BDSI - Earnings call transcript Q3 2019 | Biodelivery Sciences International Inc

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Operator

Greetings and welcome to the BioDelivery Sciences Third Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Terry Coelho, Chief Financial Officer. ahead. go Please

Terry Coelho

good XXXX and is Welcome our to Cukier, Thank conference afternoon, call. quarter earnings Executive today Leading third Chief you, Officer. everyone. the Herm call

by Commercial joined We and Plesha, Chief are Officer. Scott President

Following our a will question-and-answer session. remarks, prepared we conduct

BioDelivery be press release Sciences the Investor page found for on financial announcing of copy Company’s a XXXX. of quarter the third A issued website. the today, its results Earlier the release can Relations

statements to are certain be like forward-looking there to current a that of risks, remind will are this in contemplated the of assurances other and be Before identified which made expectations, number which Actual some with the filed statements no we begin, call and press in that SEC. annual, during I would statements. everyone differ quarterly realized. Such our due release materially reports and based and may our may contain may factors results these statements results be from forward-looking can statements upon such

statements based assumes November Company available XXXX, information update XX, are on to the today, obligation as BDSI circumstances and to statements change. no forward-looking These

our to call can page there today’s the call webcast. the in Investor viewed and replay are prepared slides recording broadcast presentation can Investors at will accompanying Company’s for online website. of conference by on this the www.bdsi.com Section website available into logging remarks, be our also and addition viewed In of be the An be audio

to I’d like Herm call to Cukier. that, turn Herm? over With the

Herm Cukier

report again and and record quarter am numerous results highlighted third my organization. quarter much, another welcome very the to to across financial growth, very that XXXX strong by BDSI’s once very had call. you robust BDSI It successful earnings scripts is I at accomplishments we level brand pleasure Thank Terry. pleased to everyone

of for all hard exceeding them of the we day dedication their to of for building is which I would across record in to and patients expectations attributable products. the quarter the level value marks continued portfolio employees. growing and enterprise clinically every thank work to This like bring differentiated directly country performance for efforts with our straight of a sixth and rapidly the company, our our

third and fueled total by the metrics once numerous Our again important the of successful growth record volume in success BELBUCA, quarter other momentum during growth, brand strong was reached share, market continued of level scripts, launch. a which

is As we have our board. dashboard green stated the previously, across

prescribers a utilization broad see stream of to deep new expanded continue preferred access from placing position. with payers, steady very the and We unique product level of in continuously prescribers, and record BELBUCA

Very of level continue tightly which record importantly, also brands long-term been linked share, has the level category. total we to in historically new-to-brand peak the reach to share

X.X quarter, than times In the fact, total was promising, a for of share X.X and third more indicating share our very trajectory scripts sustained NBRx growth.

also ideal record full scripts that first BELBUCA. the Symproic, importantly, we very prescribers record Symproic. to during continuously with quarter similar steady growing for the achieved our The leverage very see quarter of a and Also, new third level quarter the are represented we of of on versus efforts compliment promoting XX% adding product stream to I’m number to year. prior achieved of prescribers our number pleased Company BELBUCA an

momentum During beyond. and to new we second and script upon growth quarter, total the of in XXXX half significant saw for also the build providing share

be success we near-term current in I expect payers. look enhanced greater access to two across the with forward, products As by these further

community. clinical BELBUCA increased of experience patients the appreciation the in and Symproic to the to We differentiation value they continue pain therapeutic and of bring chronic

provides adoption pharmacy agreement our exclusive both an plan million or insurance XXXX. by significantly BELBUCA and with additional previously to preferred coverage with announced, with covered either benefit This preferred a products. which national Symproic lives we for additional full commercial XX major manager, improved access approximately January As finalized Xst, we the

with very payers and have for positive and Symproic to access continue moving for We securing are BELBUCA patients forward. discussions additional optimistic expanded of

major the another agencies growth substantial management continued supporting is catalyst human receiving chronic for from BELBUCA buprenorphine is for recognition and services of pain. addition, within In the health

of optimal opioids. Pain Task initiatives there with Best chronic better the recent Beginning meaningful been on and Management report released May, primary pain, from for within inter-Agency coverage HHS which have usage Practices in Force of several called the for use divisions buprenorphine

and Medicare opioid requests include; pain Agency Healthcare for initiatives on Guideline services Quality on HHS utilization. draft Center for recent Research the for treatment an Medicaid opioid Opioid for information and the These Tapering, AHRQ report CMS the chronic & or or

efforts Together steady fully and helping and more buprenorphine the significant offers opportunity treating stream from these patients understand growing efforts medical chronic suffering community exemplify the in recommendations pain. of that a

II believe opioids to are and benefits profile and activity potential of this provide We encouraged clarification patients. by policy of these BELBUCA’s unique progressive level initiatives Schedule further versus will

was once marked very record performance the quarter third the again summarize, To by across organization. strong

this are Symproic well both in sustain continue Company and to We poised as market the and their value shareholder drive substantial BELBUCA momentum penetration.

