ASRT - Earnings call 3 2023 | Assertio Holdings, Inc.

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Operator

Good morning, and welcome to the Assertio Holdings, Inc.

Third Quarter 2023 Financial Results Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Matt Kreps from Darrow Associates, Investor Relations for Assertio. Please go ahead.

Matthew Kreps

you quarter joining XXXX thank discuss today and Third Assertio's financials. afternoon, all us for to Good The news our release is now covering our earnings on Investor for the page of website investor.assertiotx.com. available at this period in previously encourage other Senior now with discussion. With new and Chief trade and conjunction a CEO; Financial would tables Peisert, Chief Vice Patel, Schwichtenberg, are today's you release distribution Officer; me the and I market and commercial our review overseeing Accounting now in access, Ajay Dan President today activities. CFO; and President to role Officer Paul and pricing, and Dan will the and financials. and Paul of provide an open business, and the our remarks will review Ajay overview the for will questions. we open that, After call your

statements filings risks guarantees future the SEC. are section including report press as During the of our XX-K. forward-looking statements future These Such of release those regarding our risks on in this described will with noted other call, fully annual management and Form not other performance. and Assertio's make performance involve projections and this Risk other more uncertainties, sections in forward-looking well as and afternoon's Factors and are

over any may Dan. update required And those forward-looking from differ Acorio with to results that, obligation law. And those by turn or projected the call specifically now in actual Our forward-looking the materially statements, as disclaims intent to statements. except will I

Daniel Peisert

have -- expect by the not we not And Thank to that us results these results Welcome meet am goals nor afternoon. pleased as the know our expectations you results our set us. the Matt. third you, to aren't business. shareholders we joining We the come everyone in these from I for quarter. did this

reminded INDOCIN, our that below commitment these were a we to a they're when stronger the so rarely for the quarter, reported we this this We to put and smoothly that internal business though is launch rationale business quarter, sales challenges, and . Even transformations for will significantly through. evident. for path viewed the ourselves build way disappointing work merger this and with competitor expectations could on the our of one ROLVEDON While weather are I've not linear. go the in diversification been generic our

ROLVEDON of field brings calls prior top which of support disappointing relates leverage improved promotional date operating to with to struggling results and costs flows. the This this a with quarter set that addition, is enhanced on and expansion to instrumental in of completion turnaround, income positive competencies broader future. access continue where itself nonpersonal our cash in the also their In has cash apart. positive quarters, a and it to we operating the EPS as part and vision market operating of team for Despite onetime model, non-GAAP EBITDA the flows. I've reimbursement and and our are many been are models strategic operating the We'll our for positive flows. operating this whom Spectrum allowing and earnings clearly reported basis peers' merger, associated profitability has achieving Assertio many our us cash line still listened adjusted margins significant the of

experienced I've sheet joined been X cash strongest liquidity has are in balance position greatest now it last and net in our position the years. sustainable the addition, In company. the since the the has We're company

we important X only Assertio's for we're we just rate due This is transformation. paying look on X.X%, under remarkably no The as covenants isn't years. continuous to our debt. and debt have Our is

I've as growth, for the and management the over environment on distribution. ROLVEDON, avenues we and to advantage a balance handing trade and access, path Schwichtenberg positioned Ajay current addition role platform long-duration we're business oversight as that Officer, other Chief additional career organization a continue seen we're to to perspective duties to in a us the and take in for our acquiring team changes of Sympazan sheet my longer-term CFO growth. Paul and acquire stabilizing business our The assets be diversify for and In and from to short our to both will strong help long for will taking find Patel, term. our market well is some Paul both to business, this Accounting direct will on base our pricing, also environment. Today, announcing new putting need be in assets to in dose with and Otrexup especially assets

interim oversee more follow for and of have our direct a In the into recruiting our basis, an addition, that cash gross input we're net for the are team. operations oncology This commercial us to areas management going leader, while to the on allow key forward. and new affect critical to team flows will business

organization We development other of can key of opportunities the the external volume expanded to so as also to off that adding operations few effectively date, am not confident I to we Ajay day-to-day for available us Both our the the while will the well be manage roles to success and as growth be taking a focus future there'll business and their new roles. access we efforts. Paul our business increase in catalysts and critical have been

walk to I business call the we through Before Paul, I'll in hand what of saw some over quarter. this the

