PRTK - Earnings call transcript Q1 2022 | Paratek Pharmaceuticals, Inc.

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Operator

Good afternoon. And welcome to Paratek Pharmaceuticals, First Quarter 2022 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there'll be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. to of conference Finance. like Higgins, to now President Vice would turn over the Sarah I Please ahead. go

Sarah Higgins

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

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

Evan Loh

for many indications Good believe corporate Thank proven profile. thank 's important attributes. once-daily and you product driven NUZYRA earnings tolerability safety with operational disciplined of is clinically by against in favorable the joining and efficacy clinical formulations, combined resistant two and a afternoon, our Paratek’s XXXX execution, you IV strength These include pathogen oral update Sarah. approved quarter all that first We and and call. commercial business

this formulations the first next performance NUZYRA one growth launched to commercial clinical as coupled continues this setting February. January three years believe not would the and oral Having a on slide, utility have the it in our to quarter first IV even stronger successful see NUZYRA execution NUZYRA’s with both in core Strong the resulted every been disciplined decade. launch can business. last differentiate in in most enables were growth in care. demand, for antibiotics U.S. over of you wave commercial We As year-over-year, significant of Omicron have

the As accelerated into and of is the satisfaction physicians improved hospital quarter. elective access and balance resurgence second the being insurance of surge NUZYRA in momentum quarter both This and driven through a first resets. deductible the community demand by receded, surgeries of annual to settings, the

next quarter million our in which commercial growth slide, the sales quarter $XX and past On of see at first over from nearly quarter represents a XXXX. NUZYRA you that of this to in core the $XX XXXX left of landed $X XXXX quarter, first the million from this increased of net first million panel can XX% business the

commercial upward right this we on year. revenue core date, year trailing the suggesting reiterating the continued our on to growth XX-month trajectory, Based demonstrates are our full to guidance. NUZYRA’s significant a panel, strong Importantly, performance balance of performance

continue principal revenue to our pathways NUZYRA prioritize to generation. We three

Adam will First, be continues in more revenue of remarks. performance. provide driver current to NUZYRA’s main core our This growth details commercial prepared his the business.

a estimates a subtype ABSSSI FDA promising potential opportunity. the of with therapies. currently market is in addressable Paratek a disease. disease specifically, More billion NTM Mycobacteria no future the at represents space. abscessus Non-Tuberculous NTM $X opportunity In Second, disease orphan M alone U.S. NTM rare the growth approved represents

Defense. NUZYRA stockpiling government the contract, BARDA include and our the infections, being threats. Department broad opportunities. should NUZYRA’s within preparedness pathogens under U.S. believe component These initiatives formulated We to bioterrorism strategy performance today's it of important, pandemic opportunities contracting of wound antimicrobial U.S. lifesaving that utility other BioShield address tactics and Third, resistance, emerging government make against for and with

$X.X service highlights. note loss for expansion. prior $X.X for $XX.X prior million from per and or XXXX in Total million, turn this XXXX same and $XX.X first revenue financial XX% the I the year. earned million and $XX.X would share Now, cash primarily in million net revenue million NTM from $XX.X Paratek marketable quarter XXXX, the quarter million for XX% $XX.X general increase In under was the $X.X Collaboration per period administrative $XX.X million the a from was were in NUZYRA net the the contract the the year. reported contract prior first Adam. and and expenses cash, for grant for compensation same period the in $X.X cost BARDA last expense I reimbursement R&D the same Adam? in for royalty million, increase would an the of compared XX% The Development for of to the revenue period for like for costs of the Xb $XX.X revenues quarters $X.XX of for costs first community and the year. ended quarter for under and and securities. of of to Paratek study. of incurred initiation generated million million result $XX.X revenue compared to of sales same period year. of costs Phase share, BARDA call increase SEYSARA earned first of was the in increase quarter United first for over to contract million China. The activities slide year. for the reimbursed XXXX a due review a like Selling, increase XXXX respectively for $X.XX the prior equivalents in million the SG&A in or Government quarter of on $XX.X XXXX XXXX the me, incurred quarter expenses expenses Total to a was primarily period million, million to expenses & with of now in following the the Paratek’s was the that royalty represents the we same comprised States from the $X.X first sales U.S. of prior primarily were in Research sales NUZYRA which NUZYRA

