AGRX - Earnings call transcript Q1 2020

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Operator

Greetings, and welcome to the Agile Therapeutics First Quarter 2020 Financial Results Conference Call. [Operator Instructions].

It's now my pleasure to turn the call over to Matt Riley, Investor Relations for the company. Please go ahead, sir.

Matthew Riley

Hello, everyone, and welcome to today's conference call to discuss our first quarter financial results for 2020.

fourth me based that including our on prospects our operational for let business for include regarding call statements and future start, year outlook statements full forward-looking our market the the commercialization financial we and market share strategy remind expectations expectations. today's you will concerning XXXX, Before management's and for time of statements our assessment quarter and contraceptive current performance, size combined and plans, hormonal among our Twirla, our other the value and line, of the potential expectations, Such in statements involve not risks as forward-looking the from actual today may promises that uncertainties and differ may cause statements. represent are our judgment and results and discussed or results guarantees to of the which that the through the as on Please filings available website www.sec.gov, information SEC, the may factors for the with concerning as are at to risk affect our well SEC's the refer company. website to except We update undertake forward-looking by no as law. statements, obligation required

The and not information decisions. for promotional prescribing is purposes call on sufficient intended not today's

Therapeutics' Joining Agile are Officer. today's and Chief Dennis call Chief Al Altomari, Officer; Financial me Reilly, Executive on and Chairman

prepared up your open Following we the to call remarks, our will questions.

Al. turn me over the let call Now to

Alfred Altomari

Matt. I afternoon, for Therapeutics. earnings quarterly you, you thank to first joining and want you Thank Good everyone, us. our welcome Agile to call for

times on Before find ourselves we we reflect in. begin, the want I to

of be this health on During to we industry, part the reminded namely crisis, we help are care chose to patients. why

must important on think outside the obstetrics It the the teams women We or loved about while to the think woman to trial. care It patient platform. have trial. about young parking participate providers. XXX is the her Agile, waiting that SECURE is alone looking at lot. their that health conversation going investigators who we X,XXX-plus who contraception who executed is in checkup SECURE us women about telemedicine the their and We For a think a consider office the the is one in partner and have

the workers and caring for for us respect greater a health even the frontline, keeping on have care our sick. We safe

preparation. to of unsung business But home debt It Agile beat. drivers Corium, sacrifices a the postal ours, for delivery a so and with who can forward is computer thank other gratitude additional offices, now taking the to go execute techs, company the team It our to challenge. want owe make that this the we build the is without our an on frontline, a we manufacturing the from Agile on to heroes. for carriers continues our partner, missing I like trying

Finally, on carry that who without not importantly, recognize our the base has it investor us have financial we given business the done support plan. could we to

your Thank for support. We your good hope try safe. families stewards and of be always capital. you your will We are you to

Now let's begin our update. business

work-from-home settings. like for I'd the proactive specifically of all quarter the employees impact by we its to took plans At highlights COVID-XX and pandemic, to Twirla. the commercialization steps on first emergence first discussing before Agile and pandemic our address moving COVID-XX business

far, health all operations. history, above the pandemic nor commitment day-to-day organization, of employees it our thank our and Agile the safety disruptions To time employees their has Twirla have to financial circumstances. for these not this our QX all to and, all are a have launch material employees We and not did thus anticipated Our our pre-commercialization has we impact line. in remain The impacted under our extraordinary time results delayed backbone continuity prioritize business virtually of connected on and their flexibility Agile's ensure minimal else. only pivotal during had and

the still on trade is XX in Twirla We Twirla to when February today received believe to on FDA was approval. XXXX. the same guidance QX we're Our ship as it track

portfolio FDA's take turning of Having the of Twirla Agile as Agile was and an game-changing the secured first Agile Now allows results our important more assets approval was goal FDA's and forward. direction the enables longer that to care It us towards XXXX product quarter obtained going needs. plan. commercialization The it's of an to mission in prescription delivering health our short-term of Twirla support step detail. we us quarter for on a a marketplace, of first to establishing more to begin funding to build a of our that unmet control approval necessary address history in FDA-approved our moment our review our of in the women meaningful contraceptive now

goals and work outstanding not taking team clinical at dedication Achieving our our Agile. easy, and hard regulatory was from

like would as new made and, well major of thank course, it trial I our not us marketplace and inconsistent Twirla option this to that Nearly possible including who this advocates contraceptive the our those health for personally addition, clinical method. of is for of In researchers, the use a In to believed. and/or believe contraceptive as the milestone, corporate of improper all care in attributable we patients, the is welcomed. are our contraceptive approval women view, achieve U.S. providers, investors. to partially be unintended, The pregnancies served market half should brings the to

change for unwanted Giving to across be thought needs more individual tells us methods in preferences lifetimes women vary change. pregnancies. that their is choices as their Our research and critical market contraceptive women's reducing

reduce compared method take High research, is believe between the a of birth X% designed of an this dose has is Twirla to X% to commonly implants, of and birth lower potentially taking is with to market pill likelihood injections, on billion we to total We segment. control estrogen market they where of daily rings of problematic be invasive opportunity blood addressable the may our oral share once-a-week to Based believe birth in control less IUDs. doses a at be line a prescriptions. estimated or contraceptives. is share patch Twirla control may able Twirla combined with $X.X Twirla many contribute prescribed products peak, hormonal to that a an contraceptive, label associated obtain can doses its clots. a the in or in burden provides designed estrogen that as be to increased CHC,

these dispenses units total segment. units CHC On million Let single potentially for of reported share the point average, me value contraceptive or month the branded prescriptions put in to a the a per X.X XXXX, category. of of prescriptions CHC each like approximately were approximately pharmacist could perspective In monthly there a be for XXX million in of what Therapeutics. total CHC manufacturer in the Agile cycles XX.X approximately

products, approximately to there's $XXX on depending from many prices factors, including For WAC $XXX, range whether branded CHC generic competition.

