OSMT - Earnings call transcript Q2 2020

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Osmotica Second Quarter 2020 Earnings Call. At this time, all participant lines are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]. today’s being that advised be conference recorded. is Please Instructions]. [Operator hand over Investor to I for would speaker conference to like Wilson, now your the today, Osmotica. Relations Lisa Please go ahead.

Lisa Wilson

update Pharmaceuticals' operator. Schaub; for Relations and Officer, Andrew Officer, me are Officer, quarter to Brian you, call With is Einhorn. Osmotica Chief today's Chief Thank XXXX Wilson, Financial Welcome Osmotica. business JD Osmotica's call. on Investor Markison; This Lisa Operating second Executive Chief

Osmotica XX, from Director which site release We detailing also Consultants. Dell June be at and are call, three slide Research a joined of the Optometry also issued presentation, financial release the can this Investors Laser Cunningham, press afternoon, Web press of This company Derek includes for the accessed the months This osmotica.com. a XXXX. through ended webcast of section and by a results

as not intent those materially uncertainties, specifically forward-looking Osmotica or of today and differ our by I Before intent to statements are the company's involve statements Such conference future any those may forward-looking on as today's except as may any and based we Reform to projection, of this in update be Securities performance. Act. the are future results get defined from management available anticipation risks including guarantees Litigation obligation that express on expectation, press started, SEC. forward-looking remind Osmotica's and these These forward-looking in Private everyone considered the made future statements disclaims law. belief, forward-looking release events and Actual statements forecast, that information would call statements, performance afternoon's noted filings like projected the to by statements. required a with regarding or

During this as non-GAAP EBITDA. we such call, measures adjusted to refer

of XX on will adjusted of site, EBITDA our available or for osmotica.com. The press at the see tables of loss, days the be reconciliation webcast this income net call please our to end release. a For archived Web

the call most the related be who CEO, of then, and reference August listening press webcast, archived discussed, to this held recent benefit filings. announcements was with recorded have SEC that, Since topics And those company's turn I'll Osmotica's the on to Brian please For so made may XXXX. call the may Markison. releases and Osmotica over replay the or XX, to

Brian Markison

and Thank thank our everyone you today. joining you, call Good Lisa. for afternoon

and As our described release, business. are excited in progress we ever our made than quarter this have press enormous about future past more

mentioned, live webcasting to is refer our slides the and to leader on the this as July to figures preview for to First, don't around share highly in Dr. detail will on program Upneeq, access first site FDA his if time on thought going eyecare a us, treatment known droopy regarded the Web well. Please you our facts that issued the and only more in as acquired of for blepharoptosis, pharmacologic more devote Cunningham, X, call approval commonly plans; this have JD we received well. as perspective and most the as commercial previously and eye. join as remember we’re to were

treatments among MS Second, today. December in poor are ago submitted of management most and XX. date were tolerability. The associated the arbaclofen a with goals decades treatment spasticity goal of management of we of with the approved MS NDA spasticity the is symptomatic primary for The the common therapeutic

in to demonstrate that Our time, improvements while administered highlights spasticity. arbaclofen’s periods can extended product a for extensive continuing be safely of database

recently in operations their around known and major look and forward planet. available Third, Santen follow-on on excellence paying the completed we with Upneeq partner make are to in focus Upneeq. focus with eyecare We to market and to were rights well globally ability offering also Santen we accelerated utilize for most of will to to thrilled down finally, which the for debt. launch, ex-U.S. the the we and $XX we fuel the million Upneeq And for is our partnership this every around plan globe.

I’d Einhorn performance to Andrew turn So to our the quarter. call like the over that, from with to financial Andy? recap

Andrew Einhorn

the decreased Thank Brian. for XXXX. to decreased XX of XXX.X XXXX, June period June XXXX three-month not three million three second the months in quarter XX.X the were the to during ended stemming ended million general in the million XX, XX.X you, for compared ended with Research for medical by as arbaclofen costs the million lower filing by X.X costs spending associated increase combined revenues three batch months and XXXX. three development force our product June XXXX. expenses 'XX. development with reflects the The and the June June erosion in and increased associated XX, three competition. costs decrease loss EBITDA June compared million XX.X three XX, volume the June partially the months to three expenses quarter from XX.X XX, product compared of of million ended first programs, three and sales XX.X reflects million months in ended compared NDA expense quarter of to XX, the the loss XXXX. million reflects XXXX. quarter XX, for for million the and million ended general the months of sales quarter which of million during adjusted portfolio, in associated XXXX second million This offset net Net reductions continued second months compared XXXX. quarter to months and administrative Adjusted June additional XXX,XXX with XXXX. the compared in as education to our were reduction of XX, X.X a XX.X EBITDA of XXXX the with Total marketing costs for on Selling, months increased XX, generic XXXX XXXX XX.X price million second X.X for preparation of XX.X XXXX to as to to ended by of in expenses existing million June the XXXX was on Net present was X.X ended second amended for and administrative ended the The

cash we of cash of proceeds As we XX, and XXX.X Last our equivalents of million. facility month, June borrowing XXXX, million. and generating had noted, XX credit offering million of capacity equity as under Brian net completed XX.X an revolving

