Ascendis Pharma Reports Fourth Quarter and Full Year 2023 Results
- Significant increase in revenue for Q4 2023 compared to the same period in 2022
- Successful launch of TransCon™ PTH in Germany and Austria
- Positive outlook for SKYTROFA® revenue in 2024
- Strategic goals outlined in Vision 2030 are on track to be achieved
- Net loss of €481.4 million for the full year 2023
- Decrease in cash, cash equivalents, and marketable securities compared to 2022
Insights
The financial results released by Ascendis Pharma A/S, particularly the reported 37% sequential increase in SKYTROFA revenue and the anticipated revenue growth for the full year 2024, are indicative of the company's strong commercial performance and market acceptance of its growth hormone product. The projected revenue of €320 million to €340 million for 2024, based on average 2023 exchange rates, suggests a bullish outlook for the company's flagship product. However, investors should consider the operating expenses of approximately €600 million for 2024, which could offset some of the revenue gains. The company's goal to reach operating cash flow breakeven by the end of 2024 is a critical milestone that will be closely monitored by investors as it could significantly reduce financial risk and enhance shareholder value.
Ascendis Pharma's pipeline developments, including the launch of TransCon PTH in Europe and the upcoming PDUFA date in the U.S., as well as the progress of the TransCon CNP pivotal ApproaCH Trial, are pivotal for the company's long-term strategy. The expansion into the treatment of achondroplasia with TransCon CNP, if successful, could open a new market segment for the company. Additionally, the potential approval and commercial launch of TransCon PTH in the U.S. could significantly expand the company's market reach. However, the research and development costs, which reflect an increase in program development activities, highlight the substantial investment required for such innovative therapies. The outcomes of these trials will be critical in determining the company's future trajectory and potential impact on the rare disease treatment landscape.
The strategic formation and launch of Eyconis, Inc. to focus on ophthalmology assets is an interesting diversification strategy, potentially creating additional value streams for Ascendis Pharma. It is essential to evaluate the competitive landscape in ophthalmology and the unique positioning of TransCon ophthalmology assets. The success of this spin-off could provide insights into the effectiveness of specializing business units to maximize innovation and market penetration. However, the market will be observing closely to ensure that this strategic move does not dilute the company's focus on its core endocrinology rare disease products, which are key drivers of current revenue.
- Launch of TransCon™ PTH underway with full commercial availability in Germany and Austria; U.S. PDUFA date of May 14, 2024
- TransCon CNP pivotal ApproaCH Trial on track for topline results in Q4 2024
- Total Q4 revenue of
€138 million including SKYTROFA® revenue of€64 million ; Q4 operating expenses of€155 million - Conference call today at 4:30 pm ET
COPENHAGEN, Denmark, Feb. 07, 2024 (GLOBE NEWSWIRE) -- Ascendis Pharma A/S (Nasdaq: ASND) today announced financial results for the fourth quarter and full year ended December 31, 2023 and provided a business update.
“In 2023, we streamlined Ascendis, including our structure, processes, and operating expense allocation, and at the same time we believe we remain on track to achieve Vision 3x3,” said Jan Mikkelsen, Ascendis Pharma’s President and Chief Executive Officer. “SKYTROFA is the leading growth hormone product in value in the U.S., the launch of YORVIPATH® in our Europe Direct and International Markets segments is underway beginning with Germany and Austria, and our clinical program for TransCon CNP is advancing. Ascendis is a leaner, more efficient organization in 2024, well-positioned to fulfill the strategic goals outlined in our Vision 2030, including achieving blockbuster status for each of our three independent Endocrinology Rare Disease products and expanding our engine for future innovation.”
Select 2023 Highlights & Anticipated 2024 Milestones
- TransCon hGH:
(lonapegsomatropin, approved as SKYTROFA in the U.S. and EU)- Fourth quarter SKYTROFA revenue totaled
€64 million , a37% sequential increase. Full year 2023 SKYTROFA revenue totaled€179 million compared to€36 million the year prior.
- Fourth quarter SKYTROFA revenue totaled
| Q4-2022 | Q1-2023 | Q2-2023 | Q3-2023 | Q4-2023 | |
| SKYTROFA revenue (millions) | |||||
-
- Full year 2024 SKYTROFA revenue expected to be
€320 million to€340 million (based on average 2023 exchange rates). - Plan to submit a supplemental Biologics License Application to FDA for adult growth hormone deficiency (GHD), in the second quarter of 2024.
