AGRX - Earnings call transcript Q1 2022

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Operator

Good afternoon, and welcome to the Agile Therapeutics’ First Quarter 2022 Financial Results Conference Call. Please note, today's event is being recorded. I would now like to turn the conference over to Matt Riley, Head of Investors Relations.

Matt Riley

Hello, everyone. And welcome to today’s conference call to discuss our first quarter 2022 financial results and corporate update.

prospects me based that statements on financial and let include call concerning start, outlook statements future. forward-looking current financial we remind today’s you will our Before the for expectations, including

outlook future and the our growth the expectations expectation well. including financial quarter XXXX, operational of Our management’s for for as our performance, regarding second

Relations of that The prospects, our that business discussed prescribing risk today’s forward-looking Please refer today statements. risks section information our other not statements among concerning our strategy, contraceptive to hormonal market, affect no required represent or may promises and Our for for not by actual the forward-looking of and law. information and not statements are to our SEC, are the Investor our to filings website factors and with plans, company. guarantees combined except sufficient as decisions. judgment update which involve intended obligation purposes results Such assessment from on the differ as We may the of the statements for may results undertake expectations. promotional regarding is in the and cause available uncertainties call through

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

call our to Dennis. open we questions. the the will now prepared turn over remarks, I Following call to will your

Dennis Reilly

position near our update sales first In 'XX the realized guidance. quarter business this our and and our X.X is cash Thank the I over all company. financial the you, product on 'XX to update I first joining review call call for quarter plan. middle hand range will our finance Al an to XXXX then of of which on net afternoon. Matt. the And you for we areas performance thank will plans million, us of an provide key our revenue then on of for the

Accordingly, consists charges had which we of costs inventory $X.X manufacturing product the during We levels our closely contract quarter during cost XXXX and to remain to our the structure to obsolescence of sold totaled the our of and revise Twirla on no related working avoiding indirect for direct years Corium, and with focused supplier oversupply. meet demands and quarter. manufacturer Our our managing million, revenues are 'XX first application contract under of customers, and the we while first minimums of Twirla the the beyond, supply agreement. the for of

in $XX.X QX fourth XXXX. the to XXXX. Our operating $XX.X million expenses operating of of million. from of quarter guidance Within $XX.X We and XX.X million down from in our expense were the communicated April million XX

making continue to focus on right investments We discipline to the growth. strategic approach encourage to spending

in We spending operating to the experienced partnerships growing while continue our than anticipate plan optimize engaged agreements. first implementing to spending on seeking impactful in what and other future of lower those by expenses in we XXXX. While Based we plan, be of believe this our support of quarter Twirla, areas to reductions operations. focus targeting XXXX quarterly be to in

loss a share of XXXX. $X of or a in XXXX not the way with first million plan can We're a that used net closed voluntarily is quarter which team savings examining operations of January result approximately in our estimated For with be be to $XX.X $XX.X to that awarded the compromise grow sensible a compared in million or our to comparable of were has areas general a management example, for and per forego corporate per loss that We Twirla. in other $X.XX bonuses $XXX,XXX for our performance reduced annual XXXX XXXX, to will share, out that decided will be for the net of purposes. period

XXXX. capital March Twirla. debt XX, a of burn support of registered working recorded from $X.X New as down update, and January. a quarter we In in cash the 'XX the X.XX growth reflects a during we December the cash XXXX, million cash we continue a of in first in our with proceeds of Offset the of to and for in quarter. $XX.X options our single with and pay explore $X of XX, QX on to million by million cash decrease institutional Jersey equivalents direct operating of preferred Perceptive offering million of cost, million focused equivalents from of of XXXX, April sale investor. receivable $X.X stock which was As The Financing cash to compared Advisors cash financing had hand healthcare net our added

Part on reducing therefore we and Perceptive. our is with to discussed make call $XX to debt to payment leverage our $X plan for raise compliance back our relief. add Advisors further is additional payment facility company the of quarter's Part principle down to another plan currently under finance funds further In X to ability in last Perceptive, regain NASDAQ. three 'XX, plans on parts. million. financial XXXX have will coverage. we one, In As facility to tied no to We January X, additional we the company our Perceptive for This on Perceptive debt exchange million exchange focused million the capital. paid our not debt in to in second quarter with relief with worked

sector. X, our additional in goal been positive. additional better markets to finance taken cash put position acknowledge believe of that previously us We've steps in NASDAQ in that As with notified been will turn we our we To the that with NASDAQ reported, minimum which requirements. compliance Part capital unpredictable the to are their flow company. and out were transparent We raise a being capital we market have necessary and in capital. stock purpose, recently require the general the bid price compliance to achieve will by in of regain have especially we we have that we

and our flow recently flexible and to to business become to the Our further grow time Al to established, is evaluate the designed us to partnership will all plan ATM burn now our do opportunities including options plan continue positive. the that. cash a shorten equity to remain while to plan available an to on accelerate path you. to business remain reducing with revenue development various exactly we to We the profitability. goal committed provide to offerings, help finance Al, over company, update and

