​Imprimis (IMMY) Sheds $3M in Expenses By Ceasing Operations at Texas Facility

Bolton Flautt  |

Shares of Imprimis Pharmaceuticals, Inc. (IMMY) jumped nearly 4 percent to $3.93 per share on moderate volume after announcing an expense reduction program. The company has a market capitalization of $48.9 million and an average daily volume of 35,426 shares. Imprimis has a 52-week range between $3.34 and $8.79 per share. The company engages in the development, production, and dispensing of proprietary compounded pharmaceutical products to physicians and patients in the United States. It owns, markets, and sells a portfolio of proprietary combination formulations in the areas of ophthalmology, otolaryngology, urology, and infectious diseases therapeutic areas.

As previously mentioned, Imprimis implemented an expense reduction program to better leverage the company's state-of-the-art drug production infrastructure, eliminate redundant expenses and enable near term profitability without hindering growth plans. Following recent company-wide improvements in technology integration, production automation, quality systems and supply chain efficiencies, the company has ceased operations at its Texas facility and implemented an 8% reduction in total headcount.

Imprimis will leverage recent investments made to its New Jersey facility, including new production processes and filling and labeling automation, to offset previously planned production in Texas. These actions are expected to streamline Imprimis' operations and reduce expected cash based expenses by nearly $3 million annually without impacting the company's growth plans. Imprimis is currently exploring alternatives for use of the Texas facility, but estimates it will incur total restructuring costs of approximately $0.6 million under the plan, the majority of which is expected to be non-cash based expenses and incurred in the third quarter of this year.

Mark L. Baum, Chief Executive Officer of Imprimis, stated, "We continue to experience strong growth in several important markets, including those for new products we have recently brought to market; however, the time has come to discipline our expenses and commit ourselves to moving towards profitability. As we experience continued top line growth, improving margins and now a reduction in expenses, this plan efficiently utilizes our considerable sterile and non-sterile production and dispensing capacity on both coasts and ensures our commitment to advancing our vision of delivering innovative medicines at accessible prices, while generating a strong return to our shareholders."

Fundamentally, Imprimis has achieved consistent revenue growth over the previous four quarters and with this significant reduction in expenses, it should be headed in the direction of turning a profit. For the most recent reported quarter ended June 30, 2016, the company reported revenue of $4.91 million, an increase of nearly 150 percent year-over-year, with ophthalmology related revenue garnering the largest portion of $2.6 million (330 percent increase year-over-year).

Imprimis also provides compounded therapeutic alternatives; and non-proprietary customizable compounded drugs for humans and animals, including sterile injectable and non-sterile integrative medicine therapies for oncology, autoimmunity, chronic infectious, and endocrine and metabolic diseases. In addition, it develops formulations in the areas of wound healing and dermatology therapeutic areas. The company was formerly known as Transdel Pharmaceuticals, Inc. and changed its name to Imprimis Pharmaceuticals, Inc. in February 2012. Imprimis Pharmaceuticals, Inc. was founded in 1998, is headquartered in San Diego, California, and has 106 full time employees.

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Companies

Symbol Name Price Change % Volume
IMMY HROW Imprimis Pharmaceuticals Inc. n/a n/a n/a n/a

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