OPTN - Earnings call transcript Q1 2020

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the OptiNose Q1 2020 Earnings Call. At this time all participant lines are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

to Neely. conference like speaker to now Jonathan today, would hand over the your I sir. you, Thank Please go ahead.

Jonathan Neely

performance for Good us review XXXX today and as our afternoon, thank we OptiNose's you first year ahead. the for joining and plans quarter

optinose.com, this Miller; on The by Ramy the Operating be slides in Chief Officer, that Peter our our our and on and Vic Chief will I'm joined Clavelli; CEO, call CFO, section. President viewed today Commercial our website, can Officer, be Mahmoud; Keith Investors presented Goldan.

Before I discussions that statements. hereby start, statements. will would we are you like forward-looking statements that during include to our are All call facts as remind not historical this conference identified forward-looking

from risks uncertainties statements. actual subject such could are to statements Forward-looking and indicated those by differ that materially cause results to

these well statements release and Risk the under of optinose.com. that under information is available Statements on our Form the and as website, and factors website earnings Factors at is note recent on and Additional of forward-looking filed XX-Q at today sec.gov, SEC discussed as Forward-Looking with issued and OptiNose's cautionary the most elsewhere Form section XX-K section their the that we regarding

revise place and statements we on date undertake no speak statement, undue of not statements. to The call statements. forward-looking any or or forward-looking these this of You cautioned as of are indicated date during such in to call conference original this reliance only the any update earlier obligation

we move We make will to a and now question-and-answer session. remarks will prepared then

Miller. the over Peter now Peter? turn will I call that, With to

Peter Miller

and in our first appreciate We afternoon, these everyone for challenging much, quarter is us Jonathan, times. hope very Thanks good joining everybody. and update. well I safe you

the they've job I'm started in I'd by of presented have the pandemic. begin operating our proud challenges by coronavirus what they with thanking incredible treat new done commercial in of the of an to OptiNose occasion. they sinusitis. in at has like researchers fashion, patients a such get reshaped chronic team clinical accomplished environment to a short treatment for development all physician to support completely us for rising time, in risen our the of true finding mission and this update, the the we one the to Before period my as XHANCE with colleagues by business ways customers, partners, our In completely engaged

of the ahead patients while the road of healthcare COVID-XX, necessary who OptiNose necessary heroes our to care saw unprecedented response and professionals view finding with to serve The and the professionals. ways Our their epicenter practices of faced nod for we starts their the for stand themselves disruption at to the their to global the healthcare new staff. protecting task

an today's discuss update organization important will emerging we've that and marketplace. on XHANCE in fill business, mobilized role our response environment provide we'll the discuss Today, to context in how the the the of

slide go into in on presentation. today's providing We'll five by takeaways but from X. I'd a like Starting start moment, to key more detail

we'd and drive weeks last environment, our and our our this new have entry taken into performed on dive the adapting First, of update, since into environment. focused details initial in earnings the we business primarily has to performance actions during the of we business COVID-XX how

so and reduce to more commercial our preserve while the and and stronger prepared in we actions we're full Second, model the OptiNose. of potential taking to expenses that protecting uncertainties investment realize operating programs our cash, economic emerge given clinical

year. for mentioned., remainder guidance of near-term expectation reflect uncertainty Third, prescription reductions revenues expenses improvement we average XHANCE's the the revenue operating are I updating per our in for just substantial the to and net in for

room environment continue that have the response strengthening which for to provides long-term And emerging current and strategy are remains in commercial growth. in first XHANCE we Fourth, quarter have we driving prescriptions we substantial to actions and the sustained effective believe the are performance, that in we'll growth ability continuing fifth, our win taken review marketplace. evidence believe XHANCE an there to

