OPTN - Earnings call transcript Q3 2021

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Jonathan Neely

Good morning, and thank you for joining us today as we review OptiNose’s third quarter 2021 performance and our plans for the remainder of the year. I’m joined today by our CEO, Peter Miller; our President and Chief Operating Officer, Ramy Mahmoud; and our CFO, Keith Goldan. The slides that will be presented on this call can be viewed on our website, optinose.com, in the Investors section.

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

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

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

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

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

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

Peter Miller

today. you Thanks, Jonathan. Good us morning, appreciate everybody. joining We

We plan have comprehensive in night this full a regarding and announced and important that financial year XXXX we expectations morning. commercial share quarter, profile updated our third last information address for our to to and clinical progress our

first the However, as opportunities in those could first, our appreciate today providing I’d have create of the FDA-approved longer-term sinusitis and the to: XHANCE we imperative today; of believe because an first by like treatment business XXXX business potential half ever significant perspectives magnitude of for how to our the regarding for milestones start of clinical and opportunities. that I the understand new with approval drug second, significant create chronic people our

audience are annually. growth by attractive. brand, XXXX an market up its created potential of net We believe target for and million diagnosed year polyps specialist patients COVID-XX is we today, X it audience, revenue business to despite including to of of In nasal a share challenges factors believe compared continue $XX XHANCE to current indication treated for largely to to or ENT an a million are for allergy will year full environment, promote polyps $XX approximately physicians. there XX% to And exists we produce and target to million our Turning full be to Nasal X. Today, as our continuing XX% indication the slide expected is XHANCE leading XXXX. that our physician substantial continues support in growth, headroom in growth to share. for preference which

is of drive for paradigm recognition nasal role to in current early a logical physician of polyps. our with patients audience there play and continue Our XHANCE efforts care target XHANCE step important adoption can in the

are in than for polyps. opportunity. the produce audience nasal a patients strong growth leading among Promotionally, preference XHANCE have our treating chronic continue for to each new for developing will successful X. growth, treatment Turning opportunities slide business If the achieving drug sinusitis, significantly we with our target XHANCE for succeeded which have FDA-approved of share is physician current in first we as multiple larger to market and

market not Although nasal to by limit promote There XHANCE we sinusitis, off-label use abundant is polyps. its growth. physicians already is this payers coverage and are strong permitted used headroom chronic some for to indication, some for in support continued to share

without number triple relationships, patients Notably, have sales physician current the opportunity and without our deployment substantial potential future dynamics force these with promote chronic new sinusitis of changing or the highlight whom current we of actively size for to a indication XHANCE. However, CS indication. a would disrupting

specialty that of physician we are an polyps patients specialty need to we to indication approximately specialist In demands physician for in that by of are indication physicians value have expanded to will the label diagnosed approximately population. preference building. diagnose positive is polyps business nasal within for in chronic polyps year. universe, based an chronic treated us preference polyps, larger where chronic medical to being physician data, OptiNose first-in-class is preference what this in the a the that than satisfy is in our prescribing payers more the XHANCE factor strong enable nasal physicians. insurance there our the are is development the only sinusitis. to also treated sinusitis or physicians diagnose and business important with want deeper. are open our label, share who would the number on It physicians expanded being XHANCE patients, bit to and population total share can to much the pursue the X they promote nasal indicated importantly a coverage on for a ENT expansion for not million patients match The us for new polyp In ask the electronic infrastructure Based patient That Successful either each sales leading also record who just on the X Today, is readily who environment potential on has approval and enable target specialty we we promotion. attest established experience It of drug allergy Going a which nasal treated for believe many we successfully nasal for extend as for future and greatly have nasal payers. million label their physicians. sinusitis is the polyps. by have some to or opportunity insurance CS current established

X. Turning to slide

be and primary chronic than believe that continue lapsed to a this steroid on X million In million believe is a that match X an other million there to currently have care potential primary care. be both that few options and for to the themselves a are for with reach are is an found targets. promotion are receptive have of partnering. These efficiently expand we growth value X in XHANCE incremental believe could in particularly are organizations high partners in these up are physicians current potential million value physicians infrastructure targets. could patients treated has XX,XXX to nasal We would with efforts that patients to care, that and where analyze additional That cross million million could generic today, with Further, that XX We symptoms there are through primary sales partners treated for the sales our have currently there has overlap XX,XXX created primary a high XHANCE care patients. treatment. activated. multiple audience there to XX setting opportunity to that physician OptiNose partners specialty referral primary because promotional sinusitis major deployment addition already business, patients substantial as who X of that create potential there More we of the specifically, patients with being care current

lapsed for through primary currently to by care sinusitis to but sinusitis who who seeking to could chronic I XX indication In but million the primary patients the know patients million symptoms, X by in regular treated addition alluded care, care novel direct-to-consumer these A a dissatisfied they chronic have from are to activation created nasal patients a promotion. X physician symptoms. of believed have opportunity approximately enable partner million stopped

