Evolus (EOLS) Concludes Certain Royalty Payments

Evolus, Inc. (NASDAQ: EOLS), a performance beauty company with a customer-centric approach focused on delivering breakthrough products, this month celebrated the conclusion of certain royalty payments that resulted from the 2021 settlement of litigation claims between the company and Medytox, Inc. and Allergan, Inc.

“The conclusion of these royalty payments is an important milestone for Evolus and represents the beginning of a significantly improved financial profile reflecting stronger profit margins, which keeps us on a path to reaching profitability,” said David Moatazedi, President and CEO. “Evolus is on a very strong trajectory with a robust, above-market growth outlook in 2022 and several important initiatives that we believe can sustain our momentum into 2023. These include ‘Switch Your Tox and Love Evolus Forever,’ our biggest consumer promotional campaign to date, the imminent launch of Nuceiva® in Europe, and the presentation of preliminary data from our Phase II extra-strength study early next year.”

Evolus continues to expect its adjusted gross profit margin for the quarter ending December 31, 2022 to increase to the range of 68% to 71%. This compares to an adjusted gross profit margin of 57.4% for the quarter ended June 30, 2022. Adjusted gross profit margin is defined as adjusted gross profit as a percentage of total net revenues. Adjusted gross profit is calculated as gross profit excluding amortization of an intangible asset.

Under the Medytox/Allergan Settlement Agreements in February 2021, the company agreed to pay royalties on the U.S. sales of Jeuveau® from December 16, 2020 to September 16, 2022 to Medytox and Allergan, and pay royalties on sales of product outside the U.S. from December 16, 2020 to September 16, 2022 to Medytox. In addition, the company agreed to make cash payments to Medytox and Allergan totaling $35.0 million, which has been completed except for a final payment of $5 million due in February 2023. Per the agreement, beginning September 17, 2022 to September 16, 2032, the company will pay Medytox a mid-single digit royalty percentage on net sales of Jeuveau® in the U.S. and all territories it has licensed outside the U.S.

You May Also Be Interested In

• Ainos reports 878M data points as AI Nose deployment grows
• SCI Engineered Materials CFO resigns after four months in role
• OPKO Health raises $125M in notes backed by mazdutide royalties