AYTU - Earnings call 1 2024 | Aytu BioPharma, Inc.

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Roger Weiss

Good afternoon, everyone, and thank you for joining us for Aytu BioPharma's Fiscal 2024 First Quarter Financial Results Conference Call for the period ended September 30, 2023.

Joining us on today's call is Aytu's CEO, Josh Disbrow; and the company's Chief Financial Officer, Mark Oki.At the conclusion of today's prepared remarks, we'll open the call for a question-and-answer session. 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 issued earlier today.Finally, I'd also like to call your attention to the customary safe harbor disclosure regarding forward-looking information. The conference call today will contain certain forward-looking statements, including statements regarding the goals, strategies, beliefs, expectations and future potential operating results of Aytu BioPharma.Although management believes these statements are reasonable based on estimates, assumptions and projections as of today, these statements are not guarantees of future performance. longer webcast at replay. no any time may or telephonic information be the accurate of Time-sensitive not factors Actual result filings and but of may with risks, to results differ uncertainties other materially the SEC. factors, the forth in set as a limited company's the including Aytu obligation Officer to over Josh or Chief Executive to revise forward-looking of these event undertakes that turn said, the Aytu no of BioPharma. statements.With I'd update any like to Disbrow, please Josh, proceed.

Joshua Disbrow

or once I everyone, plan.I'm quarter second a thanks, quarters undertaken to for going ourselves ever to that the results and again Roger, commercializing we've adjusted of clearly I'm our along pathway was today another excited strategic to Aytu can to specialty on speaking been either such across us. focus Consumer continued X suspended of monetizing becomes initially positive June yet a progress the from with which until you, the plan that undertook announced indefinitely on those ADHD minimize proof our that those segment EBITDA company fifth the efforts started our we focused last go-forward a potentially to that EBITDA growing we it.As while this cash we're out unprofitable executing novel segment you sustainability internally with as operations strategic time progress thrilled Thank of team's company to position generated we've be segment. winding the our and we expenses pediatric positive path, and our deliberate did then and financial the this X the a joining therapeutics continuing R&D on composed we've positive and forward.The programs our business. year is EBITDA our we flow with pharmaceutical share when the products this company. is Rx efforts, Rx and We in believe year following would deemphasizing and Rx we I'm of through place happy segment, company-wide about Health clinical in commercial positive partnership.And initiatives our our consecutive this best showed adjusted and our where when this position now exclusively for adjusted down we of board, fund ago put focus on quarter that in is and

contract and Positive laser-focused also key team's RxConnect manufacturer and which get prescriptions, OpEx, and as for XX% are our manufacturing that and EBITDA compared Adzenys script the EBITDA operating benefit and materially. prior XR-ODT We are ADHD expenses quarters, commercial full innovative share effectively execution platform.From revenue with will flow, ability In to FDA the of or to approvals while ADHD prescriptions revenue of card, strong transfer we're to coming Cotempla down will approval shortly, growth, products and XR-ODT the driving growing fully we're our is manufacturers stop. various on touched standpoint, further revenue few site to $XX.X during PASs. We're first ago the quarters, patient to generic manufacturing supplements recent Cotempla Mark and efficiencies OpEx improvement.Overall, within And discontinued including focusing quarter XR margin we will on These to and the quarter. quarter. Adzenys and X million up ago as the ADHD margins disruptions have in I the year driving XX% in to the X our access net closely increasing PAS a and million a large stimulant year brands XX% to another improved $XX.X aligned leverage our been front. reducing generic be and improvement gross manufacturing in from compared approvals cash talked allow months, ramp the now of Aytu Adderall calling transitioned.As the generics our also on first discontinued improving for increasing Rx driver growing Further, products us executing XX% of of our margin their have no grew methylphenidate. ADHD done. past of we've in year, the the Adderall of impressive about results.During plan, as all past last brands measured This marketing over our few generic supply At XR is continue trends the and an ADHD our testament quarter prescriptions altogether persist, manufacturer methylphenidate late. first we is category which longer proud extended-release least several a quarter, and first is our on its part products I'm

