WEB NEWS Comments & Business Outlook
Second quarter 2014 Financial Results
Total revenues were $4.1 million for the second quarter, down $437,000 as compared to $4.5 million for the same period in the prior year.
Net loss per common share: basic and diluted was $(0.21) vs. last years $(0.33)
The decline in revenue growth, compared to the same quarter last year, was primarily the result of two factors: 1) the top line impact of the company's August 2012 transaction with its new Latin America partner, More Pharma Corporation, and 2) the termination of partnerships in the United States with Union Springs and Onset Pharmaceuticals last year.
"We had a solid quarter and were especially pleased with our EBITDAS results," said Jim Schutz, Oculus CEO. "The IPO process for our drug subsidiary, Ruthigen, continues and we have commenced our planning for the future, post-Ruthigen. Our EBITDAS results for the quarter highlight that on a pro forma basis, after Ruthigen separates, Oculus would immediately be EBITDAS positive. We are excited about the Ruthigen IPO process and life after separation."
Shareholder Letters
Shareholder letter from 8/5/2013
Dear Fellow Stockholder of Oculus Innovative Sciences, Inc.:
Our fiscal 2013 was a year of significant change at Oculus, change that I firmly believe will set the stage for the future growth and success of our company. As you know, I recently assumed the responsibilities as chief executive officer of Oculus. This focus on change, and the opportunity to create our own future, has further energized the team, which I am most honored to lead at this exciting time. In February 2013, we crafted a transition plan to set the groundwork for Oculus to thrive for years to come. Its initial five major initiatives are as follows:
Please see link here for full letter.
Hot Bio-Tech News
PETALUMA, Calif., July 2, 2013 (GLOBE NEWSWIRE ) -- Oculus Innovative Sciences, Inc. (Nasdaq:OCLS) a global healthcare company that designs, manufactures and markets prescription and non-prescription products in 27 countries, today announced the allowance of a Mexican patent for the use of the company's novel antimicrobial surgical solution in the treatment and prevention of peritonitis. The imminent issuance of this Mexican patent, expiring in 2027, provides Oculus' Latin American partner, More Pharma, the opportunity to pursue a new drug candidate in Latin America in parallel to Oculus' subsidiary, Ruthigen, Inc.'s, development of the drug for the U.S. market. The novel new formulation, RUT58-60, is an advanced next-generation Microcyn Technology drug candidate specifically engineered for use in invasive surgical procedures, including peritonitis.
Upon issuance of the patent, Oculus' intellectual property estate (either owned or licensed to Oculus) will include 36 issued U.S. and international patents as well 109 pending applications (including U.S. provisional applications) directed to chemical compositions, apparatuses, methods of manufacturing and therapeutic uses.
The company's Mexican and Latin American partner, More Pharma, has also received regulatory approval to market the company's Microdacyn60� family of products in Honduras. Separately, Oculus also received approval to launch a new Microcyn-based medical device in Indonesia. Finally, Oculus added two new partners in the European Union to sell the Dermacyn� family of products in Finland and Serbia.
Bruce Thornton, executive vice president of Oculus said: "Our three-pronged business strategy of adding new products and indications, new partners and new territories continues to bear fruit as we grow the Microcyn-based product portfolio in tandem with our international footprint. Now marketed in 27 countries, we are tracking to our target of being commercialized in 30 countries by March 2014. Relative to product portfolio expansion, this peritonitis patent in Mexico is a solid win for our alliance � allowing our partner, More Pharma, to pursue this sizable surgical suite opportunity in Mexico and the Latin American countries�while in parallel, our Ruthigen subsidiary, targets the U.S. surgical suite with the same RUT58-60 drug formulation."
Peritonitis is an inflammation of the peritoneum, the thin tissue that lines the inner wall of the abdomen and covers most of the abdominal organs. Peritonitis may be localized or generalized, and may result from infection (often due to rupture of a hollow organ as may occur in abdominal trauma or appendicitis) or from a non-infectious process
Dilutive Securities
424B filed on 6/27/2013
This prospectus supplement relates to the issuance of 42,405 shares of our common stock to certain service providers.
Comments & Business Outlook
Fourth Quarter 2013 Financial Results
Total revenues were $3.3 million for the fourth quarter ended March 31, 2013, compared to $3.4 million for the same period in the prior year.
Gross profit related to sales of Microcyn�-based products of approximately $2.2 million, or 69% of product revenues, during the three months ended March 31, 2013, compared to a gross profit of $2.1 million, or 67% of product revenues, for the same period in the prior year.
Net loss per common share: basic and diluted was $ (0.44) vs. last years $ (0.43)
"Our most important near term goal is to support our wholly owned subsidiary, Ruthigen, in its intended initial public offering. We believe Ruthigen will enable us to develop our next-generation technology as a drug designed for use in the surgical suite," said Jim Schutz, Oculus CEO. "Further, we believe the separation of Ruthigen from our company will create additional value for our respective shareholders - ours and theirs - while offering healthcare providers a new tool in the fight to reduce infection and enabling Oculus to reduce its operating expenses while targeting EBITDAS breakeven. Specific to Oculus' continued growth, we anticipate our More Pharma partnership south of the border will continue to increase our operating profitability while providing strong long-term growth prospects with continued high unit growth, although initially reducing short-term top line growth. We predict additional growth for Oculus will also be generated by new products, new partners and new territories in the United States and abroad."
