NOVN - Earnings call transcript Q2 2022

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Operator

Hello, and welcome to the Novan, Inc. Quarterly Update Conference Call and Webcast. [Operator Instructions]. Note that this webcast is being recorded at the company's request, and a replay will be made available on the company's website following the end of the event. At this time, I'd like to remind our listeners that remarks made during this webcast may state management's intentions, beliefs, expectations or future projections. and and statements forward-looking are involve uncertainties. risks These

expectation call pursuant The materially. to looking Novan's Securities statements safe made this on current on based of Forward the could are harbor and are actual and results Laws differ Federal provisions

a place reliance forward-looking should on not you result, any As undue statements.

The that Commission. periodic actual by review the results and these documents documents statements forward-looking Some encourage reports, such We in section materially files discussed differ the you Exchange The Commission's factors Exchange of website are of the Securities to are available could the to website. cause Securities in These and Novan with contemplated and from Investors these on carefully. company's

is from studies, data research. certain and other sources surveys third-party based on own Additionally, in to contained information estimates obtained publications, the this and company's webcast and or relates

these the to has completeness the presentation, that source of verified this of company sources. to makes any the obtained of While any representation third-party as not or believes be accuracy from reliable independent or date adequacy, verified fairness, no is third-party it or sources information independently the as

today's Novan are Stafford, Officer; Novan like Chairman, turn and leadership Stafford, President President Health. would proceed. from us EPI Paula I John Executive call the Financial now Officer. Paula Please John to and Operating team Chief Officer; and Chief Officer to of Joining Chairman, Gay, floor and on Chief the Chief Donofrio, Executive President over of

Paula Stafford

second compelling by that in we XXXX. want and this belief you, you to steadfast Novan for for including why. sharing thank look forward financial joining opportunity, of you Appreciate with our remains during our I morning, the update, Good off Novan's remain stating I a and start exactly discussion Thank corporate investment results to that Jamie. that. quarter

develop by Novan. we made the EPG truly going for JAMA the Therapeutics-New molluscum for We've acquisition contagiosum. products. share half proud treatment $XX the to patients our target foundational territories. marketed we're berdazimer nearly assets. by FDA-approved preceded potentially leap opportunities news strong promoted by Dermatology We're an momentum We of We're announced delivered authored written for treatment date securitization as future May partnership Rhofade, Around -- And option for for off no Options toward XXXX exploring the finally, our and company our EPG of the with promissory Also editorial Dr. pleased July, $XX.X the titled, million, Contagiosum Vikash of expense in saving "Molluscum Oza. Be with paid million we Corner" note company's the U.S. than product for XX.X% ex gel, NDA later for of submission end of for As no bringing rosacea great that second were March a for first for in we're the our forward actively tracking a the that therapies, dermatology medications pivotal that the capabilities commercialize and medical Browning others. solid and it B-SIMPLEX, of a into We've results exciting We've XXXX. growth company Novan. Journal Health, our discover, in of Phase very volume innovative was EPI our progress reminder, to published skin. from has XX, III study, Dr. and research, John created have diseases on a closed in And July, the on with to

medical and the value product dermatology diverse our pipeline. field and a and focused among strong on development with engagement is ensure we commitment with to our our patients our community We've employees. execution, strong to deliver management high to across platform readiness, portfolio shareholders. promoted serve we organization to With demonstrated commercial performance Our our customers the

other dermatology as specialty medical Our disease and into pediatrics. states expand area as to areas platform is the such within built molluscum commercial such

here. commercial on key mandates X dermatology you our Our in markets of see top products promoted the that through X is organization focused expanding X

commercial We and lead, we commercial be D'Erasmo continued of EPI more our We've the nearly these to we integration on I all XXXX. thrilled. national good Toward the of to of legacy business, the mandates. May, made helping remaining Carolyn also And completed at initiatives team execute Novan the hired leadership couldn't in in second our sales in Health of grow our beginning and July. progress quarter

territories focused on the new on as that In based our are momentum our exploring XXXX, continuing mentioned, off at our we'll half awareness of to this current remain in driving as is. ex-U.S. invest brands, on holding We hiring and we I into have second time of people, opportunities.

brands awareness, brand SBXXX via product product and busy sales candidate, been of our and we've medical our via promoting education. marketing Speaking

team and team to supporting commercial approved medical have and contributing publications, Our our data our meetings medical our sharing or been affairs scientific and messages.