Adam Woodrow

despite to of season. unexpected cases Evan. Commercialization spike an the in the NUZYRA flu well, settings hospital of and Thanks, in typical COVID lack community both a progress and continues

Evan increased has core in strong resulted year, prior $XX.X QX‘XX. earlier, in and this Net the our growth business. to million XX% XX business execution in million sales in impressive for core $XX.X NUZYRA's As the quarter, noted consistent demand quarter commercial in compared same to from QX

with we importantly, More is that this being by by net XX% indicator growth. demand period, leading demand, during increasing this future driven know is predicting revenue and gross

elective into that and we in driven demand momentum annual product a receded, second accelerated and wave the the has end This growing surgeries being the improved quarter. access hospital deductible the Omicron insurance continued the of to resurgence through of by is experienced settings, satisfaction resets. first As quarter community of physicians

comorbidities. patients focus care suspected with in hospitals to is on the known of and resistant by patients know Our both the discharge oral continues pathogens physicians. the for valued with Doctors early NUZYRA formulation ID or that be who We IDs, enabling

approximately acquired addition we market yet pathogen. with the pick skin length of patients realized hospital the health system, Based by XXXX. to with and resistant savings believe pneumonia in risk In a up reduces hospital internal on cost by bacterial addressable stay infections be the XXX,XXX care estimates, to patients also our there infection for will another that a shortened our

share timeframe. X% achievable We is in this a to market same also XX% believe

in label only. numbers represent Importantly, on these patient hospital usage the

Looking we're increased to ahead, discussions and our access representatives. seeing physicians sales allowing hospitals, between face-to-face improved

adoption Importantly, NUZYRA which there's also the in been creates for scheduled and a more committee stewardship regularly more frequent opportunity reviews, return to formulary and hospital.

XXXX and these For we this anticipate reasons, the remainder beyond. will grow within momentum segment of throughout

turning community. Now, to the

efforts care a Here, directed doctors promotional our of podiatrists, towards are primary dermatologists. select and group

known pneumonia on and Our generic that drug same the profile approximately or pathogen X% there target estimate We organ to oral antibiotic allergy. the is by share fit have We in this in market our patient that or resistant patient be is either dysfunction community have in and focus will achievable a timeframe. the options patients challenges suspected who population. patients XXX,XXX believe XXXX. serving a XX% skin Current

have in actively to worked has we be XX call XX prior end We are total. expansion enter year, the care to the To team community community well representatives of in by underway. the the community in will efforts increase to that of no our field. enhance XX XX the sales access of As expect in to we now closer with there approximately the to Medicare to mentioned middle the By limited market our covered year, number our estimate productivity, to force lives restrictions.

For example, increases XX% now the without to Medicare nearly of covered added formularies NUZYRA was beneficiaries nationwide. restrictions, three to number which Medicare major recently

antibiotics across we believe most NUZYRA accessible the patient is result, insured now populations. a one and commercially Medicare the oral As of branded

ensuring across market appropriate to access broad commercial key NUZYRA’s care. clinicians patients both our be have and of all moving settings We success continue are that NUZYRA to a confident forward, will driver to access

You XX, of will can community year-over-year both physicians. see consistent prescription we generated on expect that hospital days slide and therapists the be and of growth continued by there

of continues oral sales XX%. force the therapy The community generated therapy days the hospital to that community that days proportion expect will approximately prescription from prescription surpass of the We now and sales by is of grow by force of XXXX. by

