OPTN - Earnings call transcript Q1 2021

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Operator

Good day and thank you for standing by. Welcome to the Optinose Quarter One 2021 Earnings Call. At this time, all participants 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 call is being recorded. now today hand Investor Jonathan would to call Relations. I speaker your Neely, Instructions] like the to over [Operator Vice President, Please go ahead.

Jonathan Neely

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

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

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

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

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

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

Peter Miller

like slide good and appreciate from highlight joining Starting morning a today's presentation. into key morning. detail in this on we'll Jonathan go more everybody. moment. to you three, four I'd Thanks, us takeaways We

focus is This trials, revenue company start believe company, on two could for we company. was and value significant driving an XXXX a the our additional our aligned financial pivotal for strong guidance. First, chronic with getting performance our objectives, off continued sinusitis which important core QX good our the to year create completing enables XHANCE

new Second, XHANCE the in versus significantly this against Notably, related of first the all-time challenges, new despite XXXX. is prescriptions XX% the over prior pandemic year achieved market was of where another and with prescriptions not quarter of decreased high in first a by ago, which pandemic prescriptions an quarter, new year. a increasing XX% market quarter growth impacted continuation environment

of physician offices multiple will XXXX. pre-pandemic representatives improved since Third, the in-person on patients the opportunities to now, of visits to to support we one diagnostic believe lagging of there next limited still the revenue pandemic that discuss the factor conditions is environment both I number discuss have physicians. with meet will additional by the sales in we will The and somewhat ability continue but reduced factors and are slide. Market pandemic, These norms. growth depth market

healthcare environment pandemic we our those the to improve patient expect as to and Looking eases, into XXXX. both manager offices forward, throughout access offices territory volumes

continued will these XHANCE for in factors We strong growth XXXX. support in two prescriptions expect provide

United chronic as environment sinusitis complete in to with patient's of opportunities pandemic we third And year. temporary first lows site line get to for the issues, enrollment patients this and top the expect result This Fourth, end with have closures including line of States to continued results In the research month change in with XXXX. by XXXX, of as first access from beyond of outside evaluating the related trial for improves the addition, of that first well. believe there's treatment quarter pivotal corresponding partnership a in is our quarter a clinical representatives decreased benefit top our guidance as kaléo XXXX. of pandemic we and XHANCE results locations more their prior

value opportunities trials the the first about would of suffer We that improve a growth be company. enthusiastic population, could new for this could of ex-U.S. data very significant approved sinusitis. differentiate create opportunities for chronic be for the expansion million XHANCE target sinusitis U.S. -- differentiation, for create. successful and drug believe basis partnerships, patient promoted increase product chronic product and are a from drive patients multifold XX who the We treatment additional ever the

four. Turning slide to

in for factors. by mentioned, we growth XXXX supported is believe multiple just our I As expectations

are for In specialty addition by and and societies distinct more is market with as multiple in such a patients treatment plays that options, this of rhinosinusitis believe an role there of and different we and much conditions, important pain. therapeutic perhaps seen recognition treatment nasal chronic of a improving care is stepped there disease, leaders with XHANCE where thought types important We asthma, in to, areas long-term and we polyps. paradigm prospects for emerging increasing other disease believe hypertension as have

is the XHANCE of physicians distinct XHANCE already needs, adoption from This as to surgery today. biologics biologics. specialty stepwise broad We Society on standard customized framework believe by nasal management in escalating begun And with Asthma of as nasal that College needed sprays increasingly to discuss logic support standard multiple XHANCE as surgery. care Immunology, patient a we've finally on XHANCE Allergy, is but the that from or activity such American again to a medical based patient of after and of experts individual disease. societies, will relevant appears to based to perceived it a paradigm and Importantly, Rhinologic sprays, offering surgery, ways supported an to from appropriate counter the that of over American option

of data benefits XHANCE a We the North analysis who at expert appreciation and published importance for kind role Chief distinct that Carolina, Brent recognition the and an is think supporting that patients product, others, play University tried Dr. by steroid value which the our nasal broader of Rhinology is of trial armamentarium. of Senior, specially adoption validation Hill sprays. its of role of important previously the One the of for pivotal can from reporting of of reflecting clarifying in Chapel treatment this the of the XHANCE growing standard

to and highest XX,XXX on to Turning In launch. since XHANCE, of six. were new number performance XHANCE quarter quarter the We had on a strong next. I slide slide in quarterly and XX% prescriptions of year-over-year touch first highlights increase briefly and there the first of XXXX, for for first will XXXX, approximately new prescriptions quarter XXXX, growth compared of the this