We guidance will not today. our be providing

decision nonretail competitor, version more we recent FDA's primarily by both of and and driven generic we initially to yet of into the and will no give quarter the the and we're to deal curves, ANDA refine the There's you products amongst of this good weighted models. With the them for add on pursuing market and it's built recent XX you number drug. to experienced to dosage an sales that general the based losses pursue variety on decline means stable. a removed action price X respect the available provide product single for Category as We're the a remedies list, pricing, such there launch, to individual to internally own business on than made The generic has is forecast not in we're X regulatory not which believe as formation compounded is factors on the how and of variability we erosion like compounder ours. situation analog erosion We've has a attributed a Relative at to However, in compounder have of is try more your been product. to and competitive of from each these introductions just form, generic what up INDOCIN, to FDA which market market. list. commentary projecting indomethacin while context just also the of effectively volume the months competitors the some the the market against been this will some only all assumed

with do out For reliable market but X/X there brand very an at year price. to this that show product. can any example, competitive X And This for this suppository retain data those remains versus erosion no the entry. volume isn't after even of competitor between to fluid, the analogs good illegal compounded X/X

dynamics focused about matter maximizing on brand. this in for at believe no answer value to our of respect still the And play long-term this attractive is what ROLVEDON, are remains we review is the Assertio. With So the market for understanding single-mindedly evolving. mirror, an here we

As for the drug back-end ASPs quarter leading weighted been performance. many visibility end you than typical the to sales of the are pattern of the has after aware, published, very are quarterly lower towards and

Customers million million product in own X In changes not grew largely months QX, much end quarter, X been at as which not different. much of quarter for to the at was permanent the J-code demand. revenue to existing be as in the inventory, the X QX, short-term the at in own aggregate and offered months the QX, calculate to which we by masked to end that was we reported we for allowed benefited level new This that X demand sold. The the This months $X.X of $X inventory. was to now full customer of of end or reimbursement much was we this quarters and less X shift end anticipated, months ROLVEDON at have April was of trend approximately have hold than and the them customers. third the product, incentives, in does the demand appear in both underlying

volumes. Assertio The is may of extent to at customers. did QX most which intend does further this these not offer incentives QX not in of to continue or them on time. impact a estimable known not have and offering This

is competitive still maximizing While market, attractive, ROLVEDON very potential. is we're to it and a dynamic this committed and

the broadening working flows, targeting incentives customer addition that In we're cash rethinking removing capital and can ASPs, customer and to short-term affect base. those negatively

addition, In with respect evaluating payer our we're coverage. to strategy

development been tactics example novel is similar. first dosing. being chemotherapeutic is different long-acting of and commercial dosing ROLVEDON is One in years that cycle the product to It XX over enter the and studied algorithms It's utility space the Beyond in may to that also and strategy differentiated in not also have entertained. ROLVEDON is GCF molecule. life a yet. regimens same-day hasn't

able would some have made. been of same-day available the get call We now 'XX. acceleration data recruiting We're And changes open-label a the lines have or At time materially we to Phase of CRO. trial estimate management once of an late not early upon dosing we'll the the enrolling expansion lines. shareholders. I'll phase elected be improve the hadn't until those ongoing We've based moving, looking to better those move upon in enrollment been time and the the XXXX turn to over the cadence, Paul. I already enrollment the into continue the we've noticed trial to to communicate pace to to a rate of

Paul Schwichtenberg

you, of review will the Assertio's Thank quarter XXXX. financial afternoon, highlights from third Dan. This I

quarter decreased earnings primarily of XXXX details, by to sales for financial last in entrant million net sales quarter. ROLVEDON ROLVEDON were mostly due $XX.X prior product their driven CAMBIA Spectrum. please XX-Q. Net release were net the the year generic of year The full third million and quarter, the $XX.X and generic were respective tables acquisition Sympazan, from to family primarily quarter quarter increase versus in net product the $XX.X offset sales which additions for prior and declines million million quarter. in product quarter year net in prior third following our XX% by X For of refer compared the of statements the months the entrants. the sales in the sales following the and is in $X.X by to and the INDOCIN INDOCIN