of for the We company. major are turning on point the a cusp

brand fourth to We have and quarters positive two performance, of of in record expect be year. quarter operationally EBITDA flow the cash straight positive being this

million from net level $XXX of million raising momentum, of XXXX guidance to million. range $XXX strong new we previous this $XXX a the million to $XXX Given to sales are

In $XXX to and million XXXX million $XXX addition, full-year BELBUCA $XXX sales I per for for total to of provide million to pleased am company. $XXX million very expectations net

accomplished are for have to beyond. deal and year great We in and enthusiastic XXXX, poised are XXXX a finish the very strong

that, more during Scott success quarter. third provide details call the With to to Scott? operational the the over will of I turn

Scott Plesha

you, Herm. Got it. Thank

commercial of our quarter execution. of exceed to we’re tracking integrated continuing in indicator, prescriptions our team to to record meet past revenue the BELBUCA similar continues we’re successfully key highlighted, commercial or Herm deliver levels BELBUCA quarters, As has third a Symproic. And every and during for and terms metric

exceeding than TRxs we over of experienced. represents During to compared retail of quarter all-time-high quarterly when This for largest XX%. of volume ever had year-over-year our high the XXX% by BELBUCA establishing XX,XXX QX time all QX, growth BELBUCA XXXX, of increase third increase another an previous prescriptions the XX,XXX more

the product. XXXX our QX TRxs I’ll was BELBUCA for remain on in a and in drivers QX firmly supportive continued track growing which from indicating of market confident of We sustainability flagship QX dynamics, discuss. XX% growth acceleration now commercial than in QX that number to Additionally, key execution established increase to from of XXXX based a record strong and the

prescriber our base First, for continues to expand. BELBUCA

represents the X,XXX our a to the contribute to new increase During base, who the unique quarter. X,XXX XX% record. period versus an ago. of established prescriber With added This a see respect prescribers year total same quarter, continuing prescribers we for we’re per the product prescriptions deciles an indicator for all chronic value This a of prescriber our quarter-over-quarter recognized across their encouraging of more the momentum that patients. BELBUCA and increase physicians is as in prescribers. can gain more continued BELBUCA pain to provide to

Another new is for important time. indicator taking first growth patients our of the BELBUCA

third new of the market to quarter, our X.X% we year to high During brand increased share a ago. to X.X% a compared new

for X% more than market the our TRx share market our was share new-to-brand quarter. double Importantly,

growth TRx growth, time. we And starting its a shares acting doses BELBUCA been during grow compared convergence has all NBRx TRx NBRx saw addition share long-term as of a and far continue While the which in to historically market opioids, long over quarter. BELBUCAs also predictive share, is there exceeds and to both other share titration to of NBRx strengths

of the them dosage We BELBUCA to view efficacy. ranges as and the positive attain growth titrate level on both start patients providers then of a to dose healthcare lowest of as BELBUCA look appropriate to the possible

discussed, BELBUCA in CII benefiting primary recommendations aligns prior the from to failing and BELBUCA the opioids the task of with we've are As of the the use paradigm current chronic sales clearly treatment from HHS use pain force opioids. The report. of shift

also majority reasons this XX% is from regimens. more to our that in believe ER, are why seeing new share, transitioning account leaders, IR OxyContin. fentanyl volume. were we gaining It's overwhelming the long-acting BELBUCA declining hydrocodone as opioid morphine one are of opioid that to of for patients Oxycodone note important and current share We indirect IR short-acting XX% we're than a and this of the

coverage third million XX covered Pharmacy the Manager formulary BELBUCA both at Major improved Benefit BELBUCA by than commercial approximately more just million of a and we and we lives with Covering win PBM. the lives plans. for quarter, or announced close quarter, access Last Symproic within X improving and

and more BDSI within will major early allow a in launch additional Symproic its market PBM into and of us share gain to preferred currently the will we effect, of product the X, plan preferred become will by January While expect particularly Symproic the This class. BELBUCA, be full win and XXXX the buprenorphine this was exclusive class. preferred at product stage exclusive or adoption either for whereby for

lives So XX with Symproic, XXXX as a to believe with we're access support stand which strong now, for establishes an covered million new trajectory. improved into or BELBUCA foundation for additional we we growth heading our and XX million

providing can that success with we our updates. coverage and You we on to initiatives pleased today with further health those additional very federal described are engaging conversations. forward and facilitating continually those are the we the assured plans policy with be look We're horizon and

have in update we launch. can quarter the of Symproic, another Now with an provide experience that I

relationships us audience with complimentary As This allows performing you of to high BELBUCA differentiating our target sales product features. a force our know, prescribers in advantage leverage specialists. detailing is of and to take us of allows our that Symproic within Symproic pain

We're have future to solid very the and has pleased foundation believe gone built we growth. with a transition BDSI for how

a an the year-over-year over We compared for reached with X,XXX acceleration share. new first quarter For a QX to quarter during and also our prescriptions Symproic NRx X.X% was which of of an the QX increase representing NRx highs of to XX% TRx promotion, increase of high were XXXX reaching new in while quarter, both the encouraged third QX XX,XXX, full XXXX. of

successfully new Symproic. X,XXX In the unique prescribers of reached we quarter, quarterly for third high a

are the While making in there utilization we progress adding pleased were base. new still across prescribers, opportunities significant to prescriber expand our with

market in over access coverage of patients to differentiation. we focus will product’s exclusive utilize a PBM is for believe new Symproic a clear XX require lives. clinical the million OIC, Symproic major is resulted making the Our first improving This on reflection which preferred product in Symproic