Since X. in environment which drive visits the pre our reductions to update, we last mobilized relative operate. many to volume in physician began performance our to earnings Turning have we March, patient In slide in experience customers significant COVID-XX of performing now one many to the COVID-XX of patient the ENT norms. patients. flow. were to key of local some drivers the as restricted In from moved offer also by case surgeons, elective Many means surgery, seeing of remote the of a authorities

therapy new even challenges, create for patients has chronic and pandemic particularly XHANCE. suffer certain new not COVID-XX the who significant While seeing reduced and may the of for from opportunities for nasal this presents patients, dynamics clearly disease initiating dynamic number

the XHANCE our treatment experiences run, help support in positive disrupt resolves. habits. adapting accordingly Although severe and or surgical short-term capacity We're most surgical goals generally such the of continued our other restrictions increases so patients. as strong of this the on crisis fixed with on surgeries to care with increase should volume care treatment medications broadening elective emerge midterm, In urgent on of use medical management the cases, reliance longer complementary, In backlogs continue of ingrained that during increased lockdowns as are may we focus medications the commercial for and plans with XHANCE. an adoption treatment patient

work The is functions all we job live of in for employees if among model implemented mid-March. from in the work and health home and allowed, starting and communities their our we safety a foremost concerns,

promotional have educational Importantly, programs. face. includes than can face samples our detail physicians, tools rather to past, types the and host they managers enable virtually our albeit virtual They to many provide in that model in engage of the territory of activities

patients. new deferred of of stay scale they that managers practitioners gained increasing productive have in protected engagement we've solutions, to also comfort person the their up as with the but re-engage suite territory and will Our digital as plans meet with enable them prepared to backlog offices

the disease may favor of mentioned, believe we adoption factors influences and period. Increased in offices environment, certain evolving procedures, constrained to the the over reluctance moment concern transmission and pharmacies, potential this factors despite discussed nasal for patients in-person other all ago. of ones trial and like just dynamics care, with I to I visits crisis to environmental clear also XHANCE elective surgery a the risk that of virtual contribute identified may negative As we've make

We emerging identify physicians in opportunities with new these improve are ways. respond working to care by partnering and to

an on is option One of patients XHANCE faced visits. March early XX, response, procedures office potential surgical reduced help postponement assist with physicians to and to program launched offer with and the elective

our delivered pocket cost. Based of new zero a been our new patients. the we at of is program believe program quite worthwhile to will and retail a full accelerate ultimately on offers Longer-term, to customers recent XHANCE business, initiations. for for expect we this out positive. assist Feedback home three program Assist months has the from in on patient this our investment insured our the strength commercially physicians patients, business,

Our care regions clinical new chronic for sites well. and different to trials COVID-XX environment guidance resuming In in the practices medical a during enrollment. investigating temporarily adopting varying have have response, to regional treatment sinusitis as paused as to potential Sites adapt are all adhering safe pandemic. patient XHANCE for the had global trial

restart during We to May. gradually begin expect enrollment to

procedures already were facilitate that place. and enrolled, treatment subjects in data of capture ongoing have put to For been

line related half the to uncertainty, which our previous in adds expected environment top are COVID-XX guidance are the XXXX. the maintaining we results of some of timing While expected second

to have Finally, previous $XX expenses by guidance. approximately global the to full we by the year the created given operating reduce compared million uncertainties economic pandemic, taken our actions XXXX

execute Importantly, to scale we have we manage our planned XHANCE the up of growth to to visits. allow environment for reaccelerate doctors' offices believe and backlog fully growth stabilizes patient that will protect reductions and our continue to as us back the strategy ability

to important nasal his growth last As believe learned million from to business suffering we sensitive that has ability polyps. have promotional and care highly the our in and call, the Keith XHANCE for will to protect more the our of we efforts, discussed been remarks. details evolve XX patients on we've standard drive it's

to slide X. Turning

performance the April to compared the commercial March week the The XX period XHANCE period. prescriptions period week six April notable call ended to out X% ended I'd the prior six crisis move I quarter XX ended COVID-XX is the XHANCE Before to by XX. increased during week first for six reasons. for like period of review, initial two

our to target physician it six when week virtual First, to second, because territory period patient transition for shifts nationwide managers and that volumes the with coincides COVID related the is our substantially reduced audience. model, our first it environmental led

