ANP Technologies, Inc.

Reports Net Revenues of $180.6 Million for the Three Months Ended September 30, 2023 RANCHO CUCAMONGA, CA / ACCESSWIRE / November 8, 2023 / Amphastar Pharmaceuticals, Inc., (NASDAQ:AMPH) ("Amphastar" or the "Company") today reported results for the three months ended September 30, 2023. Third Quarter Highlights Net revenues of $180.6 million for the third quarter GAAP net income of $49.2 million, or $0.91 per share, for the third quarter Adjusted non-GAAP net income of $61.9 million, or $1.15 per share, for the third quarter Dr. Jack Zhang, Amphastar's President and Chief Executive Officer, commented: "We are pleased to announce strong results driven by the success of our diabetes portfolio, particularly following the strategic acquisition of BAQSIMI® and the continued strength of our generic glucagon product. As we move forward, we anticipate that our strong pipeline will continue to drive growth in the future." Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (in thousands, except per share data) Net revenues $ 180,556 $ 120,129 $ 466,290 $ 363,964 GAAP net income $ 49,222 $ 15,874 $ 101,378 $ 57,473 Adjusted non-GAAP net income* $ 61,898 $ 20,232 $ 128,823 $ 65,548 GAAP diluted EPS $ 0.91 $ 0.30 $ 1.91 $ 1.09 Adjusted non-GAAP diluted EPS* $ 1.15 $ 0.38 $ 2.43 $ 1.24 ______________________________ * Adjusted non-GAAP net income and adjusted non-GAAP diluted EPS are non-GAAP financial measures. Please see the discussion in the section entitled "Non-GAAP Financial Measures" and the reconciliation of GAAP to non-GAAP financial measures in Table III of this press release. Third Quarter Results Three Months Ended September 30, Change 2023 2022 Dollars % (in thousands) Product revenues: Glucagon $ 29,514 $ 14,224 $ 15,290 107 % Primatene MIST® 24,834 18,359 6,475 35 % Epinephrine 20,199 19,502 697 4 % Lidocaine 15,522 12,621 2,901 23 % Enoxaparin 7,702 7,983 (281 ) (4 )% Phytonadione 7,449 13,978 (6,529 ) (47 )% Naloxone 4,715 6,818 (2,103 ) (31 )% Other finished pharmaceutical products 37,730 23,635 14,095 60 % Total finished pharmaceutical products net revenues $ 147,665 $ 117,120 $ 30,545 26 % API 4,190 3,009 1,181 39 % Other revenues 28,701 - 28,701 N/A Total product revenues, net $ 180,556 $ 120,129 $ 60,427 50 % Changes in product revenues as compared to the third quarter of the prior year were primarily driven by: Glucagon sales increased primarily due to an increase in unit volumes, as a result of two suppliers discontinuing their glucagon injection products at the end of 2022 Primatene MIST® sales increased due to an increase in unit volumes Lidocaine sales increased primarily due to an increase in unit volumes, as a result of supplier shortages Phytonadione sales decreased due to lower unit volumes, as a result of increased competition Sales of naloxone decreased due to lower unit volumes, as a result of increased competition Other finished pharmaceutical product sales increased primarily due to: Higher unit volumes of dextrose, atropine, calcium chloride, and sodium bicarbonate, due to increased demand caused by supplier shortages during the quarter A full quarter of sales for vasopressin, which was launched in August 2022 Launch of regadenoson in April 2023 Active Pharmaceutical ingredient ("API") sales increased primarily due to the timing of customer purchases Other revenues are comprised of net revenues from the sales of BAQSIMI® of $28.7 million during the three months ended September 30, 2023, which was recognized on a net basis similar to a royalty and based on Eli Lilly & Company's ("Lilly") reported BAQSIMI® net sales of $48.7 million. Currently, BAQSIMI® is being sold by Lilly on our behalf under the Transition Services Agreement ("TSA") with Lilly, whereby Lilly would provide certain services to support the transition of the BAQSIMI® operations to us. Once Amphastar takes over the distribution of BAQSIMI®, Amphastar will recognize the entire revenue amount. This revenue recognition change is expected to be phased in by country during 2024. Three Months Ended September 30, Change 2023 2022 Dollars % (in thousands) Net revenues $ 180,556 $ 120,129 $ 60,427 50% Cost of revenues 72,153 61,619 10,534 17% Gross profit $ 108,403 $ 58,510 $ 49,893 85% as % of net revenues 60% 49% Changes in the cost of revenues and gross margin were primarily driven by: Increased sales of higher-margin products such as glucagon and Primatene MIST®, the sales of ganirelix and vasopressin that were launched in 2022, as well as the sales of regadenoson, which we launched in April 2023 As a result of the TSA, the revenue relating to BAQSIMI® is recognized on a net basis within net revenues. Three Months Ended September 30, Change 2023 2022 Dollars % (in thousands) Selling, distribution, and marketing $ 6,407 $ 4,785 $ 1,623 34 % General and administrative 12,654 11,984 