WAC we illustrating share were a CHC price is value -- at of pricing here. potential assign on contraceptive. guidance the purposes approximately my because providing for are evaluating time per unit $XXX market use meaning the any We not products, entities, I using will or XX of as with our top you still For discussions should which the strategy current any of month average point, this we not conduct price average care price to meaningful our so managed WAC

high we single as share assumptions, these a estimate as to of value potentially be point on the $XXX based million. So

the achievable. believe market our share For plan. have the the a is the company we Agile's of view, We size, execute and people product in on to

research to We the opportunity update our contraceptive Twirla. commercial the for to market market and evaluate analyze will continue

common capital To has tranches, growth February Twirla, date, $XX million million of to proceeds has approximately offering $XX were with get a this recognized available We pandemic. X milestones fortunate just raised from Agile get we our will of accelerated in we as the to quarter the the a separate our our and and approval additional are of $XX that. a the us debt financing. in certain net commercial done been to revenue first end million Advisors, -- to through upon position, to be the XXXX we fourth stock. were Combined gives this activities, Agile runway COVID our capitalized XXXX With achievement accomplished the of In that available Perceptive business fortunate well via XXXX, its of in public XXXX, launch end leader cash Later, the of prior least $XX to XXXX, XXXX. we in million with the Agile made XXXX. the X and Twirla financial February do strong at position in plan of signed of expect of facility execute

of we equivalents at As and Dennis detail, describe XXXX. balance the more quarter cash sheet first in had will approximately in end on $XX million our cash

We our of part include of and I'm pleased our of this is report Another These on hires President round progress are and Vice new business growth vice VP of hires HR plan to critical recently Administration. and important of Vice the presidents the team. strategic Amy Herstrom, now Welsh, Keith added three team. our Froemmel, President addition leadership Marketing; strengthen to Each hires, an on as Chain; new front. Tristan our These to commercial execution organization. senior Supply these out of

sales of in are hire with we are growth our will XXX manner to than capabilities announce a to phase XX rather force, we In phased partnering be Solutions. to at and next Selling people we The pleased our Syneos total, all once. expect

of expect added hiring sales third representatives quarter second in begin managers to sales XXXX quarter the and be We the XXXX. the with to in of

a now, be both involve to of office-based use sales sales and We executing right adding opportunity COVID-XX this the will locked of to virtual-savvy talent, or traditional build not the on tactics. large sales selling nontraditional challenges model are emphasis and a fortunate a This world. into post tele-representative digital handle to capable we'll force

interruptions. will potentially any Agile approach model in not configuration building will this to require business our is Additionally, new to that adaptable be reach nationwide a targets. a order

and rethink These for to Board for place, virtually unique extensive practitioners to if plans experience focus will a provide force Twirla target evaluate Barbari pipeline backgrounds force their Carson or to and of support fields While products. Dr. necessary. women's nurse and invaluable most be bring Sharon Once our physician parallel, our and X to Board new their we're our towards respective OB/GYN their likely the with to high-volume excited and nationally, as are in forces that build launch and engage sales sales physicians Directors. In our appointment anticipated companies we can of the in announce health sales remote assistants. of members trying Sandra we will settings, the of nomination advance future the of

panels. and we and June, contributions. Sandra look and established clinical advisory experience an and regulatory as throughout leading on to operations health, through XX of brings in brings experience years of biotech women's research pharmaceutical financial roles Carson clinical in with Sharon coupled growth and various membership and in Board will forward OB/GYN experience expertise Dr. the insights in senior our through her Sharon career. Both physician FDA's join periods significant their

Bill opportunity and I this also contributions Bill of our and to longest-serving them the to both service lead Audit before has the McKee Board. been is the served like director thank independent would director We Abhijeet Committee and to since time. their since wish take XXXX. joined Lele acknowledge to IPO independent Chair that Board and Abhijeet has the for of Board's the as well. just the them

the In our the out of mandate of There part are managed forms Care the gain initiated XXXX, with for as contraceptions access and with contraceptive of copays. get for work one Act, Agile Affordable in quarter care current Based contraceptive market plan XX on first mandate called the and are patches of to Twirla. forms. no all patient free women the payers in XX

to Our can Twirla proposition have value so is eliminating access want no women a with barriers that we to or minimizing copays. objective simple: build

In back access federal overall of are contraceptive part addition state mandate, our force inform of access, It mandates that representatives individual sales as have managed number force plan. rollout. activate in our are markets intention the strategy our only the ties can strategy enabled there that will leveraged The to to to our of success our sales in be phases. a or deploy to care is which

believe are we behalf their innovative program not on of and The that patients, if she prescription is replacement prescribers this do a or be patch a this on to payers. doctor needs will that Agile. program woman patch, patch program. compelling that loses a a building principle offering replacement back go guiding to of both should We working convenient also believe her for otherwise have her a to and get and for new an one, We're

thanks schedule, We've Turning patch experienced stay been an to manufacturing. able contract on to to Corium, manufacturer.

