Hot Stock to Track: Eagle Pharmaceuticals Inc. (NASDAQ: EGRX)

WOODCLIFF LAKE, N.J., November 19, 2019 – Shares of Eagle Pharmaceuticals Inc. (NASDAQ: EGRX) showed the bullish trend with a higher momentum of 0.69% to $57.20. The company traded total volume of 158.743K shares as contrast to its average volume of 149.84K shares. The company has a market value of $776.78M and about 13.58M shares outstanding.

For the three months ended June 30, 2019, Eagle Pharmaceuticals, Inc. (NASDAQ: EGRX) reported total revenue of $56.70M, as compared to $59.30M for the three months ended June 30, 2018.

Royalty revenue was $27.30M in the second quarter of 2019, compared to $36.30M in the second quarter of 2018. BENDEKA® royalties were $26.50M in the second quarter of 2019, compared to $34.70M in the second quarter of 2018.

R&D expense was $9.00M for the quarter, compared to $15.30M in the same quarter in the prior year. The second quarter year over year decrease reflects a substantial reduction in fulvestrant expense, partially offset by the cost to bring vasopressin to market. Excluding stock-based compensation and other non-cash and non-recurring items, R&D expense during the second quarter was $7.80M.

SG&A expense in the second quarter of 2019 increased to $17.20M compared to $16.00M in the second quarter of 2018. External legal spend associated with litigation on PEMFEXY™, vasopressin and bendamustine and higher stock compensation expense account for the year over year increase. Excluding stock-based compensation and other non-cash and non-recurring items, second quarter 2019 SG&A expense was $12.40M.

Net income for the second quarter of 2019 was $6.70M, or $0.49 per basic and $0.48 per diluted share, compared to net income of $2.70M, or $0.18 per basic and $0.17 per diluted share in the second quarter of 2018, due to the factors discussed above.

Adjusted non-GAAP net income for the second quarter of 2019 was $11.80M, or $0.86 per basic and $0.84 per diluted share, compared to adjusted non-GAAP net income of $14.70M or $0.99 per basic and $0.95 per diluted share in the second quarter of 2018.

Liquidity:

As of June 30, 2019, the Company had $108.10M in cash and cash equivalents and $60.30M in net accounts receivable, $37.60M of which was due from Teva Pharmaceutical Industries Ltd. The Company had $41.30M in outstanding debt. Therefore, at June 30, 2019, the Company had net cash and receivables of $127.20M.

In the second quarter of 2019, we purchased $15.00M of Eagle’s common stock as part of our share buyback program. Since August 2016, we have repurchased $168.90M of our common stock.

The Company offered net profit margin of 12.70% while its gross profit margin was 66.70%. ROE was recorded as 15.10% while beta factor was 1.39. The stock, as of recent close, has shown the weekly downbeat performance of -9.45% which was maintained at 41.97% in this year.

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