OPTN - Earnings call transcript Q2 2020

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Operator

Good morning, ladies and gentlemen and welcome to the OptiNose Q2 2020 Earnings Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Mr. Investor of VP Neely, Relations. Jonathan

Jonathan Neely

our be on Officer, our I thank Good section. presented our the call as plans President joining be by ahead. viewed today and and for on website, review Operating morning for Goldan. CEO, OptiNose’s Miller; year our and we and optinose.com, The second Investors us performance today Officer, Vic Chief you quarter this Peter joined am the our Chief Keith Commercial slides our in Ramy Clavelli; Mahmoud; CFO, that will can XXXX

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

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

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

reliance You cautioned on to are place not undue statements. forward-looking

during these any of and statements we revise no of this conference undertake date or as this in date Forward-looking of statement, such call to call original earlier the only speak indicated or any statements. obligation update

Peter? will that, to will call I over Peter will the prepared We then question-and-answer a now now make With session. and Miller. move remarks, turn we to

Peter Miller

rapidly To of and I our adapt reshaped We on coronavirus our to growth the environment by appreciate Optinose thank second the team job the We would morning, like business very Thanks quarter to joining you everybody. drive XHANCE. moved commend quarter. good us this and and everybody outstanding for to pandemic the an to continue much, for start, update. Jonathan,

the to related promise quarter XHANCE, build continuing my on be this to likely reinforce that will COVID-XX, to challenges belief and stronger continues on this the our there While way well delivering performance feel moment, is I of than business. like team more a I’d from Slide a by to very ever takeaways into X, ability five detail start our will presentation. we on but in go today’s key about Starting to successful providing

First, we given in July. the COVID care and to prescriptions in grew pathways. quarter-over-quarter as our the successfully to volume – XX% environment. prescription believe XX%, demonstrated was disruptions XHANCE which XHANCE remarkable we resiliency the Total volumes grew quarter, our patient see business adapted to COVID-XX year-over-year impressive, continued continue and growth to major we grow second and prescriptions

in X For context, offices believed based and and, visits pre-COVID-XX decrease of impacted. on the ENT norms X XX% physician patient first to weeks a XX% customers, we in with to we the practices compared similarly on were based third-party force interactions data, field to and allergy experienced quarter, our believe

visits visits continue As below public physician baseline, late allergy to the estimate began to to offices improve, patient ENT we to lift moments, May, health to restrictions continue variation. environment. in began that we but how and be forward in achieve though XHANCE few adapt moving to In this regional with I did and more substantial we discuss what will a growth about pre-COVID-XX will

with co-promotion recently a kaleo. announced we Second,

half called our frequency current strong to of incremental reach XHANCE. excited office-based they increasing healthcare and Kaleo are relationships audience prescribers, physicians kaleo built on audience. an agreed-upon to will promotional whom promote with We’re nearly the professionals target both co-promote audience X,XXX for XHANCE Optinose large, the in The have partner with is of rapidly to including and universe. leverage about

by to sales We October commence detailing and XXXX in-person third quarter representatives to in train kaleo X. expect

results produced have business We kaleo believe and a have adoption. impact partnership forward meaningful been to look can XHANCE has that impressed strong we on management and with team that the

the significant growth environment, the very ever XHANCE resilient this XHANCE is for quarter and as encouraged believe market market share share the are we growth indicative whole. Third, that in by of in strongest was compared demand our achieved to a second

and Importantly, additional revenue remains COVID XHANCE XXXX. of for growth. enormous there financial we of environment, Fourth, challenges operating net headroom are the despite still remainder for prescription per for the the guidance our maintaining increasing expenses for

fifth, clinical cash available in under as of funds line have be the And operations positive, Pharmakon believe with June strong of may will from that sinusitis for sheet In believe until XXXX, addition, value second XX. a results of We existing our have balance expect additional driver expected company. the second with we at to our we in we half that from which, of the continue initial be developmental top million one fund if plus trials of we chronic the program major facility data a of $XXX could least CS XXXX. debt cash half

and this to the during how necessary, learned we initial when renewed way to with in This we our for Turning to to our second tools strength. interact to current from resolved. XXXX environment. quarter to our is quarter after strategy with even market physicians target organizational where the XXXX, the like pandemic phase promotional second the believe build of ways is XHANCE begin in share engagement I’d important the through us the Slide brand we to digital illustrate it incorporating customer leverage believe resiliency the with capability revisit position to because us best we that disproportionate remotely a pandemic and results, expect audience. From as and of appropriate turning X, COVID-XX emerge perspective, capabilities is new commercial that refresh to market and challenged demand

