SWK Holdings Corp
NASDAQ:SWKH
SWK Holdings Corp
SWK Holdings Corp. is engaged in the business of financial and asset management in the field of pharmaceutical. The company is headquartered in Dallas, Texas and currently employs 35 full-time employees. The firm is focused on providing various capital solutions to a range of life science companies, institutions and inventors. The firm operates through two segments: Finance Receivables and Pharmaceutical Development. Its Finance Receivables segment is primarily focused on monetizing cash flow streams derived from commercial-stage products and related intellectual property through royalty purchases and financings, as well as through the creation of synthetic revenue interests in commercialized products. In addition, through its wholly owned subsidiary, SWK Advisors LLC, it provides non-discretionary investment advisory services to institutional clients in separately managed accounts to similarly invest in life science finance. Through its subsidiary, Enteris BioPharma, Inc., its Pharmaceutical Development segment offers formulation solutions built around its oral drug delivery technology, the Peptelligence platform.
SWK Holdings Corp. is engaged in the business of financial and asset management in the field of pharmaceutical. The company is headquartered in Dallas, Texas and currently employs 35 full-time employees. The firm is focused on providing various capital solutions to a range of life science companies, institutions and inventors. The firm operates through two segments: Finance Receivables and Pharmaceutical Development. Its Finance Receivables segment is primarily focused on monetizing cash flow streams derived from commercial-stage products and related intellectual property through royalty purchases and financings, as well as through the creation of synthetic revenue interests in commercialized products. In addition, through its wholly owned subsidiary, SWK Advisors LLC, it provides non-discretionary investment advisory services to institutional clients in separately managed accounts to similarly invest in life science finance. Through its subsidiary, Enteris BioPharma, Inc., its Pharmaceutical Development segment offers formulation solutions built around its oral drug delivery technology, the Peptelligence platform.
Asset Sales: SWK sold the majority of its royalty assets and MOD3 subsidiary assets at about book value, helping close the gap between market price and asset value.
Capital Returns: The company returned $49 million to shareholders via a $4 per share dividend, plus $3 million through buybacks of around 200,000 shares year-to-date.
Solid Earnings: Net income for the quarter was $4.6 million, with management suggesting this is a reasonable run rate going forward.
Book Value: Tangible financing book value per share rose 11.7% year over year to $18.47 after accounting for the special dividend.
Cost Reduction: Operating expenses dropped significantly, especially due to lower credit loss provisions and the MOD3 sale.
Outlook: Management sees the current quarter's results as a good proxy for future earnings, with a simplified business and a healthy loan book.
