ATRS - Earnings call transcript Q2 2019

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Operator

Ladies and gentlemen, welcome to the Antares Pharma's Second Quarter 2019 Operating and Financial Results Conference Call. Throughout today's recorded presentation, all participants will be in a listen-only mode. After the presentation, there will be an opportunity to ask questions. [Operator Instructions]

I will now hand the conference call over to Jack Howarth, Antares' Vice President of Corporate Affairs. sir. ahead, go Please

Jack Howarth

on and also quarter everyone. operating XXXX the section. be copy Amy, under at announced For an the achievements. today, interactive our of Investors found can release second financial morning's press Antares good you, website Earlier www.antarespharma.com teleconference morning, This we A the contains Thank results presentation. and slide

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remind within These of the the from of Provisions risks results and I'd any some this U.S. Litigation uncertainties Before could that and in Private during actual forward-looking made Harbor Act subject to of materially meaning statements, call XXXX. statements we will forward-looking Securities those statements certain of conference differ are statements. begin, you to the projected Safe contain our like Reform

periodic statements development XXXX and statements also financial ectopic including forecast research; from and action; events. and that differ factors and revenue for about achievement OTREXUP; today's and future sumatriptan Commission. development Pfizer; partnered made filings of and projects SEC the future of the clinical cause Securities the expectation XX-Q on are ATRS-XXXX; Makena, product new in generic Teva current XYOSTED as Factors market results to and updated FDA Teva's revenue Company's Company's acceptance updated Form provide not and Exchange Antares' approvals of performance, in with market in and X-K which and and proprietary other and EpiPen; and trials, include, actual time-to-time guidance other on presentation filings reimbursement, future pregnancy the results identified timing XX-K limited the with methotrexate and filings the including recent Form are successful launch Antares from and could but with and to, Forward-looking adequate or acceptance, revenue from and

law these we on our of and today's you in investors these of of materials. on except contained to place any statements this documents hereof, future Information a date circumstances is call, Links any statements. information the update the information, events as forward-looking required Investor as or are new not by or website, date to The as available does forward-looking call undue obligation otherwise. company result after to encourage these section Antares undertake the reliance providing this and of cautions to conference conference not review

Officer; Vice Chief Bob the Joining Executive me are and President President call on Financial Fred Chief Apple, Powell, Executive Officer. and today and

review open pipeline Let's slide begin will and Bob review three. review Fred high-level presentation, will catalysts. results, your and through financials, agenda the for XYOSTED of up the give will number launch then update questions. outstanding a with today's quarter our call for and detailed you lines Bob our go second the on we'll After future a

over now Bob? call Apple. our I'll Bob CEO, to the turn

Bob Apple

we for It's second growth. minutes a ago impressive great is big very and quarter few we and Jack, another didn't we the transformational that period took believe to our for Antares, what today's good a foundation everyone revenue six what laying reported quarterly for noted be our will we month But company. mention call on step and We today. morning. morning earnings Thanks conference talk this everyone webcast. Jack to that to announced

focus of of products. both consisting proprietary and diversified to us the a drives partnered business, development strategy Our on commercial

values. an organization believed We our long simple as core success rooted two have that is in

proprietary commercialized second, utilizing accomplished in helping technologies same. developing our industry the patients. make our partners device products, the And meaningful a lives that our of difference First,

results believe values year. us revenue validate core We quarterly our those for and to two our targets allow the focus to on continue

have in full announce to excited so guidance much progress that of morning raising $XXX are a line that fact, top we to made year I'm XXXX. for to range already We our million $XXX revenue million this

year. This of So strategy we quarter million I how helped to is in months the for Please of second let's over total believe reported number four. revenue quarter revenue, Today, direct of slide just a highlights quarter talk we and last a way sixth XXXX approximately in past We reported year. achievements $XX.X is about will the execution some the what the six corporate of the in pave our be this result growth. the record mentioned. the of total the double our consecutive we successful $XX.X million turn believe

calls product to and, that development period that. Product company, from in the year shift growth. goal XX% achieved consecutive last revenue of revenue grew represented clearly an revenue important the for importantly, the I mentioned versus same and the earnings have quarter previous was we ninth

by key revenue and XYOSTED, The proprietary Makena auto subcu the was partnered products, our EpiPen growth driven all generic injector. impressive of as and product such

million. As revenue a revenue product royalty growth, result to of from our our grew $X.X partnerships XXX% our

continue team call launched products and I essentially the briefly XYOSTED sales key would XYOSTED. January see touch interest physician with to like a to full before turning over and in to patient we in increased We on Fred. these

currently testosterone the XYOSTED replacement product branded market. growing is in fastest the fact, In

