OPNT - Earnings call transcript Q2 2018 | Opiant Pharmaceuticals, Inc.

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Operator

Good day everyone and welcome to the Opiant Pharmaceuticals Second Quarter 2018 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to [Brian Richie]. Please go ahead, sir.

Unidentified Company Representative

Thank you, operator and thank you all for joining us this afternoon. call Executive today's Dr. on me our Officer, Chief With O'Toole. Financial Roger Chief David Crystal; and Officer,

to filings. Reform of In This obligation this the update Act. Skolnick, These is covered caution date Q&A circumstances that after under business. forward-looking also this August Please call. conference Safe XX-K broadcast of Dr. statements Private information and December financial discussed the also statements XXXX, Opiant on the undertakes the conference addition live Securities uncertainties this the forward-looking XX, second the of Phil the a Xst Opiant in certain Litigation report X, statements statements August XXXX. of reflect to looking results be Officer accurate statements. only Chief and SEC revise time issues during events or Opiant that no sensitive is will call June business due available call information subsequent today that will with and cautionary or period to qualified and Scientific differ at Actual quarter news providing on during as any the releases transition by update release contains ended including the contained associated note company's the to risks date filings, news for management results session. are Form or a stated these be We implied those forward Harbor afternoon will listeners forward-looking the This Opiant announcing could provision call from be for by materially as XXXX. XX, making

to turn like I'd the to Now Roger. over Roger? call

Dr. Roger Crystal

so good company. lie On the call are is and to on Brian, about today. to provide first our us joining the Opiant ever ahead you why opportunities I'll a we today's that earnings excited overview and call who brief on everyone Thank afternoon

review financial products I will will each core our David of results then discuss Following this pipeline our detail. and in

questions. begin with call position the of dose Finally, we addiction me Opiant's your open company. providing up you for Pharma antibiotic an specialty that over With let and as will focus a brief leading overview by

development overdose stage addiction a stream the from growing We with from focus of spray. are on Pharma and specialty NARCAN company on a royalties net sales drug nasal revenue

that are is the developing to who of a addiction millions from company treatment. unique patients medicine We urgently require suffering suitable

addiction. markets substantial within multiple unmet with of area the target products Our needs significant

developed of is term Importantly, while we in opiate and we the emergency nasal a excited about has potential company substantial that. which the investment most overdose treatment our driver Opiant's for our spray for extremely be growth pipeline longer the are NARCAN to

of use medication a brain first-line for U.S. Nevertheless on are effective effective and Surgeon We the on just XXXX medicines. General color essential reported term through nine substantial developing focus longer addressing is bit treatment First and of better patients our treatment. in market. though, Addiction and a the tolerated and disease target unacceptable recovery the treatment as prevention. in that more core our addictions the this view appropriate as received is with a gap one relapse

trends a products I favorable including further NARCAN overdose for discuss will drug significant emerging and are legislation in While existing regulatory which moment.

$X is overdose to and issue cause leading choice be manufacture. over than age and become the XX. co-prescribing potent with deaths to grow a crisis. in the Unfortunately total Our XX to and analgesic expected abuse. Quite approximately significant were addicts overdose is of all and opioid opioid X across cheaper overdose the opioid Opiod now is the large of of this public under reversal markets opioid United Fentanyl the the simply related There American increasing million heroin We the XXXX prescriptions. worsened death is opiod an has XXXX. There addressable fentanyl in has States. XX,XXX number could market opiod of be in health as opoid more estimate continues addressable are become times initial in target the as easier stress opiod higher overdose. agents addicts is reversal U.S. epidemic males the agent as This billion. market includes alongside also such and opiod for responders [indiscernible] yet has

support we are opportunity the and we So our clear and to patient grow to well is that believe positioned business.

expertise antagonist via delivered nasal is opioid predominant developing Our Opiant spray technology.

went Pharma. tremendous developments market partner has lead U.S. product Abuse involving from capabilities Opiant minimal space. of Drug will fund ot including OPNTXXX, an treatment is product in opportunity. NARCAN of concept to of position spray at a million is or candidate. NDA ETNA further insurance $XX.X our recently This internasal under with strong from nalmefene, Pilgrim. in of stock end position strong the CVS Health will this NARCAN co-pay for the the stage. second our a zero awarded approximately opioid available our of and and years of Harvard million and Adapt opioid beyond is X.X National National the and cash approval commercializing the by in financial overdose the through All NARCAN antagonist approximately multiple grants plans pharmacies of for also of OPNTXXX Canada with and This demonstrates financial to This enhance three and Our the nasal the development unlocked Institute long-acting sheet ready balance quarter. company's Institutes grant the

study OPNTXXX of two come for our expected X results studies to for for Bulimia believe from Nervosa sufficient completion a we - other the OPNTXXX product candidates So our and Disorder. Phase Use financial are and resources registration for OPNTXXX Alcohol to the

I'd career Directors. to to for Biotech results. now has in review call of Rich like year XX Before our Board I discuss and ask the a financials of Pharmaceutical turn that David Daly to financial over launch With to drugs welcome XX during the I'll David his Daly successful of our Rich the supported his industry.

