AYTU - Earnings call transcript Q4 2024

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Operator

Greetings. Welcome to the Aytu BioPharma Fiscal 2024 Q4 Earnings Call. [Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to your host, Robert Blum with Lytham Partners.

You may begin.

Robert Blum

right. All much. very you Thank Call afternoon, everyone, as Full joining for, Results you and XX, ended XXXX. and operator indicated, thank Conference Financial the and XXXX Quarter for the Aytu period Fourth June us Operational Good for BioPharma's Year fiscal

today's Aytu's open today's of us question-and-answer the we Officer, will and call Chief prepared Josh for session. conclusion on Joining Chief At Financial the Executive Disbrow; the a company's Officer, call is Mark Oki. remarks,

that everyone of earlier remind in to and call be is by link replay like I'd release telephone today provided A recorded. today's utilizing Events the Presentations. conference on today's available issued being by the press ID will the call or under numbers company's using the and website

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

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

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

Joshua Disbrow

everyone. Robert, you, and welcome, Thank

which portfolios. on prescription were as we XXXX, positively focused operating was Since successfully our of we flows, its year drains which specialty of have and of which our indefinitely completed commenced, pediatric our our suspending repositioned on Consumer transformed winding this development clinical therapeutics novel Aytu. During and commercializing programs growing July in included ADHD both cash company in down a and of fiscal the Health repositioning XXXX, business, profile Aytu pharmaceutical consisting exclusively

adjusted at you improved our to fiscal 'XX, compared million was adjusted in back million. when look 'XX. negative EBITDA For XXX% to EBITDA fiscal And $X.X $XX.X fiscal 'XX, $X.X million a

a efforts achievement swing point. a we've by over our So X-year achieved them than team, more thank to million span, to Aytu us and entire Quite get results. this for $XX I their an the all positive operating in

down which, the in 'XX, tasked mentioned, but wind in As Health Consumer cash operating that had of team revenue this would sell with off associated indeed line. of to generate goals the business, Health June previous to Consumer did We were we our our year, flows. have business million we announced goal bottom year minimal expenses inventory impact the those positive and not with $XX.X And achieved. this to remaining past minimize

'XX. remaining fiscal been through were we Further, While down business assets. as monetize fiscal we end the effectively final of the selling consumer of costs, shut health at in consumer the to to quarter 'XX minimize first health has of looked ways inventory the disruption some

Again, to health private agreement an consumer we business this achieved our company. to entered was goal divest e-commerce-focused when a into

Consumer future Aytu of agreement, on As part the payments to of royalty products. of sales Health the will business up $X.X former million revenue-based receive now

valuation of to investors and to wind the a could profile we growth, going those believe the loop corporate our business, and down operating forward. clearly the for and visible to the scream Health the close Consumer margin of this We market company's be we that expansion, made As will believe lead re-rating profitability.

ago, as Prairie Texas part of the expenses of has of third-party requirements about transition to identification manufacturer It this was diligently manufacturer. successfully started COGS. acquired a commence organization ensure across aspect of been we with XX therefore, much what meet acquisition third-party initially have orderly fixed We ADHD our and facility, We to and the increased of efficiencies the U.S.-based of needed. consistent a received drive closure source Neos from our larger could a the months that of the manufacture was, strategic large key the overhead and Grand production line. to transfer product was a Another approval which the pivot since FDA the than to and manufacturing to process then our driver worked

facility some completed costs our continue through the the the for June gross ceased landlord. the and related end all facility the our the production gradual result purposes, have to been final we in in we prepare calendar margins. and manufacturing as to to 'XX run over intents using has past but will return year We in-house incur The to improvement facility

Aytu channel. phase the has company. operations this Prairie we I leadership believe more the it margin down on that next led gross were the ADHD maintained, intense to to team. last in realistic inventory the of into XX% an pediatric fiscal Rx following to margins mix This or and our getting during is want And through wind products, XX% been thank everyone Grand 'XX by old depending sold the process year. product see between compared less and important and we as involved time-consuming move

loan to of note. particularly gotten we process, histories. term loan brand's a The the a secured our term mid-June, we million impressed profitability through that inventory portion I'm new this $XX million among in more which In Eclipse, focus production to the secured $XX challenging our our amortizing aforementioned announced Aytu. levels, refinance replaces team us all to levels entered towards on products respective in term our favorable highest and have terms into a that position and pay transfer with driving maintained previous put on term down loan tech

