TSL Express Daily News

Intersect ENT, Inc. (Nasdaq: XENT), a global ear, nose and throat (“ENT”) medical technology leader dedicated to transforming patient care, today announced preliminary second quarter 2021 revenue and provided a business update.

Second Quarter 2021 Overview

• Preliminary and unaudited revenue of approximately $27.3 million.
• Record quarterly SINUVA revenue of approximately $2.7 million.
• Cash, cash equivalents, restricted cash, and short-term investments of approximately $76.2 million as of June 30, 2021.
• Company reiterates full year 2021 revenue guidance of $117 million - $121 million

"As the broader economy opens up, our preliminary second quarter results reflect strong sequential performance across our business, growth relative to the second quarter of 2019, and record SINUVA revenues,” said Thomas A. West, President and CEO of Intersect ENT. “While elective sinus procedures continue to trend positively, the recovery in procedures has only returned to approximately 90%-95% of pre-COVID levels. Looking ahead, we expect a return to normalized procedure rates in the second half of 2021. These improving market conditions, combined with our commercial execution and upcoming product launches, reinforce our confidence that we will achieve our 2021 full-year revenue guidance.”

Debt Financing

Intersect ENT announced today that it entered into a $60 million secured term loan agreement with a fund managed by Deerfield Management Company L.P. (“Deerfield”). The term loan is structured in three $20 million tranches to provide funding for the remaining Fiagon acquisition payment over the next three years, and, in doing so, improves overall liquidity. With a coupon of 7.5% and five-year maturity, the term loan provides the Company with greater flexibility in meeting its capital needs for the future. The Company intends to use the remaining proceeds from this financing for general corporate purposes.

“With this financing we are well-positioned to invest in our future while establishing Intersect ENT as a predictable double-digit grower. We appreciate the continued support of Deerfield in helping us drive long-term growth,” added Mr. West.

Guidance

Based on the current COVID-19 environment, the positive trend in elective procedures, the national launch of its VenSure sinus balloon and CUBE navigation system, and the opportunity to maximize its broader portfolio, Intersect ENT reiterates its full year 2021 revenue guidance in a range of $117 million - $121 million. The Company’s full year 2021 guidance reflects the expected further recovery of COVID-impacted elective sinus procedures supported by a significant increase in the number of individuals vaccinated against COVID-19. Full year 2021 gross margin is expected to be in the low-to-mid 70s.

The second quarter 2021 revenue and cash position included in this release are preliminary and prior to the completion of a review by Intersect ENT's external auditors and are therefore subject to adjustment.

Management will provide additional information in conjunction with the release of its full second quarter 2021 financial results currently scheduled for Friday, August 6.

About Intersect ENT

Intersect ENT is a global ear, nose and throat medical technology leader dedicated to transforming patient care. The Company’s steroid releasing implants are designed to provide mechanical spacing and deliver targeted therapy to the site of disease. In addition, Intersect ENT is continuing to expand its portfolio of products based on the Company’s unique localized steroid releasing technology and is committed to broadening patient access to less invasive and more cost-effective care. In October 2020, Intersect ENT acquired Fiagon AG Medical Technologies, a global leader in electromagnetic surgical navigation solutions with an expansive portfolio of ENT product offerings, including the VENSURE sinus balloon, that complement the Company's PROPEL® and SINUVA® sinus implants and extend its geographic reach.

For additional information on the Company or the products including risks and benefits please visit www.IntersectENT.com. For more information about PROPEL® (mometasone furoate) sinus implants and SINUVA® (mometasone furoate) sinus implant, please visit www.PROPELOPENS.com and www.SINUVA.com.

Intersect ENT®, PROPEL® and SINUVA®, are registered trademarks of Intersect ENT, Inc.

Contacts

Intersect ENT, Inc.
Randy Meier, 650-641-2105
ir@intersectENT.com