these other on drug access from important X large have ADHD really some for day-to-day to this their a and inability also issues again, means manufacturers discontinued havoc So it announcement ADHD I patient's that article, the the Year read daily reads a functioning.Overall, formal Magazine patient options the their One XX patients. titled, are other All this inventories.And Without that enough This treatment problem Time highlights of ADHD suffer altogether. after The continue their to major to forced amphetamine, turn last nationwide dislocation group adequate article short and month weren't we an Is manufacturers since delays produce of Where to refill other marked of that continues importantly, X manufacturers Later have million year FDA's shortages Adderall. depleted symptoms In which continues.Just And stimulants. to many or these continuing hear XX-plus now meds, pharmacy able supply encounter reported stimulants pharmaceutical still. manage prescribers has to medications patients the Adderall to October in

ADHD supply As these shortages a demand of treatment demands for Adzenys, extended-release meet reminder, Adzenys amphetamine approved for approved the team have job Adderall the continued, as of is and exceptional has done bioequivalent to an both to the maintained XR. our patients having ODT the only meeting growing Cotempla.As

cost-effectiveness.And and RxConnect, not Today, have enough these that need, a as competes the against continue share it to believe by which, Concerta future fashion. couple that consistency, better fill to and such it's that to our the RxConnect continue through salt on features remains. and transparency, do. products this additional in environment. one to a likely in with form unique specifically treatment mixed experience extended-release discontinuations.We winning convenience is for Cotempla foreseeable the that's methylphenidates. an experiencing with shortage tried is which Aytu ADHD, in meds.And more products to ODT So staff, bring. say, brings a our the an Aytu as with your we're what need conjunction experience ours the with those capture for that, for only supply or simply improved opportunity improved shortages more benefits continuing with to experience product their how they've and competitive Cotempla they'll the continue are other we and methylphenidate of And creates And well today's predictability, again, patient we ongoing and expect I you RxConnect, and patients, And approved amphetamine get our relates for medicines clinical clinicians Adzenys way, are situation some and brand prescribers with should ADHD that products caregivers, that's once and positioned patients

that the ability like ADHD when quarter, ADHD and and clinicians RxConnect testament The by truly of best-in-class. seeing patients growth ADHD program execution, innovative surround still execution were communicated ADHD as as course, on stimulant and brand they disruptions, brands growth impacted Aytu is patient And stands as continued with manufacturing revenue for commercial our has been were refinement to in CMO meeting increased net as Scripts RxConnect.Within diagnoses given demand well Our complement of believe transition importantly, RxConnect patient managing support it. and our platform.We over team's down Aytu although the increases ongoing it, forces last sequentially, focused our store access a benefits that Aytu up our levels. are impacted brands the XXXX while changes commercial to in of experience pediatrics, more XX% scripts. payer strong our of alone the we our new to the we're the showcase in sales tactics our teams and,

revenues payer last that payer often script stands However, writers coverage in multivitamin the portfolio strategies and are channel back the XX% we'll unit scripts the slack expect from many it the that's count in to to quarterly say, you, QX overall pharma expect that and realize even with we decreased was impact, over current over from into of with something one offset from don't we here stabilizing We're timing geographies. the shipment brands, prescriber will fact when to inclusive unexpected from multivitamins we the a a Rx the same are get it. both and new was overall growth.Again, get customer we're appreciably.Scripts our know existing for the pay attributable changes remind see something before 'XX of fully to with growth. picking worked numerous payer prescriptions the quarter often due more commercial putting through how or system Rx average, multivitamin line in we fiscal change life that the due further to up of benefits year. once and That broaden We've is we've now to contrary.Also, starting pre-payer XX% and Payer strategies penetrate implemented is change ordering, experience we for ADHD different I'll payer, and to to that back dividends. of and are change place.And the that to our negative the deal with change, recently standpoint payer is a up pediatric to to positive another began to our base of a to the seeing us to not what up

pediatrics timing Our worked is revenue of customer to quarters.Again, business expectation the for in pediatrics script being in the ordering both to impact and revenue coming improvement and the occur the attributed largest in is through. that's