basis $X.X in savings expense. interest XXX represented approximate point the at reduction the results potential time which Importantly, rate, an in million of this interest of in refinancing,

the of from years previous January liability note matures now. become a had 'XX. current matured X of in now in 'XX, as It XXXX it Additionally, -- June

balance periodic filings. the sheet to more with results, improves helping most current language the with and of improving amendment potential with our capacity, for indebtedness, to in resulted we from key extended increase XXXX maturity company. refinancing, note, also agreement overall providing the credit of facility operating borrowing of loan from the our to the long-term a advantageous other the Concurrently with our revolving June So term term financial terms liabilities in date Eclipse removal with along the along our reclassifying concern improve going ratios. decreases refinancing our has by This the of

So when step few I at look a I our back key take points, summarize a and sheet, our help improvements. think, balance

$XX of with quarters. consistent and First, million is our the December cash March position

portion end Second, million our of $X June. debt at than current the decreased long-term from of less the million to $XX March in

our total by loan, have potential from March. decreased rate million And decreased we savings with have provide Third, of our debt which million $X.X for term finally, we interest will in $X.X expense. associated the interest

possible Aytu enhance sincere these made of All and of been thanks could financial business. team improvements to without strategic on to significantly moves My the operating the profile the everyone that. the we for not have

share at we with Eclipse for and and relationship Also, support my thank to Avenue collaboration team the that their build. continue I with the the collaboration over want excitement to the us years last Capital to personally expand and few

unique business while drive of can RxConnect is a scale added is years tremendous benefits in the the our compared to capabilities also prescription patients With pricing. promotional to in believe position the in dramatically and current future. focus X ago, for growth innovative future and to leveraging on consistent to business that efficiencies improved and to mix highly our program, products continuing the provides core and prescribers leverageable RxConnect which revenue products we also is through transparent and our be enable our

revenue period net an ADHD and same second from that XXXX. our when in half fiscal year-over-year For the year-over-year X% the year experienced portfolio with the XX% increased comparing increase of year,

fluctuations issue looking the March way, by temporary to time June our corrected in in to we to judgment revenue at experienced impacting trends view the by January related albeit quarter, second the it's driven net the best a last frames. been Given since has year's through effects by payer the dramatic ADHD that significant and half, gross the

when at So fiscal again, half growth second rate, that to was X%. looking fiscal half, second

The when growth was ship up X% pleased a temporary we looking of Adzenys time taken September over this we X% up trajectory way impressive shortages over time normalized. year revenue the from with even prior half up most frame in and peaking last units And comparative as since the periods. the basis. shortage an year quarter, this which July across benefit And extremely the but we experienced from supply through positive we're ADHD achieved industry a last Adderall We're growth unit with place, when the scripts current benefited thus are on from XX. X this year-over-year still sales that normalization at having XX% from yesterday, have year

written be believe perspective, from before few today a significant level 'XX. up scripts number up That again and to fiscal in brands. XXX,XXX in ADHD normalized years stimulant more in to a XXX,XXX put stepped what for a in we in 'XX, were fiscal 'XX, XXX,XXX To shortages this there change to 'XX, the Importantly, $XXX,XXX is ago fiscal was step occurred. fiscal

an XXXX is all-time of very least. about We've an to reset to line above the the say and trend to So exciting well high. levels, the free XX% at from baseline increase which is shortage XXXX

the that upon Something I the touched impact from Change that attack upon subsidiary, last wanted expand UnitedHealthcare again impacted to Healthcare. I quarter was cyber

and with Healthcare, branded that be Change what to buydowns, savings enables cetera familiar, other not dispensing interacts co-pay essentially those programs, systems. switchboard through pharmacy is a For et programs, among things, processed reimbursement manufacturers,

resulted with companies reimbursement across services. systems extended time. effectively pricing impacted havoc that many health created Rx in pharma products paid going interacts their Among care of unfilled. periods things, patient coupon significantly prescriptions This, also this get to often working resulted cyber physician turn, It and access offices for programs ecosystem for billing the and and attack physician other in not in and many

the range co-pay to we quarter dispensing. The the to system last many was our such albeit particular, is chain higher of co-pays an sequential mentioned In that the our impact a largest likely grocery than customers some decrease effect our cards attack, industry. unable that in that traditional prescription in than make change cyber the one from XX% much $XX. were less in net others I process changes felt of

have our had So we QX to with this and experienced that additional was issues negative customer would impacted. impact on surely this negatively a consider temporary Couple ordering business.

