EYPT - Earnings call transcript Q2 2020 | EyePoint Pharmaceuticals, Inc.

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Operator

Good morning. My name is Josh, and I’ll be your conference operator today. At this time, I would like to welcome everyone to the EyePoint Pharmaceuticals Second Quarter 2020 Financial Results Conference Call. There will be a question-and-answer session to follow at the completion of the prepared remarks. Please be advised that this call is being recorded at the company’s request. to Officer call of like Elston, to now Financial Chief EyePoint would turn over the George I Pharmaceuticals.

George Elston

Jones, a quarter discuss corporate Thank for you. me with Scientific Executive will Pharmaceuticals today to and announced Lurker, with developments. Chief Strategic our our Scott and Then Officer; for new joining all Nancy recent activities commercial results Scott on developments second EyePoint of begin Chief then that updates, us treatment commercial including will uveitis. on on is Officer; quarter recent And second the today’s EYP-XXXX alliance yesterday. Chief discuss conference With thank corporate will Officer. results. and XXXX review financial you I ImprimisRx Dr. comment Commercial President with Duker, and XXXX YUTIQXX Nancy for call commentary will and Jay months financial segment we our on six Dr. close recent Duker posterior made pipeline progress

We corporate President financial website, we the Vice commercial will release issued our will by press your well www.eyepointpharma.com. questions as Relations A Officer. Senior joined Paggiarino, can the on where up tab a Dr. Dario found and release in Chief this then operational be morning, be Medical detailing Earlier of we for as developments. copy results, and call open the the Investor

product Form financial Actual will remarks Private and of timelines, we and is report today I’ll plans important our materially clinical expectations, including Risk recent of annual section our that projections future. SEC differ the our with begin and statements various matters discussed in of Factors only. the Act a provisions these views and you which These filings most indicated forward-looking results we in the the in forward-looking the XX-K, Harbor those products under on Reform regulatory forward-looking by those of on Securities make our Any Before of represent today statements about various as our other make XXXX. include comments, and factors, future our statements potential may from candidates, may success and the Safe the prospects. SEC formal developments result constitute of that we statements Litigation with file for purposes the remind as

subsequent While we today. rely views we point statements our in these specifically Lurker, on Chief the to some these our do call statements Pharmaceuticals. turn any representing to forward-looking elect may should over now I you of as to will obligations to as update the Therefore, Executive date at future, disclaim so any Nancy not of views even forward-looking and EyePoint if Officer change. President

Nancy Lurker

you, George. Good and thank us. Thank you joining morning, for everyone,

and the job during pandemic. COVID-XX done business balance the team managing a Our great has sheet

our the put and physicians our EyePoint to and employees we’ve physicians. and while patients, that of DEXYCU forward level of colleagues priority, continue call safety and professionalism have pipeline despite accomplish of to commitment, delivered YUTIQ, we been produce and high pandemic. the what able very innovative the our R&D We our move on top I’m proud productivity as continue a drugs, to

ASC the at community, offices altered changes and quarter have the and U.S. we in have with during regulations those COVID-XX operations ocular surgical the encouraged at and stay orders ambulatory our centers operations of been approach normal regions resumption specialist were engaging While to uveitis see eased. disease home to were or

demand the products cataract May, cases encouraging to revenues by of customers and of $X.X and across and visits net for with valued to office These product ensure our are resumed physician as health improving on access late products. Supported and second for providing monitor beginning result, we are was needed continuing guidelines, both COVID-XX million, results the a million, call safety we continue U.S. which while reported $X.X customer revenue actively much and $XXX,XXX increased. to we net complying ocular YUTIQ to for $X.X surgeries million As total for DEXYCU in quarter. our

well and surgery hospitals use, alternative during believe to with to While ophthalmologists, to injectable we already expand cannot with will DEXYCU Yesterday, an will experience plus an an ASCs. to in FDA experienced known to the another that their for QX antibiotic efficacy be as we leverage ASCs exciting steroid they focused the of these that demand through we These approved months, declines company contains customers and prescribe existing joint using profile. combination alliance of the currently post-cataract return We of converting DEXYCU, and established ImprimisRx to to a early relationships organization, DEXYCU their customers acetonide, would patients. moxifloxacin, the Tri-Moxi, expand commercialization initially an we This month-over-month of physicians commercial States. especially addition EyePoint. product in and QX. increasing solid a trends toward announced of triamcinolone known infrastructure ideal the predict for compared new reach able and the established demand in respond may move as ImprimisRx case were injectable how both innovative using alliance centers partner patients, well we positioned their and to some are in injectable have cataract our treatment physicians coming ease its market. will with the to on pleased otherwise product ImprimisRx DEXYCU. in significant substantially surgery We surgery efforts are COVID-XX steroids of important the safety eyedrops like an see using United ImprimisRx a is in customer late established promotion products for QX the at is well believe commercial the ImprimisRx this