XX,XXX. volume XX% a XHANCE This that total XX% XXXX market over prescriptions over XX% against period. same the the was of the declined XXXX first same period. represents As growth quarter the declined over achieved was of The environment, in mentioned, quarter this number which first growth in of a approximately market

XHANCE's but XXXX. seven. XHANCE more to the X.X% We're to in their this of excited also headroom increased encouraged of customary quarter by slide Turning part for share XXXX first quarter growth, incorporate as first practice. physicians future market as from a about of X.X% in growth,

the whom this exceeds is continues group intranasal the for XX,XXX of based filling the allergy Breadth quarter the physicians a a steroid XHANCE depth X% signal prescribing substantial for the XHANCE by who increase as polyp The indication business of and spray there quarter well. in first share nasal to patients potential our XX% audience, ENT XXXX XXXX believer of prescriptions prescriptions number on by from of written physicians XHANCE's in INS and physicians audience, growing alone. physician current measured target total growing While achieved first of of segment in written. of prescriptions is the penetration to have as

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

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

of growth more increased last During depth breadth. than the our increased year, drove

As this closing first few XXXX moments, but the improve, first remarks, In to some quarter for turn CFO, and in believe return Keith? have our over regarding and depth growth we of the business objective. results will we will call focused provide Goldan, comments Keith perspectives I'll a our against breadth efforts regarding I guidance. conditions and opportunity both promotional for corporate

Keith Goldan

thanks And everybody for Peter. joining you, Thank this morning. us

consisting license As XHANCE a of million Optinose agreement recognized the quarter revenue and $XX net payment we XXXX, with revenue of from million million of of under $X we received licensing one-time in of reported, Pharmaceuticals. milestone first total our Currax revenue $XX

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

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

However, unit individual parties first net purchased that we quarter data a year. that of quarter Based metric compared the average $XXX $XXX This to quarter last we in from pharmacy guidance necessarily and and the was price our variability for an increase in on also to remind of reflect the XHANCE. is prescription was directly revenue available favorable network, an does for to change you preferred not is on subject that first prescription receive for paid of our this data the from $XXX XXXX per XHANCE's of to $XXX. third first

slide to Moving XX.

expectations financial XXXX remainder for with the result, in our and is performance full prior quarter and line year unchanged. was our the guidance a of XXXX first Our as

XHANCE's year million expect $XX First, net exceed to full for we revenue the XXXX.

respect the $XXX. quarters full substantial year net well see prescription, over the an full remaining XXXX we per to compared Second, in results as to as increase to of with three XHANCE's XXXX year of XXXX, expect revenue improvement

in discussed expect pandemic program in had that assistance repeat earnings, As XXXX, we we which our contribute not to last increase. to this response XXXX expect in to we patient a do

are million be programs. excluding $XXX to $XXX from over year million. full million the turn call expected to $XXX operating to the our of development discuss $XXX which of compensation. therefore expenses for to the $XX expect expenses, we in be operating in total approximately continue range million to I million, the Total now stock-based range Finally, XXXX, to stock-based is will compensation to Ramy

Ramy Mahmoud

XX. Thank you, Keith slide and to turning

analysis an variance The in The completed performed intended in pivotal variance was sample the the recently our co-primary interim was first interim number observed variance and to to the consistent end trial patients that of variance on variance that primary XXXX, today observed during analysis the trial. enroll trial, the in lower announced on that The size of and sample study. we approximately assumption were in result we actual of the when one blinded interim assess this that the assess symptom our half assess ultimately the priori was estimated of with endpoints the data was design to the to than whether size in the project we analysis our Regarding analysis two in the was CS we power XXXX. calculations assumed variance point.