hub to as patients scenarios. remote for commercially support our ASSIST telehealth event patient be To delayed Importantly, to offered elective Though the during surgery end future believe XHANCE pandemic, challenge, our that in flow through confidence a first We ASSIST the we our also success flow patient program well of we for support patient for ASSIST copay of increases because disruptions. new programs. number doctor can previously broadly business with as patients. opportunity, the the pathways patient and launched and tools resilient care, initial visits insured increasing refills a these of in continue reduced in creates at returned in successful months an out to can the the care patients new closed June this, $X help the disruptions COVID-related of delays including creates and physicians manage program. or The program that via of our facilitate pockets

the great position Share during in support Slide patients phases the to crisis prescriptions reflected as a help particularly XHANCE rapidly started. received continued as physician the regarding disruptions general from target to expressed is during proportion illustrates have strength a the audience. stepped second feedback for disproportionate physicians forward pandemic seeing quarter We our and of X up in steadily the care this as market physicians by written bridge of all emerging recognition XHANCE and from the we steroid look of XHANCE as of in growing benefit provide early share. growth. the We of the intranasal to

to I second X.X% second from But growth draw of face quarter, share can would that your XXXX like attention have sequential in to as on unusual increased first XXXX, quarter achieved during we the the you the full the to grew incremental see, of quarter, X.X% to quarter especially of responses second quarter two second in the strongest from quarter in see increase almost can what first You our the share launch. circumstances over since XHANCE XXXX. points

As continue continuing to this to are return, patient off base. and volumes we focused sustaining hopefully on build

and had new for new XXXX, XHANCE, prescriptions quarter a treatment following in to initiation early were collapse an programs weeks new impact new strong that in managed and in persistency to quarter, on a in XXXX. reminder recent prior there highs pharmacy trend first quarter to patient within in second second that compared supported year in grown major The than resilience Turning the preferred approaching XHANCE. where compared by reset, is XX% believe ago to partners, very our in all-time contributor can seen prescriptions using a by and de-identified XXXX. increase prescriptions XX,XXX a Slide quarter of of increase the recent this XX reflective fills reflective per the producing our we we set XXXX. were XX,XXX the months outcomes of second three flow COVID-XX-related per has there prescription patient steadily refill is and second X, XXX% were patient This are XXXX, returned data. quarter increase after In the network we are This assess of Refills preferred to year four trend in growth quarter reflects to over of feedback. initiation more XHANCE, encouraging number the year network patient-level believe pharmacy This from months. patient this number we a past of have trend prescriptions continued

that new promoters other other steroids strong majority reinforcing data previous are product. to We previously of and data treatments suggest prefer with the nasal survey improvement patients a have symptom net using survey of patient experienced XHANCE XHANCE

out prescriptions, covered new significant and growth market strong given X, This of quarter I really over that XHANCE of market second with declines strong were Slide gains, in quarter the ago. represents the INS in the XXXX market the XX,XXX. the the prescriptions growth translated total volumes coupled COVID-XX new prescriptions pulling for how was were performances quarter-over-quarter These pandemic. XX% into driven is Turning What the second year-over-year refill number and approximately total moment INS share and a to stands the of the by together, XXXX. decline,

filling depth the number Turning year who of of decrease that total to Slide in earlier. XHANCE substantial X, patient prior physicians the measured prescriptions and despite flows is increased we have prescribing by discussed patients breadth over

of Regarding compared least physicians breadth, a of quarter second XXXX. XXXX, an had to fill patient in prescription XHANCE, X,XXX increase one approximately quarter of XX% second at

physicians has XXXX, second of prescriptions number now quarter physicians more this the by increasing than filled grown quarter more a XX% with second XXXX in that who number X,XXX patients depth, faster, segment. quarter in with than Regarding even XX their from by had XHANCE to

increasing sustained While this depth in we the return as and dramatic volumes again, to believe this breadth trend in remains decline second results called-on XXXX of commercial but as became a patient that corporate we and the and perspectives potential size group closing was of CFO, the strategic for We team. over adopters. a first the depth. of full-scale COVID-XX breadth an recover will focus I’ll few growth is some sequential regarding the a Growing spring, physicians the long-term priority remarks, from during second provide and see resilience quarter-over-quarter moments, trend company even our of significant for illustrates, a as here both XHANCE Goldan, believe of the turn strong blunted number quarter, call our Keith will quarter see our of comments regarding we growth I guidance. and environment growth our to this In

