ECOR - Earnings call transcript Q2 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen. And welcome to electroCore Second Quarter Earnings Conference Call and Webcast. Currently, at this time, all participants are in listen-only mode. Later we will conduct the question-and-answer session and instructions will follow at that time [Operator Instructions]. Also as a reminder, this conference call is being recorded.

would Hans turn Vitzthum I to conference time, host your of this like the to over At LifeSci Advisors. sir. ahead, go Please

Hans Vitzthum

Thank you call. thank you, participating operator, today's in all for and

Officer Web the Joining Frank XXXX. ended Company's Officer. Fiorino, on released Q&A. Medical me Chief June results press A available for Posner, will the available today, Amato, Executive XX, Tony be are Officer release Earlier Chief is and site. Chief for Financial of Brian copy electroCore quarter the

begin, this provisions the forward-looking statements Reform Private we not remind the that of be call the Before are like of I'd you this of of which historical management Litigation to during facts, in statements to Securities made that call will the statements. Safe be pursuant federal forward-looking meaning should are XXXX. Harbor statements Act make securities laws, deemed that to contained Any include statements within

and of statements. from including, statements estimates assumptions. forward-looking All material materially the These results Company's that cause or or statements differ based by risks and implied actual trends without financial to events current various could involve anticipated our forward-looking examination expectations, are uncertainties upon and those operating these our limitation, future

Accordingly, reliance you should on not place undue these statements.

and except obligation, XXXX. of is or with This Securities as the contains new or future and the by otherwise. information, financial and only to For call August broadcast update uncertainties today, of electroCore please filings Company's or that information events revise any forward-looking associated required description XX, live statements, because projections intention risk list whether of any the time-sensitive law, business, or accurate Exchange a the with the see Company's as disclaims Commission.

I'll that, call to now with turn over And Frank. the

Frank Amato

clinical generating intended We XXXX. development joining on things; that and our revenue for May and Therefore, positions current Hans. second our since to reducing quarterly and in plan for near-term we program; to cost-reduction comprehensive cash use today. cash extend us runway to you On everyone, thank I and commenting opportunities; focus XXth, to activities on quarter announced burn Thanks long-term the that us streamlining operating plan redeployment you announcement. results, best Hello update believe and three time today this on our the of developments the into success. and financial will beginning addition our

Beginning safety second at of unlike X,XXX total had had we the increase reached and with or X,XXX the metrics; I'm drug-to-drug physicians one prescription. quarter, written interactions. of who positive gammaCore, pleased had This second efficacy to least written trends and quarter physicians. growing an XX% quarter, through XXXX. comfort This end no prescriptions physicians three physicians' approximately side previously refill drug the the at report with nearly the continuation the the prescribing growth By reported up alternatives, carries continues least in prescriptions, of who first represents demonstrate to over prescription which systemic of of effects one

X,XXX prescriptions quarter. sequential the prescriptions also the During a the during growth increase compared second approximately to to of first as we XX% total had X,XXX nearly quarter, written,

However, second paid in as in XX% quarter. ultimately believe months and of of to the Prescriptions we increase prescriptions is that first a indicated X,XXX dispensed last expense measure of X,XXX, the sequential from the better totaled performance quarter, the therapy. metrics nearly we quarter nearly

in XX% the therapy quarter, of second increased to growth months during paid X,XXX. addition, In by

continued gammaCore the quarter in These demand revenue growth. to these together, or and grow. stage XX% revenue the trajectory continues Taken trends our growth Indeed, most quarter. first second positive over key a metrics for the in $XXX,XXX accurately increase set contributed for total to capture

the including base Administration redeployment patient our where and the to payers; regional channels Veterans of prescriber to revenue some policies Department outlined access their recently medical most current permit the concentrated, amended high-value where for announced of for and get have headache the under gammaCore; technology whom are plan, supply contract recent Defense program National gammaCore we this we January payer their by When Kingdom, our United coverage patients covered cluster paid schedule innovative treatment of offering federal awards for the potential the Health year; Service. effective to therapy as

opportunity including the pain company, increased the of in workers' given we revenue represents potential providers, other significant which for compensation in And will we opportunities injuries a prevalence a workplace as population. in management resulting headaches moment; this field, revenue believe discuss the among

both Affairs supply or Defense. which of Department schedule, the FSS, Veterans Turning federal and to includes the

