Eagle Pharmaceuticals, Inc. Reports First Quarter 2016 Results; Bendeka Achieves 71% Total Market Share

WOODCLIFF LAKE, N.J.–(BUSINESS WIRE)– Eagle Pharmaceuticals, Inc. (“Eagle” or “the Company”) (Nasdaq: EGRX)
today announced its financial results for the first quarter ended March
31, 2016. Highlights of and subsequent to the first quarter of 2016
include:

Business Highlights:

• Bendeka® was launched January 28, 2016 by Eagle’s marketing partner,
  Teva Pharmaceutical Industries (Teva); total market share, as of May
  6, 2016, was 71% and 77% in core hospital outpatient and clinic
  segments combined (representing 70% of the total market);
• Eagle entered into an agreement with the National Institutes of Health
  (NIH)/National Institute on Drug Abuse (NIDA) to explore the use of
  Ryanodex® in the treatment of hyperthermia related to MDMA (Ecstasy)
  and Methamphetamine intoxication;
• Eagle entered into an agreement to divest diclofenac-misoprostsol to a
  third party in exchange for $1.75 million and a 25% royalty on net
  profits for five years; and,
• Eagle completed its first quarter with an internal salesforce fully
  focused on commercialization of Eagle’s in-market products.

Financial Highlights:

• Total revenue was $29.6 million during the first quarter of 2016
  compared to $36.3 million for the three months ended March 31, 2015;
• Product sales increased to $14.1 million during the first quarter of
  2016 compared to $3.1 million for the three months ended March 31,
  2015;
• Sales of Ryanodex grew 5% quarter over quarter to $1.9 million during
  the first quarter of 2016;
• Net loss was $896,000, or $0.06 per basic and diluted share, compared
  to net income of $19.7 million, or $1.38 per basic and $1.31 per
  diluted share, for the three months ended March 31, 2016 and 2015,
  respectively; and,
• Cash and cash equivalents were $78.3 million as of March 31, 2016.

“Our business outlook for the Company remains bright. Our bendamustine
product family offers significant opportunity for growth and is being
accepted well by physicians and patients. Assuming bendamustine generics
do not come to market, and with Bendeka gaining momentum, based on its
product profile which customers seem to prefer, we believe Bendeka is on
track to reach Teva’s and our shared goal of 90% market share or greater
and will be an important earnings driver for Eagle for years to come,”
said Scott Tarriff, President and Chief Executive Officer of Eagle
Pharmaceuticals.

“In addition to our other product candidates, we believe Ryanodex has
the potential for multiple additional clinical indications. These
opportunities in treating exertional heat stroke and ecstasy and
methamphetamine intoxication, if approved, would open up significant new
markets for the product. We are encouraged by the potential of our
products to deliver solutions that address life-threatening conditions
and improve treatment outcomes and look forward to upcoming milestones
that we expect will drive meaningful earnings growth,” concluded Tarriff.

First Quarter 2016 Financial Results

Total revenue for the three months ended March 31, 2016 was $29.6
million, as compared to $36.3 million for the three months ended March
31, 2015. A summary of total revenue is outlined below:

Product sales increased $11.1 million to $14.1 million in the first
quarter of 2016 driven by $10.3 million in net product sales of Bendeka,
5% growth in Ryanodex net product sales to $1.9 million, $0.9 million in
net sales of Docetaxel and increases in net sales of
Diclofenac-misoprostol, offset by a decrease in Argatroban product sales
to our commercial partners.

The $6.2 million increase in royalty income to $9.5 million was driven
by the launch of Bendeka during the first quarter of 2016.

License and other income in the three months ended March 31, 2016 was $6
million compared with $30 million in the prior year quarter. This $6
million reflects revenue previously deferred from the 2010 sale of a
non-core asset subject to a claw back provision, which has now expired.

Cost of revenue increased by $8.6 million to $14.5 million in the three
months ended March 31, 2016 from $5.9 million in the three months ended
March 31, 2015. This $8.6 million net increase resulted primarily from
the cost of Bendeka product sales, Docetaxel and Diclofenac-misoprostol,
offset by a decrease in cost of revenue for Ryanodex due to spoiled
inventory, and lower Argatroban product sales.

