AERI - Earnings call transcript Q3 2021 | Aerie Pharmaceuticals Inc

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. Thank you for standing by, and welcome to the Aerie Pharmaceuticals’ Third Quarter 2021 Earnings Conference Call. [Operator Instructions] It is now my pleasure to turn the floor over to Aerie’s General Counsel, John LaRocca. Please go ahead, sir.

John LaRocca

Thank you, Chris. you us. thank and afternoon, for joining Good Casey With Chairman; Chief Tom are Calabrese, Ben Aerie’s Development Operating and of Scientific Interim Accounting Executive McGraw, Aerie’s Officer. Officer; and Mitro, Research and David Vice Aerie’s us Aerie’s Jeff Hollander, Chief Officer; today Officer; Chief Kopczynski, Finance Aerie’s Principal President President and indicated Today’s be available will investors.aeriepharma.com, and call is it also release. being replay webcast in as live press on our website, our for

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

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

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

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

adjusted discussing financial this In be addition, will we or during certain non-GAAP call, measures.

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

Benjamin McGraw

everyone. of Thanks, third us to we number our quarter items progress First, continued pipeline, five had very Thanks These address for John, on and begin a afternoon performance. with making our have I additional global results, today. good want good very and strategy. we perspective We specific growing a commercial have quarter, and today. by points: important to joining include good our to

You’ll the hear that the in Tom quarter. for Mitro’s reporting results of

market share Our and consistently are revenue hitting products two are gaining projections. analyst’s commercial

leveraging are I’ll we provide Second, our partnerships. now. balance products further and further sheet comment and partnerships It’s our enhance our these provide on will ex-US via expectation will --

we pipeline them. two have III-ready clearly products strong a Third, behind and in differentiated development Phase

in filling Hollander. in that. Fourth, in from operation we’re have progress manufacturing that team. financial I You’ll about have vacancies. from and team David Ireland, hear are a the we management departures you good our Calabrese a Jeff and on cover senior strong we we’re those Athlone, I’ll will making comment and concerned well-functioning Fifth, that. some The two is know of management good position

suited fiduciary previously to find our now the responsibilities necessary The person of time for to seriously opened job. we’re interviewing we’ve the the have responsibility As take well-qualified takes and a execute will we CEO, Board reported, candidates. and its the search best very

an CFO position search right are In for for now. addition, and very active have we candidates good we interviewing that our

will address with to and update update Tom provide to wrap US Jeff activities, our the the over franchise, up which call an the on turn after Calabrese glaucoma on the an I’ll David will I’ll Now provide pipeline, financials. global

Tom? Okay,

Thomas Mitro

Thank Ben. you,

compared net XXXX year-over-year to XX% X% up $XX.X of up and XXXX. are quarter million quarter revenues of third the Our second

are million with the the XXXX. $XX.X of continue analyst year comparable the two period comfortable full we left consensus revenues up year-to-date net to With in ‘XX remain September of XX% XXXX, for months over Our revenue.

bottle net last at stable This quarter per to quarter for XXXX. third we Now as approximately of net $XX and our saw favorably release, you in growth compares our revenue in third quite the revenue the remained earnings experienced the represents per $XX bottle year-over-year. year of XX%

overall of a over in Comparing franchise third into third unit glaucoma basis quarter the quarter the XXX,XXX XXXX. amounted volumes increased of units XXXX in decline, continue third the impact sales quarter assuming of over the for represents of year. our the by the quarter Our volumes the X%, XXXX, which, the to XX% second continues first wholesalers, to on increase XXXX course, revenues, versus recorded half of balance increase our COVID-XX XXXX. that industry of to to of are This of wholesaler expect we to

to our show represent Now metric strong of growth. into remember, from bottles as wholesalers you that out products pharmacies. This sales data are continues the also shipped

first where increase this proof this that year quarter powered time of quarter’s from were exceeding a sales through XXX,XXX more were last XX,XXX And and this quarter higher of than our units levels of third more numbers at units. the to last the XXX,XXX to up or pre-COVID months XXXX significant third five XX% of continues we XXXX units all than XX% pandemic. are Our we with compared the on providing quarter the than XXXX, show

we over XX franchise just quarter the the prescriptions Based XXXX of data, glaucoma was up XXXX, rose Now products. our reported branded IQVIA X% other prescriptions quarter as previous and the continued same total calls, market period. or market our for glaucoma franchise while just far to -- third third for XX,XXX on glaucoma over the in glaucoma our outperform XX% our

in the new the quarter for the very quarter the continued We third growth third X%. our believe compared XXXX XXXX increased speaks future of in our XX% prescriptions the growth franchise market New to well of of prescriptions outpacing of that growth franchise. for