offering net XXX quarter. there sales result, were X, which quarter. Otrexup INDOCIN April for last several with indicates channel a Inventory have second prior the which at in levels primarily will portfolio was offset in percentage increase decrease the year change expenses in quarter, loss a margin reflecting $XX.X quarter. in the million longer million net exclusivity expect in inventory due and the third declines the year the third due SG&A volume. favorable from to CAMBIA balance ASP volume X% We're of the quarter in million up was $XX.X XX% improve a in sales incentives were prior August. Gross versus lower year $X for The Net the Otrexup to despite and expenses additional January channel million at versus million impacted XX% the Overall, to quarter. Our adjusted prior from high $X.X channel the $X.X and of Sympazan benefited was in million, the the were for quarter quarter $XX.X the third max, in were X.X% of the expectations quarter last of prior the and versus to quarter. INDOCIN by versus quarter been stabilize the prior in year from in were net prescription were J-Code to and increase ROLVEDON the dynamics CAMBIA. or and a offered of $X.X year the no that down $X.X year the million partially third of fourth million prior Adjusted quarter not is product versus the reimbursement, inventories of that quarter due and incentives assessment $XX effective $XX.X and mix, unfavorable ASP in the reflected higher compared SG&A was there Sympazan launch XX% demand these step-up initial increase the sales prior third in quarter. primarily in sales million Spectrum net acquisitions. as quarter in end sales in early that reflecting point quarter. net compared prior quarter changes year contributed the end operating to The and third merger quarter amortization customers. million to basis permanent in quarter the in SG&A that the as a achieved, the third short-term

We that support are ensure to we continually evaluating have our of operating our for expenses each products. optimal

seen believe less the that million businesses We with $XX than and have between synergies expenses and operate can operating of Spectrum Assertio incremental previously communicated. we

prior Chief the as million higher quarter. development to opportunities. Adjusted and call our accounting along $XX.X Sympazan. we've $XX.X Additionally, in was Financial during future and quarter with support adjustments this I Officer, compared year-over-year the of primarily for in have sheet. continue entire discuss appointed recorded ensuring cash the we business who additions specific over in that which was The portfolio while the Patel, income, last newly quarter quarter decrease quarter and the driven the light point, in with ROLVEDON and to Officer; EBITDA $XX.X to from million changes million will year hand we opportunity third was to along third the spending Chief by the for flows the onetime of Ajay past, done impacted Accounting operating At revenue will net balance by expenses place look infrastructure reduce to

Ajay Patel

Thanks, Paul.

our acknowledge contributions tenure Let partnership. I to me Paul to my forward for Assertio CFO. his first during continuing his all look to as appreciation

third P&L by the was several results, impacted our quarter in items. along noncash Moving

impairment This being us our assumptions, both forecasted the stock level, at book to was there cap consolidated then in an utilized this requires a flows assets to triggered our product million assess allocated Under and cash was which by individual quarter, was value impairment including a market resulted an less to $XXX.X of the charge value. approach. using and impairment comps. intangible market This assets various assets. and First, which led We our income estimates intangible in during decline trigger the our charge GAAP, fair price across than market a to rights.

was a value impacted quarter. benefit primarily realizability. from of expense based entry, the in to contingent of generic the the change an loss quarter of of quarter fair revaluation the in compared in our benefit in million prior of by Second, for The year million a a $XX.X $XX INDOCIN was $X.X deferred driven to allowance in the there by liability of due $XX.X the on million liabilities, million Finally, income contingent charge was their against quarter tax valuation assets tax magnitude assessment

prior in in quarter. by acquisition operating prior connection quarter the $X.XX million million adjusted prior third Spectrum. loss $X.X our related third $X.X million with included quarter was EPS quarter the in in year versus workforce the to activities a the the third $X.XX total income in the EPS issued the and third quarter. was resources $XX.X million quarter. charges Our also of and items, was restructuring net in and in these year quarter the the was shares of $XX the the of to of year Spectrum. Cash quarter, impacted $XXX.X cost quarter in million in acquisition million the versus XX in million $X reorganization last of Inclusive in from plan net GAAP generated $X.XX last compared the following in quarter third a there of The

from last working Spectrum the $X.X The was at third costs of quarter the operating Cash million by acquisition. increase capital quarter million, and cash transaction from the quarter. reflecting end impacted needs a $XX.X flows immediate third were balance

and September the debt the call outstanding of Matt. Our not mature $XX back third the balance quarter turn now end million was convertible does will at until XXXX. And I to over