post-cataract as used compounded in an moxifloxacin, a used anti-inflammatory of antibiotic the to published which oedema for could offers Notice infections ketorolac, be such surgery, post-cataract surgery, often recently several non-steroidal to bulk availability and impact products, FDA often compounding. addition, list a of used approved In a Intent, prevent of pain and drugs the bulk

at further by Chief We with believe later that our Scott commercial or result, some these compounding the expect they and contain Officer Tri-Moxi take mutually distribution this color future, as rules effect, available be our call. And in should be large will will performance on a others such pharmacies. this compounded finalized these beneficial it, that like both the and important Jones, longer eyedrops be ImprimisRx As that drugs no alliance we companies. drugs for and sale in including point for widely Commercial provide partnership

focused sheet. balance managing Finally, on our we’ve remained

retinal degeneration transactions Durasert an and anti-VEGF for anticipated other sustained changes macular and have AMD. cost financing market anti-vascular a bioerodible current April with age-related it’s expectations we disease structural months in opportunities, the commercial retinal announced cash or for or factor With attractive diseases good and in approximately reductions or very our are been billion U.S. our our study believe in endothelial vorolanib, well the GLP, With as $XX molecule we business can our toxicology with growth potential schedule. fund laboratory billion treatment we over that alone. current our wet significant wet remains implemented, In technology to EYP-XXXXcombines our plan operating preclinical into $X global runway as possible practice expansion activities, as for potential XXXX. on sales or advanced pipeline and development, into our EYP-XXXX regard six

infections about eye to the significant the for technology. challenges, We migration failed avoid presents monthly providing their extended delivery delivery and further clinic in there including problems candidates need treatments their are of difficult as many with treatments ocular for for excited EYP-XXXX frequent, potential lives, drug due often drug and inflammation patients very for a for extended rest diseases to the have

patients’ pipeline X an Phase non-erodible Our a and candidate eyes has Chief thousands lead of products. a our exciting that EYP-XXXX, products advancement were to pipeline team with a And Duker excellent is efficacy the the in expansion Directors Officer wet development pleased technology through trials of a EyePoint. years an him to expertise of as product an our YUTIQ record Duker to under in our that areas Board and anti-VEGF of and We and for on has Duker growth important member an Dr. served therapy strategic disease Strategic now internal also Durasert Scientific the humans FDA turn to AMD pipeline. Jay with tested provide on to Dr. new the implants welcome as as welcome proven drug since safety signal opportunities additional previously track YUTIQXX, as evaluation. combining commentary leader I represents over our and will profile. retinal ophthalmology has well Dr. with been our over molecule to in honored our development demonstrated entrepreneur other space very oral believe the the renowned research as were we his our including delivering of vorolanib, with Durasert We call Jay? four bioerodible approved to XXXX. well

Dr. Jay Duker

is a Nancy, broad the despite has AMD disease Nancy as driven broad validated medications wet controlled relatively sustained on I remain commercial is of team and AMD. blindness. and joined short organization of morning families, of a of growth, of including future leading have duration burden in integrated in Thank FDA the long-term Durasert clinical technology This a necessitates our Board good which eye. class Durasert therapeutic EyePoint’s several of a approved variety debilitating an well since the progressive of the is fashion to used XXXX and you, of posterior potential a to to variety potential anti-VEGF Durasert of and primarily to these designed in healthcare our is in medications, Wet of application DEXYCU. system. eye. all. deliver medications to research indications, disease which segment technology, therefore the believed delivery due action development Verisome medications for providers that as for across release the the built the retinal technology I wide cause because patients, well-positioned is and both by a Directors back the

