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Perrigo Company plc Reports Fourth Quarter & Calendar Year 2017 Financial Results

On March 1, 2018 Perrigo Company plc reports fourth quarter & calendar year 2017 financial results (Press release, Perrigo Company, MAR 1, 2018, View Source [SID1234524322]).

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Fourth Quarter:

Realized fourth quarter 2017 GAAP ("reported") net sales of $1.3 billion, reported net income of $73 million and reported diluted earnings per share ("EPS") of $0.52 compared to a loss per share of $9.48 last year
Delivered fourth quarter adjusted net income of $180 million and adjusted diluted EPS of $1.28 compared to $1.24 last year, an increase of 3.2%
CHC Americas segment achieved fourth quarter reported net sales of $644 million or growth of 2.5% versus last year on a constant currency basis
CHC International segment delivered fourth quarter reported net sales of $374 million, down 10.8% versus last year; excluding exited European distribution businesses, net sales grew 3.3% versus last year on a constant currency basis
Calendar Year 2017

Realized calendar year 2017 reported net sales of $4.9 billion compared to reported net sales of $5.3 billion in the prior year, lower by 6.3%, reported net income of $120 million and reported EPS of $0.84
Achieved calendar year 2017 adjusted net sales growth of 1.3% compared to the prior year, excluding the year-over-year effect of exited European distribution businesses, the divestiture of the Israel API business and the impact of Entocort
Delivered calendar year 2017 adjusted net income of $703 million and adjusted diluted EPS of $4.93
CHC Americas segment achieved calendar year 2017 reported net sales of $2.4 billion compared to $2.5 billion last year, lower by 3.1%; adjusted net sales grew 1.4% on a constant currency basis
CHC International segment delivered calendar year 2017 reported net sales of $1.5 billion, down 9.8% versus last year, with reported operating margin of 0.8%; excluding the year-over-year effect of the exited European distribution businesses, net sales grew 2.6% versus last year on a constant currency basis, with an adjusted operating margin of 15.0%
RX segment realized calendar year 2017 reported operating margin of 31.7%; the segment’s extended topical strategy delivered an adjusted operating margin of 41.9%
Calendar year 2017 cash flow from operations was $699 million
Guidance

The Company expects calendar year 2018 reported diluted EPS to be in the range of $2.24 to $2.64. The Company expects calendar year 2018 adjusted diluted EPS guidance to be in the range of $5.05 to $5.45; see Guidance section below for detail.
Perrigo Company plc (NYSE; TASE: PRGO) reported results for the fourth quarter and calendar year ended December 31, 2017.

Additional fourth quarter reported results: Reported operating margin in the Consumer Healthcare Americas ("CHCA") segment was a fourth quarter record of 22.0%. Reported operating margin in the Consumer Healthcare International ("CHCI") segment was 1.0%. Reported operating margin in the Prescription Pharmaceuticals ("RX") segment was 26.1%.

Perrigo CFO Ron Winowiecki commented, "The Perrigo team delivered on its internal and external goals and commitments in calendar year 2017 driven by 1) actions taken to simplify, focus and execute on the company’s core businesses, 2) a focus on operational execution in challenging end-markets, 3) a cost optimization program that improved our cost structure, and 4) strong cash flow conversion and improved balance sheet flexibility.

Fourth quarter reported net sales in our CHCA segment grew 2.5% on a constant currency basis with record fourth quarter adjusted operating margin of 23.1%. Our CHCI segment delivered 3.3% net sales growth in the quarter, on a constant currency basis and excluding the exited European distribution businesses, with an adjusted operating margin of 15.3%. RX net sales were consistent with the prior year, excluding a $5 million year-over-year Entocort impact as new product launches more than offset expected price erosion. Adjusted operating margin in this business was 38.1% due to product mix and increased investments in our new product pipeline. Finally, our durable business model and efficient supply chain once again delivered excellent cash flow conversion to adjusted net income."