XXXX. Now at report I'm pleased to Overall, of for let's to second X of X high prescriptions performed total in continued growth how our promoted discuss products. the X. a quarter growth double-digit quarter X quarter in level from we

to is the above in growth be first expected ready of SBXXX the prior history now quarter XX,XXX over prescriptions, with with the last quarter again which is of nearly year for the excited X the XX% the with MINOLIRA above Cloderm strongest have quarter prior over XX% infrastructure it's brand, addition And we potential year, we're Rhofade, For to the growth, a the since XX% also the prescriptions not closed if in the into our second was year, quarter increase the shown in previous approved launch, which for mix, quarter but XX% of consistent quarter-over-quarter molluscum. remained over and to growth as high for growth our same down same the quarter month-over-month previous X. and focus. quarter. as quarter. in to compared strong all-time the had launched the and XX% has Cloderm Wynzora, period compared mid-XXXX, quarter this last the is

X total XXXX. see So X growth XX% of quarter of you to overall, scripts quarter comparing in XXXX

pleased met performance quarter total that our So of a in really internal in with we're in expectations our terms prescriptions. summary,

people. Looking the market at XX The around million is Rhofade specifically. in U.S.

for product fast #X the use the product and facial facial weeks. persistent erythema or prescribed is Rhofade over of daily acting regular Our XX Rhofade with improvement is persists redness. treatment

We in here XXXX, as the you'll right total early product since have scripts after see driven growth XXXX. the to late in acquiring

Now on to Wynzora.

the This just grow We is a We minocycline product betamethasone seen weight-based water-based partnership for of to with the On calcipotriene for dosing. psoriasis. dipropionate MINOLIRA only ever and strong the quarter-over-quarter a of have it's U.S. and ideal a for ago MCX Therapeutics combination collaboration and launched year and in a plaque of first number the offering treatment system scalps. cream, the scoring, Wynzora flexible first MINOLIRA. launch. is and elbows delivery over knees, have for since functional acne, for biphasic acne, and and of prescriptions prescribers the commercialization

you Here over solid years. that also we've in on seen prior can right, the and quarters the growth see prescriptions

Now transitioning to our development focus.

which or efficacy And condition tolerability of JAMA Our Phase as with office-based lead product I prescription prescription pivotal a Dermatologists contagiosum. FDA-approved the is likely pediatricians prevalent currently results procedures. there for berdazimer for and potential results treatment. and Dermatology mentioned. aged the as SBXXX, recently, XX.X% sought is contagious III reported molluscum treatment first were the a candidate from In these X-XX, in primarily B-SIMPLEX. gel, FDA-approved highly no known is remain in treatment children published robustly Molluscum positive our study concerned we topical XXXX,

III demonstrated safety a and Phase profile. and pivotal our evidence favorable with statistical study, Our and efficacy primary B-SIMPLEX, clinical of secondary endpoints

potential for NDA preparing So our We submission. are what now now?

As and normal course of customary business, completing drug stability product. substance drug we our of testing of are batches GMP

best our preparation seasoned established a and and if before, Importantly, gel, approved, date education. a I'll that launch Novan's and meantime, activities a most year. CFO, path been now product the through we've We for berdazimer different. an is continued times Gay, we've John to XX.X% John? gel, end In launch commercial or leaders if At commercial financial launch in our to pricing remain KINSOLUS. before opinion XX.X%, identified will acquire track Health. planning on plan launch. to berdazimer for key a to our delivers business, and and our targeted reimbursement promote capability, the We've no affairs with meet towards plan manufacturing turn developed we was of success and scale Novan, potential launch path team outreach These This our ongoing submission for strategy potential include as a the key and team approved. said the of EPI compelling many that the the medical we medical value, highlights.