shipments dramatic Teva market increase informed saw entered Teva GPOs regards full of our school us that limited rise key market. into in the still this mode and that Teva for Teva's all the is contracts end have quarter. the adults Epi they for has launch junior second partner epipen late products, in the anticipates in in commercial the With second the EpiPen of Generic back major launching with of year EpiPen. and share the last time by trade quantities, year to but to of to launched a quarter

growth highest market be well. share of and to driver to product, auto continue as hydroxyprogesterone Physicians Makena's Injector the injector IM a for according prefer the meaningful in Auto to the AMAG. over rezoning patients market to-date, us the Makena The continues

growth how continue some commitment that we do a ambitious set to that We and to month a year that warehousing succeed as for future many both We we capabilities To the Minnesota. believe we to proprietary this pharmaceutical will strategy to and and have, we going? We manufacturing, and office goals facility as for anticipated and proprietary a momentum this whom businesses after significantly expand by to our products new space keep long-term. partner by So, companies our our success. our expanding partner end, last our the of emphasizes true made laboratory, will and developer support work. in believe all, partner staying

breakthrough in quarters. most quarter current we growth a We losses. a to the transition our and have lease importantly, believe complete substantial But when facility has process a topline reductions we'll expires. growth set for will the truly as new Antares. we We gradually likely been increases as saw the This it's update course we operating And a future site in site. additional in for

second call over quarter our to Fred I'm on now the for to going outstanding Fred? financial and results. turn first half details

Fred Powell

turn X. Please slide to number Thanks Bob.

product. recall this changes the in theme up quarterly Bob and XX for over will on partnered several another and sequential one the to products proprietary net tremendous had reduction months, of said, As the Bob another quarter approval operating significant loss. you introduced, that revenue we've substantial Antares and expense Picking with revenue past was two growth due

in the meaningful to Generic last year changes late both launch last approved With regards mix, of Teva's in and Makena full launch AMAG's EpiPen year. Auto with and commercial in Makena second Subcu XXXX Injector the EpiPen limited the were revenue of quarter

now and these of royalty both are device We recording products. for income

On OTREXUP go with commercial new side the expanded important whole, sales to territories. force in has growth detailing nice continues plan launch of according the XYOSTED product seen and physicians the to proprietary business, our

three breakdown So financial for months providing quarter let the detailed and expenses XXXX, by XXXX. million our for in to June operating ended $XX.X was my Total revenues XXXX, second increase. revenue XXX% the start of compared million of a $XX.X XX, me a overview

million, XXXX, last was reported ended months For $XX.X million $XX.X the to June a increase. six XX, XX% compared year, total revenue

$XX.X for were Sales XXXX, ended reported compared OTREXUP months comparable million period $X $XX.X sales three $XX we're months products XYOSTED totaled year. million compared during first XX, million ended XXXX were $X.X last XXXX, of $XX.X as same for million in the XXXX period in compared to June to increase. million the June proprietary XX, of six months million to increase. and XX% for $X.X an million And XXXX, of the our million $XX.X three first a last the commercial compared XX% six XXXX, as Product to months the during year, reported for and

totaled million in sales for million Sumatriptan $X.X $XX.X ended June XXXX revenue Epi devices. consistent the months from Generic Free to and and XX, Partnered Teriparatide, devices, as Makena, Needle three compared product XXXX

first XXXX. revenue sales Epi and product For by in increases were and The million three month devices. of sales totaled driven the versus XXXX, $XX.X reported partnered $XX.X million half of in product six primarily XYOSTED

six perform $X.X month development our earned and includes $X.X development intellectual arrangement partners three license XXXX million partners products amounts million fees the which to from to revenue and we June their $X.X respectively, joint with right activities $X.X development or and compared in to and revenue received behalf. use under was Licensing new periods for for XXXX. develop million ended on the Licensing property in and development million and XX,

six primarily programs. compared and million Teriparatide months $X.X a was the increase. the the XXX% month was Our licensing XX, $X.X for from for ended pen for June period and and XXXX, million development same three ended XX, Pfizer June three Royalty XXXX, XXXX revenue rescue to revenue in periods the development

XXXX, increase. six-month was XXXX, the June royalty XXX% period compared XX, revenue million in $X.X a For to ended $X.X million

six-month Royalties in-market product of Makena by from significant launched increase quantities attributable in generic are from Teva the in periods our AMAG's increased products sales recognized The based limited which for royalties product, and on sold XXXX partners. to royalties sales was EpiPen primarily three last Auto-Injector late was year. their and the of of on net

six-month to for periods were The XXXX. expenses $XX.X expenses million launch ended of XX, the XXXX. of XXXX, quarter primarily $XX.X XXXX sales operating expenses as three and XXXX six attributable compared for months $XX.X in million in and June additional of the the associated $XX.X for with second to expenses in Operating marketing Operating compared million, to the was XYOSTED. increase were million

