AYTU - Earnings call transcript Q3 2024

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Operator

Good afternoon, everyone, and welcome to the Aytu Biopharma Fiscal 2024 Third Quarter Earnings Call. [Operator Instructions] It is now my pleasure to turn the floor over to your host, Roger Weiss. Sir, the floor is yours.

Roger Weiss

Good afternoon, everyone, and thank you for joining us for Aytu Biopharma's Fiscal 2024 Third Quarter Financial and Operational Results Conference Call for the period ended March 31, 2024.

Joining us in today's call is Aytu's CEO, Josh Disbrow; and the company's Chief Financial Officer, Mark Oki. today's question-and-answer we session. of call open conclusion a for the prepared will remarks, the At I'd call is to being like remind recorded. everyone that today's using conference of telephone today. press replay today's will earlier available A call release issued numbers provided ID by and in the be the

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

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

With Biopharma. said, the of Disbrow, Officer Chief is let Aytu to the me Executive over that call yours. Josh mic Josh, turn

Joshua Disbrow

initiatives Rx period significant as novel undertaken growing for over its to Further, prescription to and third company Aytu by $X the everyone. growth, third 'XX of Roger, adjusted specialty continued a in On company-wide $X million, over pharmaceutical strategic to years our continued that ADHD company reposition on increasing we've positive compared our same now quarter as fiscal back, is we've excess operating look during therapeutics. improved third focused XX% income the quarter. $XX of momentum the continues the our commercializing rapid million, and year operating over a you, quarter. adjusted Thank welcome, revenue trailing million is as portfolio the the The of reinforce business it experienced past a X achievement we fiscal ago EBITDA 'XX XX-month EBITDA

that excess X had ago, annual Recall $XXX million. loss an in years we just net of

been our operating transformation has profile. this quite So of a

As programs our our with back at to last has Consumer on drain cash started continue the and business of of that indefinitely million the X business, a development achieved you and wind our masked These repositioning we of has clinical reminder, 'XX. over last in in it Health X XXXX when adjusted were segment. and suspended specifically down announced decision we which quarters look positive EBITDA a the the Rx over our EBITDA X strength in mid-calendar quarters. segment, parts our When $XX in generated back Rx adjusted X October of

XXXX. will on closed growing ADHD as mid-calendar Our our the with down segment to And focused products Consumer goal solely our coupled is for Karbinal and specialty be in portfolio a business our multivitamin pediatric once pharmaceutical in completed, be Aytu portfolio wound Health ER. franchise with our lead

be business, screen we a wind lead investors re-rating made on the forward. margin As believe could we those down expansion and operating profitability, visible close will highlights to to of of that clearly corporate loop aforementioned consumer growth, valuation the and and market, as our this the we for go

key to balance quarter. the Importantly, $XX.X points steady holding let more expand $XX.X of on run me solid, ADHD. in both pediatric and ADHD financials December seen within million our with our a wherewithal is end cash detail, portfolios, few at through our financial To by starting the as the at compared first million

leverage million. quarter with revenue net sales was best-in-class revenue is and by RxConnect XX% growth program. platform, a continuing innovative believe the during execution adapt our mentioned, we $XX.X a along to our strong driven force patient I to support year-over-year which net As demonstrated The in third ADHD Aytu in portfolio the increase company

seasonality third from is insurance health a January for a benefit result reset standpoint, RxConnect's care where our greatest plans. a patients fiscal providers reminder, of guarantees access quarter as to the and As provide many deductible and the health pricing

transparent portfolio. directly our who the Aytu RxConnect nationwide drug out-of-pocket X,XXX-plus -- ensuring costs clear predictable deliver our partner Rx remains Our out-of-pocket our partner and pricing pharmacies ensuring costs works plan treatments. to for to of products, around committed our branded patients through predictability need

disruptions execution, access now X having supply In within various talked the operational to have generic frustrate shortages to physicians and, Vyvanse the with and about accompanying products, experience methylphenidate These in the and disruptions to which lisdexamfetamine lives gone too market addition experience the patients families continues along, many years are trends discontinuations. generic, cases, we for market ADHD alike. and patient negatively continue continue of challenges of some impacting their course, continued. The access to our past and and ADHD intermittent strong have amphetamine with pharmacies

