Shares of Assertio (NASDAQ: ASRT) surged higher by more than 10% on Tuesday after the company reported an impressive 18% increase in net product sales year-over-year in Q1 2023.

The company said that sales growth was driven by the continued success of its Indocin product and the first full quarter of sales for Sympazan.

Assertio’s net product sales exceeded internal expectations and generated more than $25 million in adjusted EBITDA and almost $23 million in cash flow from operations.

As a result of the strong performance in the first quarter, the Company raised its full-year outlook for net product sales to be between $157 million and $167 million, with adjusted EBITDA estimated to be between $90 million and $98 million.

These increased projections are a clear indication of Assertio's continued growth and success in the pharmaceutical industry.

Assertio's success can be attributed to several factors, including the adoption of an innovative digital non-personal sales model, which has helped to reduce costs and improve profitability. Additionally, the Company's recent acquisition of Sympazan has positioned it for significant and sustainable growth in the coming years.

The pending acquisition of Spectrum Pharmaceuticals is also expected to accelerate and enhance the profit opportunities for the combined company. The transaction is expected to close in Q3 2023 and will allow Assertio to further diversify its net product sales with the addition of ROLVEDON™, a novel long-acting G-CSF product recently launched in October 2022.

Assertio intends to market ROLVEDON through Spectrum's existing commercial team, in addition to leveraging its digital non-personal resources. This strategy will enable Assertio to increase the market accessible to ROLVEDON in a time and cost-efficient manner not available under the traditional sales model.

The patent protection of ROLVEDON, which could extend to 2036, represents a significant runway for the Assertio to generate increased adjusted EBITDA and drive increased operating cash flows through successful execution of its plan.

Assertio has also made significant strides in strengthening its balance sheet. In February 2023, the Company completed a $30 million exchange of convertible debt in a cash and stock exchange transaction, which reduced its overall debt by 43%.

The Company's cash and cash equivalents totaled $68.6 million.

Assertio's strong Q1 2023 results exceeded expectations and position the Company for significant and sustainable growth in the coming years.

Shares of Assertio trade on the NASDAQ under the ticker symbol ASRT. For more information visit www.assertiotx.com.