XX, June $XX.X and per Net XX%. share loss million for second XXXX compared $X.XX periods three XXXX, was XX, XXXX, $X.XX $X.X the to in for in respectively of XXXX in loss million the ended to compared Net million $X.X and $X.XX for XXXX. six six-month $X.XX June XXXX, and ended months a the and million was $X.X of quarter reduction and

June end million $XX.X equivalents the at December XXXX, and XX, cash $XX.X at million cash to of XX, first the quarter. At and were million $XX.X compared XXXX,

quarter XXXX, the security of execution second Hercules Capital, the of agreement this funded was During company for total the $XX of the and existing amended $XX million agreement loan a million. with and upon a new loan

first quarter XXXX. June not of second of we recall us same equity of was execution the $XX did also to loan we the the You'll which that ATM tranche the during facility, XXXX. in the At-the-Market time, upon utilize At termination original of or the million announced of funded offering agreement

We of Also, ZOMA-Jet remaining second year of and of the balance connection with $X.X the half the Needle-Free that this received in $X.X we quarter, in time. at system. sale previously million the second in million transaction receiving delivery closing installment final the half or announced anticipate the

in XXXX. a sale the on You'll recorded the product recall fourth of gain line the of quarter we that needle-free

For first we worth Ferring of the months six devices. $X.X million sold XXXX, of

devices will after stop of supplying Ferring completion the We needle-free transaction. the

Bob? my I'll now the Bob. turn back concludes That to remarks. call prepared

Bob Apple

of an Thanks, that launch for move covered update year-end. we happy the is critical it's without to The launch. part increase XYOSTED commercial to strategy of lives the of Fred. by launch our Please going our turn XYOSTED to to is on report slide has of an of goal important a doubt six product I'm well. continued commercial all two-thirds each access month care any towards which as success Managed and

distributors to prescriptions or the sales according of It note the number Through is Health that June than Solutions. And filled product by refills. the important XYOSTED for are not account to that on more been and Symphony. direct Symphony sales wholesale than XX,XXX prescriptions multiple all of of higher had IQVIA reported month to does the data number

nurse half believe and seeing writing a approximately all practitioners, all of on solid we've blend it forms general physicians' a others a good, medical We prescribers prescriber all of were writing expand. prescriptions, of diverse while base and across to assistants the we foundation are practitioners, balance. targeted. specialties endocrinologists are Urologists which It's the and

early prescriptions a are The or from generic testosterone written injectable. are data who most to or we're recent trends new momentum. in patients product for number kind the still that seeing being launch, either building It's we in our using of prescribers the switching shows the variety patients are product is a the patients the of replacement of the both but feel who gel and means

Therefore, touch patients want awareness doctors social make the ramping and launched to designed have full and we to number educate a XYOSTED up, is and number presence. slate in have while sure accelerate sufficient them initiatives who we we physicians of believe And media if campaign patients and now to half to right our so is reached attend. congresses brand their planned created ask write, a for enough them. encourage marketing We physicians a stay campaign social of with of clinical our we we media to second new

slide you are and grow trending see the in now continue trends for seven, direction. XYOSTED positive Turning monthly to can prescription a to

prescriptions far. summary, launched, strong a refills prescriptions. progress sequential More over we recorded of six with new patient sign In total growing, first the increasing thus has remain are growth are the XYOSTED made persistence. both Since importantly, pleased XYOSTED and new months percentage and double-digit very since we've in launch, month-over-month

and an pipeline. on Moving our now to eight, slide update

to to including retail XX in countries the generic We for and outside for to and teriparatide continued osteoporosis, Forteo in the look of quantities Forteo our To-date, on pathway. at following X forward shift for XXXX. exenatide, we potential have Teva regulatory anticipation pipeline, interim, a or Canada. progress pre-launch for approval these commercial partnership Type US, of BYETTA, Teva devices generic are or the the the in Teva received of FDA launch first has products, FDA ANDA the diabetes, a approval in Focusing marketing

year. We entered last into an important Pfizer collaboration with

development although we and And work QuickShot teams on the about Pfizer's regularly. the very continued potential rescue use their for this has excited our Pfizer on our We combination initiated undisclosed, drug plan. the development respective in modifying meet program are device for product. end is

device proprietary product the product, are ATRS-XXXX, next combination We our continuing neurology development a work space. on potential in drug

new this work need a development on neurology to Early this in also on We potential continue the device We is on fit selected product, on to make is another in formulation. progress progressing pipeline. and we great a believe focusing product strategic CMO proprietary unmet our an space.