X, this the lives update, in of made will already While the have formulary some PBM January majority plans be added XXXX. the

through pulling expanded proven this With market of approved an important record access the growth in track has believe be to Symproic and force we access catalyst coverage, will sales XXXX.

on our number differentiating intensely time building confidence expanding are focused further continuing we BELBUCA receiving features access in the to our Symproic. across market the of first summary, improve prescriber the and growing patients base, portfolio, In of

will expertise We drive continue updates. forward to look we our and to confident BDSI commercial are and for that future execution value

I'll cover the turn With in that, to the detail. to Terry more over call financials Terry?

Terry Coelho

last quarter, and in the Total increase results exceeded addition XXXX Symproic the accounted the to The quarter portfolio. XXXX $XX.X the for year second driven Similar of prior the our $XX.X third of is quarter Scott. our XXXX an compared revenue for September third quarter total XX% and XX, revenue of XXX% quarter the you, increase third by Thank million, financial both quarter. was ended of to in million BELBUCA which commercial growth, principally of to net XXXX.

were deductions of September Symproic the million of XXXX quarter our of the million, BELBUCA quarter line expectations. to Gross-to-net quarter XX.X% XXX% XXXX. net with was $XX.X XX, in compared $X.X third relatively net remained the third million. ended in flat in quarter-over-quarter in increase sales third an revenue $XX.X

Symproic, quarter full following reminder, in a first As the of the of acquisition product our April. of is commercialization the this

of the increased the distribution in mostly million July sales agreement which versus the terms $X June gross X. increase net driven was by second quarter the taken with which from the below XX. Shionogi, quarter price were XXXX, sales of had benefited second Symproic XX.X% effect Symproic

in quarter expectations revenue our net and deductions to the for third are at line XX.X% brand. the standard reflect While actual approach and sales with estimated

an products, our BUNAVAIL third XXXX, in of a that quarter strategic reduction of quarter third months ended BELBUCA product for ex-U.S. revenues totaled were quarter for to the XX, BREAKYL XXXX, net the reflecting $XXX,XXX increase our sales the of prioritization $XXX,XXX PAINKYL of and the to September third Symproic. of market three of $XXX,XXX compared compared and $XXX,XXX, sales and XXXX. for trends Royalty

BELBUCA as margin in and as Total XXXX. million sales compared teams, compared introduction the to as affairs in the ended force year-over-year line XXXX. gross Total to the were XXXX establishment margins unit improvements our quarter of third market and portfolio. and third in increase gross quarter year-over-year manufacturing in in expenses quarter reflects quarter the expanded gross the with million increase of September Symproic current $XX.X is the margin XX% $XX.X costs was primarily in is impact of of driven XX% expectations. MSL operating teams The with percent the well for access by together to The XX, the the of the medical

quarter net revenue income GAAP net growth the quarter net compared improved income improvement margins in higher loss for of $X.X to was million third GAAP The the a of reflects efficiencies. with in coupled $XXX,XXX, operational the gross overall XXXX. and

expense million costs the net prior are below and refinancing reduced warrant our debt. comparable expenses approximately interest to which quarterly $X.X addition to In ongoing the of amortization

a of reminder, net net included Non-GAAP debt the GAAP the quarter and the for our As of net million in $XX.X assets. income reflects loss amortization income XXXX of for and May the stock-based excluding non-cash of intangible this was quarter GAAP million compensation refinancing of second year. $X.X

$X.X compared XXXX. in third our of million negative quarter our efficiencies. second our XX.X% together is commercial of This EBITDA in being success was highlights the or EBITDA positive, of to $X.X of third million XXXX sales with consecutive quarter of EBITDA which net quarter the operational

At in XX, cash third $XX.X of Operating and XXXX, with million. cash flow BDSI quarter prior with cash quarter. million, September approximately in negative expectations equivalence line $X.X was and the had the

While Incorporated to subsequent $XX the to million the quarter. upfront end Shionogi, paid the third of installment of the Symproic of to acquisition the final payment was relating

We positive XXXX. flow continue being the to operating anticipate fourth during of quarter cash

prior increase to top to of to to XXXX an $XXX our line expectations million are $XXX Shifting total the for net million million. we our sales expectations to XXXX compared million, our updating expectations, $XXX company $XXX

six net the expectations the full our in now for growth addition, over provide given quarters we and portfolio, position consecutive momentum company's In last strong confidence XXXX. year the performance in sales to the of are a

in full for we million range of and For XXXX, range BELBUCA to million net $XXX net to million company year be of sales sales total our $XXX the $XXX expectations $XXX expect are to million.

growth the million. potential be $XXX continued strong to Looking momentum and and believe of forward, continue $XXX of to Symproic range to the we expect BELBUCA long-term combined in million

point, I'd turn to call open Herm? this before back Herm the we concluding to for At some remarks for like over Q&A. the call

Herm Cukier

Terry. you, Thank

quarter As a successful record and at quarter see, scripts third robust you by was highlighted and growth, the the level very can strong financial results, numerous BDSI, again brand organization. once across accomplishments

are plan a our in expectations finish to tailwinds in year growing enterprise. and the robust confident have for poised of well as continued strong, are place the growth We XXXX future and

We will questions. the to turn call over now your answer Operator?

