ASRT - Earnings call transcript Q1 2024

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Operator

Good afternoon, and welcome to Assertio Holdings First Quarter 2024 Financial Results Call.

[Operator Instructions]

I would now like to turn the call over to Matt Kreps, Investor Relations for the company. Please go ahead.

Matthew Kreps

Thank you. you, quarter joining XXXX thank discuss today and first Assertio's financials. afternoon, everyone, us for to Good The news our release is now covering our results on Investor for the page of website investor.assertiotx.com. available at this period encourage conjunction today's in would and with you press discussion. the I release review tables to

With me CEO, Mason, Heather Ajay Paul and CFO; today CCO. are Schwichtenberg, Interim Patel,

Paul will questions and with we guidance, of the overview In moment, just an and our on Heather a update covering will results then an will analysts. cover Ajay commercial provide following that, financial open with from the remarks After research our business strategies. our take

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

the results in from may materially statements. those differ projected actual Our forward-looking

specifically intent or obligation except as to Assertio required by disclaims these forward-looking law. update any statements,

ahead. the And now that, will Please over turn I Heather. to go with call

Heather Mason

for all making Thank are Since to at you, joining the and business value I my clinicians January, drive our shareholders. work patients everyone, I interim at of you CEO tirelessly our in colleagues continue we us to and thank and stepping deeply for Matt. Welcome, and today. role the Assertio, by to for grateful into am long-term progress who am encouraged

good a off are to this start year. We

Rolvedon competitive million measure calling of consecutive sales with of are XX% fifth long-acting success our Our $XXX million This $XX critical demonstrated several There sales quarter-over-quarter. up first for the is $XX growth, million. million category. fronts. in a Rolvedon's across $XXX and execution of intensely quarter full is year quarter QX to demand tracking guidance, EBITDA GCSF to is

completed enrollment Rolvedon dosing of trial QX. same-day early we in Additionally,

lead We expect guidelines. opportunity has And the performance data for generic product a readout before Paul could to through working and on further while society is Indocin year-end are our differentiation volume our molecule the will second share expand Rolvedon the to of still an results overall plans. competitive XX%. growth we one and generic. approximately and price a maintain anticipating medical competitor at

right have our We successfully cut team place ensured operating rightsized deliver to and the we expenses organization, have results. have in

is to that generated we I $X.X stock to Additionally, our in streams believe These look fit generating is. the But cash-generating flows. day. on accretive long-term in where we lean achieved million by we every commercial by by our the are assets diversifying growing with profitability not and shareholder important satisfied best and that be add cash cash sales our model. are driving as sustainable clear, revenue we predictable more tasks we quarter value price focused want also are

business The CEO that, finding candidate financials. announcing development forward a call over I commercial, pass look CEO skills. is with Ajay of to our I'll on and the to to best identified with the is And and balance track. cover financial next search Finally, soon. candidates, We've strong Board our committed to

Ajay Patel

Thanks, of XXXX. Heather. Today, to first for I financial quarter would the cover our like results

quarter commentary fourth I Indocin focus the that quarter. the will competition to Before sequential given the generic to acquisition year of I want my occurred XXXX, prior Spectrum fourth on begin, comparisons of in and note that

asset lead with our it now and margin in associated is and brings changes operating structure. Rolvedon cost

volume. fourth fourth $XX.X fourth XX% quarter. million, and were Indocin the $XX.X compared to the growth quarter. to due million $X.X in million the first sales total For million our XXXX, down were achieved $XX in compared to $XX.X of $XX.X in the from quarter sales were Rolvedon million sales slightly quarter, million primarily

expected, decline competition. the from impact to and generic on pricing volume was due the As

the impact materially compared at the gross Inventory the in XX% of step-up quarter. Excluding inventory step-up, of fourth complete margin quarter the first end the was first XX% to in quarter. was

expenses. operating the quarter, to quarter. SG&A were $XX.X Turning the expense $XX from in million million XX% down in first fourth

stock align Excluding the actions reduce first in [ expenses was asset adjusted and compensation, to to ] company OpEx $XX.X its reflects taken and quarter the from the has current million benefits portfolio.