Having customers, are these been just I real disruptions are positive RxConnect solution providers. and patients our tell real the you and these field that having the with can impact products notable is for in and a visiting very as

of these shortages patient to meet Cotempla. demand exceptional patients, growing for having meeting an continued, As our and job intermittent has the and team have the maintained challenges access done Adzenys demands supply

for bioequivalent the reminder, as Adzenys, approved amphetamine ODT ADHD XR. treatment extended-release Adderall is of a only As the approved

our access to is So well capture share brand positioned remains as patient unpredictable. additional continue amphetamine market to

this continuing which the We uncertainty midst ODT ADHD or caused disruption fashion. future the is for for that perhaps only ongoing long-term channel is And in Concerta the more which extended-release and causing continue situation other the of against access in competes methylphenidate will likes patient Cotempla and ADHD, importantly, foreseeable some of the and view well the methylphenidates, likely future. has is treatment uncertainties. the one also form into long-acting approved supply of are undue

know physicians parents manufacturer many continue we some to as And they minds, what patients, question We know occur returned don't as have in providers' don't time. will be just have will coverage other to shortages in shortage are that next may levels, at Even when the when past. more stimulant the pop up. products and normal

where opportunity that's a to and trust, on effective, only that in. prescribers perhaps consistent basis. Adzenys get ADHD get a experience get more at [indiscernible] a and they Cotempla. So do creates with for patients brands more more they these and reliable Not predictable patients and and the price timely and at comes products know importantly, pharmacy, And

affecting support issue and are that. products that at reaching beyond our robust look to in prescription we're Rxs And as and brands a into and seeing May, our ADHD stimulants. huge pervasive in ecosystem, to With April be We're services, the results filling brands. continues pharmaceutical speak solving and across both we for generics trends this the ADHD and gap our we growth

In highest this We're TRx in last month a consistent were middle May 'XX franchise. fact, ADHD excited a strong finishing year. is stimulant both the year what following all-time trending to about the growing of and in make are highs with fiscal

million the give by revenue, Transitioning about discussed XX% payer our down pediatrics, third occurred changes now which in impacted September net some last primarily we We've Similar pediatric to implemented back have tactics quarter during mode us quarter the of fourth portfolio represents almost portfolio. business revenue. number our past get was see was pediatric seen across the a to Rx to quarter, quarter. of $X.X we which stabilized to started comfort We've that that quarter. 'XX can net what and the here growth halfway multivitamin that growth the through

capitalize pediatric those across and signs of improved results. and recent recovery the to beginning the some team show numerous on respect time real coverage in wins and products with The some to are Given to to portfolio, patient pediatric positive coverage swiftly actions early access. opportunities moved reallocating resources early we're has this the

I the have important of overall note to operations for initiatives well implemented how downdraft current light can we swing fruition. Peds as the think everyone it's and that progressed the of positive come business the of have the in operations potential occur our to

a widespread for reported and UnitedHealthcare that to One quarter Healthcare here bit. attack think widely context third to cyber important subsidiary item was February. just in back I our the discuss Transitioning beginning in Change is impacted

co-pay Healthcare, services. and a reimbursement buydowns, that processed branded dispensing physician programs, not familiar, switchboard and things, physician get savings those For other manufacturers, cetera, what reimbursement billing through systems essentially pharmacy be with Change is those with among to interfaces enables their et interacts many for systems. programs, to paid also It offices

losing those cases, programs Among other products. of This, the for pharma extended to ecosystem altogether. out-of-pocket And all turn, things, and or durations periods pricing havoc in properly health working across time. working and significantly long in going some the not in at cyber often in access care some in not cases, resulted time, coupon cases, companies unfilled for patient some branded resulted of attack in many prescriptions prescriptions created impacted