XXXX, September by period. grew or so declined by XXX,XXX XXX,XXX prescriptions ending market XXXX, through of of XX to our be months September franchise October that prescriptions the last the glaucoma XX%, over same at looking or the clear, Now while X% of XXXX

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

to driver offices are with our last visits sales activity representatives’ volume increase open. XXXX the to number year-to-date September face-to-face. period vast growth the our is offices continued up call Since increase in our continues The are physician year. same of that call Now XX% XX% majority compared primary of of physician now now open, the of

strategy unchanged. force sales remains Our

July sales began force began glaucoma our approximately on we contract prescribers. on Our prescribers of XXXX, in calling the X,XXX sales prescribers the is team In telesales the of on X,XXX next the June calling highest XXXX, calling highest XX,XXX which next of added team, highest products. and

As physicians as the previously, numbers but are continues for another change little our of we’ve audiences. mentioned IQVIA from in show all-in-all, these each share some one to audience various these our three previous data may to a grow moved calls, from reasons, market that

a highest monthly Part prescribe count the of nearly routine XX,XXX. represent Decile prescribers prescriptions Shifting on patients, and prescribers, Our month, prescriber on of as a XX subsidy, commercial including basis. products, subsidy, total low-income coverage, is coverage LIS is coverage, Medicare The and including month. or have patients, Aerie of who now XX%, XX% weekly half of the riding low-income at have approximately LIS each X Rocklatan exceeds have XX reminder, of glaucoma an Rhopressa approximately than been more which, writing prescribers those We maintained per or XX,XXX X%. their product the glaucoma currently lives. Rocklatan covered to frequency, both Rhopressa’s D at prescribing approximately XX%, XX%. and physicians

As in expectations agreements talked regarding we’ve revenues. revenue we bottle to glaucoma revenue to franchise. price per our remains stability preserve minimize to net our addition as burden as our of our and the and to rebate the net previously our continue grow modest while and rebate previously volumes refine per wholesale bottle optimizing We’ve same, of mentioned, well our increases, the the maintain agreements our strategy the renegotiating about net

to closing travel to to general, administrative we costs out as in an increase XXXX, marketing due well So continue to in and look expenses as levels increase expect as we and pre-COVID-XX expenses. the ahead selling, sales

we we an a do to net in not used material cash our indicated previously, expect have increase impact operations. have in spending on also However,

to So in established summary, we prior continue COVID. we to capitalize the on momentum

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

So, would the covers comment a Ben like David to R&D Ben? program. make before now,

Benjamin McGraw

Thanks, Tom.

point, and would I’d everybody. starts, that David to to like Before be I up a beneficial think clear

as many joined dry results doing Interim time spend are the I the the trial, diverse as IIb others results I were over however, that their I years eye. studies. of Phase the seen Executive some inside with a know eye trial, of working of that views. trial the took clinical and those before it Just were understand to team, David announced involved any the terrific with with the in that they’ve I the specifically company in in the better others, study than company of viewed a When results dry Chairman, management disappointed lot

small that Phase In the which be IIa bought trial if and endpoints The for company serve by could formulation a time by trial the for was as endpoints would hit later Phase pivotal trial trial, what would used was trial. The they their the of points, in results the primary primary Here’s IIb Pharma month in I product. the the Aerie. study one efficacy not discovered. specified and money was to The a agencies. company acceptable end the based products of save of done the that on development those choice regulatory IIb Spain, a Avizorex hope