And an orphan pipeline for to treat methotrexate injector program quarter, product finally, disclosed a we designation, pregnancy. of another auto with last ectopic

balance is development and clinical another look the books, to to meet for the With in of XXXX. quarter oppressive pathway. We planning with the believe discuss the we Antares have FDA excellent initiated momentum building

continue opportunity for we to and believe XYOSTED out X Based Slide a feedback, be Antares. lays on potential physician positive our catalyst. patient significant

which top-line become one successful driver the priority company. the a growth for launch market, is main of U.S. could number the in Our

Teva, by Symphony the EpiPen other excellent the EpiPen of is strong and second market to of an end the market weekly quarter, launch momentum. seen the increase gaining to Teva at share Solutions. of The generic equivalent according approximately the Health the has EpiPen of XX% in scripts generic a

as royalty larger as stated receive expect significant their forward, product of payments as injector sales the Going to Teva of continued XX% we on EpiPen, share. moves generic revenue market well goal toward Teva's auto

of and Makena continuing our promoting a revenue solid continue contributor defend AMAG year. May, year, hard from the their franchise market AMAG's increase the is the by In to the an share XX% reported the work fourth to hydroxyprogesterone market of quarter of growth. to be benefits the to auto had of X% increase injector. captured injector last in auto quarter first the AMAG this Makena a sequential of

when of market quarter forward demand strong the Based continue to looking second the auto we share on details appears AMAG their remain to The reports are for second more growth injector the the and on for tomorrow. the royalty quarter, results their AMAG we progress believe Makena auto injector. report

of is We of And believe companies another forward and catalyst their therapeutically equivalent a approval for is for ANDA a both Teva this potential Teva's Forteo. plans. for on potentially further to big launch look XXXX a guidance course, opportunity generic from

In we've products partnered balanced our focusing closing, made and this the record on believe drive growth for increasing revenue. is an Antares exciting shareholders. progress that growth sales. results from future time quarter show the for our We our both second our to proprietary total year-to-date The and help commercial revenue continue mix of in and

growth strategy period working that company. We strategy firmly and we share we extraordinary believe for believe path toward on for places forward, growth us our a an today the is sound. continuing We what of you our clear is believe with

Operator, for could you the please line open the question-and-answer session?

Operator

Ku take [Operator We'll sir. first you, Instructions] from Thank question with and Company. our Cowen Stacy

Stacy Ku

Good morning. a a few exciting quarter. Congratulations have questions. I very on

on growth. update testosterone benchmark compliance might the First Can on this us rates? against How refill XYOSTED you with replacement therapy? intramuscular a we

you in updates to have on How advantage one this play would over for of provide what able a out might potential From terms any then a may I Forteo. more. understand, other And I be standpoint? production have Second, you Teva competitors.

Bob Apple

the for Thanks questions. so. Sure,

but very the so period other very product. still that a all time actually testosterone a which the of On average, the two are it's the period time, longer, little quick turnaround short the far Typically very on prescriptions injections, very but on rates you similar any quick are early only to and of on you of IM refills three market. on short rotation in around -- bit out a the still product XYOSTED compared is gels, launch, see written, obviously being the in favorable launch, at XX% to refill

So -- the think painless device is. we far the how it the strong it way to is and use operates it's Clearly, pretty with persistence so how that and XYOSTED. been easy

-- translating think I patients. for it into the hopefully point to at be seems very good this compliance

don't but and June know growth we the into continue that well over numbers yet, We final clearly July. July. into growth prescription have The grow from IQVIA saw we continued the trends to

for continuing XYOSTED. So go well to are things

is On at thing can only your is where it ANDA that intended fully I pharmacy. the Teva's question about be substitutable to is say a true ANDA Forteo, the

look you generics. are other against I at They to think substitutable of fully not Forteo, landscape trying of products the competitive that compete are when are that are they products that XXX(b)(X)s.

there Teva huge for be so clearly when pharmacy And someone prescription for advantage is a at to switched that for Forteo. product writes the a

XX to approval ship devices their U.S. QX had in XXXX. we gearing XXXX. in and the continue forward mentioned of launching too, up that outside be in look launch. product anticipation to in approved the we to hopefully launch in again, getting really is and Teva And for Like countries earlier, that -- Teva We U.S. look been it in I the

Stacy Ku

really more. That's if one And in I slip helpful. could

Teva XX% they you for back-to-school give Could that on any dynamics the commentary they exiting into share EpiPen, be XXXX. potential the season? has believe insight could QX provided demand in Finally supply approaching behind and the

Bob Apple

Yeah.

contracting end So, like the demand to just really earlier, strong of quarter. been started very Teva in very full the has and I mentioned second at the engage

And so our growth a pretty we even saw contracting. tremendous with

not market. supply continues place, to be auto see our Impax, to the are acceleration sufficient We supply the where that with or all knew issues competitors for with that has growth. most in obviously, Teva, disruptions Mylan does injector. Teva There contracts had of contracts we now the an we So, expect do nor both the believe from [indecipherable] and of

market And share we forward. they'll we feel as to continue that go take so potentially

sorry, on more pharmacies shelves. market will have percentage think potentially. the Jr. is an the a in available for know, but EpiPen for expectation the the on the of bringing both their I'm products or market share help the to that school I to large year. Their school important Because at market, it's clearly, launch it's you a if percentage that's And not in start have case

Stacy Ku

you. Thank again. Congratulations

Bob Apple

you. Thank

Operator

Company. And next from Instructions] we'll Wainwright Livnat hear with Oren & [Operator H.C.