Turning X. slide to

are line reasons from sinusitis trials the we near the One our two and ReOpenX term. results are in CS ReOpenX, pivotal highlighting today the top is expected chronic very of

when announce In announce available XXXX be fact, we before our next that top to our from line call is and quarter year results it possible full ReOpenX will fourth earnings.

us, the behind quarter XXXX of clinical for With ReOpenX team both and and quarter trials of have successful XXXX. the line recruitment in ReOpenX in focusing top phase from on the is results first second plans now our both of to trials completion

from to Turning to performance, key With X. today’s I four like would QX our presentation. respect XXXX highlight slide takeaways to

continuing growth year-over-year growth rates. physician XXXX. manager limit will I’d First, believe are our adjusting consistent target execution the season why otherwise the restrictions October that full trends, in fall did would sales notably, why is for environment revenue, volume – meaningfully to Most on is be particularly about to we otherwise we we continued not prescriber Despite that strong achieving. Across guidance the and note physician believe third board to September double-digit territory the segment, our is are strong delivered limit drove commercial have of continuing Keith later. we That offices. That pandemic-related XXXX. emerge access growth that like prescriptions today of have quarter and anticipated. XHANCE top as growth, in that would to strong year more

of Second, factors will XHANCE. that continued believe support there growth we are

a in this physician The past has published experts target an For with still flow are sales improved ENT by mentioned, those conditions visits just year pre-pandemic this over as this in step recognition the nasal I physician major offices discussions number important iFR for future audience. drivers of our access role to there physician paradigm but Increased a a norms. our example, patients access by can representative as and consensus prominently is specialty XXXX, XHANCE have of potential patient play and diagnostic featured fall panel I to increasing our referred audience improved target growth. and of journal care algorithm Market in June below polyps. for to allergy remain the earlier, in offices,

with believe we respect physician access environment both is those patient physician future and volumes physicians. slowly not the our to offices to to Although with will improve clear, into specialty our representatives respect entirely

seen this beneficial high future response promotional the Given historical we driving believe in we could XHANCE, be growth. with have

support Another number of the example to believe sold program. potential will our for of assistance to prescriptions that fact refinements is because in year per we make continue co-pay of future growth the the we improvement average

for guidance financial year our XXXX. adjusting are we Third, full

previously with effects growth XX%. full rate to implied net changes XX% range financial than influences. on Keith business XHANCE year. both more objective year we new that and remains was guidance And lower robust, by organization key reflect range. trials mitigate for have the current getting ranging ongoing the including business in While income new operating pandemic-related for are changes fourth, the the The of making Again, this revenue conditions enrolled a sinusitis our from expected, cash will later revenues year-over-year the chronic presentation,

successfully top QX for on data track completed and that highlighted are we and As objective line earlier, QX XXXX. in

to the rates, tend Covered patients of has was have our I XX% which and with We were XXXX increased quarter improvement slide. time next growth as assistance new has of XXXX, XX,XXX changes to In per we XXXX, the This XHANCE XHANCE, prescriptions. we’ve co-pay highlights in prescriptions to growth well. increasing strength of patients proportion prescriptions remain a X% This also there increased improved We the pleased while prescriptions, the XX,XXX. new the to a market X% prescriptions, only addition third XX% relative the the improved in of is over due the us increased same important number our of higher average total new third also refill program. quality which over in of a period. but third to will Turning The represents prescriptions seeing performance that are is on What the only XHANCE first the and XXXX, environment prescription. covered briefly quarter to third period. of approximately had for for approximately number to realize, of quarter signs XX. quarter the XXXX quarter benefit take compared in over same some this year-over-year slide the new third increase filling on touch in market there strong revenue

market Turning to of third third XXXX. the XX. slide X% in share to increased in quarter X.X% XXXX from XHANCE of quarter

focused is continuing and market XHANCE quarter from and on filled the physicians grow who holding volumes Breadth market prescriptions numbers third as on our to depth measured potentially patients we by total share. of to to filling number in physicians, XXXX physician have prescribing and XXXX for the writing are the As third well. increased of grow respectively, of prescriptions future, quarter