XX%. physicians they patient experienced Anecdotally, decreases that XX% this or in range of groups practice time during us to these some relayed the have visit to of

decreasing and time proven a a Given we volumes, prescription businesses as are has are strength. XHANCE reporting by XHANCE believe condition At environment, growth of treatment the under-appreciated decreased rates that resilience when many relative we for chronic a encouraged volumes.

slide Turning X. to

Turning to our first quarter results.

by in the the Late weeks net a and volume quarter, insurance impact point call, in prescriptions average first discussed of in see as the for refill and what environment. began our we growth continue trajectory from resets in representation of in weeks In was and factors pre revenue last We COVID-XX a total the re-authorizations to prescription with strong first very encouraged such starting of high to influence last refills to March, common March. the disease pandemic, early the which in we February in though year. prescription for per be the products chronic of couple a late co-pay largely and XHANCE we ongoing believe

a programs performance As in In strength to strong for In a point of future business XX,XXX sign prescriptions to TRx XX,XXX increase a the call, overall are first prescriptions quarter to supported Refills, will XXXX, growth pharmacy did prescriptions were reminder now strong the there dive first confidence of describe new into of to first business. deeper were a compared the XXXX. we believe help preferred compared growth. our increase of quarter continuing a generate to addition our health is XHANCE, XX% XHANCE, contributes XXXX. quarter prescription first our quarter new last this network good that in and XXX% very of managed performance, in at details in by business. true the XXXX, We partners, on new the refill by the long-term we launch bit the there

that here, I note previously to of number COVID-XX growth pulling on pressure as until where the of represents This quarter point as quarter It's XXX% noted. total some growth, of together, over restrictions XHANCE to shown and up XXXX prescriptions approximately first it's prescriptions XXXX. the the Slide believe X; first the XX,XXX. the was put rates but first started within to the important prescription Turning growth improved progressed not the in quarter refill quarter new

claim disease chronic year particularly the we On before new our call, change who point the downward refills the a to on of and where concept started new began the a first to In discussed time insurance in growth growth. was that up continued medications, early pressure to earnings line can in related refilling expectations, This for depth medications, the pressure the improve refill out last put drive with until approved in mid-February insurance. in on for COVID-XX to patients need change there our recover year.

confidence we run, prescriptions first This prospects to Notably, and a of based first proportion value to highlight first the in compared refills major blended are coming of which in it's much effect, of was driver the year I this of due our rebounded XXXX forecasted. recurring the as because of underlying weeks XHANCE expect XXXX tremendous to emphasizes over new believe phenomenon, start future our they prescriptions, growth with this trend. during and for important pronounced of now XX% refills refills increases dynamic be XHANCE in a XXXX. long the to prescription much a a on XXXX, last less from after in the approximately quarter engine quarter smaller

all in and target us of Turning of to in to illustrate expressed continued current XXXX target is This for audience of in as increased a prescriptions potential slide first steroid large numbers quarter of increase, the also therefore tremendous for our in X.X% XXXX. magnitude We great proportion share upside first that the a remains is written XHANCE's for a physicians. physician XX. but by believe growth. physicians from is audience quarter X.X% the of intranasal there market believe the that XHANCE there

more in Overall, XXXX execution continued against continue we've physicians model from more our share substantial see to commercial current we writers. continued are confident convert our Notably, to experimenters to increase that produce can continue able share year. and early promotion share traditional growth, to returning of growth believe in the the environment be especially in as recent COVID-XX to and we balance across weeks will to the

XX. Slide to Turning

and filling prescriptions quarter. number of What certain of last we monitor that see year. of of breadth you have is patients prescribing the is number a can physicians the who over increased that depth measure performance Another per both has

in XXXX, compared XHANCE, of to a one quarter breath, Regarding an XXXX. had fill X,XXX more first physicians prescription of the than least quarter XX% first at patient increase

own quarter is quarter to the and supporting Regarding is indicative number their are seeing the as We the is barrier. potential physicians from and depth, believe they we of trend results physicians the more as a important in of continued treatment greater the an filling first size this with that of faster, than access more future paradigm growing by Company. a affordability group this XXXX. that of with prescriptions their increasing even product to filling part in increasing due generally a patients has of mechanism to and growth one strategic subset of the not we XXXX becoming and hold-on for quarter Growing priority are who their key this first physicians XX sustained group business, product see of is of number because the than full-scale our number with adopted experience than top This patients XHANCE XX a patients believe grown adopters. XXX% physicians

perspectives Goldan, remarks, corporate XXXX I'll regarding regarding some In turn comments over and guidance. provide a first CFO, our to our I few will quarter call first the moments, results our closing but Keith for