Oren Livnat

highlighted from about Yeah, big than a obviously quarter. think I an were sales any prescription guys. us seeing seeing fill inventory we're in pretty retail versus number in positively us that sampling as product. data, Also, things, this of about impact third-party implies, your congratulations actually life Couple they Hey, are on so impact refills issue XYOSTED, Is to guys whether mind a and Can I well $XXX that a channel is is the scripts from or the than maybe couple of questions, on talk more to just us is in the just expecting anticipation my were on you far? you higher reported IQVIA quarter? of data. value think there obviously, of just real in upside just the it most stock in pulling what actual confirm

knowing we can lastly, of current against number you gross comment are where state just And sort going to steady net you and/or forward? what WACC should just in contracting, use

going you I quarter fourth should just royalties hit from lag that EpiPen. in Thanks. is Can to on on that a And such that we may, if remind changed you quarter or quarter Like big still for Teva? expect a royalty is that be boom back-to-school there or XQ, next the see has to a lag us just bump?

Bob Apple

questions. thanks then your first to for I hand XYOSTED Epi will question Fred. the Oren, I and over the question So answer

royalties are we based Epi, revenues. on the currently so royalties on book the On QX we the -- book we QX quarter,

So, back-to-school an sales for QX. related see in the that increase is will if QX, to we there in timeframe,

in -- there much and So Teva report that to quarter royalty over. anymore. the days as no get from XX they after is lag we the a estimate how is shipped. then get We sometime royalty We

the as Fred and try I'll to on that. let multiple questions XYOSTED, far As answer

Fred Powell

with -- had. With the you that channel Thanks start fill Bob. question I'll

actually of the at quarter. inventory We’re saw the able well as distributors big all on days the had more the inventory of as three Meaning, much of to see as have end quarter how beginning we the beginning of hand. end the And the a quarter on they to second the the second the hand they tightening opposed quarter. at that had of

fill believe don't a -- it's we place. taking we numbers that So, the issue with saw channel revenue not

regards reporting, actually tracking shipments the to actually the IQVIA, Symphony data from the we are and reported make We, well. to where well, distributors. information it With we're are IQVIA from the match Symphony, versus XPL then, the seeing internally we up and doesn't actually what our it's very we

And there to often one. that are could be why will sampling probably get those reasons some another obviously of rebuilds. several be multiple one could is on patients that direct their that we is months sell Plus,

So as one months or of actually the backs, worth are it refill. refills prescription may place. back come that three could When it be taking six

a into truly is the see have for as on the sales. not increasing going what's by what they of reported actually there between trade, is actually hand the as Symphony, their well amount being that But we since terms disconnect trade in days

Bob Apple

there's a the Oren sampling. because I XXX% is is in And analysis product are hard of coming they the volume a the typical not to of products launches, this where do to geospatial where else not add don't them from as and for what estimate very would lot that, their through scripts for thing kind obviously only is, it's volume,

So we have that element.

the patients we're think they're knows continue seeing well, I are as what is, on what doctor testosterone, on to then And the for it. that going stay already mentioned Fred to

they're to if IM being product, and they an our to injectable switched XYOSTED. being just on are they're switched So

they in doctors as to or the they've more to one if how giving prescriptions more much on opposed a drug think cautious that. it. been multiple a -- multiple comfortable, as maybe refills prescription never It new was do bit and it are totally I So in

a where combination elements this, amount seeing think being of we we're those made. it's shipments larger really So of

that It's do a priced high get day the can a standpoint. is we There stocking a from our product not What need product know the is stock are you when within from retailers to distributors. a your no product WACC product.

do build job at of and monitoring has like or Fred a of we distributors, so, kind we And any good our like -- levels any mentioned, not know, inventory really been there's that. you channel the clearly

Fred Powell

you as $XXX. question seeing WACC And price, net to gross look less number gross deductions. our a we And take that think We're I the Oren, was the is a net than one other piece. had it's at to XX% for gross where

at to that as So, I at continue to look it's time. add that Again, less to assume we going this could forward, additional rebates gross plans, we the you be impact as going net gross see your model to and also programs XX% could bit that bill it a the below with we deduction. as the impact have it's also But free now, well. that right as of little first net

Oren Livnat

That includes free discounts drugs, not just and rebates?

Fred Powell

right. That's Correct.

Oren Livnat

Correct. All right.

