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Juniper Pharmaceuticals Announces Strategic Reprioritization | ||
By: PR Newswire Association LLC. - 18 Sep 2017 | Back to overview list |
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BOSTON, Sept. 18, 2017 /PRNewswire/ -- Juniper Pharmaceuticals (Nasdaq: JNP), a women's health therapeutics company, today announced a corporate reprioritization to allow the Company to focus its resources on the core businesses of Crinone® progesterone gel and Juniper Pharma Services (JPS), both of which continue to drive strong double-digit annual growth. As part of this initiative, the Company will begin to focus its research and development organization on JNP-0201 for hormone replacement therapy (HRT) as the Company's potential lead intravaginal ring (IVR) program and seek to potentially partner its other IVR programs. These actions are expected to result in cost savings that will position Juniper to achieve at least a cash flow neutral position for 2018. "This initiative streamlines expenses and provides us with financial flexibility as we assess growth opportunities to advance our strategy," said Alicia Secor, Juniper's President and CEO. "Growth of Crinone in key markets, combined with our efforts to expand both the JPS technical and geographical reach, are expected to deliver continued margin expansion and increased cash flows. In addition, we are also working to drive additional growth for the long-term by extending our Crinone relationship with Merck KGaA. In support of our strategic prioritization, we also plan to execute a more focused approach to our IVR portfolio and look to business development strategies to advance non-core areas of our pipeline." Juniper's base business continues to deliver strong growth with Crinone and JPS combined revenues of $25.2 million through the first six months of 2017. The Company achieved 17% annual growth for its combined core businesses in 2016, and expects a similar level of strong growth for 2017. In addition, Juniper ended the second quarter of 2017 with a cash balance of $21.5 million. As a result of the focused R&D strategy, the Company will implement an approximately 8% headcount reduction, primarily in the areas of new product R&D, resulting in an estimated annual savings in personnel-related costs of approximately $1.9 million beginning in 2018. The Company also expects to reduce its overall new product R&D spend in connection with its revised focus. As a result of the reduction in force, the Company estimates that it will incur aggregate charges of approximately $0.6 million to $0.7 million for one-time severance and other employee related costs and future obligations due under our manufacturing and development contracts in the third quarter of 2017, of which approximately $0.4 million to $0.5 million are expected to result in cash expenditures by the end of 2017. In addition to the headcount reduction, Bridget Martell, M.D., Chief Medical Officer, will be stepping down from the Company effective today, September 18, 2017. Ms. Secor added: "These changes reflect our commitment to the prudent use of capital as we build shareholder value. We thank Dr. Martell and our departing colleagues for their dedicated service to Juniper. Their efforts have advanced our IVR technology and positioned us to build value by prioritizing a lead candidate for internal development and pursue a partnering strategy for other assets." Focused R&D Organization Juniper's IVR pipeline candidates, JNP-0101, JNP-0201 and JNP-0301, remain on track for topline pre-clinical data by year end, studies which are designed to support clinical development in overactive bladder (OAB), HRT and the prevention of pre-term birth, respectively. As part of its focused R&D strategy the Company will prioritize these programs as follows:
"The current FDA guidance around the clinical and regulatory pathway for the development of JNP-0201 as a hormone replacement therapy is clearly defined and provides a strong rationale for prioritizing this program," stated Ms. Secor. "With no FDA-approved combination product for HRT, and the differentiating aspect of a combination natural hormone IVR for monthly administration, focusing our resources on the advancement of JNP-0201 provides us with the highest potential return on investment. For JNP-0301 and JNP-0101, the completion of the on-going in vivo studies will enable us to generate important data in a cost-effective manner in support of our partnering efforts." Driving Continued Growth in Core Businesses Juniper's core businesses consist of Crinone, which is partnered with Merck KGaA for sale in markets outside of the U.S, and JPS, which provides world-class, fee-for-service contract development and manufacturing services to pharmaceutical and biotechnology companies around the world. Juniper expects continued growth in these businesses, supported by the following:
"We have delivered double-digit growth for both Crinone and JPS, and we will continue to focus our efforts to drive additional growth in these key businesses," stated Ms. Secor. "We have doubled the amount of Crinone we have produced for our partner Merck KGaA in the past four years, and are committed to ensuring that we are well-positioned to meet the growing demand for this product. Through JPS, we have quickly established a strong reputation as being a trusted and expert provider for the development of challenging and complex molecules. With our increased capacity and offerings, we are well-positioned to capture additional growth as the pace of outsourcing of product development activities increases." About Juniper Pharmaceuticals Juniper Pharmaceuticals™ is a trademark of Juniper Pharmaceuticals, Inc., in the U.S. and EU. CRINONE® is a registered trademark of Merck KGaA, Darmstadt, Germany, outside the U.S. and of Allergan plc in the U.S. Forward Looking Statements Investor Contact: To receive Juniper's press releases, SEC filings or calendar alerts by email click here.
View original content with multimedia:http://www.prnewswire.com/news-releases/juniper-pharmaceuticals-announces-strategic-reprioritization-300521425.html SOURCE Juniper Pharmaceuticals, Inc. |
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