AERI - Earnings call transcript Q2 2021 | Aerie Pharmaceuticals Inc

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Operator

Good afternoon. Thank you for standing by, and welcome to the Aerie Pharmaceuticals Second Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. Today’s conference call will be recorded. pleasure Investor the Relations, my Aerie’s over now of Director Ami is to floor turn to It Bavishi. Please go ahead, Ami.

Ami Bavishi

being Good today Casey Aerie’s Hollander, Aerie’s Thank us. Kopczynski, President and Officer; John Staten, Today’s operator. afternoon, replay Scientific press Research Officer; Officer; be LaRocca, live also you Aerie’s Aerie’s call thank you, David Chief Operating Chief for Tom With Counsel; will Mitro, us and Chris and Aerie’s release. are website Aerie’s and Chairman as our Anido, Officer. Interim Financial Chief Chief is Vince Chief Executive it and our joining investors.aeriepharma.com webcast Development Officer; on General indicated and in for available

These of On the forward-looking our of make expenses United associated statements we Now plans regarding for revenue observations this performance, and including timing, in forward-looking prospects collaboration also call, our Japan per statements in bottle. in observations ongoing They and our regarding for statements, cost trials. regarding will statements certain forecasts, future and financial COVID-XX pandemic impacts operating operating measures. will the the with and of and net including financial Rhopressa and expectations Europe. will and include our potential States, our Rocklatan collaboration commercialization clinical and include a success, observations non-GAAP

associated candidates candidates. with requesting, approvals product regulatory from long our strategies products maintaining, and obtaining progress or we regarding product discuss Additionally, will agencies of regarding products and business these

and management of and Finally, the statements related based to of we statements future as other beliefs These liquidity are will our events. on today. financial address expectations

the information, tomorrow. to obligation that or our revise and XX-Q otherwise. factors today’s events, described as in as press result as should whether a our no from forward-looking of read file risk We materially note Our actual we SEC. update uncertainties differ results expect statements our future in with the assume risks new or the well filings release carefully included expectations. may to Please Investors

discuss non-GAAP certain addition, this In adjusted we’ll measures. financial call, or during

these For relations measures, press the With please relating a including of posted reconciliation will Investor that, the our directly Vince. to today’s additional measures I release, disclosures website. call over non-GAAP to which on comparable section most the is GAAP see financial to turn

Vince Anido

Ami, thanks us for afternoon, good Hi, and everybody. joining Thanks today.

have cover today, our second a we’re with to results, on growing strategy. global We quarter perspective continued of things number and pipeline going that our additional progress our including

our do at CFO. our very start, Finance, to the Interim we company welcome with Chris you last the day who has want of since end was been however, just Chris XXXX his has may Rubino, with been July. Rich worked Before I Staten, as closely remember very, named who of VP

we so Chris call. the do to And welcome

XXXX, a QX franchise the of at performance very, in our a very year. QX recorded market quarters, we which of this into amounted wholesaler a increase units had considering think unit in And quarter wholesalers, solid to that versus very growth glaucoma had and quarter itself the in as Again, that’s prescriptions forward the of grew franchise to our was solid glaucoma basis important a terms over for of compare is XXXX I the sales typically represents QX through QX volumes strongest are in XXX,XXX the quarter market move generated Our environment. of what that we for revenues X.X%. XX% fourth our at quarter in consistent we It Actually, COVID year the COVID, States. only we record with note United fourth performance of is XXXX. XXXX. of second in the the XXXX when XX% Despite last is of fourth the XXXX in impact QX

to prescriptions by there’s again that’s increased our And much Now, give from tough, of where weekly over QX really them wholesale published XXXX slide wholesale incomplete of at described. Unfortunately, in you even complete to or volumes we our when to like entire an I picture. you more I market why provide out at when XXXX, our time, When happening. look of we we the get picture what’s terms rates information first just – retail. understand slide in weekly a shipments while add kind period frustration you and we of a did look decks, in decks of the our provides up a with numbers XX%. that kind it’s which the the a you comparing – the quarter growth just certainly longer that And corporate

volumes to the of second to expect half We first of continue on impact industry to continues decline. year over the the the half increase in the COVID-XX provided

to Tom As very to trend terms Mitro positively. a prescriptions minutes IQVIA sales will of out pharmacies, in and our in few recent discuss continue volumes

Our second up million $XX.X or and of year. XX% compared QX over year revenues last quarter net up this XXXX to are XX%

year year-to-date or XX year the XXXX. the up with over Our we XX% revenues analyst half the $XX.X behind you us, remain million With comfortable June of consensus for can see XXXX. at comparable period full why

guidance. still XXXX we’re providing not However, any specific

at only recovery, predict remains unpredictable, not it signs as dynamic, While really level. of state difficult remains to we a environment COVID a the especially but situation see continued

almost revenue the stability As per talked and the our bottle. release, compares the at expectations of bottle growth for you revenue We’ve This last we quarter bottle experienced a saw XXXX. stable net previously revenue to QX our net $XX XX% about regarding net favorably second earnings of in per in quite XX our year-over-year. year remained represents per of

price the to well from franchise. negotiating net and increases, and as we rebate as agreement modest glaucoma to revenue refine wholesale of Aside agreements maintain our our grow continue volumes per bottle, our preserve

