Paratek Pharmaceuticals Announces Second Quarter 2022 Revenue of $29.6 Million

Rhea-AI Summary

Paratek Pharmaceuticals reported Q2 2022 financial results, showing total revenue of $29.6 million, a significant rise from $19.6 million year-over-year. The core commercial business for NUZYRA generated $25.1 million in net U.S. sales, up 68% from the prior period. Despite this growth, the company reported a net loss of $17.6 million, or $(0.33) per share. Paratek anticipates its cash reserves of $69.4 million will sustain operations through the end of 2023. The FDA granted Fast Track designation for NUZYRA in treating Non-Tuberculous Mycobacteria (NTM), further enhancing its product pipeline.

Positive

• NUZYRA's net U.S. sales reached $25.1 million, a 68% increase from Q2 2021.
• Total revenue increased to $29.6 million compared to $19.6 million in the same quarter last year.
• Fast Track designation granted by the FDA for NUZYRA in treating NTM.
• Cash reserves of $69.4 million anticipated to last through the end of 2023.

Negative

• Reported a net loss of $17.6 million for Q2 2022.
• Selling, general and administrative expenses increased to $30.3 million from $27.1 million in the prior year.

-- NUZYRA® (omadacycline) Generated Net U.S. Sales of $25.1 Million from the Core Commercial Business, a 68% increase over Second Quarter 2021

-- Company Reiterates Full Year 2022 Financial Guidance

BOSTON, Aug. 03, 2022 (GLOBE NEWSWIRE) --  Paratek Pharmaceuticals, Inc. (Nasdaq: PRTK), today reported financial results and provided an update on corporate activities for the quarter ended June 30, 2022.

“The strong year-over-year growth of NUZYRA’s core commercial business is a result of accelerating product demand and the disciplined execution of our community sales force expansion, which was initiated in the first quarter of 2021,” said Evan Loh, M.D., chief executive officer at Paratek. “We expect demand trends for NUZYRA will continue through the end of the year. We are pleased with the improved access to physicians and the breadth of NUZYRA’s commercial and government payer access, resulting in strong performance in both the hospital and community settings. Based on our results to date, we reiterate our full-year 2022 financial guidance.”

Recent Highlights

• Expansion of NUZYRA’s Core Commercial Business in the Primary Care Setting: The second wave of expansion into the community, which includes an increase in the number of sales representatives, medical science liaisons, and territories covered in the primary care setting, is ongoing and anticipated to be completed by the end of 2022.
  
  
• FDA Grants Fast Track Designation for the Treatment of Non-Tuberculous Mycobacteria (NTM), including both Mycobacterium abscessus and Mycobacterium avium Complex: The Fast Track designation further validates the unmet need, allows for more frequent dialogue with the FDA and creates the opportunity to expedite development of NUZYRA as an option to help patients with NTM.
  
  
• Progress of the BARDA Project BioShield Anthrax Program: The company has continued to execute on its contractual deliverables to develop NUZYRA through the animal rule for both the treatment and post-exposure prophylaxis of pulmonary anthrax. In addition, the onshoring of tablet manufacturing and validation are complete, with commercial availability of U.S.-based NUZYRA tablets anticipated in the second half of this year.
  
  
• Expansion of NUZYRA Scientific Exchange to Primary Care Providers: A supplement to the Journal of Family Practice, focused on NUZYRA’s role in the treatment of serious skin infections and pneumonia, was published in June and delivered to over 100,000 primary care and family medicine providers. The supplement, funded by Paratek, is also available electronically and can be accessed through the following link: https://cdn.mdedge.com/files/s3fs-public/sf322107_mdedge_jfp_paretek_v6kb.pdf.
  

Financial Results
Total revenue for the second quarter of 2022 was $29.6 million compared to $19.6 million for the same period in the prior year when excluding the first procurement of NUZYRA under the BARDA contract of $37.9 million.  Revenue earned in the second quarter of 2022 was comprised of $25.1 million in net U.S. sales from the NUZYRA core commercial business, a 68% increase from $14.9 million for the same period in the prior year, $4.0 million in revenue earned under the BARDA contract, and $0.6 million in royalty revenue.

Research and development (R&D) expenses were $7.6 million for the second quarter of 2022, compared to $6.5 million for the same period in the prior year. The increase in R&D expenses was primarily the result of costs incurred for analytical testing and other non-clinical studies.

Selling, general and administrative (SG&A) expenses were $30.3 million for the second quarter of 2022, compared to $27.1 million for the same period in the prior year. The increase in SG&A expenses was primarily the result of costs incurred for the NUZYRA community expansion.

