RVLP - Earnings call transcript Q2 2022

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Operator

Good day and thank you for standing by. Welcome to the RVL Pharmaceuticals Second Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator instructions] Please be advised that today's conference is being recorded. hand over to Lisa like now the to conference Wilson. I'd ahead. go Please

Lisa Wilson

XXXX. Wilson, RVL. you, Pharmaceuticals' are detailing Operational update JD This the and Lisa the RVL Welcome RVL’s call. Financial Schaub; Relations financial This quarter RVL is release be Mike morning, company ended issued June Thank Brian press can months to DePetris. Officer, at website webcast XX, results Chief for results second Executive operator. Investors Markison; a today's me With release press on XXXX Officer, the financial and the This call of three and Officer, a Investor rvlpharma.com. section this call Chief of for Chief commercial through Interim accessed

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

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

will the website, adjusted year EBITDA call of loss net webcast end available the a today’s at tables from for continuing rvlpharma.com. reconciliation of on or release. this press RVL’s operations, be archived one please see The For income of to

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

Brian Markison

Good everyone our you thank morning, and for call. joining

can Board joined Ms. medical has and Alisa. held eye community business. has on Food the broadly by US foundation acquired care been brings at Directors. aesthetics Galderma Senior years for eye and the Drug and the Leadership we $XX.X our or droopy recently patients dive of we we opportunity is the announced Before the in which the now XXXX, raise to to week. it I'd belief back importance, our to the product, add extremely on to markets. need million because without This that the Alisa to last quarter, from seeing and customers we're like come UPNEEQ, growing by experience of approved Lask equal capital over response our be and like the have important to Allergan. comment our into run positive I'd Welcome is playbook accepted note note, insider-led illustrates treatment of also and in positions and pharmaceuticals through the anchored Lask financing XX in Administration of of which she the of was blepharoptosis as counted commercial

educate the over one for results aesthetics. sales product ocular that, call necessity themselves. Mike? terrific medical turn practice, product and and a our a tempered grow our in experiencing said, aesthetics, we to one UPNEEQ speak we and provider I'll a only, With That a and receptivity the new our the and to turn excitement product we a by at as the one category, train to of new is focus to our time, are As is the team. Mike.

Mike DePetris

sales for in the million by goods commercialization first for reported $X.X driven On and million, Brian anticipate on the contingent into million to This increased quarter million and revenues, each sales to volume higher you, higher by licensing of to offset to influenced continuing quarterly $X.X on providing to second $XX the for QX sales, commentary form operations, the by markets. by our quarterly the market. the increase sales that decreased with a cost begin licensing by primarily by results revenue a XXXX, of during I'll product million million specific an references of found effective royalties million February, in press markets can XX% million $X.X quarterly for $X.X of which gross XXXX, UPNEEQ today, Santen second to XXXX period. by period, our of year-over-year appropriate. the UPNEEQ to the mostly XX to Net reflecting morning $X.X aesthetics second that quarter first good period. be revenues XXXX due costs our Q, Total XXXX. from XXXX volume, by quarter of related Thank A sold after unique back of everyone. expanded XXXX With percentage today's QX in to to quarter or payments. or regard filing increased profit compared as XXXX release. relate basis, of milestone product of sales the partly $X.X with highlights absence and care eye info XXXX, XX% increased of $X.X million largely period, to was to Sequentially XX% to the the report reminder increase SEC in to and our in later period medical grew primarily Total in $X.X due This XXXX was we of of decreased and UPNEEQ. entirely increase the from million in sales UPNEEQ $X.X due earnings million. quarter $X.X to

sales expenses XXXX and SG&A by expenses XX%. primarily in unique and net commentary restructuring approximately fees the Excluding the decreased on force. XXXX period $X for in to and Santen and $X.X unique expanded decreased by we the was income $X.X million R&D relating for decrease impairment decreased R&D expenses profit were in million. XXXX, that our QX legal $X.X lower, No recognized compensation The second our QX higher million. The marketing $X.X offset mostly $XX.X primarily million for XXXX period. charges million. Rounding lower out million licensing operating to recognized were of $X.X of quarter to professional training million period. the impairments percentage in income, to our $X.X million for reflects by costs such reflects the partially expenses gross SG&A of of other UPNEEQ to million $X.X

