SeeThruEquity Issues Update on Innovus Pharmaceuticals, Inc. (OTCQB: INNV) and Raises Price Target to $1.00

NEW YORK, NY / ACCESSWIRE / August 15, 2016 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced it has issued an update on Innovus Pharmaceuticals, Inc. (OTCQB: INNV).

The report is available here: INNV Update Note.

Innovus Pharmaceuticals, Inc. (OTCQB: INNV, “Innovus”) is an emerging commercial stage pharmaceutical company that delivers safe, innovative and effective over-the-counter (OTC) medicine and consumer care products to improve men and women’s health, respiratory disease and vitality. Innovus recently released strong top line results in 2Q16, during which the company reported a sharp increase in revenues primarily due to the inclusion of recently acquired Beyond Human™ in the company’s results, with highlights including:

Innovus reported robust 2Q16 results with $1mn in quarterly revenues versus $0.2mn in 2Q15.
Positive Cash Flow: The company also reported positive cash flow from operations ahead of schedule, generating $0.26mn during the quarter.
Strong Outlook: Innovus issued a strong business outlook in which management guided to $5mn in sales for the year, well ahead of our estimates.
Considering recent results and guidance, we are increasing our estimates and price target for INNV

Additional highlights from the update note are as follows:

Strong 2Q16 results and outlook; sees sales of $5mn in FY16E

We were enthused by 2Q16 results and outlook at Innovus, which clearly showed the company is in growth mode and thus far has been able to integrate the Beyond Human without major setbacks. Innovus reported strong numbers in 2Q16 that seemed to reflect early success with the Beyond Human product line and its sales and marketing platform. Specifically, 2Q16 revenues grew by more than 400% to come in at $1mn versus $0.2mn in 2Q15. The company also issued a strong outlook, with management raising guidance for revenues to come in at $5mn for 2016. This is well ahead of our previous estimate of $3mn, and suggests a continued build of revenue throughout the end of the year.

Innovus generates cash in 2Q16; gross margins surpass 70%

In addition to reporting a strong top line both in the period and in its business outlook, Innovus also accomplished a significant milestone be generating operating cash flow of $0.25mn during the period. While management had stated that it was seeking to generate cash in the near term, this was ahead of the schedule we had contemplated (which had been the end of 2016E/early 2017E). The company achieved this milestone through savvy cash management as well as improved gross margins. Gross Margins expanded by over 10 percentage points in the quarter to reach 74%, ahead of our estimates.

Innovus continues to work on its balance sheet and liquidity. The company ended the quarter with cash on hand of just $0.2mn, but also had $1.3mn of restricted cash. Importantly, the end of the quarter Innovus raised $1.5mn in July and $0.2mn from the exercise of warrants. The company recently filed an S-1 reflecting these activities, which also registered warrants that could provide up to an additional $1.2mn in cash.

Raising price target to $1.00

In light of results and guidance that were ahead of our expectations we are raising our target for Innovus to $1.00. We see Innovus as a high-risk / high-reward investment opportunity in the OTC pharmaceuticals space with a differentiated business model focused on men and women’s health and vitality. If achieved, the price target of $1.00 reflects potential upside of 143.9% from the recent price of $0.41.

Please review important disclosures on our website at www.seethruequity.com.

About Innovus Pharmaceuticals, Inc.

Headquartered in San Diego, Innovus Pharma is an emerging leader in OTC and consumer products for men’s and women’s health and vitality. The Company generates revenues from its lead products (a) BTH® Testosterone Booster, (b) BTH® Human Growth Agent, (c) Zestra® for female arousal and (d) EjectDelay® for premature ejaculation and has an additional five marketed products in this space, including (e) Sensum+® for the indication of reduced penile sensitivity, (for sales outside the U.S. only), (f) Zestra Glide®, (g)Vesele® for promoting sexual and cognitive health, (i) Androferti® (in the US and Canada) to support overall male reproductive health and sperm quality, (j) BTH Vision Formula, (k) BTH Blood Sugar, among others and eventually FlutiCare™ OTC for Allergic Rhinitis, if its ANDA is approved by the U.S. FDA.

About SeeThruEquity

Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative business model for equity research that is not paid for and is unbiased. SeeThruEquity is the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion.

SeeThruEquity is approved to contribute its research reports and estimates to Thomson One Analytics (First Call), the leading estimates platform on Wall Street, as well as Capital IQ and FactSet. SeeThruEquity maintains one of the industry’s most extensive databases of opt-in institutional and high net worth investors. The firm is headquartered in Midtown Manhattan in New York City.

For more information visit www.seethruequity.com.

Contact:

Ajay Tandon
SeeThruEquity
info@seethruequity.com

SOURCE: SeeThruEquity

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