as seeking pre-pandemic moving or money stated opportunities, total savings levels, as we our as unemployment the generic since formulary shows products. well an revenues a our accounted than release, launched And the important done decline for is to only higher QX. our payers in to As decrease as so press coverage of always they’ve configurations. that commercial It many commercial note XX% we’ve due remaining to for it’s our consistently commercial business example, XX% as

the coverage far continues how glaucoma commercial the to where Tom in revenues. our our as about franchise agreements, mitigated remain while net strategy same rebate as for speak has refining rebate a as further Our and the decline the minimize our stands coverage optimizing whole. burden our team will

ahead an increase in travel the as look to the and and continued G&A we a selling expect marketing expenses, in as we in As sales pre-COVID-XX expenses of rest expenses. well due to increase XXXX, levels

used However, operations. an a we impact And that spending to remarks. bit will cover increase we detail have Chris do previously, as said material net more during prepared not cash a on little expect his in in

the the to And the update a fronts. provide and Tom? the glaucoma the on U.S. call over that, Now, to after I’ll cover global further Tom turn I’ll franchise. highlights on pipeline

Tom Mitro

Well, thank Vince. you,

reported previous to market and calls, we franchise fire continued products. our branded in as our all outperform glaucoma glaucoma Just other the glaucoma

glaucoma based the total or second IQVIA of were our while the X.X% market for Our the was prescriptions same up prescriptions XX,XXX franchise for data XXX,XXX prescriptions quarter up or over period. second XX% XXXX quarter XXXX on

of at our obviously far looking note through The XXXX growth compared I quarter XXX,XXX second future prescriptions outpacing new prescriptions months declined of XX compared our I’m to XXXX, new July well prescriptions ending mention speaks to the XX%. growth when of the for and franchise the or impressive robust of But we their XXXX, the XXXX on our for the Now the in to and by will XX felt. so X.X% patients or up the data. June previous XX% to market the of of months. were grew clear, need while franchise second glaucoma in June to wanted market prescriptions quarter be performance, talking of XXXX, growth I last the franchise prescription XX% about prescriptions before go that’s XXX,XXX by short get

IQVIA he IQVIA with match Vince you get data. data mentioned, as monthly when the of So frustrated to the some tried weekly may

Now, the confusion dates. start and monthly primary the stop stems from

For example, was looking at Wednesday. June X a June,

of that data a always being occurrence called the and obviously and Tuesday common last prescriptions the a week, Monday So May rest prescriptions. split week weekly a ends It’s first just the of week. Friday. But week It’s for with June months. were in the on all nearly

week the does both had prescriptions. data. why the with data weekly primary reason So May That’s the and adding monthly the not match June usually up

Okay.

reports data, which the out very sales a are reminder, of that our as wholesalers in performance, shipped our the positive. from also pharmacies products bottles was to back Now

month same ago of units quarter bottles. were sales more up with than units Our XXXX in the the XXXX to second exceeding quarter compared alone units year a the XXX,XXX XX% or June XX,XXX out

up of month recovery. and quarter’s of to in of than where more levels out our than XX% last first we’re sign That’s rebound numbers time this big sales of XXXX. pre-COVID strong XX% were from Our at more a year, are the in indicating higher this compared than June we another June, XXXX, the quarter

are return team, sales Our pre-COVID eager like the to physicians to normalcy.

our last year. up physicians’ growth but offices decline, As are XXXX increase vast of open, same the call to XX% continued year-to-date is of majority period COVID call of to June now number activity The increasing driver open. continues to to volume with continues compared our offices the our that primary the

of again forward that upcoming medical week to meetings physicians settings. started at they engage and to last to to meeting, In Ophthalmology the these in few with at and the Academy in up were meeting which in Hawaii to Las connect Orleans. look see eager New normal of We’re in-person American meeting just wrapped American back Society opportunity November months, has also Meeting and Refractive pre-COVID to to behavior the discussions very both Physicians had Vegas. we’ve pleased the surgeons return to get in meetings past the & Cataract at

calling continues we team, force contract X,XXX calling in calling which June sales unchanged with next team prescribers strategy Our our highest our to remain July, Last began the Aerie on on X,XXX of sales approximately prescribers. the XX,XXX added and prescribers products. the the in sales highest began highest next glaucoma force telesales

with share in as of were from our previous one numbers market to little for three Consistent has audiences. previous grow continued Now you these various reasons. reports, these some may moved our notice each some changed that to calls physicians of a another our audience from

who Our lives. commercial routinely an reminder, prescribers basis. writing XX,XXX commercial Rhopressa month Rocklatan coverage prescriptions monthly each product on in month. highest count we maintained Aerie Decile XX,XXX, represents have frequency of those more ready half approximately coverage prescribers have XX per of weekly represents total XX% now is and currently The commercial prescribe prescriber we and nearly a glaucoma exceeds of lives XX physicians our glaucoma which prescribing nine products, XX% prescribers by their have call what covered been than

As ensure to very plans Vince forms with payer the the shows the to than authorizations moving to and mentioned, they prior as our closely to effective situation with remaining identify authorization situation, prior saving specific the for from XX%. opportunities ranging were proactively Results our levels, decline seeking are the force rates money and work like additional unemployment with XX% prescribers as address a to high prepared approval tools like commercial addressing sales our had formulary understood coverage plan cards. And generic-only we configurations. pre-pandemic to well higher co-pay