John Gay

morning, you, you Thank today. our joining appreciate We call Paula. Good everyone.

from quarter quarter which in This consolidated commercial the we initial our business. results have represents fully

the it full our performance this on on primarily focus first will comments business my data regarding quarter's represents quarter as the such, set commercial a activity basis. As of

key we are revenues EBITDA. like data I to on that points the to this not in relates a it to touch I position guidance Before as yet XXXX quarter, for some or participants remind provide of our would

as noted, our opportunities However, portfolio. for we Paula product growth certainly promoted in see

June ended reported XX, of business commercial our quarter second revenue the million. For total $X.X

of respectively. the Rhofade ended see, months for X upon X $X.X and revenue included in date the have XX product months sales the prescriptions was a continued business XX% our total Rhofade first March with call X businesses year-over-year Net our to of activity for EPI that business increase and XX, ended and revenue total million. X quarter participants XX% commercial months a the acquisition was QX of can days increase $X.X you year-to-date As for commercial only June the for I $X.X of based remind Health. our of will for QX. XX year-over-year grow ended commercial included the million million

of year. for ended the our cost press million sold a for and QX presented costs. goods continue this sold and expenses data I'll for X addition provide we in and $X.X financial to our goods on from opportunity was results, QX Commercial months third-party the of of finished which manufacturers addition, IP morning's third-party last in which information see complements detail launched June expands Wynzora cost includes product in in now release. improvement provide more to licensing bit presented context financial Cost and XX. the of goods milestone royalty procuring sales-based the In

the $X.X $X.X for prior expenses the of incurred the million of $X.X the prior increase million related million primarily to Health's The and XX expenditures to of $X.X $X.X investment transaction-related loss consolidated X research administrative and June commercial general commercial to to year. to million related due increase $X.X for On expenses consolidated On ended for $X.X compared first for a Net million and SBXXX period. costs compared quarter months was The commercial this of was $X.X related to our to related to second business year $X.X in quarter trial. SG&A strategy expenses ended million for a R&D compared for months prelaunch based $X.X timing $X the the compared million preparation. net million XX quarter $X.X for for of was million period. development B-SIMPLEX selling, million of basis, clinical X loss acquisition were second the SBXXX of prior year business the period. $X.X the total EPI operations; primarily the the as on million June the decrease was million in year to a program million Our basis, and

days However, as included XX only quarter first the activity. I mentioned, of

line comparative to see, improvement excluding investing gives to our continue Wynzora, drive the year-over-year last launch launched growth in the our opportunity at on marketed and commercial portfolio As the while time in the potential the forward from bottom coupled prescriptions, same a year, which you business commercial to of SBXXX. business of the looking optimization QX us XX% with for can

million. total of million As we $XX.X to receivable sheet, had balance an of it accounts our of relates balance $XX.X and cash a balance as June XX,

funding could need of operating do expect product support commercialization product make our We that development not future under it and and are any financing our range currently our and SBXXX strategy in programs. With that additional broad pursuing sufficient funds a back extend other planned to further to complete our we of I'll activities We in we will advancements product used investment strategic have our ability to development. to continue be that, to alternatives Therefore, Paula. candidate. of turn

Paula Stafford

Thank you, providing the John, the behind highlights. for detail

quarter. quarter heels in with the the pleased of on are We first good the in progress second progress Novan's

We front the end XXXX. half of second the have commercial momentum at here of

NDA berdazimer planning launch an and of potential continue drug approved. We having if to now XXXX, drug our toward for efforts our product advance up XX.X%, gel, submission for and stability, on product preparing we in success ourselves substance a are

expand development never could operator, opportunities. remains that we like facilitate for for collaborations continue future excited consider and full proprietary In closing, focused the U.S., and existing than Q&A evaluate energetic, our it pipeline we've are team our pursue, Novan we I'd commercial you to continue And We the growth explore beyond Thank and to products to more now session. turn been to you. our today. future to our

Operator

question our from [Operator first Instructions]. Jones today Jeff comes And Oppenheimer. from

Jeff Jones

guess, a the on target? consolidation the the great the MINOLIRA forward those looking submission trended FDA a are should year as of SBXXX, head at on I businesses. the is any of for any looking look Questions, relatively as should be prior programs, for in quarter, Congratulation on the this and tough quarter. quarter commercial we Rhofade little third quarters, we of items end on we there into looking the except We know And seasonality? has been at we or considering be

Paula Stafford

to question, to and question. John Rhofade to Jeff. ask SBXXX going the I'm you, Donofrio Thank take NDA I'm here going the take

the just So maybe I'll start NDA. with

feel that everything of FDA we Just -- and the present prepared and to with in of progress. interactions the how other activities, in in of is, progress. of and information, different items, we have but share NDA, like customary for terms there terms are any say, ongoing different being, a obviously, in as really modules there are the I are There all number

of have that going So be year. to we're we the before submit that feel needs order to in confident to all end the

our with testing. slides as working, are with vendors on of third-party analytical We the one noted

with them working that we to we're we everything when need get ensure it. So

like are gating there so any feel submission. don't our are items And we other that

