Eton Pharmaceuticals Reports 116% Revenue Growth to $17.3 Million in Latest Quarter

Eton Pharmaceuticals, Inc. reported significant financial growth in its latest quarterly results, with total revenues reaching $17.3 million for the three months ended March 31, 2025, compared to $8.0 million in the same period last year. This increase was driven primarily by a rise in product sales and royalties, which amounted to $14.0 million, up from $8.0 million in the prior year. The company also recognized $3.3 million in licensing revenue, a notable increase from zero in the previous year, attributed to the out-licensing of INCRELEX® rights outside the U.S. and a development milestone from the divestiture of DS-200.

The company's gross profit for the quarter was $9.9 million, reflecting a gross margin of approximately 57.1%, compared to a gross profit of $5.0 million in the same quarter of 2024. Operating expenses increased to $10.3 million from $5.8 million, primarily due to higher general and administrative costs, which rose to $9.2 million from $5.2 million, driven by increased product advertising and a rise in headcount. Eton reported a net loss of $1.6 million, or $0.06 per share, compared to a net loss of $811,000, or $0.03 per share, in the prior year.

Operationally, Eton has expanded its product portfolio, now offering seven commercial rare disease products and six additional candidates in late-stage development. The company has also made strategic acquisitions, including the rights to INCRELEX® and GALZIN®, which are expected to enhance its market position. As of March 31, 2025, Eton had cash and cash equivalents of $17.4 million, which management believes will be sufficient to fund operations for at least the next twelve months.

The company has seen a notable increase in customer engagement, with a significant portion of its revenue concentrated among a few key customers, including AnovoRx and Optime Care. For the three months ended March 31, 2025, AnovoRx accounted for approximately 90.8% of net product revenues, highlighting the company's reliance on a limited customer base. Eton's employee headcount has also increased, reflecting its growth strategy and the need for additional resources to support its expanding operations.

Looking ahead, Eton Pharmaceuticals is optimistic about its growth trajectory, particularly with the anticipated FDA review of its product candidate ET-600, for which an NDA was submitted in April 2025. The company expects to continue leveraging its existing product lines while exploring new opportunities for expansion and development in the rare disease market. However, management acknowledges the potential need for additional capital to support its growth initiatives, which may involve equity financing or other arrangements.