Keith Goldan

you, today. Thank thank everybody Peter joining and you

XHANCE we of quarter Turning the XXXX. million Optinose to net $XX.X Slide as revenue in reported, XX, recognized second of

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

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

of quarter we that of subject including sell through variability available price affordability pharmacies for an reflect is XHANCE, first to result previously prescription that individual remainder insurance $XX per other we net metric $XXX, a communicated. Based of data from do remind also to was this for levels in second for a consistent average patterns unit XXXX inventory necessarily of the the preferred prescription that to factors. of and customers and from an benefit our received patient you of a that network, compared quarter of XXXX not is is improvement acquiring we paid XXXX utilization ordering that with variability. for programs, proportion rates directly; the in of patients XHANCE we increase change and nearly pharmacy $XXX wholesale That the expectation directly purchased factors third-parties and the our XHANCE the However, and on on data revenue

Moving we morning, maintaining to aspects of XX, previous corporate are all Slide guidance. this our

assistance changes factors prescription through not major to gross to net First, where remainder that structural they XXXX. net Overall relative is access, revenue the XXXX. XHANCE in continue our deductions The unchanged. and copay per market are will expect of consistent improve that of the base to influence program have which terms rebates, drives experienced our generally we stood

short-term the also in through COVID-XX, XXXX. growth should to our associated of contribute of second the program, addition, disruption we share In end ASSIST the half improvement accelerated which believe with supported the

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

XHANCE Finally, and COVID-XX in Peter? while back over add I results worldwide treatment potential Peter we trials to as regarding remain will trials closing ongoing XXXX. of to from the a second give our chronic changes half turn fluid both clinical evaluating top some remarks. continue to call expect now line sinusitis, restrictions in some the uncertainty, for

Peter Miller

Keith. Thanks,

to moment the of program before Slide discuss call XX, the that will OPN-XXX at announced the to for Turning June. Q&A, a end I we take opening

the social high broad that to ingredient this formulation major been to we to a of which suited vitro. sprays surfaces the in not. active to masks our transmission. an nasal being have COVID-XX throughout like through antiseptic are new in is do been developing infects of program and advantage distancing respiratory airways, way to of coat able entire cavity. But to why areas Exhalation caused has proprietary people the has enable shown We we that a broad causes COVID use uniquely delivery third-party virus to the antiseptic by spectrum kill that the studies solve nasal reduce a in nasal the virus approaches problem and The of cavity technology is upper System take initiated EDS nasal We often our believe surface deep historically standard that is Delivery challenge.

to delivery the delivery be commercially accelerated U.S., both ideally and the a potential active cavity, is so suited winning available streamlined has currently nasal drug appears where medicine shedding, combination. and we EDS and this Because be candidate of include COVID Our virus the to this the drug/device in throughout drug multiplying of to spread expect the components planned areas combination product are think technology device, development. deep we

of soon Interaction have an experiments Overall, activity. with envision in discuss is an role the intervention that program, clinical of because and to expect to societal components final planned FDA rapid accelerated the fill. for prior to pressing verify supporting shortly both product once the intended plan and need of vitro wealth is an we because IND the OPN-XXX We data formulation the fills thereafter. antiviral available, to

help operating the of are grants, We initial our are inexpensive this plan combination expense health seeking capital To stages committed while other current of to the to the we crises. public development. potential other supporting further excited and clear, support and be are with to and both parties new of partnerships, and future drug/device combat current development pandemic sources by

Q&A. the ENT Our and you. a focus call like leading open and would for to growing remains building allergy I now And Thank on XHANCE company.