XX% or shifting LIS while additional coverage gains Part both Rocklatan at XX%, Rhopressa’s XX%, at included. patients D coverage, Part D Medicare include approximately subsidy the coverage when Now is These for of numbers products. recent Medicare is low-income are to

So outperform we year of And this the continued second at prescriptions the last and months. significantly franchise the volumes both looking significantly our once broader market. glaucoma again, quarter to grew XX

I in we back established prior the over to momentum turn summary, on So COVID. to before the Vince, to call capitalize we continue

you. practitioners and being we current the share bottle, prescribed, to eyecare and coverage with net benefits. to our back a Our Vince, glaucoma see managed per voice care prescribers weekly in strategy are increasingly to our revenue levels, products many associated to our move improvement prescribers, continue monthly initiatives but

Vince Anido

Tom. Thanks,

R&D initiated certainly fully Phase year ever Xb AR-XXXXX. dry announced candidate a the XXX COMET-X eye was eye. trial dry moving which largest, that Now October, we product for trials for largest our is efforts, Phase last not to April a patients, of the particular Xb in we among with done in enrolled which trial, if We this call

time points test discomfort, added as also drugs about both and we XX the any day of as endpoint before, The as As symptom well for trial to endpoint for ultimately greatest shows two help COMET-X production which duration we we trial the XX. And trial, separation success X will and weeks, of symptoms of primary learn the this as powered at us that well in said be signs to a vehicle. Phase performance. four assign. can multiple X future was XX-day for time and our design is vehicle. in compared the Phase candidate The And And those the as with to through vehicle statistically compared secondary possible concentrations which significant in signs much endpoints is different a as so tear a are primary significant days product difference will to statistical terrain compared measure COMET-X trials. measurement symptoms the at period difference as ocular

simply this to awful significance interest over vehicle. that numbers is thing. a speculation an is purely in about of one It’s just concentrations It of lot not or measures the of call Now for will projections and statistical success. there’s what needed be trial specific been

we’ve said in shown to in efficacy before, signs well-controlled efficacy same demonstrated and must trials. trial, not and the both do in least safety be multiple but As need be two shown to for will need be trials, symptoms at

As as is a a X. trial our Phase COMET-X powered reminder,

it count as pivotal successful, if a will trial. So

later We you the this how to top-line data. will asked COMET-X report expect many release for results we’ll quarter, have of

and a release conference company, do waiting in the call host days the and results. to Just Rhopressa the plan of review data slides a as to did our not trials meeting Rocklatan we with for we on medical with early will

Phase start such This occlusion. different profile of vein by terms steroids the in continued market, our other implant six trials which retinal and Ozurdex, generates the of which Phase released pathway year. million as some discussions revenues X the injectable top-line regulatory dexamethasone efficacy sustained period, efficacy stay in study to up Phase is $XXX in the very have of Europe Europe Europe and We’ve European months to known X efficient July, about in commercial in U.S. Based will market on the current be current data. and for greater dynamics, both combined. most AR-XXXX, and the AR-XXXX pipeline. US-based. retina with the potential to our with finalize three-fold, Last our the U.S. based on macro the being to The in as U.S. the end U.S., indicated in for turning expect to data the of AR-XXXX and the and Now X authorities effective we release to this for

You Phase originally from may recall present that last ophthalmology to the expected we meeting data the the X study at fall.

COVID. were However, the due to presentations canceled

We Antonio, been for will of which are abstract recently pleased American at of in the this at in held be Texas. October accepted The Retina Specialists year San presentation Meeting, has Society

candidates. our have platforms our technology We previously relates the PRINT that discussed pipeline retinal of it to advantages

reduced well of that frequency, of injection As various duration, drug longer provides a blends Phase reminder, customize results a create us this platform and predictability AR-XXXX. reflected as in treatment X which flexibility is the as for and were allows rates bio-erodible allows and to polymers, elution which

are have do that continue we to which number other of our in a Now progress. pipeline, make programs

going those about his report as calls not over seen press as with – various on but those certainly be last We’re releases. the to today, talking you’ve well few

Now shift our let’s to activities. globalization

with enrolled Santen now in first collaboration our progress of by be in thereafter. XXXX. trial are June to reported completed trial is top Japan is results forward. We be This end X XXX fully Japan to the to First, Phase shortly expected The expected continues that line announced the in patients.

and its first supported reminder, Santen. Aerie being X a conducting trial is Phase As by is

development the line rest the in this will Rhopressa top of the Japan. oversee readout of Santen of trial, Following

Europe, glaucoma have in franchise region. to potential with collaborators in our continue we the approval With discussions regulatory that of

favorably from an believe market some XX in includes such already even volumes ultimately same have our will greater As Athlone, XXXX Europe, to we year. alone, We during world, U.S. in compare, before obviously we five – before, bottles and that the bottles countries. able believe nations U.S. I facility total and period Irish Europe and glaucoma market the time. as as has beyond the to sold in the volumes anticipate European the million American production expressed XX there agreement in which pretty complete said collaboration end It calendar excellent of to opportunity market this the the China producing top where growing the than in the interest from Japanese the million the that from that for for used we and represents from well. parts utilize further have other been East be the South it’s of far of the Middle still

Now over cover to Chris the to the I’d call financials. like to turn

Chris Staten

Thanks, Vince.