of the because is about there Phase of the the built that endpoints what made the team significance for. have Phase endpoints of be with other to and on tested been points, best the change to a ever points achieve three-month primary II pre-specified the most seen. be those pleased eye team small of wondering endpoints, a because trial in line of chosen. formulation did hitting one of the appropriate the what was choice III significant IIb product the in be had failure a uncertainty The drug this in associated the would dry what is to endpoints statistical that very results study, Aerie fail the other For based full would left uncertainty program in primaries. it its would larger Because had company of to Well, involved end size primary regulators. out developed would trial would endpoints was projection exactly that the reproducible Aerie, showing why the was I those much the study the achieved called they that’s bottom of effect formulation the Spanish It assess run the the and endpoints against Because action. the acceptable by end although change be against new turned that expected they’d a data reproducible the multiple mechanism The that array difficult. for trial, on Phase primary to allow hedge most on that,

of I’ll III that validated had for endpoints. endpoints on it points shown acceptable confirmed and this have approval this In array make months and the and it of three efficacy outside through drug you the sense. first drug it was symptom In two, but give the of been was study. served broad in continued drugs basis the have In validated of insiders action was the a the let week agencies divergence onset as showed of a has noted those case, that that story, point results David endpoints. actually a between and they either on end, other Phase assessment significant the efficacy pre-specified, the the at means that sign symptom had the validated as rest and it regulatory effect the study rapid which sign at this end by efficacy against addition, or time meaning measured, the

Okay, David?

David Hollander

Thanks, Ben.

clinical shifting Phase of agonist R&D September, dry our for Ben to XXX, results eye. IIb TRPMX noted, for efforts COMET-X positive line reported as in So our our top study we

on novel future and dose-finding study and concentration be testing awarded As dose-ranging the endpoints to the Act. MOA well-established may determine in studies signs Nobel symptoms. advance receptor, receptor trial XXX medicine upon this for Phase Prize the by was the the select IIb seminal Phase aware, The work a against you designed XXXX which a for as FDA was of to III pivotal a TRPMX to number

statistically the significant As concentration demonstrated sign across multiple symptom high-dose validated X.XXX% and reported, efficacy endpoints. pre-specified

onset the the what trials would with observed trial endpoints XXX topical products. improvement consistent tear in to endpoints In co-primary are and symptoms Phase Based drug symptoms intend day was on the these addition, action. this action. and rapid results, other as as III SANDE XX. be half results We with from Phase Phase These XXXX. and for our mechanism from COMET-X III Efficacy early signs of of trial. of of defined XXX differentiate demonstrated as III also in in expected Confirmation would a clearly first a initiate in showed signs symptoms through XX both score continued we and production the have day

to XX-month planning for XXX. conduct III study two Phase and efficacy safety studies a are We

FDA the in will first of next Phase the meeting regulatory We an confirm quarter path year. II in of end with

Now our III implant. US We of European start the applicator. to first we’ve with XXXX. of developed through trial regulatory because half trials shifting dexamethasone for clinical in for and for our clinical the XXXX supply pathways that expect to our retina AR-XXXX, implant the and discussions pipeline, attention moved into Phase regulatory date regarding completed sustained-release This III first the clinical issues was the chain now agencies Phase XXXX

at in six injectable profile revenues steroids with II we other July presented combined. long-standing is line vein was as in Antonio. a of in data to XXXX, Singer efficacy As markets edema patients Dr. Phase a This which up reminder, demonstrated of improving in sustained today, by which in US vision and compared Meeting secondary Annual in very month, such retinal million released to generate, II retinal ASRS the the Europe Michael about to for the of top efficacy prolonged Ozurdex, the occlusion. data XXXX, Last $XXX the San Phase months

retina three important is long-standing to prior this patients it In five had injections and seven XXXX. the receiving XXXX to and general, of been anti-VEGF Nevertheless, population, increased patient in has of disease on longer number letters. years understand very likely patient is studies visual prior why to in mean always all this less as that severity almost study a eight of that Now with greater treatments outcome. ETDRS good achieve to as challenging. with the a duration is average first-in-human treated even That to improved is difficult-to-treat disease well nine comparing patients

