An Update On Innovus Pharmaceuticals Inc (OTCMKTS:INNV)

Innovus Pharmaceuticals Inc (OTCMKTS:INNV) has been a favorite of ours at Insider Financial. With the closing of a $3m private placement and the company now cash flow positive, we believe things are just starting to heat up for shares of INNV. After establishing chart support earlier this month, INNV looks set to resume its bull run higher.First up, a little background on the company. Innovus Pharma describes itself as an emerging leader in OTC and consumer products for men's and women's health and vitality. The company generates revenues from its lead products (a) BTH® Testosterone Booster, (b) BTH® Human Growth Agent, (c) Zestra® for female arousal and (d) EjectDelay® for premature ejaculation and has an additional five marketed products in this space, including (e) Sensum+® for the indication of reduced penile sensitivity, (for sales outside the U.S. only), (f) Zestra Glide®, (g)Vesele® for promoting sexual and cognitive health, (i) Androferti® (in the US and Canada) to support overall male reproductive health and sperm quality, (j) BTH Vision Formula, (k) BTH Blood Sugar, among others and eventually FlutiCare™ OTC for Allergic Rhinitis, if its ANDA is approved by the U.S. FDA.In the second quarter, the company turned cash flow positive with over $256,000 in cash provided by operations which is ahead of its projected timelines, due to higher revenues from the sale of its Beyond Human and Innovus Pharma products. Net revenues totaled over $1.0 million, $880,000 of which came from the sale of Beyond Human and Vesele® products. An increase of $836,000 as compared to net revenues of $183,000 for the same period in 2015. Gross profit on product sales was $757,000 or 74% of net revenues, compared to gross profit on product sales of $114,000 or 64% of net revenues, for the same period in 2015. The increase in gross profit on product sales was primarily due to sales from Beyond Human products.Cash and cash equivalents were $198,000 as of June 30, 2016, an increase of $142,000 from $56,000 as of December 31, 2015. Innovus Pharma also had restricted cash of $1,305,000 as of June 30, 2016 which represents the cash proceeds from a convertible debt financing that was held in escrow until its release in July 2016. The cash does not include the additional $1,500,000 raised in July and approximately $200,000 received from exercise of Warrants. CEO Dr. Bassam Damaj said:

"Based on the huge success we are experiencing with our sales, we believe we are well positioned to achieve our projected $5M in revenues for 2016 without any revenue from our long awaited product FlutiCare™, currently under review by the FDA. To date we have exceeded our commercial expectations and with the projected launch of Sensum+®, RecalMax™ and Xyralid® in the second half of 2016 under the Beyond Human sales platform, we believe that revenues will continue to increase through the balance of 2016 and into 2017 and exceed our projections."

While all of this is great news, what we're waiting on is the pending FDA decision. The company has submitted an ANDA for its hay fever product, FlutiCare. The product is currently one of the top prescribed drugs in the indication in the US, but it’s not approved as an OTC, and that’s what Innovus is going for. This is a huge market currently dominated by GlaxoSmithKline plc (ADR) (NYSE:GSK) and its Flonase product, which became available OTC in February last year.Even a small portion of the market would amount to tens of millions of dollars’ revenues, which is a big step up for Innovus Pharma. There’s also the fact that the OTC version will enjoy some residual brand recognition from the current prescription version, and so Innovus isn’t hitting markets cold – it’s got something of a running start. FlutiCare is the leading nasal steroid recommended by physicians for the treatment of nasal congestion, sneezing, runny nose, and itchy nose. FlutiCare Rx form has sold more than 177 million units, making it a clear leader in the Rx nasal steroid market.The nasal steroid market is expected to become a $1+ billion market opportunity. With a 75% market share in the prescription market, FlutiCare is expected to become the clear leader in the OTC market given its efficacy and patient satisfaction if approved by the FDA. Considering the potential and INNV's current market cap of just $37 million, INNV has the potential to be a multi-bagger if and when it gets FDA approval. We will be updating our subscribers as soon as we know more. For the latest updates on INNV, sign up below!Disclosure: We have no position in INNV and have not been compensated for this article.