NEOS - Earnings call transcript Q1 2019

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Operator

Good morning. And welcome to the Neos Therapeutics' First Quarter 2019 Financial Results Conference Call. Today's call is being recorded. At this time, all participants are in a listen-only mode. There will be a question-and-answer session to follow.

remarks, CFO turning of opening to call and Eisenstadt, Richard Neos introductory I the am over For Therapeutics. Please go ahead.

Richard Eisenstadt

Good first call McLaughlin, quarter at www.neostx.com. This welcome by which is to Jerry results press am our corporate And our call. website on and issued morning, morning, conference we joined release, our results highlights I CEO. available XXXX everyone. financial financial our on today's

like I'd read following to statements. Before we begin, regarding the forward-looking

market pack, business make programs, activities business Harbor the will of be per including and statements commercial regarding research financial Private activities, we that our call, the XR-ODT and expectations new pipeline our prescription made candidates, intended Safe products, may statements commercialization for forward-looking to to net Securities revenue with this Cotempla the and our XR-ODT, future progress provisions results outlook product and our are and volumes concerning timing our development patient including product position. our financial exclusivity through ADHD During and of benefits to and our expansion Adzenys of of XXXX, development technology including strategy, Act considered respect ER related Adzenys capabilities suspension, our of the our of Litigation our pursuant our Reform of brand business share, the product the and for the access oral

subsequent variety not to not the statements strategy results new statements risks such our intended be should be not These representing words period. may products indications anticipate, preliminary identified subject of of as often that operations limited and that of actual or future to or may of risks any could are of early but a of product views with reflect with as development as as upon today performance views expectations, and our commercialization of reflect indicators expect, statements commercialization uncertainties and These for benefits any may our actual realize differ materially we inherent similar date. the our Forward-looking and reflected associated of to, results upcoming, only candidates expectations. and including cause from we that we not

risks turn discussion a recent factors to please the actual important over material to of in most filings. affect and those that call other I For results, could contained now will SEC Jerry. refer our our

Jerry McLaughlin

Thank you, morning everyone. Rich and good

under very we business revenue here As our you operating promising a many some has for off sitting of we improved are that commercial and seeing trends our know, early, significantly. still while ADHD kicked strategy pack net XXXX new today, per

have continued we growth that foundation business. Importantly, a the support believe we will our of strategic established

distribute finally, and have and toward patients the a second expense and initiatives half ensuring to of products productivity with We And more we ultimately implemented our operational management toward including physicians. their and market eye for experience positive continued as per to the an is growth effectively the revenue growth XXXX, move important in and prescription in we this season back prescriber school in base. expect late share fall, net target two, summer One, to see. pack; and our volume, market in in increase what

the me the rolled I provide metrics of have out let some key more quarter. and turn we on the So initiatives will first then for to detail commercial

access skills force the base. and With insurance of we the the location. territory at at by sales class revenue realignment participating reducing data prescriber prescribing enhance process and data, vast the sales analytics to in recently managers Co-Pay analyze, to platform representatives sales territories will level. decision moving current To number their business. we a regional now positive time assistance assess to further introduced expect least mixed and platform medications capabilities with robust more based potential and highest patient delivers ADHD territories. enhance gather force These conditions sales volume, base pharmacies. and and forward positioned is newly Neos this continued and specialty ADHD force prescribers growth XX of targeting execution, including sales also in pharmacy to program best patient react experience support time an managers their Neos for for in to sales is approximately overwhelmingly the a directly designed net medicines believe and for insured is have simplifying and the our geographical synergy first prescriptions of at action patient We force participating gain Co-Pays prescriber overall RXConnect analytics this There's filling this analytics Our a already the are response. variables better we ADHD one quarter, regional oriented our improve and we that to patients commercially sales points. will defined of with majority and providers based ADHD that upon believe healthcare the force respective our and sales real talented In we and drive deployed as real And more making quickly of a force this a continue

program to expand continue XXXX. We the throughout will

pressure medications. branded created period own this all in our for X.X% resets, ADHD our quarter we decline total commercial quarter the same prescriptions the same commercial including increased as Turning This of anticipated performance in to Total compares We for portfolio. compared franchise decline a ADHD now by release branded prescriptions first XX% observe medications XXXX. which specific XXXX, the in of to for X.X% ADHD compared extended quarter. all to deductible prior declined impact the the to downward the payer numbers,

some in changes of to our disruption the to volume in In multiple addition, anticipated commercial quarter strategy first we given the reorganization beginning January. our and prescription XXXX

prescription the growth performance metric trend recent last and this market. demonstrated IQVIA, business as a brands pack continue our consistent forward. second we a the something to four of we improve ADHD execute As weeks continue for believe our versus against is quarter, the which weeks strategy. first reported first the our overall with will for by key positive four is Net for Neos quarter to of new brands expect during revenue We going we commercial in per performance the