As in the second Rhopressa totaled and our million. quarter discussed, Rocklatan combined Vince XXXX net $XX.X revenues

consistent Our normalized previous quarter the margin quarters. second which is gross was XX%, for with

million layered we with will on number for on of early trend quarter, of overhead expect quarterly the commercial add to is top sales Athlone capacity an that produced In number stages supply, to volumes basis or on associated addition, it in production. are plant. in the fluctuate the idle downward of of annual cost $X.X as in we approximately production we depending start-up plant commercial continue batches whether a Since but clinical to Athlone

of or loss was $X.XX loss quarter stock compensation $XX.X net or our million, XXXX based the when second was share. per adjusted excluding per $XX.X total GAAP $X $X.XX expense, Our share, million million net

expenses administrative adjusted adjusted the $XX.X and expenses development $XX.X was $X.X adjusted million. of and goods and quarter of with selling, operating adjusted $XX million million XXXX total and were sold expenses research For second million, cost of general

$XX.X of the million of is cash, June XXXX, was growth million The activities continued quarter of in and second which cash used and million $XX.X expense equivalents activities from This we end and net of $XX.X million. XXXX. million quarter is $XXX.X improvement For in of reflection in for used quarter outstanding the improved the quarter XXXX cash revenue XX, reported cash operating operating had as second net net at in of our XXXX, Shares investments second further cash in totaled used. $XX.X controls. we

quarter For now, like comparisons, earnings additional file we form over and call the operator would information regarding our turn today’s Operator? prior in questions. release to tomorrow. XX-Q, to And to our which I please for refer expect period the to first

Operator

the our from having [Operator Instructions] line Annabel question coming Thank Samimy Stifel. be We’ll you. first with of

open. line Your is

Annabel Samimy

Hi, congratulations you solid question points, clarify I recovery. couple to Thanks and on the just for on my coverage. everyone. versus want first, some taking with a Medicare commercial

So Medicare just those on you review them can XX% gathered just increased I and again it wanted saw true in seems your that to having incorrectly, coverage like to seem Maybe I is impact up I’ve like that net fast if you – joined and for Rocklatan. once but that really heard doesn’t is what price. it’s now and it’s plan clearly if your I confirm, it and it you just

So question. that’s the first

to trials we you. I again, AR-XXXXX, one The to only just study the apologize little but both understand have got that. significance or case, them? that second confused of right, if statistical number, if the would be that you you And significance for and hopefully to I symptoms question just pivotal. make statistical to COMET your for be Do do if I’m a trial, many considered that’s to endpoint, I just clear signs conduct? want sure Thank need with for has a additional you need how there, one

Vince Anido

All right.

just versus cover the you So it give question, go I’ll Tom, and then components. AR-XXXXX ahead on I’m and turn commercial highlights to Medicare the over going to to the

as symptom is AR-XXXXX, production So ocular our on our sign. and tear we’re discomfort using

– only be to your trial that endpoints, to primary X hit at be those four it, again, – but for count, we as time to can significant I’ve if the those this which statistically we not points had time trial. likelihood primary week will Phase the results we this talked about as in week to trial. of Well, FDA so is production point. endpoint the but ocular also these well is are hit discomfort, at both four, And Then a predetermined

we one we’re do hit if than those, really a sign covers we and it symptom that of second hit all the development complete trial time, then if to done need then – other So and safety. the with we is more the having program both to that

then instead better to other a maybe and happen one could it other, four, and at of says, the get or there’s improve Now XX. information additional day then hit that we one the versus continues that we separation a maybe week and improves

And where so then see we of there. stand sort we’ll

another at the so There’s the and XX into to of an day of yet have built that we’ll variability time XXX. And points. design we options awful trial do various lot

the released forward stat walk what and we we order the time so both drug hit And But point at on the to have and to in again, approved. through when the everybody sig path data, you sign we’ll symptom is. exactly what found some get

So Annabel. going to Medicare. it to turn commercial I’m your And hope question on that Tom over helps for and then

Tom Mitro

Annabel. for Sure. you question the Thank

we coveraged where XX%. now. while at lives, Here’s Rocklatan the XX% Rhopressa are of commercial is

So at will that about lives. the XX% of look we way all net to that

at If is you Rhopressa’s XX% D, Part and is Rocklatan XX%. go to coverage

improvement by you’re that about over X% Part to D So lives. all That call And our an way, that’s area. of the about is in last XX% covered right. by nets an the

couple the really for accounts. more competitive happy of couple get happy that, and hands. are, we that. won’t obviously, I to I those a did of at we a just very crack we’re point. reasons we’re coverage this did keep competitive with new say what with out names guess But So We our accounts try

Annabel Samimy

price? obviously, – expect you at don’t you it hit accepted expecting not tiered if a Medicare accounts, those And at you’re

Tom Mitro

material or hit significant hit. a Not

things a got help. number we’ve that’ll Now of

we per drop. bottle That our No. to drop. the why going reason don’t won’t dollars it’s primary be would so think And net

Annabel Samimy

Okay. Great. Thank you.

Operator

and question line Serge Belanger with will from Company. the be coming Needham our next And of

Your line is open.