More XXXX months, a still allows of importantly, was longer frequency, at of and XXX XXXX this II six reduction magnitude promises the month manufacturing. for gain and vision print effect was retinal polymers months Phase fluid and with This correlated eight persisted treatment elution allows letter sustained with and observed that over for create This reduced other standout to at also treatment least treatment various to bioerodable six single predictability us developed and proprietary provides through the were six. is lasting in on what in following using which flexibility make products of microns XXXX drug platform, in for of results both rates duration blends the XXXX. which injection technology reflected market. from our a customized

our of at share once-daily in which was in intraocular results the for in a superior that Ripasudil’s we week primary line was Ripasudil, globalization four, has activities, inhibitor Japanese to our lowering study. shifting X% The Kinase the few ago, Netarsudil results roughly showed versus Phase endpoints the positive top to announced evaluating Japan, trial clinical that market. twice-daily a pressure weeks Now III Rho Netarsudil

population. shown addition profile, We for strong that to in baseline bright with safety see a need unmet Japanese that in to in Netarsudilin and lowering this impressive the pleased dosing pressure. achieved once-daily and its Netarsudilin superiority IOP a are for an suggest the believe population efficacy We low intraocular may fulfill market future statistical

We this unique in this a was has our the population are quarter of ahead schedule. These that in a very positive Netarsudil trial, effect pleased results with indicating population. of results which patient prior results low IOP completed the confirm

As oversee now III a Santen Japan, this of which as I’d a signed in turn of Phase development back part collaboration the the in to call the study will first conducted -- safety reminder, to and rest additional one of XX-month consists trial agreement one-month Aerie the XXXX study. now And efficacy like Ben. over

Benjamin McGraw

Okay. Thanks, to Europe. Shifting David.

other the in products really Aerie Europe along collaboration the US this totaled the in before to million a the glaucoma Partnership We marketing world in on levels. market in European and region, glaucoma for expect in agreement important the nations given will $XX top XXXX of for to announce million compared end ‘XX, five on regions that multiple $XX our be

and validation be would a it commercial the potential of Rocklatan of further external First, globally. Rhopressa

that Secondly, Europe the represent would adding we excellent to an increase plant. sales believe at our drive opportunity a Ireland utilization to capacity partner volume from

burden production with So growth. expand company the potential Japanese from plant US The sales the capacity our position with current least a to Officer improve have commercial Finance Principal would and Athlone of is margins. utilization combined and cost underutilized our at Calabrese, When the Jeff? has annual. of financial today, Jeff excellent team increased years. partnership performance our over million capacity is volumes to to few the there last our with Accounting VP partnership, critical $XX this the European financials. Jeff cover who of role me has manufacturing played the in our Happy through

Jeffrey Calabrese

Thank you, Ben.

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

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

in million plant $X.X Athlone, approximately commercial overhead production. is sales of cost of with start-up top for associated on layered Ireland addition, the In

continue volumes to capacity to number plant. to we We add expect the annual downward an trend of basis Athlone on as that out

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

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

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

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

Operator

comes Our Instructions] [Operator Samimy first from question of Stifel. Annabel

Your is open. line

Annabel Samimy

guess, on for my pipeline. current couple, thanks I the a performance the question. have and taking Hi, one, one on I

to any great. I can AR-XXXXX, And into setting being finally, year chosen would so be the retinal on coming for can actually the you II? point into going by been an having III. comfortable to include Is I what the and back potentially symptom you I you score, the signs. And ‘XX products? that about I is, XXXX? think end this EU a expect normal. in to any at then right the signs. as guidance with for Phase the with at I just thought for waiting -- about of the growth open, are we then to glaucoma the endpoints this going disease to the could thought partnership but the other any know the that in want for business sense given year? it score makes environment, you franchise going it And this that if now, on only we’ve getting SANDE First, And normalized or for is consensus spoke guess be of comfortable what provide know the practices months done the that And the be ophthalmology missed you where commented is some point same Phase comfortable are to

Benjamin McGraw

include, partnership, provide that we next products. what can we’re and guidance the to it’s regard with designed the is with year very it’s With this regard regard goal tell quarterly glaucoma our XXX, the that to you I -- next With you Schirmer for to to Guidance, call. just confident is unanesthetized around will have to coming. Okay. in the it

Annabel Samimy

Okay.

Benjamin McGraw

everything capture that Did Annabel?

