Why Aerie Pharmaceuticals Inc (NASDAQ: AERI) stock is going gangbusters today

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Aerie Pharmaceuticals Inc (NASDAQ: AERI) stock rose over 15.1% in the Pre-market session of 21st Feb, 2020 (Source: Google finance) after the company posted solid results for the fourth quarter of FY 19. Net cash used in operating activities for the year ended December, 2019 on a U.S. GAAP basis were of total approximately $150.4 million. At the end of December, 2019, Aerie had cash and cash equivalents and investments of $309.2 million, which is on back of the net proceeds from the convertible notes debt offering in September 2019.

Meanwhile, the company has recently acquired Avizorex Pharma S.L., which is a Spanish ophthalmic pharmaceutical company, developing therapeutics for the treatment of dry eye disease. Avizorex had completed a Phase 2a study in dry eye subjects in 2019 with its lead product candidate AVX-012. The company plans to initiate a larger Phase 2b study in late 2020. Further, AERI expects to move forward with plans for Rhopressa Phase 3 clinical trial initiation in Japan, along with exploring a collaboration with a potential partner in Japan to advance the company’s clinical development and ultimately commercialize Rhopressa and Rocklatan in Japan.

The company has received approval from the U.S. Food and Drug Administration (FDA) in January to produce Rocklatan for commercial distribution in the U.S. market in Aerie’s Athlone, Ireland, manufacturing facility. The company intends to file a Prior Approval Supplement with the FDA in the first half of 2020 to obtain FDA approval to manufacture Rhopressa in Athlone for commercial distribution in the U.S. market. Furthermore, Aerie’s retina program is advancing and the topline data expected later in 2020.

AERI in the fourth quarter of FY 19 has reported the adjusted loss per share of 96 cents, missing the analysts’ estimates for the adjusted loss per share of 75 cents. The company had reported the adjusted revenue of $24.66 million in the fourth quarter of FY 19, beating the analysts’ estimates for revenue by 24.17%.

Aerie currently expects full-year 2020 net revenues to be in the range of $100 to $110 million on a U.S. GAAP basis for Rhopressa and Rocklatan combined. The company projects full-year 2020 net cash used in operating activities to be in the range of $110 million to $120 million, on a U.S. GAAP basis, with operating expenses in full-year 2020 is expected to remain consistent with full-year 2019.

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