Operator

question-and-answer this Livnat the Instructions] At question from you. [Operator Thank session. your time, we'll be Please conducting of Oren with Wainwright. a Your with question. line comes H.C. first proceed

Oren Livnat

have some quarter Hey On guys, that at above think it's guidance. Street. spectacular yet couple. the the on midpoint Congrats a great I and solid XXXX a point, a pretty I another XX% latter

already were we growth. obviously So expecting

not just You're per incremental volume preferred value new up lives talk or up, we go also which also patent, in But a expecting covered, of give to what get a to should the flat more, year. And a have next you includes just had should coming a on can you of terms QX lot jump expect presumably to in lot lives in down, or climb? I terms with big of growth steady price to year-over-year. slow script those a expect Thanks. and follow-up. of we more these And

Herm Cukier

you the appreciated. accolades, much on. trajectory entire so Thank greatly Herm. Hey we're it's the very that proud Obviously of Oren, for and the organization

comparable what volume to previously, expectations couple down last consistent that to forward. in think net be we So pricing to in regard over with XXXX, going expect for mid what the asked we've One you we're be to couple the we've of price fairly of shared break seen single-digits to a years the growth there. with points versus I moving

the only in thing price folks early year remind obviously, this anticipate I would in doing of is take that March The did and increase part the we QX.

to that is rebate from positive on very I to But will the in positive from which be with the volume. – rest think, been was that a change story I'll impact as well. and that of we'll a access question So little because significant how gross-to-nets, second impact of a over the QX does think the impact I the maybe bit we've think Scott, and you profile the turn really have And able secure, year-over-year. I

Scott Plesha

the Thanks Yes. for question, Oren.

about Our team job a We've on how that. access continues to do side. opened lives, a been very great do up our thoughtful obviously market of we've but lot we

be rebates. able this it. for will a very not are of as up And encouraged products. to the other both take structure for add plan actually really result current have our really we to It We that's gross-to-net within

really are recommendations actually our the them. PBM were think value obviously. that actually one able do are task guidelines HHS an in force their and to And increase important interest we I well, We reasons the encouraged. of in with actually the actually then as the was secure clinical catalyst discussion

So this we're by the win. we're to paying get encouraged rates

on you far coming an As so give idea. as just board,

a million hockey or the to went majority So into October. go it effect quarter ramping will what lives really remainder, the so actually good another don't – does in take with BELBUCA, over little effect in a early seen X start past million bit stick. We in wins, up. or And we've then a so X expect to January, so

very our they what's think how I look you perform. at in market important, access if really any they're wins, consistent of

and the and basically the we're access, a edits product. then going of We're not removing up patients. forcing We're in in selling opening benefits switch to step our clinically

forced over will there exclusive million more XX we a will have because and – to in first. more across we're front, then But will be that on the Symproic a able very well moved And to sustained too. a is really have these a this point. on a So lives same bit January wins. have growth about be patients predictable at of remainder very Symproic little rebate been only switch Again, there where bit little of as favorable preferred utilize that

Herm Cukier

transitioning. tremendous add expect comparable your I to and team's think question Scott be we the example only bit this would a as the sales effect a done the what to for we've plans year. But to for that system and folks U.S. job in entire little creates seen Yes. should thing I trajectory QX the agree, is of dampening I we a are kick deductible healthcare high know

that we move similar you anticipate we'll forward a And had patent would XXXX. question. another follow-up into you see as I Oren, said So

Oren Livnat

Yes.

Sorry to be a hog.

Just are to you little elsewhere? be look of switch a And able advantage maybe it associated how like be you compelling, to downside or you of a to upside business? if of looks existing good even expecting up it that next is just you would there hoped, future even it conversely, take in gears end still growth bit, or that, Thanks. half results can depression year? a study And potential at with talk as about really respiratory mind if used risks or your could risk any in data, eventually label doesn't as to first

Herm Cukier

Yes, study earlier to really of half to anticipate in the has or we part your the that track. report final study available be on Absolutely. And probably during is well QX. very progressed point, first

great have We of a deal confidence.

doing additional the by information the thought within ER forward it it is think BELBUCA well and respiratory oxycodone we're ceiling provide the well head-to-head a versus to We guidance effect seeing appreciated, important studying I was and understood. and results. to looking of molecule specifically

I've example, at at is federal think highlighted will II today your differentiation impact, I to with groundswell only consistent and level. versus of I the in this the specifically to kind I buprenorphine we're if that that for potential they opioids. of task report, the Schedule think activity And and further there a significant you add force for point appreciation of opioids attribute about environment with dealing the of utilization. understanding safety growing And appreciation the think look the policy what shared, And

Oren Livnat

Thanks right. the again. appreciate all All it. Congrats I for time.

