ATNX - Earnings call transcript Q2 2020

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Operator

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Athenex, Incorporated Second Quarter 2020 Earnings Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. is conference this note, being recorded. Please now your host, would like Advisors. to to over conference the Michael turn I Wood LifeSci with Thank begin. you, you may

Michael Wood

call quarter provides and as reviewing business the morning, thank for for half as our Good the results second you as well the first update an conference company financial on and Athenex's joining today of also on the earlier this wire archived XXXX. of the website. website. crossed company's results And will the news the this A Athenex's on replay is be release, available call detailing morning

future conference During of specific events, or the course business, described which the encourage you making filings from We in the be differ statements. about XXXX to with projections statements forward-looking today's and factors actual results future may review identify cause events the call, regarding year to company anticipated the forward-looking milestones those materially and beyond. SEC, fiscal statements will clinical in financial, the that or and including past company's

over the go Sze, session. Senior Financial Oncology. during turn Cook, to ahead. You website With Medical Commercial Officer; Mr. at company's Officer; sec.gov Chief Dr. Officer; can Chief that, Investor Lau, the Mr. Chief Randoll Johnson of Q&A EDGAR Yordon, morning, call the VP the comments. of SEC database company's Johnson available Relations section the questions Chief to Dr. athenex.com. are introductory find answer Rudolf joined or Global This Executive Officer; we by on Operating Kwan, Johnson, Jeff Timothy at They'll filings be I'll the for all please

Johnson Y.N. Lau

Hello and Thank welcome. you.

very a been productive year has XXXX at far, Athenex. So

head both medicines. which make could important we of oral ointment variable to and Tirbanibulin advancements products, We and in believe be our two continue paclitaxel,

giving of pipeline, a We are sheet, the and we including the strengthen value Orascovery to platform. and continue Athenex completing to commercialization chain, stage our our as supply balance the invest infrastructure in us additional maximize company. positioning biopharmaceutical commercial And flexibility further our especially

we NDA accepted Tirbanibulin announcement, be and Regarding to paclitaxel, as plan by did with we been same approach filling official FDA. the the will ointment has an oral for once the picking the make

obviously are and on these both a forward and to execution our excellent clinical products. here by conducted work further teams update We the We pleased of regulatory the look with providing soon.

putting paclitaxel team launch. oral key commercial Our place successful is all for in the elements

Our we paclitaxel opportunities cancer. in into expands make the goal success breast preciously Cook, that this other will exist be said, on details our indication is on Mr. chemotherapy to on of initiative have in hope our that further choice compelling provide call. for we later as cancer. to initial oral build the commercial metastatic in of And marketing this head Tim

of ongoing have provide strong oral the to to invest in is balance will more launch flexibility of product will details as activities through Use development providing We additional Rudolf Dr. proceeds management life commercial the of additional paclitaxel balance R&D and well sheet pipeline. include cycle potential important infrastructure. manufacturing the this pipeline as financial our strengthened financings. our value paclitaxel of sheet order maximize in oral and on shortly. Having the Kwan the further in

product year-over-year. product performing revenue business the $XX.X This in and XX% to increase reported sales today, an million we of our sales is quarter, represents Our pharma record from second quarterly date. specialty in highest

to schedule. chain Chief clinical, importantly, supply will our full our now proceed percentage our overview over for Rudolf Medical manufacturing supply continue sales product I that will XXXX result mid-teen this and $XX.X our Chongqing of million call at in turn operational, year have XXXX. guidance a confident Rudolf? facilities clinical we're needs. to Kwan Dunkirk our up least Very our year-over-year raising remains for in from As programs. inventory growth the to on sufficient and building our an regulatory, We're we provide Office, to are Dr. commercial and

Rudolf Kwan

The Good FDA ointment CMC process process I'm ointment morning, We review that clinical on is and well. everyone. very schedule. regulatory note pleased is paclitaxel. and progress the on our Tirbanibulin proceeding of by Tirbanibulin inspecting site oral