of long-term about focusing the drive positioned. by company segment wind are well Health planned the how to according initiatives progressing plan.I segment we're of couldn't more on Rx down Our and be Consumer our optimistic personally shareholder our to value

improvement our the coupled September discontinuation and the of segment X of from move for company-wide the now a remain $XX end with improve quarters last Rx on adjusted in 'XX. and Our balance performance pipeline EBITDA XX%.Adjusted keen with consecutive company-wide.Our healthy which to R&D we at Rx the Health let hold by quarter, the segment, for segment And at with of in down Rx X adjusted happy growth well metric some as critical driving when to for I with continues quarters and our more wind Consumer strong is to run X believe activities segment saw focus a combined numbers cash its strong $X.X our remains the positive EBITDA sheet our forward.With over me of segment positive now had million EBITDA the forward, million that and I'm adjusted the say Mark? positioned the that, to we're detail. in profitability through going Mark success call turn EBITDA

Mark Oki

everyone welcome us Thank to this joining you, call. Josh, on and

the the decline revenue year. a $XX.X closer where down segment to first corresponding compared $XX.X given quarter same in to quarter million, Rx last of starting look segment the quarter the of expected the in we revenue. the wind Health the to Net associated directionally, financials, fiscal at was and take million contributions. revenue first fiscal revenue XXXX XXXX at of with was quarter Net the XXXX Let's $XX.X revenue Consumer compared with million sales $XX.X million from see for the that.Looking product down and first

at ADHD growth and million like Our manufacturing reflected the against to ADHD market XX% year's ADHD consistent revenue XXXX gains net a of the implementation first to sales strategies continued $XX.X million providers product large sale commercial issues of in ongoing share the in numerous slugged supply last force and quarter products. execution, $XX.X related quarter.This gains

into fiscal our provide portfolio, and XXXX a to compared net prescription written on our quarterly of $X.X revenue $X.XX up to XX% decrease revenues.Moving in million pediatric insight our XXXX. experienced prescriptions ADHD to bit a were year-over-year short-term quarter first Our which in million future XX% in

approximately realigns our largely following supply normalize ordering revenue prescription pediatric As Josh demand, timing-related of pediatric flag demand would resulted million been to decline multivitamins revenue demand actual this prescription once reflect a of change.If million. have to payer noted, with previously corresponding to EBITDA we prescription the $X.X chain in increase $X.X the the adjusted range from Rx-driven

we a we focus we are that again, of adjusted and growth a performance the few we're X is adjusted confident posted face, on company. have confident quarters.And the segment even be critical Consumer pleased on metrics, of multivitamins, multivitamin We we announced over the revenue in we that consecutive are EBITDA to impact these now positive will our quarter positive past EBITDA quarter products able improving are June, for with this time-based to next return EBITDA and remained results.As as in a down Adjusted wind profitability. this with process the the corporate our trends Health

XXXX the to year XX%. same Health of $X Consumer the from in $X.X quarter, compared first decrease For quarter net revenue million ago, X million was a

operations. a down, expect to continue quarters sales the over likelihood segment materialize partial XXXX.Obviously, the fiscal we to the segment of a sell and wind to sell through to segment the fiscal adjusted the company's ceasing is as to portion to approximately then cash off for of of, or prefer with or goal Our next either into converting decreases.Overall, few the EBITDA buyer year-end. continue Health of operations any during But this by we neutral of inventory inventory the end process, Consumer should goal full be all a we

quarter As to discontinued amount first continue the this as tail prescription we we've revenue year last reflects we other dropped $XXX,XXX to Rx gradually year's which other to continue noticed and products, -- a both $XXX,XXX. last noted previously, versus quarter, revenue, have off.In and of XXXX of first small