Santen with Additionally, we recent payment agreement XX cash received our million. under licensing of upfront an Pharmaceutical,

loans our XX of million the we As will will This turn to now our making these reduce the as week, of XXXX, loans. leverage. be we prepayment of in had strategy amount XXX.X over part to June JD. aggregate XX, under borrowed term principal term amount call million I a

James Schaub

afternoon, good and Thanks, Andy, everyone.

to opportunity acquired are organization the throughout Upneeq, and first blepharoptosis. thrilled discuss We’re last the and commercial progress, the for culmination The strategy with only approval our Upneeq. month was treatment we excited to plans tremendous teamwork of and the launch for approved FDA

continue a acquired that commercialization in recent Our blepharoptosis we will a development patients. remains ongoing upon what approval, executing transformative rollout culminated which to and continue the program robust first-in-class treatment for believe efforts build for organization be to dedicated the to

into functional million commercial adults in On strategy the ptosis of face have now first at the outsized core, rollout, of tired part no of the had opportunity options. impact treatment and of front beyond We majority to note represent than the Moreover, whom ptosis alone, eyes, its in a symptoms; the overall until asymmetry condition. U.S. before meaningful the us. get acquired affects the and we XX I’d like believe slide more appeared

condition delivering the value medicine So and potential this medical what be the only patient build a we're to Upneeq in only population reframing a represents we a really condition on first narrative need, at are unmet talking move but across ptosis. treatment aesthetics. about of ocular and mild eyelid. droopy as awareness And transcends rooted significant largest connotations new the lies we that market that FDA approved elevate of forward, efforts of all and moderate intersection Not here is prescription ocular and our for of a unlocks the will to

slide. Next

professionals RVL Inc., customer RVL the and and operating launching to and the our an with focused organization opportunity, value customers market a the meaningfully and strong default. delivering team, our We subsidiary, building Upneeq. have eyecare both you for market to Upneeq. product, launched not looked welcome built will patients that and and of potential a on this created design rest, me eyecare the care. Let stand sales of and engaged continuum was focused from have on at across transitioned newest apart dedicated the first-in-class launch exclusively Pharmaceuticals, experienced purpose we by Moreover,

while a pandemic integrated Pharmacy, strategy pharmacy access group this of early fairly adjusting increase launch growing Lastly, the from mindful and leading corresponding of within this XXX approaching this eye the current have building practices to through traction through are a fulfillment adapting own and core patient experience. intend while we will focused country, to approximately patients end investments and customer-focused and From buzz across are customers we their sales phased offices we quickly in Initially, awareness seamless re-imagined launch our feedback building in a of on high-valued manner, we and the be the and of marketing. thoughtfully in year, creating upfront, created Upneeq have back and we excitement always and expand standpoint, RVL advocacy the which the and as these from experiences. we population and addressable

a acquired from and an a may eyecare. not patients opens to surgery that a affects adult may class for are progressive whole qualify of new transitioning patients blepharoptosis, around narrative millions for condition which We of or away code reframing ICD-XX up

and safety designed uncovering from clinical goal robust program, does also with uptake with treatment. launch. ongoing efficacy inform will data serve deeper slide, investments adopters, Upneeq's those developing aligned to and we in bit be launching with same partnership and an much so excitement our the on program buzz What into see what know Program, actually a program, and profile, a it and the we derive group and core will experience early future the powerful create next and patients the to our early scale. momentum that enabling and be is of able and diagnosis to within early On meaningful a shape experience early and We’ll larger UP experience Upneeq to that seamless around program, UP investigators ptosis experiences establishing is responsiveness, of and to use insights which the digging while

seamless relating Turning prescribing Pharmaceuticals decisions now make aligned to the prescribers pioneering our for Upneeq to created flexibility pre-requisites independent as customer and and marketing payer service with opportunity Affording predictable eliminated. third-party to has strategy. Affording pricing patients. allowing partnerships. offerings access uniform We're PA’s, habits. without product existing to patients practice prescribing and are all access interference, obstacles RVL consistent unrestricted step-edits access for and traditional such and enhanced

we Cunningham, We this call And the turn excited and to are pricing value will platform about an highlight Upneeq from standpoint. the proposition. wrap truly up XX-count over before Dr. access

an the within a this daily designed user, and pricing value for prescription. XX-count effective to All the prices and patients. the user. have option cost of will the XX-count to while for providers, We all inclusive be monthly serve convenient and most handling cost maximize effective occasional price reducing patients represent will strategy transparency $XX optimizing and shipping the will to