Research and development expenses increased by $0.4 million to $6.7
million in the three months ended March 31, 2016, compared to $6.3
million in the prior year quarter. The increase is due primarily to the
successful completion of the clinical treatment portion of the safety
and efficacy study of Ryanodex for exertional heatstroke, investment in
Kangio and other pipeline products, and higher R&D personnel costs
offset by a decrease in spending related to bendamustine.

SG&A expenses were $11 million in the first quarter of 2016 compared to
$4 million in the three months ended March 31, 2015. Personnel-related
expenses accounted for the bulk of the $7 million increase and were due
to overall expansion of the business.

Net loss for the first quarter was $896,000, or $0.06 per basic share
and diluted share, compared to a net income of $19.7 million, or $1.38
per basic and $1.31 per diluted share in the three months ended March
31, 2015, as a result of the factors discussed above.

Liquidity

As of March 31, 2016, the Company had $78.3 million in cash and cash
equivalents; $15 million in receivables due from Teva; $200.3 million in
additional paid in capital; and $92.3 million in stockholders’ equity.

Conference Call

As previously announced, Eagle management will host its first quarter
2016 conference call as follows:

A replay of the conference call will be available for one week after the
call’s completion by dialing 800-753-9134 (US) or 402-220-2678
(International) and entering conference call ID EGRXQ116. The webcast
will be archived for 30 days at the aforementioned URL.

About Eagle Pharmaceuticals, Inc.

Eagle is a specialty pharmaceutical company focused on developing and
commercializing injectable products that address the shortcomings, as
identified by physicians, pharmacists and other stakeholders, of
existing commercially successful injectable products. Eagle’s strategy
is to utilize the FDA’s 505(b)(2) regulatory pathway. Additional
information is available on the company’s website at www.eagleus.com.

Forward-Looking Statements

This press release contains forward-looking information within the
meaning of the Private Securities Litigation Reform Act of 1995, as
amended, and other securities laws. Forward-looking statements are
statements that are not historical facts. Words such as “will,” “may,”
“intends,” “anticipate(s),” “plan,” “enables,” “potentially,” “look
forward,” “on track,” and similar expressions are intended to identify
forward-looking statements. These statements include, but are not
limited to, statements regarding future events including, but not
limited to: the achievement of milestones under the license agreement
with Cephalon, Inc., a wholly-owned subsidiary of Teva Pharmaceutical
Industries Ltd (“Teva”), for the U.S. and Canadian rights to Eagle’s
bendamustine hydrochloride rapid infusion product and their impact on
Eagle’s profitability; and replicating the success of our sales of
Ryanodex® for our other product candidates either through joint or
direct marketing efforts,. All of such statements are subject to certain
risks and uncertainties, many of which are difficult to predict and
generally beyond Eagle’s control, that could cause actual results to
differ materially from those expressed in, or implied or projected by,
the forward-looking information and statements. Such risks include, but
are not limited to: the level of success of commercialization of the
rapid infusion bendamustine product by Teva; the success of our
commercial relationship with Teva and the parties’ ability to work
effectively together; whether Eagle and Teva will successfully perform
their respective obligations under the license agreement; difficulties
or delays in manufacturing; the availability and pricing of third party
sourced products and materials; the outcome of litigation involving any
of our products or that may have an impact on any of our products,
successful compliance with FDA and other governmental regulations
applicable to product approvals, manufacturing facilities, products
and/or businesses; general economic conditions; the strength and
enforceability of our intellectual property rights or the rights of
third parties; the timing of product launches; the successful marketing
of our products; the risks inherent in the early stages of drug
development and in conducting clinical trials; and other factors that
are discussed in Eagle’s Annual Report on Form 10-K for the year ended
December 31, 2015, and its other filings with the U.S. Securities and
Exchange Commission. Readers are cautioned not to place undue reliance
on these forward-looking statements that speak only as of the date
hereof, and we do not undertake any obligation to revise and disseminate
forward-looking statements to reflect events or circumstances after the
date hereof, or to reflect the occurrence of or non-occurrence of any
events.

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