John Donofrio

And on Jeff, definitely vacations, and frame, X Hope this QX for Yes, back-to-school. doing [indiscernible] July, August is John. to in we well. vacations, see time will typically, due July seasonality summer

in kind we momentum overall MINOLIRA, our see to in it in but but expect was the growth even though still rosacea, last the just trend. of will seasonality. schools then the with market, MINOLIRA in full environment, year, Rhofade the regards I of you'll expect and some you brand, think see post access normal seasonality You and back and some see of around that you to to in off kind in back-to-school we'll continue just acne expect season seasonality leveling And COVID flat acne back-to-school force follow

little season should the seasonality. you impacted But slightly perspective with uplift on summer bit from Rhofade to an of just So that months. school, due acne in see a

Operator

Our next comes from from question Dolliver Brookline Markets. Capital Kemp

Brian Dolliver

managed to care As coverage the several is year, products have And of last we knocking head on formulary XX Are formulary into the multiyear? and are second on that not that half popped in the doors up changes. that contracts the months the have I ask there will physicians. do presumably reason there get be managed are care your market competing

efforts? how So protect do yourselves their you from

John Donofrio

No, Yes. great yes. question. And

Our care contracts multiyear. are

multiyear they're annually market. annual and Some leave contracts. ongoing products though the It's as enter even and process are reviewed an

ongoing helps speak. And the of And we we like to negotiations. enhance seen systemic and treatments the that and been and our topical topicals for into were and trends players, all see to in show this topical XXXX. we've positives to in with only plans, of negotiating reviews very continue think across coverage space. just position actively has we psoriasis new and see to And maintain We've head generated feel I some payers benefit category Rhofade we'll similar continue prices think, the I going as still biologics around the psoriasis. You the as excitement through some not fortunate with entrance MINOLIRA our

and years, add over to right continuing and come negotiate the we're coverage solidify look further we and that as opportunities an now, to up we ever-ongoing challenges. and built it's discussion opportunities forward. more But So

Brian Dolliver

That's helpful.

where Second out-licensed the partner there portfolio. even question obviously beyond I do But Japanese obvious how legacy Europe relates -- you view discussions. Are believe, to you I mean, the an is obviously with target There's Rhofade haven't a opportunities yet, you for out-licensing. Japan? anything who have

how thinking markets? non-U.S. the broadly, are you So about

Paula Stafford

on discussions. Thanks, Japan, primarily. really had Yes. Kemp. we're good We're -- focused We've having Canada, Europe,

cycle a know, and process. As parties a and It's regions multiple it's and discussions you territories. multiple selling with multiple

way. we're encouraged our or a more when but and we'll the deals share If conversations, with are So details agreed. along

Operator

Jonathan And ROTH. from from our comes question Aschoff next

Jonathan Aschoff

of slowing is I the with the because longer least associated just line was no at it wondering, start see developmental to XXX press down pace I the for time Phase release? III,

Paula Stafford

you. Yes. Thank Thanks, Jonathan.

And SBXXX we've current candidate shared, our focused is SBXXX, product priority prioritized our on that's for As back our excited remains we we commercial to SBXXX adequate NDA pipeline potentially initiate are in But acne. and activities our III to previously the as for funding. really pivotal in opportunity We're us. for Phase final get hopefully given a We there. poised a XXXX focus. compelling second

the of anything today on SBXXX a for So acne. new action compared to is mechanism market

are and Nitricil second about to We for technology. a product. SBXXX it's a remain that, excited us. -- funding NDA advance excited the issue we really Other We timing potentially than and potentially submit with our

Jonathan Aschoff

Is being you be so COVID, see or other an that less accurate would viruses SBXXX more retargeted not? in Okay. to because more opportunity of

Paula Stafford

Yes.