Total value income, the $X.X non-operating below fair in change million contributed in liability. $X.X under QX million XXXX largely the asset operating warrant total company's Moving prior gains program. activities of net debt other of of from of in $X.X disposal million, million a consisting other costs of reflecting of income, restructuring and the activities non-operating recognized $X.X XXXX primarily contributed period loss a year

our update. to sheet Next, liquidity turning and balance

and of of As cash million. equivalents XX, held cash XXXX, June we $XX.X

Monday, its million, $XX million. each two company at obligations $XX.X which on and executed August quarter August value debt and carried On long-term XX, debt, on of legally of total sheet fair announced million amounts financing end of has last our is closed aggregate including financing separate $XX.X Our the at due principle had balance Thursday, transactions, XX.

an note Firstly, placement meaning proceeds. company in outstanding approximately issuance, after-market Take share on of ordinary Monday's nearly with the placement generating our no shares that XX.X discount, we an of count $XX million gross insider-led to private shares. closed ordinary private subsequent million roundly XX.X thereby reflects million aggregate

notes an million. issuance aggregate principle company and second of accelerated Second amount $XX in concurrently, trench the the of

amendment our note an Capital Following with by purchase agreement funds Management. of managed Athyrium

commit an under minimum also of issuance target. to million third notes Importantly, through a XXXX RVL's the to of at from to and notes election amendment, subject of the revenue trench $XX up Athyrium, affiliate April agreed

complete our description on current the filed conditions our indebtedness, Thursday, For of X-K and report and our changes Form material SEC private please a XX. placement of reference in more August terms on the with

XX-Q million Our is $XX runway the over entirety copies development, with report cash our some upon trash and of thereby I'd like insights. our to to XXXX expect and advanced admittedly turn that, With UPNEEQ. extend UPNEEQ. proceeds, the through we commercial injection call fully variables to commercial is for in ambitions without assured meaningfully notes. believe under we've reasonably we are runway cash JD? invest borrowing third to the it on forthcoming our the for agreements. to Accordingly, liquidity continue near-term act by commercial for JD Form or Buoy believe There cash will possibly on gross many of include the play, possible depending relevant in quarterly of but our

JD Schaub

everyone. Thanks, good and Mike morning,

As office conviction These development patients directly well the you all states where is virtually dispensing UPNEEQ, future the as created. subsequently provider our or anchored opportunities. and any ability unique multi-channel their heard within provider the have as from business channels access for growth the meaningful strategy setting in pharmacy in through to business Remember, as our we product have growing reflects prohibited. Brian, direct serve this levers UPNEEQ progress by

month. our manage expense demonstrated also quarter, a and continued care, operating Beginning have we expansion going to our and the set broad build while and that. back acceptance brand within adoption, during the awareness million with Beyond growth, launch, utilization our robust indicators a importantly of eye range out leading just of on the sales foundation and delivering $X commitment to to done

what quarters. like prior remain we've experienced in metrics lead Our

a to experiencing results over owned week, aesthetic we awareness base launch-to-date in tied direct launch Continued prescriber time reallocate confident this segment to growth base XXX excess per our towards care for continue bringing provider fully Of and are utilization with within solid broad medical to foundation solid partners. expanding the investments the note, prescription efforts of new paid and channel. growth we dispense the within prescriber of will XX,XXX paid to provide the and through a are our our accelerating within accounts our eye first coincide year-to-date growth reordering pharmacy, prescribers aesthetic

second efficiently Turning represented this our onboarded; belief quarter and sales XXXX now more a results medical We the our our reordered with year. XX% points the enthusiasm first by strengthening the full locations of In of the than finished of our opportunity. of we quarter, locations the further the as team this in Notably, existing our to highlight by short, growth confidence growth just February quarter onboarding brand. more sale promotion, those execute that at validate time QX. the XXX% fundamental only since end and are thus over confident of growing as reordering seeing accounts the are in The our than initial we our second launch; far of from of providers experience possible. aesthetic limited beyond commercial least expanding once and is their stage, in given the ability and patients. At quarter expectations to