And have no is for XXX actinic XXth. Form this December keratosis PDUFA The been so topical far, issued. date product

we way drugs filing process and used. is oral encequidar of are acceptance is upon of the For to the provide paclitaxel application. the intend FDA how regulatory oncology ongoing, update an COVID-XX and changing

many last Network NCCN, where in formulation. infusion-based paclitaxel had if active to mentioned oncolytics, patients a home. from also have their oncology to believe used a cornerstones will widely drug, National treatment combination and switching available tumor believe We prefer We there is a in indicated of cancer provide issued our patients paclitaxel an to oral in chemotherapy various own and is Chemotherapy paclitaxel of safety as to that quarter, need an bring patients important as oral very receive that, one As possible. approved, the to to or Cancer goal therapies cancer types and the version alternative we the remains guidelines treatments. who oral Comprehensive encourage of treatment for many is important backbone agent, oral an

management new a well studies process combination various as cycle expansion the oral of indications. of We including label for are exploring and number paclitaxel, as therapies in life

oral of to overall as development encouraging in the of highlights continue they paclitaxel. from to rate Program our II soon ASCOXX Scientific further tolerated expect very Phase front tumor Virtual There in disease has We paclitaxel paclitaxel oral study presentation XX.X%, in unmet angiosarcoma. XX.X%, the broad drugs been unresectable this oral treat our showed reduction The in we and paclitaxel XXX% of A and high stable ongoing Drug receiving this FDA-approved genuinely rate we respectively. rare, at Europe. finalized, to patients and is size, partial oral responses, on for have have well are complete clinical XX data There responses, a evaluable patients XX we May. in All Orphan are utility treatment. announcements. interim angiosarcoma experienced this need make the important granted an disease XX% data benefit was medical been cutaneous U.S. The further this for the aggressive and were in potential been from Designation population. and recent no seeing healthy and study predominantly a As in be

as industry, have clinical resources in For in our of are earlier-stage trials suspensions as address we diverted our pandemic. majority as temporary peers health product candidates, the slowed to our like the experienced well enrollment the care

our to the Tim remain call I Tim? commercial turn over Cook the however, Our now anticipated product largely update. the COVID-XX. candidates, for line later-stage for time unaffected will by

Timothy Cook

Rudolf number schedule. group. on are are approval. quarter, you, preparations that that for for we corporate the lead, and underway priority stage. oral payers progressing account advanced is MSL have is head is directors who in for customers Thank have lead as on our Last paclitaxel sales. call good team our we we launch team prepared Recruitment will an added ensure soon as this efforts well quarter our still our enter our FDA to of It one to the hired Hiring morning, as Commercial everyone. field at as and

respect both list. detailing preparing environment territory to completed We to target virtual place promotion, alignments are physician have have and promotion adopted our and have the to and in-person in-person new launch. our constructed in for tactics COVID we With our

Additionally, reps, to members virtual liaisons, in of science flexibility. detailing medical and the place team are with us systems for additional sales marketing other provide

of and to prescribers XX% then a Our upon in-house plan of the physicians. of reps is highest remaining call approval still XX% to cover hire salespeople to XX the territory handful on

we changing. potential and launch will team managing pharmacists patient hired Additionally, support be oncology side QX. will of a nurses, be nurse to be patient provide education, on paclitaxel targeting has practitioners, effects. and These starts, that practice in an Oral focused educators who is employ will exciting on new nurse the staff to

We III our benefits study, a response Phase superior also rate as lower and survivor have as in neuropathy. well shown

clinical felt data. is encouraging clinical mostly Our the opportunity The further the feedback are have that by used clinical results driven by the is compelling. team market to we from and U.S. experts excited

market oral in represents approximately U.S. or the annually will triple hormone negative. are OC mostly research patients who who be breast are paclitaxel Our XX,XXX patients prescribed This cancer shows that positive, for negative

We also cancer, used is And after therapy. endocrine chemotherapy metastatic and know CDKX/X single-agent breast in chemotherapy mostly that is preferred.