Cunningham? his a to turn and of the leader opportunity this who insights early lend Derek impressions. to Cunningham, highly Dr. like expertise share over thought and will his Dr. I'd some to Now, regarded call

Derek Cunningham

patients Thanks, clinical represents JD. to really comes we been Certainly its within that pathology I trying direction have that product in that excited this about all I the excited to seeing eyecare I’m development trials into version build the every early really office. we to a us a for for It and is about this to we’re exciting only and we’re in population not our our well. also in doctor had almost new guess heard that a will quite of much aesthetic program. through clinical be a his very and new as when honored is a first of demand was product it go involved this while think trial that

wanted And some from reference so patients. FDA recently clinical sure experience, primary to that on the this but I first on talk I is colleagues its some ability indication, thing early on to my probably had also the about concern use make legs. has And this medication a standpoint was not close I’ll this and that my and only to

female, product, the complained about she than her blepharoptosis. the was and and And roughly and which more see XX acquired after, so I that it patient this did surprise it old, trialing clearly in you of the the she therapeutic never significantly. on it whatsoever to the reported use she is – only before but on a this years this we to target use. had ecstatic in problems this the In see you a case idea mind our we have was quite idea picture tried case, had can with picture taken here in and having XX we from after on label when to is weighing blepharoptosis something roughly picture can of market XX to bilateral was for age-related product, to this her going with the Caucasian, minutes XX installation. she no When up that here, probably be also brought And us,

the to So I so that’s me of in although can And question mirror and a had most blepharoptosis was field, does other when’s is, was well on section kind that response. it pictures cross see a really trial, devastating was for her earliest important doesn’t as and this case to it. think different as visual get actually how clear just we I this understand usually thought a to because metric What than of And you affect well, a to bit this she when also kind to probably phone quite we lids. standpoint of any going States was we because patients get And was. the and get great And can in From in an us with actually the absolutely her the her patient you least can some another it. because or that, from important to to her to to incredible in she clinical she to and be moon it physician stop a response she although like? to have results used color United only We’ve seen drug telling associate of idea at of with start the we going never our and a more feel acquired released it? kind practice is brought looking and give affect are absolutely to up had But that. there’s an doctors, clinical staff it. when first mirror and significantly my everybody my to field, wanted a over almost never the the eye the imagine I visual that To you interest can excited comes was when that’s elevation what get have difference apologize going it how setting, Now from that this as such medication. try eye see and the product. may couldn’t drug I early

as standpoint. I knew well be some the from it, patients cosmetics younger interested And some try it had try would so patients when did let we I that

pictures see truly this best because understand and purpose that’s the some how way I did this unilateral to You I on is product can think working.

And patients metric in? most yes patients. you again, is were here is an effect as these of eyelid you’d of have was from patient important Hispanic And in is many in a only or that eyes, a interested installation, not we but whitening roughly There noticed see everybody. well patient. XX which this right was would here So you something upper be elevation something when minutes slight an can clearly overwhelming it’s also be this like the can post Asian probably the if this the their asked as

product a this probably it’s had molecule uses. market been other in going this And to really in leads something uniquely going This a also the it a But has that multi-tool that in kind use through to more really setting uses established we well ability and to clinics give thought. profile. an of and us. clinical to is safety have our has well-established now up So than us excites we it us that really open is

that community here after use never be the had the had patient that thinks that by reported sort to her instance, in of the is and that is thought Asian something will a For incredibly Asian of clinical kind she lot us colleagues I about. this

was also immediate she her that there well, from noted effect sees effect that an As the to hooding she eyelids. naturally

that saw mind So product. in she clearly when increase was noticed peripheral immediate not that Again, another of demographic I vision. her this first in field

So from we product patients that effects a standpoint, the negative at or have clinical only really reported not side it’s very from really significant These tolerated. effects no all. saw well

that XXX% on of this put had effect. some saw also patients We we that clinical the of type

clinical from as we that’s case far. in at but been some small benefit you person Now, effect on has ever in sample patient can least see would to single the expect, that it. rarely the size, so tried that’s our very medicine product a that And vary patient appreciable every

wonderful I So potential far things of realize. that just and untapped think all nothing forward to an to say going this we’re kind going so but product again, with there’s really

Brian Markison

Thank to turn And call operator, we’ll you you, questions. Derek. back the now, for