back more to normalized and back and Max product co-pay for fixed, issue as are that to patients processing $XX they're now ordering is Fortunately, and finally, well. commercial

couple yesterday, of go, a I based days that Looking sales growth future XX% bit, will our ADHD expectation we volumes on are of still is read the to July the September up, business X see unit with through a preliminary to from as our XX. a data script said, as it

Now caveat unit that let me is growth. that, this

of revenue very we're So said, That mirror fiscal this to doesn't out pleased with we here and growth gross-to-net shipments as always round to distributors. variations QX. trends the due timing our

the 'XX. impacted of September On changes by to pediatric in payer be continues that our pediatric front, portfolio occurred back

However, of seeing touch signs here recovery numbers promising shortly. the we quarter. on those in first are very I'll

drifted fiscal pediatric revenue during $XX.X million further scripts the $X.X fiscal million. 'XX. during $XX,XXX In were fourth in to compared $XXX,XXX indeed to the whole, net decreasing This sequentially. in fiscal resulted 'XX compared quarter, to On revenue 'XX

I know believe, I for have at this and out here. that bottomed can However, grow -- and levels said from here we I've these before, do

portfolio us early We've pediatric track, back get we the on give we products payer back the taken commercial and remain us of but 'XX. about that prospects. time confidence initiatives some implemented can the than first growth channel signs the months pediatric across get to fiscal has more a during X of number It issues to growth anticipated optimistic that with

from least. are For pediatric unit very products, the encouraging shipments XXX% say through X is July up to yesterday, which

a in increase securing improved we've reimbursement both the initiatives lives and around multivitamin of as and put franchise, efforts. those result seen place a We carbinoxamine covered numerous significant for in

prescribing increasing with promotion dispensing force physician products way good we're pediatric pharmacy already we're of and by our sales materially ordering, reordering. as both seeing early and such, traction As our customer

to discussed. increased changes lives We've payer covered due were areas our lost previously we've that in the

coverage, as to So we share areas promotion significant improvements. had regain previously some via in wins, realize we're we have beginning areas. we're payer exciting areas coverage those Also, and grow resourcing resource direct where those and have to also didn't we now very

long pediatric products to the we again to but abilities the point to once for believe growing and have confident continue back way company. our the those can acknowledge I we back a meaningful very we with be to get revenue being go collective those the portfolio. get at to were contributors levels in of We win to

we're though, our having. now rebuilding For impact excited are about efforts the

the Much program. our result achieved RxConnect we've success important an best-in-class been is and we a of past of the few has efforts part during of that support which commercial platform, years patient believe is our a

patient-centric more our pay and brands. no and program, boast pricing clear guarantee provider access Our for which through than we

It works partner our of the out-of-pocket X,XXX-plus reduce our deliver brands, hassles to directly through for our treatments significantly nationwide predictability and prescribing our pharmacies need for patients customers. costs who ensuring

infrastructure can RxConnect to we evaluate platform we ways and as of go growth forward. unique continue Looking forward, the drive our will leverage to commercial capabilities we

objective improve over Mark, turn past and in years. few I EBITDA fiscal financial million I before pleased. positive $X.X We've the it's We 'XX done the our to couldn't more over the had Aytu been this up transitioned business things just million with with a that wrap adjusted it be $XX.X one that, negative year. To of profile to in

at has this terms refinanced from company. on time steady to $XX over million favorable also we've paid of on hand June cash down our and while million with end remained loan down the more the balance Our term over million to it $XX $XX

levels change fiscal Our about ADHD had portfolio up significant has script over from positive growth a step preshortage 'XX. XX% with

us bottom year-over-year sequentially, portfolio we're impacted achieve adjusted the current yesterday is our levels up flowed expect our beginning we While release in show revenue the indicated net line, basis, impact in our go a fiscal providing our progress. EBITDA level over with to from first the of shipped XXXX. a through I'm in months forward. the through we with X to on units negatively and 'XX EBITDA progress which confident our And pediatric earlier, as plans high optimism in of through fiscal growth which as and XXX% fully

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

Mark Oki

and us and this joining Aytu. welcome Josh, to Thanks, us everyone help turnaround the at call acknowledge operational on to review

detailed full and in results reminder, financial we quarter our and year As and today. our a XX-K are our earlier Form press fourth that financial results released release filed

key some where areas focus added today on my comments can. me a So let few color providing I

at look let's First, revenue.