virtual booth June Living managed a we together an On and ways very about prospects. was media virtual metastatic a digital XXth and booth online we So the number patients leading organization. at its metastatic XXth, This social facing digital provides had to at the that to program cancer participated Breast can help. cancer number increase friends efficacy conference and application. cancer social Beyond metastatic program the by in a The and to isolation a sponsored breast the commercial are enthusiastic we and visited breast cancer Athenex in tool conference, presence one promote media Cancer, impressions. targets of company's conference, list create booth patients the of with a breast breast

virtual oncolytics is at they demand commercial levels. of to to of X% keeping oral ahead patients are continued and by before One monitor to there XX% in XX% that is pre-COVID in-person. is observation continue the COVID-XX, landscape outreach increase and oncology impacted where interesting trending and and favorably are of cancer were now for COVID-XX XX% the details in We that number note is total mix But back the home.

the Now I'll Yordon, COO. to call over turn our Jeff

Jeffrey M. Yordon

Tim. you, Thank

me you also existing with Let an supply infrastructure give commercial chain and and on current developments the update our business. on

you is as strategy, know, oncology company build integrated. vertically an is to that Our

what in our our taken investing manufacturing approach model. have and resilience very be proactive adding We believe commercial we business to thoughtful and to to infrastructure,

that of studies supply all importance value, and we launch clinical of our in capturing importantly, maximum are chain more our our the We proprietary paclitaxel. products. this prepared confident are launch We of once the for oral recognize elements

this on in call, to said As have that resulted the last challenges have a COVID-XX. from handle position we stronger the us puts

where for able trials. Our we launch and paclitaxel, Taiho is resumed which for to is clinical product also manufacture and supply March facility oral in from in the raw operations Chongqing, material planned

commence on facility to Our new year. is and track larger this API later operations also

On to could XXXB we our dedicate the As while because have has the secondary plan us which capacity. is Dunkirk, manufacturing Dunkirk allow same been a to in to cost. This material our substitute same increase to freely, allow products. raw which facility XXXB constrained our of business, of supplier, would the our manufacturing us limited and part high-quality the backup, maintaining

as Additionally, the we at injectable manufacture well products also facility products in our proprietary as to the plan future.

shortage As we for million. of FDA that drugs list. ketorolac, result increase a product are treat patients include highest that rate our to significant ability will certain and reported of have depend due as here azithromycin, $XX.X in sales to been specialty hospitalized increase products midazolam, These revenue used COVID-XX Johnson was This to the demand Future obviously our a sales infections. product are with piperacillin/tazobactam. which COVID ever supply mentioned, and on quarterly mainly of on increased

our we Pharmaceutical decent SKUs XX Given record, track markets we XX and markets products are capitalize Athenex Solution position to XX on with a well SKUs. division and these the Pharma currently opportunities. six products, Athenex believe in

We the will discuss to will the now year. continue Randoll turn I this call to new introduce financials. products over to

Randoll Sze

the of experienced Thank last year-over-year. due new increase totaled of product million with COVID-XX in you, $XX.X as of significantly, increased same increased specialty sales customers. $XX.X used from second year, XXXX. and totaled expenses million products in $XX.X for period June API compensations, loss of existing in in increased for XX% at of did expenses expenses as the to the to increase we as revenue, for quarter year. ended loan $XX to related Cost product the period our senior We termination line, million last compared in We sales in sales $XX.X second for increased the in million compared sales APS in Revenue the due demand $XX.X facility. was compared Cost continue the orders the the treat line compared million XXXX. costs, This EBIT to large three specialty $XX.X quarter to well for of or note, to an of with to the quarter not million, purchases nonrecurring product our this similar increase the period XXXX, totaled same R&D as increase recognized primarily obtaining patients. products primarily $XX in the production last XX, from operations million million period same second customers decreased as an XX% drug second million months an an licensing Company Jeff. costs from a and preclinical and the of SG&A we nature same incur below the to $XX regulatory despite fixed secured in productive period year. $X.X same in increase costs. to Of million incur quarter. R&D-related

is QX or XXXX was $X.XX result loss $XX.X attributable QX or compared share in diluted to a million, share net $XX $X.XX As foregoing, diluted million per SG&A per in with XXXX.