Comments & Business Outlook
PETALUMA, Calif., June 6, 2013 (GLOBE NEWSWIRE ) -- Oculus Innovative Sciences (Nasdaq:OCLS ) announced today that the company has entered into two key agreements, which establish the license and supply as well as shared services with its wholly owned subsidiary, Ruthigen, Inc., which is focused on the discovery, development, and commercialization of pharmaceutical-grade hypochlorous acid-based therapeutics. The company expects to negotiate and enter into a third agreement (Separation Agreement) governing other terms of their business relationship. The effective date for all three agreements would be the closing date of Ruthigen's proposed initial public offering, if any should occur.
Pursuant to the license and supply agreement, Oculus agreed to exclusively license certain of its proprietary technology to Ruthigen to enable Ruthigen's research and development and commercialization of the newly discovered RUT58-60, and any improvements to it, in the United States, Canada, European Union and Japan, referred to as the Territory, for certain invasive procedures in human treatment as defined in the license and supply agreement.
In addition, the license and supply agreement provides Ruthigen with the exclusive option, exercisable within the first five years following the effective date of the agreement, to expand the license to certain other therapeutic indications upon payment of a license expansion fee of $10 million within the first two years following the effective date of the agreement or, after the two-year period, the same fee plus certain out-of-pocket costs Oculus may incur in developing products for any of the indications. Additionally, Oculus will be prohibited from using the licensed proprietary technology to sell products that compete with Ruthigen's products within the Territory, and Ruthigen cannot sell any device or product that competes with Oculus products being sold or developed as of the effective date of the license and supply agreement.
Ruthigen will be required to make a total of $8,000,000 in payments to Oculus based upon the completion of certain development and other future milestones, and at the time of drug approval, if any should occur, supplemented with royalty payments, which will vary between three percent and 20 percent, increasing upon achievement of various net annual sales thresholds and dependent upon the country of sale.
Oculus and Ruthigen also entered into a shared services agreement that would take effect upon the completion of Ruthigen's proposed initial public offering, if any should occur, pursuant to which Oculus will provide Ruthigen with general services, including general accounting, human resources, laboratory personnel and shared R&D resources, while Ruthigen plans to establish an independent facility and systems. As a wholly owned subsidiary, Ruthigen will be financed by Oculus until the completion of the proposed initial public offering, if any should occur, and after such event, Ruthigen would become responsible for its own expenses.
Hot Bio-Tech News
PETALUMA, Calif., May 1, 2013 (GLOBE NEWSWIRE ) -- Oculus Innovative Sciences, Inc. (Nasdaq:OCLS) a global healthcare company that designs, manufactures and markets prescription and non-prescription products in over 20 countries, today announced new regulatory approvals for Microcyn�-based antiseptic products, under the brand name Microdacyn�, in Panama and El Salvador.
Bruce Thornton, executive vice president of Oculus said: "The growth of our Microcyn-based product portfolio and expansion of our international footprint are indeed synergistic. Working in close collaboration with strong global partners, such as More Pharma, we continue�week after week�to announce new regulatory approvals, new products and new territories to be served. At the end of the day, an expanded global population benefits from the availability of the Microcyn technology."
Oculus' Latin American partner, More Pharma, intends to begin commercialization of these new antiseptic products in both countries in the summer of 2013.
Guillermo Ibarra, More Pharma's CEO said, "Since we acquired the license to the Microcyn-based products in August of 2012, our customers have come to recognize the Microdacyn brand as a highly efficacious product for both advanced wound care and dermatology, allowing us to build upon Oculus' established success in Mexico while we further expand these product offerings into the other countries of South and Central America, and the Caribbean."
Hot Bio-Tech News
PETALUMA, Calif., July 10, 2012 (GLOBE NEWSWIRE ) -- Oculus Innovative Sciences, Inc. (Nasdaq:OCLS) today announced that the Chinese State Food and Drug Administration (SFDA) has approved Microcyn® Hydrogel for moistening, repairing and healing of acute and chronic wounds in China. This approval allows Oculus' Chinese partner, Shanghai Sunvic, to market Microcyn Hydrogel in both the over-the-counter and professional healthcare markets in China. Shanghai Sunvic plans to launch the Microcyn hydrogel in the third quarter of 2012.
This approval follows successful completion of randomized trials at five major Chinese hospitals for use of Microcyn Hydrogel in the treatment of acute wounds, diabetic foot care and post-surgical incisions.
"The randomized trials in China followed by the SFDA approval provides Oculus with a significant business opportunity underwritten by a very strong partner in Shanghai Sunvic," said Bruce Thornton, vice president of international sales for Oculus Innovative Sciences. "With nearly 1.3 billion people, China represents a major healthcare market opportunity for Oculus and our partners."
Oculus Innovative Sciences entered into an agreement with Shanghai Sunvic in 2011 for the distribution of Microcyn-based products in China. The partnership allows Oculus and the Microcyn Technology to gain a foothold in China via new product launches supported by Shanghai Sunvic Technology Company's national sales network.
"As one of the major medical device groups in China, we believe our medical community will enthusiastically embrace an anti-infective technology that is proven both safe and effective in treating topical infection," said Water Chang, president of Shanghai Sunvic. "We see the SFDA's rapid approval indicative of a marketplace eager for an anti-infective that works as promised without promoting bacterial resistance as is the case for many of today's antibiotics."