Paratek reported a net loss of $17.6 million, or $(0.33) per share, and net income of $9.7 million, or $0.20 per share, for the second quarter of 2022 and 2021, respectively.

Based upon the company’s current operating plan, Paratek anticipates its existing cash, cash equivalents and marketable securities of $69.4 million as of June 30, 2022, provides for a cash runway through the end of 2023 with a pathway to cash flow break-even.

Call and Webcast
Paratek’s earnings conference call for the quarter ended June 30, 2022, will be broadcast at 4:30 p.m. ET on August 3, 2022. The live audio webcast can be accessed under "Events and Presentations" in the Investor Relations section of Paratek’s website at www.ParatekPharma.com.

Domestic investors wishing to participate in the call should dial 877-300-8521 and international investors should dial +1-412-317-6026. The conference ID is 10169245. Investors can also access the call at https://viavid.webcasts.com/starthere.jsp?ei=1559934&tp_key=28146cfe9f

Website Information
Paratek routinely posts important information for investors on the Investor Relations section of its website at www.ParatekPharma.com. Paratek intends to use this website as a means of disclosing material, non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of Paratek’s website, in addition to following its press releases, U.S. Securities and Exchange Commission (SEC) filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, Paratek’s website is not incorporated by reference into, and is not a part of, this document.

About Paratek Pharmaceuticals, Inc.
Paratek Pharmaceuticals, Inc. is a commercial-stage biopharmaceutical company focused on the development and commercialization of novel life-saving therapies for life-threatening diseases or other public health threats for civilian, government and military use.

The company’s lead commercial product, NUZYRA® (omadacycline), is a once-daily oral and intravenous antibiotic available in the United States for the treatment of adults with community-acquired bacterial pneumonia (CABP) and acute bacterial skin and skin structure infections (ABSSSI). Paratek has a collaboration agreement with Zai Lab for the development and commercialization of omadacycline in the greater China region and retains all remaining global rights.

Paratek is also conducting a Phase 2b study with NUZYRA in a rare disease, non-tuberculous mycobacterial (NTM) pulmonary disease, caused by Mycobacterium abscessus complex. Paratek estimates this opportunity represents a potential $1 billion addressable market in the United States.

Paratek exclusively licensed U.S. rights and rights to the greater China territory for SEYSARA^® (sarecycline), a once-daily oral therapy for the treatment of moderate to severe acne vulgaris, to Almirall, LLC. Paratek retains the development and commercialization rights for sarecycline in the rest of the world.

In 2019, Paratek was awarded a contract from the U.S. Department of Health and Human Services’ Biomedical Advanced Research and Development Authority (BARDA), now valued at up to $304 million, to support the development of omadacycline for pulmonary anthrax and the U.S.-based commercial manufacturing of NUZYRA.

For more information, visit www.ParatekPharma.com or follow us on LinkedIn and Twitter.

About NUZYRA®
NUZYRA^® (omadacycline) is a novel antibiotic with both once-daily oral and intravenous (IV) formulations for the treatment of community-acquired bacterial pneumonia (CABP) and acute bacterial skin and skin structure infections (ABSSSI). A modernized tetracycline, NUZYRA is specifically designed to overcome tetracycline resistance and exhibits activity across a spectrum of bacteria, including Gram-positive, Gram-negative, atypicals and other drug-resistant strains.

Forward Looking Statements
This press release contains forward-looking statements including statements related to our overall strategy, products, prospects, potential and expected results, including statements about our expectations regarding the Company's future growth and performance, full year financial and revenue projections, expected demand trends for NUZYRA, the status of our Phase 2b NTM abscessus study and the potential market opportunity of NTM, our plans to broaden the Company's sales efforts including into the community, our expectation to continue to execute and deliver on our BARDA contract including the expected timing of U.S. based tablet production, and our anticipated cash runway.

This press release contains forward-looking statements. All statements, other than statements of historical facts, included in this press release are forward-looking statements, and are identified by words such as "advancing," "expect," "look forward," "anticipate," "continue," and other words and terms of similar meaning. These forward-looking statements are based upon our current expectations and involve substantial risks and uncertainties. We may not actually achieve the plans, carry out the intentions or meet the expectations or projections disclosed in our forward-looking statements and you should not place undue reliance on these forward-looking statements. Our actual results and the timing of events could differ materially from those included in such forward-looking statements as a result of these risks and uncertainties. These and other risk factors are discussed under "Risk Factors" and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2021 and our other filings with the Securities and Exchange Commission. We expressly disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein.