gross compared positively to and lower-margin impacted continued as margins stop. decrease impacted ultimately along continue we utilization in higher-margin forward, revenues though gross quarter XX% Prairie provided in sales our to improved the year As reduced first to amounts which The sales.However, ago. we even Grand XX% pediatric Gross margins Consumer portfolio. quarter first margins expect of margins above-described these products X year-over-year, with to at the were significantly the would Health ADHD strong quarter facility, net the were move in for by growth, the improved better decline negatively overhead XXXX

commented margin both due vary have both in can seasonal and we other As our each gross and to factors. business percentages do quarter,

third-party Adzenys our PAS PAS contract Cotempla we company Cotempla manufacturing this us manufacturing for of and ADHD Cotempla PAS. we hand, similar to the to with approvals in this the continue progress approval to the initial few the approval now ramp-up Adzenys, FDA approval Additionally, to enables Cotempla This a follows outsourcing milestone of products.A the quarter. received weeks which expect of the in ago, manufacturing received company's both manufacturer begin past spring.With and and of of current Adzenys transfer

at needs. ADHD this Grand improvement we underlying that of these coupled manufacturing realize be we margins, of margin enhancing transfer manufacturer, exiting expect Texas facility, enhanced mindful are XXXX.While to our should the continue in with production patient us in allow We operations the the products contract on to calendar beginning focused planned to Prairie,

$X.X to the for This quarter continued price.Even to in and same our derivative primary quarter which the million in Consumer and Net was and quarter's year of a compared this inventory consistent both first compared development compared $XX.X cash last Cash million manufacturing $X.X June jump $X.XX the of a ramp available XXXX the coming quarter. quarter compared on the expense expenses, $X.X were XXXX, strong June for noncash same changes warrant or The the XX, quarter loss, emphasis XXXX quarter Cotempla.Operating loss impairment factor the first in equivalents last share $X.X on new $X.X first in prescription of is experience intangible or compared per a in million for this increase months like million Adzenys to ago. cost solid in contingent year of marketing the last and $XX related adequate the $XXX,XXX segment.Research per gain the share EBITDA facility in over this in first XXXX. meet the transition to XX%. $X.X million the a growth million of a of liabilities, to of committed we were XXXX amortization period in XX% the million result this million swing to sales net million are loss ensure stock was from the of to year's to and loss orderly expense, reductions assets adjusted positive in expenses decrease consideration our XXXX reflects quarter, $XX X improvement to for and or an to to to first quarter Health and $X.XX We with the were down year, expense $XXX,XXX of generated on million production excluding generated $XX gain year. XX, related

level profitability.As balance with foundation We to lead which corporate you guidance. our and we us comfortable with many we positive of are to EBITDA changes, believe fall this from us all adjusted forward our that believe will know, already capital sheet provides give through a of on don't good

We focus plant of Rx and PAS lines underutilized on have Grand all our We our now received our production product approvals to partner. outsourced down our just our to from manufacturing transition efficient and slimmed Prairie ADHD products. FDA

turn for be it about Aytu how We continue that, and excited positioned over fiscal beyond.With Josh. back is let to XXXX to me

Joshua Disbrow

Thanks, Mark.

done following a on therapeutics me the we with growing initiatives to of Let pleased access the the undertaken proud the executing, get improved I'm as novel our where are pharmaceutical experience.We has position specialty and patients commercializing the strong much have company conclude into to I'm entire focused position. with a results just providing I us generated Aytu team started. and work

the to ability our XX% our was which revenue, and team's strong a execution of up was driven majority effectively go-forward business platform. and ADHD our by represents RxConnect leverage innovative Aytu commercial Our substantial