month not that in changed make CT we've of which rates to this has changing co-primary analysis. of conduct by of week enrollment Canadian other any created centers. which patients' pacified enroll recruitment the our to on We've months, result, determined trial has continued at may of encouraged which COVID-XX environment, average volume, of pandemic this endpoint, a beyond period, predict the a endpoint, at particularly patients European alteration and analysis percentage basis few that and size this first trial rate scan influence is sample baseline to The centers throughout improvements coming to As separate year. rates. recent from the In enrollment interim the effected And of we're the to continued has we elect difficult to in the interim of XX.

in However, trial that first third enrollment line CS we first now XXXX. quarter in of the top expect quarter. pivotal to in The the results therefore complete

continue expect half ongoing trial XXXX. We to results of first second from in the the

Moving slide XX. to

our X pandemic. In evaluate candidate start the reduce of ability Phase and the viral still burden of pending. potential study helping to product approval trial nose we within prepare treatment for Regulatory to of announced for to of with initiate Regarding a few conduct enrollment. initial plan with results to March, in OPN-XXX study the available our future for is prevention or utility the OPN-XXX, this a weeks COVID-XX

XXXX. expect the to continue report get approval that provided within quarter results, of We we second

completing potential noted, Therefore, need we others and/or previously our partnerships I'd As remarks. turn product of and the primary on Peter aware despite excitement trial. to that CS this on focus. like further from over focus growing now of grants, Peter? value OPN-XXX, call the to for sources are for a the we and sharp are maintain detracting capital of we seeking other actively organizational XHANCE the back to development of to that support without closing have

Peter Miller

Thanks, Ramy.

XX. to slide Turning

Before a to to substantial to reiterate moving to environment take our a are improvement will bring the continue potential I'll optimistic that this to XHANCE. for other business growth XXXX business and by that as improvement specific Q&A, buoyed support the moment plans factors we strong the future and multiple in

are chronic And focused call up the sinusitis. throughout Thank XXXX. two I'd and on XHANCE laser Q&A. on updates to for to revenue look for in of We forward our now objectives, clear right completion progress open I you. pivotal like growth trials providing now our

Operator

of the from Thank you, Instructions] David Piper [Operator Amsellem sir. comes from question Sandler. first Our line

open. is line Your

David Amsellem

Difficulty] [Technical

Peter Miller

you. hear can't we David,

on If you be to Operator? happen mute.

Operator

David is Amsellem, open. line your

Peter Miller

the to go question, next operator. Let's

Operator

next Capital Markets. from Gary our comes line question the BMO from Nachman And of

Your line open. is

Gary Nachman

that morning. update Hi, non-polyp Have continue one net could on the there. Thanks. would put Good this, any Just polyp maybe RX? specialty network? of that in changes is per I the that's apologize that cover comment, versus to just modifying potentially it chronic the and season? sinusitis one, into know I an versus patient Will consider allergy that different grow, something it. just you patients? to then to made into of us give one the Is revenue allergy modifications you And much a how use pressure pharmacy guys. XHANCE on any other the goes if factors just something you And assistance about program? call.

Peter Miller

net and then did Vic, about prescription. per had less of few an and assistance by we year, Maybe frankly prescription we to I'll the revenue comments for Keith first moving a make to we thought our start you and about average uncovered season patients more at add Gary, can the and -- it patient was allergy as opportunity possibly changes improve the program the well. start

insurance not commercially two by robust and And to their insurance say, an the profitable and a so payment previously So, those that but plan, not to eligible, it that a first going we on price. into we've can of collect And have get way moving by majority $XX. affordable which that us. reason uh, prescriptions lot that has the zero, with the we is We physicians not seen we on to found important are by did covered -- -- that prescribing, was one we've two we of ensuring things. done plan from program, go the and impact get significant patients $XX, scripts. is work a $XX are those at physicians but it the product that very physician does and Number move was a for acceptable

referenced polyp then CF roughly the we've that volume. that about third reasonably have conditions the was patients, of average nasal The those with What to that don't you sell historically your Keith second actually allergy, don't about we your where patient try because $XX prescription possibility done revenue with businesses people prior in businesses, that the of the I that's in anything will, so versus about unchanged. change relative allergy to other is some net has if without us, patients if to question for it's to and good are at the chronic where Gary, polyps profitable prescriptions. capture And patients thing behind inflammation question. contributing per and specifically a not of another the on improvement years. in know Specific to talked with sort nose. our haven't assistance third, our But a balance

pharmacy to Vic, Before anything we to the specialty questions, go add?