$XX $XXX.X year. was for Breaking decrease Rx, For compared the XXXX fiscal prior our to fiscal a $X.X million $XX.X growth net of million. half revenue million down, for to saw fiscal from year, million the $XX.X products in net second in the Within Rx of we revenue it year. compared was our XXXX, segment X% year the the million in of full ADHD

$XX.X comprised For net saw XX% of million. to increase compared the period our $XX.X portfolio revenue year, which prior a full of ADHD XX% Rx year to million the

coming decrease compared in to $XX.X million. in year revenue last with by a portfolio net growth of $X.X in The at $XX.X year, pediatric was million ADHD our a offset full decrease million

to quarters. the due indicated, prescriptions, over see now communicated which change impacted out, Josh pediatric as signs pointed improvement. Josh changes the payer As And have starting of are also past we that detail in we to few is

decrease revenues the XXXX. more to in extent, at to was last a and as ADHD XXXX compared status segment pediatric specifically lesser in fourth million $XX.X the adjustments change a of reflected as in quarter primarily in revenue decrease million net gross-to-net The Looking a compared the normal a to fourth mentioned ADHD to of year. RX QX due was $XX.X sales quarter,

in that have we pediatric we are growth ahead see to guiding portfolio we 'XX and return as our are continue and portfolio will XXXX again, pediatric a fiscal both revenue And to ADHD and XXXX EBITDA numbers. fiscal for Rx of growth entered products. of We seeing our optimistic the to are fiscal adjusted

was of to year expenses a this wind to operations. the associated minimize Over inventory down initiated and with plan those we business. ago, Part Health Consumer the our sell year remaining plan

All As and the revenue Health net a $XX.X Consumer in fiscal Consumer the decline year $X.X XXXX revenue fiscal told, XXXX. Health business in for previously declining the in business communicated, fourth business million Consumer resulted for million -- our this from for absence down the this forward. strength of prior quarter. In announcement, business the July and and XXXX, Health improve as RX was The should highlight in the outlined of divested. adjusted going EBITDA was wined

business our discontinued Starting statements. first will be operations quarter in activity the historical of as Consumer the XXXX, Health in related financial to reflected fiscal

Turning to gross XXXX improved gross Company-wide in margins. XX% XXXX. fiscal to to XX% compared year full margins for

at once the the gross towards the improvement for wind For the business in Health compared QX To Consumer year. our of coming from highlighted a given across reflection profit look segment, what in margins get business mix year. improvement of of our is for segment. to The going with was evolving XX% quarter, down with XXXX the in a this the coupled XX% XX% last of this made was quarter Rx efficiency the business gross XX% improvements RX help like prior the everyone Rx again business forward, margin better will picture

Let's million contingent prior million and in restructuring amortization compared $XX.X OpEx. intangible expenses, to were excluding costs, the turn year. expense for to assets, fiscal gain of $XX.X from XXXX consideration Operating impairment

$XX.X adjusted efficiencies. million health consumer of $XX.X decreases number For in the were period a operational in ago. compared million quarter, this reduced and fourth result OpEx the was XXXX spending to a The year improved same

$X.X versus and year. the development million million $X.X last year, research expenses for R&D were Within

fourth our quarter in CRO. ARXXX in $X.X the want corresponding a XX-K of of press activities incurred wind for manufacturing million incurred For were closeout business XXXX in I you which of of and final fee $X.X with the charges out we to to Grand the the Prairie related will down. Those had XXXX, we in Health the quarter, that pertaining of R&D was that have restructuring quarter. $X onetime release that to million the to facility quarter the and year, call compared recognized closure or million million are the note $X.X reviewed majority our the our fourth Consumer

We business highlight also a core $XXX,XXX basis. of understanding expenses We the these our a on of Health cost to items had with to sales. associated better inventory wind-down go-forward provide specifically recorded a Consumer impairment

in XXXX or share for was fiscal versus a loss net per loss million million Net $X.XX per XXXX. or share, $X.XX $XX.X $XX.X fiscal