Operator

Instructions]. [Operator you. Thank

Jefferies. line Our first Steinberg of from question David the comes with

is line open. now Your

David Steinberg

Thanks. three I have questions.

doctor we pricing finally assume bit just Secondly It’s low product versus getting? I the correctly company. a XX% and with one priced lower, quarter ophthalmic very the territory have but discussed Should from based Thanks. being and Santen, sales the for area they quarter feedback the previously in the Pacific this first what know just to? you eyecare QX where think premier gross could both you’re maybe in the you’ve this being that on I think they either the in range. your use mix curious Japan Japan and world, that’s for XX% and should And the margin, margin early two The your is and Japan if on reception or then was quite with – have curious what be in on it the they company you is think we rights collaboration gross on peak that Asia number QX?

Brian Markison

research the based little he just I’m free, we because one XX-count cost Yes. anticipate of going no get amount perfectly frankly he a done it, a paid to you don’t the is the user. more he But in quite is product so as fair for his thinks. occasional for David. tell XX-count – and to pricing, happy the result would rooted market impression And regard out more Dr. it the market you for and With for in on this where bit or the on Thanks, Cunningham, to have got time. you we he’s can line and in have what point can at the

you So, there? Derek, still are

Derek Cunningham

we Yes, can ophthalmology, to. I’m direct kind interesting don’t because this driven. non-insurance product far compare have retail a or here. directly that we nothing consumer of It’s pharmaceutical In there’s is so to that

that tends area market cosmetics that been on can in done So probably to eyecare a the market ocular basis cosmetics basis to tell you monthly for than exploding things our other I within cosmetics. has a this on and an commend more monthly are

again, revenue it. model my even this certainly from this because think is patient that literally to say So for first standpoint, us. very class base and could in difficult But yes, I bear

David Steinberg

Thanks. it. Got

Brian Markison

Santen, Andy course, when IPO. Santen of outside to had the imagine. We I’ll research did into ever answer over show projections bounce you initial we company our the we can will do We margin we as those entered projections. with answer. then an did did David, gross and market transaction, before With the

a not a some a with reaffirm working markets of because we’re have require know what’s did. doing to lot on not require more very may X quicker may and that we of then require and may required now one-year going are different smaller to not our safety minimum, repeat than may or the the perspective hopefully may the or are projections from what regulatory to or a globally, that. may be Santen study China – And we work in At Phase numbers lot requirements EU, to going We example, also different. have a for version a trial, Japan

I down next would this to under we spend be So relative expect. can to going we are revision time Street and it to locking guidance quarter it expectations then were completely able the now, what assumptions But those give do the we around be some spoke. to we’ll if

gross that? margin I’d like now. tackle on want And question, to your So Andy, you that for bunt then to with

Andrew Einhorn

Sure.

first Our amortization XXXX by on compared gross period – we XXXX. Also well XXXX, we depreciation some production lower from in by which higher lower did a also Those as expense was which affected to not largely in through. the half see the was second of launched periods. so apart royalties come the margin was present in cost half were of and as higher affected sales, unit royalty comparable nitrofurantoin with

David Steinberg

Great. Thanks.

Operator

Thank you.

Our Markets. line next the Stanicky RBC of question with Capital from comes Randall

is line now open. Your

Randall Stanicky

three Great. I have Thanks. questions.

you First, staging will what inform looking initial So the on that rollout then walk can rationale are to for around X learn you launch, the first DTC? the and on overall question. until that’s the help perhaps Stage and JD wait the to the timelines through different

when and different building would therapeutic the going sales to And is follow in in different you that the second after. I commercial a force approved around out that be ask further? question it add terms products how the more December I’ve to footprint looking those got question areas? the it’s force Does specifically, you leverage The in are therapeutic it’s two one guess I’ll with to change up area sales presumably arbaclofen. of given

Brian Markison

Hi, Randall. It’s Brian. you. Thank

the me current have launched a different Pharmaceuticals Let arbaclofen. with RVL than will start to structure. be in Arbaclofen structure

separate so the of, from it’s Pharmaceuticals, you effort, subsidiary RVL and that our house to So business constraints pharma mainstream our the sort will, a and Pharmacy other force create if under. free operating field we did independent marketing is

at you goal I’m excited have we end brought because quite go we’re we of be structure to we will have And separate So the glad year it date about and address a that forward. as it. a the will up that

So rollout third to on will we I’ll question. flip back it anxiously the then and JD await your

