Aralez Pharmaceuticals Inc (NASDAQ:ARLZ)’s financial results for the first quarter ending March 31, 2018, revealed that the company has suffered from a loss of US $0.29/share. The first quarter result also unveiled certain commercial and corporate updates related to the financial aspects of the company. Incidentally, the decision of the Ontario-based pharmaceutical company to discontinue its commercial operations in the U.S. has resulted in the decline in its share value.
Canada To Focus On Operations Within The Country
The decision to pull out of America has been taken with the intention to reduce expenses. But this move shocked the investors who were already rattled by the company’s loss during the first quarter. The shares of ARLZ plummeted 69% to US$0.48 after this decision came out.
The company registered revenue of $38.1 million for the first quarter which is $12.1 million or 47% more than the last year’s figure of $26.0 million for the same period. According to reports, in the coming days, the Canadian company will focus all its attention on operations within the country and expects to receive good support from the royalties of its highly popular two medications – high-pressure drug Toprol XL and arthritis pain reliever Vimovo.
Aralez To Adopt New Strategic Direction
A few days ago the Canadian company announced that it is planning to adopt a new strategic direction that will be in the best interest of everyone including the stakeholders as well as the Company. The decision is being taken in accordance with its policy to keep on continuously exploring and evaluating the numerous possibilities that can streamline the business, improve its capital structure and liquidity and also reduce the cost of operations. The recent decision of the company to pull off its operations in America is a part of this strategy.
Aralez expected that the successful launch of its ambitious product Zontivity will give the company’s business a major boost in the US. However, the momentum from Zontivity was found to be insufficient for sustaining in the commercial infrastructure of America. The company also faced a huge disappointment and loss when its product Yosprala did not receive a good response in the US and had to be discontinued.