AYTU - Earnings call 1 2021 | Aytu BioPharma, Inc.

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Operator

Good afternoon, and thank you for joining us for the Aytu BioScience First Quarter Fiscal 2021 Business Update Call for the quarter ended September 30, 2020. With me this afternoon are Aytu's Chairman and Chief Executive Officer, Josh Disbrow; and Chief Financial Officer, Dave Green. Aytu BioScience issued a press release earlier this afternoon with details of the company's operational and financial results for the fiscal second quarter. A copy of the press release is available on the news page of the company's website at aytubio.com. I'd like to remind everyone that today's call is being recorded. A replay of today's call will be available by using the telephone numbers and conference ID provided in the earnings press release.

In addition, a webcast will be available live and archived on Aytu's website within the Investors section under Events and Presentations at aytubio.com.

Finally, I'd also like to call your attention to the customary safe harbor disclosure regarding forward-looking information. will strategies, forward-looking potential beliefs, of BioScience. today regarding including operating call Aytu goals, the expectations conference contain statements, certain statements results The and future

other assumptions result statements Actual the but XXXX, time factors any X, statements of at results webcast SEC. may are future statements. and or based Although no today, of these are differ replay. obligation guarantees any risks, may revise factors company's in update Time-sensitive these no believes as to the including, of telephonic a these limited forth of on management the as the with to, Aytu estimates, performance. not undertakes forward-looking and not of longer projections or uncertainties materially set October filings accurate reasonable information be

I'd turn to Disbrow. Aytu's call to over now like CEO, Josh the

Joshua Disbrow

joining company afternoon. call. for was quarters Kate. the Good the The Thank strategic progress. one operational best of on fronts during excellent accomplishments. It period in and and Thanks another ended X-month we update was which multiple you, QX XX among in performance financial September made for history fiscal and company XXXX quarter terms strong today's

of was pediatric products, reporting Importantly, full heritage the business. portfolio integrated second just Innovus the this and the businesses of the prescription the Cerecor quarter Aytu acquired Consumer Health

of to distribute agreement the a an added test. we signing offering antigen COVID-XX Additionally, through another rapid

over second quarter revenue revenue our that $XX.X now same history. We study highest our perspective, results. important and We with the of represents very a growth in have clinical year. I'm quarterly program also quarterly of XXX% This with Healight advanced the posted million, last financial update. From underway pleased an

consumer health these now expanded newly quarters. full business display is our So Rx last X on and

the division, quarter. million this Health quarter, million, high up was $X.X reported Consumer $X.X last which from revenue from we all-time Importantly,

EBITDA the XXX% million division, of revenue second terms Rx profitability. same demonstrating For just highest we entirely $X.X up lost that history we revenue, in We real-time an this an level. commensurate operation a an from on posted year. in last new million in the and taken And now Also quarter approach We've narrowed as lowest basis, we're history. of we've level cash a from adjusted at quarter, that, continued in loss adjusted combined new to our $X.X of posted quarter operating we is with loss. Quite been. our burn and narrowing our we've entirely simply, improving where

perspective. Finally, we're a from well cash positioned

that, restricted year. Deerfield part as keeping million little that and $XX a cash is off paid equivalents, have been have last purchase payment million balloon in under after from cash balance cash, of Cerecor what $XX in We the mind that remains we asset owed the cash

hand lead in on as now detail me that financial So some the call with highlights, quarterly our over to and the to Dave Dave? let additional provide results.

David Green

thank Thank Josh, you, all and joining us today. for you

acquired are Innovus new year Our XXXX includes the recently segment, Aytu, and segment on the of Rx full which reporting Consumer we line fiscal fiscal million quarter $X.X first year. first quarter the over the increase second Health for QX and of are net happy nearly reported a net quarter last the with representing QX XXx results. Top we million, $XX.X the for very revenue was represents revenue

EBITDA million to $X.X the adjusted $X.X year's nearly of $X.X profitability adjusted EBITDA to million progress million towards made QX also during QX quarter gross compared loss $X.X of strong ago last quarter. in only year compared the profit We with an million. was loss