James Schaub

the Thanks, and thanks for Randall. question, Yes. Brian,

question So reasons second from think that I we these largely of may by the don’t about to we of you one, that kind prescribers the to the or limited of So specific a driven is and what in long of most eye these asked may focused cognizant areas. therapeutics there’s think a and incredible think and are innovative The front early couple a those within not is as and have from early of depending impact the been promotional upon news where that ocular looking calendar. are on perspective terms one has on windows early the I feedback we’re receptivity. the we of enthusiasm reach in And standpoint, piece many very good in measure? phases going on timing ongoing of number we are the time that pandemic of core this from geographically a what’s front on

early covered piece ICD-XX consult. you’ve insurance ptosis exactly by during out strategies know go that yes, not Many of oh, a other more presentation about not the time them be made surgical traditionally It’s often earlier of talked the ptosis. we’re and employing comment focused in the offices to ptosis. is these today this that eyecare reframing around the uptake for may or referred I I is professionals and the I to, may a condition? code. messaging do that the we’re think with as Remember, first what than the happening is on

folks patient’s to natural environment exam different simply interaction, the in the that what’s think front going ocular the back at take I behind we’re reframe bit surface. these the it condition walking room of is starts into with completely a us and every to for and next little that practice for who slit going to used looking look deeper within narrative into patient are dialogue something that a again starting which eye also your around and trying in the the progressive lamp on getting and this at is lids and an

for receptivity. look to going we’re and So feedback that

from think up of spend going are happening to early then marrying start I bit to quickly would I prescriber Like to appropriate are I heard anticipate the year, drive really X You expecting in momentum those expansion a here consumer roll of this of what to think see X. particularly investments the pieces of and inflection builds the that thoughtful little broad just the we’re base to and Phase activation with X Phase hear said, back into half that as Derek as is adoption and with pretty in I and digest point mix traction we enough prescribers. the a marry And revenues and the piece. the

it So the ties thinking about way hopefully we’re in bit a to that helps frame which and little of context the fluidity.

Randall Stanicky

effectively Yes, it a the from two. question does. up first is my third And follow

When on add flexibility that to $XXX change you’re looking capital. the at you that’s that all Santen cash balance. out? or that’s I But, interest financial does another million $XX infrastructure to raised to to in bring of guys another million the paydown. your payment Brian, added add debt part greater going You your leverage in product building some add to in recently know

Brian Markison

Yes.

eyecare infrastructure have little have the really think that enthusiasm our practices. I again COVID people many clinicians and calling can we now, out we there mitigated it’s on in by how

channel. in point and with the run I where will don’t ball And capacity. that a near year on reach we have able Pharmacy future, more products to customer through going service, owned maybe channel it, from have very we great our we’re be now, to a However, a will and crystal it’s programs

the our look at all there that out fit earnestly quite launch will acquisitions begin on if think we hands accretive to deck it’s they’re very product. So very, but the beginning to we footprint, in

Randall Stanicky

guys. Thanks, enough. Fair

Operator

you. Thank

of Our line Securities. the comes Fraser next question with from Greg Truist

open. now line Your is

Greg Fraser

thanks the and questions. for taking you Thank

the could hoping early samples First you on volume just program, think terms able that be program, how practice, I the in running program? long will on expand do of to the terms how in the of experience you UP a around of should additional details program scope was anticipate the any we about

Brian Markison

to JD, want take Sure. you it?

James Schaub

Greg. that. I’ll Yes, take Thanks,

from get materials rooted components and treatment. this meaningfully really is every look, to what market. advocacy some other the ability on the enable exclusive We’ve a is support ability excitement and that what resulting condition and big think, the if both So, the look opportunity of experience and and we return From this if where we going and is doing from bit KOLs contained practitioners in to size better the ptosis drive way really to going office going now in just each materialize we’re and new standpoint UP use are seeing look program every program, think it. starting change they engaged to driving has diagnosis behind that early they’re a office we’re eyecare look, create in market it, it around and within that, else going this I where a use in going support that program little of this and this day that a this do changes a And perspective, entire and And care, to nothing to to to providers. a And is really desired we From a opportunity number specifically and can here how their create narrative a been with buzz at come and help going upfront. genuine special return to there standpoint, sense this a Because is within something and be. truly across reframe timing to continue and of terms seamless in else is, at are focused and they’re building I they’re primary packaging this. this. patient then educational that’s behavior continue to to we’re practitioner look, intended identify to to and like again, program the nothing of

that day. to think at is be I looking focus least a upfront at lids. the Start going their patient a

little starts course of to here patients the and to through, the down patients and expand Derek environment the seeing part practices at generate the sense practice maybe you how program. of be and this X,XXX on in in from shortly more thereafter about to seeing just still cognizant what where day we’re through and early looking to to run be from XXX I we patients average XX able a that X,XXX, he’s they’ve part starts that think probably provide as normal a of the But Texas. over practice practices space a a give of volume in more bit XXX, sheer and go color year, they new just this might distancing got You’re their back