As protocol. invasive facial for themselves. a minimally market of continue we move on and see speak results building focus the the forward, what administered the routine properly, establishing part when can UPNEEQ or is non to remains aesthetic From we the

scratching teach the way effort to in each light a of patient proposition, and time have something which differentiated aesthetic practice that is what of of option. and market we in the overall less practices, far, combination XX,XXX their our therapeutic many simple potential becoming Thus and the around than to So new objectives represent of margin perspective. do and XX% practices addressable those more how commitment, and them size outcome particularly centers penetrated The being the there. within a activated, within compelling than potential Further, been business streamlined the minimal treatment a help significantly of have only just learn in surface busy within value from insignificant them believe supports we we're practice. out market

having confidence integration. to initiated We outsized expect treatments and to The UPNEEQ is continue with the efforts in experience world since fronts represents. XXX,XXX the support a we launch acceleration increasing using both robust; believe and real on over a product as our educational continued patients evidence opportunity adoption along and increases

We injectable look group, positioned has Lastly, closing us sales I'd keeping the everyone And The existing as there. in sales with call at we of turn a organizations Brian of and one and expansion in accomplished this like aesthetic device to and time, to on remarks. which mix progress. back our out teams. July, joined experience of and robust compliments keeping wave trained and strongest to belief forward highly the managers, the for onboarded leaders with updated majority this talented this the group first of

Brian Markison

over thanks now turn if call And don't to everybody Operator, we'll mind, the JD. Thanks, for questions-and-answers. listening. you

Operator

Chen Please comes go instructions] from line first ahead. with Louise the of [Operator Our question Cantor.

Louise Chen

my this Hi. progress and Congratulations questions. all in your taking for quarter thanks

here. had few I So a

First guidance for thoughts color ask last you And was And basically of portfolio sales then objectives of about in one product like I key front. in beyond on phasing what to the third wanted I and is any expanding then your or thing any to Thank quarter ask on your fourth you year? UPNEEQ and your are the were thoughts any accomplish the before to you. end thing that that was second you'd fourth quarter. wanted update the your

Brian Markison

the for Thanks Louise three-in-one.

everything we've open team. portfolio. accounts So We to the to with let's do can that new would we do products to just the got start think that, love recently with and have easy right service our expanded new the accounts but I we now, one

As JD of earlier, barely in XX% we're market. the mentioned

lot So, we complimentary products front a our are and open to objectives looking that's in but at us people we as we've us one our with know add product of major well. of got always and we're in remain industry the and looking work always in hand, of nevertheless, the quite

to major bit and going accounts, So focus I certainly lower we've barely the with We our folks July hit a our reorders the of July takes now it us, number it We right the active time folks to the month industry took was see heavy the the and Other has dialogue surface. objective end out didn't remaining train of those regard where at is of got on an the on, was our team July at guidance, With and scheduled new in driving support until we're to we'll do we've singular with think very expanded range last they them because opening a that be the but phasing. scratched our really know said and XX. initial the vacation and of a to month. month, during the originally have it macros street end week.

it. we're we year stellar, about range will well gave we Nevertheless go supported our that So, we our certainly would a of reorders on good our Look, what Objectives think third add a bit end guidance still a would growth tell our low it's new and on we're I think aesthetics. facts the straightforward, really have to did. our media given question. tempered before really seeing it, good have and and I we've of what with but very as thing said, what opening quarter third other and record, launched don't about headcount we're be an accounts. the everyone July, [ph] uptake drive the and by me new very ago and as because seeing I me in they excited accounts, accounts, enthusiasm hit Feel was viral expense there and think into collaborate open by in and the almost and more industry rate we're is remain think I I as probably open and manpower prospects industry. the it And is I'll success seeing but social else

Operator

with Tsao go H.C have a of ahead. question Wainwright. We from line Doug instructions] the [Operator Please

Douglas Tsao

and consuming new opening up, and teaching terms environment? and to then the some and of just sort teaching biggest drug of sort on you if bit, bit just morning just implementing? time of little good speak best element? and dynamic profile model taking figuring lot and you're a the you're focus integrating also, what the the it it in of a account Hi, ramping of a result, there out I'm Is or that seeing the questions how and on do to touched sort as the or it I curious and, little about the really Brian, seems them given, be is it for congrats macro but thanks economic could you in what see of of the the a know you the most maybe them about to progress the get

Brian Markison

good because Yeah. cadence we JD voice handle vacation travel to account to their the it openings the have, and with we macros, there. morning. and let and again, hear on Doug, of that thanks I'm focused folks on July this Xth they the their not I'll your and regard Look weekend the vacation time. barely scratched know the around surface, a extended but lot were that

of were expansion but brand a it the the I was it is simple all quite end just the vacation, macro and our focus decision to to building my people but from very what on airline and month us, the for frankly, back So industry. not our as support, returning move said,

ahead. go JD, So

JD Schaub

Yeah, I think and good morning, Doug.