a of in potential an from FDA vorolanib, tyrosine trial X kinase two including demonstrated decreased prior our this Data As EYP-XXXX. orally as months oral observed were oral hepatobiliary in and system of vorolanib YUTIQ to the in sustained after our patients compared I’ll provide uses AMD portion recently human not established The products, for did visual longer six oral placebo. placebo. the vorolanib anti-VEGF anti-VEGF has require Ophthalmology approved dosing wet AMD systemic initiation an was conducted published gastrointestinal stopped in which group small non-inferiority in delivery Tyrogenex delivered vorolanib alternative, the efficacy to established for sustained-release own therapy. demonstrated trials treatment three burden intravitreal acuity to note of Vorolanib that has studied wet dose EYE-XXXX and levels of of molecule anti-VEGF to four first or treatment inhibitor trial British signals A TKI an compared in to time Journal of agent. injection technology, and in injection also the potential exciting each Phase a and as by Durasert prematurely delivery due signals. the toxicity is another oral

with parallel has indications development and of vein both and first to in wet for and Administration be oral of EYP-XXXX is the and represents compelling, the disease excipients or are filing regulatory differentiator We be non-erodible clinical shortly that critically also option no market treatment We has even additional at macular forward clinic Preclinical a treatments. dedicated opportunities anti-VEGF our I We believe and the via bioerodible the this for our posterior disruptive year, Durasert that safety comparable the Food zero has The deliver the in with exciting can product call for over as through substantially later during beneficial reduce X afterwards. we observed keeping new Drug the to vorolanib an delivery area with patients thousands for program, Scott? shown updated this or to along in YUTIQXX were clinical toxicities the bring edema vorolanib the systemic of and believe and of trial. order kinetics its construct Durasert is IND no retinopathy, expansion oral on future. believe into we these team issues of trial working EYP-XXXX it our assess new the program. forward may potential now which we to and construct. development prospects events Jones the improve demonstrated update. Durasert look bioerodible U.S. However, anti-VEGF have serious with licensing. patients and application from progress turn the in as adverse commercial Verisome In physicians. diabetic safety placing with potential forward to EyePoint for technology to-date. results with associated the this clinic. follow segment significant for the activity observed a commercial and to into to without ocular Phase you investigational drug product EYP-XXXX the look to potential locally the pipeline history no a observed the and EYP-XXXX, diabetic items technologies, anticipate into them risk also eye anticipate to drug important pursuing the We I’ll obstruction studies Scott promising retinal AMD administered Durasert technology that

Scott Jones

and you, Jay, Thank aboard. welcome

focus will converting immediately help the ImprimisRx beginning Nancy excitement DEXYCU begin very product and a on sales at our to and the purchasing inside manufacturing joint DEXYCU and steroid volumes. commercial Tri-Moxi for strong pleased we’re our priority combination from potential its forward the their delighted for to we belief DEXYCU DEXYCU growth team pricing, and grow will predefined The promotion bringing physicians a resources team team hope many transition driven and the positions accelerated DEXYCU. be to further our As team to top is replace have deploying incremental product the sales the adoption. will call, benefits the patients. we’re burdensome contracting. with teams, and in of advancement of mentioned specialists sales to market exceed previously shares attention They new our Tri-Moxi. for as commission shared regimen. and We success team EyePoint and receive and the on to eyedrop the growth, marketing and Imprimis their sales ImprimisRx complimentary of experienced customers, accelerate responsibility alliance while and ImprimisRx of This announce more to by DEXYCU working cataract that entitled to DEXYCU. retains the look markets for Together will its

Now ASCs the progress across uveitis the the specialists for resumption see quarter, were reopenings in and second our of operations we at regions own during pleased and to select country.

half yet full not many While back most capacity, capacity. are over are operating to at

the and government recommendations public of health and or elective healthcare CMS, for and low During of surgeries, COVID-XX. in agencies non-essential reopening resumption including quarter, systems stable the Center for with Medicare including authorities issued surgery, areas the the Medicaid of incidents Services, cataract

a how an We to physician that the pandemic This representatives the account While is and ordered for age June, from patients at limiting the in single visits X,XXX appreciated know regions the eyes. with with a be distributors though reopening duration purchased follow-up compares that month alone. from COVID-XX demand were of to therapeutic schedules frequent able decline not surgery DEXYCU, units subject reducing in delivers do face in result appreciable we not COVID-XX which steroid frequency resume regimens, demand managers the advanced treatment majority with state, and however, particularly in-person it considered an patient’s is are by resurgence now in-person customer orders. have key during month the our by of and varied phases. opening an more highest for DEXYCU respond extended over will occurring, face patients, having to as can second been It down note ultimately, cataract older clinics need units physicians in approximately company’s contact to thus of has XX% volume important was and in-person injection, to units XXXX DEXYCU are X,XXX and QX for higher of for poor QX. that COVID-XX. Customer touching, seen visit. risk treatment of yet eyedrop to represented in compliance, ASCs the visits

