Emmaus Life Sciences Reports 2023 Financial Results

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TORRANCE, Calif., July 3, 2024 /PRNewswire/ -- Emmaus Life Sciences, Inc. (OTCPK: EMMA), a commercial-stage biopharmaceutical company and leader in the treatment of sickle cell disease, today reported on its financial condition and results of operations as of and for the year ended December 31, 2023.

(PRNewsfoto/Emmaus Life Sciences, Inc.)
(PRNewsfoto/Emmaus Life Sciences, Inc.)

Recent Highlights

"We are pleased to report that we were able to increase annual net revenues in 2023 by nearly 61% as compared to 2022 on the strength of growth in sales in the MENA region, as well as in the U.S.  As a result of the increased net revenues and the elimination of spending unrelated to Endari sales, we were able to increase income from operations by approximately $10 million to $3.5 million and to reduce our net loss by $6.9 million to $3.7 million," remarked Willis Lee, Chairman of the Board and Co-president of Emmaus. "We also achieved an important strategic objective in the fourth quarter of the year by disposing of our equity interest in our former Japanese joint venture," he added.

"The much-improved financial results for 2023 accomplished under our new management were adversely affected by a slowdown in Endari sales in the fourth quarter due to a shortage of finished goods inventory, which also has had a material, adverse impact on sales in Q1 2024 and to date in Q2," noted George Sekulich, Emmaus's Co-President and Chief Commercial Officer. "We have now remedied the shortage and begun fulfilling our order backlog, which stood at approximately $4.6 million as of May 24, 2024.  We are also working with alternative manufacturers to avoid similar shortages in the future," he added.

Financial and Operating Results

Net Revenues. Net revenues for the year were $29.6 million, the highest annual revenues to date, compared to $18.4 million in 2022.  The increased net revenues were attributable to substantially increased net revenues from sales in the Middle East North Africa (MENA) region, as well as increased U.S. sales compared to 2022.

Operating Expenses. Total operating expenses for the year were $24.7 million compared with $22.4 million in 2022. The increase was due primarily to increases of $1.7 million in general and administrative expenses and, $1.1 million in selling expenses, partially offset by a $0.5 million decrease in research and development expenses.

Income From Operations. Income from operations for the year was $3.5 million compared to a loss from operations of $6.6 million in 2022.  The increase resulted from higher net revenues, partially offset by increased general and administrative expenses and selling expenses compared to 2022.

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