670 6% % Research and development 16,664 18,514 (1,850 ) (10) % Non-operating income (expense), net (9,041 ) (632 ) (8,409 ) NM Selling, distribution, and marketing expenses increased primarily due to expenses related to the expansion of our sales force related to BAQSIMI®, as well as an increase in advertising spending for Primatene MIST® General and administrative expenses increased primarily due to an increase in salary and personnel-related expenses, as well as costs related to the acquisition of BAQSIMI®, which was partially offset by a decrease in legal fees Research and development expenses decreased due to: Decrease in clinical trials expense Decreases in materials and supply expense, as a result of a ramp-up of expenses in 2022 for AMP-018 and our insulin pipeline products This decrease was partially offset by an increase in salary and personnel-related expenses The change in non-operating expenses, net is primarily a result of: Foreign currency fluctuations Costs incurred in connection with the syndicated credit agreement we entered into with Wells Fargo Bank, as syndication agent, to finance the acquisition of BAQSIMI® Mark-to-market adjustments relating to our interest rate swap contracts Cash flow provided by operating activities for the nine months ended September 30, 2023 was $159.6 million. Pipeline Information The Company currently has three ANDAs on the FDA targeting products with a market size of over $3 billion, three biosimilar products in development targeting products with a market size of over $10 billion, and six generic products in development targeting products with a market size of over $8 billion. This market information is based on IQVIA data for the 12 months ended September 30, 2023. The Company is developing multiple proprietary products with injectable and intranasal dosage forms. Amphastar's Chinese subsidiary, ANP, currently has 17 Drug Master Files, or DMFs, on the FDA and is developing several additional DMFs. Company Information Amphastar is a bio-pharmaceutical company that focuses primarily on developing, manufacturing, marketing, and selling technically-challenging generic and proprietary injectable, inhalation, and intranasal products. Additionally, the Company sells insulin API products. Most of the Company's finished products are used in hospital or urgent care clinical settings and are primarily contracted and distributed through group purchasing organizations and drug wholesalers. More information and resources are available at . Amphastar's logo and other trademarks or service marks of Amphastar, including, but not limited to Amphastar®, BAQSIMI®, Primatene MIST®, REXTOVY®, Amphadase®, and Cortrosyn®, are the property of Amphastar. Non-GAAP Financial Measures To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company is disclosing non-GAAP financial measures when providing financial results. The Company believes that an evaluation of its ongoing operations (and comparisons of its current operations with historical and future operations) would be difficult if the disclosure of its financial results were limited to financial measures prepared only in accordance with GAAP. As a result, the Company is disclosing certain non-GAAP results, including (i) Adjusted non-GAAP net income (loss) and (ii) Adjusted non-GAAP diluted EPS, which exclude amortization expense, share-based compensation, impairment charges, expenses related to our acquisition of BAQSIMI®, debt issuance costs, legal settlements, and other one-time events in order to supplement investors' and other readers' understanding and assessment of the Company's financial performance because the Company's management uses these measures internally for forecasting, budgeting, and measuring its operating performance. Whenever the Company uses such non-GAAP measures, it will provide a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures. Investors and other readers are encouraged to review the related GAAP financial measures and the reconciliation of non-GAAP measures to their most directly comparable GAAP measures set forth below and should consider non-GAAP measures only as a supplement to, not as a substitute for or as a superior measure to, measures of financial performance prepared in accordance with GAAP. Conference Call Information The Company will hold a conference call to discuss its financial results today, November 8, 2023, at 2:00 p.m. Pacific Time. To access the conference call, dial toll-free (877) 407-0989 or (201) 389-0921 for international callers, ten minutes before the conference. The call can also be accessed on the Investors page on the Company's website at . Forward-Looking Statements All statements in this press release and in the conference call referenced above that are not historical are forward-looking statements, including, among other things, statements