Fortunately, the did adjudication us, past I'm we very that we minimal it attributes single system and quickly. move systems, But impact commercialization the very any it have recovered we minimal but of single broader doesn't how we say approach transient at some with partner Aytu interface on switch. to with unique on rely along of pharmacy and or happy fully take and to due felt any impact RxConnect

of during improvement our continued, points. our the gross Cotempla progress do on gross partners. to the an the X,XXX to of brand continue improving a ADHD year, overall great be on last will and our smaller we Adzenys of were to QX We Rx transition basis as albeit Moving XX% improvements, and quarter manufacturing in XX% of margins there improvement compared operational outsourcing our job we outsourcing complete margins. to believe manufacturing

is need, familiar, a than is manufacturing overhead and For down be expenses source Texas, operations have manufacturing source those significantly therefore a we of elevated be of where shutting that a larger in and much may COGS. facility fixed not will our large, we we

and complete final track. Everything by of to June, on in remains that run manufacturing much the very we is terms on transfer, production expect and in-house end the track of our

we continue will the incur the year the return to facility We down to manufacturing some calendar the it related as close facility to to through landlord. costs

the distributor change for change to along And the changes, modifications the business well. the of it's and RxConnect expect to been interfacing further with An our a growth. recently one, improve we've already robustness offerings we signs optimize integration platform, important going is of overall. new this distributor these view pharmacy additional our showing further of positive stickiness has exciting program, of into around help as We the to implemented this some add to pharmacy new onboarding future an partner further the with

on Quickly health wind down consumer now. the

quarter third an is third adjusted done $XXX,XXX impact negative EBITDA year the from $X effectively a managing was process a The more the during our job down on which operations. exceptional effect has million is than improvement the health the team of Our consumer ago. our wind minimal, quarter,

have to Consumer point don't expect prescription XXX% shutdown then expect and We final From to discuss we the the the will revenue the business. booked fourth Health quarter of in and fiscal first quarter minimal be focused on expenses that inventory write-downs we as into further segment 'XX. forward,

adjusted adjusted EBITDA it margins before pharmaceutical Rx quarters, EBITDA Mark, and also in pipeline our transition operation, but objective our not growing from up our has and consumer witnessed been positive business. To on over to by trailing turn I programs, million concentrated development management company Rx cash flows. Rx included our has $XX over things both for negative sales, $X for generated been a company-wide X which wrap the X of and segment segment our of income multipronged profitability. operating To of last business adjusted and hyper-focused over it a X to only million with which increasing generating Aytu health The quarter EBITDA

of flow coordination and now negative all as business transitioning the planning, hard generation net forward. cusp resulting a on cash all flow with cash are team's be losses income and Our -- from we in move one have work this to free

then to Let me up over I turn back Mark, questions. come before to the now to over briefly and turning call Mark? things will wrap

Mark Oki

thank to and this joining you Josh, you, call. everyone Thank

segment. the in the Let's million bit third revenue wind-down our in from declined $XX.X detail. a year look XXXX results in prior quarter million continued Health more XX% of as ongoing third we $XX to Consumer period at quarter Net of the our

As million from continues declining the This Rx current initiated we XXXX strategic existing a revenue to reminder, segment's consists process primarily third of existing the Health focus October solely in the efforts selling inventory. quarter, quarter million the a mandate off in $X on with to of $X.X business. XXXX, Consumer which our in

revenue quarter portfolio million of year's from like ADHD shows $XX.X of $X.X million rose in declined to the that The franchise $X.X $X.X our Rx and other consolidated XXXX, component XX% XXXX. million. Breaking sales, million down is the revenue in our segment pediatric from increased Rx $XX.X to which from last $XX million million to core

our some As resulted pediatric previously, we've discussed issues. from decline portfolio in the ongoing reimbursement