Operator

Nachman first [Operator Capital Instructions] question with Your comes Markets. from BMO Gary

Rafay Sardar

It’s on good Gary. morning. Hey, for Rafay

prescription $XXX $XXX the XQ of in How components there you year half the program to versus XXXX? net per thinking per we be and from the much can help delta? last the should of revenue second of was year, how ASSIST of quantify half about that drag second a the net prescription relative revenue So was

Keith Goldan

that take one. Keith. I is question. Thanks for will this Rafay, the

talked in we XXXX the of a first, my driven So, our by, lower about year was year-over-year insurance The started almost that we I year, $XXX, of in annual we $XX $XXX our that this to I say was saw the last increase XXXX. increase increase the in the base by starting want on refills. mentioned part that point call, year, early from the were $XX comments, of couple factors. was resets than lower deductible we we the XQ interacted and in a that to prescriptions compared The as as experienced driven to with proportion did the

seen that’s year are confidence closing around year there than gave we us XXXX quarter versus year range year. not that we and And including believe ones gap guidance that is the the this last noted specifically COVID, that net to unique that $XXX. we greater of the yet to to the increase factors, revenue the prescription the back to guidance we quarter was this continue why while $XXX per is So prescription average I to first the substantially give are set the what give the have quarter. we revenue improvement per for expect throughout levels, to

out-of-pocket to their patients meet the to expect We insurance deductibles. continue

assistance going well the contribute as through As or of co-pay less program. ending we that’s to sunsetting that to progresses the year, ASSIST contribute, the that as the

Peter charge whether they commercially in were prescriptions three provided his to eligible or not. no patients mentioned covered As comments, at all program included patients, that that

So, weight per third is factors expect as the year. program, contributing rest prescription early to some through one patients contribute to in of June the that the fill quarter see while going ASSIST that continue the we increases the to sunsetting on of – on our average to of revenue

Peter Miller

other made Keith, gross-to-net a over of we changed – of to our I the XQ. we in couple terribly components for balance, share said, that that way things which are the of I structural program that shipments, are And the price. really year, are and add confident different, by meaning haven’t things this affordability the two dramatically. not choice which bit than we real per we grow the ASSIST you major truly the there’s explains And continue grow all-in-all, necessarily rebates patient like revenue is, going lot would to influenced prescription, differential price the as a net a reflective the feel as said, the pricing year that, we program, drive by year-over-year. aren’t deductions that good that fundamental average But because, of number this in to things the know, going to historically and it’s

Rafay Sardar

And the overlap many be how kaleo Thanks. and those could some then physician on you. will there given audience? of are the the XHANCE? on Thank promoting reps some you in economics color Great. partnership, of kaleo call How the provide calculated, the

Peter Miller

let fill and will can that. can universe, I can about Yes. I maybe Chief economics. we Commercial our maybe portion Vic, take We Officer, of Vic – into the get and Keith But the a then in. called-on talk Clavelli,

Vic Clavelli

much. very Thanks Yes.

call for us. incremental and So, to of half our increase kaleo customers. at is universe they going already About an X,XXX roughly physicians frequency to are on within going called-on are those the which reach we those just

us, think other half they within for about to patient that are customers new – their yes. And going extend going are of us number to base. The customers and to be so the allow XHANCE

Peter Miller

regarding group on Yes. the are to economics, a that Vic cost-per-call basis. And first we mentioned, pay going

plan, however, being growing kaleo’s and to We because is to incentives have obviously are you the on align just universe business. make sure force on driven make in have sales relying sure pay-for-call, a built into that incentives we business that the opposed to as

of that paying not are a X,XXX called the On per-script on, basis. we are on

that So, there what basis we team drive. pay for to going kaleo a incremental volume, the on of alignment is complete is they just and drive where are to per-script

Rafay Sardar

much. so Thanks Great.

Operator

from next Fitzgerald. question with Cantor Brandon comes Your Folkes

Brandon Folkes

color patients those if just patients little the in maybe seeing data the funnel secondly, that. Hi, patient sides, you color the to surgery then CS the on environment home. From provide and around the you elaborate the have these XHANCE, firstly taking and persistency go nasal just well? of versus between that new willing secondly, you around Can polyps on can and populations bit congratulations the and as population scripts And then you onto any are you. And if questions process Thank some that less on around thanks my a in do patient July? two the getting managed and just for split at quarter. on current now have are on both

Peter Miller

of on can any Vic the this. just start, And, flow. we and will with add will on absolute I don’t color really patients, number data start and have Brandon, I patient

to we volumes on varies So, are on office, geography. and between I zero anecdotally. XX%, give But and depending going that you the am really it probably patient depending down to it estimate geographically somewhere the

you is of was of What’s I of category, is is sort look So, it back to to category where relative sort year-over-year July looking, at will. there sort the would start a interesting, year you if how ago. Brandon if

but missed the the we are patients of normalized. as to that has of late count thinking will, you we And if up reasonably it half I really there’s something continue as tailwind season, see in category in year, feels We back bring if just potential sort return, second season a of So, it’s if the September, you for pandemic. watching. because can’t about real October. it the of are But on currently the we COVID because like August, sort that,