Our QX margin for gross XX% QX to year. profit compared XX% was approximately last

million slightly the than cost for $X.X the business quarter. than as in sales was gross segment. Operating business amortization mix. is year on as Health Rx the gross $XX.X lower in The is margin ago to XX% margins segment expected profit expense to Aytu Consumer gross and to business QX margin lower our noncash stand-alone combined range, excluding somewhat reminder, a XX% combined generates of Rx be As a compared does expense, depending million profit the legacy

expenses compared when operating not it's while were Now higher it's clearly with we're today year. and that operating we revenue last far scale compare are -- quarter, that more clear this OpEx, to clear we greater efficiently to

this expense, measure As that almost approximately X.XXx, to revenue expense cost operating of than amortization the approximately for to a of increasing sales year's last excluding ratio stronger is of operating Xx X.Xx. QX of and year of ratio revenue efficiency, was

at with control. perspective, of loss EBITDA able improved cost to compares for QX, acquired adjusted by run to quarter's proportionally look million favorably were loss accomplish and adjusted narrowing $X.X which profitability of using again, the another $X.X year's greater from duplicative operating scale absorb We last adjusted loss. $X.X EBITDA removing million, a a EBITDA million growth last operating a efficiency, on from For focus business was our this losses operations and expense and to costs the continuing to less

was $X.XX loss or million, of Our per per million and respectively. in share based $X.XX the compared on to or million for quarter $X.X $X.X last QX shares bottom XXX.X XX.X million of loss share outstanding line year a

QX fiscal revenue are quarter, last assets the prior while growth since million the same quarter million of this liabilities current time, $XXX of same meaningfully On for year, and quarter equity of ended and balance reporting at reducing our of $XX cash of $X.X million, by the our QX year substantial the reducing summary, million approximately sheet, end $XX.X we of we the over XXXX. In with the losses.

let top for for to turn continued growth do on with toward me strides profitability. With As call focus we forward, and a we back that, line the some clear Josh? over the commentary. so expectation additional move Josh

Joshua Disbrow

Dave. Thanks,

clearly numerous we're So and highs Profitability with sight. an had reiterate, our low for we in fact the and loss that quarter. to EBITDA pleased the all-time performance all-time is

updates the for operational quarter our and many. to are turn I'll there Now

business, Rx place increased in COVID. been the the activity saw our First, most September we quarter, had representative to for many when quarter the sales due previous business. the Perhaps from sheltered Rx importantly areas in

we open quarter, access more up this had physician quarter to calls than saw we got we face-to-face start in previously. and This

While still levels, quarter's quarter. to as largely late the revenue encouraging. the kit previous increased sales, had by case was of pre-pandemic The test Natesto COVID-XX Karbinal driven not Rx been in activity is the as back Poly-Vi-Flor, and

forward, revenue We We of expecting the the the expect we these are going across Rx numerous of drive side core portfolio. developments had the on bulk products the business. to Rx growth and

efforts. with First, progress We substantial as our relates it Healight. made COVID to

of were officially delivered to development devices, clinical and study devices completed partner happy development scale with the site product these investigational Our today the and Healight the Healight share U.S. I'm now underway. our clinical in used is that manufacturing pilot to

the shot study European expanding Importantly, share also U.S., keep planning to is first results Healight use that are without we successfully for Healight. agreement laboratory to quarter, Like that been been Pinnacle FDA, equipment. Pinnacle's this with participate we investigators use our COVID-XX the pleased to now authorization as antigen of process is patient excited has the study and about Europe, sample virus the significant you distribution the done the COVID-XX say to in updated relates up sites This minutes, antigen and underway. Also the the announced the in from test a distribute presence and rapid submission in signing nasopharyngeal device, the for now to sent and to it a interest study XX U.S. efforts, the treated of there cases first of which in have that least. I'm has clinical we're the via development, COVID-XX. rapid gets COVID-XX and as for underway. study. that test emergency we delivers test, We'll well

clinics test announcement to we the nationwide. the announcement an announced which antibody underway. to in agreement we relates of is the initiative our mobile early Apollo and quarter, distribute Med We it followed that medspas Apollo's testing about test now Innovations distribute, with launch As with to the aesthetics

study start So first to of Healight the underway, progressing with study. and our are the soon, European highlight well our first that expect initiatives the announce COVID-XX we clinical is