We're exactly that topical general Nitricil formulation, in You're products evaluating either all clinic right. the today have for gel technology diseases. SBXXX just a cream. All or been the are respiratory

formulation focused a respiratory So non-topical for diseases. on we've been

at pretty the point. at the broader market behooves to It crowded is So COVID respiratory this us look market.

setting we'll SBXXX candidate. range again, product optionality future broader until a funding partnering of that a in potential that evaluate respiratory So preclinical it for or increasing presents for itself, diseases, as

Jonathan Aschoff

down those XX% X down to especially Or didn't parts anomaly? we SG&A, that is EPI, sequentially? to anybody lines? expense should an that you And since is Okay. main what this. And going expect just lastly, And forward, terminate XQ for of X that is here? why R&D, stay from

John Gay

Jonathan. Thanks,

ratcheted it of continued R&D clinical as normalized expense XXX And the X a R&D, So to that of through a perspective, as trials. and out has it relates relates getting really you level from once to kind down. regulatory progression of items, line the more is the -- take

So if that more there's an continue to stay really, R&D we'll opportunity future. XXX,like we and a change is to the Paul progress range X, down in in could that mentioned, for as just

SG&A. to And had lion's lot administrative now the there's general with a now acquisition, the EPI relates Historically, in is share variables selling. of it expenses. and now As SG&A, Novan

the that from expenses related are the from there expenses. as other you selling the Novan there relates or through going of are if EPI activities take a it So legacy which are period-over-period, Health, to the activity out really, SG&A acquisition, to from onetime business type

So look EPI of are SG&A anomalies, some as Health the certain cost we look generated from in to perspective, if will, from obviously, the to there areas, forward you future, primarily period-over-period but acquisition. a we'll optimization

Jonathan Aschoff

I Okay. for really the wish time thank actually conference a who And your you only would philosophy. that a one spread being out, guys useful you I call. of press put lead people release before

Paula Stafford

was early. John up

John Gay

Jonathan. welcome, You're

Operator

from Oren comes Wainwright. Our next question from Livnat H.C.

Oren Livnat

question If just SG&A. I about could piggyback on John's

I which think I regards think better of think had profitable than remarking quarter, EPI I the addition was, I he street said expenses, and us it with was that's, surprised in you on selling the incremental and significantly to think, $X.X and only about low I the was million modeled. how it

that follow-up. is just have a forward, on and is that So profitable business an operating basis, expectation And the profitable I going business? stand-alone that, staying the

John Gay

for question. Thanks certainly. Yes, the

commercial we said as on to the is part saw that improving go-forward continuation, publicly remarks, looking really Paula margin that of that expenditures to script be in of a quarter. that, touched toward continue mandates business. relates some volume. really the line going to but of to it contribution we're driving in this On prepared relates the also it of a We as item basis, before, As the

from vary of at So day, standpoint. based some are upon pursue it will mandates end be an and the either of managed the continuing that or out optimization to we that the rolling could

a first of quarter a quarter is rate, from again, that quarter-over-quarter of we So full have kind which EPI the Health. a

that I see. think that So in baseline is future. on certainly go-forward a But can basis, the measure we we'll this against a

Oren Livnat

change on to I question and XXX. Wynzora, move more I revenue? about I one think hit before EPI product going on just forward to to is out margins were regards time asked should revenue And there what with a which quarter-over-quarter. about And margin And XX%, does recognition collaboration the think down the we Okay. profit of Was into I'm side. wondering gross think just margins, that

John Gay

to a lot good That's there question, Yes, has a agreement. Yes. Oren. from wasn't of again, was LNC related of -- XX or days a there onetime is revenue. been on with million the activity there revenue MCX ended presentation go-forward That adjustment, yes, license this roughly perspective regards activity, to in months quarter, whole a the only you a slight But really $X.X and basis, change collaboration a X this adjustment the with if for was will. a

income So top recognition. of of going revenue shown to licensing a gross the as showing impact than -- of it product kind has and the we revenue LMC sales how of But Wynzora X in part forward, the and now, revenue. of regardless regardless in is net yes, for relates as NMC line fee to the rather revenue presentation are

Oren Livnat

general margin that Okay. And the profile forward? in now and going business gross on

John Gay

Yes.

that MCX. get we asset margins agreement it MCX gross on distributing to are relates commercializing because of and interesting as effectively, behalf the So

if have kind you the calculate of that with assets you or calculate think would that. at business I look the So of we core back to respect the margin to own,

revenue and relates the looking at of impact that Cloderm, So cash seeing I flow. more in probably future that it think MINOLIRA, primarily to product net is looking indicative Rhofade, at true as

this to So go-forward -- the quarter. for the on baseline forward. expected But are margins this basis, be going bit to to skewed a it gross we expect be this and be a