With acquired saving that, lists remains serious trial and focus lives infections trust usage Randy. the establishing are credibility and call by with who Our I'd now and and treating like on every turn over awareness each new repeat community day. to building gaining physicians to and

Randy Brenner

medical the by Thanks, just described scientific community also its the support is several affairs mechanisms. Adam. Adam, expanding In expansion reach of through team

MSLs hiring a placed health to current engage or patterns, MSLs complement exchange expansion. skin community pneumonia science the focused addition will this be with following options. on our First, scientific of providers. expansion pilot a to This well patients, care treatment with resistance MSLs community geographically in successful focused group today's field as medical and commercial begun as community team, medical planned comes These with in targeted we've hospital based program. The to discussions challenges liaisons new

practices the all meetings, focused we journals continue activities to education. Second, expanding BARDA, and through under scientific the contract. BARDA together to program, we With community execute and medical scientific with are community exchange on to education reach regards

the pilot are the and for execution We preparatory required planning two work efficacy animal completing of studies.

be available global supply in this XXXX. With a with which of to scheduled top turmoil study on to NUZYRA in year. pandemic, the to a BARDA vials from U.S. international are The a rising half is from line milestones our in and and based to study the the this valued of we at a initiatives is particularly antibiotic important. for production commercial of in from U.S. shoring commercially in of the API XXXX. contract, available our Omadacycline $XX lifecycle progress U.S. continue development randomized only and for top quarter Phase amended expected line will with is of progressing purchase supply non-clinical availability some of U.S. program studies. NUZYRA to first Amid procurement second based continue to NTM regard is the advance caused program U.S. indication The fourth the important disease rabbits by second plan. caused and received in trigger for XXXX. which orphan we NTM this of under pulmonary of M completion data Enrollment and abscessus the Mycobacterium data clinical Mainly, continues by XXXX abscessus, BARDA has the including positive in infections the NUZYRA Xb study million. pulmonary NUZYRA tablets The began anticipate chain

take approximately this As a to years. two disease is estimated rare is enrollment

first the this As and controlled disease. a rare is this study reminder, placebo chronic in

and regimen discussions clinical demonstrated highest and hollow Mycobacterium it these set foundation NTM, the Avium on is study MAC. non-clinical Journal abscessus to of studies such, the was will in system provide of activity cases authorities in an MAC of This Omadacycline of disease more updates pulmonary generation desired model a in from MAC. later important Based Mycobacterium potent seen considerable in pulmonary abscessus about encouraging studied prevalent published bactericidal as patients. by NUZYRA of Mycobacterium questions. QX, for study, are Omadacycline an FDA the the this the granted regulatory need designation efficacy MAC XX needed or we and data estimated XXX,XXX all be FDA initiated abscessus. plans efficacy excited Avium. investigator Mycobacterium study, the at evaluate in year. and in in In M NTM potential demonstrating of infection of with a studies additional the with both provide for like data has caused which further potency comparable of the safety a U.S., this times data designation There subspecies with activity efforts remain label Paratek validates further next treatment quarter against and patient In reinforces study. important Omadacycline NUZYRA second expansion. will standard-of-care including drug along of Complex orphan for to vivo As NTM exposure the and around for presented the to on-going line NTM We drug much underserved our will in Operator? and fiber future point, meetings unmet initiate was At this open being the The This population. scientific demonstrated Chemotherapy. this three that the would call against the Antimicrobial findings, of than potency of results

Operator

from comes We Suji with will Instructions] begin Please [Operator Jeong ahead. Jefferies. question first the question-and-answer now go session. Our

Suji Jeong

about and questions first thanks into for growth demand you follow from Thanks. you about up quarter are comment the afternoon, questions. Could such your bit the I question. my a taking seeing second And pneumonia I details going share as more or about whether a have little the have whether then couple Hi, patients? and quarter. good are or hospitals increasing community coming patients they setting saw or demand from