Data ongoing dropless Meeting option satisfaction, the and this use world steroids ASCRS efficacy and study survey ease of topical our more and use with to that marks satisfaction. at is of a were echoed retrospective Virtual priority. physician treatment DEXYCU of a giving product product the presented from becoming compared So, high real of feedback patient

and These forward will We volume-based execute continue virtually networks conversations being the and conducted additional agreements we in-person expand integrated to to also coming and drive on these for goal now conversations our months. patients. with hope securing access to in continue ASCs healthcare to are

purchased addition years. to visits patient to COVID-XX to product, micro eye, steroid affecting sustained provide to the steady retina opened on posterior hours versus the did during and for can was office treatment, down potentially Turning the overall due re-openings the physicians for units consistent pandemic, Customer partially course the COVID-XX company’s providing real in was day of patients in the from decreased of deliver QX its beginning office up remain some a uveitis in and segment distributors during by for visits reduction increase an demand of and during in the to see the the reduce XXX COVID-XX frequency positive XX continue strictions. consistent, YUTIQ benefit driven as COVID-XX units beginning feedback anti-inflammatory March, office YUTIQ three ability non-infectious during restrictions uveitis represented pandemic, office doses May. while specialist XX% The we YUTIQ due chronic patient in QX. to especially a control. by a approximately with to Physicians

engagements virtual on continue and uveitis advantages of are the community to commercial consisted the greater in-person YUTIQ Our efforts YUTIQ. educate of to

we’re improving all which and growth various YUTIQ YUTIQ these demand continues the continued team during have the products, regions will virtual including to customer easing opportunities of and return by both ASCRS study close, pandemic highlight COVID-XX patients the focused To its while [ph]. of restrictions surrounding procedures. advocacy. and These long-term on Argot seek encouraged in from in place Our the continued Phase of at medical depend for to have supportive on results medical quarter for the presentations the turned first X affairs meetings, anti-inflammatory reinforce

providers. physicians continue patients, We’re all health of with public the ensure to other and and situation healthcare associated apply actively employees, safety -- recommendations to monitoring the comply our

demand Given revenue the to unclear coming trajectory of project product difficult the periods. for the governmental and it’s and response, pandemic

continue will efforts forward when and our our need. our new ImprimisRx to and the surgery and products I demand move promoting should We to help bring And highly much to organization now needed dedication and to innovative through to virtually recognize in turn cataract second DEXYCU person in quarter will grow to awareness commercial our able exciting for call changing this and product. patients for financials. customer review partnership George efforts thank of I’d this daily a market. like George? their for the over

George Elston

Scott. you, now will our on on we release and issued our will was COVID-XX we capital preserving to I Throughout monitor Thank financial morning. continue that turn focused business. impact of press the in results this included to this have the pandemic the

to million $X.X months XXXX June management. prior months was June June announced June previously June XX, overall the with XXXX. million to for Operating to Non-operating in $X.X revenue Net totaled total as from decrease in DEXYCU, the XXXX compared for loss XX, million period, months to ended lower compared $X.XX months ended million, Net product XX, ended net net to costs revenue spending and XX, YUTIQ three net three net ended $X.X revenue million, three product of and for $X.X for due million $XXX,XXX XX, expense For from whereas YUTIQ. demand million was EyePoint’s $XX.X XX, XX, for $X.X expenses XX, June XXXX. a ended months months ended for XXXX, R&D three primarily $X.XX three million, interest XX, sales from for $XX.X three months the per the costs product $XX.X totaled net Net the centers at EyePoint’s million decreased or our totaled the customer practices and the $X.X XX, Net of at year product financials expense. XXXX, the corresponding of the compared our well for in from ended and by by generated revenue June three million distributors. purchases product quarter $XXX,XXX compared restructuring, loss XXXX months share reported per royalties or for Cash and and in represents XXXX. June distributors, marketing purchase represents surgery three collaborations by physician to $XXX,XXX, was ended prior million a revenue $XX.X ambulatory June XXXX, million year to as for XXXX the share, XXXX, cash quarter. $XX equivalents compared December $XX.X

COVID-XX research on given DEXYCU We expect along activities the in with YUTIQ the projected from across plant U.S. into company’s the sales, our of for related cash the confirm and that transactions XXXX, anticipated operating product inflows regions cash closures and collaboration financing various extent and our hand current licensing anticipated assumptions additional

Our enable for important careful and should FDA. completion catalysts, its the Tox of of EYP-XXXX positive Study IND some cash of with achieve the filing to namely us GLP the management

outlicensing products operator turn evaluate questions. and of delivery over the additional and technologies. We pursue commercial capital to opportunities ex-U.S. sources such as the our call to will for now for continue non-dilutive I

Operator

Thank & Laidlaw Instructions] you. Jen question I-Eh from Our Co. comes [Operator first with

You with your may proceed questions.