Bob Apple

so we and get we'll as to sampling out better product net, less things give move as to gross And free kind all forward to those and we as of start moving down.

Oren Livnat

All right. so much. Thanks

Operator

comes David Amsellem. question Jaffray, from Our -- Piper next comment with

Mickey Ingerman

for for on morning. questions. taking This Mickey Thanks good the Ingerman David. is Hi,

XYOSTED, access on been on have having XYOSTED? can one topical -- how you the comment provide of and could prior in XYOSTED. XQ before XXXX? Most on And the XQ treatment of the unique to metrics patients that guys prior number prescribers with around you then getting First any to nature for a step-throughs if compares

Bob Apple

know weekly head, a prescribers So, on numbers actually prescribers, -- the top the I on on them an up. a of we're clearly number increase had basis. off the of we've don't But trying look my to in

and see when And XYOSTED. written prescribers opposed continue who ones Up prescribers do -- -- we're is we're multiple X,XXX for what what to prescriptions as to as doing twosies get this those to new they're prescribers, they're write have We to XYOSTED. point, writing trying trying to XYOSTED. there's around

some -- number product. large large it's are launch you And the dynamic same clearly of There that with percentage the a of that take that any up see make writers total also But the are prescriptions writers, only that who not we're number all spectrums all but calling a -- across were were being we seeing. that are large that seeing written. of

because earlier, they state the And care seeing Like more and lot and the testosterone the because really data a from typically so which said far as that in believe endocrinologists I about XX% the forth. see is and steady our as they're docs. that's I the from you of levels primary urologists think unusual, scripts and

they're physicians physicians to see seeing adopt doc. because little typically still, just or primary The KOLs care take our from to scripts are care a waiting of bit primary we're XX% a the sexual coming the medicine longer doing. what But the

think to mix don't good is And really and I your continue more second docs writing I'm the we So, remember more question. sorry XYOSTED. and I see

Mickey Ingerman

have step-throughs been nature and to on topical before? patients have whether of Just the prior treatment

Bob Apple

Yeah.

egregious if a depends there really has then, very have with – which if step-through, a obviously us. the there's a where very cost Typically, as it for contract far no possible with low cost from it's plans is may – The plan And a ones double plans X Tier there the that few is of do generic step-through. pharmacy those we those. on the most as try coverage. high that's keep So, normal as to through step, as any but

done So, all use XYOSTED for XX% testosterone good the think general get this already then we for our patients part. X, XYOSTED. where step to a already their the step-through on news market you is a I of is generics, in have except and generic The traditional for because product, most Tier they that are

for manage therapy and the new process are step. it's most so sorry, step-through those a CoverMyMeds But to through potentially CoverMyMeds for patients. meds simple relatively patients been use to – adjudication have we and help to go with And a physicians that maybe or again, my

Mickey Ingerman

move earliest may that if see sneak helpful. clinic? more. the for into When That's urologic could the it. ATRS-XXXX the one we or product in Got And I indication the is

Bob Apple

Yeah.

to continuing we're work do that. So, on

next be to had see on that. ongoing, to going lot clinics year. We think reformulation we're work, of I it and work And clearly, that's done that's pen in on some Our expectations what the ready. get I potentially is then that development to there track we a that mentioned think we've do a earlier, new we'll is

expect And clinics we things there to along year. I move the so are think and next into moving that

Mickey Ingerman

you Thank Great. much. so

Operator

We'll next Petrone Anthony with Jefferies. from hear

Anthony Petrone

Couple on XYOSTED maybe just congratulations here. Thanks, the on good on some and partnerships. quarter questions

actually payor the us the what – had give the quarter ahead how like can first could contract do it was lives last XYOSTED, an X would many I'll you And landscape, quarter, sounds this on expect are covered the print The well contracts that think benefit before ahead moment? you were were expecting a be and on What of under of you at end have schedule update many on follow-up of partnerships. you million then on we more year? the how Thanks. just

Bob Apple

through going through So XX% when review XYOSTED around They different we late I tiers covered. coverage, probably of put process. earlier, and we PBMs obviously plans plans – formulary the lives over then more their the they did generous of and look for they time review, larger as ones their Like ones. a on other start cover so in drop will quarter, their last all are mentioned and are at that were XYOSTED cover to sign first they

think the number, for it's XX%, exact of at million target we're I of and but the XXX trending our of by year. lives XX% us or really end don't covered XX I know for well that – represents over roughly the basically So all toward more. quite XYOSTED covered lives

important we – thing it's for get doctors as to it more get an and making more that's was for so key us. your What coverage, So it's obviously XYOSTED, second? and patients easier

Anthony Petrone

rescue and itself. wake changes partnerships, business I maybe of the Pfizer, where going really On in in update that the a guess just on Yeah. that are on that quick the pen and in of sits,

a certain of sort we're there So business strategic pair separation some seeing of is businesses. up unit's and