- Topline results from Phase 2 trial in Turner syndrome expected in the fourth quarter of 2024.
- Full year 2024 SKYTROFA revenue expected to be
- TransCon PTH:
(palopegteriparatide, approved as YORVIPATH in the EU)- Launch of TransCon PTH underway with full commercial availability in Germany and Austria.
- In the U.S., Prescription Drug User Fee Act (PDUFA) date of May 14, 2024; if approved, U.S. commercial launch planned in the third quarter of 2024.
- TransCon CNP:
(navepegritide)- First patient enrolled in Phase 2 reACHin Trial in infants with achondroplasia (age 0-2 years). Estimated total enrollment of 72 patients.
- Topline data from pivotal ApproaCH Trial expected in the fourth quarter of 2024, and plan to submit a New Drug Application to FDA for children with achondroplasia (age 2-11 years) in the same quarter.
- Topline data from Week 26 of the COACH Trial (TransCon hGH/TransCon CNP combination) expected in children with achondroplasia (age 2-11 years) in the fourth quarter of 2024.
- During the fourth quarter of 2024, plan to submit an Investigational New Drug application or similar in adults with achondroplasia.
- TransCon IL-2 β/γ:
(onvapegleukin alfa)- During the fourth quarter of 2024, plan to provide a clinical update from the Phase 2 portion of indication-specific, dose expansion cohorts in the IL Believe trial.
- TransCon TLR7/8 Agonist:
- During the fourth quarter of 2024, plan to provide a clinical update from the Phase 2 portion of indication-specific, dose expansion cohorts in the transcendIT-101 trial.
- Ophthalmology
- In January 2024, announced the formation and launch of Eyconis, Inc., a separate company created to develop, manufacture, and commercialize TransCon ophthalmology assets globally.
- Financial Update and Outlook Based on Current Plans
- Ended 2023 with cash, cash equivalents, and marketable securities totaling
€399 million . - Full year 2024 SKYTROFA revenue expected to be
€320 million to€340 million (based on average 2023 exchange rates). - Expect total operating expenses (SG&A and R&D) of approximately
€600 million for 2024. - Expect to be operating cash flow breakeven on a quarterly basis by the end of 2024.
- Ended 2023 with cash, cash equivalents, and marketable securities totaling
Fourth Quarter and Full Year 2023 Financial Results
Total revenue for the fourth quarter of 2023 was
Research and development (R&D) costs for the fourth quarter were
Selling, general, and administrative (SG&A) expenses for the fourth quarter were
Total operating expenses for the fourth quarter were
Net finance expenses were
For the fourth quarter of 2023, Ascendis Pharma reported a net loss of
As of December 31, 2023, Ascendis Pharma had cash, cash equivalents, and marketable securities totaling
Conference Call and Webcast Information
Ascendis Pharma will also host a conference call and webcast today at 4:30 p.m. Eastern Time (ET) to discuss 2023 financial results.
Those who would like to participate may access the live webcast here, or register in advance for the teleconference here. The link to the live webcast will also be available on the Investors & News section of the Ascendis Pharma website at https://investors.ascendispharma.com. A replay of the webcast will be available on this section of the Ascendis Pharma website shortly after conclusion of the event for 30 days.
About Ascendis Pharma A/S
Ascendis Pharma is applying its innovative TransCon technology platform to build a leading, fully integrated biopharma company focused on making a meaningful difference in patients’ lives. Guided by its core values of patients, science and passion, Ascendis uses its TransCon technologies to create new and potentially best-in-class therapies. Ascendis is headquartered in Copenhagen, Denmark and has additional facilities in Germany and the United States. Please visit ascendispharma.com to learn more.