Keith Goldan

Thank and today. you you, everybody Peter, to joining for thank

XHANCE we of As revenue XXXX. in net $X.X quarter of recognized reported, the million OptiNose first

during per calculated by on by which number estimated net of noted As dispensed the XHANCE of prior is prescription, we metrics calls, revenue for track average quarter. the one dividing prescriptions that is net revenue the XHANCE's that quarter

to prescription. that evaluate to generated metric revenue is this net We continue believe a useful per

through That factors individual unit However, we remind XHANCE, is in not is variability result a is reflect metric other including ordering programs, acquiring that of customers that utilization a to patterns proportion you this an wholesale of rates to patients directly, and do change XHANCE inventory an subject of the that our price for pharmacies sell necessarily levels insurance patient and variability. the and factors. for affordability that of we paid benefit

of we pharmacy from per range third available and our parties on the receive preferred quarter average was directly within guided partners, to for XXXX XHANCE on which from data also revenue data prescription was Based prescription network $XXX. our $XXX, net first of $XXX

corporate effects Slide are XX; on our to reflect and coronavirus the to expense. to Moving this business taking we we operating are the reduce of revising actions afternoon, pandemic guidance our

the net XHANCE health revenue than to once promotions. of COVID-XX XXXX guidance revenue are permits mitigate in to there XXXX a compared First, more model net a XHANCE is expected revenue million. for efforts to net XHANCE in-person more and that we to way Previously, broad regarding double full return the year we $XX.X guidance, withdrawing evaluate providing public when clarity relax spread we'll will of

assistance XHANCE's Second, of program gross net of improve to structural access, that drives and in base the is terms for XXXX Overall net have remainder will generally where deductions market XXXX. stood which per influence our remain consistent, we prescription factors change they the revenue unchanged. copay experienced major to not confident our because relative rebates, that the are

from common our last that in set to the is industry. in subsequent chronic treatments expected first revenue we have when driven quarter by two XHANCE's expectations The we average believe discussed that call for in primarily per quarters XXXX increase and net effects our are prescription of we

copay resets expense patient which the progresses. of by our patients, early support under First, in the provided the as deductible highest be in January, out decrease deductible insurance [indiscernible] that of then of occur year we programs, pocket us effects assistance because and year expect resets of to part on

XHANCE. claim different with insurer provided. first whose change of experience before XHANCE's The refill processed coverage early on prescriptions insurance is than prescription the proportion coverage relatively be second in to a refilling XHANCE new by profitable have year, a for some to experienced the XHANCE Patients patients effect other revenue the these and quarter. We believe their new which needs higher delays in revenue can whose net be prescription recapture We refill XXXX a patients if of to contributing can more that year. in a prescriptions created because insurance the factor this feel insurance pressure downward with new prescriptions this prescriptions both covers example, change of per refill are increase net

prescriptions observed, should as as year per believe revenue increasing and in of quarter progresses, a number net as fact the average We the support result, dynamic refill in that predicted, this prescription. and progressed, improvement

As by mentioned expenses million pandemic, expenses guidance. payroll in new we our earlier, project the and expect pauses of These include of costs spending, reducing expenses compared to are result global an $XX reductions a in and a clinical operating reduction the patient presented uncertainties enrollment. given the re-prioritization expense overall economic as previous XXXX reduction approximately in lower XXXX of trial