those We're in relates and are see Their calling sales Rx where of promotion. primary of on to active it to focus are our the was partner, to the They U.S. team fully sales beginning team. detail and impact Acerus presence care Rx second able co-promotion business, efforts. now the it our urologists portfolio quarter specialty to sales full into offices their As we team an launched Pharmaceuticals, enables specialty our U.S. leverage full our on endocrinologists. core quarter. their

calendar those from announce the As payments in or Teva, in and of payments current ZolpiMist is SUDA the now we collect U.S., partners ZolpiMist preparing engage licensee and approval you QX ZolpiMist, was and and it Australia. SUDA remind ahead are SUDA the the of commercialization. This to commercialize for gained now is that relates that pleased the for is product TGA and royalty to to for able approval I'll Australian to milestone outside with we Pharmaceuticals deadline as royalty are and submissions Tanabe Mitsubishi Pharma the global sublicensing expected Korea will Aytu yield respective deals TGA to in they commercialization any parties and milestone to These, their around to enable our licensee. through Singapore, with part partners, advance agreement world. This do towards their territories. as SUDA direct SUDA assist SUDA's approval turn, in MTP

productive a the Rx just I described, as quarter So division. was for it

team division. The products growth as hair OmepraCare Health team revenue quarter. these alternative, for launched good. Innovus' making competing again lower established cost-effective health progress, with in acid of by e-commerce Innovus competes high that in September Prilosec. from competes are of loss is and growth the X Both very turning highlighted large brands, ANDAs and revenues their the they brands the is Now categories. Regoxidine And new against consumer Consumer the quite for large platform. through all-time and the We both OmepraCare achieved over-the-counter product markets Rogaine the for to good Regoxidine prospects fact consumer ahead reflux. and expectations launched X a launched Augmenting are

Healight portfolio milestones over such achieved those growth continue the and the are this moved in continued potential of of Innovus quarter million based an XXXX, our fiscal the the growth agreement the annual the will additional achievement highest to second Additional lowest the coupled terms launches, although health signing it merger for numbers out that test, new expanded are management for along portfolio agreement earlier milestones and current the drive be not product businesses expected quarter we highlighted years, Pinnacle with first organic that distribution up reduced next strong. division. I'll adjusted to and we would that for highest of active to the $XX the Consumer achieving revenue acquired planned revenue of net as we loss structured in by that the be sales for or consideration history, from was through summarize value from significant the we $XX of remind with Health to consumer contingent the -- each through launches milestones inception. and business the was advance go into also these investors core several forward, consumer see which current either It agreement are year. We clinic, rights since revenue, paid income company's COVID million, each on we our level year, our EBITDA guidance. To the Rx

the our to on integration levels analyst through open I'll around. I'm and our taken questions we businesses. With new for out revenue an I'll quarter. I'm is doing, of all proud progress close received Continued website. questions comments, up the page congratulate that them and our Kate? to and work X our to the Investor that, entirely excited I following outstanding team the have of

Operator

question today performed into the any you about Our consumer business? e-commerce for strategy types site. from best? of first investor And talk what the Can insights products

Joshua Disbrow

talked It's expectations revenue sold easily to they're strongest common type timely, and a platform. just sets both alternatives Regoxidine Thank well e-commerce performed schedule you in some very new progressing as of the of performers are X well. of and our larger launch ahead the about in This well, up our to of e-commerce OmepraCare, very And of play space. ANDAs that meds ANDA are seek that are the internal over-the-counter very OTC among on for of brands. Yes. terms question. products The as product the consumer online low-cost like They medicines. those consumers I online

think leading Walmart, the store And something of so good even price national you able brands than will be a might to strategy growth. or some we that lower drive to to it's at one been certainly see continue marginally and Costco brands that the or

Other horizon that for expansion portfolio. well. of to performed they products like company on the again, that, So are specifically, other enable ANDAs the

that how platform. we forward Thanks to build e-commerce out that looking for continue to seeing So question.

