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Update On Aralez Pharmaceuticals

Steven Goldman profile picture
Steven Goldman


  • There are early signs that the recent re-launch of Zontivity may be working.
  • As well, Yosprala sales have improved following recent marketing and pricing strategy changes, but remain a question mark.
  • Last week, the New Jersey District Court upheld Vimovo's patents in favor of Pozen (Aralez's subsidiary) and Horizon against multiple generic challengers.
  • Aralez's share price may have bottomed last month.
  • There are now reasons for cautious optimism for Aralez shareholders.

Aralez Pharmaceuticals Inc. (NASDAQ:NASDAQ:ARLZ-OLD) is a specialty pharmaceutical company headquartered in Mississauga, Ontario, Canada. Its US headquarters are located in Princeton, New Jersey, and its Irish headquarters are located in Dublin.

Until recently, 2017 has not been kind to Aralez as reflected in the price chart below. There have been a number of reasons for Aralez's poor stock performance including the disappointing U.S. launch of Yosprala (after receiving FDA approval in September), the announced reduction of more than 30% of Aralez's U.S. sales force in early March, some disappointing news relating to Toprol (including the renewal of Aralez's contract with the VA at a much lower price), liquidity concerns, some disappointing Q1 2017 royalty revenues from the licensing of Vimovo to Horizon and the entry of a Vimovo generic in Canada.

Notwithstanding the earlier bad news, Aralez's luck appears to be changing. There are a number of reasons for cautious optimism, including:

  • Early signs that the recent re-launch of Zontivity in the USA may be having a positive effect;
  • The re-pricing strategy of Yosprala implemented in late April, 2017 may be increasing Yosprala sales;
  • The positive trial outcome regarding the Vimovo patents announced June 27th; and
  • Surprisingly strong launch results in Canada for Blexten.

Note: All currency figures referenced in this article are in U.S. dollars unless otherwise indicated.

ChartARLZ data by YCharts

  • Shares outstanding: 65.4 million
  • Trading symbols: NASDAQ: ARLZ, also ARZ.TO on the TSX
  • Share price at close of trading on July 5, 2017: $1.32
  • 52-week share price range: $1.09 to $6.80
  • Market cap: $87 million at close of trading on July 5, 2017
  • Unused line of credit (Deerfield) for mutually acceptable acquisitions: $250 million
  • Cash: Approximately $65 million as of December 31, 2016
  • Debt: $75 million Convertible Debenture @ 2.5% interest; $200 million temporary acquisition line @ 12.5% interest from Deerfield

This article was written by

Steven Goldman profile picture
Steven H. Goldman, biotech enthusiast. Steven is a commercial litigation lawyer, retired from active practice in January 2021, and was a founding member of the Toronto law firm of Goldman Hine LLP. He graduated with a B.A., President's Medal recipient (1976, Carleton University, Ottawa, Ontario) and J.D. (1980, Queen's University, Kingston, Ontario). He is also the President and CEO of Comstock Metals Ltd. (TSX.V: CSL.V) a mining exploration company with a gold deposit in Saskatchewan, Canada. Steven is a member of the board of directors and audit committee of Select Sands Corp. (TSX.Venture: SNS.V and OTCQX: SLSDF). He is an advisor to E3 Lithium Limited (TSX. Venture: ETL.V) (OTC: EEMMF), an emerging lithium developer and lithium extraction technology innovator based in Alberta, Canada. He is currently a member of the Law Society of Upper Canada, an Executive member of the Ontario Bar Association, Franchise Law Section as well as a member of the American Bar Association, Franchise Forum (Associate Member). Steven was President & CEO of Speedy AutoService and Minute Muffler from December 2007 to December 31, 2009 (with approximately 160 locations across Canada). He was also a former director of Tribute Pharmaceuticals for approximately 10 years where he served on the audit committee as well as the M&A committee.

Analyst’s Disclosure: I am/we are long ARLZ. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Until February, 2016 I was a director of Tribute Pharmaceuticals which merged with Pozen to form Aralez. I have had no business relationship with Aralez since stepping down as a director in February, 2016.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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