Victor Clavelli

that that's polyps summary. a diagnosed. to of key allergy chronic I opportunity Peter. patients thing No, the when only say think Maybe nice be a is office, it the ultimately nasal the into and the I'll that's for drives part that key sinusitis is business

So, we growth do important. that see

Peter Miller

obviously amplify, caused and pharmacy patient good flow good built. see XHANCE. potential -- network the about for creates that feel get -- allergies Gary, we patients to the that are we Relative the to by of that new as we are you appropriate exacerbations patients think, really specialty seasonal know that's that with Just sort I network,

providers. couple a national have of We

revenue We to necessarily four We providers, to able have per additional year put anything, anything, part going any been we maybe reasonably anything, of We certainly regional improving trends, revenue Keith per if as if specialty be we've with some net it's expect to relative Gary, don't it's average year. are in If guided, per prescription that see that think the for tailwind the consistent we area. prescription. look that And prescriptions contributes patient per pressure per business to favorable this our it, generate. we on the segment. going year, where net as in having we now, think some future out, to

Gary Nachman

great. That's

Thanks lot. Okay. a

Operator

And question Cowen from our Georgi from and comes line Yordanov Company. of the next

line open. Your is

Georgi Yordanov

taking you my progress. all questions. much Thank guys. Hey, for Congratulations on so the

guess, scripts? I So, physicians. could high high maybe them their different the first, from I just of talk the Is month, volume specific and prescribing XHANCE have share differentiates hoping prescribers? -- did -- he about above script what of for about if Are specialty, are anything was XX practices? those for rest there of or example, their those What you what total IMS your out

Peter Miller

writing? one people people They when brings bit it business efficacy they I'll be that think those it are just I'll more, believe Part writing not and in and we should things. you patients patients. I segment, doctors, happening they've certainly their significant about than is why writing maybe obviously segment. why what in it an the to Georgi understand it do they the continue this is commentary. because pass say, work that intranasal the is are in And reason, two that and Vic, materially believer say of why to ask Number believer a seen for little product efficacy I In start, to I are own for of and is different optimistic you say. spray have value very

next they easy know second But said I think over affordable. And and anything, these it's good for And we've to coverage, we that receive thing that we the I very XX%. has from fact, but physicians is do that. very with thing improve potential have approaching in say, know to point previously, market that six patients XX access coverage of it second prescription is find patients. this nationally cost. months. affordable XHANCE And commercial it they The if write the no out-of-pocket And think the XX% to

have good we have good that. efficacy -- we we know So

access. good have We

We have good affordability.

-- of certain to really work and does our it business challenged, not opportunity -- grow challenge has is -- we opportunity, it's that group get call what it's well product that exceptionally patients. it's is Our also the it but great And a next this affordable to accessible. dabblers understand in

you don't So, to if anything. want Vic, add know I

Victor Clavelli

early peers that attitudinally, leverage fact, see are And other to I an quick that begin we as these in these group. to aren't the early adopters just technologies. community influence mean, at a them believers adopting new to adopter classic frankly are in just opportunity

Peter Miller

specific allergy. a a type. will certain They certain geography. specific are are Georgi, not say, everywhere. in that not They're prescribing to They in are to They're I ENT. too, they

And of the get group, The have we as greater primary XX% us in again by they over to confidence grow the this said, business even way, United States, you into share. the which share, ability literally to care. all a than to are or the Someone have gives

higher doctors, high XX%. bit these by very have way, of than good shares, the Some

Georgi Yordanov

and current actually be profitability Got the you given then, profitability not to to do cash Thank No, incredibly in breakeven? on seeing, helpful. and sure sufficient this. hand comment believe I'm if this we're pickup would to the get you. going and it. that is you the are And you But to improved recovery prescriptions