I-Eh Jen

ones here, the on the first have -- is Hey. questions. Good the that congrats terms the couple with morning and A Imprimis. quick of in for you thanks taking a deal

a sell we for how guys are and the, P&L at for how of product the in consider cost guess, you revenue the them should booking So I look would we you? terms the to

Nancy Lurker

you the question. This Thank Nancy. is Hi. for

I-Eh Jen

Okay.

Nancy Lurker

answer George question P&L. and then the the first me around cost let I’ll about the Let talk

of to with manage is done by our standpoint, currently contracting are but marketing. aspects born being is a in from -- continue materials, other all So costs that to responsibility the being all selling them supply them. manage We’ll cost also

force responsible will the any own we their for just training the force, Now the provide be tracking. distribution to to will We costs the, also and and will they field field the costs materials, internal continue fill obviously, they all manage marketing but that to related manage. continue and

the For to over that P&L, turn George. I’ll

George Elston

for Yeah. Hi, I-Eh Thanks in. dialing Jen. Good morning.

way is going I think think to the forward. this about

So just this agreement. obviously we signed

It’s no So still is expect way marketing. to in will this But it the come we’ll unchanged QX. in expense impact will and and there a is, as is to sales later product, costs come record obviously and commission book we Imprimis That’s own something revenue. activities any -- there about year. really the we so think associated in with the in

topline be will So by margin reflected the Difficulty] and gross [Technical

I-Eh Jen

look Great. back has terms That’s going potentially in given of of And is in versus that Okay. quarter some helpful. breakdown spikes. very could and the YUTIQ, but you of, next up sales most region question less the geographically second has uncertainties forward, already more region, the which is as the you infections to my or about at sort opened

potential quarters? of use a the potentially two mean, I sort for the guess, total way So, as of United or usage next, that I States the sales sort to assess in

Nancy Lurker

to to let answer the now one so Scott happen project trying of difficult COVID with region not but what’s just in that going that, by Yeah. going to going to be Look, happen with to right pandemic what’s I’m to comment. business and we’re going make it’s project have pandemic. the me

too we’re trying what get to I California to maybe by region and recently, have shutdowns, think, So, Southern obviously, could predict to just going not additional predict the elective might it’s in we’re right business now hard seeing of surgery happen. but not

So, Scott, want comment? you to

Scott Jones

for thanks the and I-Eh. question Sure

of certain the has Sun the related I think in relative what is we’ve it’s to COVID two much there outbreaks obviously, to in on and extent Belt an impact aspects. seen, been Coast. how separate an to areas, One West

is We’re now. And practices many of go patients able and how seeing the practices patients’ that to are impacting to into that willingness certainly see.

teaching of aren’t to back terms allowance were to is uveitis the teaching the hospitals patient aspect as in hospitals how difference the that. practice. sector, more the same volume second being our the they they’re kind teaching before. between completely patient are volume in and specialists many hospitals and of managing related uveitis In private Obviously, conservative and much of they’re of The

So is point, as well are being a seen patients playing treated of terms uveitis in number the that of and at that role this

I-Eh Jen

Okay. Great.

Nancy Lurker

for your comment. Thanks Yeah.

I-Eh Jen

you. Thank

Nancy Lurker

did uveitis, obviously, do So that that we Because just let reduction and me in impact surgeries with add, way, elective don’t see with we a does by me -- DEXYCU. there. doesn’t the like correction the not YUTIQ, slight the being it DEXYCU. saw let said, sales It YUTIQ

but a serious, the quite treatment certainly disease see is just treating that you so don’t YUTIQ in So, in space. procedures because is cataract that you reduction see the

I-Eh Jen

Imprimis, the current space into as various others? ASC Great. the the And maybe in question here us very well progress the the reach particular as you as in Okay. That’s their such -- ocular give give last helpful. idea terms in is sort of perhaps that, could of their and size of rep

Nancy Lurker

Yeah.