Al Altomari

follow you Thank you, thank story. everyone for Dennis, us and to continue today our and joining

we build momentum believe quarter fourth for saw to referenced of we the XXXX our and in that we quarter the Twirla call, earnings On XXXX, carry we XXXX. into belief momentum that began first

Twirla, to on As areas. saw consistent and trend expect throughout meaningful demonstrating quarter double-digit April we all our key prescription performance continue data strong XXXX first we was and announced for growth where This growth the third see in XX, XXXX. consecutive we XXXX, quarter this

provide encouraged early the the believe with these initiatives. XXXX fourth we're quarter Additionally, quarter business to XXXX. the on now like of we third of continued the that in quarter growth growth started each you key Beginning we're introduced momentum to a of in contributing to in is stages update seeing of three brief the three see we XXXX, momentum second XXXX. we the I'd and on call plan part demand and steady

First, with partnership Afaxys. our

health their purchasing we including and XXXX, of through January in the has non-retail centers reminder group to with Afaxys a which services student Afaxys primarily launched our a partnership over and channel. Pharma university co-promotion potential college access accounts, organization, Parenthood In network. to As Planned which provide XX,XXX

the partnership, to that business. see During and provides May channel to And the growth the from is we're channel XXXX, of have on beginning and believe this into non-retail positive Afaxys you contributions initiating graph the we of the we The results to believe mobilizing our impact quarter here first drive we ramp to and XXXX. throughout see focused starting as non into XXXX. insight Afaxys continues retail on April

California. of the state focus component continue to on second The is plan our of to

contraceptives, California States, one-third with patch existing As largest the from market U.S. the roughly previously Medicaid has of in United market the well as highlighted, largest program the Medicaid. for coming as contraceptive

quarter of in and results [indiscernible] For the surprised reasons. of seeing we pleasantly are these two XXXX, adoption with beginning we're we state far, for awareness in the Thus first reasons, the California. began prioritizing

First, prescribers in the as Twirla Twirla in an market team We TV, in to California. amplified uptick and direct spending. on Twirla Connected an also initiative we're CTV. share these known in are a Last seeing uptick in attributable general consumer by results targeted California, existing believe and sales also digital media commercial both our to

deploy XX that CTV quarter into and we commercial XXXX, fourth the our the a old, with end and that announced on for doctors commercial market Twirla. XXXX, call women prompting with the in patch potentially patients On of targeted, Twirla. contraceptive March to coverage new we our play years the for efficient objective At highly target the commercial XX of have in in states after strong focus large market of

week one not the market skipping twice ad. are only a efficiently month data consumers frequency through that little majority the the a over While our per significant month, the commercials to that in approximately been targeted and are exposed first the a suggests of for ad viewers of being the at

building execute quarter plan those We interested momentum the upon it the first for XXXX and in demographics, of we our through channel into to focus is YouTube target available XXXX. XXXX the ad [indiscernible] and on For viewing Twirla's who are to on established continue in now

commercial a the activated to quarter throughout of of CTV contribute a to demand [persons] three our very to each XXXX. launching of and XXXX we first the these with the expect at As each in end reminder, continue quarter became truly

me briefly talk ACOG. now let about So

presentation and touch up open in pharmacovigilance San annual that year meeting at want I we the first was scientific of for our the held call Diego. Twirla's XXXX clinic on Q&A, recent marketing of post to ACOG Before

welcome pandemic we nation's present Twirla contraceptive SAEs, California, VTE, and we trial. general. of be the the opportunity in reports of and personally adverse year thromboembolism and thrilled or which and to serious product. This the the in market safety about and that for data profiles saw prescribers reports our to was first were clinical leaders live in excited biggest first started the two I firsthand since the I interact For of physicians with thought venous consistent the events Twirla was that secure or received these with launch, meeting our reported the was is ACOG no

to have data quarter two XXXX the advancement evidenced we prescriber provide further summary, prescription our approximately fourth prescription data the proof seeing the on we of We impact from to during of first growing fourth plan, the to we the in to consistently a and continue As our now so the XXXX from gain XX% XXX growing growth. prescribers healthy are XXXX growth to demand all growth and prescribers of the quarter in the with to had we is roughly end first by new the brand. a strong a period. for report we face which points base reminder, of our far country cumulative of that consecutive that on expect our and plan solid speak having Twirla grew the on to a in and second good end currently build another of Based present count quarterly each trends week believe quarter our business now post prescription face and opportunity a delivering. In data quarter business and positive around have marketing physicians that will XXXX quarter quarter

important We ask analysts business. forward covering We'd line like our the grow moving that also may of to part for give our now to Q&A, open of any transform or explore to to our an options questions. you Operator, all our opportunity plan believe strategic the

Operator

question Instructions] H.C. Livnat [Operator Your from first at Oren comes Wainwright.