Greg Fraser

Got it. very helpful. That’s

each the all Just separate for be or a quick on EU. studies regulatory would the for good in and one path up that then? X Phase expectation geography you’ll need Phase follow Japan, that China the Is X additional

Brian Markison

Japanese an subjects. not safety Well, study efficacy study the want EU probably require may own, in Japan one-year a China will we’ll will like but X for a want probably study. ours, certainly Phase look but their

will done Now that they in one-year done can could there, be be Japan data. safety and want it

we’re do or each to they see one-year study have actually key collaborating going them negotiate I bodies would geography with independently will regulatory So to ICH to safety each believe that And subjects could under the on how we’ll about accommodate many we Santen accept. talk of guidelines a the from with all to that markets. market

the safety that make for Japan rest example, know Japan and if faster. the accept, we accept PDMA quicker will the will much we from to will much, for then trial subjects and XX accrual study, elsewhere can in a to XX So, one-year go

we’ve do. until more that expeditious path but can’t much this conservative would and be we more share plans, some work a try We’ve and speak to really at too got to and the So traditional, got something we regulators negotiate excellent time. to information

Greg Fraser

it. Got

a Okay. lot and cash review, more old and you’ve made of And approval has from Upneeq year the those transitioning transition. of legacy to off generics with the FDA helped Clearly and fund products growthy the with a lot products. business progress threw us arbaclofen this that of under brands specialty

non-core So you shed and okay return? of non-core are trying core what’s in what’s on your thinking how latest get you interested assets versus can sort to an if

Brian Markison

funding what a cash growth the the of strategy. in the throw off question. core number business business helpful been great Yes, it’s a core extremely And has lot does and was one, for

view and it arbaclofen. its fund simple, products. been So do we’d going think on the I is assets, to certainly will to these Upneeq growth. then great. have to is perfect in because better, make we right? entire good assets What in-line want of to generic to would We Street. emphasis were understand we beats leverage be is streamline and doing cash our the If growing understand have The internal story very core It forward, the going conflicted it our we the support Trigen growing in take quite our company hard sense. which the Shareholders a portfolio trying would a get forecast, to offer is us at look that

the third about that did the what So we’ll next we earnings story. talking are call we fuel when on quarter, to after be growth

divestitures like we So if would entertain company long it out certainly any short, just story made there. sense

and it continues garden treating and how we it want cash, of water sure we’re like it’s and we’re to it produce care it, make to treating it. a However, that’s take

Greg Fraser

Got for the taking it. questions. Thanks

Operator

you. Thank

question the SVB Leerink. next of from line comes with Fadia Ami Our

now line Your is open.

Ami Fadia

got for a questions. Thanks couple. the taking afternoon. I’ve Good

the Would doctor, for you currently a Firstly, who about Can see the that you just come about them of how they do for and treat potential see the there, that, see that this elaborate as you identify do in pull see yourself patients that you asking more anticipate are on talk that what question Dr. you identifying a for Cunningham. patients? So and just candidates you percent market growing the good patients candidates product? can would good Upneeq? helpful. How as for or you patients learn maybe do start if you be to this you

Derek Cunningham

thought Yes. detail that That’s about. in something we

up going Doctors this could is there new because doctors. required and to point intervention nothing intervention, And with done. it be they to historically surgical a point happen think thing an a education I is extreme that significant pathology until these first a bypass simply this be understand is has at this the had was no think until because that and mind to so that there’s shift

past they they go it. it, downplay So

be as going in hurdle of going acquired demographic is So The is and certainly physicians your a going be spending to unilateral demographic quick a on the to something surgeries, like of cataract what money there that’s And most blepharoptosis is physicians key to bit procedures exchanges, to that’s than be far and key easy educational lens also refractive tool about as likely age-related. market look little talking for. with you’re that’s reeducating amount a because our more bilateral this. that

patient baby going that are going And so an to seeing average to practices be there easy transition type and that that’s demand is the for boomer be your base.

demographic The us least is second side, it well. but how this to surprise by that eye we the product talking looked cosmetics was when and raises a you’re know really the not at that we going don’t at really about here as took transition and the whitens eyelid only

anyone. calls gotten patients. cosmetic want had we’ve got this going – it that to be to I TV pose it even for gotten so it from people question difficult this an not to out that’s use from sure because haven’t how And on I’ve I’m you I about gotten And purely people to about calls opportunity calls use want talked to never already reasons. to personalities to who and want somehow gauge can who I’ve tell – air. these to

all six dry issues. age-related will of that develop types to to starting are an there’s so have acquired patients – an a the average are probably average day practice start practice, see reading most to the eye, require they these on these because need the patients And glasses, blepharoptosis are three about patients that you’re these eyecare, talking they cataract, they

is other pretty for I to the to after be patients that steady to second while. doctors. their voraciously quite a that to before, up many thing one that’s have interesting talking eye be you to a going to as this, very that a mentioned will that do stream And something, to the mention there suffer this me reeducation market with because seems is one be and heard Like bring if and I see. is of more So said, not be you going that patients going

ultimately is greater So the right. DTC or patients there be some road when is of type you’re growth ultimately themselves. the within to down – potential where they’ll exactly a is built either There for the doctor going ask there awareness

