DERM - Earnings call 1 2023 | Journey Medical Corporation

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Operator

Ladies and gentlemen, thank you for standing by. Good afternoon, and welcome to Journey Medical's First Quarter 2023 Financial Results and Corporate Update Conference Call. [Operator Instructions] Participants of this call are advised that the audio of this conference call is being broadcast live over the Internet and is also being recorded for playback purposes. A webcast replay of this call will be available approximately 1 hour after the end of the call for approximately 30 days. I would now like to turn the call over to Matt Blazei of CORE IR, the company's Investor Relations firm. Please go ahead, sir.

Matt Blazei

you in thank conference and afternoon, for today's participating call. Good

Interim leadership from Executive Claude Benesch, Journey me team Officer; Financial Medical Joseph Chief Joining and Corporation's are Officer. President Maraoui, and Chief Co-Founder,

call, regulatory address other performance, approvals. that operational this including for condition financial Medical's among management forward-looking things, making During statements, be and statements results, expectations Journey future will receipt of

and results statements. involve risks other to materially statements may actual factors Forward-looking cause those differ from that

refer measures the please reports statements to believes risk more can and information that risks, particularly today For most filed press its accompanies that periodic be the useful these company's in described filed in in this Form X-K Medical's on call the Journey the cautionary Form about conference factors evaluating XX-K SEC call, financial with Journey and XX-Q, it. Today's recently the performance. Medical release non-GAAP includes Form

information prepared a this as in consider or not accordance should in additional You isolation results with for substitute GAAP.

the any as this Medical. after call. It revise disclaims by over reflect required of Chief of reconciliation measure this Journey that law, update Claude measure, circumstances Journey pleasure its Executive to directly President reconciliation this financial a contains company's of that occur only press information accurate and For today, is turn obligation or of call XXXX. as XX, Except loss, release. The table events to financial time-sensitive see publicly the to call Medical Maraoui, earnings content comparable any please Officer in my is to most May the or GAAP net information Co-Founder, which now located non-GAAP

Claude Maraoui

portfolio made quarter Since we our everyone Journey's for for Good product, have enhancing and Matt. thanks have afternoon, and conference infrastructure to call. ourselves Thanks, future growth. investments to position commercial first revenue committed XXXX our inception, joining and significant to

and product for gross of Accutane, by and expected. first period to higher sales revenues unit were for volumes Ximino. Targadox for XXXX, our quarter were unfavorably than from Qbrexza, lower Amzeeq, our Despite revenues million, net unit first which and the impacted is adjustments sales period volumes total quarter Zilxi and lower For sales gross-to-net $XX.X higher Exelderm,

bounce we and net product have lower the already gross-to-net from However, our quarter, Qbrexza. seen from isolated the a in back adjustments in April, revenues particularly for first occurrences

clinical For of our Phase major the DFD-XX plan clinical rosacea. for achieving III papulopustular trials milestones remainder on treatment the we XXXX, and of evaluating in

trials XXX% we of significant During the in the clinical milestone our XXXX first and in reached last achieving the enrollment of in quarter in progress We DFD-XX. made of XXXX, January achieved goal commercializing XXXX. May patient-out

top DFD-XX expect the line readout XXXX. trials XXXX, the Phase in anticipate second filing in III half June data of a from new the of application drug We clinical and

trial and as treatment as U.S. had of in million million immense, the significant continues from issues X.X The to X.X DFD-XX worldwide. XX market in completion suffering grow announced the from impact people prescriptions Phase is I we the data. up an rosacea noted DFD-XX many to addition, clinical according and million with no the of XXXX, Symphony million in rosacea XXXX, XXX on In assessing study. The safety our opportunity estimated in for market microbial with during flora prescriptions

Global million second, leader II eclipse co-primary we U.S. to which $XXX and Oraycea, put demonstrated Journeys' reduction first, in Phase which respect be the inflammatory million that of context, the and in $XX.X believe which approved able year had in annually, approximately were in Oraycea Symphony both million of XXXX. efficacy DFD-XX prescription to Once success. in achieve is will to The to count of $XXX excess Investigator fiscal in sales data. results of with XXXX sales would launched, net trial the according the lesion double of total endpoints DFD-XX revenue and care nearly Assessment for study, standard market current

With internal return growth, growth non-GAAP operating combination XXXX. the second we anticipated sequential commercial expense is revenue maximize for efficiencies, for positive to and efforts beginning the to to our operations our profitability. expect Through ongoing in EBITDA of Journey goal quarter the and revenue adjusted optimization, be to fiscal

to million. Our beating to plan previous is on of exceed guidance SG&A currently reducing $X $X on million, our million track $XX

acquiring dermatology who focus with our will and strategic expansion now financial that, product turn products the quarter. call growth. With review our product of and the sales on results Our cornerstone in-licensing, novel future of industry-leading force, over our candidates, portfolio first the future combined our for to I'll the be continued through developing Joe, continues to

Joseph Benesch

everyone. hello, company's XXXX. will financial and the of first results the review for Claude, you, Thank I now quarter