relating to our expectations regarding future financial performance and business trends, our future growth, sales and marketing of our products, market size and expansion, product portfolio, product development, the timing of FDA filings or approvals, including the DMFs of ANP, the timing of product launches, acquisitions and other matters related to our pipeline of product candidates, the timing and results of clinical trials, the prospective benefits of the acquisition of BAQSIMI®, and other future events, including potential contingent consideration amounts and terms related to the acquisition of BAQSIMI®, the anticipated benefits of BAQSIMI® to our product portfolio, Amphastar's commitment to strategically maximizing the commercial potential of BAQSIMI®, and other future events. These statements are not facts but rather are based on Amphastar's historical performance and our current expectations, estimates, and projections regarding our business, operations, and other similar or related factors. Words such as "may," "might," "will," "could," "would," "should," "anticipate," "predict," "potential," "continue," "expect," "intend," "plan," "project," "believe," "estimate," and other similar or related expressions are used to identify these forward-looking statements, although not all forward-looking statements contain these words. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and assumptions that are difficult or impossible to predict and, in some cases, beyond Amphastar's control. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in Amphastar's filings with the Securities and Exchange Commission, including in our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 1, 2023, in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, filed with the SEC on May 9, 2023, and in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, filed with the SEC on August 8, 2023. In particular, there can be no guarantee that the acquisition of BAQSIMI® will be beneficial to our business, that any event, change or other circumstance could cause the results of the acquisition and integration of BAQSIMI® into our product portfolio to differ from Amphastar's expectation, that all or any of the contingent consideration will be payable on the terms described herein or at all, or that Amphastar can reliably predict the impact of BAQSIMI® on its financial results or financial guidance. You can locate these reports through our website at and on the SEC's website at The forward-looking statements in this release speak only as of the date of the release. Amphastar undertakes no obligation to revise or update information or any forward-looking statements in this press release or the conference call referenced above to reflect events or circumstances in the future, even if new information becomes available or if subsequent events cause our expectations to change. Contact Information: Amphastar Pharmaceuticals, Inc. Bill Peters Chief Financial Officer (909) 476-3416 Table I Amphastar Pharmaceuticals, Inc. Condensed Consolidated Statement of Operations (Unaudited; in thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Net revenues: Product revenues, net $ 151,855 $ 120,129 $ 437,589 $ 363,964 Other revenues 28,701 - 28,701 - Net revenues 180,556 120,129 466,290 363,964 Cost of revenues 72,153 61,619 211,309 186,272 Gross profit 108,403 58,510 254,981 177,692 Operating expenses: Selling, distribution, and marketing 6,407 4,784 20,234 16,059 General and administrative 12,654 11,984 38,418 34,433 Research and development 16,664 18,514 53,322 57,535 Total operating expenses 35,725 35,282 111,974 108,027 Income from operations 72,678 23,228 143,007 69,665 Non-operating income (expenses), net (9,041) (632) (12,993) 5,115 Income before income taxes 63,637 22,596 130,014 74,780 Income tax provision 14,025 6,559 27,160 16,187 Net income before equity in losses of unconsolidated affiliate 49,612 16,037 102,854 58,593 Equity in losses of unconsolidated affiliate (390) (163) (1,476) (1,120) Net income $ 49,222 $ 15,874 $ 101,378 $ 57,473 Net income per share: Basic $ 1.01 $ 0.32 $ 2.10 $ 1.18 Diluted $ 0.91 $ 0.30 $ 1.91 $ 1.09 Weighted-average shares used to compute net income per share: Basic 48,701 48,904 48,368 48,635 Diluted 53,921 52,788 52,997 52,665 Table II Amphastar Pharmaceuticals, Inc. Condensed Consolidated Balance Sheets (Unaudited; in thousands, except share data) September 30, December 31, 2023 2022 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 266,778 $ 156,098 Restricted cash 4,259 235 Short-term investments 33,098 19,664 Restricted short-term investments 2,200 2,200 Accounts receivable, net 118,990 88,804 Inventories 109,978 103,584 Income tax refunds and deposits 1,506 171 Prepaid expenses and other assets 6,196 7,563 Total current assets 543,005 378,319 Property, plant, and equipment, net 