As I said in the previous article on the company, my metric for Aptevo Therapeutics (NASDAQ:APVO) having a good Q2'19 quarter was even a slight increase in IXINITY revenue (the company's commercial Hemophilia B drug). The company reported IXINITY revenue of $7.4 million, which was up by $0.4M sequentially. As such, I consider the quarter good.
The company lost $13.3M for the quarter or $0.30 per share, beating slightly on revenue but missing adjusted EPS by $0.04. However it's important to note that the company had significant one time costs relating to the multi-batch manufacturing of IXINITY, as well as costs related to its upcoming pediatric expansion trial of IXINITY.
For example, approximately $0.9M was a one time cost associated with the testing of the company's new 3,000 IU IXINITY assay launched at the end of June 2019, and $0.5M in inventory write-offs.
In spite of the loss for the quarter the company reiterates a cash burn of $36-40M for 2019, because is will not have these significant expenses in the second half. As such its cash burn will fall significantly.
As for the company's pediatric expansion for IXINITY, it's important for investors to understand just how much it might contribute to the company's revenue in the future.
According to the company,
Approximately 33% of people treated for Hemophilia B in the U.S. are under the age of 13 years, representing a sizeable new addressable market, should IXINITY receive a pediatric label expansion.
IXINITY is currently marketed exclusively in the United States by Aptevo. The global Hemophilia B market in 2016 is estimated to be approximately $1.02 billion and projected to grow to $1.3 billion by 20262. Approximately 59% of the estimated Factor IX global market is concentrated outside the United States as measured by volume (international units).
In