Operator

live question to concerts. Is Our a with to like the testing expect after to from web. COVID is even be going reportedly before next do fair events testing COVID vaccine? Ticketmaster then it us

Joshua Disbrow

Yes. Thanks for that question.

belief first it's away. a taken is by number is people's many still that all, So of broadly of vaccine a distributed months people large that

much And all that all of over know with fray and in so are still COVID. the obviously, to We spiking we're very world. the all over the cases cases country respect

So before, to people control. continue Most under of year. even the next yes. it's gets well people on is the into number who unfortunately, that the the answer believe vaccinated, get beyond a testing that. And while the pandemic perhaps question short But will depending

antigen anytime both and antibody as no COVID to distributed the to require concert. XX have we'll vaccine Obviously, of the broadly use that's be prior hope entering Ticketmaster, for not be the proof of a context can year. things even goer access case in in have and positive to be opening back as will laboratory the that well think example, continue vaccine likely equipment. without And used, an test, the very we positioned that a rapidly demonstrate offer into very as of as soon. to to test those be will us up, it specifically of and/or We effective to to proof is preceding the well for we hours concert an well calendar proven heard to think next we So deployed be test that

concerts, have getting before. to going what people's concessions, back in interest obviously, to to one there's getting will tested they be, get which of So back to normal, to be like doing some to of enjoy going

represents obviously, us a opportunity our rapid And with kits. that, continuing so for substantial test

Operator

on Can web. provide any the non-COVID from you additional question and process applications? next uses Our COVID and updates Healight's for

Joshua Disbrow

device. the It's well. simply, on Healight We've be very to schedule. we is process, that updates -- is So That for really of partners. second said presenting and happened wouldn't lot lot last trial much on sites a the the promise having said, progressing progressing respect of for clinical out up a very our call providing itself has our been and the with

study and center undergoing U.S. site, we're As with site is I in Healight mentioned is ever study, at currently safety my -- underway. first prepared very doing study the clinical is a going how U.S.-based pleased single so that comments, a it's far.

specifics, While recovered. been simply we're the has not in a liberty to can give I and has any say treated patient that

given around to So And respect to clinical world with and uptick becoming couldn't broad site. with respect continued not in interest there's obviously, interest, we're sites, getting obviously study expanding a -- we the It's recent very in that surprising the be happier. cases.

have before from death are a This nosocomial And around of the I've past, light, opportunity in of patients you to It's treatments, intubated. ventilator-associated pneumonia. every of UV a in said go ventilator-associated pathogen, it's obviously or about for think being respect this they're eradicate to be sinusitis as outpatient is potential about them application. would applications studies patients, patients, that get Europe, large ventilator-associated Americans world that influenza in consequence name sick as potential being thousands one a I've in cause as in to whether hospital you when every less large similarly pneumonia. via we a there's a to applications. essentially cases severe treatment consequence with think factors, for Consider VAP. after no outside non-COVID that position and really wide for quite of So There clinical effective severe It's very population, nasal to be VAP. practically with we -- of this setting, The those begin a field potentially many with about Healight, there are really you intubated pneumonia. a the application, particularly, good of get something we're year ability infections. Again, of excited terms And obviously, enrolled UV the expand VAP. quickly It's to is with as well, present patients would can. And the the an leading of the risk other infections spoken have treat It's this that die respect of specifically, large device. hence other the to open certainly in many, setting respiratory full playing pneumonia. for related cannula, number potential applications lot to able in being we the the intubated, There a in potential opportunities full common have type well. that beneficiaries rights commercial to. of Chronic application of rights light

way that bigger. it's as could it COVID-XX. where obviously, hoping we the could to it But vaccine gets as term. we We're and near promising -- a to obviously, COVID-XX Healight entirely we game beyond So definitely applications expect do We recognize the away, applications is where fight as this, underway, beyond jumped to be in in COVID-XX it go we changer most hope, even starting. enables the that. the for be, obviously, it's are much against It's COVID-XX. doing in a

so on late focused it COVID-XX behind So a that data forth. stages support it we're planning That's the of Again, to get near said, clinical most in and enable study. going we're what's the term. in to still the to submissions European

have we so underway. go beyond well the And far just applications for well, doing we recovered, that patient's think, opportunity honestly, First this. and

about very that, the with applications. So excited

you came speaking forward wrap shareholders. things our next we'll Thanks web. up. a and earnings our questions develop evening, as time. to on thanks Thanks for hold and to Until the further Thank you today. you We then, everyone in me have that let for to of in February. listening through look that, again call, So with all your which good updating these for

Operator

you, ladies today's gentlemen, does Thank call. and conference this conclude

a You time, participation. for lines your and may have this phone at Thank day. you disconnect your wonderful

Aytu BioPharma (AYTU) 12 Nov 202021 Q1 Earnings call transcript