of soon. the completed the have -- production pre-validation testing, And to control be completed batches. our be expect subject that final to We to QA complete we

manufacture will the validation X validation into phase, that transition In then will We phase. final batches we of Twirla.

commercially that these batches product. expect usable will We be

quarter to to support XXXX fourth As ship previously guided, we time in a date. batches plan these complete

to long-term is study study studies scheduled XXXX. and similar in FDA users in to with prospective The approval, comparing requiring half part study and other study safety combined of Twirla contraceptives. hormonal the designing is final throughout begin observational FDA conduct to for plans another approved Agile interim The the As requirement costs Twirla's post-marketing contraceptive. arterial the to The VTE risk new the is the related November combined users thromboembolism to of hormonal of XXXX. Twirla FDA's November evaluating company post-approval the be of in submitted an post-marketing for a due data Twirla report XXXX recently of of to second for the a requirement new

Agile, getting we achieving Twirla our capital force, anticipation this XXXX quarter line expectations. notwithstanding launch FDA operations launch, plan. and raise our a in COVID we're in for of believe access manufacturing approval of out recap, for it's XXXX, market fourth to the prior to the Twirla in build transformational sales been and the quarter will with continue In By we good position goals, To pandemic. a our

now of first turn who'll the call the XXXX. Reilly over financial for overview will results an to Dennis I provide quarter our

Dennis Reilly

thank And everyone today. Al. you, you Thank listening to

quarter our to review financial results. I will our cover up before I'll the first opening financial Then First, call Q&A. guidance

in year including compared was first by primarily in $X.X preparation offset G&A partially expenses approximately our $X.X with the The the increase $X.X to to were million quarter in $X.X selling operating related Twirla. was R&D a the Twirla. and first Twirla. related XXXX other for loss quarter They of costs or and We in million to million expenses development compared G&A future in costs, of per our among manufacturing quarter R&D totaled this $X.X million ago. XXXX, increased attributed same commercialization. expenses XXXX. $X.XX in launch to same to expenses $X.X in year share commercial quarter or will anticipate million per the related commercialization our in lower were the For marketing quarter Net a expenses clinical the ago. the to expenses of will first of period of These compared increase $X.XX of costs, increased million include likely the first payroll share

were During and strengthen March equity our able the sheet strong mix XX, XXXX, evidenced first our by equivalents quarter cash of balance XXXX, cash with current we debt and to position of $XX.X as of and million. cash ended financing. and We

Al this totaling equity debt As proceeds first combined earlier, XXXX $XX.X mentioned financing, includes million. and successful quarter of our

plan we monitor to continue spending. forward, Moving our to

in operating fourth includes XXXX, current fund be our million other fourth our our getting the we Twirla the factors revenue to quarter, between current be the expect in expected $X and launched to we marketing on business of And XX, commercial the for will $X plan, out is accordingly, and account continue revenue, generate quarter plan reflecting revise cash million to expenses Twirla, Net for be curtailing our operations. ability of plans of to the infrastructure. million. spending XXXX. Based If launch We of COVID-XX fund end able will including our the of at and which range spending initial impact as the in to year our XXXX, business through outbreak million. about operations G&A full we or our XXXX to that XX% to some believe sales $XX $XX this March build can

invite future well Day get closer. this to XXXX, Twirla, this near community of discuss the to progress later New in-depth date to we call community year, have This financial want interact financial an that this XX, Investor we the to management of that made be September mention the as as scheduled our of for with will our on to as on of and launch Analyst event commercialization we by our members members also I York. in continue opportunity provide an as the updates review We'll we draw plans. plan,

that, are up Q&A. now your With happy to for you questions. Operator, we the line open take may

Operator

Instructions]. [Operator

Capital first Randall RBC Stanicky question from Our today from Markets. coming is

Daniel Busby

This questions your Randall. is I start on just a selling Dan Busby for have off, few To model. on

you face-to-face looking launch? you who are have more what reps space have XX for with third, fewer how Or to First, have mean women's health much talent? prescribers your you you are conduct of capacity you potentially been to interactions will people hired the world sales Are time prioritizing could by expect? people already? return that should digital experience? the Second, sooner in rep in you for launch than does than And looking normal the terms phased

Alfred Altomari

Dan, it's Al.