Peter Miller

Keith, I'll you that. take let

Keith Goldan

on is XX Yeah. year months ended in the ended is sufficient guidance million. that, to that that cash us cash we've we the given stated on $XXX get out. Georgi, with the hand as million, Q, only $XXX the the We quarter

cash cash feel if traditionally, XXXX we XQ pretty always highest and been our position. look burn quarter. has good the So over back XXXX, about you

high of So, throughout have as XHANCE the profit quarter, in to grow product contribution. terms margin we the in continue very mid-XXs gross we a

to So, profit continue that gross the offset will cash contribution burn.

growth of of So, we're just completion Peter and made in XHANCE as to his this year CS excited the focus, trials. our remarks, the on

Georgi Yordanov

much. you Thank so

Operator

line our from David question Jefferies. And Steinberg of the next from comes

is line Your open.

Ed Chung

actually for on Dave. Ed Hi, Chung here. questions A guys. couple It's of

get actually Let's also to update is to see, about was kaléo with who offices of the Can said, the you make many And when the improved -- having you come timing they with see office I physician on ability you believe into you talked those where doctors? calls. might into potential that -- before for office and making your calls? get was us that not as can -- to

Peter Miller

in I'll to with morning. and is appreciate can you chime Ed, predicting Again, us going Vic, start commentary. joining maybe you Thanks access the for be question, color hard. Obviously, and

look surveys a IQVIA future like This So, the still could by relying here of to and relative on understand environment currently. done is being reps what of we Ed, are offices but access. an that in to not terms in own we're our are lot what trying are estimate

volume So, XX% market significant we're challenged. patient access now, -- -- volume business being access about businesses, again, significantly substantially country, and to doctors unable right territory. of XX% of TRx in of we're in down the real parts the gives what any many And and to TRx being challenges to offices growing encouragement volume, new both our us against really prescription pretty volume

allowing number done in that view our allowing to with work going prepared certain survey still in for latest improved not substantial very our -- I access, in It's categories physicians ways been face-to-face quarter that have the is done sales change. fourth why So, want work the some some There's a IQVIA. not our that but was March. that's in of encouraging any with physicians of survey substantially interactions by in XQ groups, year, improvement. market two see one of a this of this way, said an expectation June, that the has as night group there, managers. talk other to roughly was hundred to continued one physician the in by the in about think that across access their up in is I Vic, and not a add kaléo. we take to groups, open expect doctors N to we We're representatives, to two did access territory big anything

Victor Clavelli

Yeah. us the opportunity I flow say see normalize an somewhat. physicians them the vaccines of would into spreading that they back as pharmaceutical their the companies availability are offices the basically telling and vaccines the of of for to

invest reach also We channels capabilities to them continue solutions to continue our find and we in well. that to promotion so non-personal strengthen other in as

there confidence growing. our is So

Peter Miller

On current you jump -- here. across But and done in in kaléo -- Vic, environment. can the actually nice kaléo job has a

reasonably, face-to-face back calls. industry, out active is kaléo, out face-to-face we they're line, kaléo to substantial companies, And way, and number were like XQ, was of call, about of pharmaceutical say they're majority out the back getting but on So, the in last of now the terms companies many talking by is the Vic probably with the making think, typical in of the pharmaceutical detailing. fair now in of very I

able Vic, they seen and physicians as real impact of But improves, again, significant -- into not hopeful quarter, yet. you the as if And remain they're have access As to we get the you they know quarter, the first -- again, anything benefit. we bring that can have yet add. through out more the ending second really

Victor Clavelli

to physicians impact team see and between do We've those team, our had collaboration calls. great and able they where are we from their make

really confident. So, we're

Ed Chung

And zero look with were also the of just Obviously, that. the pandemic by going dampened extension for on if the you on. copay selling again. the prices last your Thanks year, average at ASPs

should this XXXX, basis? perhaps the sequential pattern look we the saw what like in So on a rest of more little year, a in

Peter Miller

right, that's Ed. think We

Keith. Sorry,

Keith Goldan

thing. to Yeah. going say same was I No, the

last the -- guidance year we expect expect XXX. is out for there ended we We north year, have the we to that up the where be full

or program pandemic said, could cadence we them repeated As you until net that year. a response that program to this program we assist expect we Would for and by this impacted being prescript get the noted that be for similar which average bridge patients negatively that XXXX, was the put there was they out adversely to prospects you we're revenue year, to optimistic not surgery. would the as for ran,

Ed Chung

so Appreciate Thanks Thanks. much. color. the

Operator

next our of Brandon the Folkes question comes Fitzgerald. from Cantor And line from

Your line is open.

