Alimera Sciences announced topline revenue guidance for the quarter ending March 31, 2020. Alimera expects to report consolidated net revenue for the first quarter of 2020 exceeding $14 million, which compares to $12.9 million in the first quarter of 2019. Additionally, the company strengthened its balance sheet during the quarter with both an additional draw of $2.5 million under its $45 million term loan agreement with its current lenders, investment affiliates managed by Solar Capital Partners, LLC, and cash flow generation from operations. Alimera expects to report cash on hand in excess of $12 million at March 31, 2020.
“We are pleased to pre-release our expected global revenue results for the first quarter of 2020, which reflect growth over the first quarter of 2019 despite the increasing impact of the COVID-19 pandemic in the second half of the quarter,” Rick Eiswirth, Alimera’s President and Chief Executive Officer, said in a company news release. “As we all continue to contribute to stemming the outbreak of COVID-19, almost all of our employees are working from home and we have adapted to conducting many of our activities virtually to continue to serve physicians and provide Iluvien to patients in need. We believe Iluvien provides many advantages in the treatment of retinal disease, including fewer injections and the ability to reduce physician office visits, which can benefit both posterior uveitis and diabetic macular edema patients who may be at high risk for life-threatening consequences with COVID-19 exposure.”
Mr. Eiswirth added, “As governments worldwide have issued isolation and quarantine orders, both patient access to physicians and patients’ willingness to visit physicians have been and will continue to be limited in the coming weeks. We expect these market conditions to continue for some time and that they will have an adverse effect on our business. The rapidly changing environment makes it difficult to project the extent of the impact on our business at this time. As a result, we are withdrawing any previously communicated guidance regarding revenue growth and cash flow in 2020. We are modifying our operational activities to better balance revenues and expenses during this crisis. Importantly, we believe our employee base is critical to continue serving our physician customers both now and when this pandemic subsides. Therefore, we have no plans at this time to make any staffing level changes.”
Alimera believes it currently has sufficient inventory in its supply chain to meet demand and continues to work with its third-party manufacturers regarding the continued production of Iluvien during the pandemic.