Josh of improved several time real improve mentioned, As are signs for seeing implementing the in pediatric to solid portfolio. initiatives and products portfolio the reimbursement we demand are across

increased the was margin previously to XX% quarter increasing decline This in sales. in XXXX's adversely XXXX, impacted noted decline driven product revenue and by ADHD XX% margins historically pediatric of our Gross improvement in third our the from in by sales highest products, product group. consumer

to listeners and business. our nature of line impacted top margins new any by Aytu's As the today, a reminder are seasonal

extent, lesser meds, fourth many primarily On summer affects patients which fiscal our quarter. the side, demand fiscal a and the from back a ADHD first quarter take our to scale

insurance January RxConnect amounts Please year. plans generally use a of calendar part our which program, we this gross protection to remember price normal deductible quarter, March, historically that our experienced throughout margins. During the gross lowered to reset adjustments X. the most improved net seasonality those through January fiscal is historically has and our From net beginning greater third of

intangible contingent reduction Our XX% in continued Consumer operating expenses, XXXX reflects and amortization same costs, of ago. changes the in This third assets, decrease the a of the restructuring period were focus segment. $XX.X million consideration million year down cost of $XX.X quarter on the excluding winding and our Health to compared in

third quarter. were a in to our the development XXXX prior normalized drug quarter essence of level $XXX,XXX and Reflecting compared $XXX,XXX base XXXX Research development expenses corresponding highlighting the the substantive any and consistent expenses in with of announcements.

almost basis. We EBITDA a between income accounting, $X.XX from net $X.X losses Please net to $XXX,XXX by expense. $X negative $X.X loss per last GAAP loss $X.XX positive year-over-year million on per Adjusted expanded tax difference recorded an U.S. $XXX,XXX that the $X.X million million a or from a share share. net and versus of million due or note year's tax a to

$XX.X Cash were to and March XX, on XX, million XXXX, cash on compared December equivalents million $XX.X XXXX.

level us a We sheet corporate provides game are continuing execute believe solid foundation capital our our this that with comfortable to with plan. balance and

out In continue we is going matures earlier to the million point that long in should sheet in our XX-Q change to our shift filed financial as it I in language classification biggest statements. $XX January footnotes term balance the note term from of concern XXXX. our term include the the today, short to

with our outlook, in financials restructuring Given sit where success borrowings. the operations, company's we our and we are quite pleased regarding

refinancing facility the terms and at equal begun better or have We one. the that new our of term maturing a believe obtained versus be loan process can

language when and reevaluate we include We this concern going complete our will requirement to in the statements, if refinancing. financial

XXXX segment, pediatric our rebound top shift our while we a Again, aspiration. exit should manufacturer fiscal [indiscernible] facility, us loan. and XXXX, on we projection structure in ongoing from Consumer line and allowing fiscal of steady to up as These outside improvements portfolio finish income related our Health look exit and our focus our bolster completed our anticipate ADHD contract into refinancing flow manufacturing the net cash our and term cost revenue shifts in lowering free and to the a

With that, to let Josh. it turn back me over

Joshua Disbrow

Mark. Thanks,

from on at our well a trailing thank given wind now answer happy today be of manufacturing, business our over to benefits any imagine, work everyone entire end continued in portfolio, fiscal the strength for questions. $XX the might of I'll company-wide than to extremely as we it outsourcing finish for to Health overall and note. I pediatric $XX of hard there done you both to can million with Consumer their positioned portfolio, excited we're history, the is March. point our about want the call. XX-month the work as Aytu ADHD pending And the on while the Thank is dedication of to our the stockholders. as EBITDA down adjusted at business better participating trajectory nearly cash team and and of the still be in the patients the business, pleased high you with delivering today's in As as progress to be I any continue 'XX of with at million

Operator

first [Operator Rahman question Naz from Maxim. is coming Your Instructions] from

Nazibur Rahman

Has quota? achieved the progress. with to -- they Congrats on the the all? changed? business. Can I larger is regarding how DEA day. the has on additional How getting has conversations and frequency the just Or larger at start or grow any have your there every concerns ADHD like been growing anything and you I'd tell the involved, continue to franchise sales seemingly

