Melinta Therapeutics, Inc. announced preliminary second-quarter sales. The company estimates net product sales in the second-quarter to be approximately $13.8 million. The figure indicates sequential growth of 17% and year-over-year growth of 51%. The Zacks Consensus Estimate for second-quarter sales stands at $14 million.
The company will announce second-quarter results on Aug 7, before market open. The Zacks Consensus Estimate stands at a loss of $2.88 per share. Estimates for the company have widened over the past 30 days. The company expects second-quarter cash and cash equivalents to be $90 million.
Shares of Melinta fell 5.5% on Jul 16 presumably due to preliminary product sales figures were below estimates. The company’s shares have decreased 0.4% so far this year compared with the industry’s decline of 1.3%.
Melinta has four marketed antibiotics — Vabomere, Minocin, Baxdela and Orbactiv — to treat infections caused by resistant gram-negative and gram-positive bacteria in hospital or community settings. In the first quarter of 2019, product sales were mainly driven by Vabomere and Minocin.
However, growth in these drugs was offset by lower sales of Baxdela and Orbactiv. The company also earns revenues from its contract research and license agreements related to Baxdela development and sales.
The company is looking to expand the label of Baxdela to include patients with community-acquired bacterial pneumonia (“CABP”). The regulatory application is under priority review with the FDA with a decision expected by Oct 24. The label expansion of Baxdela in CABP will likely drive the drugs sales. Baxdela is currently approved for acute skin and skin structure infections ("ABSSSI").
The FDA had granted approval to Paratek Pharmaceuticals’ (PRTK - Free Report) Nuzyra for CABP and ABSSSI in October last year. Nabriva Therapeutics (NBRV - Free Report) is also developing its pipeline candidate, lefamulin, for CABP.
Melinta plans to initiate a clinical study to evaluate a new formulation Orbactiv, approved for treating ABSSSI, which will lead to reduction in infusion time for the drug.
Moreover, Melinta has undertaken a few restructuring initiatives to save costs. In the fourth quarter of 2018, the company reduced its workforce by 20%. Moreover, it discontinued early research and discovery programs. The company expects to reduce operating expenses by approximately $70 million through 2019.
Moreover, the completion of the phase III study of Baxdela evaluating it in CABP patients, will also lower research and development expenses. However, selling general and administrative may rise as the company prepares for the launch of Baxdela in the expanded label, upon potential approval.
Melinta aims to become the largest branded antibiotics-focused company over the long term. In a bid to achieve its goal, the company had acquired the infectious disease business unit of The Medicines Company last year.
Melinta currently carries a Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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