As a mindful to we a be we of growth towards our to deploying plans. it on judicious some we optimally against for stage pandemic there, require extraordinary circumstances To company, though, future. with always building get Consequently, changes need focused are growth and capital objectives. our promising that oriented are the

relative conditions, treatment development growth for a normalization capabilities as we XHANCE business necessary we look our both as sinusitis. pursue Importantly, the chronic and to we reaccelerate maintained that XHANCE's believe to of forward have for objectives

expected which of stock For expected operating be excluding the be million range stock-based operating expenses, to range compensation. the in expenses the is expect total of to XXXX, to be non-cash in million. $XXX approximately $XXX $XXX full the $XX million to compensation, are million we to based Total year million $XXX of

our maintaining to uncertainty, regarding guidance a expected chronic are trials related for while of as some sinusitis, clinical results. our COVID-XX evaluating the Finally, add treatment XHANCE potential we restrictions timing

turn the back to call now Peter closing give brief Peter? I'll over remarks. to

Peter Miller

including the where fully have the strong importantly, need closing, opportunities that begin real of Keith. environment mindful full on is the for areas are regions of we capitalize continued promotional evolve businesses, has with even ours, This COVID-XX reopen. We business a but more capable growth. of constrained confident the Thanks, to the most yet created In remain environment, known. we challenges growth develop impact which results produce how as begins and to in the focus is but to plans understanding of likely maximizing means currently to to market not country

In us that care. to closely working facilitate actions telling for ENT watching react. reducing carefully surgery, elective restrictions an are on to take how to that continue will to as business potentially many working but we We We're beginning physicians to in give geographies, physicians our market play regions to with the assisting confidence and to evolves. are them the of patients of the know return they offices which country are already produce their will efforts, our patients role plans aggressively are acceleration on many

by excited penetration the As especially chronic we indications. our given we modest could remain further the created and share sinusitis that for significant opportunities look still yet the potential out, XHANCE, addition of be by growing

Thank to I'd you. open call And now the for up like Q&A.

Operator

Randall the first Stanicky. comes of Our from question Instructions] line [Operator

Jonathan Neely

the question, right next you're you the ask Randall, Operator, to move trying please? to if now. to mute on you could be question just may

Peter Miller

come back [indiscernible]. can He

Operator

comes next Our of Gary line from the Nachman. question

Unidentified Analyst

on afternoon. good Gary. It's Hi, for Raffaello [ph]

Peter Miller

afternoon. Good

Unidentified Analyst

Just broader commercial much patients How the some some prescription pay trends. the per government to on from revenue the are over macroeconomic course migrate of of you may year? given Hi. net pressure anticipating

Peter Miller

There I migration. a an there the said, that's of going significant enormous some Keith is We we've doubt on be going to revenue net impact the balance some it's as to year, per to business, we largely confident, have be their at who going nice are as we we're think but the and average no be think business. But of of rising increase this are commercial to displaced see, there jobs, look don't not be we to people as prescription. that as of do talked, Obviously, impact we continue going because that's point. and is going across anything to expected is

Unidentified Analyst

new any ENTs Got then, you potentially virtually? extent patients on the and which XHANCE are visibility on comfortable it. And leveraging how do they to have telemedicine are starting

Peter Miller

six know overall I sure visits in weeks for said terms we pretty pretty been sort also patient -- in of in-person and the the over patient visits. mean, thing practices much is the physician past that we of call Well, impacted -- have the

reductions majority care. huge reports got think tried XX% ENTs to to allergists, the of we of XX%. of virtual I enable anecdotal practices, many both The and

of However, endoscopic particularly exam of evaluation. ENTs, in a what with is lot case a of do an the they patients physical

really lot they weeks So in they it. -- we is pandemic. call what in the did this saw towards thing visits. we mentioned and see business moved all about the told our on six The virtual that post the patients us good They the -- increasing less is share in felt a I

in So, way, delayed that your growth was about force utilized, with we I still to think in have going be patients that. in to set are real more remarks, good and a comfort that capitalize a suffering. care. using sign going product. delayed comfort the of could mentioned And pandemic, mean good patients is think share potentially, and the the up XHANCE are And on are saw that positive things my really to surgeries be as there's using going potentially to think in a very I It doesn't we given we XHANCE, XHANCE the are other treatments, in medical position their question

Unidentified Analyst

so you Thank much. Great.

