PRTK - Earnings call transcript Q3 2021 | Paratek Pharmaceuticals, Inc.

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Operator

Thank you for standing by. This is the conference operator. Welcome to the Paratek Pharmaceuticals, Third Quarter 2021 earnings call.

As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there'll be an opportunity to ask questions. need operator the by you may call, Should an signal [Operator Instructions] assistance conference during you [Operator instruction]. Accounting Finance I the would and President conference turn go Principal Controller, over to now Sarah Higgins, like Officer, please to ahead. Vice

Sarah Higgins

referred Both third found be are issued to Michael Commercial Officer. update The Chief we on be for available President slides Officer, also at earlier can to our on with today, Good www. release earnings third Regulatory also Chief company's on today's call. Evan XXXX that Adam posted Paratek's Begum, and questions. paratekpharma.com. and and quarter Executive call Officer, and our Executive Bryan, and will Participants call. afternoon quarter and Chairman, Randy press the welcome corporate Loh, conference results be and website this Chief was Development will Woodrow, I have

Evan, for out forward-looking also are beliefs. the I would current expectations results like over These detail. to discussed statements actual and in making be our risk I will and encourage differ SEC consult materially. point and to to statements on I our filings we uncertainties subject our certain you factors Before call risks Evan? to based turn which that are may the additional

Evan Loh

potential priorities patients has deliverables in validate XXXX commercial you the corporate stated Sarah. on NUZYRA. our to we excellent focused remains for you, execution in our and earnings of order and performance generate joining delivery update thank against Good our Paratek believe to value call. for growth that and Accordingly, and all continued and Thank afternoon our corporate third quarter shareholders. long-term and operational

core XX% the through quarter and commercial over next us a increase business History the be quarter challenges can launch. which the the growth NUZYRA quarter-over-quarter XX% proud quarter in a pandemic. this generating in We're is second to third alone, from core of net despite period the see XXXX, quarter the from XXXX. year, slide, same quarter-over-quarter increase the NUZYRA's As million $XX.X or XX% each you NUZYRA tells third growth sales commercial that of extremely strongest this continued of of growth COVID-XX year since over ongoing the our tends business, in from

Going of forward, the upon launch we strength continued generated to based quarter-over-quarter dynamics see to-date, the expect growth.

recent the one dynamics seen in here, last curve commercial antibiotics continues the monthly continues operational the differentiate other commercial believe slide, combined launch validate efficacy, most in resistant from Also, successful product NUZYRA's next oral comparative materially driven attributes that represents commercial any IV that the execution antibiotic by common across the to summarized is pathogens business to first, indications. 's As of many disciplined this clinically launched of including to important NUZYRA NUZYRA performance to revenue launches. that the years. five date include, with We broad-spectrum commercial strength

the ongoing NUZYRA settings Second, utility NUZYRA by tetra oral more to remarks. Adam driven the paths We details on formulations of prepared remain launch a once-daily consistent foundational his convenient NUZYRA's of opportunities of heritage. unique care. attributes will third, on And safety enable that profile favorable IV NUZYRA. in cycling with X and revenue provide multiple in focused 's

we an settings. commercial opportunity anticipation launch pneumonia expand of and both the dosing end for the the catalyst NUZYRA This season. growth community revenue the care performance. hospital regimen quarter, with the commercial that will at winter believe outpatient in of and the our driver core our main both important oral current community is of in fall, we year's First, third expanded business hospital Armed and in pneumonia this the is primary settings the

potential there government. across the broad believe U.S. for to is use we NUZYRA Second,

under broader this cornerstone to expand the represents to funding awarded partnership address partnership commitment additional original value to this was providing private development the development incremental bringing further Anthrax. rule to public of BioShield NUZYRA newly approximately by BARDA's program, the FDA BARDA $XX the option, the validated our up development of program efforts the an government animal $XXX contract for This total Our to opportunity. of provides million. funding unique option million initial