Adam Woodrow

a driven Thanks, improvement seeing the are we're of the that the And of that demand, increase fact starting function care of specifically is actually that's of primary care clearly the of it’s by prescriptions number got we've primary And quite The generated Adam. that an in side an that of community being Suji growth that that to has being in the are through business. primary business. in or actually demand force field the coming, care drive differential the increased sort the prescriptions side setting. in number

Suji Jeong

mostly the see or you skin patients? from pneumonia Do coming

Adam Woodrow

winter, actually we improvement dissipated. very, It's started quickly pneumonia our was some expecting almost season to indication, went the in it year, were mainly in as and in we then pneumonia This The non-existent. see skin. into very

so very as over prescriptions skin. of where And a the into so quickly far. away pneumonia pivoted consequence, from And back we XX% well seeing field our indication that's force the we're

Suji Jeong

are would Expanding we of as are the sales force, Thank the and on approaching guys community How trajectory warmer clearly see remainder the expanding you. that, sales you the like you growth months. year?

Adam Woodrow

than And business, the the with with some being an in Omicron bit wave. with instance, growth that’s So And quite then we see an anticipate clear the acceleration in phenomenon coming, as seasonality resets. to the and quarter, the, of a our starting we year in see same go year. the this, exactly third we're little actually now because QX this got three our we this softer we hit seeing years, remaining quarters insurance through past the highest also and

Suji Jeong

helpful. That’s you. Thank

Adam Woodrow

Suji. Thank you,

Operator

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

Robert Hazlett

spend that's Yes, and for apologies of for very, spending here the made comments thank the you've And should also the kind what to But married of taking about year the for you the we with And well. that's regard granularity or then thank diving you just a kind described? as for spend question. very R&D you follow SG&A trajectory year With just and on regard to throughout throughout think it. the I helpful. the to given additional into elements have that, how

Adam Woodrow

Thank you it’s Adam. Bert, the for call. Hey

the through seen the moving the it see quarter and the that cyber important quarter our facets commercial in we momentum this new buttress first of that with we continues our of product. balance One the that success to competence have the is trends of of model into

our SG&A mindful as we for expense our XXXX well the as what any from capital call, reiterated had to see We've as OpEx I the we previously. both current and guidance for allocation and guided and don't we As our last said R&D continued revenue said. had of on estimates we be on changes side,

Robert Hazlett

should in and year? just I there? any at possible that growth give year, any, get it's if to can throughout both be steady the more is be Or bit there's, all? the direction regard with mean, So to you throughout little indication to a it

Adam Woodrow

well coming, and year. on that happen primarily commercial of will expansion, talked you're have expenditures have, that expansion the from BARDA that the and commercial half second do primarily aware include, from, we we investments that specifically R&D of side, in we, we we the And have about, this

Robert Hazlett

to Thank great. two with I mostly you, the to work, of helpful. regard One is just that the -- addition, you That's question. M think the Okay, mentioned abscessus. program? Could program questions, ask just lines the other additional in additional you additional and bit the to And kind pipeline. with that regard talk work of what on is non-clinical non-clinically last for a a then NTM little required work last I'll about

You your all be for you for to remarks, thinking opening percolating Thanks. also should are mentioned, DoD just other about. that Evan, once elaborate I stockpiling again, if and there potential purchases. love in things at other we there

Randy Brenner

Hey, Bert, its Randy.

first the take non question NTM. for clinical I'll So work around

we so microbiology as on to required we're completed required most that the our we do the that's is base side, to NTM. we've What activities, work I around focusing is generally we're to broaden think looking these which always much studies this are did So are, not where continue knowledge all conduct. of

So in time, human the in checkerboard work an that we've of synergy PK setting we And obsessive accommodation this then the in in Mycobacterium that of with some because have work hollow a the an that on in type at where of is fiber in system. in has essentially that model. replicates sort into vitro model which the Avium the mouse point see been model like side, just we've the how expand looks studies, models vitro translates setting to much much seen vivo side, we're into study of of, done that our vivo looking the on some vitro to some

that moving well. also are We animal show vitro to efficacy translates efficacy now into some as non-clinical that into models of in models that potency