Ami Fadia

be helpful? talk that. And if can on the you to business? the arbaclofen strategy from opportunity your just just maybe the around maybe question margin. handling the gross you of for here second to two-part company the also you’re that – a readiness may evolutions And strategy see of launch to what in a the follow the a sort a a kind do Got business around while of year. do evolving it. a question How see That’s Maybe the perspective different would maybe for where phase do the looking see turn very So helpful. you in arbaclofen, on of point maintaining business at it business then you the up Upneeq. thoughts how market and you going Brian, you focus I and quick base business of have those at there’s and be sort

Brian Markison

Sure.

we’re really quite with opportunistically. looking So at arbaclofen, this

all we and because the of have research medical clinical mining scenes trials Our our spasticity database the quite largest development data I MS the we’ve affairs we developed now of information believe on group, of and is that all enormous. behind world’s busy amount the through is have trial clinical

out very is going that to important. be getting So

that beyond premarketing, any in not of prepping the We or money effort marketing that nature. are spending anything

commercial do show-me basically perspective the on handicapped asset standby everybody remember see now. from there it’s we a by with how story We out a the because FDA, to are and is

into company very organize this to with take the support neuro to will little we the for and space kind the have of that the launch product it asset. So itself data

ground again. me shrunk the We available when highly team or organizations will for have off many brought lot you be choose a recently and we and a times tell of marketing qualified this, commercially selling to bring Ami, up sales there people if should up I believe

there we’re So now. not

We all non-personal we not telemarketing they the channel, spending very channel just and R&D market then it’s perspective, there, information are with getting there in-line else prep and through publishing label our out any the really about with from and data, efforts But we everybody do. see get supporting once small products right we’re like where as commercial now. medical we’ll the to looking are. money But expand a arbaclofen,

the time we believe Now we different there’s asset other the spent and that. lot really though on any of that potential you I’ll I is for thing haven’t tell that enormous this know a data in with biologic is unfortunately for care. treatments this, but fact that many to spasticity there’s despite patients number to verify new that are prevalence of available growing the from MS pull sources the

I a drug So it major better But that’s a at given does think take as we’re the day, and is opportunity there’s that twice going and far as to here think organization. I with tolerated this only time. be to a willing so

Ami Fadia

Got it. Brian. Thanks,

next that How question couple margins. see this quarters? in you do it I gross it the couldn’t level the on clarification should was asked catch last be? from the that Is the everything we quite Just to progressing of expect earlier?

Andrew Einhorn

One forward influence quarters. factor the gross nitrofurantoin margin. as going are royalties, that earlier, that will some of like the things I future products of will heavy is, less in of couple a become mentioned think I the Yes, a

think down do we That it. have will on-stream, across unit think I pricing with comes be that slightly as may as portfolio, Upneeq, I production be obligations royalty the the costs replaced And However, higher. there. comes

So as a be one will things offsetting there go number we another of forward.

Ami Fadia

Got you. it. Thank

Operator

Instructions]. [Operator you. Thank

next line Barclays. with Balaji Our question from Prasad comes of the

line Your now is open.

Balaji Prasad

questions. Dr. Good Hi. Thanks for of Thank A taking the company. my for Cunningham and afternoon. for couple you. questions

an such when if some like ideas products First, Dr. or So and were on excluding that which aesthetics? of extended primarily this clinical that think analogy Cunningham, Bright which had larger seeing the any primarily on you’re to I in products question, can samples, [ph] the ask are draw Lumify an I how Lomb seeing evolved. Bausch this you’re life I’m pipeline + Eyes, you

benefit? the that clinical practice driving such eye a what around will in the any thoughts you’re and dry be in your Secondly, Thanks. mechanism benefit seeing of

Derek Cunningham

Lomb we happened Then To Bausch diluted six glaucoma and questions. an for before for excellent were that speak of Yes, out years probably XX whitening diluting to years. aware seven Lumify, what is or a clinics really as been become had B&L was we that all using drug + our eye doing and been drop it that have became it that. giving in we aware Lumify

become every an we And high there it physician a aware was barrier country of was so in relatively a at using there the all because product. it easy it and before capacity were commercial