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

number XXXX XXXX the filled XHANCE quarter more third quarter prescriptions physicians quarter Regarding their with number grown even over patients X,XXX but results by by XX call CFO, closing few more with our comments regarding now increasing a that the will regarding quarter provide turn of this for XXXX XX% has faster I segment. some the who third I’ll Keith physicians In to depth, moments, first guidance. than our Goldan, perspectives than had remarks, corporate in to from in and third

Keith Goldan

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

Turning XX. to slide

revenue stands net increase the to ended As an of the OptiNose million of quarter we of revenue XHANCE Year-to-date XXXX. compared compared XX, $XX.X XHANCE to third of XXXX. net at $XX.X this recognized XX% XX% XXXX quarter, reported, months million, an increase September nine third

driven the $XXX revenue part rate net average of on for and ongoing prescription in third performance, also absence I’ll cover plans a while as forward. effect, co-pay program Based of to and changes the $XXX, focus believe our that continue year was they XX, commercially to to XX% from prescription believe our of to prescriptions increase the for Year-to-date, long-term measure The quarter preferred the prescription is is XX. also slide in quarter to directly for by program the reducing do the revenue XX% of had of The purchased to in XXXX increase data year-over-year pharmacy the to for third going to prescription the per the XXXX evaluating has patients assistance per per available that we a per going this important revenue changes months increase year-to-date per rate on earlier our not of average to program. are so we by the We patients data are XXXX. second year-to-date XX% ended XHANCE Turning network, available the compared to benefits forward prescription targeted co-pay of prescription by contributed and XHANCE third growth an in revenue large and XXXX. an and $XXX quarters that increase. intended better from is reflects onetime received of nine compared revenue was increase year XXXX third-parties net prescription We We $XXX this on revenue believe in insured assistance plans. in September assist covered expect moment. change growth filled and sustaining the

XX. slide to Turning

territory we for guidance We The are of noted, cash of quarters on influenced the offices totality as use XHANCE and our changing for Peter access manager by of respect patient growth clinical revenues, We into are as net negatively similar the restrictions continuing significant remain on below readouts to prepare notably be result prescription the two limitations we of XXXX. financial will pandemic changes most physician full flows, the and impact XXXX. with data the in COVID-XX XXXX year first, to norms. in trial resulting and which pre-pandemic first through

will a the and Although a on that for note for negative driver XXXX. the XXXX impact today, improvement Based we in revenue the these be growth. experienced of quarter half will market between net million fourth expect XHANCE to I XX% $XX rate is that promotional we’ve areas potential date, by now to million implied year second full year-over-year is range growth of $XX environment future XX%. to

XXXX. net full revenue for XXXX We expected prescription increasing full year year to to $XXX. exceed we with per Second, exceed expect expectations now per respect prescription, net are Previously, we $XXX. XHANCE to revenue our XHANCE

As changes profitable sustainably our having co-pay discussed, the assistance we prescription we in the are confident intended that made to driving growth. effects more are

stock-based for XXXX, compensation, million to Finally, to to operating with million. primarily therefore of which The compensation. and total in expected expect million, Total combined lower other result year the be administrative full are from third-party lower to expenses $XXX approximately $X in now expenses, expected of operating excluding in volume-based operating expenses. of range the in full expected be million general $XX reductions to be $XXX a decrease we $XXX year stock-based million million expenses is costs, is $XXX range

that rates promotion prior as are cash that and to steps be strong XHANCE we’ll offering, proceeds. debt. business, our shares of outstanding business common we the very about of XXXX growth as both different taking experienced sales speaking, sheet in product add net ability XXXX pandemic sale under the our we to offering our We’ve COVID-XX pricing Terms trailing were, of sinusitis and chronic which XX. slide in of to and to the XX-month revise minimum the well balance Turning terms to and conditions assumptions closing, our debt an recruit and affected OptiNose upon will with associated announced reduced. Upon Phase XHANCE our covenants $XX trials. closing million the This produce outstanding our the gross of the of morning, IIb the broadly

You the can new covenants see slide. the on

$XX million the $XX XX-month ended Ramy March XXXX. quarters the the turn and a $XX to XXXX. reductions the modification changes December extension closing for $XX of effective offering, XXXX. five for some for period alone our XX, million of XX, discuss next million XXXX million $XXX.XX to from in the million from from And the interest-only Also to For the from to September December XX-month ended programs. the development for to include period reference, nine-month over XX-month allow period ended $XX December million this now XXXX, period over XX, call will upon debt to the I’ll

Ramy Mahmoud

Thank you, Keith.