onetime debt diluted loss XXXX attributable in $XX.X the net expenses Athenex share. $X.XX $X.X million the QX million, per Excluding was extinguishment of or to

remainder the In kicks terms of as well year-to-date XXXX. versus of at are of account the that previously sales, our to we XXXX, as sales year-over-year This full for we the million growth in our guidance outlook mid-single-digit the from raising growth year. performance percentage communicated least our $XX.X product mid-teens into for year

that treat improve to are product products used we Our continue patients. mix, COVID to

these not as recurring do revenues in nature. we view So

product As partnership guidance or not provide revenue on a our We reminder, milestone only guidance sales. payments. do includes

entered cash million, credit in of of June XX, of million with financial borrow million. a senior allow cash five tranches agreement XXXX, and of As There to also the cash Athenex Oaktree, On $XX us with June two XXth, and restricted $XXX briefly. date XXXX. to transactions cover which I and short-term $XX.X maturity XX, to of June want million had up we are equivalents $XXX.X investments

and XXXX, to in tranche under [indiscernible]. the The outstanding million first of agreement going $XXX $XX.X June of credit to the due down million repay was include prior loans XX, part proceeds with fees

million tranches for subject to certain tax of regulatory be our time, and borrowing totaling available commercial $XXX will achievement forward milestones. time additional from In to

the finally capital paclitaxel cash, restricted single-digit announced our net and our Second equivalents, operating to upon royalty and Healthcare made this to capital we approval cash our funding us will after oral cash for FDA entered Sagard exchange this and investments activities generated fund of Based structure June all, for we will a oral cancer. interest receive of on operations XXXX, with payment. Oaktree a Royalty Sagard This plan, available expect agreement of operating breast into on metastatic morning Sagard we total non-diluted $XX have with revenue of worldwide million be enable of XX, that agreed mid- us provides current paclitaxel financing as into our Partners. upon capital, with agreement treatment In together from cash, by of a sales XXXX.

to including financial results the to details, additional the XX, be well please months closing Oaktree turn XX-Q filed Johnson I remarks. as to six the June ended and for call Sagard as now For Form with XXXX, refer SEC. will the details on our back for transaction, the

Johnson Y.N. Lau

Randoll. you, Thank

recent the more open we highlight. questions, are to announcements call want I two Before there to

oncology pharma strong pharma approvals biotech. Robert and of Dr. The is Board brings first care to he of is the and Spiegel overseeing applications. our was Officer large of appointment team XX successful and a very and Robert that very Directors. there, a experienced successful Spiegel years his XX more Dr. has join We NDA and over Medical he Schering-Plough at the track the executive, for innovation Chief include sharing industry Board. record new He responsibilities and welcome development agreed honored drug at than previously to are

him wish deep down. Board also Koh service We and Mr. our express John appreciation well for and contributions his on steps he wanted our to to as

role. look Bair member and General want established this I already every Administration. team since of key as we been we contributions been the Second, announced the her business involved in the forward has to and congratulate She Teresa to expanded continued Senior of aspect Athenex promotion has herself Teresa Vice to recently a of has here. with Teresa President, XXXX. and Counsel in

terms to the solid is quarter phase in environment teams want their ongoing advanced I challenging our strong The exceptionally clinical by now This what execution sales in of an CMC, exceeds preclinical, commercial [indiscernible], everyone. Finally, of supply-chain expectations. has in infrastructure commercial and COVID-XX. our and thank regulatory, and teams also for despite was a for been work

We go call the questions. will to now open ahead. please Operator, up

Operator

[Operator Instructions].

with Karnauskas Robyn Securities. from is Truist question first Our

Robyn Karnauskas

needs was us taking were FDA a you question use of talk you use get push there unmet oral surprises you when for will formulary a need maybe do were give you there COVID, actually minute means get have is, that if pills by And do Thank the any is expected? for thanks maybe you basis, lot certain using then or hospital to my the in us such the how what for as a think hospitals communities think increased second there's done, what that's question. you know and the to file. you drugs once uptake immediate launched? But a new they be steps on some first, real color the or going general about sense guys, certain in drug for oral of steps that just wondering, first, comment you but have what give regarding approval, you're on not I towards are, Hi being I just an to can you. during

Johnson Y.N. Lau

Thank you.

two have We questions.