Matthew Kreps

with take Paul Dan, we for time, community. the the the we'll you, time please of provide question? our first remarks, analyst instructions call can sell-side our At questions, from Thank this Q&A and you to prepared have and listeners starting take allotted Ajay. use and Operator, our balance completed our

Operator

line comes Thomas Flaten question the please ahead. Instructions] Lake with Street. of your Thomas [Operator first go from And

Thomas Flaten

down a I there know could wholesalers. look the maybe sequentially on drill was at you obviously going of this the of event versus bit. $XX a inventory I million just And if little generic was adjustment INDOCIN second from year, of drop quarter as the class curious about we there maybe from how some for kind off. I if was inventory impact Is the the a much adjustment there way maybe accounted breaking that out and would the compounder? onetime there

Daniel Peisert

of have there's we a in same product expect sales marketplace, of good was I don't -- could they shelf level terms But terms in make you but number was another in we answer the for that think think a was want of dollar space There that I to there a impact, dollars, good an available there. have the and demand the don't impact.

Paul Schwichtenberg

in referenced. Thomas, the our inventory have adjustment of primarily. wholesalers all driven to But a specific that inventory really that the entrant the lower as by It's all volumes. view of the Dan it levels trend, generic we The down. the take volume that, just is And kind generic coming breakout is and of entrant volume result generic the down. tied with we our as situation No, don't a

Thomas Flaten

speak, that from kind against the that the we or an versus erosion some of curve but of a -- Got ahead is it. erosion to by, that talked do of then data data curve, blocked, perspective? to your Are sense generic have a market hard know the and shares, do curve And you have about? or come I a compounder bit of is you behind you sense of given so yourselves

Daniel Peisert

sum compounder what is the market. assume that reporting what the a the to new try overall way have we then or up, compounder and estimating flat is what taken. has And the we're answer might assume increasing and us services to up tell long. is market prescription to just data The it the the But delta add taken slightly as

we marketplace the you say in competitor analog to two biggest below as had relative market we've pricing. competitive statistical I a And originally I is, So tracking of impact assumed. would really the The control we're do explained the a within that seen it. have one slightly but that it, of market instead was

Thomas Flaten

just then were short-term the ROLVEDON little that closing more? to could And that one, or it. offered incentives queue. of deal? a Got maybe the bit offered the in customers, one by back I'll by and jump The they final And you to you spectrum the prior were explain

Daniel Peisert

offered one were first the -- roughly were can terms is that the general a week gross of second until Assertio that the offered second of by elected half explain incentives November, for Spectrum them, the sales So payment largely in Spectrum but reported those sales. on There and was in for the were quarter. by variety terms the the in quarter by there prompt I

that continuing. a will that practice is be So we not

Operator

comes please Jim, Your Sidoti go ahead. Jim next from question of line the

James Sidoti

a months think go are? those know given later, and But of formal you previously And you you of not on think idea any guidance. couple now there's ROLVEDON moving of of next on any lot the where have would where I years. prepared us pieces Do now X you an kind for over sense numbers going on you're had

Daniel Peisert

what said going But on but some long not and short are the that of be things to and as takes we'd around the of the forward. that absolutely ASPs this position it's communicate incentives, and maximizing any prepared overall we in that. this for ROLVEDON committed brand. think what going But also get of be. we just we long-term to our a know fully kind to position like only removal potential might we're of investors want need now, with in point puts we for I flux to to And our investors in to is, to it's on not and point a these estimates demand, business, in to for mean handle No, though, remarks estimate communicate it good of a appreciate before right we that a give

James Sidoti

the Great. Can force any that? speed expand market your those sales plans R&D of X and thoughts the also with to going your initiatives? Are ahead you changed comment, for And the ROLVEDON? regarding full you have for investment direct you still for