Refer to Tables I – VI at the end of this press release for a reconciliation of non-GAAP measures to the current year and prior year periods and additional non-GAAP information. The Company’s reported results are included in the attached Consolidated Statements of Operations, Balance Sheets and Statements of Cash Flows.

Calendar 2017

Calendar 2016

Constant
Currency

12/31/2017

12/31/2016

% change

% Change

Reported Net Sales

$4,946

$5,281

(6.3)%

Reported Net Income (Loss)

$120

$(4,013)

Reported Diluted Earnings (Loss) per Share

$0.84

$(28.01)

Reported Diluted Shares

142.6

143.3

(0.5)%

Adjusted Net Sales(1)

$4,926

$5,168

(4.7)%

Adjusted Net Income

$703

$728

(3.5)%

Adjusted Diluted Earnings per Share

$4.93

$5.07

(2.8)%

Adjusted Diluted Shares

N/A

143.6

N/A

(1)

Calendar year 2017 net sales have been adjusted to exclude $21 million of sales attributable primarily to the divested Israel API business. Calendar year 2016 net sales have been adjusted to exclude $113 million of sales attributable primarily to the divested U.S. Vitamins, Minerals, and Supplements ("VMS") business.

Reported net sales for calendar year 2017 were $4.9 billion, which included new product sales of $210 million and discontinued products of $32 million. Adjusted net sales grew 1.3% compared to the prior year excluding the year-over-year effects of: 1) net sales from the exited European distribution businesses of $200 million, 2) net sales of $67 million from Entocort, and 3) net sales from the divested Israel API business of $41 million.

Reported net income was $120 million, or $0.84 per diluted share versus a net loss of $4.0 billion, or $28.01 per diluted share, in the prior year. Excluding charges as outlined in Table I, calendar year 2017 adjusted net income was $703 million, or $4.93 per diluted share, versus adjusted net income of $728 million, or $5.07 per diluted share, for the same period last year.

Fourth Quarter Results

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Perrigo Company plc

(in millions, except earnings per share amounts)

(see the attached Tables I – VI for reconciliation to GAAP numbers)

Fourth Quarter
Ended

YoY

Constant
Currency

12/31/2017

12/31/2016

% change

% Change

Reported Net Sales

$1,283

$1,331

(3.6)%

Reported Net Income (Loss)

$73

$(1,359)

Reported Diluted Earnings (Loss) per Share

$0.52

$(9.48)

Reported Diluted Shares

141.2

143.4

(1.5)%

Adjusted Net Sales(1)

$1,279

N/A

(3.9)%

(5.9)%

Adjusted Net Income

$180

$178

1.5%

Adjusted Diluted Earnings per Share

$1.28

$1.24

3.2%

Adjusted Diluted Shares

N/A

143.6

N/A

(1)

Fourth quarter 2017 net sales have been adjusted to exclude $4 million of sales attributable to the divested Israel API business.

Reported net sales for the fourth quarter of 2017 were $1.3 billion, which included new product sales of $54 million and discontinued products of $6 million. Adjusted net sales grew 2.1% compared to the prior year excluding the year-over-year effect of: 1) net sales from the exited European distribution businesses of $82 million, 2) net sales from the divested Israel API business of $19 million, 3) net sales of $5 million from Entocort and, 4) favorable foreign currency movements of $27 million.

Reported net income was $73 million, or $0.52 per diluted share versus a net loss of $1.4 billion, or $9.48 per diluted share, in the prior year. Excluding charges as outlined in Table I, fourth quarter 2017 adjusted net income was $180 million, or $1.28 per diluted share, versus adjusted net income of $178 million, or $1.24 per diluted share, for the same period last year.

