TXMD - Earnings call transcript Q4 2019

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Operator

Good morning, ladies and gentlemen. Thank you for joining us for the TherapeuticsMD Fourth Quarter 2019 Financial Results Conference Call.

Following prepared remarks from the company, we will open the call for questions.

I would now like to turn the call over to TherapeuticsMD's Vice President of Investor Relations, Nichol Ochsner. Nichol?

Nichol Ochsner

everyone. morning, Good joining results for discuss fourth our Thank business today update. financial and quarter you to This issued financial results. morning fourth our TherapeuticsMD a press announcing release quarter press website, the & The section. available the Media in Investors company's is release therapeuticsmd.com on Executive On Chief Robert Chief Officer, Financial are and Finizio; Dawn Cartwright; Officer, Halkuff. today's Dan TherapeuticsMD call Commercial from Chief Officer,

expectations be would to remind statements during assurance may call conference statements. results like these other of our and the everyone Such update change. made contemplated SEC. reports are factors can may number statements I statements realized. be based statements some based risks, materially are and These that the identified current forward-looking will due a upon this statements such circumstances press from of no information today, Actual that our in and certain obligation TherapeuticsMD there are differ available forward-looking in to statements results which no to as and filed to release upon the with and quarterly assumes company annual, be

also and company's recording will conference website. call of the available Media online for and today's audio webcast Investors the replay & An be section

may held archived replay to listening this call XX, webcast, was For the who and those February be on recorded or XXXX.

turn I'll call that, the CEO, TherapeuticsMD With over Rob Finizio. to

Robert Finizio

thank joining morning, today's for you Good and call.

close our the financial review a at Then and start Let look overview, and me guidance. will financial briefly Dan will call review and I an provide on XXXX will review to to XXXX. of Dawn then, in-depth with XXXX, commercial Slide the will we agenda results. today plans we a with provide X. turn our for then strategy

that to organization focus foundational of building allow in the accelerate us In would on XXXX. the was growth XXXX, the entire out revenue elements

the talent from health, payer such company focus ensuring a transforming X, our to a lines of As launching expanding portfolio full products, base access, and Slide business as areas were public national of commercial-focused organization. our see new on you can in clinical-focused

me our Let some of recap Slide X. achievements on

fourth full met quarter Partners our million TPG December. an we this related to We First, first our Sixth guidance the tranche we we satisfied high-end amendment of the loan which to the And tranche access received guidance. $XX and in additional to exceeded completed our financial week. loan the milestone $XX Street with second year million agreement

to on Slide XX% accomplishments X; with on Moving after allowed four quickly. gained than net with for coverage limited achieved Title Medicaid, enter per strong of commenced the this our new the show coverage unit, XX and including to in ANNOVERA, commercial demonstrating Department ANNOVERA, Less starting we revenue launch turn and payer Defense. was months markets commercial into us

we Medicare IMVEXXY; gain not a gain success Part did access. or to and all. but D other brought class this foundational slower secured unrestricted made one to XX% from but obtaining most when was products. on positioned quarter, payer coverage resulting major pace We well make remains positioned XXXX still of the expected. we this TXMD X the might we We D decision finally every of of achieve in of are for decisions Top to most D coverage additional Part believe know is than the are for on well the regional coverage critical commercial will that Moving XXXX believe of XX payers items one coverage. payers Top X the two We We the Part Medicare and commercial coverage of three gain payers payers

for with IMVEXXY. total of great we is of prescriptions result a effort force December, in a VVA the limited with the From sales a from marketing category. driven share exited XX% in market spend share a perspective This very

was Moving we Top commercial coverage commercial core X XX% BIJUVA; from and payer unrestricted onto payers, coverage. a achieving the access XX secured of focus

operational account out with key built live also BIO-IGNITE We management infrastructure the BIO-IGNITE and by pharmacies team a year end. XXX

launched then in a December BIJUVA expanded payer limited in in compounding reminder, crossed XX% April, channel access BIO-IGNITE and capacity into a as the over was vessels. As commercial we

Our to inflection XXXX is for revenue for create our goal a portfolio. point

we We have and company from our line, have payer sales have a clinical the development company a coverage, today trained marketing and to force, pieces company Bottom beyond. and fully now awareness integrated for XXXX have substantial in a products. pharmaceutical sales we of focused well very and place providers an as commercial and pivoted

I'd call priorities. and Dawn you through over to the Now, to turn strategy take to like the XXXX