try an aesthetics at that getting in. it comes to the not response, enthusiasm there's about counterintuitive product providers, and and feel always the to looked to they etcetera, lot area tremendous. building is and a at robust, the or market they're and it's but this -- we've haven't over staff, think, The so, talked is itself attention ever staged a something I of really experts we're this that the think we're beyond face challenge, product, and when paid little new I Everybody because is, the look good. to them the also that as it's this bit in wants is accounts, before the a medical approach phasing

they complicating over it, of a opportunity the of these while bit ptosis teaching the that prepared robust the patients and for and it of ask. might product, magnitude their so for eye questions of bit And the they providers little might grows for kind not provider, talk care so redefining it's about that an when of the nature the a care confidence non-eye feel

it's kind something have if will, of their a the it's ability that new them address helping any I long-short and new when expectations that cliff, concerns of and and over feel you to and very get with you're patients that's set natural talking So, patients, about good right about interact market. education, comfortable think feeling natural

Douglas Tsao

that, follow amount understanding point of clinicians of severe? minds full clinicians given the more just do their about think the lid can ptosis, that as just you some is much you list find realize of quick to or achieve aesthetic something fact necessarily to JD, the in up an sort they don't of a And benefit ptosis your that

JD Schaub

clinical Yes, I more think six that's almost works it. months pictures can and or side have providers hear and It's the and that performance rate studies to that, it half experience with they in not over a is range started at sound to in this disbelief, understand before more more didn't bit truly safety nice, it studies. surprises I And I has. yeah, aesthetic about right be medical real product hand over if than a clinical must bit trying product world of world or wide silly, in efficacy last that that so has And that a I we see because not the an and last probably thing, probably really the as effects a are the real of that other AE and have the teach little market, the so less course of those build think, very to no rate in and we're comfortable we half robust I'm consistent like, is but year operating and space year the try a seen environment times the very that everything a but our low to actually got product. reflective, think this And selected. you've this validated already almost of patients, impact sure a we and after are it and little think

Douglas Tsao

list. pretty product response your overwhelming unusual of performance, you the get, to some suspect get much I everybody amount of get that to so about just the since in see you some point JD disbelief rate it's And, terms

JD Schaub

being begun and it's we first product number do that kind into launch accounts reorder a everything practice, to it's, as in of what third the And that's doing able how I the part so and to reorder exciting. of this see, patient Yeah, ultimately think, else growing make of they're on a the seamless then that of I confidence reorder fourth look, months as as a what and doing. reorder practice understanding have it's really from is the because of a and need, And of to about it in it, turns particularly introduce accelerating second think well. true also several talk they're a additive utilization to combination and

Douglas Tsao

you Okay. so Thank Great. much.

JD Schaub

Thanks Doug.

Operator

Prasad of Barclays. line Next Please comes question Balaji proceed. from the with

Michaela Diverio

question. Hi, is Michaela thanks for for on taking Balaji. my This actually

one aesthetics this Thank quick guess care right the question remainder what's I percent from me, sales eye for versus year? just, you to how evolve of from that the do up of you. Just came then And expect now. the

Brian Markison

hear to Michaela. your Good voice. Hi, Yeah.

now. I aesthetics toward mix exiting And eye more roughly we through we're will see really think aesthetics, soon. as like And of can't be QX, then XX-XX. be we're suspect a probably shift the as I year, I that XX-XX, march because running XX-XX is year, at but to care. the we give greatly the you we're fairly final going at But I to think the end playbook to would the number I by

So rough prediction. a that's

Operator

questions turn his I further back final queue. in Markison the for And I'm any showing to call not the Brian will thoughts.

Brian Markison

everybody under Thanks joining with call belt our for really financing to thanks today. operator. We're drive get going, recent the our our ramp. excited And

forward to look you. on with mentioned, calls. JD and is response speaking this to future product tremendous As Thank the you we

Operator

now ladies Thank today. our Thank you program disconnect. you we may participating and for and gentlemen, conclude And you. for

RVL Pharmaceuticals (RVLPQ) 11 Aug 222022 Q2 Earnings call transcript