Forward-Looking Statements
This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding Ascendis’ future operations, plans and objectives of management are forward-looking statements. Examples of such statements include, but are not limited to, statements relating to (i) TransCon PTH’s PDUFA date of May 14, 2024, (ii) the timing of topline results from the ApproaCH Trial, (iii) Ascendis’ ability to achieve Vision 3x3, (iv) Ascendis’ ability to fulfill its strategic goals outlined in Vision 2030, including achieving blockbuster status for each of its three independent Endocrinology Rare Disease products and expanding its engine for future innovation, (v) Ascendis’ expectations regarding full year 2024 revenue for SKYTROFA, (vi) Ascendis’ plan to submit a Biologics License Application for SKYTROFA for adult GHD in the second quarter of 2024, (vii) the timing of topline results from the Phase 2 trial in Turner syndrome, (viii) the launch of TransCon PTH in the U.S., if approved, (ix) the estimated total enrollment in the Phase 2 reACHin Trial, (x) the timing of topline data from the ApproaCH Trial, (xi) Ascendis’ plan to submit a New Drug Application for TransCon CNP for children with achondroplasia, (xii) the timing of topline data from Week 26 of the COACH Trial, (xiii) Ascendis’ plan to submit an Investigational New Drug application or similar for TransCon CNP in adults with achondroplasia, (xiv) Ascendis’ plan to provide a clinical update from the Phase 2 portion of indication-specific, dose expansion cohorts of the IL Believe trial, (xv) Ascendis’ plan to provide a clinical update from the Phase 2 portion of indication-specific, dose expansion cohorts in the transcendIT-101 trial during the fourth quarter of 2024, (xvi) Eyconis, Inc.’s ability to develop, manufacture, and commercialize TransCon ophthalmology assets globally, (xvii) Ascendis’ expectations regarding its total operating expenses for 2024, (xviii) Ascendis’ expectation that it will be operating cash flow breakeven on a quarterly basis by the end of 2024, (xix) Ascendis’ ability to apply its TransCon technology platform to build a leading, fully integrated biopharma company, and (xx) Ascendis’ use of its TransCon technologies to create new and potentially best-in-class therapies. Ascendis may not actually achieve the plans, carry out the intentions or meet the expectations or projections disclosed in the forward-looking statements and you should not place undue reliance on these forward-looking statements. Actual results or events could differ materially from the plans, intentions, expectations and projections disclosed in the forward-looking statements. Various important factors could cause actual results or events to differ materially from the forward-looking statements that Ascendis makes, including the following: dependence on third party manufacturers, distributors and service providers for Ascendis’ products and product candidates; unforeseen safety or efficacy results in Ascendis’ development programs or on-market products; unforeseen expenses related to commercialization of any approved Ascendis products; unforeseen expenses related to Ascendis’ development programs; unforeseen selling, general and administrative expenses, other research and development expenses and Ascendis’ business generally; delays in the development of its programs related to manufacturing, regulatory requirements, speed of patient recruitment or other unforeseen delays; Ascendis’ ability to obtain additional funding, if needed, to support its business activities; the impact of international economic, political, legal, compliance, social and business factors. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to Ascendis’ business in general, see Ascendis’ Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (SEC) on February 7, 2024 and Ascendis’ other future reports filed with, or submitted to, the SEC. Forward-looking statements do not reflect the potential impact of any future licensing, collaborations, acquisitions, mergers, dispositions, joint ventures, or investments that Ascendis may enter into or make. Ascendis does not assume any obligation to update any forward-looking statements, except as required by law.
Ascendis, Ascendis Pharma, the Ascendis Pharma logo, the company logo, TransCon, SKYTROFA®, and YORVIPATH® are trademarks owned by the Ascendis Pharma group.
© February 2024 Ascendis Pharma A/S.