Annabel Samimy

and just can. sure. so question, Maybe I much if Yes, one not description more

have that you’re get I and around of guess this concerns that you your get further I question that there? SG&A, can how you toward do is feel pipeline Without big that, any getting that events. you and are growing your the still always people EU franchise partnership the think is investing one in business profitable? comfortable working could raise, R&D, you cash

Benjamin McGraw

partnership, EU The told well, you we’re at so Jeff million. so or XXX just

XX EU pressure. takes that up by XXX us partnership the any Now, takes away to more short-term

are -- Phase additional of can to to sheet. cash now sources now just What have that pressure the I right products say about no We anything at under we’re is do III-ready that all. can balance two be

Annabel Samimy

great. back queue, Okay, get thanks. in I’ll

Benjamin McGraw

Okay.

Operator

you. Thank

Company. Cacciatore have Cowen we of Ken Next have & we

open. Your line is

Ken Cacciatore

I’m just as understanding of company, efficacy, trajectory the wondering, to we without and these well respectfully, pipeline. disagree have Hey, company, the basically there’s it’s thanks excessive leverage tolerability kind two their single-product I’m presentation. is products, of going products, of for look at we much really the a known, characterization with and fairly growth good their although Ben, spending, a so your with the

through rights. Thanks all consolidated fully to the products, as as still and you time, sell you about far better an get between process to how this sale yet organization. just it’s why not CEO, served Can strikes in understand you you’re you that candidate as to still isn’t valuable and go engage nearly it so stay I with seems in you a much. most patients, Europe, now. would It just a away products be and you why do wondering thinking it they’re talk just search, stand-alone? disagreement I’m if licensed don’t the great as so ideal haven’t these and versus hold think us as a another but we CEO whether should be the now previous

Benjamin McGraw

comments. Okay, direct Ken. Thanks for your

on prospects just of will the the disagree products. to agree We

made the what’s the it do. the with wasn’t was back and seriously, really very just completely. someone to put there move So very Again, the regard us it the what come it. it that best The would path finally we’re disagreement they deserve. for its for put With Board I’ll to saying told a CEO, I that We there’s that’s that was there And -- no I off for absolutely to off if diligence -- timing understand to time and then with he takes time there. move him picked it on. revert had clear to there. that we off look and and an were forward, put appropriate offer point the fiduciary and give comments company? at you’re in responsibility would regard

just this can I at say And so that’s all point.

Ken Cacciatore

appreciate right, so it. All much. Ben. I Thanks

Benjamin McGraw

Okay. Ken.

Operator

Thank of you. Louise next, Cantor. Chen And

line open. Your is

Louise Chen

for here. questions Hi, my taking thanks

follow have few what to here. I up So asked on my had of some a colleagues

does management the company So there so a think have then, stand-alone Aerie’s strategic as been changes, vision. how Board about some obviously,

what it’s by what cash we’re today? off how and waiting but or a it’s been going accelerate just think Rhopressa? coming have this for I its for or back it on things it bigger You’ve on to important the characterize well, of cash, just runway you up will And do people to would than lot you thinking will launch. how point to Rocklatan then growth really you done is got know here. take be your And in based you then secondly,

Benjamin McGraw

Louise. Thanks, Okay.

is was directly, on and question -- I’ll can’t add the I’ll answer anything I in prospects the actually, we they I’ll Board at have Chairman the than market so the Board, other after So the Director, about the like we the we, are think well, question that -- be they -- this. I the okay, which for We believe on so good. the Lead comment portfolio. of the and believe the the the potential where are company least quite believe prospects products good because company

products. two We III-ready have Phase

just don’t for a -- this in many You have mean company stage. I terrific that’s

So already That’s Again, based the pretty specialty just pressure III have products of do up to ophthalmology a products. we’re talk the that I’ll deal, on sources I’ll we Phase back come operation, toss EU the forward I’ll manufacturing that was -- good in and functioning end cash. about space and standpoint come have financing let around to it Tom. Rhopressa the a where Phase with that good. a you ready. that’s And growth to anything it. we are to just from then then under of got going III-ready that we before, would with regard cash Tom from not to additional Rocklatan, have good operation With on well-functioning two admit, cash commercial that of the acceleration

all. just is financing at now it not -- just looking we at something So we’re

for and to Rocklatan? Rhopressa Okay. about trajectory growth Tom, comment do you want