Third, prepared long-term market NTM announced the October, disease in internal by FDA excited our Non-Tuberculous the of will treatment pulmonary for in the Phase of of U.S. promising the the with in orphan remarks. in enrollment for NTM NUZYRA We're obsesses NTM newly or alone drug are which later his Randy first about with Mycobacteria therapies. patients provide NTM represents $X patients more that potential obsesses, of focused in orphan of subset our granted there no role disease August, diagnosed for which addressable program which on the estimates, In approximately NTM a NUZYRA designation opportunity is on broadly. we In the FDA represents announced NTM, of the our future growth treatment billion. Xb approved study, patient an space. we details

potential pandemic is Americans resistance Our pathogens infectious to well as the speaks rare therapeutic opportunities infections NUZYRA exploring save NUZYRA types to of preparedness concern, for plethora the a and protect national of from other a lifecycle of as perspective. and where as expansion into life-threatening lives clinical all from bio-terrorism agent bacterial against

to Adam, quarter the third over hand financial I XXXX I would Before to now like Paratek's highlights. call provide

following. costs XX% of the generated from quarter $XX.X total under million comprised of NUZYRA representing was million of for from service million which quarter the and core $X.X Third earned sales contract XXXX. U.S. third quarter of the XXXX. XXXX, compared net our the the commercial Government reimbursement to was revenue compared a of third revenue business growth contract $XX.X third alone during million is million, $X.X BARDA grant to quarter in third XXXX, in $XX.X quarter XXXX in the

study. the in quarter the post-marketing of costs this vitro move administrative Phase to the incurred XXXX, was costs of expenses for $XXX earned in of of the revenue revenue of service to grant year, U.S. of BARDA revenue $XX.X on-shoring quarter related XXXX we period the expenses June prior higher costs $XX Selling million by fully which under to continued to for primarily BARDA was by the general NUZYRA We projected of the R&D and incurred same $XXX $X.X Total pre third expected also Xb SG&A the procurement -clinical reimbursed step-up of year. were and year. of which of the the the NUZYRA expenses previously of driven million. million primarily with program. and in and SG&A in million. of $X.X $XXX the BARDA the activities continue the The associated to in study within compared compared for animal the $XX XXXX. of million enrollment and expenses contract for at million result anticipate in million FDA of the Total of indicated modest third which million same will in and BARDA third quarter of The for R&D expenses the in XXXX as under We the range $X.XX a compared manufacturing, are be progress the $X.X reported for reimbursed share requirements NUZYRA post-marketing for net contract. the studies balance expansion. original the to to for $XX.X was period the or is the the million period for of the of We previously result in - to $X.XX per contract increase of range R&D be loss prior NTM or XXXX, anticipate of to were indicated $XXX are contract per or through NUZYRA a quarter startup $XX.X guidance and range FDA pharmacokinetic $XXX Anthrax net NUZYRA associated the share required prior to end the the under expenses in loss includes development million, remaining within $XXX due million same increase NUZYRA Research net third large year. mainly further of to approval with The a community is be increase of ammonia,

had our our Adam. with XXXX existing September current a and plan, I anticipate to cash for a XXth, cash of $XXX Paratek over upon like the now to the and to we in pathway cash Adam? break-even. cash As operating equivalents. flow turn cash provide equivalents cash end million through call Based XXXX, to of runway would

Adam Woodrow

color community $XX.X million with continues setting in both resulting quarter, Commercialization well continues as growth increased in month-over-month also over the on like quarter. demand. a in And to important, impressive slide progress million of this XX% increase to to by XX, NUZYRA Evan. thus, seen can be an quarter. demand hospital net the Thanks, third over prior sales the progress. on Equally and be provide the little by in I'd growth prior X.X driven gross

As antibiotic in effective the also market to initial of setting prescriptions priors first the sector, in was a establish for access endorsement on in years. the in solely reminder, the while to would working hospital influences outpatient two our business the the parallel, focus fulfillment with with that enable key strategy community Building profitable setting.