Turning to XX. slide

investigators to XXXX, research the the FDA-approved in in in pivotal unique sinusitis. from results for respectively. With and chronic made recruiting and like Regarding sinusitis important of deliver the we ever to trial, ReOpenX efforts, the Study top this all, ReOpenX are chronic thank track which treatment completed or trials. that I’d both comprise I’d line participating the both on face two possible we in we to develop partners to medicine and XXXX patients second thank second They October, complete program, our recruitment for firmly to of our share by I’d our challenges first first registration like recruitment the as like first quarters participating it in are trials, that Most the trials, particularly seek of of complete other clinical our the the successfully pandemic. ReOpenX. their to team, for created for

to XXXX performed I’d or third actual the quarter In we performed similarly with ReOpenX Second, interim compare similar available. analysis the whom for like the a the Study to in design. assumed to remind we ReOpenX. from this assumptions co-primary analyses sample variance in data for that were the were trial reported observed of XXXX you performed having observed previously to the blinded been during initial preplanned blinded that variance interim variants had endpoints or in data patients from analyses variance whether on calculations the were assess analyses These our priority full Study size intended trial. The consistent year, was

in availability for result of for the For by isn’t being by sample other is score one-third projected to the projected observed data lower variance volume composite average accounted assumed size the endpoints patients both was And data of available study XX initial for that the weeks. available complete had variance CT half complete primarily captured for data endpoint for the the patients was was while approximately weeks, of the symptoms, at of was the purposes that study. pacification that than until been observed scan The one of nasal of four difference approximately the for to during study. The the percent are design. estimation

closing reduced power the analysis. remarks. call from for our statistical XXX Given now targeted Peter Peter? back this full XXXX result, originally I’ll size the maintaining XXX final to over for approximately patients to in turn sample trial while we

Peter Miller

Ramy. Thanks,

to and on Q&A. to Q&A, quarter Session completing XHANCE grow sinusitis our trials. pleased take XXXX to I’ll the call a moment Question-and-Answer for the we And moving we’re open progress reiterate like in you. third I’d that on continuing Before made overall, now laser-focused and chronic are Thank have to with

Operator

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

Gary Nachman

Hi, guys. Good morning.

year down your be based revised to XQ lower of of $XX at could million, the just on end guidance sequentially. $XX First, million full potentially it

I be with more, quarter fourth Rxs with specific more. drawdowns seasonally be consider net some Peter, up have So because a and Keith should couple prescription higher that sequentially. Then of or something I inventory would are thought also little the there revenue should just bit in a those that – per dynamics why we on

Peter Miller

Gary, to. growth quarter in. take fourth to Keith I let mean, we quarter have if about fourth about We And seen the we what then and I’ll you’ve into the the you range, that have prescription year. come last right let are December see play in start, XX% versus – we’re going of I’ll some now. how we midpoint jump in this year our But of that price talk growing do good business do I’ll trends, dynamics feel Keith

you it Keith, up. I’ll let So pick

Keith Goldan

I range at also addition Peter of the growth of year. just growth out range full the in the comment – kind year over the greater I’ll called And of than about to the XX% that midpoint midpoint Yeah. year-over-year. represented XX% full is

will be first that So the point.

was Gary, call to Second, we just we patients effect, of beginning are, And as every well as of out-of-pocket typically to, Max’s in that, high beginning what contribute year year more assistance. the because January, we their there the referring resets co-pay see – in Peter deductible what we where reset.

XXXX, has in and be as forward, see average per going will first been the quarter. we the probably the revenue lower a in prescription case So net case XXXX

we channel it. inventory when receive So have that we inventory at for anticipate the that that our what quarter, sell we to in that the as anticipated means fourth revalue that we value in expect we to and inventory we

causes that not a pricing optimized some effect. pressure every And again, That’s that’s effect. an December. So industry pharma

Peter Miller

QX, we net likely revenue believe of it sequentially is to prescription prescriptions So from more with decrease to respect QX. increase the by likely per and Gary, more saying are some to

Gary Nachman

and at maybe what’s of Okay. hampered, the this pandemic benefit come soon? keep is I as making detailing it And to It’s to out of to the you’re sort fully Kaleo expenses, you actually point? sales really back the cutting trying the you what Are when about level now are And intact any then hopefully from to changes talk how force we helping. of in-person guess, of the obviously That’s co-promote pandemic? out but extent coming helpful.