Operator

of from comes Cacciatore. the question next Ken Our line

Ken Cacciatore

than an I situation. such is can XX, bit to what from I we and the XXth, wondering, you of inflection talk can was fluid question. seeing Seeing us all a you're just up-to-the-minute most the close that as little couple as were of data just know about seeing way I have a recent is take on this the can? of April you? a the Is on a direction? trend And the little like detail, program. Can interesting still then sounds of looks good right of you more in kind that? even just up, patients get assist, give them XHANCE getting kind a short, intimate it wrapped bit of a like someone way capturing really more recent It for you having moving you are guys. this you that even execute had kind But in them? just Hey, once more we and us up with the all you

could on I lastly, there're base us exited you stands where a we then Thank so we that'd where be unemployment, of and the where covered as real-time? lives, And were, just are, stand year us much. high sense great. all last where some with can we but coverage you parts you we give of know the And levels moving

Peter Miller

at, Yes. will we are mean, trends is that moment, across indicators the if look of we six that to saw till up the pretty pretty Thanks, Ken. up you I have weeks. the XXth leading some tell consistent date. and obviously you But will, I you what

a this doing significant business this that better We And the we're would this and I I a managers we refill since And, honestly, And we in XXX I that the to patient resiliency volume. mentioned continue bit prescription new week. remains our with we see in week, the also territory will that to Ken, in, in out a solid. week in decline been is what is than we business little resilient. that's has actually the have the call, about guess and to half a reported, expected weeks is feel to of frankly as business, seeing of a a had XX that field say, do given but nice six obviously continue then, it's business the lot

offices yet is are practices. Now, in We know their busy how and seen. signs. into getting that's physicians that are be encouraging I think interested they productive to But are, back how there

had have may Ken just assist, -- we assist, beauty of this of support the terms not here patient the place. been it already and clear completely In leveraged program -- in

I month not our The we creating made differential it sense you free. of for is prescription thought always of historically offer pandemic, They the they free network. the we part only three write way physicians. the know, offer this instead because preferred the of assistance to our same as first pharmacy patient program. wrote think So But added, months new something it we -- is, to

nice about physicians and it the of what from of very on physicians had we positive feedback in thing as much terms And the a said, So, was require it I didn't do. part to change heard dramatic they to that's -- our anecdotal as this the contributing I share grow know. said it's to our But we it. ability really during certainly sustain sort of business during we've pandemic, heard frame, earlier, and time about don't good how comments

tremendous a can as our Clavelli team jump been the our by Regarding has Officer. Chief and Vic, addition way, Vic to coverage Commercial -- in.

of on sure We to for came we're to and in even of introduced know over will right consistent. don't I said, closer whether But reasonable It's eventually balance of term. the discussions the reasonably in the and payers, I getting call, getting coverage, near line year, I we're line XX% but do see XX% about Vic to Pfizer. to as happen XX% XX%. and over XX%, XX%. to to sight, Ken, it of with that think sight last terms from we the in see

to anything add? Vic,

Vic Clavelli

it Peter, this at perspectives. from the looked approached only we is, that three we I'd pandemic, really to thing as add

spoke them little field safe and field, patients bit. return of can like when it expand would to our looked so we wanted the for. keep is, you assist the employees we a each pleased that you of could; number And tools the the effective to opportunity, if they consider us more know secondly, that's patient part do the to And how did they with see that the would when we we to return could they we're physician at third First, enable program make with way that to a them worked,

Ken Cacciatore

of bit the money on guys, with know getting I coverage some turn at a a closer we sense. And of XX%? kind the that? But you're here. And lot Any about, thoughts talking of DTC when around on could makes thinking it you're looking updated over save of little any that point, to kind

Peter Miller

test in on still Ken. mode We're DTC,

hard last based I been know that think have patients. sure place allergists, in the that on ENT the make that because expansion. pretty do and before is we confidently to got thing it's pilot but said piece -- activate we awareness can't is continue as the running the to -- we we in broad we I steer on we've call, were patients work The broad have that's thing product, we we the to of to physician can the we in trying

Ken Cacciatore

it. Thank you. Got

Operator

line comes next Amsellem. from of Our David question the

David Amsellem

Thanks.

