $11.5 million on closing of the agreement, and up to an extra $700,000 with respect to certain product inventory. A transition services agreement also states that Ferring will pay Apricus a further $500,000 over two calendar quarters, in exchange for Apricus` assistance the transfer of assets and know-how.
“This transaction reflects the continued execution of our corporate strategy of developing, obtaining regulatory approval for, and partnering novel topical prescription treatments in areas of significant unmet need,” said Richard Pascoe, Chief Executive Officer of Apricus. He added that the sale should enable Apricus to reduce its operating expenses by 30%.
Aprics and Ferring already have a working relationship as Ferring is Apricus` existing commercialization partner for Vitaros in Latin America and certain parts of Europe and Asia. Apricus specializes in innovative medicines in urology and rheumatology, and has one other product in development, RayVa.
VIVUS, Inc. (NASDAQ:VVUS) shares are also gaining ground in Thursday’s trading, and are currently up 15% after the biopharma company posted a 4Q profit. Vivus reported fourth-quarter net income of $56.6 million, up from a loss in the previous year, and an EPS of 54 cents. Revenue came in at $81.8 million in the period. This means the for the whole year Vivus, which specializes in developing therapies for unmet needs in human health, made a net income of $23.3 million, an EPS of 22 cents per share, and a revenue of $124.3 million.
Vivus has been very busy in the last couple of months- in January 2017 the company acquired exclusive global rights for tacrolimus and ascomycin for Pulmonary Arterial Hypertension (PAH) from Selten Pharma. Now, for 2017, Vivus aims to develop or in-license a proprietary formulation for the products and have a pre-investigational new drug (IND) meeting with the FDA.
CEO Seth Fischer says “We are excited to take this momentum forward by utilizing our strong cash position for the acquisition and development of a new product pipeline to drive value creation for our stockholders while addressing the unmet needs of patients.”
Tailored Brands Inc (TLRD) shares are sinking in Thursday’s trading by 30% after the company shocked the market with a fourth quarter net loss of 19 cents per, versus the loss of 11 cents per share that the Street had expected.
The Men’s Warehouse parent company reported revenue of $793.3 million, significantly lower than the predicted $824.2 million. For the full year, the Houston-based company reported a net income of $25 million or 51 cents per share, and revenue of $3.38 billion.
Following the news, Mizuho analyst Betty Chen downgraded TLRD to hold, while taking her price target down $7 to $18. Chen is concerned that traffic headwinds and margin pressures are not over yet, according to guidance received from the company.
Doug Ewert CEO of Tailored Brands commented that the men’s retail stores owner is facing competition from e-commerce sites but that TLRD plans to improve its own online sites with guided shopping, outfitting, and store appointment scheduling.