Joshua Disbrow

The short I been DEA, the would productive. say, Naz, question. the great with communications extremely is answer have

DEA basis team quotas. the industry conversations. picked that Our in really increased has a has Their interfaces had with of has the DEA frequency with dialogue the regular significant up.

and when look what at they're is in data think we are they what understanding referencing. granting sources And an need that say as the ever of that increased would very The the get again dialogue level of granting it highest do industry when I we it's So we're they of them. of from they're move giving at allocating they DEA as The what been that our sure transparency I said, We've quotas, to quota better rest terms at to well continue with allocating suggest comfortable I'd of making that. ability job That the stand a when frequency to they're better the having with I'd the we quota. industry as DEA, -- that benefit. does they say the look with forward. course, and and

Cotempla stock all that out. is had Adzenys a to products, So say and never these

at supply, that days supply, we'd increase of seeking in be to have always terms their less like more on hand. our or to threshold continue to We but levels of solid our

with to really we comfortable access. industry we about and outsourcing has continue we level It's the and with with up and as that setup where of DEA the get our been are. all as late So halo into their of picking Comfortable us. with exceptional move can communication manufacturer communication notably

Nazibur Rahman

Got it. prescribers, Or strategy focused getting the Are too? your sort scripts? more what more strategy, trying now, existing just of combination you is is comment get your prescribers to what could there. That's with now promotional comment can current also helpful. you more dynamic And also that right in write prescribers? you of probably terms to are on on you But

Joshua Disbrow

Yes, happy to.

the understanding commercially we they're patient. that the always we're on We stimulants. had get obviously, want insured to top more pay huge of focused keep with always prescribing. of be will board. that's the the insured, our get Particularly new with, for debt Or prescribers. and never chosen benefit So of shortages to their or The both if we've they pricing is been breadth stock Cotempla to than uncertainty, on the not. them face RxConnect whether fact to significant commercially that prescribers that go obviously programs. out we continued backstopped number new them of $XX a a is note on can and prescription, that it's to among on no them that fact patients with keep the And their objective Adzenys, products to we've irrespective prescribing mind in these on of a consistent brought formula

cut work the any out it whether in out pharmacies. So they where at get of of they terms RxConnect guesswork know one partner in we of or can the it terms can not. guess get cut available the because of they We it's

it can cut we which, capped. out much again, guesswork how And they is around the get for,

by even these comes consistently all on. holistic to products the prescribers. consistent has access and not enter a trust, to we they've generics what They get level know physicians. a be improve again. with are the of even more at continued get and And symptoms products just continues to pharmacy where grow and when wonder caregivers, for used to that good that, able perhaps fact that it of They've It to resonate and are been as Because inventory linger continues continued sort together they parents of again, of at example, with into and prescriptions and they that virtue Adderall to availability. their more that its happen for we've to a as price they physicians. that they patients sort can linger routinely it's to XR, strong with normal So and period a to back I come patients they're a neighborhood writing their present -- really solution going and of

say, look, it's and go never products. these to happened So to

these We been grow. get our as continue all encouraging to able us to And that to products, continue more here and to meet actively enabled products see. the we're demand it's that's to drive physicians prescribing

Nazibur Rahman

was That helpful.

a business, On And starting business? back you you on Can can normalization. think and think of the look the a prior a might peds business for that engaged sort do were like get that? pediatric lot like new to of revenue-wise? you in normal you to multivitamin what initiatives you're return much do obviously, more see said How of elaborate you you