Herm Cukier

Thank you, Oren.

Scott Plesha

Thanks, Oren.

Operator

SunTrust. with comes Your of with your next proceed Fraser question. the line Greg Please question from

Greg Fraser

Gregg HHS to And you. lives XX% On Gilbert. you access? Thank do at and what coverage, You're like the think mentioned we had wins a that of now. your are recent report. trend for can of ideally there? about goals that lives Fraser You be? costs It's you continue? Is you without how lot of with for access a that Greg the on covered Where preferred the of gross-to-nets, about impacting think getting benefit would the

Herm Cukier

much start so to going Hey, question. it Scott. turn Greg, and you to for over I'm thank your just

is the open that we pain, United are have goal Patients BELBUCA. and clinical access physicians an in management disease. implicitly appropriate XXX% choice should an the field make suffering an And Our we BELBUCA physicians appropriate States believe believe their of for best the of patients important in playing patients. to from providing to with the chronic is of interim this element on

payers exactly in the question, a good And to part preferred be your the access. conversations I Medicare a advocate for about that we But belief bit Scott, to for understand maybe our continue you we're steward little product with wasn't essence we us. of be to but a stickier know and little continues that for want folks our to intensely of strong have that the as do that important it's having ensure of fair recognize the to side. talk a product. on some I think to to And But bit patients

Scott Plesha

that's great question. Yes, a

just secured And change have had obviously important the we this the previously. PBM still we last opportunity. that on so an commercial We really side, large not we with feel formulary had

done that. we've So

that. It that underneath we're sure plans have continue regional period to we regards there, to longer takes we're commercial be having really to is active to trying these it And had what just stickier. improve Medicare, we a plans we mentioned doing In Herm of improve so. could also we're sometimes Now making being is can trying also. conversations do always it thoughtful access. do to believe but time we It

but sense, access, doesn't you not access, sense. a it your destroys doesn't get it make can it's if completely The it's if make gross-to-net, truth is if profitable

believe firmly Medicare get morphine we However, to through to and should oxycodone, fentanyl, to patients not that have step BELBUCA.

continue committed do so to And hard So we'll to we're and work then doing to Herm? that.

Herm Cukier

Yes, I really you're I right. say, Scott, absolutely as that appreciate

active with that entities coverage continue very discussions providing We engaging the to Medicare for have patients. are

We lot and clinical continue of that the clinical And a of value if occasions important multiple to mentioned proposition product believe, there's is on expressed that are earlier, discussion. to we really they that their Washington, in the as most the a suffering of from again, I as element that with really provided to contract activity particular organizations chronic guidance CMS, re-evaluating that including coverage on the is pain. opioid patients

look opening process come. drive time access to to of And we're moving be that of be and to can the have in hopeful forward optimistic in pathway to to And moving forward. an to happen our of that partners that that the focus the And value going to Medicare continuing do good be again, will patients we very conversation, a we're forward. part there's on clinical opportunity a BELBUCA that

Greg Fraser

color. That's Great. types of priorities can that helpful and business development, very latest you're the in? how of to you the would interested assets your On availability characterize you speak

Herm Cukier

growth the market that demonstrated the keep proud that BELBUCA, And have Yes, have. And priority say we've we're have we with number X% anything, task an we Greg, achieved share. with while is of tremendous at first of having success, execution we I question. success. that of of eye Think continued the we're of hand. and a we amount certainly foremost on a products we one flawless portfolio the very appreciate Obviously,

growth we the pointed us quarter a into defending and is to dramatic guess have, wonderful and less than with plug well we've out dramatic very it. been, opportunity to but again as share, significant X% highlights doing And we're complementary continue third that portfolio with which of increase is also asset, perfect And I Scott play Symproic that's BELBUCA. drive new-to-brand our to we're from a where

see we opportunity a of forward also lot moving And with growth Symproic. significant for

that with your we dramatic we've execution the priority is and continue to is have one the So this number to been portfolio flawless question experiencing. growth to drive that

to organization with really destiny. that Now create does opportunity its an an control

the as we we the continue And for be the to a opportunities But to are of to we're a we we forward. additive significant thoughtful, – take our to company really are of focus feel look is opportunities about we growth-oriented very how going keep open again, an moving that have. growth be kind driving be really at. scale now, the we to will and forward. on of And that focused opportunity we judicious moving thoughtful and just products that be right what eye accretive But company execution

Greg Fraser

you. Thank it. Got

Operator

line Your Henry Capital. question. next question the Scott comes from of Roth proceed with Please with your

Scott Henry

you. afternoon the on Good strong BELBUCA execution and Herm, really Thank congratulations, launch.

