Exhibit 99.1
Intersect ENT Reports First Quarter 2019 Results
MENLO PARK, Calif.—May 6, 2019 — Intersect ENT®, Inc. (NASDAQ:XENT), a company dedicated to transforming care for patients with ear, nose and throat conditions, today reported financial results for the first quarter ended March 31, 2019.
Total revenue was $26.7 million for the first quarter of 2019 compared to $24.7 million for the same period of 2018, an increase of 8%. This increase resulted primarily from growth in adoption of the PROPEL® family of products and from adoption of SINUVA®, which contributed $0.9 million, or 4% of first quarter 2019 revenue.
“We continue to work closely with physicians on the introduction of SINUVA and are pleased with the positive feedback regarding patient outcomes,” said Lisa Earnhardt, president and CEO of Intersect ENT. “While we have made strides in facilitating product access and sales force balance, we are implementing further measures to continue to improve these areas. We are encouraged by the preliminary decision by CMS to assign a J code, and remain excited about the opportunity for SINUVA.”
Gross profit for the quarter was $22.0 million and gross margin was 83%, compared to gross profit of $19.2 million and gross margin of 78% for the same period of 2018. This increase in gross profit reflects a charge related to SINUVA taken in the first quarter of 2018 and favorable impact in the first quarter of 2019 related to a lower cost structure and a higher average selling price for the PROPEL family of products.
Operating expenses for the first quarter of 2019 were $33.5 million, compared to $25.8 million in the same period of 2018, an increase of 30%. R&D expenses increased to $6.3 million from $4.3 million, primarily due to an increase in headcount and related expenses, and expenses related to our investigational ASCEND drug-coated sinus balloon. SG&A expenses increased to $27.2 million from $21.5 million, primarily due to the expansion of SINUVA commercial and market access activities including headcount, marketing and consulting expenses.
The balance of cash, cash equivalents and short-term investments was $97.6 million, compared to $100.8 million at the start of the year.
Outlook
Intersect ENT is updating its outlook for revenue for the full year 2019 revenue to $113 to $117 million compared to prior guidance of $123 to $127 million, and for modest growth in the second quarter. The company’s outlook for 2019 gross margin remains in the range of 80% to 81%. In consideration of the change in revenue outlook, the company is reducing its outlook for operating expenses excluding stock-based expense, which are expected to be offset by incremental stock-based expense associated with the leadership transition announced May 6, 2019. Thus the company is maintaining its outlook for 2019 operating expenses in the range of $135 to $137 million.
