Dallas, Texas 07/27/2015 (Financialstrend) – IGI Laboratories, Inc. (NYSEMKT:IG) stock rose by more than 20% on the company posting better than expected second–quarter results that beat the Street’s estimates. The specialty generic pharmaceutical company posted second quarter revenue of $8.9 million slightly above the Street’s estimates of $8.89 million.
Increased R&D Costs and Outlook
Total revenues accrued from the sale of IGI Label generic topical pharmaceutical products came in at $6.7 million nearly double $3.4 million generated the prior year. Increased research and development costs pushed the company to a net loss of $1.9 million compared to a net loss of $0.3 million generated the prior year. IGI Laboratories, Inc. (NYSEMKT:IG) spent $1.4 million on research and Development during the quarter.
IGI Laboratories has reaffirmed its full year guidance, having reiterated it expects sequential improvement in revenue going forward. Total revenue for the full year should range between $35 and $40 million. The company also expects an improvement in its gross margins, which could range between 45% and 50%.
ANDA Applications Potential
The pharmaceutical company is in the process of submitting 20 Abbreviated New Drug Applications to the end of the year, which it hopes will add to its enriched drugs portffolio on successful approval. The drugs could generate more than $1.2 billion in revenue upon approval according to the CEO. The company has already received approval for its diclofenac sodium 1/5% topical solution
IGI Laboratories plans to spend between $13 and $14.5 million on research development activities before the end of the year. IGI Laboratories has more than $150 million in cash on the balance sheet, which provides it with the much-needed liquidity to fund research and development efforts at hand.
During the earnings call, CEO Jason Grenfe-Gardner said that the management team remains focused on diversifying the company’s diversified product portfolio built around tropical, injectable, complex and ophthalmic or Tico strategy.