Brandon Folkes

my taking for Thanks Hi. question.

help the maybe on maybe get price about the just versus net going is driven then versus just out, while that XQ script, So, channel the it's had much during quarter? guidance months cash script price secondly, year-end, you can on both XX an And clarification us script then on per early that impact you a how does you. the the the Can of of any extends staying your runway achieving that if end help be price at the by think Thank and readout? through question, just script? And net guidance. growth net you contextualize to sort us this maybe per on inventory was in

Peter Miller

start? will I Keith, you in. can chime

Keith Goldan

sausage-making. with to our whole our net numerator that is the expect can respect the net is I ex-factory revenue I to by revenue is comments, driven which said in you which for sales, gross as tell and average we So, in what net sales realize period, per for the equation to Brandon, it's adjusted script, the my -- gross

average as channel, affect revenue in numerator, a lower our see in So, we net prescription, absolutely. always in we channel equalizes. the destocking that QX, because a does saw If which we adversely which expect you have QX, to see the

both Just buy-in and comes quarter year expect to our big would back, destocking in the of which well beginning price to year. see, a three, is there the we traditional because ahead continue is in of the the as from to see typically now the go expected the as every wholesalers reason first that increase, an PPN of

impacts Optinose the negatively it's to a quarter. quarter. we destocking that -- XX I typically we but stocking cadence, in full any is the -- see QX or occur and year -- we occur months first in, then and because in XX and unique months by out, over we don't typically basis, it's December, in And quarter So, the on first this results, stretch, fourth destock stocking the in January, but think see

year full So, equalizes on a basis.

revenue So, the definitely the average guiding per one the the quarter leads the sorry And quarter. -- in in and With in fourth is the to to net -- I'll say will that quarter. adversely we that unit prescript that revenue the we first net respect quarter average it factors this typically lower than is that of to in in I'm first impacts us primarily be -- growth, by it prescription the it's to us. and But I by it's turn driven expect over year Peter. see fourth growth. see would start is, typically prescription growth

in do While for expect we the per to meaning to see units, see the is period-over-period, certainly growth average year-over-year in we full TRx growth expect the year. prescription, in net revenue

Peter Miller

to average talked would just than like was is add, about XXXX things XXXX. think previously, I we in be the we've prescription Brandon, mean, that the revenue per I is net going Yeah. it sort that more of

to So, XXX we we the XXX we XXX prior. year -- were then last XXX were closer about last and were at year, in year,

new is math, We potential first prescription year, against prospects. do the obviously if we which And really growth. and actually growth good growth price think So, good had We we quarter the balance you non-pandemic even last prescriptions year. the can a was about year-over-year. on benefit feel grew of the do

in in us of and significant on to offices. new in XQ happened what because XQ patient prescriptions physician recall our no XQ, had volumes impact we You'll

balance are going year-over-year we very you when think So, the be for year, soft against impact the a about from of a base to pandemic up a standpoint.

a against in year XXXX was unaffected reminder, by a As XXXX, of majority fully pandemic pandemic -- XX% a pandemic. in that the versus base a year

and revenue growth very prospects So, good we million supports that feel for. about $XX our

Keith Goldan

need auditors to going our a guidance, with in -- that we period. bases isn't provide the review, put basically this your compliance with to much which the guidance Brandon, respect the cash, concern did Q, around they in clean it's so question

We and commercially with -- we said our XX to results, cash period. obligations we is that months ongoing So, debt R&D. March company its our reported the thing last had year-end the when that's to call, same At respect meet the right? minimum, the report