Pfizer any Thanks. that Pfizer for and just development on what update changes program? mean of So the

Bob Apple

Sure.

relationship, our does announced that recent far the on with effect appear Mylan to our As have they not Pfizer transaction. any as transaction

not that Pfizer division they the which was off. Upjohn, are and relationship is spinning with with directly Our

has no there program. to been impact actually so whatsoever And that

not or to do in spin even the whether going to of So, that that all, they if or Meridian off it's be it's approved. going they're unknown if first transaction,

as it they secondly, as do to be negative more fact, likely viewed in look won't think a impact potential And for products. I us us in And a combination it way. positive could

lead that close. of think speculate that I it It's over kind I months six but relation to to our take land and more stays opportunities, to where can't for figure in with completely quite that could we're Pfizer on going strongly transaction.

impact business our for and us, on them. Pfizer, having for negative so usual business it's don't any see And we that as with

Anthony Petrone

Thanks.

Operator

next with And we'll James. hear from Raymond Elliot Wilbur

Elliot Wilbur

morning. Thanks. Good

kind earlier realization, gross sort I be reasonably number comments metric. of close for the saw would Obviously, that sort something around -- to that quickly, improve, following of real that guess XX%. as to of we on steady around is, to Does values our net something up we we think state? but it sound about Just and modeling that using out your term your expectations like numbers longer around expect

Fred Powell

this Elliot, is Fred. -- Wilbur

the we're now. It could how deteriorate predict high right It I not it what improve. get much. to gross we're on as I comment But XX%. And net. said, XX% below I to and We there can't only right it somewhat. could don't as we're improve now, as will slightly expect the As now. will at much can

Bob Apple

Yeah.

think entering contracts determine where now to XYOSTED. rebate is on -- I on, potentially where with other on going ultimately, still we to still it's, have -- long-term right really really we we depending anticipate And land, payors. that

product is, So, are to think them for And going exactly what expect can expected gross a the continue branded say branded improve from net what where think gross to and we the be we're I launch a that, to in I to are products to year. most right I we net.

Elliot Wilbur

to don't outlook, of, to full -- up, with prior the year sort any the expectations? bump to of you relative analyze Okay, over make the where the revenue of performance sort driver sort want in over key outlook? But want incremental what respect in And the of with to great, behind to areas thanks. you And saw can your key respect comments don't full change the of change. year sort

Fred Powell

at And strong as Sure. some as of year. saw we our the that we well royalties, in And in it's receiving Epi the a took partners look being potential the half Fred. as of very the back we were orders from

continue strong through the we the In year. year. this quarter. And it second into going in how of the was surprises even And fact, it next to see of that end beginning demand

at taking it the about, And most royalties $XXX was product area our to $XXX going so million, $XX were guidance to as probably felt that from to $XXX that surrounding looking as it. million, million the that we well as we one million comfortable

Elliot Wilbur

you expectations follow-up Fred. balance question Okay, provide as the And the cash well. in a flow be flow the what financial for just operating of would your metrics Could over Thanks, cash for, some Good. year? you, And quarter? color around operating

Fred Powell

received it because million Ferring. in unusual, $X.X in Sure. receive bit a million from well. was the to half Back of an, In $X.X quarter, right, Ferring the we from we've year, second the expect another as

that sheet, on built revenues, In had the on. a up, balance first inventories to of When significantly, timing see chance inventories revenue we even though, actually down, quarter-over-quarter. came analyze you get our quarter, later you'll based the increased the our

those of the be flow you increased items allowed $XX we both us pull out the So, actually cash once that that if you Hercules. positive, will, million to with

Going our quarters they actually going of well see continue to cash, business. causing forward, receivables, But I more need as get see usage, forward. to would expect cash as in us our not significant to grow the inventory sure will we the as balance to as we did continue out make our growth, and revenue use we to not monitor

Elliot Wilbur

body with this Okay, that that's gears out to methotrexate respect indication. the act indication. and thanks. pregnancy And for potential one I guess literature now to turning and ectopic switching Rob, final there, of question in is given the

likelihood assumption But that know be could point the that I guess is you actually this realistic a this been agency. had at reasonable won't think a that sit they Obviously, did down paper there with that that, is that you a do NDA. my expectation?