order, So thank it's try questions. for okay. I'll them in you to do your if

question is capacity. about Your first

think that's So Dan, communicate, want face-to-face call is plan world. There in -- will. over some tele-detailing, build the might the the be need plan. on more So right? doctors all I we if if to get to, to identify what that I be might call to that you capacity always the we mean remote, we might we're that doctors trying

plan kind we planning so the the -- the worst, of for capacity. to when So best want we're and right, assume

important an part. that's So

goal high-prescribing offices. communicate to what we in we're be flexible, So we is be think trying is want to to the I want that right? the

front centers, of So we offices' the to want is. the business where epicenters, in the get most

are a in finding we're the what group OB/GYNs is lot practices. So that of

them. are their wait. we activate deploy don't front to them and we able of to activity against want to want be to So them want if But We shut, them. in doors get

pivot, the to thing don't so there -- want we ourselves able of short. That's think Dan. most to really important because find a that's So being us

you what we're hire. the a stumbling. experience they with where the with where of people get have pharmas looking you But about we office. for third me seeing they What might they can to They we're go it's -- directly new they will, look in, matter savvy looking goes the as can an in is which in much So the really on to have hire the important rep need, that's And great we're to question, office-based your like -- with because walk a call. experience asked that. We're that have relationship looking we'll the to on have if which not to because skills world are can that for smarts, front equally execute, it's get lot of a doctors. really Zoom skills

hire conversation reps a calls, that or these don't they a are You relationships, have office-based on with used the and great that a skill call have set. can't to doctor have

both. looking we're But savviness. for is to So experience equally important

if of. you in reps, doctors other XX your a of like, might XXX you might tele-detail. get on you you're call front we But So plan, want we we or say that them to with you've XX communicate got one always say have doctors we to in our want

the pivot world if changes want interruption a go and in you to business to your tele-details. be we able or So territory, there's to all

sales So we smart, flexible a want nimble, force.

can Your question? repeat second the second was question -- you

Daniel Busby

the could have launch? wondering XX less at Just than you potentially reps phased rollout,

Alfred Altomari

possibly. answer The Yes. is

think, the now, managed goes part of XXX finalizing the we're is total, So We we if max see. care really analytics strategy. Dan. this But as well, see everything we the right in

not managed in don't -- you're care, New reps like doors we're like, York, open a a doing days. if open the It's New just not putting rep not isn't market we care. We can there. We're it. don't old managed York or believe like in have So

we're where the sit our be we So being XX, If okay, up work. open, being ends be say, ends final map so it. If going do number and is sign the still up the XXX, number need when to we contracts, so where back it.

that business it's enabled. chase will We

coming at early, So bulk the we we'll waves. done least of more haven't onboard and But see Is. have deployment. the we I X than now, but see think of dotting Right final Ts we the them two

sooner. So Good you we that in more September about -- questions, hope if Dan. tell not you see to when

Daniel Busby

Okay. Great. one follow-up. then just And

you the you of can mind you just us specific a those year how On give are level the by by in managed care do the coverage an discussions end the launch? time going? on And target in terms update have angle, of

Alfred Altomari

are this know, of It's well. a question, mean, going great conversations number The pretty you is I payers. as Dan. a dense

You don't XX relationships. need

is need we The think conversations business You the that -- in realistic, than every is. customers well. to could. right might selfishly are We deployed have XX to our country, know be every front if we We're get have now. the not goal but to in to where patient less of that's going access done. these But our goal

get areas early. plans of So we we want the to country, the to up knocked, want so up open big buttoned

early So our few far, to a contracts we're so sign because good. months launching still It's bit a product. from little

as relationships. with we you right now, get updated. could launch, us closer to announce for keep But going generally them, well. but these some expect We're we'll to So of are conversations happy the you

Operator

Our question Blair. William Lugo coming from from is today Tim next

Timothy Lugo

progress the past all on the Congratulations year. company the over of

in lot million? finally the million sampling should this, a I at of to just that loading just of kind this of am level? and at bit back of build describe of detail Arena. this Can were coming of most us I guidance. beyond in all data AdComs up distributor $X kind know kind to there's little the Is or from Is the more obviously Phase something you with worrisome be off $X when estimates South one a quarter-to-quarter the think expected QX kind looking the we QX? III keeping at we I what's night. things remember

million So really around and $X million just get trying represents. $X arms to what QX this my to

Alfred Altomari

to we're give guidance. bit on some through now, okay, I to been comment guess. your made right, you now thanks, as more events -- we've through the question, I the of we've little that you stronger, what Dennis But doesn't events you're of us a company been facing with But Tim, some detail -- guess, the Well, this. a and agree and ask I I'll

Dennis Reilly

be Tim, early and have to said, believe, be is loading that We'll doing script-based we'll scripts in And QX. accordingly. as make available, channel point. amount you at sampling, and we will goal it to But fair be the QX, will the is a sure revenue product in the not we recognizing we of do follow. that

Alfred Altomari

Yes.

don't -- Tim, we right we of initiate the as a expect and the the comfortable we load with get expect, oftentimes see out don't chute. to So them therapy, lot We get prescriptions we more the channel, which to doctors of drug samples. involve the

later better expect get will. on demand, we'd if So to a view you of

So straight-line think I of that, just load. it's wouldn't -- but a off I

Timothy Lugo

market oral can market contraception forms? the Fair give us maybe, occurring has about launch occurring, know some which you market may generic idea just dynamics, the past, let's enough. gained some be call which of the -- market you so. the other can on underlying in alternative in the it like year over the seems And I Al, patch outside and of give or share it, you'll what's maybe some forms into? a dosage Can dose you explain