For said we same this period. least XX the at thing months,

on the I said we had we reporting first half else. would in We data guidance rely of for the So, less year. the that second expect trial of next -- we completion than believe expect anything I said

answers So, hopefully your question. that

Operator

Markets. Capital of next And comes question from RBC the your Busby from line Daniel

line open. Your is

Daniel Busby

everyone. by XXXX. of is the first Good first guided My only trial it of line months a readout the top was question chronic couple on to end trials, ago the sinusitis morning, for you that a

level you'll Now normal the seasonality what's But do that data year, conduct the of Second, XXXX. And a to also, your be you impetus demand the quarter rest back on expect is play was out and for of at expected the to over role come of within all overall to in XHANCE? interim analysis? new particular any confidence deliver data first that there able the timelines? look we as

Peter Miller

take the couple. Ramy, first you

Ramy Mahmoud

Sure.

of you're during couple as impact the patients or that sort coming different really a reason of year the of and on patients centers the which were have in. number moving excellent aware, where of had European of come Canadian in either So, particularly vaccine primary we for And earlier sites to And for the been a delayed they even out during the impacted. just the expected the to or to in -- weeks other countries particularly uptake permitted pandemic. out I'm affected to sure sites. locally were months has that of entice ability the effect few were it's in primarily earlier, that couldn't impacted had And of enrollment predicted the months the trial this of that factors was impact in it countries some had ways be that we part previously different Europe, or a There's in, a countries. even we of ago. noted have especially prolonged and enrollment They seen expecting completion turned some

pretty slowed have continued my comments, So, I to But the based be enrolled be remain of we'll noted and number And high far in a patients in we earlier window little the on down as bit. we complete this record projecting. to to that things just that that so have track time. currently throughout enroll has confidence the able we're that

Peter Miller

Interim analysis, Ramy.

Ramy Mahmoud

Yeah. The was the interim interim analysis, Daniel, I don't know preplanned. if but you can analysis recall this

the not trial. new that occurred that something or we events it's So, finding some because in in new of engaged

So, planned limited for In evaluate data. it a to that's based to assumptions had because we make were variants analysis prior variant. the part was on

reinforces the needed our size just made we've right -- this level that about the to the assumptions be this trial. in So comfort sample that

of occurring be trial. that's reaction shouldn't to events a as conduct this interpreted the So, something during some

Peter Miller

volume And guidance market Dan, the of current get market back as But last rest, and from a think vaccination and half But think I We of we reasonably to market this trends $XX We on said season the currently that's year. if the looking we in we'll of in a a in relative what million of are the expect back it did to an to crystal our impact think patient revenue pandemic regarding call. we either we on there our on ball. of not seasonality, do ability, normalized we year half environment to the rates be obviously normalization reasonable back expect relates the the at did you all somewhat the normalization, that in And the is physicians. thinking. standpoint, that environment access related. XQ will, or allergy XQ to expect

Daniel Busby

ask to something I business Could just color. that is thinking sinusitis provide follow-up. one an hand want And data before around latest you'll for earnest? Great. pursuing you That's helpful chronic have in If quick development? your could

Peter Miller

Dan, say And to is physicians. not addition going fact, do done their to put doing. in is that chronic get is will to do Right refer on allergy to XHANCE intranasal much an relief going pretty think what a in sinusitis wait of wonderful care patient spray, INS. or and before significant option care arguably the in CS physician, consensus I have biologics, partners. that's a patient. ENT. fits XHANCE we're the primary that sinusitis, value the they're we've We And XX% not ENT fails expert recommending, now, they deployment not be emerging, relief armamentarium going with primary only with on. begin -- care And after who an with a of really potential with in every in from care primary or substantial. the indication allergist the work data the directly an to before which surgery, the sinusitis patient is suggesting potential to real for in conversations those primary patients something And considered are this physician an of to That's experts The what chronic get primary docs today paradigm. to that terms care into chronic

begin And on that, not is result, partnering. as to we're wait to discussions do it And with a we as result educate opportunity. for So, primary we going right to have XHANCE. care in way -- folks the -- very we we're via them have the about data very excited to the to for opportunity think are of a

Daniel Busby

Thanks, Great. Peter.