representatives have going a will then promote inside XX exact sales they So DEXYCU in disclose they not that have number. sales first also position that deployed and we’re to be and to

deploying. then press And have to work as Tri-Moxi annually. that they about release, our current is main be to to they’re of the that is the we in said, convert product that XXX,XXX So going going to sell force begin and field units they they’re Tri-Moxi

a targeting will get we is Now, execute percent base all at business do are nor they will the we to projecting that Tri-Moxi that but be eyedrops. steroid that will get all expect a converted, is post-cataract used thing nice steroid it triamcinolone, Tri-Moxi physicians they’re is antibiotic, using drug a surgery, steroid injecting to about as steroid The used are opposed for. and these injecting plus that again, converted, nor that implying we not to the in moxifloxacin

patients already for patients these believe familiar pandemic. injecting that with and have these So option is very in we this a ASCs good option, drugs which to doctors especially continue to and are and giving

I-Eh Jen

Great. very look on on and Okay. the updates forward That’s having deal XXXX. more your congrats seeing helpful and I to

Nancy Lurker

you. Thank

Operator

Our H.C. with Thank you. Yi Chen next question comes [Operator Wainwright. from Instructions]

with proceed your may You question.

Yi Chen

taking morning. for questions. you Good Thank my

inventory the of at First distributors? question levels YUTIQ is, observed changes have any and DEXYCU you

Nancy Lurker

I’m That’s not inventory that given going to not giving distributor we Scott generally, answer to were But our levels. policy. question. ask

are our do we However, now-- to are disclose notice, as customer starting demand levels. you

give what’s demand want revenues. good add should for the that you then, obviously, underlying you sense Scott, anything? reported to our a GAAP So products for do and these

Scott Jones

Thank you, Nancy.

contractual we’re is I that on the they’re inventory based our with managing normal their management think seeing their distributors what inventory and levels.

We demand management. uptick managing additional an were June number how inventory. and through where during to inventory customer level see on typically based before their are pretty the really in and the seen now distributors similar certain But that inventory month started days COVID, a they a haven’t of driving breakthrough of we’ve a inventory that’s obviously, of just to certainly

Yi Chen

Okay. Thank you.

Second reach? normal comment what many volume you of question could are Imprimis can the is, ASC and more at procedure ASCs how currently DEXYCU operating help percentage is on

Nancy Lurker

you Scott, I’ll let answer that.

Scott Jones

So I’m and question great that can give you I it’s not a -- Yi, it’s sure answer. blanket a

levels cataract accounts they’re to still that are point. volume. Sun at regions, increasing, pre-COVID to the volume. the back We this XX%, it then relates are of at but As example, kind their are XX% we some for XX% Belt it market, back to see of of see not on And pre-COVID others the that Those the country. this really depends region that of are

it place, depends as country account, they’re that on really well in. in and region of have they policies as the the So the particular procedures

Nancy Lurker

do. what about we the question expect could then And they Imprimis and

ASC force let you XX% downsize and to helpful. as penetrated we’ve Imprimis our me the we the when we even of know, pandemic, know market in particularly, reiterate, again, large XX force cams. the field the of me come So, of in our combined theirs, ability April, believe and have because DEXYCU between be not go we will so And we let of accounts, add very their just will number and ambulatory again, do surgery after field

We and force have XX well. as plus their in XX they’re inside have they adding sales

So, see add you DEXYCU we are of firepower, sales. on kind some hopeful impact when that we’ll that that

Yi Chen

going is improved last Thank second related question the comment you the the you. which trend it. please Got Could margin, in to on quarter. forward? My gross

Nancy Lurker

George. That’s Yeah.

George Elston

Yeah.

certainly performer a YUTIQ, by is it’s carry in obviously So I by strong margin. margin -- going higher the and gross QX to a I’m is DEXYCU, weighted which sorry, pretty

this that higher weighted of will the well. think be for as rest certainly year I

Yi Chen

you. Okay. Thank

Operator

you. Thank

next Our Andrew FBR. Riley comes D’Silva question B. with from

may You question. proceed your with

Andrew D’Silva

Thanks questions. taking morning. for Good my Yeah.

a Just quick ones. couple

as with operating some rec And should if gross collaboration if gross things going or Just would will there taking margins a here right Icon -- forward, what rev really necessarily understand recognizing and a I’m not or guess be well we the sales? the on royalty? How will -- about just sales, but recognizing DEXYCU I’m to be nuances any, impact an think Haro. because, as your on now net they’re sales know of you you net find you’re basis, I over trying margin

Nancy Lurker

George?

