OPTN - Earnings call 3 2023

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Operator

Good day, and thank you for standing by. Welcome to OptiNose Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Jonathan Neely, Vice President, Investor Relations, Business Development. Please go ahead, sir.

Jonathan Neely

you quarter us plans XXXX remainder the thank review as for and of third OptiNose's performance year. morning, for today joining we the Good and our CEO, our by today joined I'm Dr. Officer, and Mahmoud; our Commercial Ramy Paul Chief Spence. slides can viewed call the section. on on in be optinose.com that will website, The presented Investors this be our

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

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

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

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

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

Ramy Mahmoud

We this update. Thank everyone you and us for morning. us appreciate Jonathan, for you, thank to third you joining joining our quarter listening

presentation. in highlight key I'd to Slide X. X a more We'll today's moment, from on go but detail Starting into takeaways like

being potential coming reshape which by XXx the for than health providers Claims least more opportunity into months we the suggests frequently is our significance business care First, I'd believe front in of currently the CS like of that to polyps. and data future. diagnosed nasal years at in the us, to has reiterate

XHANCE indication is for approaching are in FDA the rapidly far drug our you review our the Second, supplemental submitted along window. and for date remind new target I'd like February the new We in FDA application that to in application December. action

And increase while indication organization opportunity most stabilize preparing successfully execute last, greatly efficiency created strategy. for continued our one the first on and adult the treatment XHANCE our to our That have approval by as niche our in of operating common seize has operating we to in medicine. strategy the been current to that diseases results XXXX revenue prescription comparatively the to outpatient of diagnosed potential demonstrate the

launch by a new Allergy us base profitable expanded efficient capabilities. focused build commercial existing potential net through and opportunity enable We can to an believe of ENT business the accessing greatly revenue

partnerships beyond In can in addition, approaches own currently we as we primary deployed. care actively largely the the other explore what in noted, accessing continue our to I incremental previously value commercial segment on create specialty to and we're where

order of an office part also offices can be is least nasal more range that believe that the published being Slide in to that labyrinth the it We prevalence with sinusitis believe the medical magnitude future difficult diagnosed a more diagnosis accentuates amenable associated the polyps relative perform of endoscopy. in XHANCE have because to number that with polyps. physicians. to chronic nasal the for part that broad the under ability the diagnosed a to CS not do diagnosed be potential indication claims We by has nasal new with being to further for visualize of to is This first patients data product of increase X. promoted and as are at by only Turning treatment patients the whom FDA-approved because can potential approval nasal indicate ten-fold of currently are

commercial largely outside promoting strong for opportunity facilitate and cared commercial future those our patients physicians patients with models, footprint, see large outreach specialists the also to diagnosis. The physicians to of we create new to of expanded of alternative exploring indication by would An would within universe who for growth and current patients numbers existing and reach, are actively patients. ways partnerships, other include commercial selling our

any supplemental Turning X. patients This treatment Slide the indication FDA accepted Previously, has the for announced that is to drug we agency chronic pursuit which XHANCE for indication drug the previously rhinosinusitis. novel of application in never a our of new an approved product. with

the review clinical of during action review, the date this and regulatory responsive being will FDA have do goal focused and on the is remaining through teams FDA to year. process. Our of The the weeks XX to so they continue December

to X. Slide Turning

the our reminder, efficiency and a effectiveness commercial XXXX. intended a space new of in chronic our third to stabilize XHANCE materially we improving trends in commercial resources. with reduced sinusitis specialty while polyps of necessary and very into the current both best demand objective been for business objective preserving launch that With in demand us are pleased This by As operational launch of in to reduced quarter XXXX. expense footprint prescription nasal XHANCE capabilities has and mind, XXXX our in successful set results up

we us attempt As XHANCE the to call, the the thoughtful number than created initially both to reduce and has stronger proportion overall unprofitable for to anticipated. take discussed opportunity action demand our first for of prescriptions. prescription was half the This of last in in we year

early have outcome, in produce the We which our actions are revenue resulting prescription per begun net improvement an in average that the evidence seeing data intended prescription. our to also is in

XHANCE, new quarter there compared XXXX. to Regarding were third demand. XX,XXX prescriptions quarter X% of prescription of In the of XXXX, for a decrease third approximately

