On November 14, 2022 Adamis Pharmaceuticals Corporation (NASDAQ: ADMP), a commercial-stage biopharmaceutical company primarily focused on developing and commercializing products in various therapeutic areas, including allergy, opioid overdose, respiratory and inflammatory disease, reported financial results for the third quarter of 2022 and provided an update on recent corporate developments (Press release, Adamis Pharmaceuticals, NOV 14, 2022, View Source [SID1234623969]).

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Process Update

In October, the Company announced that it had initiated a process to explore a range of strategic and financing alternatives and had retained an investment bank to assist in evaluating certain alternatives focused on maximizing stockholder value. Potential alternatives include a sale, partnership, distribution or other agreement regarding one or both of the Company’s commercial products, a sale, merger, or reverse merger of the company, and/or seeking additional financing. As of today, the Company is engaged in communications with third parties regarding one or more possible transactions.

"The strategic process is well under way with the goal of maximizing shareholder value and preserving cash resources," stated David J. Marguglio, CEO of Adamis. "Concurrently, we have implemented significant expense reduction measures including employee headcount reductions and pausing all product development programs. While engaged in this process, we continue to work closely with our commercial partner to continue the momentum of the ZIMHI launch and the return of SYMJEPI to the market."

There can be no assurance regarding the schedule for completion of the strategic review process, that this strategic review process will result in the Company pursuing any transaction or that any transaction, if pursued, will be completed.

Business Updates in Q3 2022

ZIMHI (naloxone) Injection

●Following its introduction to the market at the end of March, our commercial partner continues to make steady progress on the ZIMHI commercial launch plan.

●Unit sales increased 90% in the third quarter compared to the second quarter of 2022.

SYMJEPI (epinephrine) Injection

●In March 2022, the Company announced that manufacturing issues at one of its contract manufacturers, Catalent Belgium, led to a voluntary recall of four lots of SYMJEPI. Following corrective and preventative actions, Catalent resumed operations at its Belgium facility in November 2022.

●Assuming no additional interruptions or delays, the Company anticipates having SYMJEPI relaunched and commercially available before the end of the first quarter of 2023.

TEMPOL

●The Company announced that following a review of interim data, it’s Phase 2/3 clinical trial examining the effects of Tempol in COVID-19 treatment failed to achieve its primary endpoint and further development of Tempol has been halted.

Discontinued Operations

●The Company is continuing to liquidate the assets of the former US Compounding business and, although there are no assurances, the Company expects to receive additional proceeds which could range from approximately $3 to $4 million between now and the end of the first quarter of 2023.

Q3 2022 Financial Highlights

●Total net revenue for the third quarter of 2022 was approximately $1.5 million compared to approximately $760,000 in the third quarter of 2021, an increase of 98%. The increase in revenues was primarily due to sales of ZIMHI, the absence of sales for SYMJEPI resulting from the March 2022 product recall and the recognition of deferred revenue under our commercial distribution agreement, offset by cost of the SYMJEPI recall.

●Operating expense (selling, general and administrative expenses and research and development expenses) for the third quarter of 2022 was approximately $4.5 million compared to $9.4 million in the third quarter of 2021, a decrease of 52%. The decrease was primarily due to lower development spending for Tempol and ZIMHI, decreases in legal and advisory fees, and a reversal of 2022 accrued bonus expenses.

●Net loss for the combined (continued and discontinued) operations for the third quarter of 2022 was approximately $4.4 million compared to a net loss of $12.4 million in the third quarter of 2021, a 64% decrease.

●Cash and cash equivalents as of September 30, 2022 were approximately $2.4 million.

Conference Call Information

Management will host a live webcast/conference call today, November 14, 2022, at 2:00 p.m. PT / 5:00 p.m. ET, during which Company executives will review financial information for the third quarter of 2022 and provide a corporate update.

A live audio webcast of the conference call will also be available via this link. If you are unable to participate in the live call, a replay will be available shortly after the live event. To listen to the replay please visit the events page of the Adamis investor relations section of the company website at View Source