280,836 238,266 Finance lease right-of-use assets 610 753 Operating lease right-of-use assets 32,666 25,554 Investment in unconsolidated affiliate 1,026 2,414 Goodwill and intangible assets, net 619,351 37,298 Long-term investments 972 - Other assets 25,299 20,856 Deferred tax assets 40,868 38,527 Total assets $ 1,544,633 $ 741,987 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 222,719 $ 84,242 Income taxes payable 31,092 4,571 Current portion of long-term debt 433 3,046 Current portion of operating lease liabilities 3,719 3,003 Total current liabilities 257,963 94,862 Long-term reserve for income tax liabilities 7,225 7,225 Long-term debt, net of current portion and unamortized debt issuance costs 638,206 72,839 Long-term operating lease liabilities, net of current portion 30,199 23,694 Deferred tax liabilities 201 144 Other long-term liabilities 15,699 14,565 Total liabilities 949,493 213,329 Commitments and contingencies Stockholders' equity: Preferred stock: par value $0.0001; 20,000,000 shares authorized; no shares issued and outstanding - - Common stock: par value $0.0001; 300,000,000 shares authorized; 59,220,178 and 47,898,466 shares issued and outstanding as of September 30, 2023 and 58,110,231 and 48,112,069 shares issued and outstanding as of December 31, 2022, respectively 6 6 Additional paid-in capital 477,880 455,077 Retained earnings 373,102 271,723 Accumulated other comprehensive loss (8,411) (8,624) Treasury stock (247,437) (189,524) Total equity 595,140 528,658 Total liabilities and stockholders' equity $ 1,544,633 $ 741,987 Table III Amphastar Pharmaceuticals, Inc. Reconciliation of Non-GAAP Measures (Unaudited; in thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 GAAP net income $ 49,222 $ 15,874 $ 101,378 $ 57,473 Adjusted for: Intangible amortization 6,168 392 6,651 1,088 Share-based compensation 4,644 4,299 15,620 13,556 Impairment of long-lived assets 474 - 3,174 - Expenses related to BAQSIMI?? acquisition 2,182 - 3,682 - Debt issuance costs 3,019 - 6,043 - Litigation settlements - 800 - (4,929) Income tax provision on pre-tax adjustments (3,811) (1,133) (7,725) (1,640) Non-GAAP net income $ 61,898 $ 20,232 $ 128,823 $ 65,548 Non-GAAP net income per share: Basic $ 1.27 $ 0.41 $ 2.66 $ 1.35 Diluted $ 1.15 $ 0.38 $ 2.43 $ 1.24 Weighted-average shares used to compute non-GAAP net income per share: Basic 48,701 48,904 48,368 48,635 Diluted 53,921 52,788 52,997 52,665 Three Months Ended September 30, 2023 Cost of revenue Selling, distribution and marketing General and administrative Research and development Non-operating income (expense), net Income tax provision GAAP $ 72,153 $ 6,407 $ 12,654 $ 16,664 $ (9,041) $ 14,025 Intangible amortization (6,149) - 34 (53) - - Share-based compensation (1,004) (213) (2,975) (452) - - Impairment of long-lived assets (470) - (4) - - - Expenses related to BAQSIMI® acquisition - - (357) - 1,825 - Debt issuance costs - - - - 3,019 - Income tax provision on pre-tax adjustments - - - - - 3,811 Non-GAAP $ 64,530 $ 6,194 $ 9,352 $ 16,159 $ (4,197) $ 17,836 Three Months Ended September 30, 2022 Cost of revenue Selling, distribution and marketing General and administrative Research and development Non-operating income (expense), net Income tax provision GAAP $ 61,619 $ 4,784 $ 11,984 $ 18,514 $ (632) $ 6,559 Intangible amortization (206) - (186) - - - Share-based compensation (915) (178) (2,810) (396) - - Litigation settlements - - (800) - - - Income tax provision on pre-tax adjustments - - - - - 1,133 Non-GAAP $ 60,498 $ 4,606 $ 8,188 $ 18,118 $ (632) $ 7,692 Nine Months Ended September 30, 2023 Cost of revenue Selling, distribution and marketing General and administrative Research and development Non-operating income (expense), net Income tax provision GAAP $ 211,309 $ 20,234 $ 38,418 $ 53,322 $ (12,993) $ 27,160 Intangible amortization (6,582) - (16) (53) - - Share-based compensation (3,868) (649) (9,323) (1,780) - - Impairment of long-lived assets (3,170) - (4) - - - Expenses related to BAQSIMI® acquisition - - (1,857) - 1,825 - Debt issuance costs - - - - 6,043 - Income tax provision on pre-tax adjustments - - - - - 7,725 Non-GAAP $ 197,689 $ 19,585 $ 27,218 $ 51,489 $ (5,125) $ 34,885 Nine Months Ended September 30, 2022 Cost of revenue Selling, distribution and marketing General and administrative Research and development Non-operating income (expense), net Income tax provision GAAP $ 186,272 $ 16,059 $ 34,433 $ 57,535 $ 5,115 $ 16,187 Intangible amortization (660) - (428) - - - Share-based compensation (3,238) (540) (8,389) (1,389) - - Litigation settlements - - (800) - (5,729) - Income tax provision on pre-tax adjustments - - - - - 1,640 Non-GAAP $ 182,374 $ 15,519 $ 24,816 $ 56,146 $ (614) $ 17,827 SOURCE: Amphastar Pharmaceuticals, Inc. 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EL MONTE, Calif.