I Thank answer question, can Tim your first your think question. Rudolf can you. and answer second

Rudolf Kwan

not as commenting the of Hey corporate we Robyn, acceptance follow filing announcing -- policy on of filing. the we the our say, you are

lower that Pazdur, proving when provider we are recently, will has from role Dr. regarding, I patients the oncology what the FDA have they health to FDA home anti-cancer the announced FDA, keeping been would publicly the on that and anticipating questions Your at in surprises follow any major I focusing recently, FDA the are comment announcing has what also they director, be the they COVID-XX burden. keeping play service that safe into treatment, and oral a is -- because

the very encouraging public those So announcements are FDA. from

surprises for. to looking surprises, be be the any you if upside will anticipate, second question? Tim, would those we'll address the I So want

Timothy Cook

Certainly. Thanks, the question. Robyn, for

The Act. that's first a engage Preapproval gaining Exchange step in program engage access population to through the to place the is That's us really allows approval. in the of to terms Information decision-makers payers prior that

payer and quickly likely begin so And comments, the I in to we in that, currently product prepared cover then information that my team, mentioned quarter. payers engaging they're with having will as the recruiting approval. here opening so They this after we're that anticipate them place

practice, large from then step and to able second cases business will themselves. are majority many community-based of really is these private they practices. The our The dispense in come

And be consulting And be in that then will again, last practices gain be actually particular those those we etcetera. step access there's approval would corporate in some large offices. would very in that, through requirements engaging of so IDNs. upon their And already our formulary, place pharmacy, the formulary the little began with etcetera. heads immediately them directors account And to of through

like payers that pretty target environment profile treatment cancer, product the an the we feel and product out. we important that feedback as we've primary three now. based from that engaged that of especially the the our we're and we've in breast in this So see on They have covered shared. areas getting And the laid metastatic is encouraging in data right we're

Robyn Karnauskas

so Great, thank you much.

Operator

Our next with RBC. from MacKay Kennen question comes

Kennen MacKay

morning the thanks and good questions. Hi, for taking

a the way about timelines about least with help in end of to acceptance about month that until and if filing thinking that can your for the filing. release know the it's associated Is had of by accepted, was at this the on sort was sort this that you an least, submitted being previously correct press I on issued comment at XX-day you're should to this hear guidance was that the submission. with the with So of not this? we that going QX, think but on QX track, track my of noted Oraxol math

Johnson Y.N. Lau

Rudolf?

Rudolf Kwan

Right.

timing from I for right the to about I point. we you'll As think time when comment the it'll don't FDA acceptance hear this of on hear filing. expectation said, us of a from be me the at

hear. and tuned stay So you'll

Kennen MacKay

again, our period within be we should all that of for breath the acceptance that any maybe there about, holding of I that here and of XX-day sort notice of sort stoppages further filing the context think thinking would really be I'm Are sort not any clock thinking helpful? about, we're

Rudolf Kwan

keep Absolutely. your to The point is holding you breath.

the been whether absolutely or of announce rule You're accepted. filing days. The is XX are not. what general that the They FDA will right. the file about -- we And will time that is accepted that the we announce has is

Johnson Y.N. Lau

comment have think to we I when And is reply you very firm it have FDA. according some from in the our our give good color to timelines. -- is that policy Kennen, that executing more only but -- we been we

that giving question but think address I indications completely, in already. you So a some in not a way your way

Kennen MacKay

again, the that with got Okay, back to filings interpret that, prior track, line going on that's on just the it. in we should release And the are guidance? press track

Johnson Y.N. Lau

not with not recapture information provided any We with guidance. affirm and our guidance any that are our hit or we with staying we have

Kennen MacKay

very on Alright, congrats thank you the progress. much. And

Johnson Y.N. Lau

Thank you.

Operator

DeGeeter with next Our Kevin Oppenheimer. question comes from

Kevin DeGeeter

any make inform ratios particular decisions peer of a will to to out that structure kind what's or biotech for Hey here balance you cap at been here. in about the of handle guess, go as direction. taking debt call sort to regulatory, you about bit on guys, of development that potential potentially look taking help you're of I go When sort what question. to the taking comparable just into similar stage with do maybe trying thanks amount talk other here that sort sheet little debt, good further on not significant a your debt draws, there leverage of a And thinks you'll I'm or as benchmark potentially Listen, you're not future one are able a companies the to parameters going of looked whether sort that different as and companies level of on decision? have here.

Johnson Y.N. Lau

Randoll?