Alfred Altomari

The business the share, the the ring do patch, some is pill directly Sure. of Tim. other compete nipping segment see us, which, is you nonoral most one but against, is kind business, the prevalent still and the we away for

bit They there a they're So so business. of an take not a It's little evolution. promoted, because share they and they're -- revolution. getting here it's big some

everything a there, method for we that's them emerging. so -- cases. of, of ask not gives X, So copay there's free, the a to why getting saying little bit right? own a a think opinion, in IUDs think, I she's consumer woman, a is pull those in brand my a continue be ACA,

time that COVID are little women doctors front the IUDs, a in have based on a to heard difficult we've insertion. However, of bit, situation, having the getting

we that's to something the world. with watch got So COVID new

of big. we But a think I see don't Tim. that So coming, it's share little bit

going if that I from market likely, a But than more that our it other is dose share, achieve that, low more going share still still going or the those still relevant take themselves says we're off It's research probably holding the than out us X% most the likely, everybody. dose market to patch with to we're women to think going -- a very to we're pill. get lower X% come likely to not off to products. were coming

a little time the evolution bit to from bit So last dailies. share, there stronger it's seems A share. evolved away since of bit be dove But we a probably of price; a the -- in. trend little since little

that's think see we the I something all that across products.

So that's excited to we're on why bringing product. our be

Timothy Lugo

makes maybe, Al, the behind can manufacturing sense. risk perfect us? produced That is describe kind just batch and pre-validation after remaining of And around this you

Alfred Altomari

under been TV night, And right a watching things lot, Yes, a you Tim. through through in tension I you're go mean watching lot a a and woods, you've the at guess you of I the now. were state of CRL right, your AdComs. you're I plant number mean, of have. out and if sitting is and Michigan,

think Grand we remembers, everybody So know, Rapids. as in Corium, is I

organization deploy able So people. the to Corium was to continue

of pre-validation going made people -- they mean on. I that in making So their product. batch we middle got our plant with the COVID

in So plants. completed we first thing. we've our and all the made a days -- so we successfully is of We've product meaning But didn't a beat. everything miss the missed the made batch, an the which line. couple It's serialization maybe the first on we end time it, with

for exciting that's us. So

to the by from standards. it's batches soup experiment. big before, a defaulting in This But you will, trade product, but other never a any made if is including nuts, We've cards.

make forward to the validation. the us and final gives keep it going So confidence

final We to we QA So surprises. get don't manufacturing. results. expect think expect We the any this we understand

it way. the results, looks work test we it in We the So interim call process, good. along

batches. and dice we'll the samples. roll the to those sell able as And X we use it communicated, So confidence us gives or make the as them them big to be batches,

night all. it's getting Tim, I we're at though, we're nerve-racking worry But little in there, about. We're sitting So there. watching as moving a Michigan your that middle in is to plant forward, of it Tim. the bit else getting if nothing had

Operator

is Gershell today Leland coming question Oppenheimer. next from Our from

Leland Gershell

a of Al, couple me. questions from

we a us another wanted what maybe of Twirla patch. to Yet, much the preferential payers arguments if to make for of maybe other also, a XQ sales yet, have just as you help get reimbursement may about the category think what a in remainder of of us you and have those of through then ask, at And of sort those proportion what lower-hanging there I are kind that terms course, across in to numbers? for? First, terms sales understand look a through of it's rough just patch. fruit about And the you of older just advantages modeling over what year, hire versus the also, guidelines kind you maybe drill reimbursement with to could breakdown basis, the ACA organization like to is of at cost, difficult the different patch give of no see managers mandates your least the XQ, is your one can state into the country, people fractions product question in the I one. country the of with state-by-state in you that as versus to wanted expenses be could on reps a more

Alfred Altomari

Yes.

one. and two, let with the So I'll the I'll second let Dennis first me -- me help do

XX:X first And I'll the ratio. the see So with one, we managers generally, a take like roughly sales having second two.

something in So a the not through done, looking if And will managers, at. we detail. We're but Dennis we what guide XX we're bit reps, little hire directionally, sales expenses more that's X range. need you that in

dosage the or is they So our the forms. question X which have for to is X, Act works. our with required the call go those differentiation mandate interpretation knowledge the have X way the to or of of it, let's of one plan to -- in product, federal form I'll is one every XX require the The plan --

the they case in So patches, to at of have least the require one.

So support and when our believe good add -- have we we specifically, side-by-side, in us we're product we believe that out product, we'll can the leave they come to on because it. which we Mylan take a formulary, is going

leave off. or could leave could off us on So on there do They them leave the that we be reverse, us could and they and put parity.

be equal to on like ground. feel we is philosophy want just Our we

to have rung fine So a want so them, that to that. co-habitate X gets there If on we a with with copay. we on we're be woman

So that's we're with. the discussions in what

to So required -- have X. could they're they have but X, again,

of out fine outcomes X me. is -- either by So X

them. look have So in understanding all some products, of overlays that and still branded on is this, -- interpretation, that mandates, our sit in the California the one no lot we and copay. supposed in to digging brand hey, are state we're top says, individual a There's at

talk to plans, the of a when it's when work federal guidelines. that And trying an to with So you the see on plan system. read we the does we're bit overlay really --

let Some of just say, well, them on all brands hey, we nationally.

work So compelling say us we being all the going so have we're now. But give. pretty indicators support seem right to at value value, a clinical to get we done meaning should good. so to the that. differentiations, we think is But the decent reimbursement that far, product, proposition, But

interesting we technology, this our We believe have a technology, support -- to this table. patch the replacement and ancillary something bring's program other and is that

plans. bear willing put we're of expenses? think that expenses value you out frame guidance together for the clinically good walk the and... total about the do how maybe to want put a the -- just both Dennis, proposition, Like So to especially to for him and to through all and