Serge Belanger

there’s for the just outlook the for for questions. of good Rocklatan. talk or Hey, Tom. second about first population afternoon. if the growth XXXX Rhopressa one we glaucoma coming and second half my patient accelerate out of And that Where Can guess, up Thanks here? you are taking I sales any quarter? for out pent of demand your Vince could

Vince Anido

We They see, has rebound the and either decreased, and and further noted do patient could doctors. board. lockdowns We we couple Tom quarter, any we’ve entire market here that period of post-COVID, the mentioned we’ve won’t percentage impact been there, will as think as that like sort things access we the seen and the hopefully continued the market for the that continue see that. only a for whereas up or XX% year of has grown points one the XX% across to

liked the again and slide that for we’re find we’re We seeing there, scaling market relative some is maybe we his not a bit do good corporate doing that environment And sized doctors are share to continuing success. the gaining. publish market. and the of associated are noise see our are slide as as our so team we’ll are to environment some you’ll where Tom way the And products prospects competitors publish this that, franchises winners the that the who are the pretty and that in losers are where seeing like long little We getting we fact other – level reps the an the and and in or back do in us, helping you’ll lose see deck, are patients with especially moving. certainly

continue. to trend whole that expect do we So

Serge Belanger

improving bottle, improvements the incremental you’d XXXX. additional per price I remainder expect for some Okay. the of And think on net

XXXX. other there’ll if for when get be curious opportunities improvements to we Just

Vince Anido

at So comes due that as do that looking yes. that out the that we’ll off sure we place relative we of to where the execute looking need. continue wholesaler answer both We we’re well at on expect that really renewal for put contracts making the is plans plan to fees, are in those as, and every paying getting

has that started net continued year the of a renegotiation, it’s the and fees. reminder, we the wholesale we did of $XX, of do be for few chunk a a QX. would expect roughly in mainly big of with – about the or wholesaler lot plus coming from on of off bucks a Just the to beginning that QX. It lot coming expect $XX the there in we here front kick of level got is, – was bottle or we talked work fee stability. their loaded, so a we the some But what that A reductions of to $XX the at minus as that rest and

hopefully it do, level more gets, see we’ll to can the the the trending it influence likewise as renegotiate, through structures. take pull continue hard to them giving a as more fee bigger So, upward we giving sense that. chance – up see we we go whether and the have, at make the the contract product some makes of sense as result rebates when we’re soon every And a get we the pricing again, as QX at But up. doesn’t we that we that fees, back. a in And look with wholesaler that we

Serge Belanger

you. Thank it. Got

Operator

of question will be And Fitzgerald. our with line next Louise the coming Cantor from Chen

is line open. Your

Jen Kim

for taking I the up Louise. much on to follow on Kim is wanted thanks our Hi, This questions. question. previous Jen so for

last it’s bottle to jump in wholesaler then per in a fairly go next guess, that fourth the So, the then was quarter, impact jump up say time below the QX. substantial. improvement guess I could $XX correct like from And saw quarter. also I in we it of a the you But expect big

franchise. update something we in getting in my your quarter? level that And to $XX progress it finding think just bottle. improvement an second bottle your for like on went an per of see then Could on collaborator $XX per the fourth I to EU from question is

of made Thanks. over? considerations or key you’re sort considering thinking there last think those since I of quarter, on and you’re color that gave you still around decisions factors have refined lot any helpful what then, a you factors, are

Vince Anido

I’ll right. to that. try remember All all

I’ve it three down to got So, questions.

One stability of the quarter. third them is on in of the prices

sky because, unemployment We see high. will to see we is bit where in only bouncing be region little we had rates the again, of a around, sort continue

what the part the some price. reports were commercial highest like business expected about and saw of where today that. You our the The things of is usually of half hiring was get we

so a always pressure bounce And impact further but bounce And QX reason need gives a see pause, to some it there, a additional in instability little be will there’s think from nice. bit dramatic, the it’s is of on but little hugely little if around we we’ll think in we QX, us a but certainly that reduction bit. going upward the it whenever provide the for to, we not maybe bit don’t just fees the could only also which back, price, wholesaler again,

and it same but a that dramatic the won’t QX level jump, gate. Again, mainly at to the from we out top of the that when wholesalers of parts. like of pretty reported said, the got was year. we that beginning was the saw in, trickled the of sort three we in So, right other And one we benefit all because be the ones

So, we’ll get trickling the balance QX. in of that

shape be from to we’re So, good Relative it partner. to contract, for EU in understanding what pretty as we’re a the relative I think won’t dramatic. looking

countries, launches those to the impact going around of, markets agreement the world. done is we they’re agreements, of partners but have and the the support do One also only to one potential have like we going negotiate only sort we’re everything of how to at efforts once multiple markets with big of we things but their those to able And the in into get not looking the and we with as taken be of and how part go care challenges are get and that. here Europe, to of not

view, not, point And all paper quite and takes tackling blocking so a it’s getting while. commercial a just that of on – from while basically it’s

think just think really be we’re the so And reason the simply end year. that’s why going done the that to we saying, we calendar by it’s of

Jen Kim

helpful. Super Okay.

fair Just one commercialization deal done Is XXXX are event? end that gets quick products EU it the a on of those of collaboration, say the near follow-up the to say I guess that more year. of

Vince Anido

relevant. more want that’s that So, we get that we ones that we’re we’re on so Europe, because the emphasis what especially sort can the of staggering it’s in actually putting

get the so of is second cetera, to launch pick trained we’ve that to product it force et set cetera. because labels their in XXXX, we et up cetera, products sometime and provide sales countries, it with for – the half the has got et right in trying wherever we’d We’re the those

that’s that event. year half So next of we the think second

Jen Kim

Okay. helpful. Thanks, again. congrats everyone, That’s and very

Vince Anido

Yes, ma’am. Thank you.