--(BUSINESS WIRE)--Fulgent Genetics, Inc. (NASDAQ: FLGT) (“Fulgent” or the “Company”), a technology-based company with a well-established clinical diagnostic business and a therapeutic development business, today announced two upcoming poster presentations at the Society for Immunotherapy of Cancer (SITC) 38th Annual Meeting, to be held virtually and at the San Diego Convention Center from November 1 to 5, 2023. Details on Fulgent’s poster presentations at SITC are as follows: Title: Critical clinical evaluation of plasma to tumor tissue concordance by cancer type using Illumina’s cell-free ctTSO500 commercial liquid biopsy assay Date and Time: Saturday, November 4 from 9:00 a.m. to 8:30 p.m. PDT Abstract/Poster #: 222-B Title: FID-007: Nanoencapsulated Paclitaxel Derived from a Novel Nano-Drug Delivery Platform Date and Time: Saturday, November 4 from 9:00 a.m. to 8:30 p.m. PDT Abstract/Poster #: 782-B The posters will be available following the presentations on the Investor Relations section of the company’s website at . About FID-007 FID-007 consists of paclitaxel encapsulated in a polyethyloxazoline (PEOX) polymer excipient designed to enhance PK, biodistribution, and tolerability. In addition to allowing the drug to remain in solution until it can enter a cancer cell, the PEOX nanoparticle is designed to preferentially deliver paclitaxel to the tumor through the leaky hyperpermeable vasculature. About Fulgent Pharma Fulgent Pharma has developed and possesses a novel nanoencapsulation technology, which includes over 40 patents and a targeted therapy platform designed to improve the therapeutic window and pharmacokinetic pro both new and existing cancer drugs. Fulgent Pharma began as Fulgent Therapeutics in Temple City, California, in June 2011. As the company progressed into the sphere of personalized medicine, it also started delving into clinical genetic testing – a natural complement. In 2016, Fulgent Therapeutics split into two separate entities – Fulgent Pharma and Fulgent Genetics – in order to better pursue their independent objectives. Today, Fulgent Pharma is fully focused on perfecting drug candidates for treating a broad range of cancers. Its partners in this endeavor include the University of Southern California, Moffitt Cancer Center, and ANP Technologies. About Fulgent Fulgent is a technology-based company with a well-established clinical diagnostic business and a therapeutic development business. Fulgent’s clinical diagnostic business offers molecular diagnostic testing services, comprehensive genetic testing, and high-quality anatomic pathology laboratory services designed to provide physicians and patients with clinically actionable diagnostic information to improve the quality of patient care. Fulgent’s therapeutic development business is focused on developing drug candidates for treating a broad range of cancers using a novel nanoencapsulation and targeted therapy platform designed to improve the therapeutic window and pharmacokinetic pro new and existing cancer drugs. The Company aims to transform from a genomic diagnostic business into a fully integrated precision medicine company. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements in this press release include statements about, among other things: future performance; guidance regarding expected quarterly and annual financial results, core revenues, GAAP loss, and non-GAAP loss; evaluations and judgments regarding the stability of certain revenue sources, momentum, vision, future opportunities and future growth the Company’s testing services and technologies and expansion; the Company’s identification and evaluation of opportunities and its ability to capitalize on opportunities, capture market share, or expand its presence in certain markets; and the Company’s ability to continue to grow its business. Forward-looking statements are statements other than historical facts and relate to future events or circumstances or the Company’s future performance, and they are based on management’s current assumptions, expectations, and beliefs concerning future developments and their potential effect on the Company’s business. These forward-looking statements are subject to a number of risks and uncertainties, which may cause the forward-looking events and circumstances described in this press release to not occur, and actual results to differ materially and adversely from those described in or implied by the forward-looking statements. These risks and uncertainties include, among others: the market potential for, and the rate and degree of market adoption of, the Company’s tests, including its Beacon787 panel; its ability to maintain turnaround times and otherwise keep pace with rapidly changing technology; the Company’s ability to maintain the low internal costs of its business model; the Company’s ability to maintain