Daniel Peisert

made have studied I another in as are active else one that we've post-approval commercial dosing well. Nothing that enrolling that taken product team X we things right said, dosing product the and in And ROLVEDON commitment as Those changes the are hasn't studied But already There's is that X this my pediatric we're that has that now. prepared remarks, -- of time. Any are been we there in are effect. in that as what there's are described well anticipated I other regimens R&D, chemotherapeutic underway. there's already as trials as other for exploring outside in same-day to at there's said, the additional yet. been the trials in

James Sidoti

All active out Or for the now you with is products? additional Are on of you right. does for incentivize last issues And find out to the deals? and how me focused this some right additional Spectrum? you then resolving actually go looking are one

Daniel Peisert

the has. that on assets have and respect the saw sure that -- as was we a sure business well ROLVEDON to we into X other the is the we the to focuses business making business additional what that stable bring with we have launched The One can is in accelerate development with August, what caused those generic our here in as making INDOCIN us efforts. third got knew there's combination Well, quarter was of that footing the we business. coming

reason evaluate bringing are us and overall there BD ones additional of on away here based the message we're is lot we're Assertio change opportunities best roles to help Ajay can this And more announcing that sure So choose is front give very the there to will want and position big that in with Because make resources that on the business the and to of a bunch good Paul to we manage their them of Assertio heads capitalize us, some opportunities. additional we in a that's part why and opportunities. get those the you should completed. take of in us

Operator

comes ROTH Henry [Operator the Capital. line with from Scott of question Instructions] Your next

Scott Henry

I Where that you or guess product like X I the a to only curious if sort is on INDOCIN, sense last of be start. given months information. of feel you've us of have at X thing a of the I look real kind annualizing last would The lot is weeks, do in time? you where

Daniel Peisert

that better this. how a guidance. about later of best Scott, But the any at we're going things looking frame up not be that time. now, evaluating Right to position in we'll that be to type some We giving to with commentary answer at it a this general at we're can we is wanted and do time. that

Scott Henry

from of to it. more get to call where And B, on us Just think think Or sort gave point information gradual? of good a curve we just at come you about is relatively happen. do I you we're Okay. different. little open Then this do point What to like a some typically A the steepness, kind that slope any going out it's to I see happen quick? trying going color would if

Daniel Peisert

That think, the question and is, the where is crystal million I murky $XX ball Scott.

seem bit half it's it's you get have the these the once months out still that little when asymptote that of diverse more makes that is towards the at later to an analogs not more consistency predictable. business, all the out a steepness They when get that -- is #X get but you they X/X to and So curve. thing

that steepness the of So variable. beginning main is in the the it's curve the

Scott Henry

Okay.

I and hard got Okay. the to it's irony on this. full a channel. INDOCIN. generic of ROLVEDON, They a more you've got mean, to ask INDOCIN all nothing to miss

the think sense in Just question get Do reduction for still. of, of apples-to-apples is when a I we to you channel. the the to we there's $X.X sense add but sold, on Should quarter, got third what you the was think better what another have is should QX? The a we QX that the think number? demand about number? in you deal where an that month trying basis, a million about

Daniel Peisert

a changed. underlying hard future on as that good commentary for I factors how enough hand question. through gave much ourselves. the the guys tried has as give kind well all at think Paul months we those -- working today -- ASP still changed how based And on could We I The and you that's true us of on We're the know those in the what getting those factors change part and is guess, how is change demand? your, removing what still. to

set term. we've the for looking still made we're the through that a messages term already better Could in to product So up concrete that ourselves and run. here it long short take-home steps improve the in short the

Scott Henry

you saying QX? say do you little, it's to mean this safe is should QX be think very -- than I think it's Do but higher

Daniel Peisert

this that. October much. relative That the This able right I help we the we that down But my and I'd minuses volume on like the have comes both you and to into have going our would a last couple to goal. will weeks. visibility there are what product. on but be through. to not like visibility pluses was to And to get to give now, that And good of be said, July, those both don't happen what's side in pricing

on want guidance So I that. forward-looking to don't provide

Scott Henry

not It did similar to potential the you to information -- seems impairment? you another maybe if at restructurings. you the had just accountants point? sense question. for too like time, Just view that? get just a ROLVEDON enough this it's not Or doing maybe think even to long-term ask about And a Okay. working Where issues for write-downs, over impairment? trying way Or short-term as early did evaluate you