Joshua Disbrow

Yes. Naz. Good question,

We haven't historically. know, you guided, as

sort portfolio. number, really say into think what back work things if is, significant projecting, look, payer get a And to would substantial we're to in multivitamin to guide, specific back a that place Karbinal to started so the go we've I capitalize done can I on as of think the have of put observed things across a the some We positive And we our as can areas. giving changes and we we've percentage of can Without some some get suggest. and not line business recently major level. both some I

and the these Perhaps in have able on to long that think that some these place particularly what of And coupled things aspects, of that being all back obviously, sets some if we the reasonable But to we the with products, I over it manage with bring coverage way will, feel can both not. term, we be continuing of the begun all that Is to is expect a very side. that covering to new plans growth suggest good state back? both portfolios, the level. have ADHD we get you

And if have our seasonally in and is $X.X to our revenue company for us almost lowest for really positive million even fact EBITDA it -- consistently quarter, even you generated was so our despite lowest lowest imagine, that quarter will, still that -- a has significantly that's quarter, in which the Peds declined. margin

more, bring we to translate to those operating If can obviously or even XX% back XX%, that products XX%, but degree, flow. income net starts free any immediately cash into not just and income

don't to both which of from on think up actually sort need tremendous Karbinal as at, back see we We we at the of a this growth we again So started as think multibit. as from business see the to we've the well move bottom, really amount the stabilize bottom we're point.

with been encouraged work early So the done. that's

we changes Our it to to here team and time forward. back some an the very, very as significant some favors with encouraged these our solid excited to next exceptional take has moving these move a fiscal and we're We'll done X.X looking here how get the commercial momentum, as and job 'XX payer level responsive in enter of see months. really to very nimble of but we quickly being

Nazibur Rahman

different a or ] lines changed impact. very that change was That them but just situation on it. question care did just know delta did And that helpful. -- couple of was said last the nimble, it And potential actually Got few was [ or the I it health all a to of you quantify for possible sales then you business them? the impact impact? is

Joshua Disbrow

question. Good Yes.

understanding fact to quickly. impact said, did it. the transient, have. that we'd on know it. there amount we were So we by have, but that a companies been resist of we we effectively. that I have terms just really not won't potential We solve quantify past impact, was put virtue to for having did relatively small respond some some relatively I'd able is moved number indeterminate it specific hesitate of and and revenue revenue anything that probably That in of

We have our can customers multiple switches utilize. that

were competitors And said, of impact. change. sort the our did some and that a even ADHD experience been for That within transient from far just of more that fact -- we to so was able know really we having several category than delever competitors

downdrafts significant have in Some prescriptions. their

programs, Our our cards portfolio. co-pay across the

very some entire having across that sort continue of the was continue than It get really prescription level to would but a days work say anything of line rewired, of there things I to was else. effectively. work, So to handful more

for a we're single It's vendor a with upon mirror. that That reliant perspective, huge said, not been that. switch a having us the not As affects from backbone, positive so any really us. in impact rearview

Our QX an looking not It's it's for healthy afterthought afterthought for and an us. really many.

cases, had through, gain for affected that. by we say, our say And it's to and some I living still that providers we potentially to some So would look, say, living through. back go weren't us you an in leverage been are opportunity of customers to can look, nightmare the

have programs not Our that. not do leverage -- been

were there solved ransom sort reports, and than were event Witty, has caught They for the sort in -- effects. knock-on -- gotten said CEO rumors rumors UHG's ransom been that haven't where Andrew or they up. there of that additional requests, some So in their lingers, that all this physicians more of there's of fact, pharmacies it. additional certainly specifically haven't

when switch. certainly So have look, single any solution doesn't able be you ADHD, and a antihistamine, potentially a say, or think rely it to be we platform about for -- that on robust us to multivitamins

-- it now this we're positive it, where some relatively posted affected a the of coming less at we the Despite amount, disrupting wasn't getting revenues, the are suggest Naz, XX% the fulfilled. of out short time certainly EBITDA. shows a couple period So was that, year there again, despite obviously, I on certainly to want time But it There which in a so downdraft of were some disruption, And point to all. deductibles of of all disruptions. don't the largely the when were and our of than small finer transient. put Despite things. fact again, peds, very despite

gross for always And throughout quarter And we so improve us, a the to our XX calendar QX strong June our one as for move year. ending net is will us.