Operator

will question the line next our And of be Yordanov coming from with Georgi Cowen.

line open. Your is

Georgi Yordanov

our thank taking progress. congratulations and questions the Hey, so on much you for all

to push So given be you coverage the then switching And those current guess to having. be would Rhopressa the discuss of we starting and higher related any additional we around greater of taking first, end up programs to from Do going that in could the on your are the to expect I reps them coverage should sales Rocklatan. optimization or to affordability with start Rocklatan. kind our reimbursement, patient whether that you’re

Vince Anido

Yes.

Tom Before I is, that have don’t you uses, which the answer we care really just remind it, right. drug doctor to want

Rhopressa for easier home home drop. a that, some out it’s not point, but find Rocklatan, using. in long only also them add a one cases Rhopressa find get for once then want they’re to that lot then to get Rocklatan it can to As whatever that of they for is eye And as because they everything a simply just they to they and

specifically And just said, so bit with answer me little Tom your more that question. have let a

Tom Mitro

sure. Yes,

to just the saw data know On that you the let to right. of we last All coverage, X% Rocklatan. about Rhopressa’s business only indicated went

physicians highly lot. removed interested Certainly, don’t because barrier a it. interested it that both all using such there’s sort coverage, it’s that’s We a good cannibalized. have of phonics to them now, and was So that especially changing we are see in

are they’re practice. nice how our between for of many of used in And both reasons. the spacing this two them pretty both for the instead physicians products there’s using various So of

that’s we the is So of one I’d course we the which second how cards, about affordability, our hand that. have out. part answer And biggest co-pay

or co-pay down a insurance level. does by As is patient co-pay, the pharmacy their high reminder, a if are too for usable quote those just any all, the is co-pay and doesn’t little have just, by card are through patients. at our bit their those and on commercial helps only administered what if And it patient the at that

Georgi Yordanov

for dexamethasone pipeline, regulatory one the remind if maybe in items just what could us just terms you trial And on remaining Great. are the gating the discussions agencies? of with your and of

Vince Anido

Right.

of opportunity meet they both and have an to surprisingly, very well FDA we’ve the So the as EMA requirements. as not different had

do up may that what we’ll up we’re what possible come of bridges to the happening. that so end is And trying sort with a protocol And have very two. it’s

about up on that. as well to how is do President call is we end Vice Clinical, make as We some choices fact, likely research side. of have have who the may do best David Hollander In the to our happening what

a on So have him that bridging more let we’re give me about you gap. what thinking just bit – little how color

David Hollander

with Vince. opportunity Yes, have both good bodies. we you, regulatory meet a to Thank had

the at point a probably the but some of meets A EMA that agencies and a for to collect but FDA should statistical for it, program event a want comes as looking different point just see we protocol different regulatory what that different looking both have when plan be as requirements. the has that meet requirements thoughts we’ll to well the the plan all single timing as they’re a We’re two end this the harmonized they lot itself, on down would have to well regions. as able data,

Georgi Yordanov

for great. Thank on That’s the all progress. all so answers and much congratulations you

Vince Anido

Thank you.

Operator

the with Our next Frank line coming question be Brisebois will from of Oppenheimer.

open. is line Your

Frank Brisebois

point you too you side, this much one just for let’s same on be does both weeks. eye days to another hit be the would at with hit for point, check, symptoms? but have dwell the thanks four to okay Not double, to and on And can that it signs timeframe triple taking dry the XX the end whether can sign Hi, it FDA at questions. again, or have say have and end

Vince Anido

say and say production, Yes, our happen, that hit hit the we sign, we then were to and let’s that be like four, at Frank week the tier they at say to I gave, occur. we that had, example symptoms, for different can let’s that let’s where if were day XX,

And in at we happen particular on would symptom, happen the what then instead it said we this primary we that quote for miss that the is week likelihood could out. would as pivotal four, week that So because trial all pre-called a use point it’s XX. going would because a four be end that we we for week sign established, would to but be

duplicate it primary would and So They would but the the needed sign just the up at primary, FDA day make co-primary, don’t become get at that we the sure would study to four. the timeline XX. They have week improvement then we points set with just would really the okay the And And the be but that be – is the perfectly so what that. symptom it’s it repeatable. or improvement care what time to are.

Frank Brisebois

Excellent. of I guess, you you you approval it hit both than terms get symptoms? them and or you to one just do if in on need hit Okay. more And just signs that both got one, lot of need on to a if is

Vince Anido

Yes.

approval. sorts other to FDA has So stat the sig barriers missed if all of both the and you’ve on

things to use can hit, corneal in say, if certain that over with you’ve vehicle have you increase central you clearance. the get like and only so And a you get to or assigned, want got tiering the that have hit you of production, tiering amount or to complete and to let’s staining tier

sake, symptom only just but to pretty limits it then simply to only also so that your so it’s label if function. And as honorous opposed a to you go just is it stats doable, get after

we why chance given doing that’s both have so a pretty the we of think signs mechanism, good and And symptoms.

