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Imprimis Pharmaceuticals Reports Q1 Earnings

San Diego’s Imprimis Pharmaceuticals, a maker of compounded drugs, reported a big jump in revenue for the first quarter of 2016.

The company brought in $4.4 million in revenue for Q1, up from $1.6 million in the same quarter last year. The company’s sales from opthamology products increased over 450 percent from $320,000 in Q1 2015 to $1.8 million this quarter.

Although Imprimis (Nasdaq: IMMY) boosted sales significantly, the company still reported a greater loss year-over-year. The company’s net loss was $4.5 million for the quarter, up from its $3.1 million loss the same quarter last year. This was due to increased expenses across the board, including higher sales, marketing, administrative, and R&D expenses.

During a down market for pharma and biotech, Imprimis has managed to find a platform for its message. The company, which has a market cap of about $50 million, is offering cheaper alternatives to expensive brand-name drugs through compounded formulations. The message is attractive to those balking at price hikes and expensive brand name drugs in the industry last year.

“With the certain shift in reimbursements and payments for drug benefits, we believe that more business will be moved to lower-cost, high quality innovation-focused companies, like Imprimis, as we meet the promise of making drugs affordable again,” said CEO Mark Baum in a news release. “We look forward to setting additional growth milestones throughout 2016 and beyond as we advance the company towards profitability.”

Despite the popular message and the improved financial performance, the company’s stock has fallen 53 percent in the last 12 months. The stock was up 3 percent May 13, however, following the earnings announcement. It was trading at $3.76 per share

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