Ajay Patel

is I Ajay. this can Scott, take Yes, that.

an our evaluation done at was entity-wide So impairment level.

allocate So it consolidated at rights was with the And all to product was in had impairment. product rights. of each comments, of our I the impairment my as the then level groups stated value charge were and taken weighted

Scott Henry

recall, ROLVEDON, Okay. correct? not And I if did any to allocate you

Ajay Patel

allocation be there to No, ROLVEDON. will an

Scott Henry

this baseline? think that's other Just better, guidance, getting Dan, a is or would there, all. to. without a don't tougher a ROLVEDON giving I then, be a some XX.X% aspirationally, because want about trying should and getting answer been be you'll worse? Or we And have of hits will lower Okay. be we could but to taken. to to you this better But it, question EBITDA if the INDOCIN, lot how it point there for adjusted should have that for products at know look

Just this you of any EBITDA? way think about could baseline kind

Daniel Peisert

that's can time. I this a not Scott, answer Yes, at question

Scott Henry

Fair I guess... Okay. enough.

Daniel Peisert

I why you're wish at and give I I I you visibility. can't could this that do appreciate time. just really asking

Scott Henry

enough. mean in timing that's them. products, Sympazan, why but were say in They growing and they is you ask somewhere No, fair though? were Otrexup that the do expect down to pretty QX. just trend guess it QX. strong we understand, to I I here? I be some in between Is fair still those

Paul Schwichtenberg

the is the think trend somewhere in I X quarters. Scott, between Yes,

as inventory of kind is at impacted bit prescription of -- increase. changes As in as between to levels. X continues I by you we a mentioned still the in kind mentioned mentioned. level, little quarter volume tracking Otrexup along in wholesaler script, Sympazan and my It was

Operator

your question Thomas the final line of And with Street. Lake comes from Flaten

Thomas Flaten

with the by kind you how pricing the being price market impact I forced your of in the it but I accounts? prices ask didn't are lower at you're in account INDOCIN where the you exactly explicitly, level? situations guess matching account is guys an Or

Daniel Peisert

are level, account. That's question. business a take straight price account wholesaler from a lower It's good more like the to at obviously they're if competitors It's to far going you. than not by at your the

you're what we at Symphony IQVIA-type or basis. So to at a more wholesale. that's going see That's what like see the

price On where But the the or anyone as is the you're why retaining generic we market we've some individual terms account that in impact or compounder individual is is the is the by where the that lower. overall account GPO as account on basis low seeing, I the demand. pretty about we're priced greatest being if like things hearing the can price you we doing market have think isn't negotiations, any But and but all from that, clearing is is. any strong of contracting think, hear what things in been is it

Thomas Flaten

off do where are is, the And approximately? believe, started? at the us market you Zydis WACC, update now of an which Where in I from we have X% for

Daniel Peisert

is, The coming lowest. other we what product. like We've general of the From hearing, the that that is heard that. off. are we think less the seen generic we're numbers than were a X% we've lowest trade or show, the handout market the is in of But think things screenshot other from the ballpark all slightly that where that compounded

Operator

Well, thank much. Great. you so

We in further questions have the queue. no

our to back conference time. would Peisert, Dan the like at remarks. Chief Q&A ahead for So this to over we're section and President close and I going Officer, go closing turn to now Executive

Daniel Peisert

today. Thank you. I said true this it's last still and quarter

even We our come stronger to I we are and we company stronger through I Ajay for the of XX stakeholders. create were and employees believe this ago. positioned for a a are years Assertio. well speak collective Paul, than far value few And

the for our a for what special over or Thank and can a and here are committed company We shareholders. quarter we building have not here just two, attractive to investment an We for good be long think a the long all night. term, are you, term,

Operator

the presentation. Thank Ladies you attending for conference today's you. concluded. and now has gentlemen, Thank

disconnect. You may now

Assertio (ASRT) 8 Nov 232023 Q3 Earnings call transcript