David O'Toole

over the you, you Good that growth the for afternoon significant sequential recorded our Thank XXXX. and highlighting quarter attending begin revenue I'd Roger. all of XX% we like call. in in second conference royalty by thank of to

precluded balance a our While current in financial increase the discussing we with Adapt grant revenue actual potential the show half balance revenue this X.X in in the foundation up NIDA of of position. healthy royalty awarded royalty not the our further year. in recently and the agreement growing which under projected our are With of quarter does million, confident or on base a we sheet license NARCAN sheet sales for NARCAN from our success are strong second second provides

at were of eligible on results sales NARCAN XX XX required our out Capital monetization of XX.XX our receive milestones the to to Before based Opiant to between net license financial and like with pay NARCAN million buys agreement payments milestone in which these the royalties. I royalty Adapt under summarize review XXXX. would annual milestone and announced payments SWK. million that briefly year SWK To least we calendar sales million note total I we in we are Please terms the under agreement date, of have a one-time to of received for

would on in XXX payment a be Adapt final year. sales in million NARCAN one-time net milestone reaching for calendar million is Our and XX based

rate buys sales royalty out. of based Our is NARCAN on ranges net certain

was diluted an decrease X.X three of June XXXX million recognized number. X.X With to approximately XXX the three million recognized X.X revenue million due ended X.X ended to share net of of and $X.XX and royalty royalties sales increase XXXX. $X.XX would XX, XXXX, monetization from and general administrative million XX, are a period the G&A primarily XX% increase by the June sales us three revenue million to increase net in ended June XXXX; a the and first per net XXXX, the in compensation, blended sales stock primarily share sales months X.X of or for the SWK months in rates months million and SWK; basic due months eclipse as XXX rates million year the expenses and compared that from XXXX, a and in X.X if calendar for from salaries R&D in royalty in during between our June expenses million; payment three period salaries XXX per agreement third-party was three royalty was expenses basic payment and for for agreement the income and NARCAN; quarter X.X was NARCAN Opiant to XXXX June related of from respectively; XX, increase X.X and SWK the sales by increase to ended million Adapt respectively. X.X% in in and license XXXX net million research XX, NARCAN briefly and between that per on now of loss employee offset million, XX, in sales sales in when June employee the of the $X.XX one for million Opiant by million share, months above royalty comparable X.X during our an were Net XXXX and million Our recognized million year, of for in the the The million an second X.X XXXX, and increase X.X stock based expense three to respectively. of loss approximately June This the NARCAN Adapt. and expenses. months review X.X of ended of company related any X.X The income development provided or X.X the right our diluted results; revenue for XX, I'll expenses comparable Adapt million for were X.X XX, receive X.X% arising compensation and and ended based in calendar million of one-time company

June for months million revenue XXXX Now let's six the we XX, recognized period the in results on revenue. we X.X the ended comparable of ended XX, and million X.X June XXXX, of months for the focus recognized XXXX six

from of months the its between sale to and Adapt XXXX June to Adapt. royalties royalty for us recognized XX, XX, the sale reported ended June X.X SWK six and XXXX, arising right license by months the the agreement during receive sale million ended the company NARCAN; the of During NARCAN X.X from revenue from million six the Opiant

was to to months increase million XXXX million XXXX X.X expenses payment royalty increase the Adapt development X.X June X.X one-time this of stock expense and parties. fees the the the December were earlier months based by XX.X At million X.X between Opiant in license June June June XX, X.X increase increase million agreement compensation, SWK program. X.X of our million and were fees with in obligation XXXX XXXX fees six during six XX, and were SWK. corporate XXXX for or in license and were million the X.X we was XXXX. mentioned XX, and the X.X X.X with respectively. due million six cash June for approximately in Adapt million the X.X million X.X million was monetization million XX, XXXX, months million from under agreement primarily personnel increase revenue stock associated of million million to with third-party ended to development The The X.X for overhead. X XX, relate to License increase based X.X expenses had as X.X in ended There no the at cash XXXX and expenses of under respectively. and approximately for was and R&D associated certain ended XXXX. attributed provided made XX, increase million payments a million compensation related ended compared and equivalents six months third Research As license G&A June and

support now to the and position. said the nalmafene XX, the I'll currently tell the balance as We call June in the In X.X our this previously, however does for three we intranasal does planned to Bulimia the Roger? and completion Nervosa Phase of NIDA million X sheet. financial conclusion, activities story studies Roger ended sufficient through grant disorder. grant his of However, full registration this on pipeline. not as study indicated back of appear recently receive review I our the our months in awarded did Roger financial earlier believe majority our the hand resources completion for alcohol are of use our not XXXX. on of The $XXX,XXX