million, of a fourth difficult was noncash quarter the from them million first the included to of the for Both making income compare. $X.X adjustments, impact loss a down loss net in GAAP of quarter. $XX.X quarters

core is adjusted operating million QX EBITDA detailed sales of a However, was of the EBITDA adjusted adjusted to good business. the a to a for reconciliation indicator Please due of OpEx million increased favorability $X.X our refer noted. from the EBITDA QX $X.X performance results. adjusted press just of EBITDA and release positive our

the generated in million $X.X quarter. Crossing from cash over flows we and operations sheet, flow in our to first cash balance

As cash we interest operating flows due the fluctuate royalties of noted, to timing previously and capital, will have quarterly payments. working

higher as impact flows, the will take a higher which to operating also results Rolvedon, from there quarters few in to revenue higher P&L to the Rolvedon net results, road. Rolvedon in Indocin down be gross settlements Indocin, a same is cash we a rebate to similar carries to than cash profile gross the has shift which collections. Additionally, upfront time, a at higher which realized. rate, pronounced results But

investments of the grow million. manner durability that end was our and $XX deployment that we at increases business. predictability million Cash stated, $XX.X at was the and quarter of debt opportunities, can a focused as sales in Heather the and cash And profitability looking first are on

is business liquidity availability. also that is growth on We stabilization recognize results, with access a based are appropriate capital and maintained as and on pleased the well focus in QX process internal multistage as requires that external ensuring but execution

We maintaining XXXX. announced previously are our for guidance

anticipate million. net adjusted product EBITDA million. $XXX in range expect a million of $XX We of to We a $XXX sales range to $XX in million

give the call to Paul turn commercial I'll update. to over now

Paul Schwichtenberg

Thank you, Ajay.

efforts Last efficient past two the years, and and sales short maintain have diversified cash commercial and portfolio major continue but opportunities cash we prior XXXX our sequential reflected a quarter lead sequential of quarter, our order over and to focused fifth reported demand. single quarterly ASP XX% XXXX changes aligned the and to have set. plans its to I demand erosion flow strong built largest marketing asset as since are been in a sales our with generating on in our Rolvedon. assets, holding around new we we quarter highest occurred growth unit few saw in fall, full our net generating low-cost, product and QX that growth second existing of particular, within Rolvedon, to Indocin the focused first our ASP growth flow to approach. currently very percentage the low XX% the including after a expectations on around our in We increased commitment start Rolvedon has assets increase in commercial you Over class. we digits, which launch. know line many

XX%. serve share market approximately market we in currently is our believe Medicare Part the B We

clinic commercial the driven Our success space has from been contracting competition with access by even to and to performance due dedicated the biosimilars. in excellent our strong date capabilities,

new total continue as at this market of both drive market penetration growth into gains which as to volume existing strategy sites further about Our is in through important segment, to well the clinics. is X/X

leveraging are further promotion commercial well our as We sales achieve digital efforts market as team to penetration.

in looking asset greater to we years the are than million customers continually also hospital building Rolvedon We new a expand $XXX into into as work towards ahead.

adapt to to Moving QX our performance Indocin. we competitive continue a market. in line with was expectations to as

date on and XX% in Indocin the Our flow protecting asset. competitor our We share resulted volume maximizing to value efforts although approximately of focused in generic have a a the the remain aggressively. priced as has cash share generating market,

Sympazan. to with was QX expectations. line Turning our in performance

with and known patients why opportunity Assertio's ingredient well is targeted hard-to-control active the delivery we its certain appealing mechanism. fit While and why asset. good is see a is in this platform to This particularly Sympazan in to part due understood, it's additional widely

to marketing change and our strategic We are to raise mix an XXXX. awareness in drive volume making the with in incremental investment goal starting incremental growth Sympazan

and deliver the execute for turn commend covering to to to operator research thank entire our continue team and back they like analysts. With call our the from I'll as I'd Q&A that, well results. Lastly, commercial

Operator

[Operator Instructions]

Co. The first question comes Sidoti & Jim from Sidoti the from line of

James Sidoti

completion time you in potential get about the for the revenue step that? Can dosing. the is You the line? What's if enrollment on the of what should trial And same-day that talked next of do approval. for you that think just additional of terms go for for the you

Paul Schwichtenberg

Sure. is that address this Paul here. I'll question. Jim,

-- the analysis patient last enrolled sorry, in now, in been we data we and are the So data to we has said expect publish the earlier, phase right present QX. the as

will any impact label will impact this be in have this reminder, not will I guidance be future is think that a just data be determined. a As and but to consistent don't available. going new was any We change, be with which our XXXX, planned