Dennis Reilly

in $XX And it up, would will I we million will back, will be frame. to think let's year. obviously, in our go $XX heavy Yes. $XX in for the coming just we standpoint, that be QX And quarter-to-quarter. as said, million million range the OpEx Well, rescaling total quarter time we believe something $XX say, an the million as OpEx be from the to then

until So not have now. them September. -- won't August, we probably we're have reps We don't

in the won't expenses until little get a -- we won't even big year and maybe later the get timing. later it depending we that, So than on

Alfred Altomari

see I there's what pretty see fourth. saying the big first results, a had mean growth if you a you for right third Leland. look is can at We investments. quarter. coming spend I the particularly, the year, he's we've the made and, our to But we you through mean think second, Q good Dennis going

whole annualization the in of it fourth, Dennis guiding. the I like is think is

Dennis Reilly

Right.

Alfred Altomari

with spend But line it's to the part would you're the will, of, see pretty fourth the in of come biggest the kind bump, going if to deploying. will I in all but significant you when expect quarter in quarter, third going we're a

Operator

Wainwright. today question next Our Oren is coming from Livnat H.C. from

Oren Livnat

we managed I regarding the guess regard think really haven't I had your some conversation Xulane. -- regarding guess with left. care from there's I differentiation

want in the that You question you last said least with parity them. to be at at

that So a but And resonating to dose, restriction how do product factor you're going lower do at Xulane? them? I with is in obviously, you they have that follow-up. think, your BMI all? the mean in does your differentiation conversation conversations And with are managed with a conversation care I see to that

Alfred Altomari

question. committees with Oren, to, back good are difference, organizations. are our There pharmacists up I think we see still of They No, the see scientists. the there they physicians. talk are When doctors the value proposition, P&T still physicians fall is that these test the differentiation we what right? we I still mean on make our and meaningful difference. There

relevant. day -- to that also of expect carry our product Skinfusion, would there. the is the our we it's So I design mean,

is Our support of the product relevant.

Our the estrogen, clinical compared them. differentiation, is relevant dose to of as lower

we think story. a we So good have

it's And to But We expect answer far, would your we yes, to tracking expect would so that. really it. question, do well.

least parity, not the high pretty we woman free. deserve of okay. if think is have but gets of product. aspirations parity this product the the We cost better, We for Functionally, at

our consumers. take this will we eventually them talk So differentiation to physicians game and about to and

of her good. we We than So the so if but consumer. more we so want mindful be -- to to could, far, want pay but X, don't

Oren Livnat

that consumers have with mean there. to to you buy Okay. I Or rather guess guess to copay support, possible the And I the you does to to are tradeoffs I the on as all reimbursement do X work as question the pay willing managed side? you proper and/or beg think down important upfront end pricing it's to of frictionless get tiering than care? copay

Alfred Altomari

Oren. I questions. down come it's the to mean math, to going Tough

mean That's would. Yes. that? we card? do we copay That's it managed Sure, with copays. care obvious. one we to use willing Will would still get mean that, we prefer work I to to are So we a down X we X? But looking right? buy tough if You're trying $XX to the be yet. a it's versus, at. that's going for for compete consumer, or big $XX. me shock now. to could be but what a a say, down. That's buy they I But -- Don't with right know can't sticker X we

bridge or And deep general, we'd use -- don't understand not -- enough don't not decision. what need in we're coinsurance say copay to, buying would But that that. we a along would not But to to if discussions we're minds. cards, we're to our have permanent card a on So It's make copay got we're formulary, and with could plan it's in be good Sure. if I'm get Then in formulary? a you to to that. win in trending about math. the getting a hard the -- the we we copay but be That's to co-traveling the then if all -- loss, we've to willing think we to preferred. but

Oren Livnat

I If could on to just move Okay. actual side. commercial the

using I'm guess, another And their years. avoiding something replacement doctor. first to Nurx model? side, generate, And bespoke talking framework solution it anything -- this changed, you scripts, from under possible if that that's you when about a is been telemedicine originate like today, or curious if à can world patch is la stopping commercial Hims we is there did mention use? patients conversations. that The I program, I assume not Is that since you're or of these has started some safe about we're needing thinking prescription which guess, talked regulatory from sort On platform for to the the

Alfred Altomari

it. question your of yes, part we're second looking the is, at So

a through. a So still at first least but -- is have lot these noise not to of behooves a been the some world that's us But There's not might continue lot of our fascinated right going be volume, dialogues. the this emerging the lot There's heading, with we've it of They're cut. to now. where channels. world emerging of volume so

with I pays their patch mean, right another for solution script The first now, managed if the the solution. the see get falls it. the -- off, and one That's the go current patch replacement. is replacements, care we patch

go new woman's not back of got a script right. lot to to or a We get a think times, that's it dial So in.