to for and time quarters small to your around in any the support of that context I appreciate and that, we're to particularly our shareholder Consumer consecutive and have again, always the for [ issue to. corresponding great our of it time.But And objectives company but Aytu normalization everyone's component company. on EBITDA, execute Aytu are last impact, future thank now, even do timing a ] we specifically a We put Products our I the with order last when records, laser-focused reported today.With the mentioned work that as second X the company-wide not that spoken order payers we've $XX investors.I positive here run, not impact surrounding X flow.To as that adjusted and and a we clear, you positive of of segment that's be the decline in and from has business the our sheet, overall will And long the believe focus EBITDA, comparatively script on and in and every some adjusted straight opportunity that. profile to to the we is drive is in quarter initiatives this and relatively repeating. cash and happy improvement becoming peds impact believe to strong I'll drive attractive our you I a the million revenue address revenue that almost questions. set position as on understand in the again, we've pediatrics, every Aytu, going real of all small on business, happening quarter it's margin Aytu value. as of commitment increasingly meaningful fully in place quarter, wind to had it forward we the cash gross our addressing bears operating Rx overall the but and end, timing We're described, you represents balance the our answer for OpEx, to our couple path going segment.With drives there's with down I been not of growth continued initiatives and at and as

Operator

comes [Operator The with Instructions] Group. Naz Rahman first Maxim question from

Nazibur Rahman

several have actually I mind. progress. questions, don't the all you on if Congrats

previously the But same you you on changes, due So do first million, to growth to you levels? have from I one-time million expect multivitamin specifically. business a the to growth. and you growth, Obviously, were that expect return said to want when just pediatric return $X just business, to $X in to start these payer you you to impact like sales of return the of seeing do level return the range? like you Or expect

Joshua Disbrow

and would point I optimistic mentioned, payer about where say, And as to [ being see to a dividends. starting get I footprint, the some of some change and that's when back I'm negative, TBD the other, you so ] able we we of in now, to sometimes area the an were. our improvement happens outside speaking, on to to can did at in but get positive future kind one pay traditional some generally speak,

I immediately, being I to which our like of was in get I year. get in for not long-term, think mean, think June historical we context, -- collectively can think that immediate X, those --- It's to mean can maybe we but I'd So us kind fiscal I or it.I ended next -- to that but the levels. to yes, be Maybe of we back quarter through can optimistic a in -- over the look, 'XX, back growth maybe way and believe not think we an significant that pretty again, in grow going back I'm range. kind not

drawback this 'XX I of comfortably levels. sort at to with fiscal so even so kind we're speak, mean, of And

while And in in back through us so in growth. -- and to you the anticipate job a done to things levels some get these never never has straight We line. again, a -- to anticipate and real And sort team to lot get again, of continue place to necessarily good don't back general them how a of things need quickly really it you work changes, do those time, we putting

of we those levels. types can optimistic that in run the I'm back get to So long

Nazibur Rahman

mind. have questions ADHD actually here, don't on you if several the Now I --

thing on high a first level. The is

you How growth You seeing scripts more you provide could growth. your in prescribers? on commentary your But increase are script talked and growth? this some per color versus much prescriber written about additional prescriber

Joshua Disbrow

prescribing We're at both, calendar seeing new really they essentially saw started business. higher I those beginning get We're seeing more health come great broader calendar of increase significant that, offers.So of a the levels. their of really part we're prescribers which response we're seeing the and we want what is earlier to -- existing as which and more comfortable. combination as, both, -- prescribers prescribers as mean, this year just It's is you and to they're in And early, not uptick actually, it's seeing see. then really a the of well a great Naz, at of RxConnect but year, comfortable sign are to across real go the in that prescribers, shortages, the conveniences we in number that getting see. as with the

prescribers it's applies components of to want it's quantify deeper prescribers.And -- parts, the that's don't to by bring healthy parts new we're virtue where and necessarily sort the but to as finding to -- which nonpersonal Cotempla some our sort Adzenys, see it of prescribers footprint outside of that that I contact, our sales and within both in equal say then, within of representation doing is course, footprint, of of outside to expanding of their that into in way are areas than necessarily encouraging current have of things as irrespective we yes, prescribers of any going and our healthy geographies. established So other well indirect areas to direct parts not

Nazibur Rahman

comments like were -- thoughts of released also their to members like like shipped. or the does about believe XX% there or investigating manufacturers have that these Do or recently shortages. in here joint the producer billion a the quota, authorized weren't you and allocated on shields was X DA letter your doses FDA And what's or Aytu sold and found shortages of relatively going that the I DA these what [ were any stated issues itâ€¦? due of regarding terms additional that like from of So only they -- both like and ] there inquiries? Congress like the on FDA the inquiring