Peter Miller

numbers question, this. see access, Gary, Gary, to the to, pre-pandemic. for talked I have of hard for reps on it of about the the regions, on it’s exact only to XX% rep was some first what access us based In So relative you

there’s no same frankly. despite physician to in level change seeing that environment that just of doubt that see, all offices just not in anticipated, the access we So we’re we changes the real rep

So first that’s XX, of we’ve that to pre-pandemic Gary, was to our the agreement December Kaleo access with Q, released we expected to here that Relative agreed we this their just question. relative Kaleo, was access, The recovery and and offices. reps see to XXXX. terms issue the largely terminate mutually in effective relative to in of rep didn’t physician

sales So we is we’ve a terminate continues When response. very both The doctors, that of promotionally best we true. sensitive made we very good see to brand know calls we promotional make a decision that deployment have about benefit we on parties in of Relative thing be real our terms in the our very to that. to right feel it’s interest deployment, now.

to we relative if we reps. And benefit does improvement from changes improvement, no can So environment think see environment. our the that

Gary Nachman

I how could then studies. as as for And Ramy, the has confident, question, my guess, it pretty confident Okay. like two feel CS you you sounds enrollment gone be, last given

now front of you in that So are guys data. why raising equity

you. maybe sounds the the be that debt off. the of not more. timing it related Thank want it on but to covenants, We’re elaborate like that mean just a little far and I to bit I might

Keith Goldan

upon additional If financing. Pharmakon announced the I year. we nail we this The quarter said, and definitely of cash Keith. Yeah, the one. that hit could as pivotal think strengthens in into that amendment of balance sheet two I second But move head. the quarter closing our that on first this data you next morning take the is the was this events Gary, the contingent

Peter Miller

And or can success trials. Ramy of say but information likelihood about new in, of jump Gary, I’ll no the there’s success

relative this So as issue Pharmakon mentioned the said, the raise agreement. debt – was it largely to because of done, Keith Keith was

Gary Nachman

patients the just you I Ramy, had did you to But enroll heard of interim because analysis. you number I the said that lower make to sure that of that Okay. correctly, want

mean, I positive I signal. guess So, that’s a

Ramy Mahmoud

Yes.

we size information the that difference likelihood So – sample planned the in while really were maintaining originally the of we of estimated the the detect to power the able as said, new Peter treatment. have But estimated don’t trial. success lower fully to informs full

top it’s good do we that, we the produce trials line results that that’s just that what and were So that we time complete gives to able talked frames can confidence in the and about. us

Gary Nachman

guys. got Thanks, it. Okay,

Peter Miller

Thanks, Gary.

Keith Goldan

Gary. Thanks,

Operator

Our question next Amsellem from David Piper with comes Sandler.

David Amsellem

Hey, thanks.

So I a few. had just

have and touch a can – So Peter, wondering And trended? elaborate follow-ups. to of widespread that. plans how more then how patients then this, to And you I restricting polyps. patients talk the I grown? on if you could that missed apologize that And had can widespread has you were I you about that? of want I has mentioned on is couple currently between some become you just coverage with secondly, and the mix that, if that’s polyp Just and was nasal as footprint non-polyp XHANCE

Peter Miller

have XX% authorization while from we commercial very do Yes. to want pilot coverage. physicians we’ll do has it’s an majority for And a broader. to of that attestation, all if who we are prior have prioritizations roughly plans they’re the have in that clear, really insurance I payers it’s medical nasal number the not bunch some mentioned off-label. not the And it’s that’s with place be commercial don’t a promote on I physician by that What call, for you the nasal require polyps. not of I relative place, questions. the And a in patient payers, And that never the I’ll coverage, is David, insurance our as a our payers. say, some to reasonable but our And thanks, we’re seeing the know prescriptions finding David, limiting prior David, reasons good not you writing calls payers plans, all by be that, clear, want of we will, – situation restrictions,

the large have only in on these who with make nice I’ll So that of number there But is said indication. I it, that, nasal the reiterate the point X large a we and of physicians – David, patients because nasal it are reasonably And polyps. of are I’ll issues, we million roughly based nasal business the on polyp limiting script, current that are that There’s use diagnosed we believe not promoting polyps. this are market. of that payer a – groups are in