Thomas Mitro

Sure. the Louise. question, Thanks for

about two glaucoma say I’d trajectory the our franchise. for So growth things

we First, COVID, rid of obviously, got to right. get

those to treatment all of gosh, is of they certainly is here, are we patient my having thing physicians my my are a knows, sorts finally practice the mind lower right okay, things. the in once is right okay, great patients everybody getting with, clouded are numbers As instead have while, on a my the staff far focus again because than quite okay, can their which been

that’s The and So great. cloud away. has just moving keeps away away, --

we from had of this is you could since point. as care coverage see very launch, we’ve obstacle is at that managed coverage. big course, The And shape now our other report good gave, always managed care in the that

is combining a it’s thing away COVID been two that of think over situation to got well well number going puts our the prior back I we’ve the you do in those that and I at good sort very, from care very franchise, part, that coverage if other say us have in So submitted of that standpoint. managed one authorizations ties very growth XXX,XXX. look for will

you these -- standpoint well, because are care interested first-off, a that in was So from products secondly, shows medication but that in shows it a that unparalleled highly you managed think, that issue, ophthalmology. frankly is I physicians real number,

I why in it coverage at of decline. us as a care that’s are continuing improving, and, managed look putting to good I continuing COVID look improve, So to course, position Louise.

Louise Chen

Thank you. Okay.

Operator

next of America. of Jason Up you. Thank Gerberry Bank

line open. Your is

Unidentified Participant

I two. is Hi. had This for [inaudible] on Jason.

have positive one congrats on that. Phase which trial, you So so Japan, is so III, on first the was

the forward, status of of these Santen doing would that would include I program some it the think be studies. curious also Just mentioned what’s going you Rocklatan?

So any kind associated one like that we That’s with to milestone when can And the one. second around normalize? that. margin, is first expect is gross there more the payment of

Benjamin McGraw

Okay.

of to that, for yes, already Jeff. in to through price Santen, you’re Athlone the in if will So the milestones, tossing previously I’m are Then regulatory terms the from Japanese royalty transfer manufacturing asking partnership process stated the them Japanese they about and we’ve remainder it carrying products I we market. the payments, of yes, with think beyond the achieve that over

Jeffrey Calabrese

Yes.

been finish we’re and stated was so question I with in to normalized -- XXXX. So that quarter be we expect to consistent XX%. the margin, gross as remarks, around we’ve at as It’s of year that think out second consistent very where prepared for I would your part this I each

Unidentified Participant

Thanks.

Operator

you. Thank

Oppenheimer. Brisebois have we of Next, Francois a

Your line open. is

Francois Brisebois

fun questions here. to answers been listen It’s been and questions. the have how taking to for Thanks directly

question, quick to an a think answer Annabel. this I was Just

million partnership. Is or XX characterization? upfront with million to potential out $XXX are we more XXX that of kind $XX You that at kind of of of milestones mentioned speaking is all the a an to

Benjamin McGraw

etc., Yes, on it will of upfront. cash, that. royalties, milestones, Pure top be

Francois Brisebois

On top.

in And and just care managed help that Great. I keeps mentioned steadiness -- prior of it’s versus is wins, on then had you us the getting think that Okay. pretty comments this just the hoping here, terms happened Tom call quarters, steady the we’re the or understand it the here? here have you maybe changes the can going as better, say and

Thomas Mitro

is it thanks think for way. question, by I well, No, the -- the

where we are normalized now, our by physicians through we’re so any being steady I has managed don’t much hindered that think longer. care and view pretty it products been as time pretty

you’ve that and again sure that about that, remember they making to just that repeat continue got think so your they over message understand products. to I So but over

has influences make instead that And on it I chance pretty focus or I really consistent last two. to before we over a that, in shape the on And good doing. so now got just of physicians to I focusing again, and everything said, that have and like think think COVID call have on understand were that what we’re they been sure

Francois Brisebois

absolutely. No, Yes.