two expanded told we needed to the factors experience these community. be us before Our that into achieved

antibiotic doctors, As generated over prescriptions our disease infectious two-thirds we influences of clinical XXXX, selection. being in had we the entered by key the

being were hand, With of primary the In these setting, prescriptions a in filled. to factors specifically expanded key by physicians, dermatologists. NUZYRA community both promotional group pediatrists, foreigners and we select addition, all of our success effort into XX% written care

to part adjacent I to core promotion. expansion, Hospitals of on sales as and important net related the Before hospitals. with of to business, of hospital remain care sides our care primary I provide on wanted it progress the update our you an the commercial more our relates our XX% business with detail

in antibiotic or form dysfunction, physicians pathogens generic not current critical complicated bacterial frankly suspected Our through factors physicians, IV early as those discharge to with on of resistance, only of regimens our dosing other More and continues levels approach and or due - are types. avoidance diabetes, the organ challenging due patient care co including hospital dysfunction, enabling disease to have doctors or allergies. to or patient specifically, options promotional efficacy These morbidities, pulmonologist, with make organ to gaps challenges selection dosing more predominantly might necessary. hospital starts to in effective hospital-based and benefit utilization select operate pandemic resistant those oral effects The with rather focus infectious stay an environment We as and the anticipated to is an complications physicians where subside to especially anticipate hospital and or day expand a access the setting patient the XX:XX:XX] will that than as hospital endemic a patient one in on due one. NUZYRA side the business more for well-tolerated and than ability environments, COVID-related in to wish from risks discharge patient such nor attractive allergies option, COVID other appropriate [inaudible today's oral neither is

community Now, turning the expansion. to

Our and concerns. level community with nicely XX estimates commonly challenged used illustrates Current markets the oral the suggest market addressable with generic care is of resistance for have Slide infections total and these billion. pneumonia prescribed in of the more States for in primary resistance, in some $X.X by skin an United bacterial saying options excess X antibiotics oral safety of physicians pneumonia. generic the

of had option. oral-only pneumonia a both fully these September, care pneumonia NUZYRA believe well-tolerated detailing primary by our trained more audience treatment we of to XX increasing, strep skin the indications resistance we end target By and effective its offers rates physicians. With ever specialists and community a over

to COVID-XX treatment is hospitalization. for Starts at community-acquired needed that which message where antibiotics, resonates provide promotional pneumonia skin commercial together. broad-spectrum well-tolerated to hospitals positioned avoidance oral community IV patients. NUZYRA not efficacy the in hospital potentially from recent priority procurements. a and in an These business especially is home, avoid should any United these does with oral-only in minimize much potential is avoid States. once-daily, hospitalizations strong borrowed NUZYRA's of has to have with care, enabled remind the launched be offer oral care environment today's and formulations option physicians, applicable in primary size. costs everyone, setting core differentiate any stay Our profile including physicians NUZYRA or potential combined uniquely the all the I need And materially with to when with NUZYRA's update intravenous include infections a in serious to our at this performance every home attributes antibiotics of hospital for for at NUZYRA'S the can life-saving

Our in community XXXX. NUZYRA promotion the and remains small we conducted mirroring pilot track of is in on closely the

the new, and after is physicians We committees in and in our expansion, our in the X foster to sales. oral that to tremendous a earlier combined of meaningful of promotion care the stewardship the care start the starting with more try care base, result of impacts primary XX% now for to formerly sales setting well-tolerated community calls see absence found frequently primary beginning make likely and the contribution positions. doctors hospital. see of the an months our fewer the effective for increasing restrictions we from compared uptight and to hospital-based in podiatrists both the continue NUZYRA We primary to antibiotic, need accounting podiatrists maintain from with the belief once-daily and prescriber net are unmet when overall community remaining

has to continued prioritize continue be we to steady fulfillment, XX%. addition, access over of treatment, rate a to which maintaining In prescription

from the networks. to community the force with their their the with anticipate we sales continue community summary, acquired settings In the setting pneumonia care this will in deepen influenza and We season. both momentum the community during increase expect prescriptions fall-winter pneumonia oral-only for primary to and with that the dosing prescriber as hospital continue relationships skin promotion

saving focus over and every establishing maintain to I'd building community-acquired to infections usage are and and trust credibility that, And list lives serious on gaining Randy. with and each our physicians, will trial repeat like new call with treating awareness and We now turn the day. by who

Randy Brenner

Thank you, Adam.