pharma want we a a specialty offer So what could be okay, a you service is authorized that's possibly, her. organization we solution And effect. her we patch. where We a do to number that a get we'll and to she do in say, calls better through pharmacist

they wakes from a and script the next And day, she don't to think up for there. we get that. have there's a So patch us

we have -- call can verify that but phone don't we to down have can We get through script, her doctor vouch have have do me to the wrong, a chase to We a verify her, for we doctor. just to need don't it. her

the differentiate -- we service that we'll too. then and us, that's -- should a that and the really So and provide providers consumers

products do, in that on stronger world. about to So what's of cost and a think even we from and think the thing and first differentiation not feel against now older that goodwill foremost. it's these Oren, the be the in right perspective, right particularly for big and a do, products, we'll our us other especially it this I It feels going right competing with. it. It's just thing We helps to pretty

Oren Livnat

side, XXXX -- all thinking guess, product that Just if situation to into Or you need sampling? expense support is a Are more-the-merrier hands? and it's just the it's at I of fine big strike paid the worth a it that sampling prescriptions, between of people's you to you perhaps the, sampling is balancing may, on revenue real act with beyond a and get through thing. I obviously QX

Alfred Altomari

that were COVID a But get answer more had group earlier. of that our with the lot question the for in talks Dan's about until in to -- me doctor, COVID thought right? first commercial about I issue I mainstream. because even talked we front a I world, was our thought samples can We good

it, is, doctor a The thinking second hand that. the sample? box, And sample We the out were to So a I ratio touched by will question. is question once under doctors will doctor? And know patient that think we be a don't able will see take patients? a

was enough samples the patient old But hearing if there want the where get to out. to X, help yes, samples the from to and what the are pharmacist fallback important her getting doctors, months a Oren, if to the if the feel or and to a They X of $XX was are product. the when at -- $XX a copay, copays, system. and that successful the X to well, get X trying days, we're drug doctor So we like number's launch the her if were into we get we're

us we are reasons. guts originally little for -- sampling this I lot think bit our we're thought category in of telling than our a So a lighter may be

don't think role, arms again, getting launch that -- sampling We misinterpret the But our around as for it of doesn't a think does. and I play this. don't samples it's best. So wishing sampling a old-style we're dumping bunch of the

more think more targeted it's smarter and and than I more than that guided that.

sample you get I think the comes that, there. into then And post-COVID just that. Nurx. sampling us drug, right? There's is teaching the in, dial no So question about No They right?

it I way telemedicine -- there's don't So on that's if a platform go really that's think you telemedicine, and I the don't works. platform, no sampling. tele-pharmacy a

just you get So the drug.

final is that the together samples. to we're think going mix of dictate number that putting So I

as So past. quantity we as perspective samples role, play did will a necessary they not thought. maybe I like maybe They're the a bit the necessary, in but think once not in

Operator

is question Esther Janney. from next coming from Hong Our

Esther Hong

about launch that and to next Twirla's several in ebb wondering -- think about in precautions, restrictions ebb flow the event how the So COVID-XX event they to quarters. the over

to about should launched or quarter tactics third learned So that? of companies any launch who And we quarter? just second then in or how lessons this even think year from

Alfred Altomari

Esther. Thanks, Good questions. Yes.

in have mean a plant our be we still I Michigan. to the mindful we The drug have first right? manufacturing I of mean, one, risk, always

an get as can first shape. our we that's in We employer. good the manufactured. -- drug in we're to we So -- profile believe viewed essential say believe risk is We Michigan,

risk. But mind, alert my okay. on to want we're think thing I we you first the to So Esther. that That's

the meetings, a no have no assume sales tele-detailing. want learned. anticipate didn't telemarketing boards, peers this and now. That's what it build with of Let's to companies that right? could pharma reps ad These as again -- and skills force tools is my nation's locked adapt, down I've KOL We having tools that no

to get people scrambling vendors they're now So that. and like right

So We're need to be tele. ready. to we going all go

You that. should hear

a not national, do it sales needs be will to force ready a that. or sales to if that force launch can tele, a We XXX% be -- we national

buying the we're and the that so training And tools, everything we'll need.

I I've talk that this. that's didn't anticipate my to peers when learned, what Esther, that So

I build culture. think it's really important that we into that our

if or that. hope don't open it's need regionally at We not hope least we Now we open. partially

So we want move. to be able to adapt and

right and learned what these didn't So the and have retrofit skills, it's I've tools is hard training you if to organizations. sales

to with Amy other out the COVID from ahead built I chute, we're an of we our right what a learned. that this build of spent Welsh, going commercial just in luckily. just -- organization long CEOs launched that's leader came we And commercial mindset I time announced into So and leaders. the

that So side. have from we're really the can actually marketing Kimberly culture how and with to this, a into fortunate sales do our knowledge build perspective, of to Amy's

be want to be be interruption we're it. the on So for could bill to need right? situation could to this from a learn the because a business We able to It to talk with looking be of caught don't doctor, down It road snowstorm. a outage. reason, to some their do knock a power door never we not and be other could there

what that's So I've learned.

Esther Hong

willing understand to are guess doctors I sales just trying more anything better those telemed, you strategy, there's -- on doctors sales conversations? if to potentially first? they will able going strategy you to to you have So conversations? I'm switch respond virtual the Are your Or on to which the target are those there?