Ramy Mahmoud

Thanks, Dan.

Peter Miller

Dan. Thanks,

Operator

of from the Your line Amsellem next comes David from Sandler. question Piper

Your line is open.

David Amsellem

Thanks. Hi.

sales maybe for priority another then One lastly, And for care? big the about of line that cycle you an And where like think down the thought general know the a we development should life the road and you there? there's But presence. your is, have -- you business your practitioner that here do that's So, extensions number ask a on ENT/allergist variation So, leverage something maybe a anti-histamine, an about where to to get couple product combining the you is also you management how one. azelastine, for an instance? asset indication. how CS two I'll I the do mean, contemplate for just with question a question/topic. of just think presence? would it talked guess XHANCE, is, I instance, Thanks. some about of to add questions. adjacency into product, could I partnering number then process latest around is corticosteroid you wanted primary

Peter Miller

and business can we're a Yeah, getting are getting in allergy ENT clear to in. others it's CS also and David. and not leverage to I of jump growing crystal I'll trial. -- and mean, think an another priority, Ramy our that our asset presence, immediate XHANCE start right relative now, and on completing Vic But the priorities prioritization I our

time, infrastructure we than a but find what if call that really a XHANCE not the historically get that even company, ways sizeable I priority, to I'm get the sales developed. that business in to, in that greater across relationships team, our point especially an accomplished, leverage, as sense at it we have this So, said immediate a make we leverage and segment still just it's feel they've I way ENT proud doesn't and you have allergy Because of but point very the we've not greater both build, headquarters to have the infrastructure. have

believe know this -- your to higher term want XX it's in we months, know, on priority, priority. something million is but you double that I becomes you number a that want care, real primary opportunity a roughly allergy. more question absolutely near next So, to primary certainly it access treated being to get patients I the that is treated much as I a in care But that's not primary remind And the David. to than in care by being patients reminder, X to of XX,XXX are the ENT the providers. Relative

good not and in chronic I as co-promoting, no opportunity patients really very aren't competition that if there's these for a described a really rhinosinusitis ago, And the substantial. you minute is -- choices there's market, So, will. from there

a already physician with still with in to right space know an find opportunity. that in care that thing care right presence. is There will. cross-match, chronic primary with who to Yes, we the in continue in it standpoint, the that care we Will think So, primary do was we that offices, efficiency a we one primary companies we of several to today? are are are really expand officer's to folks some maximize the have great and already some way But to is relative significant patients rhinosinusitis. there And think we is partnering. Are from through the we substantial are.

that look talk think to through said will, the your maximize -- exhalation some device, I'll But David, -- the that business with -- things the Ramy, right smaller way delivery the delivery. within Ramy an exhalation potential looking we at can cycle, is most let describe to So, although, having instances, on focus you opportunities life will of on maybe cycle care. is expand our sort adjacencies. you thoughts about Relative we in if life let primary for to largely I'll we some but in part. system Having there, partnering in in-license

Ramy Mahmoud

Yeah. Thanks for the question, David.

about are trials. things, you that just and right are calling revenue kind and product physician backing is. when going right, for little to our and be So, we're up differentiated, sinusitis to said, a of what looking last be we'll completing changing but is we're as currently And other When useful XHANCE the standard is the that products on. the the and mentioned on meaningfully chronic year of time focus kind in growing Peter care now bit, time which the in the audience that right, of open-minded products is

healthcare physician which something audience still nasal product do going delivery, the and So, with calling is of to be nose, diseases benefit to meaningful, has brings is a it's could system. to clinically patients of or the it real be it product nasal but an conceivably or of system other for or relevant that to nothing need which delivery in be the delivery treatment But on. sort and a could to exhalation very

Peter Miller

Okay.

questions, it terms that's think operators. in I of

us year. call. joining there I'd to if the to this we'll like questions, continue look further forward throughout everybody for and any aren't conclude morning updates we thank So, the

Operator

for call. today's you conference Thank you, Thank participating. this and all sir. Ladies gentlemen, concludes

now You disconnect. may

OptiNose (OPTN) 9 May 212021 Q1 Earnings call transcript