overall contract. of on development an program the addition update focused noted full now to $XX.X As of the or referred million. option million we Project Anthrax option the BioShield to for contract excited program recently expansion to call, the this announced by additional earlier have also PEP but an post-exposure continue against sNDA contract the the the additional as Anthrax to treatment exercised The indication, our the of PEP. prophylaxis prophylaxis increased includes an activation Evan and in only not indication to value of the program for value $XX The were

to continue FDA advance also to partner our with commitments. BARDA We post-marketing

year at States. manufacture knowledge transfer progress begun planned product report equipment, process will inhalation of enable onshoring our evaluation primate reimbursement Surveillance United the As rule the ongoing approximately adult to in been enrolling its multi-drug focused API partners remained upcoming is includes of the Work first completed also produced commitment, our the development anthrax. to The and valued as startup cap phase for in at NUZYRA in the United facilities. entirety, make necessary progress having ongoing initial and at right a both Bacillus the has resistant continued drug year. study studies. the our tablets strains, initiation now. of early this we for ordered the commercially this also reminder, rabbit models the BARDA, Program. Paratek is and and pediatric well. next construction data API. PMR U.S. as of the of the for pediatric available million have on commercial our have The against vitro end support facilities as program States in ongoing pilot from have anthracis post-marketing Together study to pleased studies efficacy Efforts continue production the and We with $XX onshoring by analytical pK program our We're year for partners is animal and on the activity since the the this development of these anticipate our U.S. on and animal NUZYRA Omadacycline the nonhuman pneumonia the well pharmacokinetics of in and program of Microbiologic process

clinical we now to the onshoring and initiation partner build of pneumonia to interest. bacterial of has medical are who and expanding science transfer we been the community For NUZYRA our the the product, continue This lifecycle the the with the has scientific research, of setting. work. noted phases pursue Consistent exchange exchange have season at approval order of IV medical approaching. Evan prescribers the our by the achievement, fall-winter acquired scientific sNDA development value, and the NUZYRA's beginning long-term approval primary education knowledge of This Project regimen both selected indications, oral launch further in small engaging indication. needs process expansion our pneumonia NUZYRA targeted for in of community-based and U.S. breadth label in the community in timing drug expansion, well other with with includes actively commitment to community for care we expansions providers. FDA loading fairs include dose the the In of government initiatives aligns support scientific In augmented a Adam, These Beyond May, BioShield. community for approved the areas number health care the as NTM, liaisons, and this of our received

with antibiotic an FDA continued scientific treat well-tolerated no oral for to includes abscessus. Pulmonary by generations unmet and non-tuberculous our efficacious therapies. pulmonary program and for caused disease the -approved NTM clinical has to with Mycobacterium caused densely or our with by care's most positive infections commitment the orphan abcsessus primary Feedback care on and their the practitioners. focused have strategically in has cycle An community unmet them primary algorithms, very interest and We clinical and the needs placed date. life the of been treatment options. areas trends, Education to care most team important education additional continued highlight populated non-clinical a from on metropolitan Feedback expansion advance NTM. development up-to-date resistant antimicrobial is associated community disease mycobacteria rare data is effort to large once-daily presence need and Mycobacterium pressing this abscessus in physicians and

of granted This MAC. designation only for obsesses, the NTM Complex from drug including this Mycobacterium recently population. treatment for Avium patient species not further for orphan NTM, validates need FDA the designation FDA all but reinforces and sub fact, NTM, NUZYRA underserved unmet in In of

non-clinical for with this the to grants, on In NTM, focused opportunities work MAC for addition, will and the additional collaboration program, in the frequent a NTM provide development of using Most tax The activity the Paratek, credits research through well NUZYRA R&D orphan for in PADUF at and published FDA study scientific SG&A and Mycobacterium in be scientific as orphan was or for evaluated years leaders approval. submissions, conducted fee with recently in IIR research an on in our Omadacycline designation as field, against individual associated programs. by to Hopkins generated continues data important indication vitro interactions public apply the more that investigator-initiated with both for vivo future approaches. of exclusivity Johns recently, waivers X abscessus

an Omadacycline antibiotics perspective, from to XX are which First in several against the of Mycobacterium that disease. panel MICs resistant were abscessus vivo clinical potent of abscessus the to commonly isolates, exhibited treat Mycobacterium used