Oren Livnat

then across provided appreciate detail all spend And you material general, year-over-year in think that. is called on pre-commercial, business. do there you have guys I the And SBXXX, the Okay. I

launching between now ahead think And much from in? of much do a a force potentially building and investment you'll and and another this be pre-commercial product, month about? you engaged how year a potential how should of away then sales be You're activity filing thinking we this you product review launch have

John Gay

Great question, Oren.

currently, us don't any full the commercialization have funds of portfolio. to we we As our of product said, to get

a launch, that for capital But know, as equation. preparing strategies. new be upon you lot different access So and is a multivariable determined our of will to financing product a

the to of force Health. will. access -- and in part we've ability the solved EPI part equation infrastructure if already really capital. be bag, But will we already that of kind a you the have That's of the sales it So with with

what as robust market Consulate we but MAX So continue that and the a try benefit upon There's for to what launch amount the like prepare can we launch would a the the we're access operations capital. there's pursuing to do, and upside market, again, that's ability our lot upon our capital. to do. educate But the really ongoing approve, of to to that again, plan based based of of variable to variability and be availability

Operator

from Cantor Fitzgerald. from next Jennifer comes question Kim Our

Jennifer Kim

here. couple a have I So

to the rosacea is, investments? with the view -- my that selling about you just is U.S. second you EU relative product? this the you outline much going can on is in I do that to expectation for potential first growth Rhofade. quarter how said how the basis then SG&A what And know partners for opportunity forward. about talked Is more And Can that without being adding promotional the Rhofade. active a size continue good of this opportunity in and How question terms The relates you uptake see that of that or engagement you you

John Donofrio

persistent patent opportunity a Jennifer, tremendous the U.S., There's is then expand dysregulation erythema of rest this at perspective in the growth it neurovascular the of components inflammation rosacea, treatment for for Donofrio. the expect at component Paula of the rosacea the But category to when -- and we a in when on every Okay. brand look erythema. -- look I'll John treatment in of take Rhofade you Rhofade, of to opportunity the pass X redness got We're persistent the U.S. we the you cycle. the the world. then got a on us facial you've in and I'll throughout life patience. from leader

goal underlying and for is to treatment and of be our patient dysregulation. and have every So neurovascular to facial treated continue here erythema each persistent

So of but that the as we look just opportunity the we the a we look PFD size, at portion market, of about XX% small and had market inflammatory at have market.

patient We look on at treatment PFP. it Rhofade see of for So and opportunity. actually rosacea still we an multifactorial the being every if getting

So that we'll to and continue do evolve throughout expect as see continue we cycle expect -- grow see that the life to dip that perspective. we that or to from message a not

Paula Stafford

on partnerships. Jennifer And the

Certainly, think is targeting of The market specifically there rosacea John in asking mentioned, the PSE, Europe. about are countries, specific I in being and Europe. uncertainly the there size you're there's in as more the on depends country we is what primarily than PSE others.

different partners that of potential So we're conversations in not those market. with terms ongoing are

project at we believe what there's be the market this time, we to opportunity. but an don't I to do want believe So

John Gay

to a about. with again, as talked other -- this respect the baseline just Paula some that quarter, to And SG&A, execution vary of then of add that it's mandates, $X.X clarity, Jennifer, million basically with sorry, will the

it's, level the to in again, those of some vary can investment make baseline. based mandates. that we upon as that continue investments, future think I But related So to a the

John Donofrio

to Returning the SG&A. Yes.

Operator

next from question from Our Zacks. comes John Vandermosten

John Vandermosten

wanted dermatology products. the just ask post-pandemic demand I perhaps to about for

that You've coming sense And wondering might source. be seen it pretty you I'm if that growth. strong from

Paula Stafford

Definitely.

John Vandermosten

people And summer, outside, outside more house. also are of the perhaps the

Paula Stafford

really and But terms of in in back the Well, were with XXXX. mean opening the a maybe start coming maybe I in a everybody products. about XXXX in were Donofrio, offices seasonality things XXXX post-pandemic, different think John I and dip doctors' again then I'll little add can saw as back Yes. up bit of

things we've seen XXXX So starting want seen us. that post-pandemic the to are seeing a XXXX pretty in think to demand. I from we growth the we've And in you're is in all efforts But of to XXXX quarter XXXX, when you more growth quarter sales. But that with comparative. get add, think for everything mandates I think put do and increase I normal from X certainly to Anything our X, place our drive John? has and