Segment Results

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Consumer Healthcare Americas (CHCA) Segment

(in millions)

(see the attached Tables I – VI for reconciliation to GAAP numbers)

Fourth Quarter
Ended

YoY

Constant
Currency

12/31/2017

12/31/2016

% change

% Change

Reported Net Sales

$644

$627

2.7%

2.5%

Reported Gross Profit

$220

$210

4.5%

Reported Gross Margin

34.1%

33.5 %

60 bps

Reported Operating Income

$141

$83

69.7%

Reported Operating Margin

22.0%

13.3%

870 bps

Adjusted Gross Profit

$232

$223

4.1%

Adjusted Gross Margin

36.0%

35.5%

50 bps

Adjusted Operating Income

$149

$139

6.7%

Adjusted Operating Margin

23.1%

22.2%

90 bps

CHCA fourth quarter reported net sales were $644 million compared to $627 million last year. Net sales grew 2.5% on a constant currency basis, driven by higher net sales in the gastrointestinal and analgesics categories compared to the prior year. New product sales of $17 million were led by the store brand version of Nexium and smoking cessation products. These positive drivers were partially offset by lower net sales of nutritional drink products in the infant nutrition category, in addition to pricing pressure in certain OTC categories and discontinued products of $3 million.

The CHCA segment achieved fourth quarter reported gross profit margin of 34.1% and adjusted gross profit margin of 36.0%, an improvement of 50 basis points versus the prior year, primarily driven by increased net sales in relatively higher margin categories and positive contributions from supply chain efficiencies. These positive contributions were partially offset by price erosion in certain OTC categories versus the prior year.

Reported operating margin was a fourth quarter record of 22.0%. Adjusted operating margin was a fourth quarter record of 23.1%, which was higher compared to the prior year due to gross margin flow through and lower selling and administrative costs due to previously announced restructuring actions.

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Fourth Quarter
Ended

YoY

Constant
Currency

12/31/2017

12/31/2016

% change

% Change

Reported Net Sales

$374

$420

(10.8)%

(16.9)%

Reported Gross Profit

$173

$151

14.0%

Reported Gross Margin

46.1%

36.1%

1,000 bps

Reported Operating Income (Loss)

$(76)

Reported Operating Margin

1.0%

(18.1)%

Adjusted Gross Profit

$195

$176

10.7%

Adjusted Gross Margin

52.0%

41.9%

1,010 bps

Adjusted Operating Income

$57

$36

57.5%

Adjusted Operating Margin

15.3%

8.7%

660 bps

Reported net sales decreased 10.8% compared to the fourth quarter of 2016. Net sales grew approximately 3.3% excluding $82 million from the exited unprofitable distribution businesses and favorable foreign currency movements of $26 million. This increase was driven primarily by higher net sales in the personal care category and in the U.K. store brand business along with new product sales of $14 million dollars. These increases were partially offset by lower net sales in the anti-parasite category in addition to discontinued products of $2 million.

Fourth quarter reported gross and adjusted margins increased approximately 1,000 bps over the previous year driven by actions taken that improved business performance including exiting unprofitable distribution businesses, optimizing go-to-market strategies and manufacturing more products in-house.

Reported operating income was $4 million and reported operating margin was 1.0%. Adjusted operating income grew $21 million to $57 million, while adjusted operating margin expanded 660 bps to 15.3% due to higher gross margin contribution and lower advertising and promotional investments as a percentage to net sales.

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Prescription Pharmaceuticals (RX) Segment

(in millions)

(see the attached Tables I – VI for reconciliation to GAAP numbers)

Fourth Quarter
Ended

YoY

Constant
Currency

12/31/2017

12/31/2016

% change

% Change

Reported Net Sales

$261

$266

(1.7)%

(1.8)%

Reported Gross Profit

$118

$121

(2.7)%

Reported Gross Margin

45.0%

45.5%

(50) bps

Reported Operating Income

$68

$(259)

Reported Operating Margin

26.1%

(97.3)%

Adjusted Gross Profit

$139

$149

(6.7)%

Adjusted Gross Margin

53.2%

56.1%

(290) bps

Adjusted Operating Income

$100

$115

(13.4)%

Adjusted Operating Margin

38.1%

43.2%

(510) bps

Reported net sales in the fourth quarter were $261 million compared to $266 million last year. Excluding the $5 million year-over-year impact of Entocort, net sales were relatively in line with the prior year as new product sales of $23 million were offset by lower net sales of existing products of $21 million, due primarily to price erosion, which was in line with our expectations.