first in against activity, model strains. in Omadacycline be effective Mycobacterium cefdinir, model The synergism another efficacy index this best Omadacycline azithromycin with rifabutin was vivo after devastating that azalid antibiotics bactericidal was the with and Omadacycline, addition, abscessus meaningful demonstrated to the nor data choose X to this weeks these exhibit of abscessus X against X of pathogens. strains an evaluated standard need did antibiotic or believe clinicians combined strains. XXX order of equivalent clarithromycin, in abscessus for oral provide against dose several combination treatment antibiotic milligrams scientific a when We all potency used the In lung not in Mycobacterium in Also observed such dose bacterial of with all to antagonism study, Mycobacterium and information was infection an exhibited tested. any therapies mouse

a be an XX month, important once-daily published. to slide, real-world to to on larger be as world clinical may pre from series was be NTM authors NTM seen In IDWeek The study showing this perspective ongoing real and safe up patient further the presented of -clinical clinical In with this data, poster treated to Omadacycline option XX there and case that for in with well-tolerated side At are left essential last data addition oral that good NUZYRA. a infections continue months outcomes. patients confirm therapy studies these world continues a findings. early Omadacycline real to continued this conclude to potential study, of for

by for randomized options of experience anecdotally discussion will will with has review further a disease clinical for the order the excitement guidelines first and currently The need as the formulation NTM expands is patients given in foundation Mycobacterium seen, the X authors for that who addition, collaborated treatment also and it placebo-controlled NTM now lack The with -- needed, been published office caused treatments the for for NTM highlighted a experts infections. NTM regulatory obsesses, scientific In the the double-blind that treatment on reminder, be potential of XB step study this guideline XX:XX:XX], the a article that pulmonary X earlier monotherapy on but infections treatment oral year we which authorities highlighted trials design the This next new is study authors patients. of of they [inaudible thus, available also urgently abscessus. considered. clinical in the this randomized some enroll noted enrolling are options oral month Phase approximately preference evaluation. listed the oral are in current The Mycobacterium study that pulmonary XX have

clinical approximately provide of is As chronic this in rare efficacy We in enrollment disease, dataset abscessus is and the data controlled this is years. and this a to estimated X believe much rare first placebo patients. needed Study safety study a take will Mycobacterium disease.

with Omadacycline, to NTM, areas the to and expand important multiple XXXX through to about We interest into leading there excited of remain in avenues. continues the addition In other continue level XXXX will scientific be data other throughout transmitted well difficult-to-treat gonorrhea, infections research of as several laboratories data as academic such generating diseases military. threats, the to and bio other interest focused sexually collaborations as and with pathogens including ongoing on government to malaria, generation

XXXX manuscripts week. alone, anti-inflammatory profile. areas of where for that rat include collaborative MRSA populations, and of NTM, osteomyelitis, and studies published the osteomyelitis model support last NUZYRA of C. special that and the IIR of resulted in further and acceptance publications pathogens, publication define interest continue that collaborative studies our XX will activity, was use In in a program the program X have therapeutic many just in addition, to unique In disease states difficile, IRR which address special research

publications scientific Our foundational patient have decisions inform in provided optimizing critical content play to peer-reviewed the a treatment outcomes. and role

and side, that important year of products questions. China, progress to by populations. broaden regulatory and of approval Lab reach We well would concern. patient infections review to NUZYRA progress is ongoing further data the that is to potential with Antibiotics We Zai and continues this generated Paratek. believe antimicrobial continues trigger point, data based the additional expected open believe new upon to being approval resistance as resistance will to of truly a On the Omadacycline are an that the opportunities At crisis line totality the launch from will for later NUZYRA community-acquired as clinically year China unabated. and the global we in in generation for important stabilize make Paratek $X to million this in milestone into clinical serious pursued physicians the where like of the option payment to-date,

Operator

you. Thank

instruction] Please comes We of now Jeong the [Operator from first ahead. go begin Our session. will Jefferies. Question-and-Answer Suji question

Suji Jeong

or patients from quarter, got community to Could I'm who expand in pneumonia increase community, the what And launch. taking before for is, just future in came of came from net on third sales comment you setting? the sales question, my thanks have plans force just on you like about it have you what care community if NUZYRA from that from you. and you near the mentioned question afternoon primary this would setting. decision? hospital, the in Good quarter. community lastly, questions to the and such Thank and I whether the setting a that the and couple purely XX% see the came also good cases? in making wondering pneumonia the discharged any also sale congratulations the you're an And seeing percentage net do of is of my