Bob Apple

because injector, for injector an pregnancy. ectopic really medical obviously to the data never what there out see been some auto supports there to relative going pregnancies, that, has approval to think auto ectopic But, the because methotrexate, I methotrexate, No, for body an data they're of it's we're want doing. for

studies So, clinical likely be will required.

point And what don't with so, to very anticipate the how it a program of FDA will of be. large be, clinical be, meeting is a We that the will program. really the large

of dose the parameter for degree. of to it majority end we is will the the day, patients, at still get But to because weight, the dosing based some patients, right to basis have on try

so, there an pregnancy. do that are in are putting with parameters methotrexate we be preventing FDA. working But in be And out that will women think, clearly, we ectopic people, we'll the

Elliot Wilbur

thank you. Great,

Operator

And Thalmann, from we'll Ladenburg Kaplan. hear from Matt

Matt Kaplan

patients and seems to fruit would XYOSTED, for the into other on guys. -- them guess, they or taking it I quarter. just TRT morning, Is a where me are come seeing the XYOSTED. novo from? is they converting to It for good background these that, from wanted hanging low to background from of off prior terms Hi, their I in sort dig you topicals patients? therapy? patients Congrats look XYOSTED, minute. injectables injectables be it are where from patients Are of de and meds, coming of

Bob Apple

Right.

it, a I to tend testosterone first-line So is a novo, or a this view product new great through, but to have through sign the of they generic think spend if to therapy. If or their Obviously, great novo, is you this step. are a they signal work little de they're a is way so patients step in as doctor the bit to prior treatment, coverage doing there because there trying time XX% got go for successful de authorizations, relatively that get been more that. our which if to we've through

majority clearly, injection, where mind On injections, are the they giving current opposed on some pretty balance to the a with patients, and intramuscular patients in patient's the also then switch of those they state, the in the conversions. see better simple variability mind, we where a are injection, are it's see some and steady as believe the if gel IM therapy, starting we injection to of better them process, basically of that the a physician's

on ones easiest gel, then potentially they're difficult more gel therapy. And the to to they a use, there are typically needles are a to apply obviously of new They in realize convert, because so thing because and easy the to their they was it's not afraid that mind they're day. every or

But of IM more that, are overall, for seeing taking bit and really than but from we're XYOSTED. all patients injections. time those we're happy de patients novo that patients a so And potential little that's becoming convert

Matt Kaplan

success what or there? in initial your planning your had changes sales I the are good. so And, increasing launch, are Very guess, your you thoughts far size you've in given in any organization,

Bob Apple

the I look and number they're to or territories and some reps. of have we we right or expansion viable there to of mean, at number them Right now, don't needs we of are change be whether how now, doing intend obviously, always not. the actually

an just that's increase that, think we're so that's quarter if we I analysis ready will in of XX be done for that year, territories that third working QX, a well, this any currently to have the I will and dramatically think that, here not expecting there need decide tweaks honestly, it at and the of be to But change type number I'm we reps anything. all. of

update end that the we feel forward has be right to And so a if our the to as and the kind launch really be year, right there's maintaining now analysis of and seem with number done go we we'll towards again, number we confident the of any that thinking. change. that But you

Matt Kaplan

your good. thoughts -- the profitability comments Sounds what on you prior used in quarters? usage, profitability, word, terms a dirty coming in given achieving And cash any of then Fred's are

Bob Apple

Yeah.

we So that answer business this our get. our go that I at on impact that's an a I business, than I'll so piece very it. shot better have can, take if but can a royalties really is Fred, would the to up, continue a of of of probably It think profitable that, Obviously, function that. mix

What from, to on grow resources now. I a terrific loss business. such we is tremendous for putting results flow of striving new relative launch. be think, continue a cash XYOSTED to standpoint we're right and the small that pretty we in so cash We're to amount a burn heavily clearly investing had, And positive, breakeven very to just from can

wild it a really up. lot a how us. for XYOSTED depends card fast so, picks Epi big And on is

profitability bogey epipens the that could they price there more market for factor another selling get us. ultimately What more that they share with, hits XX% net do market and Teva dramatically as the for sell on up impact If key that's they our depending share? wind

with opposed moving want cash give that. as on flow focus comes, so can obviously our just is -- putting is as that, We that and in quarter far to see that our partners. us performing our of element, control devices, really We toward shift business when we that we've of control particular or we're outside area. things been a because think it to half in clearly And profitability, so in profitability guidance to really don't our place you where I but that well

grow try to off we're a continue and execute I it's to Makena -- question. does, how our the at going that control. good is say like and Epi as of But is day, a end to in and well as other area But impact profitability can that business how to OTREXUP. XYOSTED, that really all the we executing clear really Sumatriptan does start how products, do we're that

Matt Kaplan

a Thanks lot. Great.

Operator

at further this [Operator no questions are appears Instructions] time. there It

So, or the any I'd closing to like back Howarth, to turn remarks. you additional conference for

Jack Howarth

thanks joining conference us call. today's on And again Amy. for Thanks

If call. you you XXX-XXX-XXXX, that today's questions, me any can have at reach follow-up completes

Operator

This conference. concludes Thank today’s participation. your you for

may You disconnect. now

Antares Pharma (ATRS) 6 Aug 192019 Q2 Earnings call transcript