Reported gross margin was 45.0% and adjusted gross margin was 53.2%, which were lower compared to the prior year primarily due to product mix driven by a relatively greater contribution from partnered products and price erosion.

Reported operating margin was 26.1%. Adjusted operating margin was 38.1%, which included an increase of $6 million in R&D investments compared to the prior year and lower selling expenses due to previously announced restructuring actions.

Guidance

The Company expects calendar year 2018 reported net sales to be in the range of $5.0 billion to $5.1 billion, reported operating income to be in the range of $682 million to $742 million, reported effective tax rate to be approximately 24.0%, and reported diluted EPS to be in the range of $2.24 to $2.64.

The Company also expects calendar year 2018 adjusted operating income to be in the range of $1.03 billion to $1.09 billion, adjusted effective tax rate to be approximately 20.5% and adjusted diluted EPS guidance to be in the range of $5.05 to $5.45.

Perrigo President and CEO Uwe Roehrhoff commented, "Perrigo’s durable businesses delivered strong results in a dynamic healthcare market. The management team’s continued focus on operational execution provides a solid foundation to deliver on our 2018 plan. Perrigo is uniquely positioned to provide Quality Affordable Healthcare Products to customers, patients and families."

Conference Call

The Company will host a conference call at 8:30 a.m. EST (5:30 a.m. PST), March 2, 2018. The conference call will be available live via webcast to interested parties in the investor relations section of the Perrigo website at View Source or by phone at 877-248-9413, International 973-582-2737, and reference ID #6491969. A taped replay of the call will be available beginning at approximately 12:00 p.m. (EST) Friday, March 2, until midnight Monday, March 12, 2018. To listen to the replay, dial 800-585-8367, International 404-537-3406, and use access code 6491969.

Perrigo Files Form 10-K With SEC; Will Host Fourth Quarter And Calendar Year 2017 Financial Results Conference Call On March 2, 2018

On March 1, 2018 Perrigo Company plc (NYSE; TASE: PRGO) reported that it has filed its Annual Report on Form 10-K for the year ended December 31, 2017 with the U.S. Securities and Exchange Commission and released its fourth quarter and calendar year 2017 financial results (Press release, Perrigo Company, MAR 1, 2018, View Source [SID1234524321]). The Company will host a conference call on Friday, March 2, 2018 at 8:30AM (EST) to discuss its results.

The conference call will be available live via webcast to interested parties in the investor relations section of the Perrigo website at View Source or by phone at 877-248-9413, International 973-582-2737, and reference ID #6491969. A taped replay of the call will be available beginning at approximately 12:00 p.m. (EST) Friday, March 2, until midnight Monday, March 12, 2018. To listen to the replay, dial 800-585-8367, International 404-537-3406, and use access code 6491969.

NewLink Genetics Reports Fourth Quarter, Year-End 2017 Financial Results and Provides Update for Indoximod Programs

On March 1, 2018 NewLink Genetics Corporation (NASDAQ:NLNK) today reported consolidated financial results for the fourth quarter and year ended 2017, as well as progress in its clinical development programs (Press release, NewLink Genetics, MAR 1, 2018, View Source [SID1234524320]). The Company also outlined key 2018 business priorities related to the clinical programs for indoximod, its IDO pathway inhibitor drug candidate.