XXX the first we the units quarter. DoD increase quarter, from significant a representing During facilities, XX shipped dispensed within and second units VA to the

we XXX units shipped saw during June. second XX July April in the from to to in increases with strong quarter XX May, And very Additionally, in XX month-to-month month. as was in well the

As expect to accelerate. the ramp, VA continue and DoD shipments we to

opportunity significant in first traction. are we pleased VA gaining XX,XXX the electroCore, to attributed the the for it see The XXX,XXX to DoD and was quarter, Revenue FSS a from up and very quarter. in is second

the the unique individual with associated particularly and Our on-boarding during is challenges VA VA quarter progress treatment military logistical with the noteworthy facilities. given

centers have XX them an how that its from To-date, military XX we works. up VA teach in gammaCore, process the of quarter. As purchased have and treatment we facilities military the facilities each understanding quarter, and VA distribution first XX requires last XX of

of the the case and Service. headache supports following, for cluster frequency cluster quote, quality gammaCore intensity the gammaCore of the Care the from our announced Turning on reduces headache leading published up where concluded cluster improves strong. National use I the the attacks headache. the generated Health Excellence, in "evidence GammaCore the of the treat United life." guidance in Institute quarter, NHS in Health and They second indicators or National first draft and Kingdom, approximately NIHCE, month, the remain revenue now to to we XX% quarter, that we've or UK's for in UK $XX,XXX adopting and and the of Last in $XXX,XXX

likely that Xnd, first to is compared draft to in guidance, are in in approximately addition the use closed patient to respond the gammaCore. growth cluster we November. the common Clearly, expect estimated the the would late and save important standard gammaCore published that of of a highlights of August treatment drive on as In with with guidance guidelines the NIHCE people be could for alone. The XX,XXX market. to therapy year It be that period care headache that care standard Kingdom final in robust in this significant catalyst United could $XXX per draft the to

among and technologies. draft NIHCE of evaluators therapeutics the pleased particularly are as guidance new rigorous with We this most the and NHS

signed United to for exclusive a States, gammaCore make across gammaCore broadest injury available with distribution end, majority to earlier comp to with the United has determined Doctors patients contracts we workers' pain. remained to expand that with workers' to an that population. the LLC In To injuries. We're we that Doctors of announced week, the treatment gammaCore possible we Medical offer agreement access they providers compensation related patient will pleased headache States. Medical alternative a as this

gammaCore's and the cluster comp presentations non-invasive, health momentum weekly approach nation gammaCore for believe an suffering and migraine solution have been to across headache. we for with payers. and are and Payers and a PBMs safe commercial favorably us, Workers' revenue economic building. channel is insurance local non-invasive patients responding happening entirely effective as Clinical further from validates is new and

be XXXX. in could large regional which standard negotiations quarter, forward are low to We on first QX as The or following the updating QX payers. look discussions processes QX on We the contractual coverage payer to advanced and complete of expect we agreements the reimbursement. determinations you as for XXXX, with and of the and or is rebate national day early

clinical turning programs. Now our to

we comprehensive migraine II redeployment half complete we are studies sponsored area advance continue have remain plan, of focused We and consistent As we one to randomized enrolled of than during advancing our prevention. And we to quarter. with tightening our that those our designed target on our we year, focus current company we more the to acutely prior track detailed XXX guidance. enrollment PREMIUM to where is and label. only in of next our remain third patients. the our when expand first end, An studies second To-date, announced

submission VENUS to be evaluated In we studies, possible in month technology label expect to and agency's the expand by PREMIUM evaluating study to early could decision end only next a our gammaCore are currently year. XXX(k) this that from II data continues is gammaCore's the with we It into some funded is see grants number of trial FDA company-sponsored our while And migraine study third-party gammaCore is investigator initiated in prevention, we interim the stroke. currently, accepted Last year. from the the advancing acute Turkey, that see of agencies. largely