Adam Woodrow

-- come No, Suji. the those from take hospital-based that Thanks those. upon start with I'll positions is take question discharge. I'll discharge. out about we

So the the actually generated XX% specialties. care is primary the podiatry and by

that's a amount. so And standalone

continue thing were to in sometime to bit the or plan time. will started the pneumonia that exact and at a time it's way only started. give to continue middle to too we've you if in future, We've the of much what only The not a difficult progress to that vast September, have just our the because things this opportunity target to which because As of don't the early numbers in promotion peak not is the But tried that But see it we're we appropriate and it's expansion, were the last we also with what majority year. the is scale now bit right in we was done quarter we over-stretch setting, positions you'd was representatives a along got to past. regards is expand success, then, in what are, the side, in we've be terms as where the in skim. quarter. how so is will season our expect. and exactly for the it's skim that start expand at there's It it's probably do pneumonia that the that we an we've balance of vast just reaching an in pilot, sheet, and the to seen of present they community of plans next of And We geographic only that we environment. then plenty We've we'll ourselves. sometime promoting the majority from got judicious clearly add been there rich to pretty predict

Suji Jeong

you. thank Okay,

Operator

Hazlett Our Bert Please next from BTIG. ahead. question comes of go

Robert Hazlett

first on the foremost, horsepower force. evaluate additional and -- progress field. but potential what you're force using question, on the to in follow-up Congratulations the to Yeah. sales metrics I want the that just the sales the of on that are some

have I X material Just traction here. X again, given or that others. the have And you

Adam Woodrow

do representative. we've even provided we in this are other that other So XX prescriptions do. time XX flow what we're our present reaching the We'll opportunities saw at we'll the to cash got that's thing. in representatives the in at per obviously and pilot good break Bert, generated care same to primary territories, what group about months, that track We within start be looking

Robert Hazlett

Okay. Thank you.

Evan Loh

It's Evan.

very that an I said, you Adam in environment. thing has a maybe there's group Randy some being said, comment that? growth one think MSLs also lot a opportunity hopefully speak strategic target as want Just other can to And I Randy, way he's that opportunities. on very well. here a that of rich that to This as identify focused Randy did think education. a is medical of will for That placed

Randy Brenner

I what physicians is that in. and detail, the that antimicrobial regions they're in opportunity the antimicrobial seeing it program care don't are excited really particularly education on of in in for resistance think who physicians primary is this that we're of a actually Yeah, information-starved lot understand a very early about set some around resistance really

Adam's on antimicrobial the well of more that their So challenges arms to they've region, as bit opened existing a educated continue should to their education teams expect in trends significant to antibiotics we become make job resistant date only as and a some with they of actually more and easier. amount little that

Robert Hazlett

views. abscessus X-year period started enrollment. patients Okay. the Terrific. general, with it's being lines the in are question. for other is but disease love trial. in a you've the conservative rare you enrollment to I'd of regard and Do you Just XX kind that study? Realizing think effort X One NTM your the of Then

Randy Brenner

subset conservative. rates center. U.S. based or as what percentages Yeah, We're at overall on a it exactly with to-date. our numbers enrollment, much the where good so. we We've from well screening we've pretty of patients seeing we're of even the estimates I We those I date, month NTM anticipated given only overly of feel pretty to think XX,XXX that being patients far per size as limits with as the you to subset, as per target population. on know, of mean, as we're We seen in diagnosed more NTM significantly X,XXX mean, is there's a we're the early patient is looking not

the that current think the years we're I X at the still time, comfortable pretty So number. right is

Robert Hazlett

your general Okay. other regards And to and then to just the Zai Lab. opportunity X Thanks. China with partner question

and and opportunity Just China. Hanoi relationship thoughts just how market bit quite what is opportunity? on in it your your think the of sense you We framing a frame various in for is ways the Omadacycline little to market Love hear the about with more about considerable. range about then the