an the And compared in pleased compared XR-ODT net per very of representing to of the are an to was in period Adzenys XXXX. the Cotempla We the in $XXX, $XXX, pack same report was XX% same XX% XXXX. for revenue first increase quarter of XR-ODT period representing increase XXXX to

our create long-term our help opportunity there Now stakeholders. turning to value and that recognize to our particle patients proprietary portfolio we further for diversify development an our micro is utilize technology pipeline, to

with As we product conditions a can an mental Parkinson's NTOXXX orally the treatment no a candidate that retardation, exhibit NTXXXX, of to excessive continue to administered such, advance to new cerebral plan or formulation as sialorrhea, easy where dosed entity or salivation patients swallow chronic required. condition palsy, with ALS, disease twice develop as drooling. such daily, neurological and once be chemical We titration complex for

the we in remain actively from are a in which evolved foundation clinical ADHD development, X progress XXXX. with In to we stronger We believe grow business. track healthy and formulation summary, in of in study Phase our have first right into a on half organization the volunteers additional IND-enabling initiate to made studies

growth our overall market additional the a a diversifying return prescribers. that a to in As focused exacerbate net to of revenue associated turn first with the prescription symptoms increase step per Rich a portfolio toward NTOXXX disease financials. burden. you. large in XXXX, share in thank over like I pack, anticipate our call with opportunity development CNS neurological to we number to I and pipeline. our There's disorders progress to review in With that, address volume increased is target broader we would

Richard Eisenstadt

revenue the a revenues of first to Net million Total three Thank ADHD Tussionex Jerry. March ended $XX.X XXXX, for in were product to first XX% XXXX, million same XXXX. compared $XX.X quarter generic in for months period three were million XX, the of our ended to XXXX, $X revenues were in Total same product you, in months revenues $XX.X our for compared ADHD months $X.X million March XXXX period product in million the increase. for XX, franchise the product for million $X.X the three compared the XXXX. in

a months Selling for XXXX three to ended XR-ODT months million for million equivalents call. XXXX XXXX. in now headcount $X.X XXXX, were held as was March per a the the reorganization million force same compared months million For using were share a three million percentage XX.X% XXXX resulting expenses to net fiscal to compared cease to R&D the million we XXXX. of XX, in With with $X.X or was and well sales three months lower same commitments. of same compared the three cash force trial ended leadership G&A million for in in primarily to like $XX reduction million cash March $X.X were March ended in period compared expenses by in sales clinical and driven to XX, Operator? short-term portion loss profit associated March and in the sales force, our for million March increase $X.X three as by XX, expenses April we that, commercial for XXXX in in party as the for $X.X $X.X our months the At expenses the sales months contract XX, Adzenys the XX, from gross the $X.X same period XXXX. to XXXX period for sales Q&A XX, of XXXX, post associated marketing product ended three The internalize $XX.X with share force was March $X.X for three XXXX result compared the Margin XXXX. Net as or decrease in the period increased would investments. the months XXXX. million million announced primarily in marketing This was for and XX, quarter turn $XX of third fourth ended ended driven to Gross to the March XXXX. XX.X% and XX, decision period same $X.XX expenses and per from the XXXX. our March $X.XX

Operator

have. question from comes Chen the We questions The may any first Instructions] of line you Fitzgerald. from Cantor will [Operator now Louise take

open. Your lines

Carvey Leung

my taking morning. for good questions. Louise. Carvey is for in Thanks Hi, This

you licenses quarter pushback want all the only efficient will product much be market? products benefit will on last that realm and up the operate force these per will you proprietary When so Will the any far of to Will release First, And Curious being this talked bring have assets of net you you market pipeline, revenue can when assets in will you. plans about XX% to And sales ask I current occur? to potentially you same integration the building are of the business technology? how XXXX? or model? that in utilize think necessary? within of Thank acquisitions and interest this in more XX%. access how the be you. what can potential to this Secondly, out territory the from as full that access last, much same

Jerry McLaughlin

Hi, Carv, you thank questions. your for

asset question, evaluating bring And I or us leverage address drive currently either stage technology infrastructure. those. look a with to our at really we leverages NTOXXX, opportunities it's your think value for our the a on we micro potential profitability accelerate of market where commercial said assets. focus into our will that like primary pipeline to or we late that think development opportunistic, particle our that business. can whether is are can regard which And on constantly And our first differentiated if And business. path to market by with focusing ADHD I range licensing our and can clinically more things we

path continue is things So our go evaluate again, we focus our forward. to productivity. primary we'll Once to as accelerating

and increase we last Moving question in increase or with out number initiatives per the but in per our I by net having target market prescriber for we overall territory, around in Like in recent in mentioned, the opportunity half, pack we performance. our quarter, volume as days increasing early as in we're look as we're the of encouraged are positive sold two, prescription forward our revenue to prescription second our the returning month been particularly forward pack base. well and revenue per to the to move several within share days, net as indicators, a the we increasing rolled early said, your just increasing

Carvey Leung

you. Thank

Operator

Your next from the Butler JMP question of comes Jason Securities. from line

is line open. Your

Jason Butler

Hi, thanks for taking my questions.