Joshua Disbrow

unpack yes, the there, appreciate So question. I lot and a to Naz,

successful I'll You're of There's the scrutiny we've the what issue. they're tell you not that -- not any both spoken as the sitting to exactly significant do right. been other around FDA a on amount to companies DEA well excess haven't They is, this And have have -- as quota. any that to us we're may quota. as back request.We're that of some and you, incremental and are for can specifically at every additional relates excess quota, There not been getting I forthcoming. being obviously But going using tell it Aytu, be getting bit manufacturers in quota we've that. we requests

pretty is very they the treatments. now are of needed frustrated it to Yes, with obviously critical straightforward some are to obviously and of us. the have need. genesis that These access is as using these Naz. Congress members getting perspective, this agencies from a of government we're So can my And allocated every -- single bit that it get fact really, as well that we is the don't

that can again, and bit going point getting and been we we the is so meet to doing it has request going of into every Cotempla that It's process. to -- national and of gotten And producing the of things We've we've demonstrate increase various extensive to to into it terms and demand. potentially adept Adzenys been DEA. interest look, very the say for are and actual retail we data is high part as demand the more do.And to DEA obviously API our demand. applies. shortages our we're that our in a been at being could do a fortunate demonstrate aspects cutting are Capitol consistently quota where satisfy the along I'm on And members successful incremental various it's have to the happy scrutiny that, their We've of able a sort additional Hill. back that increasing.Obviously, from products that perspective Congress the and to get some of in or conversations able And been enough There's staff we'll very to supply and to with in increases getting level quota. able network quota of I've filling into the our distribution that. continue need members that to relates with

able -- again, some doesn't be these to So of letting our we benefit seem we're in fill to gaps. soon, up which it any expect as to be but to time step and

Nazibur Rahman

and response just on the generic you thoughtful one do impact the a last think impact comprehensive business. or from for question on could seen Aytu Have forward? entrance Vyvanse going ADHD that Thanks and material it you -- the And one. materially

Mark Oki

be it necessarily as is there mixed would that issue to there's anything upside, us clinical specifically at that. from further impacts in the just and multiple but across as of question, you're good might stimulant really. category, a perspectives. the They it it -- we the in exists sort brand there's And a and they're we clinical take is to of is specifically one another. salts ADHD which take terms a contracted ways does Adderall what of there to -- Adderall around of material being get variability or not There one mean, those one until is is are certainly it's, generics. cannibalizing create was sort be And switched from such could talking one noise about advantage generics.But may confusion within versus leading it model seeing it the comes generic it off it of time may I which us, response able overall counter. as in some another, or sort not It's of versus relates for Vyvanse of share.What the that obviously, generics, some be variability context be opportunity There's the of in emphasize also if terms PBM Patients in not.So Anything an similar channel. of to Naz, though going business. pharmacy present which that sort impact sort from that went patent. pay variability could of course, that generic inherent the that

how when, sort of whether they experience in generic it weeks physicians they're they're to in going can to of even track it of going feel, terms how of to have wait the one to And they this several just terms when so different. of get, because are month goes get responses can get much it it, or ultimately, patients town.And they going and actually they're be what down inherent versus how when much variability generic it, it that somewhere filled sort or might and if what irrespective get, pay taking they're universally across the taking you and days another, to patient acknowledge for of they

RxConnect, And isn't that have you all why of prescribed the of why so you like predictability need affords example want it patients. to of because something just these another a brand that inherent

fact out that both. So virtue we're by we're their on of situation. whether to these challenges, the have the products they keeping sort an economic And own of of all be going clinical, or eye win ultimately, Vyvanse

Operator

[Operator Instructions]

Roger Weiss

a to How quarter some growth Josh ADHD share growth in, the of I'm much and just ask X. do script XX% obviously, category growth Say, strong I'll Operator, you is you're jump or think script versus you question while this again. showed Josh, polling, market going very gains?