| Investor Contacts: Tim Lee Ascendis Pharma +1 (650) 374-6343 tle@ascendispharma.com ir@ascendispharma.com | Media Contact: Melinda Baker Ascendis Pharma +1 (650) 709-8875 media@ascendispharma.com |
| Patti Bank ICR Westwicke +1 (415) 513-1284 patti.bank@westwicke.com |
FINANCIAL TABLES FOLLOW
| Ascendis Pharma A/S | |||||||||||
| Consolidated Statements of Profit or Loss and Comprehensive Income / (Loss) | |||||||||||
| (In EUR'000s, except share and per share data) | |||||||||||
| Three Months ended December 31, | Twelve Months ended December 31, | ||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||
| Revenue | 137,703 | 22,895 | 266,718 | 51,174 | |||||||
| Cost of sales | 19,457 | 5,111 | 44,395 | 12,137 | |||||||
| Gross profit | 118,246 | 17,784 | 222,323 | 39,037 | |||||||
| Research and development costs | 90,881 | 108,618 | 413,454 | 379,624 | |||||||
| Selling, general and administrative expenses | 63,975 | 56,553 | 264,410 | 221,227 | |||||||
| Operating profit / (loss) | (36,610 | ) | (147,387 | ) | (455,541 | ) | (561,814 | ) | |||
| Share of profit / (loss) of associate | (2,924 | ) | (7,962 | ) | (18,395 | ) | (17,697 | ) | |||
| Finance income | 22,727 | 3,305 | 43,857 | 52,181 | |||||||
| Finance expenses | 64,280 | 50,027 | 44,065 | 50,487 | |||||||
| Profit / (loss) before tax | (81,087 | ) | (202,071 | ) | (474,144 | ) | (577,817 | ) | |||
| Income taxes (expenses) | (5,791 | ) | (5,348 | ) | (7,303 | ) | (5,377 | ) | |||
| Net profit / (loss) for the period | (86,878 | ) | (207,419 | ) | (481,447 | ) | (583,194 | ) | |||
| Attributable to owners of the Company | (86,878 | ) | (207,419 | ) | (481,447 | ) | (583,194 | ) | |||
| Basic and diluted earnings / (loss) per share | ) | ) | ) | ) | |||||||
| Number of shares used for calculation (basic and diluted) | 56,560,368 | 55,941,261 | 56,287,060 | 56,071,793 | |||||||
| Net profit / (loss) for the period | (86,878 | ) | (207,419 | ) | (481,447 | ) | (583,194 | ) | |||
| Other comprehensive income / (loss) | |||||||||||
| Items that may be reclassified subsequently to profit or loss: | |||||||||||
| Exchange differences on translating foreign operations | (1,498 | ) | 2,211 | (2,731 | ) | (327 | ) | ||||
| Other comprehensive income / (loss) for the period, net of tax | (1,498 | ) | 2,211 | (2,731 | ) | (327 | ) | ||||
| Total comprehensive income / (loss) for the period, net of tax | (88,376 | ) | (205,208 | ) | (484,178 | ) | (583,521 | ) | |||
| Attributable to owners of the Company | (88,376 | ) | (205,208 | ) | (484,178 | ) | (583,521 | ) | |||
| Ascendis Pharma A/S | |||||
| Consolidated Statements of Financial Position | |||||
| (In EUR'000s) | |||||
| December 31, | December 31, | ||||
| 2023 | 2022 | ||||
| Assets | |||||
| Non-current assets | |||||
| Intangible assets | 4,419 | 4,828 | |||
| Property, plant and equipment | 110,634 | 129,095 | |||
| Investment in associate | 5,686 | 22,932 | |||
| Other receivables | 2,127 | 1,920 | |||
| Marketable securities | - | 7,492 | |||
| 122,866 | 166,267 | ||||
| Current assets | |||||
| Inventories | 208,931 | 130,673 | |||
| Trade receivables | 35,874 | 11,910 | |||
| Income tax receivables | 802 | 883 | |||
| Other receivables | 19,097 | 12,833 | |||
| Prepayments | 38,578 | 31,717 | |||
| Marketable securities | 7,275 | 290,688 | |||
| Cash and cash equivalents | 392,164 | 444,767 | |||
| 702,721 | 923,471 | ||||
| Total assets | 825,587 | 1,089,738 | |||
| Equity and liabilities | |||||
| Equity | |||||
| Share capital | 7,749 | 7,675 | |||
| Distributable equity | (153,446 | ) | 255,673 | ||
| Total equity | (145,697 | ) | 263,348 | ||
| Non-current liabilities | |||||
| Borrowings | 534,246 | 387,556 | |||
| Lease liabilities | 84,619 | 95,400 | |||
| Derivative liabilities | 143,296 | 157,950 | |||
| Contract liabilities | 5,949 | 14,213 | |||
| Deferred tax liabilities | 5,830 | - | |||
| 773,940 | 655,119 | ||||
| Current liabilities | |||||
| Borrowings | 11,226 | 11,630 | |||
| Lease liabilities | 14,174 | 13,791 | |||
| Contract liabilities | 1,184 | - | |||
| Trade payables and accrued expenses | 94,566 | 101,032 | |||
| Other liabilities | 41,176 | 31,989 | |||
| Income tax payables | 2,299 | 5,490 | |||
| Provisions | 32,719 | 7,339 | |||
| 197,344 | 171,271 | ||||
| Total liabilities | 971,284 | 826,390 | |||
| Total equity and liabilities | 825,587 | 1,089,738 | |||
FAQ
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