estimate. first Just heard Terry sales of a couple give peak questions, I a all,

I just think of was that. $XXX quite catch I heard million back the it. Could you remind, I didn't

what what was to? that know and pertaining exactly me was let Just that

Herm Cukier

moving kind transfer so you greatly tremendous a a opportunity really team go as have and forward expressed like job accolades we've way here. thank both words, a ones great entire Scott, other much – and consistent Scott, to It's to tremendous it's that your I'd the to think long I organization. your a really done No, and appreciate

I with that products BELBUCA reiterated these what the Symproic, just and is long-term growth we products. when we've think really portfolio the opportunity great look we of again confidence at deal in have of looking for a

could million moving always every to said, data to as we our level that And opportunity we've be than continue forward, reach have, continues that quarter portfolio $XXX moving see proves that bigger may we the confidence every we as that well month, day, in in We can rise. if continue the execute increase to that as us every a to forward.

confidence in front expectations right confidence the significant growth now we of the us in more strong, in think the I XXXX. importantly, XXXX for finishing have that very

collapse, to think is XXXX that's we very continue right. all we've in of XXX% this said year you what's that important, BELBUCA, to with we that growing And growth. a year well And We're don't also over BELBUCA I see sudden obviously, beyond see anticipate all what XXXX, XX%. growing going along next strong again

to corporation. to we opportunity this do value therefore significant So growth brand continue moving significant see to shareholder and for the an forward drive

Scott Henry

a Thank looks Symproic, range. that revenue first couple guess, I question that question, quarter. forward? should Symproic? about bit assumptions range? Herm. going as we Should representative full And you $XXX like questions, A $XXX first gross Great. is, little The that we for then margin It talk to that per we've you clarity, got kind of think the in is could second is a have of our modeling about script a on good

Terry Coelho

is This Scott. Terry. Sure,

right. estimate estimate your $XXX per script. So about I is yes, about

to And a I this point future is just gross-to-net, estimating early And we're good the based shared at it and on place so over we're in time earlier. XX% be. the days foreseeable as that's probably and for

for to the a it's where really reflect be get safe we few the belt, under payers a you So I we'll think what's quarters different once so be our patients fine that to across able are estimating. coming probably really do place from tune and and on.

In question. the margins terms was of gross your

BELBUCA, low to even are in are margins actually to royalty the gross very to after Symproic paying Shionogi. So they our mid-XXs, comparable on the

what L liked our with actually, and we that, So with play as line P& it would expect is well. we actually in doesn't

Scott Henry

to going Is here? was QX. SG&A from think expect higher that or model, the new up I around for lower about from we rate SG&A should would should about Okay, line Staying great. was of you million which Thank kind or forward? think it that this we quarter, $XX in color. the think we a as expect on How

Terry Coelho

Yes.

thinking into up the fourth up, third is throughout think being mid-XXs I year in averaging been XXXX, the and that's the we the will as quarter, probably amortization. line quarter excluding would where So we with look we end end somewhere forward in we've

Scott Henry

Great Okay.

Terry Coelho

$X.X Amortization a pure about so runs million SG&A. quarter,

Scott Henry

question, still $X.X A it’s is the was that model forward a of expense, quarter, interest I final representative go number. on think that a good in Okay. kind it the that million

Terry Coelho

Yes.

improvement earlier I our significant improvement – the and on reflects significant refinancing think the it expense made net it interest following yes this year. reflects that’s the a we’ve debt

So, we amortization warrants no longer have either. any

in. up the were year we number at had like ago the X.X X.X, net you So is when everything a

Scott Henry

again. Congratulations questions. you for Well, looks the thank that Yes, great. taking

Herm Cukier

so Thank much, Scott. you

Scott Plesha

Thanks Scott.

Operator

comes your Your Matt question of question. Thalmann. with line proceed the next Ladendburg Please with from Kaplan

Matt Kaplan

a on guys, good congrats and Hey nice quarter. afternoon

of a and Just it a Are color you the they I what’s drug? currently it pain it is from transitioning give something bit traction? is prescribing little transitioning And and specialist to couple Where are or stronger? really opioids can NSAIDs then, to or wanted of with things GPs Is mixture? to? prescribing terms BELBUCA, patients into more dig who really in who guess the you us from getting are patients they other

Scott Plesha

you. is Appreciate Hey Scott, Matt, answer question. for the the question this I’ll,

we our So it’s to tell sometimes base, at exactly as their difficult specialties. look prescriber

Nurse XX% them. XX%, actually and specialty and probably them pain-related. mid-levels Their call a is associated with we of pain example, our prescribers as PAs are for of there are They’re bucket many So, designation Practitioner our kind have a go really And and really have forward. then designation. AMA targets don’t next that those

about on they our the that and over kind for And part so opiates. acting the And then was that are of short long-acting, going but XX% see transwitch. from of number being coming there BU we of patients pain rheumatologists, specialties XX% short-acting XX% this a transitioned specialty. shared We patients from small during about edge of from obviously to is of BELBUCA are the most neurologists XX% a recently, is script, opiates. there are

long acting common actually and little this movement So, acting very – pretty that’s long space. in

coming not it’s So, if happening to that helpful. NSAID is to because moving that’s acting within are will is I hope know BELBUCA. from our be We where unable is really majority patients don’t data. the short from. captured there BELBUCA – that’s somewhat, somebody to but understand and I