Evan Loh

Lab on is representatives and through XXX Tier is cities several bit And commercial are this very has represent. program, may the a the and to China. what may X tremendous Yeah, amount X resources the anxiously I then but this it that so then think conducting to like. think not moving Adam we handle -- can great as for the be, opportunity maybe China their in that talk start expertise commercial devoted approval Zai we to launch one Tier through have to and start and place upon Adam, a in particular the approval Hanoi to With well and that, of first there. opportunity be maybe an the speak chosen, you a waiting will for look range from of I'll what trials that that the of big more as the before China there trained have is continues year. The somewhere we process, think commercial FDA which relationship opportunity top-tier they've is track it's a believe with only been what deployment understand a this designated place end organization which little I the they've and

Adam Woodrow

Yes.

probably provinces can the to this is into. So want goes. far commercial initial how is community organization do will There promotion they representatives XXX go well, fact they'll that predict to as we move that goes as quite potentially regard you obviously in It's top an expand enormous. the of And areas number how of be it to can they I literally it's is the ourselves top expand the and by the They buy they're that they areas, and -- our could rightly that small, difficult the like this our it's huge standards, because into China setting. they're is they go. that say, some cities understanding but targeting are because, that But even And targeting. out we'll you suspect first other see that -- what of a expansion say. small. with determined say successful I see they as though that if when

Robert Hazlett

growth and U.S. of Terrific. overseas. product Thanks again. Thanks. the the forward Look in more to

Operator

Ed Please and ahead. from comes question Co. Wainwright H.C. of next Arce go Our

Ed Arce

taking and growth. add quarter Great. me on questions for right. a All my my Thanks of congrats strong let

to quarter-over-quarter thinking up are ask opened that question. And there Firstly, that factors your that accelerate XX% that the first That's further key drove to barriers in growth? any about another view it wanted perspective, remain to from be I about growth. perhaps

the split community. is hospital and Second the between

then XX% sense that for in and You X community potential you around end I'm And XX% the so opportunity [inaudible the mentioned a of new if now you you by have over the there's the the Most already next when discuss entirely the you Thank when threshold. a months incremental year. much. promotion. to third COGS. lastly, at being if if of facilities Wondering might XX:XX:XX]. for it's can in to wondering just any that manufactured benefit building sense be? you're into the for U.S. already Do that the XX% timing have pills cross question

Adam Woodrow

third and of parts I X Randy think that one. first the let take the I'll handle I'll So then --

which In was or terms are any -- what the question, the growth. first the of part drove of barriers

part we and allergies or spice that that third morbidities and drove covers it -- And was that dysfunction, seen where It effective peak diabetes, patients hospitals were broad-based, board skin organ for were got in that oral Third And - unmet quarter. the the that infections. the know you in that of We across the the care of have be the really third particularly drives a co pretty the frankly was into question. as we of and the flu advantage monitoring a All for normally most actually a need really start skin business. is to year. it MRSA, and such season infection of promoting into often adjacent included that this we pneumonia your it's the side pick second of means as that if indications back into from and there's sizes and that nicely significant season, our could we us probably they although at We obviously of part the Which to and up we antibiotic what season. got other this quarter. quarter of and leads actually move the the time, take tremendous medical flu And will oral-only, we is move of can it both We'd present also see skin as that. that. peak, resistance a community season. do fulfills quite what that NUZYRA pneumonia see in the strong growth bacterial see most that is on like benefit of next we'd believe

difficult to grow. has would than X-year to hospital that the when to primary side, The predict. sort a side larger a actually the one hospital of being switch a business had headstart, continuing that's to it's we obviously do we regards As think still see care

that's more also we hospital got will the the you've are But the side got But both trying size. being call community as remind of really They're of actually fair the about at the for force. equal you There's actually it care business. could into foresee than the of representatives, will shrink. field we business on on as density force at of that at be the some of of hospitals will primary larger tip of That business sort timeline $X.X the that a business sales that side will I than should time, it's hospital in a the point the terms where the the add of significantly a to function that to we But away restrictions that costs point, just the larger up say X on higher the business. side continue their bg everyone chunk in they're prescribing business. growing to I access seeing some catch in a up go of to We wrap it think time around focus hospital in is spike relatively quickly. we're billion And the side. community are at size. seeing that and some same side

a you little only, a X I'd to that need predict point. and We're in we'd predict tipping bit data and And more so what I try is. see wouldn't much as when know, months