Frank Brisebois

Understood.

one on a signs just, of end so maybe doc Okay. there’s number, kind but not then that. much that on seems that side, greater to of been far, – post a I based less guess, that that’s data last the the shared, it And dry there’s

like be might it very that be it in general signs Is So hit say not easier. rare fair? symptoms to Is to would and it fair seems sign? that hit

Vince Anido

shot we dry signs because Well, in the products, with have mechanism darn all a they pretty David, improve we the the eye that good of have you of don’t symptom perspective just development often just give and symptoms. me his think let really our patient the hitting well mechanism. outcome that got of improvement sign. at we’ve And hit the history as on they as But it certainly why more

David Hollander

why symptoms. will Certainly which thermoreceptor believe that a we have call discomfort is Yes. a have we patients agonists, ocular cooling as sensation, experience we as

have symptoms multiple and accused in also the there’s actually product say that’s As And tier a of that over that and face past, a was only production. improves you mechanism single ever we study. both signs

And optimistic symptoms perspective action both do the MOA. we hitting based of So the a we the about about signs. the are on just from which in mechanism thing believe symptom, nice actually and the

sign, stat points others need they’re based only whereas on signs, to different You end on have symptoms. she’s sig the not had on if hitting

remain we – we’re both MOA our signs and of based So confident on symptoms.

Frank Brisebois

there see Understood. there unifying And happens all any terms to there, endpoints, at eye really possibly to with but FDA what and is EMA them you are waiting there’s the is any that, just know and start or complexities the of, completely then looking is this on you’re I that AR-XXXX, of thought and thoughts the in is here dry independent?

Vince Anido

all off number one developing things, started for you of pipeline, until back we all make we couple got the regardless wait to that, the had assets can that that data for we told any in move and of continuation when what a out ago, we so about when two reading were to of then development, we choices fast. we of going how forward So years the

discussions taken bit little new. the have And isn’t just happens longer a so XXXX agencies that these It with relative alike. to and this anything so

The it earliest until the year, And call but so the we’re of up year. end wait that as the we do out going of the end could to we front.

read any that the outcomes these all studies them So on will choices come waiting it have have we shouldn’t the of and were. what by time out a we’re until based as we will start, surprise made

Frank Brisebois

of great. Makes Thank sense. lot very a much. you Okay,

Vince Anido

you, Thank Frank.

Operator

line be of Our Truist will Greg from next Fraser coming the question Securities.

Your line is open.

Greg Fraser

fees lower as much wholesaler per Good from time? taking negotiating afternoon, for room there the just for follow-up I to the folks. improvement gets on business questions. How just larger wanted bottle. is net the over Thanks more sales

Vince Anido

and – surprised were was I that were able it significant. the we people reductions think got get to It’s that pretty we

that we like of said, haven’t yet. we so, seen our total the seen I the haven’t – And of bulk

that so our looking finishes. we when at We size net sales business, look you’ll do to see a look guys The the perspective. as perspective. you a that at year it of – sales at wholesalers and from are a at it gross when from talked we again, And we look we think

result. as number And a significantly bigger it’s a so

other distribution And think all of that so there’s but from them, get we we as services only sorts sorts not we things. – all of

major pressing can, as if they’re become their to sales think And continuing a again, the we probably sale and fees. at still low-single to we terms from view, in about so look Then as than point a a of totals. we we’ll net gross digits possibly continue have, because much again, companies, you bigger we us down think envelope wholesaler of grow as their chunk I of just

There our bigger ways ultimately so go. get a still And as that’s was we target. to

Greg Fraser

Yes. Got it.

time? of so, that Okay. And where see going do Is to number the you average if per bottles over prescription increasing? still average

Vince Anido

interesting. It’s of kind

we bump we XX-day I’m and exited, great more towards COVID sorry, hit we started a prescriptions. had So moving when when

Rocklatan, is which a we so that. for a is I’m of between X.XX number the discrepancy number And of or script of script, around and bit lighter little little bit see than Rhopressa prescriptions, per per X.XX sorry, bottles

from them but where are quite bit so again, the both up And of numbers. a pre-COVID

And used versus of down drugs once think – I to the that they mail so kind getting going their that. pharmacy, – to the people local like to get get the in

that is in So probably glaucoma range in to X.XX average somewhere the is there. industry X.X in

good has almost and little a year now ways bit a of ago we go, already sort a where a that thing. before blended basis, Rhopressa but on So there, average we’re below to with we’re so were it’s Rocklatan, got

Greg Fraser

Got it.

just you of between steady question in revenue, mix or gets that is the Okay. over you my on last how to when do and sort state? then Medicare evolving terms time of see commercial And mix

Vince Anido

do – right? what you you want the call me think to about tell unemployment, want to You

Greg Fraser

Yes.

Vince Anido

Because swing right. it, that’s really going to

get bit But back that that can folks call. we slow So rate whenever, going on they on kind until a little started erosion of to it’s that of if happens, back and back, maybe make to hard down. commercial plans, we’ll again work

is the we’ve for call all them. we’re number could that can prescription. help every we of tools to which patients what too hard pretty this use – it’s at commercial, got So to hard or fight to access help It’s do get doing, we the is to a point. other fray But just

Greg Fraser

Yes.

you. Okay. Thank

Operator

from the coming line be will question Yigal Next of with Nochomovitz Citi.

Your line open. is

Carly Kenselaar

expansion To the plus Carly did effect? for this our for that Hi, the increase when that when on taking go coverage in Medicare you’ve D XX% is questions. onfor Part up at Rhopressa? achieved for what’s to into level this Rocklatan of trend point sort follow-up Thanks your Yigal. D expectation Rocklatan, And coverage Part for could

Vince Anido

question in I’m the you I’m your Staten you of the give that. actually half to to the have going half, going a Chris repeat second second, have first but just to answer Carly, for

Chris Staten

Yes.