For a last $X.XX million versus share. year's $X.X net improved million the of share $X.X quarter, loss operations net XXXX fourth loss from from $X.X to per $X.XX loss million in XXXX. the of only a a million in or Loss per incurred year we or loss loss for $XX.X

fiscal million, was fiscal million the compared EBITDA prior million EBITDA a $X.X $X.X for fiscal Adjusted $X.X to year, $XX.X period. XXXX in the For was consolidated increase. XXXX's Rx adjusted year contrasted the XXXX for million business year the million to $X.X

change to net to release full to business. issued due primarily of press the quarter, looking in quarter compared here A and million loss fourth EBITDA For to to lesser our adjusted due the the the earlier EBITDA today. the EBITDA pullback quarter was normalization in the $X.X XXXX in pediatric $X.X core prior consolidated the of in extent, reconciliation the million. of million year's period. quarter $X portfolio against the million at business, was last available the adjusted $X.X is fiscal The is fourth the of adjusted just ADHD And Rx year

and balance as the $XX.X million equivalents sheet. compared XXXX. XX, were XXXX, to cash March June million XX, Cash of now Turning of to $XX

the Eclipse. debt lender, biggest last on, call, consolidation since refinancing our sheet one touched its our in of Josh the As and balance change is conference into

helped and few folks As at aside, achieve last true are would partners Capital, forward I Avenue to our and us goals like years. move the too who the over an thank

the With loans a we our and in XXXX, auditor's in in note reported maturing old going the financials opinion. concern

maturities We fiscal XXXX, we been XX-K. going and are removed fiscal progress. has with other our our the Again, as operational of into language XXXX improvements, are pleased we extended look from debt that concern with pleased the our

U.S.-based positive our Consumer finalizing business, our seeing We credit and us pediatric production our outside are facility, expense our rebound our Texas and Health improve flow have to are our and free in completed manufacturing gross refinanced ADHD our contract shift manufacturer, These margins, a portfolio. should and exit and cash focus net interest generating exited to allow on interest extended facility, our income. debt from reduce accomplishments

One hand statement. the I to with thing back we it to along note registration XX-K filing today, before an filed of also shelf Josh, our S-X

Our providing previous shelf to as in expire matter, X October the corporate active a us shelf with was the in housekeeping financial next filed future. have in we to flexibility years, an and set

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

Joshua Disbrow

high. the Aytu Thanks, Mark. remains represents My opportunity very excitement for

what have completely for company transformed We years just this outlook from the ago. it X was

sheet Our balance remains strong.

core and of improved, Our this significant profile operating for the business potential. leverage has dramatically infrastructure allows

today's I want patients the at which to off in be stockholders. answer to fiscal a to and any for both to hard you participating call. delivering thank 'XX, very work As always, now for team entire dedication Aytu questions. and to is everyone forward nice happy their I'll start. to look Thank We

Operator

Instructions]. [Operator

comes question First Naz with Group. Maxim Rahman from

Nazibur Rahman

have Congrats progress. on mind. if the few, you don't a I

and I your to start First, want quarter. franchise the sales this ADHD just on

the than you XQ at you number, of and last last expect get back start $XX XQ were year's Q know you second levels? levels look if forward? around to Q 'XX, XQ. the What of second I numbers But Or just year, you're $XX you to if seeing you do to half weaker 'XX, growth. based that you 'XX said XQ that of year-over-year were you going those of take So back first gives those the million confidence million. to to get And

Joshua Disbrow

Naz. Yes, good question,

new snapback try year -- by was think payers, mandate our that here. payer And I March to that came one and basically QX essential the a snapping of put was change to products it unexpectedly So the little a we'll management turn, error. a was actually payer error payer caught early, commercial contract -- then products -- in a that area with. acknowledged that from list an put in into normalize damage, you occurred quarter. to we very clearer that coverage. occurred put change really removed will, in on some management the fiscal in have And the the That, utilization QX. had essentially was products We there done response sort It enabled and to as the QX, our we that us That -- and that if rather. from bit essentially make our that the QX reverse described, utilization and of in and back, QX.