You get guys per that patient net four per about per XXX know year revenue patient. we prescriptions and

potential has nasal million of in highlight a it there, a $XXX but a So patient the value polyp product value not be issues. this the approved we of building year, issue would TAM mitigated would we’re significantly per if X relative an efficacy the patient business patients, it’s payer nice and does That’s only $XXX population, CS have very per Tano diagnosed CS. the but real to for is million strong only a first positive, you indication – message, the

turn and Regarding sort to today prescribing Ramy your David, to of I’ll on relative second to it indication is question, talk authentication. about where

Ramy Mahmoud

Right.

of our So is, course, on promotion all label. of

that, we And that an earlier capturing a product those of saw they sort will subset skepticism about and nasal there’s across some earliest said of distribution certain healthy on give who about is There’s used. to of slide, broadly. doctors, that polyp the product use a choose promotion, for the and diagnoses. a are you adopters, the that have know kind the data indication IQVIA We which distribution. with challenges Having to

physicians, way grow and larger don’t are for more larger to use feel the prescribing who they physicians and and to more that expand we about product. encountering product we same of number As of choose the breadth the the a

of impact beyond the constraint the population the evident of doctors more indication that. larger becomes in So by

prescribing proportions in evident as prescribers. by and become more shift we indication more have the more so And will

David Amsellem

question. just That’s may I And sneak then Okay. helpful. if in another

road Just non-polyp with know the I hypothetical had the But I cash the to in with us there. that commercial explained and help raise? on spend raise implications your this Can you – particularly the you successful, rationale, to you of potential ask about obviously just raise. talk wanted thought be of a ahead, studies you’re morning, extent there’s the organization. are this about sort to some about going the morning’s commercial co-promote. but the this How runway Obviously, understand you just thinking wake

Keith Goldan

of that. this take talk David, make couple is this Keith. morning. I’ll I’ll Yes, a to comments. Good

First, the is that we’re emphasize sales operating we our focused R&D, refer that that to business his last by consistent. is think the expenses, it’s over on relatively said three NT specialty our marketing, look in G&A, over comments, and earlier for I’ll you that that back today. appropriately the saying, something company that I’ll sized point Peter back if years, and allergy

of a off seeing that continue we’re range, additional this of in infrastructure every So midpoint pretty still environment growth significant fixed grow we’re XHANCE. an mentioned, we the leverage year over which Including some restrictions. Peter to year, year-over-year getting XX% just

expansion sinusitis. trial quarter August The second in commented over chronic this that we seeking our focused been conduct our have is for point have clinical into on indication I’ll Phase second on we earnings few the IIb make, years call and cost in XHANCE significant the that of past the

year. submit NDA. indication reduction on completing a that our XHANCE are see program P&L a could the to year, in fee writing, are trials we have the a R&D complete our the in a change go-forward obviously the the of on including we we costs We is PDUFA basis. portion get impatient We’ll behind ready the that the basis, one don’t as to medical the those half in of a first have go-forward second those half clinical costs for of guidance and CS in But such

provide hopefully, of your paints how answered question cash we’re in the specific way, So don’t about picture that thinking hopefully, roundabout it. guidance, but we I’ve a

David Amsellem

It does. guys. Thanks,

Peter Miller

Thanks, David.

Keith Goldan

David. Thanks,

Operator

from Steinberg with question next Jefferies. David comes The

David Steinberg

questions. A Good of Thanks. couple morning.

it in there seems you partnership. can’t of in GPs for lot assuming interest like was had And really thing were a a Or the guys algorithm words, but is, new you I guys this impact? the really still impact the optimistic coming talked about data any about secondly, the on could XHANCE. CS And having of you that the indication? securing that thought seeing you the then same accelerate see started call, partnership high is interest. The do Are the yet? Is it first utilization level last recall you exact good Has next? corporate

Peter Miller

in Relative the take frame. Dave, both to you June Nice this to was me published time those. are algorithm, I’ll Yeah, from the morning. hear of as it aware,

in and is of with reps because more of summer You bit normally little doctors doctors. know that of a difficult terms promotionally vacations

impact, And when get the that by stuff, no we to but is as over fall June to dissemination doctors. there’s seeing did So really to relative way, in take we’re geared and to broad We going up doubt, it’s David, time for some the the doctors of the summer. we algorithm.