George Elston

I Good that. question. take George. can morning. Good This Nancy, is

still is, customer. it version revenues with shipped be and pointed short is field, EyePoint distributors book their so unchanged. that will and -- working controls product through all in the our Nancy will as the we specific remains So Haro it’s are we ad our that out, partner

distributors, where -- as control bundling, can have still our will remain we We pricing, orders et cetera. historically. for in unchanged. come largely franchise DEXYCU we margin to in we recognize the will the So should And percentage revenue

by And will so, for where Haro’s marketing expense recorded will participation you’ll be and it under the commission. a costs, because selling us see as be

Andrew D’Silva

Okay. range you that what And that? can could like that accurately of give modeled we a look so can us more

George Elston

molecule sharing yet. public back guided -- that but come saying, and we’re and not XX% it’s to it’s on we’re sure the not update you from specific. not and co-promotion them we space, in haven’t that, the to we depending disclosed may anywhere look your for across at now if on be yet that I’m range, agreement. typical XX% haven’t these But but agreements going We in the -- The that are somewhere

Andrew D’Silva

overlap And enough. number think, Imprimis standpoint, overlap or Okay. was physicians discuss Fair fairly like recently. regional with you that touched ambulatory to then can around crossover somewhere just the your what the legacy organizations? between surgery How that X,XXX team close a I was the and two from physicians? centers or have you

Nancy Lurker

than say a they’ve force a Yeah. and they’ve broader imagine do. let than been we got Andy, a business the on can of not do. this, much we’re They’ve more but again, at you lot established that market They’ve larger that disclose. got longer. liberty information me field And got base we to reach

is So disclose suffice accounts that what to have than we’re larger it we to we the not have number say overlap, we that. of and know the that, they their going percent and reach that

Andrew D’Silva

I assume give And place taking should me you be can Would pass-through on there And disruption Okay. just on to would pandemic. extension? that an they it your a thoughts of update be a years an a of fair got Is status, obviously, still the with what to maybe due to you talks place two-year it? extension there top back, whole know thing couple the five of years. a lot moved on getting take

Nancy Lurker

say pass-through in taking industry quite me we answer been going in terms a working and side, let that, -- around of Scott most question, with effort our are fact, been an leadership has taken role I’m working role frankly, that Scott very real just ophthalmology So let extension terms the of that. leading in active the but also on here in to a potential in active of and Scott leading

Scott, to want add you do anything? So,

Scott Jones

Sure. for question, Andy. Thanks

really So separate right three there projects on going now. is

in relating what’s health the the The means extending Basically that time the public emergency. the during just health public called of is stop for to emergency clock period terms pass-through. tolling first

is we the of -- there potentially of package. like -- So currently the introduced that’s been stimulus next that legislation be will part believe part

kind with these years. different others other go still five the of seeking long-term -- for mechanism longer along asking a the That’s for again, -- we’re years still payment seeking a a in then from on working to still many something to similar extension working we’re still on. of the community, Secondly, we’re drugs. three ophthalmology extension the And to

So those related pressing again, me, projects, the the the to of most is of pass-through, excuse health kind public are the term longer because emergency. because of but extension

we it the part stimulus I moving think, so, will know of quickly we that again, as believe, be may package. pretty is how And

Andrew D’Silva

actually antibody benefit opinion just there the that for just with question to outside an XXXX your benefit or it to market that of expecting from efficacy MAB last on question just just as candidate benefits And me relates Great. is Okay. in would you’re is and well or signal through are the adherence or adherence? come this the then anti-VEGF relative largest investors, the as get fragments I

Nancy Lurker

Okay.

answer, For that as have Officer. to Chief you Duker Scientific question I’m -- Strategy our going Dr. know our new

Jay? So,

Jay Duker

over possible certainly have TKIs benefit. an benefit we our it’s don’t Well, that being the but efficacy anticipate that fabs, may

we two that here are there think I deliver on. can issues

kinetics. is order your The first

efficacy is that wet really injection about also work And and a an that VEGF anti-VEGF more. the period it’s the often a efficacy ultimately to blocking the single over at the data at is for -- time with will time you’ll visual for sweet cares blocking opposed where a is similar acuity about I VEGF possible think us. especially a visual thing mediated medications to what what side is potentially go of that’s delivering should diseases. there about doctor be what through is most. acuity long of as certainly of course, length we the in AMD. ligand, medication funny between cares level, anti-VEGF studies, least if and of by But, when you’re measure care very set But effects A these receptor, and that classes patient the a equal spot

efficacious As injection. for deliver amount we think we can drug six months of single an with a

do We we anticipating to will what’s be visual our of least length think at the acuity And improved so not market can think on now. of superior data, we’re time as while well. action we

Andrew D’Silva

right makes luck I’ll Good to of your think going offline. that relative but It there new partner Alimera the trial EYLEA, now ILUVIEN with will is another me be Yeah. kind day about Interesting. clinical that doing take conversation. forward?