then the core QX adjusted just gross nets the March that So the boosted in demand, of we confidence raw and and that on sort level strength, QX abnormally fairly core you but have really QX, that high low if look you smooth actually is at some quarter. materially, of to revenues, it at have look a prescription based of and important ways, if sort at sort to since out units stabilization of look what's particularly that most prescription demand, of improved just again, you

day, of from seeing, as I shortages end some happening, of the about significantly physicians the levels having prescription obviously, in of predicated off even amphetamine higher baseline, category. it's of the that at high that reset all so mentioned, And year-over-year, the was were we're the the higher particularly and prescribing,

degree, particularly been. up that boost again, that than up normalization QX, over raw And really demand, number so and significantly, pre-shortage should this because to higher it when revenue you of And at some have occurred it did, levels. it's look in

normal with to normal net fundamental very demand really and ultimately, the So cadence, via gross a to we there comfortable that's prescribing. back we're feel

Nazibur Rahman

contracting at Got changed into essentially level fiscal demand and sales? of it. sort entire reimbursement and you're of your How a 'XX going thoughts in managed as are on care now the game higher

Joshua Disbrow

possible, open entertain always lives I'll they if for for Obviously, be going we that that many ensure to as with in have to Naz, can can always we to don't, only in on remain some case, contracts terms products. something and the as that considering work say we active will to are sense be be those. make covered going our but to which open They're do discussions we contracting for it's sides. wouldn't favorable we'll In payers. both cases, company.

to just that, for $XX commercially got virtue by to can or payers, they've one assure these it discussions, we more for insured leverage open. landscape we pay patients no this We'll of way point, navigate guaranteed that covered insured through to of is work sense one remain gives commit have So of co-pay itself. to presents don't open it knowing enables to us with commercially reimbursement obviously, payer patients irrespective not ability say, have have have. thing any but open and the said, patients. That ultimate than or to been the we on us other than to landscape at look, a another, be will and the terms to really high any that any RxConnect having contracts contracting And make level for -- us.

bit we say So never a would to also always. say say we nonanswer, but a but never of never,

be You have flexible. to

be forward looking. you've think to I got

we've in to going mind of that have give be got and is of mind peace where, the a -- you've that no at got more You've got also than coverage, knowing product the keep any to mechanism irrespective patients in ability $XX. place we to covered their do

Nazibur Rahman

API Got it. bit that or you generic know for in the of Aytu of for think do That talked DEA was amount Recently, How normalizing. shortages API I Vyvanse you quota helpful. much generic an Vyvanse increase the annual impact XX%. at a all? about impact by some roughly may that of the or core Vyvanse are increased Vyvanse little nature, if

Joshua Disbrow

if in Adzenys particular. don't us. with We impact any, will with it on directly think minimal, I have Vyvanse, compete

still products. of a was Vyvanse we any While market. release the inclusive -- obviously, even large frankly, of command particularly despite stimulants Adderall and the many extended XR generics, compete share included brand Vyvanse in of a ecosystem the a an remains large and actually brand generic relatively stimulant, inclusive of

a that is. of the -- So small share relatively market

a X% X% than our the decreased, very of how a the and of customers increased saying, in asset can to that our that over with be, the and whether to the mess number of you're something quota perspective of are X%, those that's X%, to changes, even experience offer availability less the predictability. from that's on patient X%, have the their by been case impact we're Or time, market end go any the about office is of irrespective term in we going that's think, of real methylphenidate, we that So the day, the market perspective, as won't Vyvanse or in doctors And staff prescribe think goal from as and physician much the impact it. At a short we from category, and Vyvanse both with of XR. look, Cotempla an of market message to been looking certainty, -- molecule have prescribed can quota XR. grow economic generics every clarity, approved specific an for in well product, created or same if and I that's a Adzenys predictable a

just irrespective larger those of products of DEA the are of that brands some quotas or fine macro of to large it events we happening, sort can of irrespective whether generics, of our any do so And changes. growing or sort relates the

Nazibur Rahman

it. Got

bigger start the business fluctuations, the material know you do for what really about you differences is a pediatric level point, think Or of strategically business before that see how strategically, a level want business, volume normalizing certain of about is, I you or I And of you there net Is there the that in you you to think in do to that the monetizing return terms want better better increasing. But certain pediatric to the much to just question maybe revenue? to guess, thinking divesting On yet, translates business? sales mentioned I have gross the due to? is a revenue?