John Donofrio

Paula. too, agree, also Obviously, significant support what small look there just are increase riders. at, dynamics would volume, to a bit we're up I seeing Yes, little but that in we'll more. some seen But opening a increase in an we've John, things is

we amount categories scripts the access you're more to seeing one riders of both what think saw riders that acne coming going and just the year-over-year new we're in across and of volumes, I same attribute each increased rosacea. then in is patients patient if volume in. And and and to So as psoriasis, and well

So access get our can to to we care more better we are continue practitioners. so seeing now, health education and

So by as But Paula COVID on on you the that's writers will. the we're writers of is metrics up, just if also much based that's the as execution the new looking mentioned, and it a based think piece on productivity volume is COVID a dynamic. opening driven as new I as

John Vandermosten

that a consumer-driven? advertising, since DTC effective do you And times Okay. something then on is consider, think will it's and of that here lot be you

Paula Stafford

DTC, obviously look -- you When at

John Donofrio

programs and is can forth. disease we on look erythema from biologics, do at companies, direct-to-consumer states. big facial when patients look a will pharma TVs that big the a for and at big But perspective advertising, there Yes, that and have it we our persistent brands absolute so awareness from commercials you the other and the rosacea we educate won't

our we we'll of practitioners digital health we'll education care primary look the consumers a will at patients. ensure just right the get and on to our smaller that products. message cost-effective our So out and more focus and promotion around value our to way But perspective perspective to make more trying benefits across the to reach is definitely that medications. for And the economic get our look from We'll company, particular sure shareholders. at as we

John Vandermosten

seems a effective be the it It of sounds Yes. campaign like may digital you're spending a that. I your guess for that's like really going. use direction

John Donofrio

Yes.

John Vandermosten

on statement inflationary them terms pressures that? you And Or Any inflationary in question, sense on pressures, And do if of perhaps down? other comments Okay. what inputs the on things. last tapering items. direction off, see product income and you just slowing

John Gay

noticed or haven't one other. really any inflationary the way pressures for John, the we thanks question. Yes,

stuff the general the As way relates But more an market, of to driving we've anything in chain past. in we're or has other. as not environment, the kind supply talked the really about seeing previous economic inflation that's issue of it the the been current one quarters, in

Operator

Markets. next follow-up a from Dolliver Brookline from our question question Capital And Kemp is

Brian Dolliver

How at fair are now were going if formulary launch. launch of plans we head-to-head ago, going to you dynamics effectively to and you changes the with you thinking get thinking was And about the be a be that a competitive launch is working to were can might assumption back that coverage? it to second I time market. the and tell influencing going your regard How year situation be the and how tactics your if us, when think with you given could you strategy you

Paula Stafford

product is at Yes. home. And would and Thanks, Verrica Novan treatment contended think Kemp. always a complementary. treatment in-office that our are has used that that the the and treatment, for product Verrica an we be market they We've room product. the medical both is prescription

we've our X the always there had likely So in market. be that assumptions in the would that

plan that, And both still going and we first, get I for hopefully, or think whether so approvals. they we'll forward first both we're go go

change because and really already just with it doctor's those will bag the our doesn't us, this the sales in conversations offices be having in We're we begin quickly. very and there we'll already. force, For put

first. So with to we they're Thank we you. very Operator, and accelerated of else? or think launch Good ready we're whether have that our commercial regardless a go question. platform first anything

Operator

turn At you, Stafford Ms. Instructions]. in for to this no the showing I'd time back remarks. over any closing to Paula floor like questions, [Operator additional

Paula Stafford

another Okay. for for we was Novan and Operator. our step you forward saw, believe, as X, shareholders. positive Thank you, Quarter

to we've and first-class a propel further supporting commercial got us infrastructure So team forward.

got value products And got so X products promoted got lead units, business team. submission X targeted Novan product has X We've candidates in of summary, We've in NDA product our X still our we've got and X XXXX. commercial priority We've before by creators, end development pipeline. one X the and near-term candidate.

XXXX So and the half remainder second we're excited for going the forward. of of

week. and great attending call, a of for everyone, your rest questions. thanks, to So our for great the thanks Have analysts some

Operator

and joining. call. And you for we'll We conclude do gentlemen, ladies today's that, and thank conference with presentation

disconnect your lines. You may now

NVN Liquidation (NOVNQ) 12 Aug 222022 Q2 Earnings call transcript