Aytu BioPharma, Inc. reported its financial results for the three months ended September 30, 2024, revealing a net revenue of $16.6 million, a decrease of 7% from $17.8 million in the same period of 2023. The decline was primarily attributed to a significant drop in revenue from the Pediatric Portfolio, which fell from $2.6 million to $1.3 million, while revenue from the ADHD Portfolio increased slightly from $15.1 million to $15.3 million.

The company achieved a gross profit of $12.0 million, down from $13.0 million year-over-year, reflecting a gross profit margin of 72% compared to 73% in the prior year. Aytu reported a loss from operations of $930,000, slightly higher than the loss of $867,000 in the previous year. However, the company showed a notable improvement in income from continuing operations before income tax, reporting $1.5 million compared to a loss of $7.5 million in the same quarter of 2023. This resulted in a net income from continuing operations of $1.1 million, a significant turnaround from the loss of $7.5 million reported a year earlier.

The company’s net income for the quarter was $1.5 million, compared to a net loss of $8.1 million in the prior year, translating to a basic net income per share of $0.24, up from a loss of $1.48 per share in 2023. The effective tax rate for the quarter was 27%, a change from 0% in the previous year, due to limitations on losses under Section 382 of the Internal Revenue Code.

Aytu's total assets decreased to $115.8 million from $118.1 million as of June 30, 2024, while total current liabilities slightly decreased to $61.3 million. The company reported a total stockholders' equity of $29.8 million, an increase from $27.7 million in the previous quarter.

Strategically, Aytu divested its Consumer Health business in July 2024, which is now reported as a discontinued operation. The company is focusing on its core pharmaceutical products, particularly in ADHD and pediatric conditions. Recent collaborations include exclusive agreements with Medomie Pharma for sales in Israel and Lupin Pharma for sales in Canada, with regulatory approvals expected within 18 to 24 months.

Additionally, Aytu incurred $0.8 million in restructuring costs related to the closure of its Grand Prairie, Texas manufacturing site, and has transitioned all manufacturing of ADHD products to a U.S.-based third-party contract manufacturer to enhance profitability. The company also reported a significant unrealized gain of $2.9 million from derivative warrant liabilities, contrasting with a loss of $5.9 million in the same period last year.