XXXX. net want to - I be goals clarify. First What can about pack achieve? talk for for would your just you you level what revenue you can Have per you think

Jerry McLaughlin

progress. good we're making Thanks good hey, the morning, Jerry. Yeah, question. really Jason, Yeah. this is for

the net as per of pack your highest the third do high be revenue revenue fact, first about has the the it versus the the when at first per given net prepared we said our quarter challenging you deductibles. that for pack not can reset you came fourth XQ'XX, what per this versus in on excited blended In franchise about look for year on And pack ' as year, look we the look sequentially enter quarter remarks the if forward, we will revenue disappointed we be the $XXX is we net know, quarter. of is typically the talked really a change particularly us if but our for quarter, XX XXXs quarter. later at That basis,

XXXs. feel So we that's the where into getting with comfortable

Jason Butler

and the you sales organization, reps just moving the talk you a of under you you have couple that the belt back today are current thinking new territories Okay season? number how about forward into of to months now and can with school look as and about your guys

Jerry McLaughlin

approximately our necessary immediate continue business additional have And our we'll assess analytics. volume we as beyond prescription Jason, to our increase analytical the adjustments force discussed this target we've in the That prescriber business, and to our is said, any the past, as and growth as capabilities getting expand mentioned is territories. we we this use in plans as assess enhance market make as XX Yeah, don't and and on we to our continue and to share support base. sales

Jason Butler

what there's can't how provided to Can or rep will go details manager do a force my they explain around that last you data but on have. sure respond question. some differently some new analytics the about into, that's and can Okay, regional talk the they that just color and Obviously, a you just sales based platform? enables data I'm

Jerry McLaughlin

what at allows our publish time activity we impact because make results a opportunities. lot messaging into guide our and can they They and of monitor the targeting. real of And daily, getting without do at of proprietary, targeting then is a level a they a to real basis They picture Jason, weekly Jason Yeah, it's time adjustments representatives. us pharmacy but seize in for to do at big reports. hold variety an level monthly and to

Jason Butler

questions. my taking for Thanks great. Okay,

Operator

and Your next of Company. the Cacciatore question line Ken comes with Cowen from

Your lines open.

Ken Cacciatore

Hey, on the guys, progress. congratulations all

you and Just are you wanted the believe to more balance in RXConnect now pharmacy who about where sense to to a about gotten you more now reach through assist the the of with ask you just more year, are many RXConnect and a to you. that of want Are system do want going to now have do at start maybe just point And add really percent seeking will and place? mention kind that of of in we you and you how that where have this in reaching terms major want physicians new this did that to target, you participation or to have region. to that you you a talk going the this every pharmacies? Thank I still point targeting clinicians of back go them Can resiliency program pharmacies? prescriptions

Jerry McLaughlin

for much question. the Ken so Yeah I'll take this. and thanks

and first this do in we enhances an the the it's to believe revisit, do And prescriptions positive While be that quarter. business are less for assistance with increase that we be just to And quarter And expansion medicines. traditional network. throughout and continue driver the Neos important believe it's early a of This Co-Pay did awareness, that of approximately pharmacy also class pharmacies the will that being in network best forward. a our access going pleased experience expect and the we that in to program through of with percentage launch We're than the XXXX XX% first through we increased focus. progress. all program, operates filled to

patients For a commercially is no Neos than patient their for Co-Pay prescription. ADHD that's competitive We network believe and many pays zero from insured commercial a the dollars insured advantage. obtaining $XX medicine patients pharmacy, per more

believe the offer base. subscriber and offer opportunity targeting terms network to will our have of us existing increase into that and In to base. physician that our terms bring adding build patient opportunity the more new the still an that the prescriber add we to going and prescriber really we value continue in physicians physicians barriers continue We the believe of fulfillment to It's forward, grow at and gives to we takes physicians Ken, base physicians. pharmacy down targeting the to of

Ken Cacciatore

you. Thank

Operator

no may time. And in today's questions you Ladies and you in showing conclude program This this Everyone your further great for and at have the disconnect. does thank now a participating I'm queue conference. gentlemen, day.

Neos Therapeutics (NEOS) 9 May 192019 Q1 Earnings call transcript