Joshua Disbrow

we we business I is, part was, where fiscal confident that. To can the there would significant add to if normalization I'll think coming last pediatric of level said, Karbinal be, back prescription to the consistent think, of think levels we of get can bit saying going. But they large a is said, it it. we don't meaningful. to gross But products year. higher product And in maybe comfortable back be the having last and That business as modeled even as be have some running out put can one ADHD and do business to ER necessarily through that and obviously, your up think not important 'XX. That to What question those back on very seen take had they have cases pediatric GTNs that the came business be have contributor. been, look, of net the represents and nets, they ascribe can is, be may been pediatric the and chunk today, think number even sort it's the such the we we A something to pediatric I initial feel of meaningful of it some the talking it get while to it gross than more we of of our growth that a quarter be the can to nice been big and meaningful. the brands. think a which variable, bottom next about and to of, we of there look, overall is value still us, that for And revenue. consider going it multivitamins programs view the are that is chunk could to help up quarter or And line up where more halfway even we I little thereafter, get say, get for were X/X look, movement around it we value. significant bring to material to not really back have don't we was the that maybe would yes first, we And and optimistically, been them we've we back scenario those. have a I'm If them, said products, example, just will around the are return a very that's revenue. having to obviously They products, about. someone monetizing revenue us. our such core we it to the a guiding than reasonable specific is, want sort think pediatric a

If the this direct think has just million million, on pediatric it, that you EBITDA. about straight the obviously, really our EBITDA meaningful we of, our are as back operating think improving us and And get them getting $X.X number cash be for impact $X flow operations through ultimately EBITDA such that's get that with And to line. flows quarter about If you the call can they back cash under Rx can segment, the expectation from it to dropping to bottom products. meaningful growth, them to contributors we flow. and

Nazibur Rahman

was That high-level helpful. have last And it. here. question I question and just just one a Got

and of of you But is where in margins and So Rx strategically generating growing the and revenue and -- you what obviously, generating ADHD more like of are just beyond are about to your thinking terms term, how accelerate or in of business business expand expanding of cash. long sort better more terms growth? what's sort Aytu's majority do Aytu you

Joshua Disbrow

stages we're we recently We enable for a pharmacy very play think through familiarity Naz, irrespective bringing of And can to back leverage brand and that to it's patients of of capitalize the the that early and prescribed one hunt we we brand. this ways, virtue the that be RxConnect can areas. it RxConnect of continuing in some which adding in is that launch, network. the smallish product leverage fact about is products a think really that that additional leverage are but an this obviously such that the on gained through therapeutic X launched on We product always can have is we're the by

And do we understanding without and psychiatrists things added on then so we expense expenses. And can any really handful variable and that tuck smaller call would that of therapeutically, significant we any about think things think we infrastructure align beyond a in pediatricians primarily.

smattering in sort smattering prescribers We of also others. have of practice general primary a care, and a of

the psychiatry and base. that we've the a off leverage some afforded that with then that can revenue assets additional naturally be us take are on call we've ability RxConnect we do bag or sold stage customer material the align things of pretty stage, and flow pediatrics. We've is envision force that our amount and to incremental drive near got we line. whether point, launch the for to commercial by hunt got leverage. bolt bottom on look And So additional can to with prescribing things it to sales got into And are for always the that enables the would network balance products cash can nothing would put ready. be have But leverage commercial that the sheet that because

so opportunities. can revenue. through got has real to and an we we free put higher us the additional such that in cash flexibility want are to we've So at flow leverage flow, a down hunt. And we actively that even being point, for operations of on ultimately we're in think to ourselves point both those cash the bigger But that and of company strategically, we're opens once obviously, And more make generate road, can assets revenues a look, that position sure materially that focusing bring we mechanisms, on driving this be at take I cash level. generating disciplined, from the up

Operator

Instructions] [Operator

Robert Blum

Naz initiatives I pediatric was very on had sales to be expand this most little of in is recent, a the detail given to provide couple you've appear Mark, upon positive get there actually in here. which of sort some the hoping QX of of one a growth touched We sort back the that implemented products could these what of them maybe more and you to to was trends here, Josh is offline on Robert. questions. but