Evan Loh

patients what base Evan is Randy could, cough, a on non-approved placebo have of the abscessus. abscessus of see efficacy level Bert, said, Randy again. trial chest production, that, other with we've these it M regimen. and controlled we sputum with desperately is could breath, of the that If because said, of opportunity unique, who given a and of of for terms of synergism as I the that format new be pain, antagonism generated its see is I mycobacterium not lack And into that what the really NUZYRA, build studies, etcetera. terms patients, improving that data other in the pulmonary trial shortness design non-tuberculosis we'll here about symptoms you the think, if we used couple anticipate in these particular foundational, that And I with of in ill specifically, in antibiotic onset to class every be worried NUZYRA agents of to addition an has, typically

about, excited here I abscessus. of entire, it very design up the NTM think within opportunities of I we're think the opens the and So trial, spate

as that color helps how you we're give So that to hopefully the some thinking about opportunity.

Robert Hazlett

additional And efforts then potential and just, again, Thanks. to with regard any government color purposes?

Evan Loh

think we the and veterans Bert, as active U.S. protect our you fighters U.S. war as civilians about well inroads, think you not have I also to reasons all in of all a only as one is our of segments. we those safe, keep have government, have government made to as we but it's of our a why

First, specifically BARDA to anthrax. with from protection bioterrorism regards civilian pathogen,

specter the have NUZYRA, ensure that is to the activity active that supported because Supply that think the really urgency interest, put we it you are have not who woefully we access inadequately to that NUZYRA. here infections, resistance, Federal consider think we're well novel with of area the Schedule the the on also one of actually bioterrorism it believe veteran and for as war at is fighter market that look diseases I can we that you as on-going in antibiotics by access potential If veterans, today, have and actually context geopolitical I address raises only instability wound DoD opportunity attacks. When to the the the seeing

departments part Paratek it and them have to agencies, various We of fidelity from visibility with and weekly. is, interest the job to on the receptivity It defense hard soil in formulation is meetings. without next like to fact this borders, contact also and calls starting to that nearly of U.S. one give our year said, and have and, that a actually this great chain on of to education the do are U.S. is it will available also every that could for type tablets quite formulations energized actually ability and IV had our we something There's supply the regards us and our year. provide and and lot commercial U.S. IV in the available able cross depth by to of government conversations our breadth happen. people or And timing having with of That it's of we've being handicap the unfortunately, been NUZYRA. we've at when the

Robert Hazlett

Okay, thanks. there. Good luck

Evan Loh

Thank you.

Operator

Wainwright. Please Our next Ed with H.C. question Instructions] from [Operator ahead. Arce go comes

Ed Arce

Hey gross quarter thanks another wanted progress. highlighted Congrats as Year-over-year core of with demand taking my you to XX% your for on I was growth here. business the everyone net XX%. start of questions.

especially a it's a Omicron do wave much this really past have so lack understand, of the then driving follow that couple transitory? ups. I I the quarter think this of to wanted with typical just and And And you season, delta how firstly, what's and delta, flu

Adam Woodrow

Hi, its Adam.

we continued growth the gross So thing to think, early as first really the think sales that a come. see look, of to demand I indicator good is say net in I

these Just how sort of things. make measured sure to understand you we

between and the the where in They or function prescription is purchase sometime that sales a adjustments. represents we The demand account hospital, is a the to we difference take they actual has if net inventory our shipped the anticipate to actually sales tend be our earlier the the which of also as pays and rebates community, a bit year higher in in the And deductions net year due pharmacy, larger gross send in into whereas two absolutely impact little co and sees if pays a of net, on. co are and our the expansion the of terms where which year typically only predominantly very and to impact customer, includes this no you year. to especially gap, holding, of future. recall, that the had first we've Our the the field sales in the sales is sort coverage force bigger rebates, in which on this first into half gross place. in pays specialty And co the discounts, case, near of

So effect is, will wash expansion, pronounced with what little in bit seen seeing But we're years. our we've further the the than out was go more actually we a prior into that year. as

Ed Arce

portion my helpful that's suspected confirms that to transitory. be of that that confirm some Okay, there's somewhat as such looked that my,

Adam Woodrow

Yes.