an acceptable margin; risks related to volatility in the Company’s results, which can fluctuate significantly from period to period; risks associated with the composition of the Company’s customer base, which can fluctuate from period to period and can be comprised of a small number of customers that account for a significant portion of the Company’s revenue; the Company’s level of success in obtaining coverage and adequate reimbursement and collectability levels from third-party payors for its tests and testing services; the Company’s level of success in establishing and obtaining the intended benefits from partnerships, strategic investments, joint ventures, acquisitions, or other relationships; the success of the Company’s development efforts, including the Company’s ability to progress its candidates through clinical trials on the timelines expected; the Company’s compliance with the various evolving and complex laws and regulations applicable to its business and its industry; and the Company’s ability to protect its proprietary technology and intellectual property. As a result of these risks and uncertainties, forward-looking statements should not be relied on or viewed as predictions of future events. The forward-looking statements made in this press release speak only as of the date of this press release, and the Company assumes no obligation to update publicly any such forward-looking statements to reflect actual results or to changes in expectations, except as otherwise required by law. The Company’s reports filed with the U.S. Securities and Exchange Commission, or the SEC, including its annual report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 28, 2023, and the other reports it files from time to time, including subsequently filed annual, quarterly and current reports, are made available on the Company’s website upon their filing with the SEC. These reports contain more information about the Company, its business and the risks affecting its business, as well as its results of operations for the periods covered by the financial results included in this press release.

EL MONTE, Calif.--(BUSINESS WIRE)-- Fulgent Genetics, Inc (NASDAQ: FLGT) (“Fulgent” or the “Company”), a technology-based company with a well-established clinical diagnostic business and a therapeutic development business, today announced data from a Phase 1/1b clinical study of FID-007 in treating various solid tumors was presented in a poster session at the American Society for Clinical Oncology (ASCO) Annual Meeting in Chicago, IL on June 3, 2023. Of 40 evaluable patients with weekly dose levels from 15 mg/m2 to 160 mg/m2, 7 (18%) had a partial response by RECIST 1.1 (pancreatic, biliary tract, and HNSCC) and 14 (35%) had stable disease. Three out of 4 HNSCC patients with PR had previously been treated with taxane. The duration of follow-up (months), median (range) is 12.0 (0.4 - 38.9). No high-grade neuropathy has been noted to date. FID-007 demonstrates preliminary evidence of anti-tumor activity in heavily pre-treated patients across various tumor types. Based on overall tolerability, pharmacokinetics, and efficacy, 125mg/m2 has been chosen as the recommended Phase 2 dose (RP2D). Commenting on the data, Ming Hsieh, Chairman of the Board and Chief Executive Officer, said, “We are pleased with the progress we are making with the clinical program for FID-007 and this encouraging data, that FID-007 may potentially address a number of unmet needs in various cancers. We look forward to next steps with this program, including initiation of a Phase 2 clinical study for the treatment of head and neck cancer later this year or early next year.” The poster is available on the News & Events section of the company’s Investor Relations website at . About FID-007 FID-007 consists of paclitaxel encapsulated in a polyethyloxazoline (PEOX) polymer excipient designed to enhance PK, biodistribution, and tolerability. In addition to allowing the drug to remain in solution until it can enter a cancer cell, the PEOX nanoparticle is designed to preferentially deliver paclitaxel to the tumor through the leaky hyperpermeable vasculature. About Fulgent Pharma Fulgent Pharma has developed and possesses a novel nanoencapsulation technology which includes over 40 patents and a targeted therapy platform designed to improve the therapeutic window and pharmacokinetic pro both new and existing cancer drugs. Fulgent Pharma began as Fulgent Therapeutics in Temple City, California, in June 2011. As the company progressed into the sphere of personalized medicine, it also started delving into clinical genetic testing—a natural complement. In 2016, Fulgent Therapeutics split into two separate entities—Fulgent Pharma and Fulgent Genetics—in order to better pursue their independent objectives. Today, Fulgent Pharma is fully focused on