So, I a had just couple.

clarification the net just revenues First, a per Rx. on

I think providing free know how impact launch XHANCE And that you the what to you're directionality per program, spend, I'm that how more two impacts then what's landscape, for level would longer-term? to post metric? net one. Thanks. pandemic is this your of much might your whole overall endure and providing just of revenue with I Rx. number you're the model ostensibly regarding realize that is, can as And that how about promotional assist the So number products. that going you mean wondering That's talk sense but virtual of

Peter Miller

about Keith, I'll Vic revenue average on talk and then we'll have model. impact talk virtual ask per you the about to

Keith Goldan

Dave. for thanks Yes, questions, Great. your

right. So you are

have other it would revenue zero three the a copay, one. We [ph], anticipate which the saw whereas average net you to quarter program, a the the probably last prescription week giving negative average impact first on there So the very as prescription. didn't in second the know revenue magnitude end at impact the X-XX-XX in will that quarter, per of give prescriptions effect. of net versus assist of first And -- X-XX-XX some much. very, per too but of probably We it larger be

prescription. anticipate a per a big on net don't we However, average perspective have full it year impact from really revenue to

in program because expect see again As consistent I year had consistent the comment largely a copay base utilized made the Peter the we last And consistent place with remarks, in last last very with just this commented, year, year. assistance which saw my of is is fact is we that what our still to increase coverage commercial year. we what largely as with

Peter Miller

the that David, add thing to Yes. would too. I

Assist end going run it's new I is probably May, The on through prescriptions. clear of this. program only on the and have would should only to -- been

in if the retail year, new, the put full So it you the a business. and few context only months of it's it's

we As refill is over said earlier, of business. our XX% now

consequential. materially not So,

Keith Goldan

were those surgery got intended before, XHANCE hadn't their surgery perhaps Really been for waiting that on because that patients for delayed.

Peter Miller

handle let the I'll question Vic, on virtual. you promotional

Vic Clavelli

Yes.

virtual communicate of with about to engage effective we the representative of question assist, way tools for engage see lot we perhaps a the that it, be frankly physicians. in a the us virtual the suite those for valuable engage forward. the help to up with and our is We engagement virtually learned help physicians but So number program. place times model believe connection even about the a very and moving encourage physician we around learn of engage and face how actually with catalyst to could stronger. face We've pleased to really the so there'll to with us can the were [indiscernible] being to continued it number our ended message can they be assist those more Clearly, physicians with who

Peter Miller

the it's effective. actually some sharing live get will, were engagement thing detail this [indiscernible] with because you really true a a can me and Vic team If virtual really virtually, we pretty with data morning. interesting The if

obviously, engagement Engage over a as to Vic become but ongoing as sales effective not a think effective, team not said, physicians how we effective; AVEVA have it's phone face, part with we emails virtual enabled proven basis. face So, pretty calls for something, on actually something quite sure it's have next I to platform our but to months, to be as are we're and the continue which with might it to work use and as an few going of true

David Amsellem

Thanks. And that's helpful.

Operator

Steinberg. David from comes question next Our Instructions] [Operator

David Steinberg

questions. Thanks. couple of A

know then for at level be Company? was Did the that last that I whether sales payroll. First that'll -- in know have just -- And confirmed off, Thanks. reps revenue or the year, least you year. of you think $XXX suspended are revenues year, you you missed or of other Did sure? expenses, the at notable -- for that for you that the people the items I it. you ASPs said any think thing you've last reduced have lay you may levels different or of course XXXX? the the mean you any not will Secondly, and you your guidance reduced one double out don't I Does

Keith Goldan

David, a respect first, uncertainty questions. we start could last increased your of unclear revenue it average affect with made upfront, affect for changing again, revenue to benefit our Keith. little the Hey utilization; script. on we're the dynamic but is payer largely forward. to if average to going provide overall commented bit don't some year, unemployment today going or this question the mix, know. the base. This healthcare And I'll with full going ASP. It's point Peter patient comments how net TRx It related per the economic to for could per at the just affect is not thanks net we

to trying at We in around to confident guidance but projecting not provide the that. is, answer it, do don't not we're So, feel point. a going honest this dance