Ed Arce

then the or I asked just throughout of lines get quantitatively just and for great. the have sense know us to but this community way the SG&A the before, qualitatively, expansion to kind of Okay, to even from And the Is was MSLs year to impact wanted a there back I any the setting. that?

Evan Loh

etcetera. tremendous and hospital see are so also also small, there? that And to an in in clearly, align basic they the the use inquiry a seen it’s territories within on are Adam at messaging that focused is indications the at commercial much the less of to than PI in broadening that opportunities so dosing, call from clearly Relatively of nothing amount important think, with Yes, and And are seen they adjunct of of and guidance. physicians but changed on U.S. the our community terms strategically setting important only guidance and the, has I the side. alternative to they it's We've it not all use our our are Evan. last aspects so the current we the placed educate what all has Ed,

Ed Arce

what before access just Okay, mentioned plans I'm getting Last were did added, words, other nationwide. XX% access In without the was to there just national those three, restrictions nearly any Medicare what for you me the incremental question you that's was were level formularies that of wondering, three percentage a for have? NUZYRA, helpful. that? on

Evan Loh

nearly the, I and was were were group, it with a re-baiting it one result are We're a in net was was doing this, well of hard gross work really of our it done to as is XX were team this the pleased sort lives added increment. the the million they perspective. that So this of these the current in think access fought, within from

with how So that's we're worked pretty pleased out. how that's

Adam Woodrow

I importantly, pathway with More restrictions. of also as that to I team to, said be create actually would that the to in add, think has to been access the chart, the the success in able market able we no limited

Ed Arce

Yes. Right.

Evan Loh

opportunity of reside. And sorry, I give of where the sort type how thing access; obviously, even of in this these our target is one patients us will terms geographies this, add a representatives we better moving of certain that result, helped as it's in forward. It'll us an

Ed Arce

Right. much. Understood. so Thanks

Evan Loh

Ed. Thanks

Operator

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

Suji Jeong

the net net elaborate the difference I'm you. wondering between community? hospital you following on between you. you afford what's and the on up the to between Can just gross discount Thank about the discount. I to point that? was difference Thank made the gross

Evan Loh

we've very The, to net. Yes, you as a probably as Suji. aware, got you gross healthy

what back a up the if as percentage move into is to you do it And net into is we disclose numbers, But community the in will little up setting you that more If to we obviously, you that can gross I don't our community, we specifically what further tell hospital bit give setting. But literally total. a few than we in over points the time. creep do in the tend is.

Suji Jeong

of in the community on I hospital. is days the that think treatment than guys mentioned much the previously, number you smaller

that the surpassing the does you slides account? one just take the on I'm that the wondering, growth into So on community in deck, days the from have trickling hospital, the

Evan Loh

care, therapy it Thank last in exited prescription XX. Yes, present the the time of XX we at of therapy community. disease consultants in does. yes, the quarter the side care average primary was this around days is average for you. primary business. the prescription actually generated community our infectious of as days This is The about And the for

Suji Jeong

Okay, that’s Thank helpful. you.

Evan Loh

Suji. you Thank

Operator

the like any our concludes Evan Loh Chief the session. to back I over for This conference turn remarks. Officer closing question-and-answer to would Executive

Evan Loh

forward your Thank attention and now. today. you apprised for time you to look our keeping continued We for progress. of Goodbye

Operator

now attending presentation. you today's conference Thank The concluded. has for

You may disconnect. now

Paratek Pharmaceuticals (PRTK) 5 May 222022 Q1 Earnings call transcript