Aquestive Therapeutics Reports 4% Revenue Growth, Net Loss in Q3 2024

Aquestive Therapeutics, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved revenues of $13.5 million for the third quarter, a 4% increase from $13.0 million in the same period of 2023. For the nine months ended September 30, 2024, total revenues reached $45.7 million, up 22% from $37.4 million in the prior year. This growth was primarily driven by a substantial increase in license and royalty revenue, which surged 314% to $14.5 million, largely due to the one-time recognition of deferred revenues from licensing agreement terminations.

Despite the revenue growth, the company reported a net loss of $11.5 million for the third quarter, compared to a loss of $2.0 million in the same quarter of 2023. For the nine-month period, the net loss was $27.1 million, a stark contrast to a net income of $241,000 in the previous year. The increase in losses was attributed to higher selling, general, and administrative expenses, which rose 64% to $12.1 million for the third quarter, and 54% to $34.2 million for the nine months, driven by increased personnel costs, consulting fees, and one-time severance payments.

The company’s cash and cash equivalents significantly improved, totaling $77.9 million as of September 30, 2024, compared to $23.9 million at the end of 2023. This increase was bolstered by net cash provided by financing activities of $83.4 million, primarily from an underwritten public offering completed in March 2024, which generated net proceeds of $72.9 million.

Strategically, Aquestive launched its proprietary product, Libervant® (diazepam) Buccal Film, in April 2024, targeting seizure clusters in pediatric patients aged 2-5 years. The company is also advancing its product pipeline, including Anaphylm™ (epinephrine) Sublingual Film, with plans for FDA submission and potential launch in 2026. However, the company faces challenges, including reliance on a single customer, Indivior, which accounted for a significant portion of its revenue, and the anticipated decline in Suboxone revenues due to increasing competition from generics.

In terms of operational adjustments, the company dissolved its subsidiaries as of March 31, 2024, and no longer prepares consolidated financial statements, a move that did not materially impact its financial position. The company continues to evaluate its accounting policies and the potential impacts of new accounting standards on its financial reporting.