So just that’s broad sort patient flow and of on script. a

has Now, patients delays your surgery pre-pandemic really some surgery and that norms. there. on to really of specific is areas, variation relative returned effect, and to there In question

We are surgery. a are interested patients amount of in who fair seeing

are there Brandon, have our physicians, familiar as need patients of think benefit throughput data surgery with. remarks, ENTs are historically of surgery patients, And reasonable of offices. they very number those do XHANCE don’t However, who some because the is now. the enormous the for the a they cleaning the We some had because on efficacy stated I no in we same want that to in the have ideally suited doubt patients. is you of there front not have And get bring those for earlier, on to right procedures of we

home. a into our one directly of network of pharmacy can XHANCE and coming prescription a patient’s as even on the it, gets used So, to is sales working benefits ways The patients. as process patients we mailed bridge, telehealth aren’t obviously getting we XHANCE, office, be as there patients via those for of it a our say are offices that’s those team know, in preferred if you is be the that can with working, prescribed

that very may not comfortable environment patients is we saw So, I XHANCE of the in think where reason as said, an into think a physician office, some just we frankly, the And growth and be polyps getting we into get we some the that things well-positioned. patient that do Vic, add of have split anything the chronic strong on nature nasal quarter. sinusitis? and share between we to you in flows had before

Vic Clavelli

No, I opportunity And patients. think nice that at are summary, delayed to have including in the at both really mean, was of looked Peter. saw a those for to an real with the were XHANCE when increase perhaps for are physicians looked so pandemic those I use and to think allergist an a that patients competing and opportunity XHANCE we when patients chosen they that talk presenting community that an the as that especially patients also discussion to about that we us both about consider an offices. range as And broader patients, the we in our about surgery. it pre-surgical the in in could are empiric opportunity to treatment allowed of who of decision their symptoms we appropriate was their patient

Peter Miller

question, last really on polyps very between your it’s CS, nasal stable. the to Relative Brandon, and split

indication, and we data. roughly certainly that split. real – And a estimate, that with third I changes have don’t it’s is the see polyp in and a of of outside of We census not as two-thirds about patients nasal dramatic about reasonable think, that diagnosed are – Brandon, polyps. It’s patients data

Brandon Folkes

you in seeing are persistency creep just up? the growth And with Thanks. refills, then,

Peter Miller

encouraged We Brandon. we front. have, refill really mean, on I the are

We de-identified about frankly, in some it’s our we and As is over I growing XX know the patient. have data preferred the the pharmacy X said, every a get months majority data. have the steadily network – business. months four I the ago. into census several single on monthly of really basis significant over think And in months. from track on up data this, of them past And good mid-fours, truly we We We cohorts. patient because been

as during in too, encouraged And us very major growth highlight, levels refill. with were that way, by prescriptions. very the actually the to that’s And I one and we to prescription grow we are highs factors new by were of. are we we So, achieving that hope it’s pleased the script, the now But it’s clearly that achieving, of pre-pandemic, the are to new off in mentioned the reasonably record to that want base the resiliency we back pandemic. that had of I achieve the obviously allowed we we

Brandon Folkes

Great. Thank on helpful. quarter. you. very the Congratulations That’s

Peter Miller

Thanks, Brandon.

Operator

question from comes next Your Cowen. with Stacy Ku

Stacy Ku

my Hey, guys. quarter. Thanks taking and congratulations on for the questions

Another in-house can potentially Is patients, that about for program? bit have the And more the for refills, you little commentary talk to what a usage? are modest on strong it recovery new regional expectations early visits? few related And then, the given pilot DTC I adding a follow-ups.

Peter Miller

Refill was really DTC. not impacted by at all

different with one and product I network refill certainty as anything, say a intranasal know reminders, the pharmacy that’s job it’s again the complete we again pharmacy And things. refill. one, other works our pretty do substantially really previously, sprays. a and of think than is that they’re our to Stacy, sure to this But product. make really Number that two as, we driving I just have than were aware surgery. the partners data it’s thing especially are refill I comparable I and And for thing think eligible that is the again, products people good suggests more

the is the product. think to growth I due in refills, I largely So, think,

add anything that? don’t know would I you I Ramy characterize Vic, to have or if So, to that.