So that -- is rearview in the mirror. but yes, definitely

Operator

[Operator Instructions]

Roger Weiss

think to while there any questions, XXXX? growth category XX% sent you growth Josh, ADHD I ongoing Operator, from very the the execution do much are you relay you the in organic don't growth? fiscal revenue think been guidance, strong forward other showed How And other me is see in off-line. we're again. do but about know base couple give question quarter how let then that of the this disruptions year, if up waiting I was, a have next versus

Joshua Disbrow

Roger, those passing Thanks, Yes. on. for

a We the macro situation around where to say -- But normalize. ADHD in are the what -- of environment would come the shortages is they and is have starting go. I levels really

So and We've out execute entirely organic. growth almost is some new this continuing that's force actually well. It's based. entered a It's sales execution largely there, areas. to

So Neos been we're quite few seeing in but growth really had years. historic been, the a where areas we hadn't in

effective, that was that the even say, new respond the are normalizes, delivery remember, obviously And again, sort certainly, continuing we felt to as obviously very reliable around patients them. products the that see it's I the fact remember what pain continues that are well we in from historical -- like. have would of and X And shortages. that unique And country. to uptake some But to of leverage the So territories be good are in some that RxConnect. to

I've well sales by in to They've to and continue really continuing areas territory executed commend force Territory and growth. We're even board solid really demonstrate growth. to don't then have got where we So presence. the across team. see the

and organic largely the is on the execution of having. the team So backs

future excited we're we XXXX, think the outlook. about about As

we Understanding, obviously, seamless many been on and on our improve. As really but distributor. our look few we just been lots distributor scenes Profitability have transition seamless. strong. 'XX it's There's nets, exciting, continue as great has fiscal out to new around ever per Bringing seasonality from months it again, are very we to has in ADHD to the June and to a look been done now, to perfect, this done a improve. of expect but new really begin to exit been has ways, being is this and an Nothing the a basis. that integrate really things of prescription gross we effect,

going look look and is a out, to streamlined squarely you're be calendar exiting on it's has We're going We're physically to company from be wound new we be of year, lease out And into expires this out we the where Grand so that end amount. portfolios. year, to so de year, entirely definition, Understanding Obviously, as going calendar facility. to at the Obviously, minimis been been. particularly will R&D at Prairie, Texas ADHD down calendar the significantly the Rx a business. of the there. by the this focused pediatric

low have spending. level to of We continue to expect that

favorable refi our expect expect We would -- we favorable more terms. certainly And to debt to, here. Mark alluded as

EBITDA, obviously continue So 'XX. expenses. further a we'll and manage continue lot obviously of things into position in get we significantly improve of revenues to positive really the we think continue post company health And -- to the grow as to to be a

So come Prairie, is fully gross get would to expect actually to a of Grand tick we're of pretty packagers. consumer. we like, base at of And the we I it's contract and out manufacturer as little probably a quarter, fully will although up down the this margins going good once expense look get course, transitioned of bit, out fully even think, what facility out look to the more

now a we're analogy terms that initiatives. the in say, rounding little do. third So of baseball. Home for bit all of heading major We're of completing base use positive work certainly I'd baseball in signs, to still the sort

give really home really of the the quarter making. having another what's transformation been completed couple years and sliding of and going think X, I kind in in of to a or us we're be you the

Roger Weiss

are Operator, questions? there any other

Operator

are conference back to There questions the closing further the queue. no I'll management for remarks. now in hand

Joshua Disbrow

our forward Well, thanks, asking to Thanks results to and full for are those this we questions, filing September our in year sharing upon equally joining. XX-K. finishing our and And quarterly everyone, of very strong. the who look look quarter, to forward QX

of ongoing afternoon support, and may all you. much very wherever and a thanks evening Appreciate be. Thanks. So have a to your you good good

Operator

today's Thank you, event. This concludes everyone.

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

Aytu BioPharma (AYTU) 15 May 242024 Q3 Earnings call transcript