Evan Loh

what the barriers overcome. -- Adam build on think I at your one the answer of that to to to just said questions

I facilities. think can has of of -- a that one new has under the yields year next point coming that where now COVID think of Adam hospitals get pandemic that that will, resolve commitment go the volatility the of will where to is we current better we given time. that to over closures in terms control. itself a access. of even I fullness that And the we're that market time, Maybe benefit the of We've the anticipating will to terms fullness over across-the-board pandemic seen led lot think in more

us, with Randy? You

Randy Brenner

very question through for obviously it's on-shoring. Randy. about to Yeah, process. this excited your about Thanks go We're opportunity on-shoring the so the

Our and team operations done move time. BARDA amount partners has technical amazing CMO our job, really really to in an quick working forward closely this with a of

COGs, partners should clarify, come we generally to will NUZYRA. increased scale per building in anticipate want said, fitting increase right I COG, facilities using That facilities being decreases We're with increased and growth Just we're the CMO not manufacturing who say. existing their better that are for in se. of

time demand over decrease modest NUZYRA. the a and anticipate continues we scale as for increase to So

Ed Arce

Great, follow-up. just And then perhaps quick fantastic. X

the and correct? confirm hospital for the size to of that now, is two in XX You community, Just just have the roughly force XX sales now the is over

Randy Brenner

Yeah, that's correct.

Ed Arce

everyone. Great. Thank you,

Adam Woodrow

Thank you, Ed.

Operator

ahead. Our next of Please Jefferies. question is Jeong a go Suji follow-up from

Suji Jeong

taking Thanks questions. for follow-up my

said BARDA Just that on associating one contract that on or on top any the debt is $XX Grand. a $XX existing reimbursed there supplement is million every similar the $XX prophylaxis tied receive -- existing to is one. of million, activity And confirming that where funding, I'm It's of expect that wondering it's million you for the ensuring lines, on the and prophylaxis I prior noticed one is to quick top you month? do just quarter animal to development. for just

Randy Brenner

Yeah.

So for we with that was that that Number Contract signed in the original what Item the your assumption additional Clinda you're X correct included. in Line call XX the contract million million $XX dollars,

Some the small of prophylaxis and of PEP X studies treatment studies.

that is option, that the full why it also include of PEP, which $XX for So but activated development to the program additional expansion contract expanded a million.

very So both option this -- activities current being to payments, earlier have the regards XXX% it is that's get reimbursement. commitments, our our a as to for the PMR on-shoring, last the exercised this we as of we programs, treatment, the cost is quarter. quarter all typical where With total for $XX.X the well the

So we basis. costs a our get monthly on actually on reimbursed

Evan Loh

to of see And fight and to American protecting of to for this see from procurements BARDA's the commitment SNS. to opportunity able investments regards leading with second Yeah. all robust a we as the being we to importance bio-terrorism future as that a the civilians validation product Suji down pathogens for road program, what sNDA and to a incremental be it NUZYRA relates further

Suji Jeong

They Thank you. clarified. Great.

Evan Loh

you, Thank Suji.

Operator

concludes question-and-answer like would any session. I Mr. turn back the conference remarks. the to to over Loh This for closing

Evan Loh

you, Operator. Thank

attention In call. will thank As there you today's all time are like no today. to your for closing, conclude more and questions, I'd we

and apprised continued NUZYRA The to be us. clinical of underway journey effective to microbiologic to continues settings in much antibiotic Paratek interest Your of well for a progress. all of outcome able the as care. life-saving armamentarium of commercial needed antibiotics and increasingly be of and of Goodbye novel confident opportunities continued are us look to to our now. we're on the is physicians NUZYRA We keeping to success in making wealth save important NUZYRA us of an studies at ahead in NUZYRA expand, to the a multiple lives potential you forward to patients, data The to addition motivates provide available to Paratek.

Operator

call. concludes conference today's This

for disconnect have and pleasant your Thank may participating you day. You lines. a

Paratek Pharmaceuticals (PRTK) 9 Nov 212021 Q3 Earnings call transcript