Ramy Mahmoud

referring COVID variation we was have how so or not regional the the – the differences did pandemic affecting about that comments, DTC. regions regional to not in significant said patient much in the we we comments are the made We’ve prepared differences did flows, in and to where primarily referring

Peter Miller

pilot DTC. is for because it up, comment to evaluate to Thank DTC bit the just DTC I’ve how of will we is markets the as our since get stop a we or We offices But historically the label expand this for right those to that. in we of figure the you, it patients, we to be now planned had in there’s first of therefore, figuring patients of DTC, just so, Yes. strong point that encouraged we’re know, to is in broaden physicians that and job a target decision. role and test And firmly Ramy, product, have mentioned a sort by quarter some that that in make you pretty at of brought are calling doubt seeing of lifecycle Hartford, we very activating I the activated activate no I to than Cleveland on we are what little made – we coverage we continue can especially expand thing, very out have pandemic the The Charlotte, patients. on. that that the did are we we sure we can going how DTC out that audience DTC. earlier as

of are – at at figure really to just said, if encouraged most to as base July back country broaden physician we boy, hearing to now from doing sort this a And weeks we this where that’s we look what to very trying interesting right there was we are I offices. for is new if okay, busy, new done the point. modeling our it’s regional you we comparable recent outstanding grow good where by We environment that an to creating new which And I whole I be really prescriptions, we so, to the variation we to what offices right and the I time an environment think, the allergy is get back to off ENT physicians of of are is to. pre-pandemic, of. safe a prescriptions out where And in job, to pretty the that’s we but here, offices when can patients being creates Relative thought, thing end are started thought, we and come are were the back think pre-pandemic. and that started, – around have were reasonably going patients,

markets of some the be going prescriptions country. volume to the Some look to very in in the Texas surges strong. comfortable patient parts of but Arizona, We, back. some are And saw that you encouraged I’m and be going those some are in reasonably of with many at holding reluctant, in and especially of obviously, can actually appears

Stacy Ku

kaleo visits a do the in-office presence? only QX, starting they Thanks. would be And to in Great. have it. just Got for promotion or this telemedicine clarify,

Peter Miller

It’s in-office. all

Stacy Ku

Okay. Thank you.

Operator

next Markets. question with Randall Stanicky from comes RBC Capital Your

Randall Stanicky

Hey, great. growing Thanks, all guys. Peter, the about story is prescriptions.

obviously from So, should probably I help in expect presume looking is But about about at early us to this some what what more we should us training, kaleo. help think and we expect do XXXX, you XXXX. and terms timing so maybe understand that growth of need the lift normal seasonality? to going pandemic, the about prescription Recent it’s how that so then follow-up also But not think that opportunity strong. And the to has partnership. the is from we’re been in a times. scripts other into should summer, we are we

So, over just about of thinking in respect be Thanks. expectations with summer, that? to we terms the should what

Peter Miller

a done has very team because like has are Yes. strong one tremendous we years product. has I built Vic I working team about that four calling I partnership. excited and at job start And on will give color, a the allergists business, on and really very with to that and kaleo kaleo think for with Vic would been

relationships deep they of have on. they audience the calling that So, are with allergists target

developed excited teams. we going months for but the chemistry third So, Randall, the Relative our not their we training they’ve remarks, occur in summer what said in as impact, to anyway. Their are between historically product prepared the to by season really quarter. is in done, the only that’s is EpiPen being

to Their in very then, have the really season up to the training. So But sort I there in the both We that early it’s mid-September, thank parties. tail to so going when designed you, their didn’t Auvi-Q, to And to heading to Vic a should our you to think on a want strong expect be brand. I there product. October. that have into in – talked we They, start will sure work we but Auvi-Q think wanted if ground make training September, good we of we do EpiPen is as we summer, starts I said that. that, that’s product, disrupt really will, disrupt an season for partnership them and didn’t is that’s goes best-in-class, want they – hitting

for Randall, Auvi-Q the brings us hard the impact, things it’s – table – advantages relationship is kaleo to that to the the of One that predict one with deep of physicians.