Our net of quarter. prior the year the million first product for were an XXXX million, reflecting quarter revenues from decrease $XX.X $X.X

While the and first unit Qbrexza, net product Amzeeq, by as adjustments and XXXX impacted net higher increases Exelderm year compared and unit volumes negatively volumes and sales Zilxi gross revenues Exelderm, product for revenues of revenue to for quarter and Ximino. Volume in Accutane quarter. for the lower increase for were Zilxi contributed prior total to higher were Accutane, Targadox gross-to-net and an

of the higher beginning rebates rate managed at Accutane for to this occur However, a decrease year, offset managed coupon further by the volume care Ximino for product care discounts rebates overall of increased in revenue. resets, was increase to higher each Targadox contributed as and costs. Unit greater higher decreases deductible due and result which

impact competition savings prior programs, March by In December will which we of and higher the our modified lower in of addition, XXXX. In negatively sales year increased unit co-pay in Targadox continues period began to result from prior Targadox XXXX, quarter leading than Ximino year return that affected volumes. Targadox returns. generic be experience the to

each this the decreased brand's increase quarter. However, volume will profitability. Qbrexza from prior year unit

or percent programs. trial costs decreased expenses contractually of a reduction the to acquisition. Cost headcount rebate efforts $X.X year XXXX initiative, to million May was from and XXXX. R&D to quarter and expense Qbrexza an designed XXXX. XX% sold implemented marketing has in Qbrexza XX% XX.X% from executed increased improve quarter May is our decrease state higher an to driven litigation reduction XXXX million the due decrease decreased optimize settlements for reduction payments. Continuing onetime $X.X $X.X expenses common periods. first the is the loss increased our basic of by expenses the first approximately the the incurred per a higher common by prior cost to are the connection our managed net reduced development Net decreased compared sold XXXX The to in associated for basic from and from product quarter sales shareholders the quarter also in and royalty in that of cuts continuing first efficiencies, product cost rate by clinical government due expenses higher We impacted operational of of year year increases of shareholders adjustments loss experienced sales loss Qbrexza returns prior in costs. In and for in of by $X.XX patent the force $XXX,XXX a overall decrease reduction expense reduction million of costs and XXXX or efforts, the share for of of overall by part we benefits to $X.XX costs mainly with of lots of termination a $XX.X of including first due gross-to-net to from care quarter reduce employees, primarily legal year share by and prior greater initiative further net the as Targadox to additional this goods with our Qbrexza XXXX. quarter, of Dermira coupon million for $XX.X to marketing. from resets, diluted Qbrexza in prior DFD-XX. SG&A These first diluted primarily million $XX.X to per and for the quarter, However, quarter royalties. result of XXXX. $XXX,XXX certain and million in we rebates severance was implementing cost in

per resulted diluted the million $X.XX for basic or share first $X.XX quarter income per of and Our of $X.XX non-GAAP quarter or XXXX adjusted net $X.X EBITDA $X.X of XXXX. diluted a net million basic per the share in of for first versus share loss and

sequential we through progress XXXX fiscal work non-GAAP XXXX. year expect our our non-GAAP as improvement towards be to adjusted adjusted in for the goal EBITDA and We positive EBITDA

cash cash. West Also At March cash amendment and our cash had XX, to to XXXX, March at restricted reclassified balance facility and sheet reflect to on $XX.X East $X.XX Moving minimum cash cash. we under equivalents Bank. million to in cash new our restricted with ratio cash the requirement we equivalents from XXXX, and million of our XX, cash

equity closed the full, result, we pay that financial credit removed. term any recent penalty, prior $XX as this will As to After million the expect down our Also on assets is term we were which and we amendment, at all a paid without loan in time down paid we of maturity also and to debt which through initiatives be pursue may capital our it program. Thank including much, you use unencumbered relationship, along loan a facility. previous covenants the may reduction result and revolving filed or the cost new We in plan to additional ATM to back a our financing borrowing turn with available I'll now support Claude. raise through ongoing seek XXXX. of recently to very

Claude Maraoui

Joe. Thank you,

cycle life optimistic was we newly product portfolio challenges products faced remain our We XXXX. throughout the with with during launched the have performance pivot about designed strategy Our future Targadox. of our expansion to

top completion excited also both DFD-XX are for near-term and results. We clinical about the III Phase trials recent for line

XXXX $X we savings of to second SG&A to quarter sequential in the XXXX. to our throughout result million and million $X SG&A growth from further net in of guidance Additionally, previous beginning excess expect in $XX anticipate in annual revenue compared million when reductions

forward quarter our mentioned progress report EBITDA we as achieving before, goal Thank August. in sharing non-GAAP you our fiscal much. when be adjusted to look results our We second positive to year very continues Finally, XXXX. for ongoing

Operator

now conference presentation. The has attending Thank today's you concluded. for

You disconnect. may now

Journey Medical (DERM) 22 May 232023 Q1 Earnings call transcript