Oren Livnat

I'm few. to for What see you the small looks really non-retail not on a graph that. Thanks that's there. school if interesting, have first not. that show that you like, trend volume can it or time as That's effects, I albeit sure growing,

a questions. have couple I so And

month not or First on steady, year business kind a should on you And it'll from center]? basis? sort that consistent do of have be expect economics Or a we the more business? is to bolus for seem what be have saw in grower your that substantially just like going retail or if and couple we or now of last a I'm hope with we Afaxys that forward, week orders relationship or does from of for business week formalized different of launch huge all, ups. [one to a see steady curious will lumpy month you, follow like early then

Al Altomari

first the is this time Yes, we're Al. putting It’s in public.

So dots. its of hopefully next I a couple think

see to caused data last about data First you you big is prescription of on if the algorithms and all, Xnd way we we the remember call. May when this water, little But it, prescription a were when a back talking that alluded and that crazy. get the of and year what

see So of smidgen kind in Planned products we you as Afaxys a got were that a it came and hopefully in for an wakeup state you getting way. Oren the without and order you one it us, delighted That a an it not a a start the then county call bought for we May came it. call a of see just get and to by day, take ongoing was on of in, can lot we basis, was big a order state, that organization single and from Parenthood, appreciation

activity without know So it. we so month against every much put or

channel. we make pricing, going and to So products Medicaid to so to organizations, marketing the and we in weren't available county XD, that XD roughly pricing. our state going We're we're XXXB

that Parenthood, like hospitals to buy. smidgen some buy you we little We So a accounts think bump, we January, see how about couple in of in we a after Afaxys. about of business almost some start in relationship, some hopefully we a saying business. question announced Planned getting going with is hospital March, started are to a started little orders. earnest And A And have. how but in many then our this bit businesses your that nothing

lot accounts, going state And of organizations. Parenthood a a forward. on that my in So couple a Planned script mentioned seeing I couple more these the we're are volume

retail April to a past, that march was you, data on the channel kind at I super this preview channel, will really on up. think I So were [gossip] want retail look on what non meaningful both got channels that this to graph, for the going exists look tell we our -- us. I of a emphasize forward March, at retail lining month channel, And

we're So channel, channel, in purple April. the little channels, And in those that grow is going from bullish bought to forward. this our on that going growth see you'll pretty big deep substantially non-retail

even in, they that sounds data orders, of is just stick we week, on a us. to That could starting a lumpy, we're it's see don't So to wish, question Afaxys this. place around business you just see that we I small tell steady in this your ahead about some I every having big lumpy, for orders, have it come place flow yet.

we're So lumpy. it's to even and going as for leave of us, it’s -- think

best you the doing, think can we of that we're I show both communicate So show you business channels. the like this way is to kind you

have think in room. start and I reporting to And Jason's we might this separately. Dennis the

It's basically comes is it's money not about, that not there of channel, we're they for was quite but good. big customer, we this product profitable get the are discount. these it's pretty in yet. pricing, -- the make If But description us. it So which economics really a XXXB a great, that non-GPO from substantial,

GPO true we customer that yet. facts gets a bigger as So haven't discount, a revealed

pretty but but to substantial, but emphasize it's profitable. want I So, profitable,

about it's not out the profitable are have And We off mean, get pretty so TRX see, margin on to as lot curve on business on in a and for bending cycles. business you start got to could and what putting cycles, we're I We talk cycles. of throw we're that a paid cash there, excited. paid get doing. we for we based we

to a we to in we sheets it's jumping their going January, out starting came February is kind I light up, nucleus So we going going. slow see was of had a [indiscernible] And us nice May and popped -- forward. market bit cycles mean, March, great. soft in still little seeing and looks be of did. The I'm for all to April is of as little

it out, going to get I'll it. right channels, it So trying we both business. figure But to communicate we'll you. to so it's a think going face heads lumpy, forward, were When we could we're these I now our grow around

Oren Livnat

cost moment, have with you California? not focus being totally I consciousness sort And exclusively cost necessarily understand. just on if the California. on California Not at prioritizing or I'm the focused consciousness Are territory. require Okay. or of you sure are concurrent other you,

Al Altomari

at Now, been business are the this for from a across his out -- to to drives incentive cost mean, what whole what important an the make make. think spend I looking company. we've sales of right we're the understand park, our we what's I kind kind losing of while, spend to really for

we're Salesforce aren't our look they're we've on hold. at while, making not money. They've a be and productive, So been to saying, looking got put meaning added territories

in looking consumer general, We we CTV in we're states. in at our California, have a only And then with room footprint, spend footprint. down looking mentioned spend, G&A our Texas, is we're our e-commerce, Florida, York, California, putting but that and decent now, in Illinois. we're sales me double California, sales So and the right New at before [indiscernible] spent five

consumer states spending that's, for we're across the those down. downing so we're not our double nation money double So

hit California, footprint, consumer and -- spend. getting double pretty Salesforce, its we're down So good with a

So but having opportunity we're have we're exclusive, an the not not to -- exclusive.