"NewLink Genetics has produced encouraging data supporting indoximod in several indications and looks forward to presenting additional data in 2018, further validating IDO pathway inhibition as a key target in immuno-oncology," said Charles J. Link, Jr, MD, Chairman and Chief Executive Officer. "In addition, Indigo301, our pivotal trial for patients with metastatic melanoma, and Indigo201, our randomized Phase 2 trial in collaboration with AstraZeneca for patients with metastatic pancreatic cancer, are our core clinical priorities for 2018."
Anticipated 2018 Highlights
•
Initiate randomization portion of Indigo301, a pivotal Phase 3 trial for patients with advanced melanoma, in Q2-Q3 2018
•
Full Phase 2 results of indoximod plus checkpoint inhibitors in metastatic melanoma in 1H:2018
•
Initiate Indigo201, a randomized Phase 2 trial for patients with metastatic pancreatic cancer, in 1H:2018
•
Full Phase 2 results from the single-arm trial of indoximod plus gemcitabine nab-paclitaxel in metastatic pancreatic cancer in 1H:2018
•
Two abstract presentations at AACR (Free AACR Whitepaper) Annual Meeting 2018 include data from a Phase 1 study of indoximod for pediatric patients with malignant brain tumors and data providing additional characterization of the differentiated mechanism of action of indoximod
•
Continued evaluation of indoximod in additional oncology indications
2017 Highlights
•
Presented updated Phase 2 data of indoximod plus pembrolizumab in advanced melanoma at the Third Annual International Cancer Immunotherapy Conference (CIMT) (Free CIMT Whitepaper) with encouraging overall and complete response rates and progression-free survival
•
Commenced dose determination portion of Indigo301
•
Entered into a collaboration with AstraZeneca on Indigo201
•
Presented Phase 2 data from a randomized, double-blind study of indoximod plus cancer vaccine for patients with metastatic castration-resistant prostate cancer at ASCO (Free ASCO Whitepaper) Annual Meeting, indicating statistically significant improvement in median progression-free survival compared to monotherapy

Exhibit 99.1

•
Presented Phase 1b data of indoximod plus chemotherapy in newly diagnosed AML suggesting the potential for indoximod in treatment regimens beyond PD-1
•
Successfully raised $74.3 million, net of offering costs, and ended 2017 with $158.7 million cash and equivalents
Update on Current Clinical Timeline and Financial Guidance
NewLink Genetics reported an update of its clinical timeline and now expects to initiate Indigo301 randomization in Q2 to Q3 2018 and complete enrollment in 2019. The Company expects to end this year with approximately $75 million in cash. The shift in the timeline arises from an increased number of trial sites planned for Indigo301 and additional work related to manufacturing.
Financial Results
Cash Position: NewLink Genetics ended the year on December 31, 2017, with cash and cash equivalents totaling $158.7 million compared to $131.5 million for the year ending December 31, 2016. The Company’s cash position is sufficient to fund operations in the near and medium term.
R&D Expenses: Research and development expenses were $17.5 million and $69.9 million in the fourth quarter and year ended December 31, 2017 compared to $19.5 million and $93.3 million during the comparable periods in 2016. The decrease year-over-year was due primarily to higher restructuring charges of $11.1 million incurred in 2016, including a non-cash charge of $4.0 million related to impaired assets, as compared to $600,000 of charges incurred in 2017. Remainder of the decrease was due to decreases of $6.2 million in clinical trial costs, $4.4 million in supplies, equipment and licensing, $3.6 million in personnel-related expense, and $200,000 in manufacturing expense. Decreases were offset by increases of $1.0 million in stock compensation expense and $600,000 in legal and consulting.
G&A Expenses: General and administrative expenses in the fourth quarter and year ended December 31, 2017 were $6.7 million and $31.7 million compared to $7.2 million and $33.2 million during the comparable periods in 2016. The decrease was primarily due to a $2.3 million reduction in personnel-related spend and $1.2 million reduction in legal and consulting, offset by increases of $700,000 in stock compensation expense, $700,000 in supplies and equipment, and $600,000 in restructuring charges incurred in 2017.
Net Loss: NewLink Genetics reported a net loss of $13.7 million or $0.37 per diluted share for the fourth quarter of 2017 and a net loss of $72.0 million or $2.30 per diluted share for the year ended December 31, 2017, compared to a net loss of $13.5 million or $0.46 per diluted share for the fourth quarter of 2016 and a net loss of $85.2 million or $2.94 per diluted share for the year ended December 31, 2016.
NewLink Genetics ended 2017 with 37,109,556 shares outstanding.
Conference Call and Webcast Details
The Company has scheduled a conference call and webcast for 4:30 p.m. ET today to discuss the results and to give an update on clinical and business development activities. NewLink Genetics’ senior management team will host the call, which will be open to all listeners. There will also be a question and answer session following the prepared remarks.
Access to the live conference call is available by dialing (855) 469-0612 (U.S.) or (484) 756-4268 (international) five minutes prior to the start of the call. The conference call will be webcast live and a link to the webcast can be accessed through the NewLink Genetics website at www.NewLinkGenetics.com in the "Investors & Media" section under "Events and Presentations" or by clicking here. To ensure a timely connection, it is recommended that users register at least 15 minutes prior to the scheduled webcast. A replay of the call will be available approximately two hours after the completion of the call and can be accessed by dialing (855) 859-2056 (U.S.) or (404) 537-3406 (international) and using the passcode 9466627. The replay will be available for two weeks from the date of the call.