Contact
Investor Relations:
Hans Vitzthum
LifeSci Advisors
ir@ParatekPharma.com
Phone: 617-430-7578

Media:
Christine Fanelle
Scient PR
Christine@scientpr.com
Phone: 215-595-5211

Paratek Pharmaceuticals, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except for share and par value amounts)
(unaudited)

	June 30, 2022				December 31, 2021
Assets
Current assets
Cash and cash equivalents	$	39,505			$	80,367
Marketable securities		29,886				15,107
Restricted cash		—				125
Accounts receivable, net		28,521				29,438
Inventories		13,083				11,020
Other receivables		3,297				3,679
Prepaid and other current assets		13,476				12,364
Total current assets		127,768				152,100
Long-term restricted cash		125				125
Fixed assets, net		712				794
Goodwill		829				829
Right-of-use assets		1,352				1,757
Long-term inventories		32,662				27,767
Other long-term assets		247				497
Total assets	$	163,695			$	183,869
Liabilities and Stockholders’ Deficit
Current liabilities
Accounts payable	$	2,257			$	5,394
Accrued expenses		25,661				23,446
Other current liabilities		2,182				2,457
Total current liabilities		30,100				31,297
Long-term debt		257,153				254,428
Long-term lease liabilities		854				1,308
Accrued long-term compensation		22,339				21,846
Other liabilities		2,616				2,777
Total liabilities	$	313,062			$	311,656
Stockholders’ deficit
Preferred stock:
Undesignated preferred stock: $0.001 par value, 5,000,000 shares authorized; no shares issued and outstanding		—				—
Common stock, $0.001 par value; 200,000,000 shares authorized; 54,778,638 shares issued and outstanding as of June 30, 2022; and 200,000,000 shares authorized; 51,711,809 shares issued and outstanding as of December 31, 2021		55				52
Additional paid-in capital		753,223				739,053
Accumulated other comprehensive income		(233	)			(9	)
Accumulated deficit		(902,412	)			(866,883	)
Total stockholders’ deficit		(149,367	)			(127,787	)
Total liabilities and stockholders’ deficit	$	163,695			$	183,869

Paratek Pharmaceuticals, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except share and per share amounts)
(unaudited)

	Three Months Ended June 30,								Six Months Ended June 30,
		2022				2021				2022				2021
Product revenue, net	$	25,082			$	52,803			$	45,000			$	66,009
Government contract service revenue		1,896				2,113				4,068				3,086
Government contract grant revenue		2,082				2,087				4,182				3,701
Collaboration and royalty revenue		577				489				1,248				1,123
Net revenue	$	29,637			$	57,492			$	54,498			$	73,919
Expenses:
Cost of product revenue		4,878				9,778				8,372				12,529
Research and development		7,592				6,519				15,069				12,057
Selling, general and administrative		30,335				27,106				57,937				49,465
Total operating expenses		42,805				43,403				81,378				74,051
Income (loss) from operations		(13,168	)			14,089				(26,880	)			(132	)
Other income and expenses:
Interest income		133				11				240				36
Interest expense		(4,546	)			(4,344	)			(9,025	)			(8,651	)
Other gains (losses), net		(38	)			(39	)			138				118
Net income (loss)	$	(17,619	)		$	9,717			$	(35,527	)		$	(8,629	)
Other comprehensive income (loss)
Unrealized gain (loss) on available-for-sale securities, net of tax		(53	)			—				(224	)			(4	)
Comprehensive income (loss)	$	(17,672	)		$	9,717			$	(35,751	)		$	(8,633	)
Basic and diluted net loss per common share	$	(0.33	)		$	0.20			$	(0.67	)		$	(0.18	)
Weighted average common stock outstanding
Basic		53,023,350				47,122,717				53,310,091				46,894,812
Diluted		53,023,350				48,945,736				53,310,091				46,894,812

FAQ

What were Paratek's Q2 2022 financial results?

Paratek reported total revenue of $29.6 million for Q2 2022, with a net loss of $17.6 million.

How much did NUZYRA generate in U.S. sales in Q2 2022?

NUZYRA generated $25.1 million in net U.S. sales in Q2 2022, a 68% increase from the previous year.

What is the cash runway for Paratek?

Paratek has cash reserves of $69.4 million, providing a runway through the end of 2023.

What regulatory milestone did NUZYRA achieve?

NUZYRA received Fast Track designation from the FDA for the treatment of Non-Tuberculous Mycobacteria.