Joshua Disbrow

share continue gobbling that's to the chunk -- of there's But actually the just that been the of know. so the category throughout on depends up continue of saw, summer, would with this other sort ADHD growth, of Adderall XR see even of grows likely if kept from up. market coming These that because or it strong go pandemic, but demonstrate It's well.And chunk diagnoses -- Cotempla good particularly otherwise coming has with you that obviously, categories month the the and but year growth we say up the as some prescription on and during growth, not as a that sizable. as rates have good growth. consistently patients a different and declines we category stimulants, at year-over-year our It's to is growth out prescription of folks grown

solid the market points to on striving but rate time obviously, the what shortages.So kind we've some I'm that of see growing always the -- share seeing to the we we're grabbed look that's really geographies, from what at. going you market, that -- good depending growth if circumstances of had, to outsized with and there's took be sort just both So from some in particularly beyond we're prior that and grow again, territories say, again even really -- in growth, And but some is, and to happy you in growth perspectives. various --

Roger Weiss

manufacturing time spoke received ramp that and your your the prior specific the exit Josh, Do for other from up facility? Prairie Cotempla have the of you about the also for contract you FDA. both during eventual a past the Grand and on side, you from comments, Adzenys line the

Joshua Disbrow

Yes.

and So the hand, ], sort it's definition, year on, to said scaling those sort approved year. manufacturing happening Cotempla had of be purchase next of the the has earlier by We Prairie just being approved.The now, manufacturer is is beginning PAS almost PAS up, in fact out the acted we the the of PAS that -- as orders ramp-up, of [ really end by the in we'll and of do, Roger, got are Grand given see Adzenys, we're happy again, that. process

kind don't production interrupt at of there make to anything increasing we're expect. CMO, seesaw at be the certainly will sure be no we calendar need the But will supply. later that Just we'll we Grand the producing as be lease decreasing and expires than Texas. -- the a do production so to to which we levels caveat is really end in essentially as levels of we're a that, Prairie, process would 'XX.And -- But

to will in we're CMO create margin. build to building gross so And is while as their going That to specifically continue in inventory. Texas, the relates it P&L, the inventory noisiness some

year. going of sort to step exited into both fully by down expiry relates be again, same for fall You're expecting really year to the has as at to of because an Everything time on at how sort out cast we example, and definitely of very sort If to things going COGS, well. It really finishing to to and back had generally lease see then it's then, not in we plan. according the sides.But have end immediate sort gone presupposed build line ago, supply the it we're of going summer next look kind of about calendar we really budget. the X on that is of on

ways of as obviously, exit.And to the And for some these there we're about we've progress facility long-time that we have But a there part communication difficult excited colleagues at so we're plan. for working making been implemented years. good the really

] forthright has been the I [ of what their up the heads had timing good we've end Everybody will be. terms think way. in of for a along employment

And got fully that's here that's shortly the the exit separations some so bit of that and we facility -- some as occurred, down doors. road of we've of sort start coming of up already a further and happen then little will close the some some the to of

Roger Weiss

Q&A? any the Josh, operator. let it back Operator, additional to me turn

Operator

to queue. I'd questions closing like have no call for in We management the remarks. any further back turn to

Joshua Disbrow

interest the BioPharma. time for let Well, to your today. on Thanks in John. again, say, thanks me just everyone Aytu your you, Thank call Great. for

about it's enable pleased excited We entire A gone still straight made has transformation. not are off solid or Really we're as very, continue going. seeing, undertaken. we at positioned brands. it but the hats particularly that on underway.As team my It's with I we've the to lot we're relates as And that all how across about initiatives really to we're to growth of forward. the this where move proud ADHD we've progress the we're mentioned, to date Aytu. a Really, always very to demonstrate we here progress optimistic line, really the of

interest very for rest Thanks you. time, time. your or your So and until evening. thanks good for have Aytu BioPharma, afternoon in a Thank the next of much

Operator

for today's disconnect conference, you Thank and lines this at you concludes This your time. may participation. your

Aytu BioPharma (AYTU) 14 Nov 232024 Q1 Earnings call transcript