Joshua Disbrow

Yes. here, Thanks, that it category pediatric X passing portfolios. for take really buckets in Robert, pediatric in by product the the I'll on. in

as plans have states, a First Karbinal actually in and on written. states coverage. Previously, or and of now Medicaid by geographic product of I'll to all, came states. that's specialists Most where ER. had from prescriptions driven of of capitalize what up relates areas payer spread actually driven that ability significantly We're the diversify is sales were we've excess favorable. sales have sales sales some largely sales some our And largely And historically recently by from Karbinal where first able say prescriptions to Medicaid handful and it us to the X that states. being actually X coverage. concentrated key was deploy of in to picked and That's foremost for been resource further broadened ER coverage Karbinal XX being

can't them we're by it's small a So way, at once. be sales while uptake selling adding still not their still while very focus targets. and broader force, That's we responsibility ADHD current seeing ADHD understanding significantly And sales to good we're enabling geographic the company, on by it everywhere, representatives. just we're it's putting everywhere coverage, our early that

some coverage levels, the some pursuing good particularly really and seeing uptake. particular, around strategies good state we're places how even states really coverage, So had in at and seeing we're changes some in lost we where new just in coverage given and some

coverage, So old really lost states that we're prescribing had getting got reason the covering in in that of carbinoxamine new for that seeing particular, in states amount big fair come cover previously coverage Karbinal was dropped we we're good which -- then And that are a back. it. didn't that had we've

of had of a actually targeted, Karbinal very our being some along with So of judicious, ER, got promoting in very force just the very sales way, a responsibility covering now for Previously, force, course, ADHD the brands we've majority or chunk a products. form our handful big one efficient. pediatric of sales shape representatives we sales with

the getting heavily we've most incentivized got the ADHD brands. sell now so of to ER force And with along Karbinal sales

getting emphasis, picked and and really having that just having in excited our got to promising can things some promotional states. We've coverage opened we're help incentive some what do some up new to some and other distribution behind up see augment have some internal some see from it, of efforts. compensation, those starting to really about areas some extra partners also some excited So IC other

anticipate There really the issue can't I for it to chain that, to their that the inventory some gotten some a was good multivitamin, issue to have get they has certainly we we supply time, say had we've that at gotten slack of back I'll such pockets largest taken of dispensing but done that absolutely encouraging. We've ordering level extremely improved needed also historical pharmacy coverage various look, of back say the the are our slacking dispensing acknowledge And multivitamins, that With multivitamins places. sort in gotten resolved, significant while particular that happy least customer unslacked. that's so online. I'm previously,

some putting resources against gotten So coverage. reps areas improved we've and commercial other some in we're some where those of directing selectively sales

previously in big market encouraging starting that's pick for have patterns and some see on. had up big on to can the good of multivitamins going sales and some new we also big some populations opportunity areas that states and these with So And areas fluoride improved to distributors we ordering and much some sodium of see supplements. optimistic we hadn't working that

incremental opportunities doing doing it with the the sales in we distributors what have aligned present place, resources resources, be diverting we're But in ahead. we're themselves, as resources, place, everywhere force recently company that it would seeing. small we've go not with spending with and and that putting about limited with we're we're excited blast Again, we're because just going at once to out seeing

comfort multivitamin September seeing say at to August both Karbinal all as is level look as some we to it to pickup. are get going real we're the from -- July In this high sales that as well So looks increase as you time, franchise. of orders to

partially we even put us about back were, revenue frankly, get take not can products get can little we to were, going become again. forward. It's excited to pediatric if we So We to back meaningful time. the but what where may where contributors going together we a

Robert Blum

question other had Very right. here. the we off-line That's All good. only

live it you turn to I'll over guess, here. back I any John, for So other questions

Operator

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

Joshua Disbrow

delivering nice their 'XX. off to very the And patients. a -- view exciting, to we dedication and very very our in and just productive Aytu very call. a as team what to stockholders. entire growth-oriented thanks We thank all always, participating much. fiscal as for start, to you Again, the as to for hard It's forward referenced. look Thanks very for Well, I've work and

participating for It look QX sharing be everyone our year. we here to on news in forward XX-Q thanks and for will report our this we all to November when our So time, fiscal Aytu, later such a forward drive and to interest for continuing the your look you to Until in quarter. for I good September business. wish your time. Thanks evening. Thanks out very

Operator

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

Aytu BioPharma (AYTU) 26 Sep 242024 Q4 Earnings call transcript