Randoll Sze

been that process evaluating color opportunity guess, Yes, we maybe bit these completed. to can the the see Yes. for Kevin, your think different financing of recent more we've financings you, question. instruments. what of kinds we as a give Thank I actually two to I throughout you always

pretty annum. X% a of earlier on actually And And that, thing cash regard entered of senior comment completed to net note two like other the for it could be is pretty sales They any And And financings of distress of actually because a know, transactions create turndown. very as this sort large that that so with the at financial amount two looking company. and example. what the are in that minimum a the of risk just to put financing we financing done, this is, actually would take total We're these saying to you company have secure revenue is I talking and to primarily interest we these significant Oaktree targets And you first covenant release the senior an risk this saying putting earlier coupon liquidity is Just achieve. interesting this we the back looking I'm it with that able a the of believe that is week, structure should as rate, the let's combination coming financial outflow, range on that reason minimum today, at stack is the limited actually And covenant we're Oraxol because per think at why actually issuer out we're friendly. pretty that it's into are I'm of we modest. look actually are actually the terms we've of debt to favorable we're believe press that us. why it's of we are revenue neither at looking I if again about payment. XX% fixed the

it is, some numbers. just So the at don't ratio we look of the way of the we at look leverage

the It's very is I the to that Oaktree the Sagard. partner both would to we couple to evaluate be financing be have are able because we just that months, want partner. capital excited or with want we to a In last financing them throughout with. partnering for we don't view say think thing to I options and think as I financial of I obviously, the highlight one process, the avenues, associated way

as the I process, throughout that in think actually same they share demonstrated the to and the they vision us assets. believe truly company, our they

long-term partner. business So

your that question. hopefully, addresses So

Kevin DeGeeter

Got it [indiscernible].

little perhaps you to -- talk So maybe potentially have can data you on different bit of the in about to breast in off build with oral maybe look a you additional may that this cancer. on year the is for the a paclitaxel note, second studies half kick Rudolf, strong and

combination to particularly have further various the of company potential be interest that clinical paclitaxel. oral the could studies You to expand of utility

Rudolf Kwan

Absolutely, Kevin.

Now into that life we process company the I'm for the on turning how products, of management in know terms track team are can and regulatory cycle on we strategy. focusing help a both our

as used. in basically, So to the have And we communicate hear seeing And we out the very standard from IV are where mapping widely the that look forward we're in you combination more detail. past also, all in been out, much along paclitaxel focusing will combination area. got in tap map directions immunotherapy me we of additional indications essence, we is we into care to, in once therapies the that

articulating now we time that that So that Tim's once to you will we hear a lot from be out. and will have look team, map into we supporting have us the

through up rigorous see the the assessment, at return we'll will very market go with You investment a that thoughtful Look and on process. plan. a come very

Kevin DeGeeter

Great, Rudolf. Appreciate that.

Johnson Y.N. Lau

me bit debt. for of with provide your to let also feedback a regard question Kevin, little

this is both a And at part that that we at are I that one believe investors is financing we overhead. we dilutive did and that way, can good can we the non-dilutive do stage that have consider that think financing. look some

Assuming that we doing. what to undervalued, actually that is our believe appropriate are conduct very actually I we equity think it be will

that non-dilutive of on path. we be along did fact you this based to why that So best options, how many I that's we the the hope elected this that we nature was to we have reason will stakeholders, our appreciate that of pursue and arriving and actually financing can decision the this believe And interest conclusion. are

Kevin DeGeeter

So I Johnson, context thank helpful. is the that you. appreciate actual

Johnson Y.N. Lau

you. thank Yeah,

Operator

[Operator Instructions].

question Messer Needham. with Chad is next Our from

Chad Messer

be later looming for Very just for if taking think here morning. my on for mean you they some the this could where potential year from with or all date you through horizon? other the appreciate that went good was as awareness thanks, product leaders opinion PDUFA have we you could key Tim activities either on that another this big, you're I of you need are being doing with I comment anecdotally question. really as think and Great, you figures I this if soon. where do product, to assigned doctors prelaunch awareness, wondering a times exciting Thanks any surveys, awareness aware with are and are hopefully, numbers or be think this you the you one, that guys is Oraxol.