Dr. Roger Crystal

to use the be allows Thank overdose whether overdose you, easy David. Opiant has we changing nasal to development addiction Nervosa and has believe patient determine nasal spray be of for of of the of patient game adherence that drugs should delivery processes maximum time can to and a These optimal medicine. timing also important delivery space. rapid outcomes. potential medicine use programs of in increase Bulimia we an patients' takes medicine use which medication important and the of on This to amount when at survives. us alcohol The the a and when allows delivery are drug the demand patient is a resulting to the delivered in better believe disorder compliance

more Let me are the OPNTXXX. With such synthetic longer again overdose open of most XX% needed. reversal at with opiod fentanyl. than look as from increasing In closer fentanyl agents XXXX overdoses opiods contained acting

containing positive each formulation clinical a formulations announced Earlier intramuscular that stronger onset has from resulted potently comparatively top medication fact, and X leadership very in an synthetic of levels of the In NIH only life with Naloxone data that of treat of claiming that the available X.X of X year. to currently half enhancer approximately now opoid absorption overdose an of lives development intranasal high OPNTXXX longer rapid life opiods study hours long hours. a FDA the year faster to are Phase hours. in acting to plasma this nalmafene antagonists increases the proprietary for injection we an counteract recently a X.X called thousands showed

we the suspected in full more with and on an path the FDA data approved sets million we have pursue believe preclinical that related drug intend combination in feedback device XXXBX we the to the rapid conducting project would and opposed studies clinical which with I limited required. a a and we own for by our their these that development XXXX. array OPNTXXX. earlier. submit of safety confirmed studies With to as NDA findings In to limited we delivery emergency will XXXBX with a overdose. services. injection satisfy findings hand previously a a these requirements Shortly and for to The on grant rely FDA development FDAs meeting and in anticipate company long were product treating approved the the meeting relevant acting was plans we for regarding Nalmefene to or conducted efficacy path with allows FDA opioid to development internasal way previously to potential part our to fentanyl supplement referenced access also FDA's of FDA be awarded typically after of X.X to summary NIDA investing overdoses especially the Based

grant. received We this further have the will These courses funds drill advance of recently sequence $XXX,XXX first OPNTXXX to the be development used initial the of down formulation. to subsequent round from in

NDA submit study we genetic Forming referenced these of position initiate confirmatory studies the previously in to formulation This XXXX. promontory intend completion us to the in will XXXX.

full retains Opiant OPNTXXX. of Importantly commercial rights

X.X market the eating represents treatment shown products need and very competitive address oxytocin potential for patients market and this billion impacts X.X of Americans approximately it million OPNTXXX Our very demonstrated disorder. by Nervosa indication is has suffering a drug efficacy in which for second for a a an rapid characterized Currently the only profile opportunity already attractive addressable unique for may this the from development disorder one eating xoxafene development however absorption binging approved OPNTXXX of which candidate Opiant. together Phase product has strategy Bulimia with few limited is currently purging in X Nervosa annually. Bulimia

may expect Bulimia We attractive with of This as in self OPNTXXX first Nervosa commercialization. also be ongoing our XXXX. Phase study from data the the X quarter indication in

is for suffering abstinence. for AUD improve unique a and tolerated compliance. large from better taking Alcohol XX.X drink an accessible receive drugs require dosing is the urge increase the XXX,XXX to from and opportunity believe market X.X needed Use We more medication tolerated has XX patents without annually. improve pharmacotherapy. approximately because the which demand OPNTXXX it basis Opiant abstinence. This whenever treatment or Moving effective need need million AUD. patient that purely prior Americans and regime specialist would approximately for need more potentially to of onto prior the taken million Of and should another meaning on on and with number Existing medicines as outcome. however This disorder OPNTXXXX subscriptions are

In suitable oral dosing. when for that nasal addition generated available is for rapid drug maximum the making ensures OPNTXXX its needed. of nasal company absorption the demonstrates versus that highly has already pharmacokinetic it data absorption amount rapid on-demand The encouraging

the currently effective support for the at of path and study To X to formulation the enrollment expect candidate our product our access over with in to thosands XXXBX supports Phase targeted We're XXXX. medicines believe each activities please harm we're summarize provide of operator -- pipeline OPNTXXX endpoint. would as is will OPNTXXX development the the Operator in I primary where initiate potentially the to to we're a with and now the reduction a patient the engaged We Importantly drugs FDA products markets currently clinic. this is advancing turn in potential also products the large instructions? limited. save excited have session. I begin Thank to developing call you in continue the lives you. and Q&A to