Oren Livnat

then time. certainly that from you clearly the something for taking opportunities or moment. resource given just are much partnership market I’m you are you're BD mentioned hiding the And so facing you're lastly, that constraints And conditions. at current looking at, the sorry clearly Upfront,

terms is but mean, about, So you're as I company I'm on transaction? just and far a like make of for or of everything selling, would curious, That situation? buying, as, sense that there specific type the is targets, thinking table your far just a merging as just in philosophically, something current as specific yours

Al Altomari

[indiscernible]. question first your to answer The Sure.

and would probably I not been I anybody tables mean not broader all saying the the is take, think true of themselves. So the sector the state

to looking is the our do clearly, what table. revenue mean, and we're on our down it's So burn significantly. to or take accelerate I all

talked got the force, some we're doesn't down product do other in when We've the is sales have room areas, thing, areas. potentially can the co-promote the ways So there load, even ACOG, one of taking way the efficient so also the with about, to marketing we and and people. we that costs lighten an G&A then

critical. burn happen. a growing that afraid and strategic not or We're that either. of our If mission revenue our reducing can move was So is, there's

ultimately, we're cost the on lighten burning of everything's will. and/or reducing requirements the you laser top Oren same but structure the focused So line on money, if our

in it's table. So the all

Operator

at like to no – time. remarks. call the I [Operator further apologize Al closing Al turn questions I Instructions] would There to this -- are do Altomari back for

Al Altomari

know did too we ago, I long not our [indiscernible] with year-end.

-- So we and our in statement. very be descriptive tried to press

everybody to like have today our couldn't We get from disclose in we good statement, able a that's that receive NASDAQ. for letter press thank we joining a our scripts we I So and but were bit of us little news did on not.

we're back us. that big that Letting described to that's again that's in plan. his in was off we minimum of important table, requirement. part on comments, compliance the bid Dennis as And us really a our know And the -- price also

forward. move we So

direction, a would So say. step in I the that's right

that news, fourth Beyond I consecutive to report demand growth. today’s of a expect in call. wanted a to things currently reiterate couple quarter We

about the that quarter. We've quarter to the So right second is think for you we're seen signaling second we now roughly half strong.

So we'd the demand earlier. bit a get obviously little data

put it about with quarter of can growth, of a a growth, another and I we're are to as think that of you which year solid year growth. So quarter, our up strong really deliver fourth confident we

is good And team that, doing Amy us and kicking her so in. the that which about we're really tells excited really work

the be on in and less going talked OpEx, Dennis to So we're about we expect, quarter. XXXX also money first burning burned we quarterly

and up burn that So and set OpEx top-line the our direction. to we're is our growing, trying other company in going the

retail our to we've becoming it's retail right wake lose in. proud sight a that the channel, that singularly larger think to Oren’s non-retail business. profitable that's it's we're think core. business. see of Afaxys big again, most we our business business. We deliver. asked identified is at we to the I it the not of it's we the us. That's want an to good mean, biggest that footprint, very volume. in question, we're was the of expect is starting augmenting, So winning But retail we to be to we're we've partnership other And That's state Then is up. it The the position California, to business replacing are that data market see a important starting me, are we and the part there And it. important us, the five got We're question big we bullish, I me then question to idea. got, there's of think of Oren’s that don't winning important partnership think the we've think about also the states

we states, smartly we our beauty So the can the of it business want we X% states we to it. like think, approximately in. want those volume And the a marketing efforts of leverage bring that's CTV, to it's we those could XXX% guide we win put our very where in can targeted area, and that. And

that is So his have forward if his structure and to like is I'm for the Dennis as company the flow we year Dennis take updates that a mentioned cash we're based as see is we to more. And our of strategies believe can lot Dennis we quarter financing executing where the nicely to work want our Twirla what I and growing, ultimately giving the keep like expense setting in continue with company time, healthy following which first out second to comments. described a we to we're our 'XX. this brand progress. in same on even we determined Like the seems sheets plans And at quarter the control, on we to growing. But going think and up work coming lot you positive, great the we good feel on hands -- can We brand excited, we're look future place and we our what company. the and on

I you again. other, these good on each So of track polls appreciate to are top know night keeping I our business of and everybody. thanks

Operator

today's This call. concludes

disconnect. may now You

Agile Therapeutics (AGXRW) 13 May 222022 Q1 Earnings call transcript