Peter Miller

-- remarks, dramatically was there say, of structurally Keith year-over-year his that said I'll thing David, terms the rebates, has contracts, changed Keith, nothing in coverage. payer in

are Keith equivalent say and be similar. referencing would to you're but that that the structural see pretty guiding you to not going So going the continued year, going expect materialize last dynamics elements -- was -- going say it's I'm to continued to that -- if we're don't to increase I'm

Keith Goldan

question your reductions, operating backwards, working specifically about expense to the and second with was respect payroll. So

was balancing commented And sales with maintenance need this to we balance here ability period. I out XHANCE back objective the remarks, drive the coming that. the sheet growth my of force preservation accomplish of As to strength of in end the the of the uncertain

the of get as the it So, were stands. $XX to structure still million commercial if we preserving savings while able

times visibility point, in on reasons first this reissuing have If at to guidance question just going right the commented these revenue visibility for your I then, guidance provide to guidance. earlier, And the don't improves, we the better economic evaluate uncertain now. are year, but for to going

Peter Miller

that's all -- of patients is do just physicians have from reasons. two want flow. an candidly practices, that's think that. I treat sick they down to to They the economic for that to who the to we're need they are thing want to their to reopen also come incentive Keith, -- and we to and is patient down think, going hearing going that to I The see we come thing

So, a physicians their motivated practices that's sign. to are very get and open, positive

said, at in and had know I week. over out And point we out weeks What patients just how As the we that's plays week reps this don't we to dynamic XX% react. field why, see going out just got to are how are this our this in of next months. -- time, the few the is market

David Steinberg

All Actually one right. more thing.

better of with has also them the get kind mode are afforded was team to of have that of curious, these a the still inroads and product actually still indicate side speaking Company? these learning about of helpful lot the COVID, clinicians launch and to more better are they the company your actually companies relationships relatively have you're a to materials the relationships we've to also and be And to since that which, in with sales could your Some less I making hiatus and in days, once full just doctors build or management the key you're been because that more doctors doctors kind than of we this the the new companies. closely other with the doctors, reps educate working

Peter Miller

of I'll guess on, enabled dialog. many Vic, has broad Rhinological sponsored We a actually it as CME type pandemic started. good two there I we Society some our result leaders. think having very said, that Yes, key of right sort pass David. was back that events, I'll rep cases, interaction. the when in, as events had American start And the I very this the to that, put I of good had and mean, in different attendance opinion for of kind a some time And real some interactions just with you

help. could certainly it So

reps virtually. way, the too, did, thing The of lot it David, our got is by with a each other other practice

had also messaging tools we by of downtime, I our team, the the where and really we So was and that. skills sales and excited sharpened the

And, know anything have to don't add. if Vic, I you

Vic Clavelli

our I mean, strengthen right. I think No. We that's definitely relationships. it saw

up appreciated to community prescribing very time assist physician the program. think help during was for them grateful I the period. They we this stepped that

it there to good great we through opportunity We as ways on virtual gotten also new that. customers was that platforms. engage rolled to the engagement feedback with I took out data definitely and and some an new we've data And find think

Peter Miller

we And we'll for a with I capitalize this in because just is you the the -- is remarks opportunity believe the point leave that end that -- I'll -- potential us call -- real and XHANCE said there of a months. sick. the presents weeks for very surgical us on. in a delay to over And next But a will procedures few opportunity market and dynamic of backlog be an still there and patients it

David Steinberg

Thanks Great. a lot.

Peter Miller

David. Thanks,

Operator

questions. At further we have no this time

Peter Miller

-- very Thank next second you you to forward update our we very and your thank questions update. much Well, our much. for look quarter

Operator

call. This concludes conference today's

You disconnect. may now

OptiNose (OPTN) 10 May 202020 Q1 Earnings call transcript