On the new X. was effective D coverage Medicare June Part the

Carly Kenselaar

great. helpful. Okay, That’s

XX% that level trending how Rhopressa? time. coverage keep second you was the see The of part for just plus percentage Part could And of over sort reach can sort D Rocklatan that when you

Vince Anido

a do to we again lot started that given at around getting little reach, coverage. we a tougher we in stance we Yes, soon rebates and certainly about What was up to contracting shifts we getting as as wanted we back of negotiated bringing how win – certainly a And contracts. our started in where that terms of to go. to didn’t us net get those down, taking a up price making we hit quit the we were care contracts managed percent because, doing trying thinking needed the numbers profitable one was decisions in of ended that to in what our wanted terms make of

sense that Part in sign So I to way most without get get there, coverage, plan to to we don’t make say destroying net contracts the really Medicare not in to price. we’ll our if can a us XX% place the because have D a

like we’re for I on to year from no brings us and done. if of sense we utilization, get using the the there, any point makes all And based a kind got prior did to took ago years, the and put encouraging talked largest able and coverage plan like again, to we’re to contract the when particular enough we But got that, what get some It plans a It’s to table that be pressure of in because about system profitability so we country. we rush the us. but things most that the do going authorizations that, we two and on number. these it and

Carly Kenselaar

filings of Thank Okay. just you as in the next And pipeline Got year. additional programs a then it. have That’s IND helpful. some number well you. expected as

some you was time your to on point you the partner. assets in of could as I or curious licensing So of of and see comment out in development at if these optimal what kind interest level course sort of of partnering the

Vince Anido

we as we If to partnering are like broader have So of trials, there’s we activities to to retina start we open and about doing the of open to product of traditionally start for already folks deal deal retina. we folks rationale path down in have And are the there’s just about and the as somewhere certainly interested the to to to excited X for it, kinds other us geographic do is Certainly, for in partnering, talked depending whether well get that open we’ve Japan. of or than we eye that, those some all a as it’s a that, the around it done certainly that be and lot as be data, going dry that. market sort Europe, Phase on the we’re things. what doing

situation approached may we we in partnering ourselves there. where a get find So by

So resources way is best it all about sheet, pipeline continuing the cache our to we in thing are thing We and as which manner. And a also of either. not build to open. that a good a is nice possible adds that that balance viewed utilize bad the the

do to bottom that that. things we’ll sign out these So line away, are says but give wide It’s a we open not selectively is open. putting necessarily

Carly Kenselaar

much. great. so Okay, you Thank

Vince Anido

Yes, ma’am

Operator

be with Securities. of from will Difei question the last Mizuho coming Our line Yang

open. line is Your

Vince Anido

Hi, Difei.

Dan Clark

for is thank Clark Dan I’m on you. This Hi, Difei. sorry.

Vince Anido

how Dan, you? Hi are

Dan Clark

Good. ones trial in there then the you? study. believe two from Are How for of points are Just the the any questions a One, most commercial to week the will added one were data us. you end secondary and we see particular have that that relevance?

Vince Anido

So Rocklatan. and give we like with we Rhopressa you, will did

concentrations on let little the But talk we of I’m So more some going sharing greatest things be you is, vehicle points, about example, part separation will a one of all the And just degree first – data answer then we we David that. week bit Rocklatan attractive. points happen I’m the of that we me that going of could one the could time sort what to end have where that Rhopressa of one. mechanism and did because the the and for be the to showed of between the the get at like other and

that particular next study because for short, the it do to duplicate is make would pretty certainly that all so endpoint that, right. had And we

all we And we we do when sharing released on so data. plan – that the

on second David, the So part?

David Hollander

will Yes, are find number people of that, a end just to points add interest. of there to that secondary

pain, Xa may ocular discomfort, will for secondary we end at. dry the points adverse both the primary Sandy for the of the well which as conducted tested eye In addition by looking using Avizorex reasons the interesting looking the also environment chamber. a be of or was at we’re environmental condition ocular MOA similar controlled as Ultimately, to to a which we’re part also prove Phase

both point a into and standard that to of to used changes other within, breakup looking answers the chamber scanning question. addition be cetera. in points number Hopefully end will your will we we the et have at time, end So that outside everyone’s so

Dan Clark

It does. you. Thank

Operator

right. All

to CEO like call the I’d Now Aerie’s remarks. turn Chairman Anido, and for over to Vince final back

Vince Anido

balance of call. us share I do despite – of – certainly that have there enthusiasm environment. know Tom to thank in we’re we hope commercial able Casey, team what great some that we of about the I the the and job a into a we accomplish sure continue and that’s the great got challenges back very, quarter. busy from just the facing. of the we’re front and excited moving despite COVID and growing, you, our now very readout towards joining you. up clinic been pipeline doing Thank that in think we David are you terrific you’ve been that everybody all commercial and are built sales a And the things and that I and the for coming week you’re in the that this making forward view, And point we’ve very for or we doing end for certainly, we’ve here

next So to we be chance talk a time the that’ll get to other. each

thank you evening. joining again, a good for have and So us

Operator

you And you disconnect. with that, may call. this today’s Thank everyone now concludes participation. your for conference And

Aerie Pharmaceuticals (AERI) 5 Aug 212021 Q2 Earnings call transcript