Innovus Pharmaceuticals Inc. (OTCQB: INNV) is an emerging commercial stage pharmaceutical company that delivers safe, innovative, and effective over-the-counter medicine and consumer care products to improve men and women’s health and respiratory diseases.
In this article, we speak with recently appointed Chief Financial Officer Robert Hoffman about his new role at the company, growth plans, revenues, and what investors should watch for over the coming quarters.
Can you discuss your background and your new role at Innovus Pharma?
I am very excited to be joining the Innovus Pharma team. By way of background, I have nearly 20 years of biotech experience. I was part of the startup management team at Arena Pharmaceuticals in 1997, took Arena public in 2000, and in total was involved in fund raising in excess of $1 billion through 2015. In addition, I was involved in all of the acquisition transactions Arena made during my 18 years there. I sit on several public company boards, giving me a unique perspective on other biotech companies, market trends, and how Innovus is viewed from the investment community.
I am active in the financial community. Several years ago I was the President of the local chapter of Financial Executives International or FEI. I am on the steering committee of the Association of Bioscience Financial Officers and have served on the Small Business Advisory Committee advising the Financial Accounting Standards Board (FASB) on various rulemaking activities.
In my new role as EVP and CFO of Innovus, I am looking forward to overseeing various aspects of the business, including investor relations, finance and accounting, human resources, and information technology. In particular, I will be focusing with CEO Dr. Bassam Damaj on continuing our revenue growth organically through expanding the sales of our current products in the US, finding additional partners to launch our products outside the US, and continue our quest for additional revenue generation products to in-license or acquire. We are launching several promising products – which makes it exciting times for me to join the Innovus Pharma management team.
What attracted you to Innovus and where do you see the company heading over the next year or two?
Prior to joining Innovus in the capacity as CFO, I was a member of the Innovus Pharma Business Advisory Board. In particular, I have an excellent working relationship with Dr. Damaj.
Dr. Damaj has done an excellent job in first funding the Company from his own money. As you know, and the company publicly filed, he gave Innovus Pharma a $2.5M line of credit which allowed the Company to acquire revenue generating products, move into a commercial phase, and broaden its product offerings, giving rise to a significant increase in revenues. Dr. Damaj then led the Company in raising close to $5M through institutional investors and others to increase the commercialization efforts of the Company and to improve returns to the Company’s shareholders by moving the company into a positive cash flow position. Dr. Damaj’s background is very impressive and he is known for his ability to grow companies and generate revenues.
I am looking forward to several new product launches over the next few years, in particular FlutiCare™ in the respiratory market upon a potential FDA approval.
Innovus has announced publicly that it has plans to Up-List in the near future. How do you plan to get there and what kind of impact could that have on the Company?
I am very much looking forward to an Up-Listing transaction. Leading up to such a transaction it is important to continue to execute on the business plan of increasing product offerings in men’s and women’s health as well as in the respiratory field. Communication with the investment community is critical during this time period. I am a big believer in clearly communicating future milestones of the Company and executing on those milestones.
An up-listing transaction would most certainly broaden our appeal in the investment community as well as access to capital in the future.
I do have to be clear that we are being very cautious about an up-listing with our current share price. Innovus has a lot of potential and we are confident that the market will continue to appreciate the Company and its assets as we hope to create value by executing on our milestones.
What are some of your other goals at Innovus Pharma? What milestones should investors look for over the next year or two?
We are very focused on generating revenues and moving to profitability. This is a goal that I share with Dr. Damaj and I believe it is the most important goal that a Company can have to make it independent of the need to continuously raise money to survive.
Our Company goals are very clear:
- Our first goal is to continue our revenue growth and meet the $5M projected revenue for this year 2016.
- Projecting to be profitable in 2017 with annual revenues of $15M in that year
- Expand our product offerings, markets where they can be commercialized and continue our organic growth
- Up-list the Company to a national exchange once the share price appreciation makes sense.
For more information about Innovus Pharma, visit the company’s website at www.innovuspharma.com.