Timothy Cook

Thanks we of Athenex question. factors awareness by of have critical this lot gain the to we quite Chad. approval make of a high our of -- success the there's that that it's time for Thanks, spent product frankly. Yes, one focusing sure time and

so they something overall profile, the incomprehensible taxane see the neuropathy, and awareness in that time. increased survival. we've them of since efficacy use impressed to period we to long but And it we've And toxicity common. in the round, can manageable. with the experts response round the for did breast dramatically XXX global. San of use are overall are the They're impressed is interviews our them neuropathies cancer, being seen first And which really decrease themes the and with some we Antonio, clinical one-on-one significant They second pretty And without a unique just they U.S., completed. profiles discussions of from with our conducted of rates, most in the that them

And the earlier board, up positive. survey a element our oral very about we've awareness year, So did, broader seen zero, both marketplace. the a been the as from paclitaxel as go of overall And feedback do the to well really XX% actually has across this to we product, Athenex.

So answers made the at we feel we when ahead with physicians then their overall this of that bit real on where a perception still we like a experts, question. point in launch, of in real seen improvement hope And across awareness. drill your product. clinical quite progress I particularly, are that the time, we've we've down

Chad Messer

helpful. very It does and thank you. Very,

Operator

with Jen Company. Yale from & is question Laidlaw next Our

Yale Jen

for questions. and morning the Good thanks taking

had the bit The expenses first R&D question is housekeeping the quarters. prior second quarter -- from on a that jumped was little

should quarterly year consider that that is will onetime just of the So second the for this a benchmark thing? be remaining of or we half a

Randoll Sze

the Yes, you your rest would as question. benchmark say QX a the of safe can year. you, I Yale for thank the use think number Yes, for That's I assumption. a

Yale Jen

this the with Okay, obviously, a quarter, a be for while. sales, great. is long to given not us also product great second COVID-XX while, And news. the And that seems if a in

for there's you half level of or the that You you talk first guided estimate get roughly feel more that each roughly to conservative a additional year, teen sales, about quarter mid-double-digit the back things this my second that is of to about? measurement is growth quarter that can

Randoll Sze

to us performance have on basis the seem the guidance our year. call, guidance was, earlier is we in the And actually, July. for guidance for outlook of to we reason the gave we looked year-to-date the gave I account out Yes, obviously, numbers also guess, at out why the the give and forward that the remainder that

as mentioned, the opportunities However, are nature. I in some nonrecurring are say they I would COVID-related of

So we a sales your mid-teen provide will come for back update an Obviously, product for to now, assumption our But number. growth an the be set be want upside we in estimate to and there November. expectation full-year year-over-year able fair if will is right. of surprise,

Yale Jen

guys little last about China? to you instance, great. you And or talk the world, paclitaxel of a in Okay, in for in the want got here the question is oral bit maybe thanks. focus for little about know Europe is it a other that, I the the U.S. Could for talk part Maybe strategy I is the filing.

Johnson Y.N. Lau

Rudolf?

Rudolf Kwan

so eye course, Europe far focus of of we is in is the and major Yale, market. rightly U.S. of the course an keeping And are the you especially, on our mentioned as Yes. rest a world.

we as reporting So have the we activity legislation Xiangxue China, -- have there initiated and our as we discussing we are and strategy. this China certainly, are European be regarding hear them licensing the with soon with finalized in actively will area. soon plans we In being

apply. are communicate have our would new regulations, finalized we exploit we will we China can to the that strategy want once exciting there with in developments anywhere partner. we think I expect But FDA, to certainly, our and certainly

Yale Jen

Okay, great and lot. [indiscernible]. a Thanks

Operator

end would back remarks. for reached of turn I the have to the gentlemen, Lau the Dr. closing and session. Ladies we call question-and-answer like to

Johnson Y.N. Lau

you, us for Thank joining morning. everyone, this

to updates contact quarterly pleased our soon. execution call forward with further joining for further morning. any and with We this are look Please earnings us very Bye-bye. the you have quarter this providing you us thank if questions. in Again, you

Operator

conference. concludes for This you. your participation. Thank today's you Thank

this at You time. your may lines disconnect

Athenex (ATNXQ) 9 Aug 202020 Q2 Earnings call transcript