XX,XXX were compared of of quarter to XXXX. for a total third there the proximately XXXX, third XHANCE decrease X% of addition, prescriptions in In quarter the

measure physician number by prescriptions. of patients We numbers the various breadth filling of of total who and prescribing estimation physicians depth have of XHANCE

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

of physicians XHANCE the number from the of than more in XX XXXX. X,XXX in the quarter third in XXXX decreased to depth, filled had who quarter their prescriptions the by patients Regarding of X,XXX third quarter,

like current note note the monthly methodology. XHANCE XXXX is reported and all this and data us directly pharmacy on network. today pharmacies quarter we're prescription third that will preferred showing based slide on I'd inventory data by third on to part parties the to data data reflects part in also XXXX from that of are our the I that estimated

For our reference, prior estimates methodology. on based we prior footnoted

financial call I'll the back now performance. over Jonathan turn to quarter discuss third to

Jonathan Neely

Thank you, Ramy.

XX. Slide to Turning

by the potential launch quarter results. capital XHANCE prioritize for for our FDA-approved encouraged by are financial as XXXX treatment resources to our sinusitis. We third strategy first of chronic ever are the They shaped drug

expenses we XXXX $XX.X million approximately in third As XXXX. third expenses reported This SG&A is million. plus decrease the of $XX.X $X OptiNose R&D quarter of of to million, quarter a a earlier, recognized compared XX%

of million. recognized OptiNose revenues net the revenue, third quarter to X% million $XX.X quarter a XXXX Regarding XHANCE of in net XXXX, of compared $XX.X revenue third decrease

to a future. now gradual Ramy first has the the referred earlier, have changes opportunity on and to in influence intend and the demand to profitability in make we strength positive the As half that us afforded

uncovered will co-pay assistance we example, increased of first and some in patient XXXX expect segment profitability. result the demand revised program in in commercial for we third an way half a within exchanging quarter, As our fourth the that strength

compared of inventory on and was $XXX that pharmacy the parties prescription of per to available on from our received we prescription data increase estimated average purchased directly network, data XXXX. from a quarter net X% quarter and prescription for the in $XXX, XXXX third third revenue XHANCE per third preferred revenue the estimated Based of

Overall, million months our first or of by of results XXXX. months months XX% when X X for intent to of reduced in operating We to our XXXX. reduce in use the $XX of XXXX first compared align the year the the continue X with expenses to first cash

expectations a the initial product XHANCE We while enable resources have to launch achieved the new that successful of and will and believe potential we this indication demand be also XXXX. sustaining for necessary and in revenue outperformed capabilities maintaining we for our

of of reported a XX, million a $XX.X final million cash as $XX.X note As we of on on a basis. year-to-date XXXX, results, position September a use

to XX. Slide Turning

third remained strong XHANCE mentioned, As in I net just revenues quarter. stable and

result year expect be between and to per end of our XXXX net revenue year Previously, average range. increased expect expect low $XXX XHANCE million to revenue raising we XHANCE and prescription, We for XHANCE of of net now have million to performance, As the between we $XX be full $XX the to net net million. for million. XXXX by respect a year be continue XXXX. we the of revenue approximately full $XX to expectations our revenue prescription for per full revenue With $XX that the average

the and which $X research general continue find XXXX to operating range development million year administrative to be $XX to to approximately is expect sales, full expenses from we of million the expenses in compensation. $XX stock-based and Finally, for million plus

I over now call Ramy? turn for will closing the remarks. Ramy to back

Ramy Mahmoud

Thank you, Jonathan.

diagnosed continued moving has any in from a revenue couple first questions, business of organization execute been revenue expanded successfully of efficient outpatient the adult Before existing into months in increase build net We've by and of the treatment medicine. could reshape our stabilized the believe operating potential reiterate new our business accessing while focused to significance to of an and the diseases approval seize really in ENT on base which we one by to potential the the preparing future. the opportunity to years believe launch profitable through to common like of has I'd us capabilities. which efficiency and created enable XHANCE opportunity commercial potential Allergy us, opportunity take of front our to the strategy, greatly most greatly XXXX to as We prescription operating for coming

In where addition, we and commercial what explore approaches create beyond in as specialty care other on accessing actively the I in the incremental we're continue deployed. we partnerships currently primary our to can own segment value said to before,

attention like Q&A. I'd for Now open your for thank up the to and you call

Operator

Instructions] Flaten Street. line from first question Lake with come the [Operator Our Thomas of will