About Indoximod
Indoximod is an investigational, orally available small molecule targeting the IDO pathway. The IDO pathway is a key immuno-oncology target involved in regulating the tumor microenvironment and immune escape. Indoximod is being evaluated in combination with treatment regimens including anti-PD-1/PD-L1 agents, cancer vaccines, and chemotherapy across multiple indications such as melanoma, pancreatic cancer and other malignancies.

PDL BioPharma to Announce Fourth Quarter / Year-End 2017 Financial Results on March 8, 2018

On March 1, 2018 PDL BioPharma, Inc. (PDL or the Company) (NASDAQ: PDLI) reported that the Company will release its fourth quarter, year-end 2017 financial results for the period ended December 31, 2017, on Thursday March 8, 2018, after market close. PDL’s management will host a conference call and webcast that day at 4:30 p.m (Press release, PDL BioPharma, MAR 1, 2018, View Source [SID1234524315]). Eastern Time to discuss the financial results. A slide presentation relating to the call will be available via the webcast link on the PDL website.

Conference Call Details
To access the live conference call via phone, please dial (800) 668-4132 from the United States and Canada or (224) 357-2196 internationally. The conference ID is 9384627. Please dial in approximately 10 minutes prior to the start of the call. A telephone replay will be available for one week following the call and may be accessed by dialing (855) 859-2056 from the United States and Canada or (404) 537-3406 internationally. The replay passcode is 9384627.

To access the live and subsequently archived webcast of the conference call, go to the Company’s website at View Source and go to "Events & Presentations." Please connect to the website at least 15 minutes prior to the call to allow for any software download that may be necessary.

Paratek Pharmaceuticals Reports Fourth Quarter and Full Year 2017 Financial Results and Remains on Track for Commercial Launch by First Quarter 2019

On March 1, 2018 Paratek Pharmaceuticals, Inc. (Nasdaq:PRTK), a biopharmaceutical company focused on the development and commercialization of innovative therapies based upon tetracycline chemistry, reported financial results and provided an update on financial, clinical, and regulatory filing activities for the quarter and full year ended December 31, 2017 (Press release, Paratek Pharmaceuticals, MAR 1, 2018, View Source [SID1234524314]).

"We had a strong finish to the year as we initiated our Phase 2 program in urinary tract infections and, importantly, we recently announced the completion of the rolling NDA submissions for omadacycline," said Michael Bigham, Chairman and Chief Executive Officer, Paratek. "We continue to expand our commercial readiness activities for omadacycline as we await the FDA’s acceptance of our NDAs".