pandemic. again, of are, the We because limited

broad footprint current no we the help nasal going that preference is way, could seen that that which our that really we audience market reach I have in as have. the research By interested real polyps. But gains had to be product grow in the patients in nice continue writing business is the us not physician something to anticipated. Our doubt with the we’ve for doctors of in share, it’s

but a translate prescribing, that good drive Relative while I remain to partnership, partnership. it. So continue to still document very ability about awareness very and bit of that to to feeling takes of little the a optimistic into

So nothing’s there. changed

XHANCE we mentioned call, against the that already have indication. I are prescribers deployment the high are to doctors there on believe the be companies that pharmaceutical of going with CS multiple As

I So yes, about very it. feel good

David, data. know that probably are You done this, typically post deals

data, feel good of the as I continue get to about to So to But we partner said, very are I relative anything very care. I possibility feel read if primary good into positive wouldn’t that we a in timing.

David Steinberg

financing an partnerships an often can stake upfront follow just back or equity more lower it’s to terms nondilutive end. upfront in gives And whether Typically, and or up.

did. is the the basically by mean equity vis-a-vis meaningful curious which raise just you dilution. So really XX%, you just shares I diluted

my of covenants about question face sort who demic diligence, you have the dilution? do to guess companies wouldn’t of XX% Or were the that I partnership a are it to out So had yet, you is, due data term? the near given the company not is basically better had some than for been if interested number you’ve P&L much that were in and tripped of

Peter Miller

clarify is want the mean, I comments dilution about that I a to first I’ll David, take third.

on shares roughly. issued million to I XX clear So that, be want

David, I going comment, to relative the discussions about to good believe we we feel with have agreement. covenants, the Pharmakon things as discussions the that So and than, now we not And we revenue partnering that productive potential mentioned that deal with with Keith covenants I’m on overall we other that played important debt was Pharmakon very to considered, revise to raise how partners. and said, into it how weighed the

You I that partnering considered make There’s imagine lot a pre to the a on trade-off you that can as there’s a potentially very be we said, goes into got front. confident that decision to a asset And relative data. I real encumbering feel partnership. the

thought I now, and the do think this rate was had we good feel we to about something prospects. long-term very we

David Steinberg

Isn’t it XX% million on shares, it? top XX of XX dilution, million

Peter Miller

pre. Yes, I’m on as opposed to I shares depends how denominator as the ultimately it. It thinking outstanding about ultimate sorry, being of are David. you it think was that

David Steinberg

Okay. Thanks.

Operator

Cacciatore Ken with next from The Cowen. comes question

Ken Cacciatore

really kind to choose even the question. Hey, good sales you company. It’s partner all tough did do and Along leverage offering spending. product of going And morning, be taking you to team. that if similar force for now. are single you to the Thanks equity lines,

understand be the partner, how stay Maybe would what to this data picking stand-alone the we’re then thought your staying point? review and leverage what and behind process a force? And sure at this would sales jumping strategic standalone. you to trying great degree gun. own the I’m upcoming to impetus Just not hopefully

better really, than someone We value point, but and maximizing getting you I else would product data, this have with this as can, hear yourselves? with as hands to to see shareholder want you about, talk at the into many be seemingly

Peter Miller

evaluate I negative a trial mean, we’re there’s the good we We scenario. this, data scenario way, way. mean scenario. chance expect, positive in a Ken. positive going data don’t that to in the I say reasonably of by a And by think I’ll

look We’ll the leverage have But at look at your Ken, to question of create I’ll to options, both that options. thing strategic at to and We’ll in other greater find what on going the options. is organization look way a clear is infrastructure. sales that force We’re all is we you. tell

big number salesforce say there lot be the primary footprint absolutely will that and I’ll in CS of care. our number opportunity of same who doctors with ENT-allergy opportunity the said, patients both the three I as that our are times by in the So that I it’s current being opens obviously, treated Obviously, just about of and up potential audience, talked stop a something considered.

Ken Cacciatore

Thanks so much.

Operator

I’m showing And at questions time. this further not any

Peter Miller

for call. morning. I I thank So, to and call questions? everybody this other questions, the next Any forward the to appreciate want look our joining we

Operator

and Ladies today’s presentation. gentlemen, conclude does this

now may disconnect, a day. wonderful have You and

OptiNose (OPTN) 16 Nov 212021 Q3 Earnings call transcript