XX gap posttraumatic and trial, to The expected patients. PTH a of study, prevention treatment headache enroll

grants We're in work kick to II disturbance who've that million had to type this clinical have are We gait disease with over Parkinson's enrolling. active the the in trial RA four expect received arthritis their study, three quarter. study of inadequate genius in totaling a now announce trial that quarter, off on investigators pleased patients. patients prior $X to The diabetes three build response during gammaCore biologics, in this and to and sites an rheumatoid

this be with data international time. And gastroparesis May, fatigue, a XX we results later several in our a will symptom. prior Sjogren's results received a from match more from poster at presenting Digestive detailing During quarter, in trial idiopathic patient gastric quarter, posters week improvements Dublin. University reducing sham-controlled a These presented symptoms an both September, eight at for significant reported subjects Congress from in data we refractory the in in the In Stanford in statistically collaborators headache syndrome commonly emptying gastroparesis and population. Week, study

our concludes That update. clinical

Before I'd our take over is which like the to to the review moment call turning currently Brian financials, a CEO underway. address to transition, to

begin the built work opportunity board growth. with assist am be Chief will strong upon a and I down continue for transition. as the CEO team. I Officer. our had of in stepping new announced, and smoothest with Board previously to such are the Directors ensure my have I to possible to to interviews early September. As person which am can grateful successor foundation In the company scheduled committed the We to world-class Executive drive the a proud to

call Now over at this the point, turn Brian. to I'll

Brian Posner

Thanks, Frank.

might to to revenue recognize partner be determine thought to distribution pharmacies the but time Bioridge of indicator numbers, our Bioridge. in Beginning leading our potential turn from helpful levels into Bioridge we sells sell road it Pharma will on product review Pharma, getting paid the product the Bioridge streams. U.S., from we we to how various the at inventory various company the to are dependent dispense revenue. which which for we revenue just our paid in recognize Before revenue that prescriptions, since Order down they a are are help Pharma specialty patients. at tracked quantities prescriptions directly the

particular as National Health Turning and Payment. to revenue related we Health the orders, We the DoD England VA. sell be the will the handling shipped the DoD our VA in is Cardinal to Innovation Technology for sites. so customer recognize via And UK, they shipments. Service NHF to

the to Now numbers.

For XX% VA/DoD $XXX,XXX or were channel U.S. of the channel, $XXX,XXX growth quarter approximately XXX%, June XX% grew electroCore grew first the net and increase UK's the ended $XXX,XXX, pay the reported QX sales Commercial channel approximately XX%. this approximately of versus major drivers grew in XXXX, the compared XXXX. an of The to quarter which XX, QX of

million second the million by costs. in for of $XX.X was to The primarily decrease and in as XXXX. Total quarter a marketing operating the of quarter for driven compared stock-based XXXX were compensation second expense OpEx $XX.X decrease

connection quarter with of to adjustment in significant announced of XXXX restructuring resources charge the a included personnel The the of organization. and the second deployment across previously $XXX,XXX

that our $XX million plan. $XX.X quarter XX, second the in burn quarter announced which for operating compared XX, and totaled million cost in XXXX. was marketable for cash securities $XX.X XXXX. the $XX.X ended $XX.X XX, loss an quarter was provided million million equivalents $XX.X range the at in reduction million XXXX million burn quarter. second Cash comparison, we million was of $XX.X December when we our and to XXXX, cash to of June was of June at loss Operating By million to the net as first at Net cash XXXX, $XX.X as of the compared

previous Now looking below but ahead, strong substantially expect annual be continued to growth. expect still see quarterly estimates, consensus we to revenue XXXX sequential

been of has plan a significant savings some postponement in headcount cost trials. Our implemented, and clinical resulting reduction

We continue additional to in expense. related for look savings non-headcount

resources, through be maybe average burn previously cash It less XXXX. some than capital our into to adjustments to at fund that As we expense the the burn third resources of $X in current cash $X adequate stated, million on million believe time forecasts, our will payments. quarters that Based to with XXXX. for quarter and due least beginning XXXX, of anticipate noted should we have cash and one beginning we of our quarterly excess be working operations the revenue

back And now, to call over I'll turn the Frank.

Frank Amato

Brian. with our the continued Thanks, metrics. growth quarter performance key We're second our across pleased during and

efforts updates continue. providing very trends these therapy. large to significant we future we this continue outreach and built we XXXX, have to are not our yet momentum expect positive payer forward our to As who still bear progress. to have patient in groundbreaking There populations do access Thus far on fruit, look

open please the up And for call that, with questions. operator,

Operator

you. Thank you. now be question-and-answer We'll Thank a [Operator instructions] conducting session

state Capital. the questions. line Ahu comes Demir Noble Please with question your first Our of from

Ahu Demir

Scripts. question third for is first quarter finalize XXX agreement in track on lives we also to quarter? be Are Express that, My fourth the XXXX million that still expected the the in on the covered and will