Alfred Altomari

have doctors the going They're hearing and in is, from a business right? in time boats the rising. Yes, all like on interruption ever than seeing as situation to quick see read these tactics what day, not running to because more think we office. their they We're office I market on, we're receptive we're

people interesting. going is like hard more to needed ability -- like to the get to sure it's it want we're And and the if to, to less. that I'm Esther, it way. there's way I or think it's We we So that isolate, target, them all,

at the there's presented striking. there's we Jersey When literally. some Our traditional practice near we on we doctor that to us analytics doctor. there, way business doctor doctors the We have lowest-decile Jersey, run So this. the have call to our ad, and the that had there, biggest to other know practices me not a person much influences hey, looked New who the all day got to one that re-decile in because was had practice practice, that on off called the targeted And and right got we to we we wouldn't that an team data job that XX in with New that smarter. say, blown right? work happens practice, of it's got and it's doctors We've would in in the

able targeting done So at we at what that we're and high-volume I to we've smarter think the tools in is we're -- disposal. be groups to going doctors a have practices use lot or there and all our the be

the give said the tools, give them of we right and rep -- the hire them profile give pivot. the let's training right reps right the them give right let's hardware, that let's can sign-ons, the Some let's right

a of an to that make we part to calls do also will let's able see too predominant day want call the I office-based plan. be them be call, not office-based like, We much. our go mean

able be to get Esther. eyeball-to-eyeball, need still they to So too,

I'm the some the that like going a in some We're enough we're data. between. fourth in enter can't see ready to early all figure don't know are see for that in partial either world. world doctors temporarily. on. So openings boats But It complete receptive. we more a don't sure patchwork complete We we we're or ready out. for seems for But rising the lockdown quarter. There we it be are can might

Operator

Jack question final is Cambrian from coming Our BioPharma. from today Fernandes [ph]

Unidentified Analyst

partnerships, of one go upon. to know had in Particularly curious overarching larger yourselves. was about question, acquisition. something you've be it shareholder with I and doing. considered how the term, really X-K work it this appreciate is about I commercial you discussions a you're future the long a touch partnering about is partner going you if quick of the But I you're essentially announced might lot this two the and them know mean base I don't want to today. approach I strategy to concerned a

Alfred Altomari

Jack. to work all for This is Thanks, shareholders. what's come Sure. to best again. Al do We

So I anything get judicious At open you'll doing see think that that this the shareholder of you always to point, very cash, think -- drives It's know value. you'll way to within our partnering. bones. we with us, we're is if we're it the

to trying efficient We we're leveraging We're on out, possible. to to as massive We're build pointed are this as people's a open make partnering, our partnering. you infrastructure. infrastructure not

said, that's Like, that build always value. believe right the or but I in approach Europe. what best the I that we're open ourselves We is we're we the to don't that discuss mean -- word. strategy believe is America. in executing believe really So very best we in we now, value. pride way would doing glad gain to I U.S. listen. the shareholder can on With flexible. anything we're the anytime so Europe Latin to in shareholder be being

additional U.S. the we partner but reach where coverage. best delighted want up as somebody with our sign give and economics to us additional because We're to use kind the of the delighted are, else that's We we're to in beachhead to U.S.

create continue to discussions. . Jack is forward, we and But not those believe, I path -- it's discussions, But shareholder have have to the either, those locked in path best value. the we So is stone

And on comes not situation what's to to for to and path, situation of here and it. looking along, it's do you we're we're right you. listen this an by think and empire a if some So Thank do we'll interesting basis. cost, build we're We'll trying to shareholders. -- the the we right efficiently. We're

Operator

over time back We've management like reached or further closing to floor questions. turn for to any allotted the for comments. I'd the

Alfred Altomari

Well, thank in, you, for thank and everybody, Great. you, operator. dialing

cash that Let me reiterating close company's pleased by the position. the with we're call

strong march of in continued I we call. heard that this fourth really on think with forward you've the We're year. Twirla quarter our launching to execution as pleased the

unprecedented product getting has the a milestone call. tonight marketplace, on brings on in any this their hope us hiring employees While this really and on to COVID we our our health business to pandemic heard you've safety not pace and We're remain ensure of interruptions, remotely having work caused challenges, I the process. achieve that

great people We continue to this in hire company.

quarter as onboard you've on quarter heard, in, steps, hire sales three. next force in of is we're quarter this and the to in the and Our sales calendar QX, bring managers

final -- sheet the are equipment, manufacture stages, also we're reflect Additionally, the on commercial little It's plan supported equipment by ramping I I'd of back must large-scale our situation. balance getting of important there, qualification that caught the our pre-COVID. continuing break support our up into sheet. was bit our activities with we then emphasize ahead of solid on the these I validation like that there. balance a it a and to all we a stage. say built to in how And do

approved of that. we our so Having an like destiny, product control us gives

by that For time, really the we're first excited opportunity.

us be remind to We you, virtually. asked just of many we'll questions York to Analyst see get into not, we'll XX. on you've mentioned, if of Day, the to you can Dennis September in we'll If As there, you personally. hosting and deeper New you be able see an some and hope

or meeting. virtual ready to meeting that in be we'll situation, there too, a pivot a to So live

the and to forward listening joining I and keeping Thank looking I'd first like be to you, you. you, everybody, for our for updated. thanks But forward hope safe and be well. on healthy. updating And we're call, thank closing, safe look everyone you in listening everybody thank to is and to call today. I and But us

Operator

That conclude teleconference. you. today's Thank does

today. You time, have day. thank participation may you disconnect your your lines and a this for wonderful We at

Agile Therapeutics (AGXRW) 11 May 202020 Q1 Earnings call transcript