James Sidoti

new that or Okay. network? products the portfolio, is bring critical a considering traditional that force? in-person virtual to are that look the the Is products those to be you at to more products go in you And must able as it how are distributed would through your sales

Heather Mason

sales to Jim, open, digital are direct more terms of go-to-market versus in model interaction. We the

James Sidoti

to you cancer pain focused treatment Or of terms the mean, you in open drugs And drugs? and other types of I are are product well? as categories, more management on

Heather Mason

be That's great, set supportive it for area. have example, of in, the Jim, a Although oncolytic small care to products. products

current assets more to that something thrilled now. looking we're broadly certainly right our would But are leverages find to of we than that. set talking be that better doctors even So

James Sidoti

What to And all-equity to for deal? some an debt? me. balance have Are would options the then Or last you you or considering the the cash you right. the off prefer sheet? your one All deal finance do are

Ajay Patel

to the to the of optimal, the Jim, and state utilization but type is is that's on from those cost being capital at of Yes, going We're cash right? of the all look most of to ensure cost be it this the I is evaluating all things, going we'll and be predicated the targeted. In of utilization deal venues, assets it's Ajay. capital think current appropriate. X of type balancing

Operator

The Capital from next line Markets. Street of Lake Flaten comes from question the Thomas

Thomas Flaten

could more could clarify thing with you won't implication investment. Paul, And is there like. about last wondering that also look the off then if was that just might key little said growth you're you for XXXX? a making what growth maybe plans maybe XXXX, strategic bit any there for Sympazan that in a I the you said I be

Paul Schwichtenberg

to not the necessarily. last the part question of think your I is answer no,

that single-digit think Sympazan. Maybe it's the at level. looking we've low seen with growth of kind I continued we're a

to looking believe around do is that Obviously, we to happening some message we're in there trying us that impact we're mentioned, that's it XXXX. drive to where our will there. implement that do what I our is not in we opportunity market and going different get looking patients mix need as spending what do, really we're a shift why get physicians out marketing little the really dollars put places However, we our And this access think better volume we're time and forward. to and at will to until and

Thomas Flaten

sounded CEO maybe they Got experience a some a there of just candidates. what It they have been, it. search. they've are, you of of down generic kind give Yes. very Can manner? to were -- small who Heather, was relatively in you you where mentioned number the us sense like

Heather Mason

to. talk the set and assured, we'll But have talk them, we to and good. I'm feel in caliber an criteria very discuss experience talent functionally are pleased been when to we've announce The clear a and -- and list Thomas, both about not And able get prepared rest your is perspective of have high to we to questions. marketplace then the both been ready the we bar of Thomas. answers from we with that,

Thomas Flaten

gross Got or where give inventory think of given mentioned that you mix, the going you that be the completed of you sense product be it. by us was was first can new margins Ajay, quarter. is? a margins end Can -- substantially step-up the to the

Ajay Patel

Yes.

to we think in said, continues slight from margins our where margin decrease elevating say I were, decline, anticipating Rolvedon. continued I kind the Indocin they start would the in up XX% as QX we're towards of a as

maintain. us we're is think a in target good mid-XXs for to targeting I the

Thomas Flaten

then Got Paul. it. And Got just final one for maybe one it.

those you the that help if clinics? you Are where clinics a bit. success something does perhaps maybe the could For not it -- of success or those clinics Is common there from having those is coverage? Rolvedon is there doctors something just perspective, -- it they kind particular in see a that characterize be to among see volume are they might other have products, in little

Paul Schwichtenberg

Well, having we're across in Medicare across of we've contracts coverage there's a primary got where lot a I Part right the And that B, success success place answer space number good our short think broad also is is and now. is of we're where clinics having the country. in playing in we're which

Operator

As I for over no the would time, the questions at back session. this to remarks. closing are Q&A further Heather turn queue concludes call our there in Mason like to this

Heather Mason

you, doing I what joined today's do. that and who's to were And said hope we're has Thank we given everyone today. us appreciate call we clarity I that going

any keep cash of forward, operating developments. front, Our intent business close ensure Indocin, is additional generation, candidate. on as moving active CEO we to development expenses, in rightsized apprise a maintain we'll be the grow you on Rolvedon, manage And

management, If a again, you'd time. we'll joining. happy to directly, Kreps contact for and a please with thank like Once Matt call schedule to be you arrange

Operator

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

now may You disconnect.

Assertio (ASRT) 6 May 242024 Q1 Earnings call transcript