Frank Amato

Express with we So them. conversations Strips, remain in with

phone they with fact, Switzerland in around their and their group group GPO, point, to contract multiple started calls In a we've details. recently purchasing organization, had, this over a

that indicator coding may key there our First place getting recall ensuring contract to in you a for their had compendia. Databank a that access was through If they

they requested First module codes our are and a working on has putting in Databank place. now digital

press that is from pace indicating There module digital and releases Scripts been multiple Express completed. that being on

will in key a this for shooting indicator that the could organization. for have plateau So the XXX that of we whether And contract year. reach place goal it's we likely end be that lives million a the have before we been a with as

will and So especially loaded lives. the when Scripts, we be Express have having that million possibility the contracts of the to PBM XXX

Ahu Demir

second be payer on front question And will the again. my

providing still in Highmark, Is policy monthly we finalized for or third expecting amendment that to that the for quarter? On refills. are finalize the reimbursements

Frank Amato

in the time. Dakota. contract want So Cross prescribed we this And what Shield get updates Blue Blue Highmark patients a North in is Highmark Shield upon reimbursement of has policy Dakota, the for have changed Cross with North those to since reimbursement The therapy either their policy allow along place those gammaCore. don't at entities Blue with, point or Blue dependent to therapy

the managed to with Highmark, believe medical benefit the for Dakota. a we with is I beginning know side, PBM market North in contract, Blue are Prime Blue team On Cross half we that manages Dakota rebate gammaCore. offering Shield Blue of of Cross Blue is been I access of North discussions are Shield lives. meaning the of one will discussions our to Therapeutics Blue's offer and accounts about

contract, Therapeutics, So the both a offered working with also we're them and Prime and contract, on the have well a rebate side side. pharmacy with medical as

when to have initial patient device. their to of matter place, a the they're get for that just both local it's price in a the or plans for expected that So so we navigating contract the and therapy, pay set a refills for receives

Ahu Demir

congrats very the you my trajectory. for taking and positive Thank much. question, on Thanks Okay.

Operator

the next from Our with with Evercore. today Schimmer instructions] question of line [Operator proceed Josh question. your Please is

Josh Schimmer

to target appreciation give growth other terms of a in you lives driving what Can is in are achieving step if of a To percent access, prescriptions or migraine of sense are us awareness, a still you. And terms cluster obstacles and population what adoption? product there swifter of you where extent Thank rate gating prescriptions, or covered? reimbursement the headaches? whether any towards in towards

Frank Amato

physicians of with patients place a lives of PBMs right still the and requires factor for as Caremark through, place I earlier. those about gating PBM half Prime remains CVS now, majority for plan, paperwork, not agreement that fill with rebate Blue's getting of payers that us for contracts our and prioritize the also we within the local have So, in The to in mentioned all them. Therapeutics

We Caremark offered. we've been various back have have CVS -- our contract terms and with offered in contract with forth gone and

be prior likely access physician. completed and a without of to large majority gets So have will filled once the plans the Express loaded still paperwork with we're off, the get having out might dispensed it's we but folks that in a And that plans, It Scripts, currently other Therapeutics, those is physician electronic and by to in negotiating United the with. have to today. then to other that States respect the way Prime it's us

to technologies, to like code marketplace that these the follow. addition get opioids In in that, at is last medical CMS are will looking on pathway traditional durable that naturally we most legislation ours, on alternative year, CMS therapies and following-up therapy the without having directly to a through to good was which a access improvements opioids state equipment go way published that be neuromodulation could in to the patients of that that

would large I to the the those we the reimbursement population restating So and group come by just do access VA/DoD good going meantime, without is of way In We growth in segment. and those have a to that say good covered. of access everything beginning contracts. contracts rebate

We have opportunity. the workers' compensation

UK We other medical Blue's with policies have plans and payers, local for contract at folks. we're those And directly local fruit us will allow to the ultimately bearing changing regional and payers the us. that

more -- been in last than payer And that with we're think opportunities. what the had these knows, year. headway respect I delayed, just to we it's making everyone during as in past we communicated since our the So far XXXX, IPO

Operator

time, back comments. turn Frank Thank I Mr. to floor closing for you. the this At will Amato,

Frank Amato

look to Thank again quarterly our for our forward everyone. providing next call Thanks afternoon. November. joining this you, We Okay. in update

Operator

conference. today's concludes This

this your And you You participation. your disconnect at lines thank for may time.

electroCore (ECOR) 13 Aug 192019 Q2 Earnings call transcript