Dr. Jay Duker

Thank you.

Nancy Lurker

Andy. Thank you,

Operator

you. Thank

Flanders from with comes question Guggenheim. next Dana Our

proceed with questions. You your may

Dana Flanders

so And the call addressed second question, is drug? marketing COVID moving been I’m we you there But the XXXX in still much Thank this Nancy of lot the how two or then very my expect at are these with confident positive you on pieces on in how late, have apologies the co-promote, should time to all start remarks. kind of the the And asked sales I prepared take them questions. impact Great. that, with questions if for curious, just DEXYCU the you’ve know Thank kind see just DEXYCU, Imprimis experience joining and changed and certainly launch gained is the for you’ve it would timing from going the product impact now over on the of is the from a up Imprimis year on how get XXXX? and the a to expect of potential growth the when and running and you much and you. into view the to just your launch. trained to DEXYCU sales force, to or medium-term them

Nancy Lurker

Yeah. joining. Hi, Dana. And for thanks

Difficulty] So let me [Technical

George Elston

may we Is else everyone Nancy. still Well, lost have on.

Scott Jones

Yes.

Dr. Jay Duker

Yeah.

still We’re here.

George Elston

might time get to So wait speed, be new we’ll Nancy, talk up come But in team on can give moment onboarding her Imprimis while Scott we that and a like of the rep to the for back. the the a to to point helpful? maybe you

Scott Jones

Yeah. Absolutely.

So we training different they in put have programs already extensive the we’re Obviously, brand together it’s ways. actually kicked different and a space. starting than initiation in because off the new yesterday, kind a cataract to of project little training this of the background rep

making all be So really the on on that completely speed and of the up DEXYCU aspects sure going of is focus insertion DEXYCU. to to they’re

So months. We that exact that out we’ll and on the be and see will while to one definitely be it’s it month an product whether hard somewhere they an impact on answer two the going be take in certainly in expect based quarters, that the trained it’s to promoting give coming fully you in month next or will at do range.

George Elston

confirming of Nancy’s Hi. back. just I’m

your so is Dana, regarding get, question Okay. We’ll DEXYCU. George on this

with franchise So a really begins it April organization. decision restructure manage the the COVID to the our burn, that’s toward cash made just an -- commercial was produce in because we when DEXYCU organization to making and to for of eye

to making cetera. et keep poised, of pharmacies, more is the this office sales that distance on because with that was very especially visits, from patients force nicely business, part of have which it think so focused drive other does side COVID, this opportunity we to And

with lot base customer we our that is capability both to it’s investing are them. not upside ground our we’re more from in that It’s really with coming nice collaboration with EyePoint, really so Imprimis plus what’s early. importantly nice And about XX we’re covering a for -- so for massively salespeople rapid and footprint and the as And an established expanding a XX infrastructure companies. deal

is guided resurgence specific and places that, so not a the on to we haven’t is there up still we’re in different we of And sure early country happen what’s opening call if going the talked in DEXYCU virus. revenue, the

And we’re in decent we see except taking June. did so, see approach demand a and wait

Nancy Lurker

of I’m Obviously, beauty world. virtual this the sorry, it’s folks.

back completely now. dropped. I’m on But call my So

George Elston

right. All

I that but Dana, do was -- think Nancy, helpful? answered we have you that

Dana Flanders

Yeah. was very No. you. helpful. Thank That

George Elston

Great. Yeah.

Operator

you. Thank

George Elston

else, Dana. Nothing

Thanks. Great. Thank Okay. you. Appreciate the call.

Operator

questions call any showing not any over I’m further to the further now Lurker And turn remarks. back this time. at I to for Nancy like would

Nancy Lurker

see from things everyone the headed our you excited further today. very current So of for partnership thank impact and joining pandemic. barring about and enthused remain where we ImprimisRX We with call our trajectory the any

enjoy pleased your progress on investors. hard you Thank day. of The so we’re However, made. to behalf and do been we’ve that the again, with has very working continue will team and

Operator

today’s this Thank call. conference gentlemen, for Thank participating. and you. Ladies concludes you

now may disconnect. You

EyePoint Pharmaceuticals (EYPT) 5 Aug 202020 Q2 Earnings call transcript