are is we to with relationships develop new with has deep have hiring like not this relationships that force So some docs. They these docs.

running to about Now, think I I a it’s part to mean, we the going be of but are more it. have will it’s of what that’s in said, they going frankly this reason hit produce, as XXXX to excited see, I But impact we a than think going do add? you anything are to ground the as Vic, to more XQ. year. XQ have I

Vic Clavelli

them about on. we XHANCE two calling Yes. calling get are in really they on, front going mean, those that doctors are of to about And already cohorts more consistently. the I it message the think we that help are way doctors in I of us

And so, have to a... that would we expect

Peter Miller

have segment. – promotionally we Randall reason us are product. a we when And And the we additional with was Vic, about that, force did way heard this But, to this we Vic, – by the the contacts you we go an second just and way, see And docs, get on talk very believe expansion. talk, deal responsive like things Randall, versus contacts efficient is please sales response. get

Vic Clavelli

Yes.

or into it maybe to of his we know for doctor XHANCE practice. segment, calls Second between XX to somewhere seven integrating begin XX, takes an say average let’s a her

so And at. we’re what looking that’s

Peter Miller

XXXX you overlay INS and facts where remarks, interesting obviously, it’s July July our is take so about have total of of should timeframe In to where I but of predict year. the you brand category hard is category, not do But versus in you seasonality, my that, of the but that terms What’s if in was is XXXX. an alluded the – in this market prescriptions last market last the year’s, the Randall, honestly. give the I’ll last if

one And patients the of issue on offices. despite don’t the if going again the surge into is go out, you that, will, we of not spring weren’t in with willing be care, many they forego people patients, the – up allergy – those because season don’t allergy we season could So, missed possibly dealt doctor. they thing in their into sort summer. happening They show as they think you see to the in of just

we timeframe. a tailwind, July I don’t to want see is see this, somewhat if really alluded you this, the the that that but I that. in Now, the possibility there us nice know to you timeframe, a could lift now sort be truly and for candid the of with to August/September/October in seasonal will that’s is really see normalized normal But category Randall, you you, certainly hard predict

So to I we at, said predict. that days on looking you not we gave you But thing, growing us have for we’re the focused hard going very but that prescriptions. be only new available, are to which right it’s is, but the refills prescriptions

Randall Stanicky

on didn’t call, That’s enough. now? helpful. far thinking about so right your growing in solely Fair Peter, XHANCE? that’s talk focused something is And Are even business development we on the that you

Peter Miller

to co-promote bringing deal the XXXX. product company or to do there. to market. that obviously we activity way think we our there XHANCE commercial likely always all leading I Randall. ENT said, we either the certainly some in the there’s I on established on And firmly that. We our to in allergy And think partner one or have get in think for ambition company. well – in-licensing But products is build is the And a point into at about the have relative to fair to it’s in job thoughts a some amount we’ve via OPN-XXX we mean, become along is, It accomplishing partnering. said of via co-promote work are think we is and our

Randall Stanicky

guys. great. That’s Thanks,

Operator

Sandler. with comes David Your next from Piper question Amsellem

David Amsellem

Thanks.

Just a couple.

sense on XHANCE, through needed I improve to you aggressively talk first, can it’s non-polyp access, you is one. chronic think think then, what for to reimbursement number with to forward? indication. front mind, for the do trying sinusitis get long-term need And related going that just or strategy regarding second do you That’s need you question to differently more a And anything course? the stay if is in anything? you am your just reimbursement, to you the what So, my whether to do contract

in favorable co-promote. non-polyp on talked about the with past to practitioners you what would in your us thinking you’re what expansion, the general you or patients? accessing data sales latest plan perhaps more broadly a do update regarding have Can You you force extent Thanks. thoughts to do some of

Peter Miller

to really Vic Vic’s and are think as Yes, have team. business. guys Inflammation I our running, like as know, was will part you comments, Immunology because President delighted start And just was I on Vic access. Pfizer’s I we of of

strong. we access. XX%, big has I at he stage don’t is very run product good several commercialization blockbuster to begin, the he brands. businesses, access, But David, this have have enough perspective commercial So I – of will perspective XX% we that access on I strongly by and say is built he’s of the – that And think including saying, on know