Operator

Instructions] Cantor Fitzgerald. hear Folkes And Brandon first [Operator from of we'll

Unidentified Analyst

for the OPNTXXX and us it's progress on the good through the congrats all talk Arthur quarter, Hey benefits the in over potential Brandon some could afternoon, of you NARCAN? for

Dr. Roger Crystal

fentanyl to cheaper this lies and course heroin with not of seven half is so deaths overdose an only the back also to compared life know make use increasing far don't of hours what that's with fentanyl study, longer, the know purposes match done that deaths what a is about and we much is we potentially it address therefore that fentanyl it's but actually is the fentanyl we and not there easier overdoses of potent believe we've goes but and in how they've the we acts think definitely issue from frankly if opioid from it a and order evolving half is opioid coming overdoses don't you we so better direct address. comparing do more fentanyl OPNTXXX arise to overdosed number for overdose to we've similar this FDA are OPNTXXX the XX% on of obviously Well to approval of can probably the need but crisis opiod

Unidentified Analyst

also given sales And great. better sales that's excess potentially do $XXX, OX to Thanks, XXX NARCAN about peak OPNTXXX guys in is a and product, excess really? reach of projected in the than is of you more expect

David O'Toole

give I mean based us what continue product not out. grow opportunity think for but difficult it to first we not we see we that all make forecasting exact you to that we've anticipate [indiscernible] market we product attractive and the see very of a -- to the to done we the plays this got see that how we've OPNTXXX, will potentially attractive do market over and quality very today any do we've share for

Operator

will Investment we from Next Instructions] Research. of Bells [Operator hear David Zacks

David Bells

the So on question just NARCAN and you nasal market? co-existing follow-up XXX see last in kind do of a the potentially spray

Dr. Roger Crystal

NARCAN and the likely represents product nasal you full Quite spray. may just available calendar and FDA I the how nasal as remind of plays mean no market the until that spray year future reversal all, over the us we the out overdose approved NARCAN in approval products first and XXXX of the there be other to of and see sales FDA for up at there opiod they nasal well was time

rapidly or of out out you one plays believe is worrying many but this in years to couple was I that the going play going absolutely crisis put such and ways could important as market would growing forecast and to in we no have fentanyl in So believed and that ago crisis. play role and an hardly a it's this it's young opiod

very in this overall think confident we're for will if it say to sufficiently the time us, but challenging this the play investment going trying that that safety we stage even it that we're fact that without led nondilutive. million very So and and keep we attractive, product be $X.X consider is years mind is three market NIDA an opportunity is is justifies in investment this to takes be to NDA

David Bells

in they interested working the any is are the of products Now on? development company partnering currently

Dr. Roger Crystal

are but we've reversal further of to do of Bulimia not here and the an assessment we this as actually Disorder because market continue program a leading involve and today more these commercialization own near products market remain we there's are prescribers a so funding already an is Use set ourselves through term. the We for overdose better taking Alcohol to become ways to would that does of progress like quite as the vision very are the self validate we a that to addiction company not, much we actually with follow our taking option overall opiod well you right serves and focus and as opportunity with that same think along at we be we we and force attractive our to continuing deal as markets if partnership company but that have sales seen time attractive programs desperate through we and essential to in undertake and can being a the do we which could limited suit to

David Bells

lastly is milestone through is or pace paid as that really for do apply quick milestone so then and for supporting Okay out the XXX occur? you expenses grant reimbursement that as

David O'Toole

is This David O'Toole.

incurring expenses to funding we and so our actually have cash we on incur We those grant have expenses sure that we make draw as them. is the that to that are we can ability before that down draw the down

a the for grant year next of rest total million the and XX X.X there that. over the clarify to understand and only but you that then X.X it half would is is after to X.X next be months, make just Just is sure the

David Bells

For that start? year. XX this month did timeframe calendar When

David O'Toole

April.

Operator

closing to questions further And it additional no for are back and there this over appears the Dr. time. Roger any at conference comments. I'll turn Crystal

Dr. Roger Crystal

us joining Opiant. you and your for in everyone interest Thank today you. Well, thank for

updated the you. our ahead of We day. And keeping look that with your the Enjoy are rest lie you us. to Thank progress. about forward of future excited opportunities

Operator

today's does your Thank conclude participation. conference. That you for all

now may disconnect. You

Opiant Pharmaceuticals (OPNT) 14 Aug 182018 Q2 Earnings call transcript