DTC And in so first two already Lomb and use That the thing sighted support were they not of when or knew -- do had know blind product than with the their the physicians patients dismissive doctor with Bausch causes really were them campaigns. market The do education eyecare to are getting to to familiarity that they released is like not that also it, the + be ahead very they product in play; to they products just that keen second things acceptance. gain to that more one or order being of in thing them. prerelease campaigns by had was the doctors

commercial when second right the about and you thing the in formulation. pharmacies I doctors eye ends like previous that’s remember with any we something of talk the it there, into eye but probably a that diluted had analogy use that immediately some or whitening an in besides then version this in because not uniquely had setting went has think specifically have once this was where And was Lumify, ago early So into experience access. product this even years

weeks before was had the months released of doctors access into early stores. to it So

will be and prescription by different And signature. product as a so because prescription require signature, be going this a is approval to to it’s the doctor it going

Dry comparison constellation direct and the market, one eye I growing when I complex, interactions prevalence its a relation like basically is we know was the disease work. comes second pharmaceutical to it can’t in don’t said, is so its eye. thing drug there. how And growing a and draw thing to And then dry

a the key is eye So eyes. dry and Theoretically it’s to almost I you symptoms really tell I red patients of can’t all one say how work. of it’s can going vasoconstrictor complaints,

that So because a increasing on certainly for eyes that But the not dry they of negative to the use have eyes. uniquely. story whole may that’s want or effect up conversely may this fissure opening palpebral

positive to were look other would So really powered noted things at features eye and at unique we’ll short-term to up of to negative. trial a did see. are they in these did look show The was clinical dry nothing affect that or really not although that and some this, it they studies have at look symptoms

direct see interesting really like I said product, on that’s ever to forecast. it’s but been so, hard this has anything I as And before, said, a to I so that can’t the question comparison market

Balaji Prasad

for consider the program what Dr. Secondly, expecting about either New reception in we Thanks, the on you direction? Thanks. company, state. the last That helpful. early Brian, Jersey of month inspection kind discussed strength field to pharmacy the And thoughts your achieved? Cunningham. itself is of by Has change those the you’re been in force the experience would

Brian Markison

to It So went waiting with regard pharmacy our license. for the inspection, inspection. had well and and the we’re we the

day now. any like it’s So

on that. about and of We’re kind pins needles

the look diagnosed other to found bit coming just XX%. we treatment of backtrack When dry trials a through that incidence The eye. previously all eye respect active thing we I was dry to did, the that clinical with into we tiny think

there the a prior reported had our or an entering of found dry event. diagnosis And eye basically what before during a of the as trails. X.X% was So eye of subjects we adverse then XX% trials incidence trial dry

and Balaji, administer I’m because was this your I’m folks or you understanding relatively vehicle placebo. to I I forgot I okay probably the product is don’t sorry, profile think as with So to think safety question. dry eye, third the same

Balaji Prasad

of around to strength early force consider thoughts field experience program change kind direction? either what your in would you reception in So your

Brian Markison

That’s a very good question.

So clarify, direction, The to the to the X I Balaji, want part and change just X. last -- Stage of in get progression just I either that. to make Stage sure

Balaji Prasad

see would or it perspective very at see OpEx Coming adding field from to otherwise. reception strong force if consider an you if you

Brian Markison

Yes.

were we what thinking. that’s So

Okay, good.

visiting model day what patient for see. practices earlier, out feel we a exceed. a that that over very low to strong Jamie sales our today bar and in pointed per the have shouldn’t think a we we And we’ll be our expect team or as from early that fairly to have short going softball meet be difficult we’re already term. Actually agreed the it’s So to

think to Paso other the and Texas. just would in in factors right of can’t now be Houston. is in Antonio the pandemic, do of Cunningham San is because out force full I and than and one love we we it’s it El certainly California different Where and state gaining also the Dr.

all affected all different and they’re differently. So they’re

of gating here. that’s So the part

be I doctors phase it’s if enough learning you be us first is going very phase. high. and enough the dial to seem really should us going to we the So that find think we an And the early receptivity thought. than will, think would expense indicators early a time is take is phase, practices to But to up to the reception better or get experimental to for going I that

Balaji Prasad

Thank you.

Operator

like concludes Brian you. question-and-answer closing the remarks. today’s now over turn Thank call to would I for session. This to back Markison

Brian Markison

RVL everybody in for of welcome Thank Pharmaceuticals, with Osmotica. you. new the future and hanging Thanks us to Okay. there

Operator

call. conference today’s concludes Thank this gentlemen, and for you participation. Ladies your

may You now disconnect.

RVL Pharmaceuticals (RVLPQ) 11 Aug 202020 Q2 Earnings call transcript