Matt Kaplan

forward kind here. the that, you you. Symproic, and about us you are think understand go just in general, help familiar going think some help us us on into as Thank terms And helpful. for and, Symproic very opportunity can more but digging then that BELBUCA opportunity that’s of detail of people in Yes, good gave I with forward you the

Scott Plesha

XX% look basically the PAMORA and at owning of it, that Symproic the market market. when So with not Relistor complex. Movantik Movantik, It’s about we

acting primary much the have. good. is been PAMORAs that compare the actually which has long declining to When our more the the only, goal than it market is opiate So, you market stable, is

scripts month. that’s think So if per about Movantik, but it’s you look at encouraging, XX,XXX we just

adding So, to We that access that market additional definitely wins room there. the specifically clinically grow differentiated. we have we’re some believe We commercial in believe space.

more We add preferred to opportunity an have lives.

that We covered also still. not are number good a have

not year opportunity an have change we we through having work months have next we’ll to we’re to So, but to, very the them. over that six I’m a Movantik step sorry that so to cover to step through hard a and

Matt Kaplan

there? And what’s point Symproic, differential Movantik and price is the between

Scott Plesha

It’s negligible.

of We’re I’m all nine or and fold other being with higher. within eight X% four us like about Relistor sorry. Movantik, each

Matt Kaplan

thanks detail. great. Okay, for Well, that

Scott Plesha

you. Well, thank

Operator

your question line Lugo question. with next of Blair. William Your comes with Please Tim proceed from

Unidentified Analyst

question. covered much for see expectations? peak wondering, this BELBUCA for XX% next in about John I growth where on do and you have commercial major that just guys, lives Tim was the product the the Hey route so access, you to sales given opportunities thanks for already of is with

Scott Plesha

wins. it John, Hey need of look there’s XX we within just number is really our improve I growth to we’ve the look just going executing then current million our foremost and and plan here side. been a XXXX Scott? a commercial really there. adding keep When at into lives good first you it at to that’s that in nice And if access again, trend able lives place in every So

some growth forward. Herm going to So to nice to steady place. look to And have it Medicare We but levels. that need we do keep going do really we plans, we’re the then need at right then pick-off in will we And rebate that,

Herm Cukier

add a you’re I to look just is when – it I great Yes, John think was going question.

I a important if actually flipping product. have it launch physicians availability growth that a is product write access greatest barriers because it’s cannot the think of to out you don’t the very we with open, once asked lot. around and I line this the guess patients of get [indiscernible] to you the in therefore – a of plans run of question It’s ease to one grow. to

in short removed of for relatively What a we’ve patients. prescription done their that we time, period barrier of have is physician

choices. an important from optimal So, think the given really a with And consideration really as now particularly efficacy. describing their how, significant and about they been of we’ve can differentiation, physicians high opioid safety degree be the clinically it’s of perspective utilization as partnering BELBUCA about

rather is those a team the actually playing to of element around. with way It the a or now the covered whether and open covered from removed So on field our is doctors of now really access. it’s capitalize other that to it’s pathway not physician’s up in than consideration. growth And partner

Scott Plesha

a products It’s treatment really and in and fortunate the have CIII changing a chronic in BELBUCA. the And and about way clinically pain practice providing really they product to benefits. clearly different of the selling we’re,

patient really as at before is appropriate. equal like don’t and really to fortunate used needs as be should product has long long the very long really we use clinically the been should insert switches. it but be believe, you to appropriate, we the clinically never need things to our be CIII that, BELBUCA, other goal It’s CIII have, We when We’re CII. step a a Always being to force it’s thing has believe a acting, have firmly other just all we always add been where I’ll to want first through thing remove actings. step ourselves

Unidentified Analyst

congrats right. and quarter. All on so Thanks the much,

Herm Cukier

John. you, Thank

Terry Coelho

John. Thanks,

Operator

of Your question. Cantor the Brandon next question comes from with Fitzgerald. Please Folkes your line proceed with

Brandon Folkes

guidance. you quarter questions from is BELBUCA IR are congratulations that of Scott, nicely XX% and Seriously I on Hi. and Thanks my believe XXXX mentioned switches. this XQ in coming the taking from of patients up about I for XX%. think each the

to force answer an long-acting you you you color and definitely see any let report you of have a from in of the question any have then market follow have to I’ll that IR? you. do capture terms Thank we what task do working. is, So My percentage up? share switching patients

Scott Plesha

Brandon, Hey trying question? can I’m I’m to that sorry. data from clarify switching you

Brandon Folkes

switches From, switching do market sense so you to you have percentage to of across IR long any a acting IR of have all currently opioid? long capture acting share any opioids, all patient what

Scott Plesha

Yes.

our been that’s we’ve share new-to-brand sharing. that So

that actually incorporates and So switches though. adds

refer as Brandon. them to transitions it’s, we’d So like to

acting, the put, short especially a a cold so really, and they’re adding is down acting. are, a the So And doctors over then short add a an very off eventually their taper seldom getting switch acting. with a good BELBUCA, of to it’s to another what’s long-acting they’ll patients goal then of add adding BELBUCA, a on and times But they short of are number lot what product. what then, is just long-acting, do they’ll

They we’ve then kind lower where for over really down share. had is of kind opposite we we’re and X.X% referred to what compared fact the They significantly script NBRx NBRx tapering a acting. NBRx which transitioning X% short the of all is that during Up of TRx have by that’s an But our usually, long-acting yes, the that’s share, with encouraged TRx exactly much other the than X.X% QX. to the and our traditional opiates.