Medicare couple we’re real on David, we and value. We on contracting, that that the to rebates. I going have to is if and contracts have we anything day the have recognized think, of majority that in having the of have we to with you route the on – we by the still being don’t but we add the to more Vic, the the outliers, product, that But believe not we bringing payers rebates. will, on go to product Now, that, that, as have side, are that. to fact you know, are have win payers think suggest of away give if the negotiated Medicaid the don’t we going on terms are aggressive have we working But improve by a

Vic Clavelli

Yes, just add. will I have I impressed. really been

payers our as the both pharmacy of I field-based terms them. well think strong national team in we exceptionally who access as directors support engage have account that here the an teams

there need. proposition to truth are for attractive serve it more biologic or they XHANCE pretty only value the space. very to think, And see prescribers surgery them the is should attractive progress payers. that’s brand. biologic that The therapies And well gets more that great that’s a I therapy help guidelines worked opportunity the the clear optimize and for entrants topical are into before as we to

Peter Miller

It’s interesting, David.

sure We affordability branded challenge, talked products our have in and physicians in the understand mean, just bigger not access affordability to that – is and do our is about fact because think historically. affordability. and we in we strong access want I access front this say, access perception good have this making I there have

So, I answers hope your question. that

as numbers, which ENT any don’t this, trial, are indication that really audience, much. value patients benefit sinusitis talk as we are significant physician of audience. patients being about the XX substantial people in about a of but that primary value the CS chronic of in On those a of who bring real a care. will broadening of And as are chronic physician, X have allergy, is million are that that patients But sinusitis in the million indication the of the the million actively about X number treated the by of reminder,

which on is optimize XX,XXX think what’s opportunity to they nasal think, that best in we patients. on primary the probably reaching the value is doctors indication indication, from currently care we space, in we And the CS segment. done are overlap partnering. by who that the think, there we can still So, produce calling the that a of to XX,XXX that good have are segment, arguably will with necessary already chronic reasonable seeing products is polyp in via more Obviously care generated number than that calling or pharmaceutical to they’re going who be the be companies primary volume just physicians, are sinusitis

have beginning, to say, that are understand the that perspective initiating, beginning we we to really just process conversations of that sort build we’re just the necessary and from So, making starting you toward of are market I’ll opportunity sure the partnership. that David, – whole

David Amsellem

it even would a in, what the have And say just I And follow-up. sneak arrangement? helpful, then, you a that be fair would sinusitis is co-promotion of to expect I That’s Would the you guess, that, spend, a mean, context in significant DTC. contemplated I with maybe kind ramp how in something Peter. in – chronic question. qualitative And in the there be that, of label, that sense if may is expansion of

Peter Miller

to you glad a going the States million words, sort but they And who aren’t we the brought rhinosinusitis, with aware David, a if million move been that expansion of have where they’re in potentially of as lot the made the potentially I’m offices, into, and are up, being reaching actively get people are product. available label greatest chronic options but are United because XX given are have Yes. because up in other of they frankly by opportunity just patients them. treated being not the reminder, it lapsed. XX physician have are actively that physicians treated, for In XX suitable the million know feel way, historically they there

David. DTC marketer, feel my the I background opportunity. that – an is OTC million So, people is XX And

I there enormous from a DTC, an label said interestingly. patients earlier, we pilot nasal learned think DTC, polyp with I our we even opportunity expansion. with indication have is as what in And can for activate particularly

talk you on hand to people say, to XX DTC, patients, they I say I – million about hear have if in the am we we appropriately their David, is or people, say, have they polyps. hey, actually There to sinusitis, but that’s not do reasonably have you we have So, you nasal me, am certain, when that, certain, not have which chronic raise that. seen, may may some

right patients an will So, sure DTC that of patients activated get our investment, have awareness now said hold just advertising. we on And by make into return going back prescriptions the activate only stronger I this physicians to have us, for with turn and DTC the to appropriate earlier, communicate who ability to to the to make in ability product.

that trying world, we’re to label major component. will likely wrestle what a So, that’s expansion in it’s a I think but be highly DTC through,

David Amsellem

Great. Alright. you, Thank Peter.

Peter Miller

Appreciate your David. comments. Thanks,

Operator

further no [Operator questions this time. showing I’m Instructions] at

Peter Miller

thank for will we forward and call. with to update. guess, everybody our the joining We down no look questions, next I close

Operator

participation. for your conference. concludes That Thank today’s you

may You now disconnect.

OptiNose (OPTN) 6 Aug 202020 Q2 Earnings call transcript