stability maybe that past, be potential here on mentioned kind still the And per overall, the clear stand? so thought I that kind down, price there’d Is in terms the probably uptrend. are some bottle pretty you up had comment of do where of at an variability net XX, but in and we of or we

Thomas Mitro

prospects future our we’re I paying. reduce way, managed Well, to to the comment specialty can’t negotiating where let like looking rebates of really it to at put point. the this still on entities are we just with amount me that care we’re forward this But continue I and

see pretty this but you or and progresses. to our we’ll much that success I and -- me telling be let I area good that we’ll progression said, about more as like I like this next how think So don’t I think shape more as think at chances I be some I point next when, want year. year we’ll for in say in

Francois Brisebois

can cash How ops based or higher that of much in much, would two, around said and or comment the maybe a to quarter here? big basically, some is of net are these trials in been guess. it’s safety. trials, Great. Okay. if the cost -- parallel asked, start been $XX of much but not from cash, a the there to on here revenues the with then repeat just differently you any one, done this too expenses? expenses And I related to to start the sneak a change Are that eye, based you I’ll of pretty you potential these costing XXXX, not more trials has last what just is expecting In here? of ramp So three programs, actually the million -- trials these lot on trials on dry got but burn not on

Benjamin McGraw

to me. guidance sounds It like

ones Yes, trials. program. starting are it in we Yes, yes, short the staggered. So, be will involved ones and there’s long

Jeffrey Calabrese

guidance, I to burn on that logical don’t But that as right we IIIs it’s logically, add Yes, we that giving incrementally Ben, increase. do think I’ll beginning only of XXXX, burn. that, without and certainly Phase rate cash these have first only will the half

Francois Brisebois

thank very you All much. Okay. right,

Operator

of Fraser now Instructions] you. Greg We Thank have Securities. Truist [Operator

line open. Your is

Greg Fraser

a of for EU folks questions. pricing on timing to up Good follow make and afternoon, I a in Germany that the Is considerations countries or there process the partnership. simply other there negotiation matter other thanks would the the difference? want discussions or are taking like

Benjamin McGraw

negotiation all. pure just it’s that’s yes, and No,

what license. have you’re know than so the you’ll I’d the thinking a you into this just Just -- though, bit mean see can’t to that. you’ll and little looks a so everybody before, I this I of when a wait bit point yet, mean details which going straight -- straight it’s of you’ll see as beyond at more more I’ve you just made deal, get just But complicated see than it’s do I as quite the a license, see. that, deal,

Greg Fraser

then can wait. III product we help plan you discussions data? once development partnerships potential is inviting or Phase the to to have then Okay, fund and are that with consider AR-XXXX, And the partners alone to on you go

Benjamin McGraw

what’s for be had another best what’s guy step job, and drop soon the that. new has as informing regular all in came meetings since of this out -- came look We’ll everything. at be with I be into on when one you discuss been all the our changes assumptions, shareholders. And I to but in town any everybody plan Board we’ve your we strategy. working a I’ve We’ll I’m I I any back, mean, the had make trying I a not ourselves doing Board. best Board even overall of to studies since do a not to let’s figure chance just ask along for the as to we our so taking meeting in So if -- in so going shareholders came back, the take that, we’re step to the so in,

Greg Fraser

Thank Got it. you.

Operator

Thank you.

queue, the to As there Ben questions turn the are over I no will closing back conference McGraw further for comments. in

Benjamin McGraw

like reiterating Okay. end beginning. to made Thanks. at the by the I’d five points that I

good commercial have we performance. First,

Our projections. share two are products gaining and commercial hitting the consistently market now revenue

partnerships, enhance Second, will that sheet. we ex our US products our are via leveraging balance and

development, the execute Phase behind in two Fourth, to plan. you Fifth, we’re a operation a pipeline differentiated of to all today. have products financial well-functioning want for and we strong have we a ready good business joining clearly our in them. position Athlone, call adequate Ireland. III Third, thank resources manufacturing We have in

Operator

today’s you all concludes Thank This conference participation. for call.

disconnect You a pleasant have -- may and now

Aerie Pharmaceuticals (AERI) 7 Nov 212021 Q3 Earnings call transcript