Brandon Folkes

sized, Thank And great. footprint is in commercial your historically you. that right I right. talked know secondly, you’ve, then the Okay, Scott, past,

provide With the you. around growth updated thinking Thank color that we’ve and just some seen you in can your XXXX there? XXXX,

Scott Plesha

the appreciate question. I No,

this looking in review where for right space. recent a feel and our the we when part where this, of not do that look in sized. parts our the We with be always are to had we and win certain we’re feel example, at few opportunities. means we’re make our access appropriate to footprint us, going maximize we’re wins of we areas optimize But we’ve our recent So to what, as sure coupling in to the like country, are is we going also of heavy

going probably is think forward another maybe eight could about reps. seven you or what So,

want make to managers, incremental larger We need than minimal no total, spend. so a XXX to. sure growing be and about not that, we’re thoughtful So we

Herm Cukier

Yes. I to add would Scott the question.

think that I very said. that’s well

the to specialists. approach on our model pain call go-to-market is with Our

propensity and described the a reevaluate little and opioids that long you are moves As we every year earlier pointed market of vast he really the writing acting as that bit. out,

are showing as periphery they a And to little pointed correctly for making opportunity tweaks and appropriately best need your to no the the point, any on the our that’s just out so put that, to position wholesale with are changes. he tweaking, we team capitalize in BELBUCA. in But

right capitalize have to opportunity. the We model the on

the strong have we have XXXX team why in that for place, which growth We is and experiencing beyond. the the expectations and right we’re

Operator

Montgomery line Please with with comes Scott. the Your next from Esther question proceed Janney question. your Hong of

Esther Hong

Hi.

been guidance has growth, factors just to of surprising or the all wondering BELBUCA this So year. raised so I’m I’m most contributing appreciated? Thanks. was the three times under mean, what sales perhaps

Herm Cukier

more launch terms tremendous And, that’s And, have it’s are point have of wonderful support in from and and for a as It to your we a – of question robustness providing very your who so environmental the question. and tremendous these of on is a specificity gives right. part been Hi, it a job of view much where thank we to team brand services have forward-looking to access just needs human that year. an evidence been in the in the and side health given us more lot mode, it it’s of unfolded, events of the provide out growth, the opportunity. as now the we’ve coming clarity Herm, payers commercial position done confidence patient’s as is described. the amounts And elevated and you us has from initiatives And of view. of policy has a a more kind the and developed federal the enabled us and more again, so to product

event more necessarily there’s of partner a strategic a go, access, XX last certainly, last really really size plan described the into think So, was convergence a which to It’s has put job physicians I’m the year, really really been tremendous really months. at we that surprise. Scott with architecture the been a we’ve that done point been that but to room I the up which team think incredible I and right over the more, right the opening advancement sure collective just not that one getting four a

lot at fruits certainly we’re over done medical team, for out had presence largest work team and me that attended healthcare with States We September last labor. moving a other appreciated was and United endeavors think tremendous the and will year. as which that has and for and has the time a and very forward. I well other PAINWeek done a Building early the in that doing, a takes team coming medical be seeing five robustly out really the multitude the as the such activities presentations study of the professionals the all were the medical And of of abstracts in highly as activity conference accepted that respiratory was party by pain

consumers. And beginning rosier our this to root provide throughout continuously to have us in very investment give the and taking And, XXXX. hold the all and of and now to rosy really was element and strategy confidence give a year outlook we’re to then fourth also appropriately finally, us all the so confidence for with a robust a look engage effort, the really taking of is really what fruits seeing

Esther Hong

thanks. Great,

Herm Cukier

see I on Hector, Thank I’m you and very actually if, clarification data provide wanting to point, Terry we is Terry. conclude, think a going before a much just to Esther

Terry Coelho

Yes, thanks Herm.

XXXX wanted presentation, clarify that regarding is Slide for typo expectations earnings just net yes, revenue to upper-end X So of the and minor in XX. a our there on the total

will the As prepared release shared press million. $XXX million range be repost for follow-up. in is your remarks, I and and is the that Herm our $XXX deck to The our expectation and correct we information will

Herm Cukier

Great.

Operator

concludes this gentlemen, and Any last ladies conference. today’s And minute remarks?

Herm Cukier

prepared meeting this are thank to very Yes, we say, point. at I the was to you and going much close

Operator

right, concludes gentlemen, All ladies, conference. today’s this

lines Thank at for your disconnect this participation. may time. you your You

Biodelivery Sciences International (BDSI) 12 Nov 192019 Q3 Earnings call transcript