Thomas Flaten

FDA negotiations? started I'm if far Ramy, if you review mentioned confirm along. was could curious the you've you label

Ramy Mahmoud

question, the for Tom. Thanks

days XX action the is are label away we expect start. our before which would target when date negotiations a We time little from to

no, to They start soon may So yet. we them start have haven't this expected within yet, quite they started neither month. but

Thomas Flaten

QX on Jonathan, more that you you I'm make doing restructuring profitable. revenue assuming And mentioned basis. meant Great. you're co-pay per a might there prescription some was that that

which you'd are have co-pay, be approximately, in et prescription some changes could that per $XXX to revenue say get ahead you what color based for that the to You you guys but to know you I And on imply us move to of $XXX. sequential downshift more the the cetera, averaging give mentioned? year, that a would you expect -- on

Jonathan Neely

Yes.

the in confirm, today year-to-date I guess a additional $XXX year-to-date at a material basis, actually in presentation But on on just basis. some appendix. to First, there's the we're

that prescription. still $XXX we So we you are slightly third revenue point below But as per had out, $XXX quarter, in mark.

And we our than the the shape expectations, we're you do a fourth better really terms good have close in And last out first the somewhere that prescription revenue of per that quarter think typically, of going of X should we a mark. quarters where in the into the quarter year, in $XXX so in around the you year. year

Thomas Flaten

And then me... for final one

Jonathan Neely

the For yes. year, full

Thomas Flaten

us know care explore I Just flesh be other phrase at the I said if a continuing partnership? be like to other primary approaches. you a for one, don't and to might you right care was prepared from you in said partnerships, aside out curious primary Ramy, approaches conclusion comments, might your final something what you're that how

Ramy Mahmoud

direct of Well, traditional might do the to example, that and than approaches well. for of leverage exploring and as a likes other Paul of selling, not direct variety involve are model. But and outreach that be he emerging the of And I'll pure applicable we telemedicine. if a on comment are audience approaches our sales reliance promotional to invite our direct-to-consumer variety commercializing product different product kinds there just

Operator

[Operator Amsellem Piper from Instructions] with the Our next question come line Sandler. David of will

Schuyler van den Broek

David. This is for on Schuyler

strategic do How And just occur if hypothetical, somehow overall have think long-term not I about then label if for impact options? company for that did the some I And So the follow-up a would how have you plans reason? a and expansion after. XHANCE?

Ramy Mahmoud

question. for and Schuyler, the thanks

of the kind the strategic of of The future nature company be if and that and appropriate in different the be indication. what XX. product pursue most be for would the the significantly might be actions will of us be to not approved part would strategic options December required that the So by will continue the response on FDA company's of specifics the options is to governed kinds the

us for remain emerge variety I we circumstances the pursuing. would to the options say where open premature when strategies of are speak it's only about be So little to get a driven a we'd specifically actual letter. what that strategic we can response that

Schuyler van den Broek

makes Any additional give on next label, there you would That it. expanded with be And helpful. per prescription landscape think sense. pricing would look like? net what Got the then details the be payer would you could would the

Ramy Mahmoud

So it's of to are speak future with the actors hard when about variety a confidence involved.

So I think be we In product day belief, but our the of that and approval material will don't we've after to as the before, I day approval. product price the the it words, other the certain pricing before same of of was think change can't on the price any the be there approval. the the will said be net product, the based purely is as

Operator

questions conference more no for remarks. Dr. to showing over Mahmoud I'd time. hand this like back to the at closing I'm

Ramy Mahmoud

all conclusion, I how year gone we're very in far. this so happy with think So has

really third the the positioned next launch opportunity. year. at into to lower As you've here, stabilizing company be cost. month to new a very or has dramatically in forward next foundation to delivered now seen, that X in stable a illustrated company through quarter, is well we're And on indication think really efficiently the revenue We looking

for Thank talking this look forward and to again you to soon. joining again all you we morning,

Operator

conference Thank today's concludes for This call. your you participation.

Everyone, have day. disconnect. now wonderful may You a

OptiNose (OPTN) 9 Nov 232023 Q3 Earnings call transcript