perfecting drug candidates for treating a broad range of cancers. Its partners in this endeavor include the University of Southern California, Moffitt Cancer Center, and ANP Technologies. About Fulgent Fulgent is a technology-based company with a well-established clinical diagnostic business and a therapeutic development business. Fulgent’s clinical diagnostic business offers molecular diagnostic testing services, comprehensive genetic testing, and high-quality anatomic pathology laboratory services designed to provide physicians and patients with clinically actionable diagnostic information to improve the quality of patient care. Fulgent’s therapeutic development business is focused on developing drug candidates for treating a broad range of cancers using a novel nanoencapsulation and targeted therapy platform designed to improve the therapeutic window and pharmacokinetic pro new and existing cancer drugs. The Company aims to transform from a genomic diagnostic business into a fully integrated precision medicine company. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements in this press release include statements about, among other things: future performance; guidance regarding expected quarterly and annual financial results, core revenues, GAAP loss, and non-GAAP loss; evaluations and judgments regarding the stability of certain revenue sources, momentum, vision, future opportunities and future growth the Company’s testing services and technologies and expansion; the Company’s identification and evaluation of opportunities and its ability to capitalize on opportunities, capture market share, or expand its presence in certain markets; and the Company’s ability to continue to grow its business. Forward-looking statements are statements other than historical facts and relate to future events or circumstances or the Company’s future performance, and they are based on management’s current assumptions, expectations, and beliefs concerning future developments and their potential effect on the Company’s business. These forward-looking statements are subject to a number of risks and uncertainties, which may cause the forward-looking events and circumstances described in this press release to not occur, and actual results to differ materially and adversely from those described in or implied by the forward-looking statements. These risks and uncertainties include, among others: the market potential for, and the rate and degree of market adoption of, the Company’s tests, including its Beacon787 panel; its ability to maintain turnaround times and otherwise keep pace with rapidly changing technology; the Company’s ability to maintain the low internal costs of its business model; the Company’s ability to maintain an acceptable margin; risks related to volatility in the Company’s results, which can fluctuate significantly from period to period; risks associated with the composition of the Company’s customer base, which can fluctuate from period to period and can be comprised of a small number of customers that account for a significant portion of the Company’s revenue; the Company’s level of success in obtaining coverage and adequate reimbursement and collectability levels from third-party payors for its tests and testing services; the Company’s level of success in establishing and obtaining the intended benefits from partnerships, strategic investments, joint ventures, acquisitions, or other relationships; the success of the Company’s development efforts, including the Company’s ability to progress its candidates through clinical trials on the timelines expected; the Company’s compliance with the various evolving and complex laws and regulations applicable to its business and its industry; and the Company’s ability to protect its proprietary technology and intellectual property. As a result of these risks and uncertainties, forward-looking statements should not be relied on or viewed as predictions of future events. The forward-looking statements made in this press release speak only as of the date of this press release, and the Company assumes no obligation to update publicly any such forward-looking statements to reflect actual results or to changes in expectations, except as otherwise required by law. The Company’s reports filed with the U.S. Securities and Exchange Commission, or the SEC, including its annual report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 28, 2023, and the other reports it files from time to time, including subsequently filed annual, quarterly and current reports, are made available on the Company’s website upon their filing with the SEC. These reports contain more information about the Company, its business and the risks affecting its business, as well as its results of operations for the periods covered by the financial results included in this press release.