Recent Highlights

Completed submission of New Drug Applications (NDAs) with the U.S. Food and Drug Administration (FDA) on February 2, 2018 for the once-daily oral and intravenous formulations of omadacycline for the treatment of community-acquired bacterial pneumonia (CABP) and acute skin and skin structure infections (ABSSSI)

Advanced commercial readiness activities, including initiation of manufacturing validation and commercial product supply and expansion of the medical affairs and payer account management teams in readiness for payer formulary discussions

Initiated the first of two Phase 2 studies of omadacycline in urinary tract infections (UTI)

Announced FDA acceptance of Allergan’s NDA for Seysara

Raised $50.0 million through a registered underwritten public offering of common stock

Upcoming Milestones

FDA acceptance of omadacycline NDAs anticipated in April 2018

Formulary discussions with payers to begin post FDA acceptance of NDA filing

Presentation of clinical and microbiological data at the upcoming European Congress of Clinical Microbiology and Infectious Disease, including nine posters and one oral presentation of the OASIS-2 study of oral-only omadacycline in ABSSSI

European pre-submission meetings planned for the second quarter of 2018

Fourth Quarter and Full Year 2017 Financial Results

For the fourth quarter of 2017, Paratek reported a net loss of $21.9 million, or ($0.78) per share, compared to a net loss of $26.5 million, or ($1.16) per share, for the same period in 2016. For the year ended December 31, 2017, Paratek reported a net loss of $89.1 million, or ($3.32) per share, compared to a net loss of $111.6 million, or ($5.51) per share, for the same period in 2016.

Revenue earned during the year ended December 31, 2017 primarily consists of a $7.5 million upfront payment

received as part of a collaboration agreement with Zai Lab and a $5.0 million milestone payment earned from Allergan on FDA acceptance of the Seysara NDA.

Research and development expenses were $14.2 million and $60.1 million for the quarter and year ended December 31, 2017, respectively, compared to $19.7 million and $83.5 million for the same periods in 2016. The decrease was driven primarily by lower clinical study costs associated with the completion of the Phase 3 program for omadacycline. This decrease is partially offset by higher employee compensation costs, NDA preparation and related user fees, and an increase in medical affairs activity.

General and administrative expenses were $11.7 million and $37.0 million for the quarter and year ended December 31, 2017, respectively, compared to $6.5 million and $26.4 million for the same periods in 2016. The increase was driven primarily by higher employee compensation costs as the Company continues to expand its commercial team, costs associated with pre-commercial activities, and business development efforts.

As of December 31, 2017, Paratek had cash, cash equivalents, and marketable securities of $151.7 million. Based on current assumptions, including full commercial buildout and launch of omadacycline, Paratek’s existing capital resources as well as the $50 million in proceeds from its January 2018 public offering of common stock, future contingent regulatory and commercial milestone payments from collaborations with Allergan and Zai Lab, anticipated extension of the interest-only period for the Hercules Term Loan, and estimated omadacycline product sales will enable Paratek to fund operating expenses and capital expenditure requirements into late 2019.

Conference Call and Webcast

Paratek’s earnings conference call for the quarter ended December 31, 2017 will be broadcast at 8:30 a.m. EDT on March 1, 2018. The live webcast can be accessed under "Events and Presentations" in the Investor Relations section of Paratek’s website at www.paratekpharma.com.

Domestic investors wishing to participate in the call should dial: 877-407-0792 and international investors should dial: 201-689-8263. The conference ID is 13675875. Investors can also access the call at View Source

Replays of the call will be available through March 15, 2018. Domestic investors can access the replay by dialing 844-512-2921 and international investors can access the replay by dialing 412-317-6671. The PIN code to access the replay is 13675875.

Website Information

Paratek routinely posts important information for investors on the Investor Relations section of its website at www.paratekpharma.com. Paratek intends to use this website as a means of disclosing material, non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of Paratek’s website, in addition to following its press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, Paratek’s website is not incorporated by reference into, and is not a part of, this document.