Aytu BioPharma Reports 13% Revenue Decline in Q2 Fiscal 2025, Focuses on ADHD Products

Aytu BioPharma, Inc. reported a decline in financial performance for the second quarter of fiscal 2025, with net revenue of $16.2 million, down 13% from $18.7 million in the same period last year. For the six months ending December 31, 2024, revenue totaled $32.8 million, a decrease of 10% compared to $36.6 million in the prior year. The company attributed this decline primarily to reduced sales in its ADHD product portfolio, which saw a drop of $2.8 million, as market conditions normalized following previous stimulant shortages. Gross profit also fell, with a reported $10.8 million for the quarter, down 26% year-over-year, reflecting increased costs associated with inventory.

In terms of operational changes, Aytu has streamlined its focus to a single operating segment following the divestiture of its Consumer Health business, which was completed in July 2024. This strategic shift aims to enhance profitability by concentrating on its prescription pharmaceutical products, particularly in the ADHD and Pediatric portfolios. The company has also entered into international distribution agreements with Medomie Pharma Ltd for sales in Israel and Lupin Pharma Canada Ltd for sales in Canada, marking its first forays into international markets for its ADHD products.

The company’s total operating expenses increased slightly to $12.5 million for the quarter, up from $11.5 million a year earlier, driven by restructuring costs associated with the operational realignment. Notably, Aytu incurred $1.3 million in restructuring costs during the quarter, reflecting its ongoing efforts to optimize operations. The company reported a net income of $788,000 for the quarter, a significant improvement from a net loss of $220,000 in the same period last year, largely due to a gain from derivative warrant liabilities.

Aytu's balance sheet showed total assets of $116.2 million as of December 31, 2024, with cash and cash equivalents increasing to $20.4 million from $20.0 million at the end of the previous fiscal year. The company’s liabilities included $64.0 million in current liabilities, with a notable increase in accounts payable and accrued liabilities. The company’s debt situation improved as it transitioned to a new revolving credit facility, allowing for greater financial flexibility.

Looking ahead, Aytu BioPharma anticipates continued challenges from inflationary pressures and supply chain disruptions, which may impact its operations. The company is focused on enhancing its commercial strategies and achieving positive operating cash flows while navigating the competitive landscape of the pharmaceutical industry. Aytu remains committed to enforcing its intellectual property rights, particularly in light of recent challenges from generic competitors targeting its ADHD products.