Dawn Halkuff

Thank I'm to portfolio. be to the able happy you, share plans to grow XXXX Rob. our

we how focus prioritizing this with year. and spend start me Let are our

We a situation. in unique are

As have shown three products, in mode. launch on all X, early we Slide

is know, you level been maintenance a and a but for have plan XXXX opportunity force that that those market the launch on continue that as years a also on Slide As focus shown our than products board. mode This are modified spotlight on take and that based fantastic higher requires of us, to across To allows accomplish experience brand multiple mode. each have on the the we in end, of structure growth that so can X. our sales the

increased representatives, coincide all for product. sales by XX IMVEXXY March as and be the the two sleeves. structure BIJUVA marketing but ANNOVERA into the will XXX entire have to will larger representatives will the will promoted two use size specialists and with The around our of spend existing on The representatives. We sell lead This will the go of place the split the brand. menopause lead. sales two, will as XX portfolio smaller sales into with force sales be X

brands. move more on of detail to providing me each the Let

ANNOVERA start on with Let's XX. Slide

women growing net that revenue prioritized As in as in our you needed it product product the is a thus product and position that control category. the per know, been as birth portfolio, we terms highest differentiated strategy has the is to the missing of ANNOVERA in a a for large that unit the for The solution generates lead provides focus. empowerment across spend and category have and ANNOVERA control

life approach XX, bringing the three to our Slide Turning is levers. strategy to to utilizing

force First, focus. sales

mentioned, ANNOVERA have number providers and that sales procedure control will for there finally This is procedures healthcare for for relevant patients not that long-lasting for patients implant ready They XXX option As is that is of focus the who birth IUD free. are one a educate will and a be provide providers procedure. sub-segment their a representatives.

not do IUDs that to implants, they a finally long-lasting providers or those For offer. option have do

not OBGYNs You most that today. not of conduct and subset do a realize [ph] might procedures care primary physicians

was during with is want the see providers, full will Some the and see light a the launch version ANNOVERA. prescribers. key healthcare in product professional that of uniqueness resonated multiple to activate in findings the On understanding operated and campaign of value her" ability engage and with you of healthcare for, called to our patient when limited the suited this to X, demo QX we their "owned the types bring the launch They is by key touch to March a prescribing. strongly which ANNOVERA

consumer is ANNOVERA efforts Our advertising early public consumer Launching relations. our including important adoption. for second lever is

doctor shows research serving made are of fact, In a the that decisions with women by our role. birth in control a supportive XX%

"Unapologetically digital control believe of and campaign heavy media. on will ANNOVERA" be channels Our We and clutter consumer will centered the consumes other around through consumer in be empowerment will called our the market. social target where and campaign cut advertising population our

the are increase relations our we by likelihood of endorsement ANNOVERA will media, as population women of that several are believe engaging to in and We and also public target of consideration adoption. effort people brands, relevant

ANNOVERA. To end, ease in The and PillPlug third their consumer available is control lever access and women with ANNOVERA PillPack, platforms option a obtaining that birth providing through are control is [ph]. convenience platforms for including now channels. final birth modern and are for perfect and a expanding place several new These online patient PlusCare like

to we Defense all have health Department traction to of entered channel announced Afaxys will recently this arrangement with into be Finally, be product's accelerate the including to is into We market ANNOVERA women. Administration, sector, Entering this public and Medicaid. with Veterans ANNOVERA XXXX. we to our to this so an can market believe important in available agreement able plan, and the

Slide complete, commercial healthcare at least VVA IMVEXXY level share. adoption XX,XXX where writers From IMVEXXY high with The invest investment dollars in the believe consumer in to professional seen sales we healthcare we by brand. consider market it's of this the that, be prescription. XXXX of focus heavy will right marketing to which forward writing force XXXX have prescribers the the writers. XX; marketing is on that increase now piece represents we continued with Of invested, XX% IMVEXXY for volume the IMVEXXY spent payer time Moving broad mostly providers, one to we nearly have

overall goal the prescribing for of prescribers grow Our and breadth IMVEXXY. is regular prescription written expand among one have among XX,XXX to who the writing of at depth these least the

From advertising the in an women during awareness we and product anticipate trying started increased direct-to-consumer IMVEXXY fourth the quarter XXXX. just standpoint, and

out but will As women a treated experience. with patient-centric provide unique US we been point of a menopausal of X% that the many women have symptoms, Since features half only therapy. reminder, before, in prescription VVA on believe of experience are also the a our will VVA we better IMVEXXY therapy these

a goal totals surpass by Premarin basis Premarin on year average, monthly end. cream prescriptions a Our vaginal on is to prescriptions Today, XX,XXX month.

that BIJUVA an we to accelerate forward supports we have on XX; brand. strategy believe moving what is very important to targeted a Finally, needed Slide

we We sales healthcare BIJUVA to is bio-identical and why for focus great community the on a menopause force hormones. are professional focus is special independent have the BIJUVA promotion XXXX. seen committing compounding of that that in interest of This pharmacies

VMS approach will to as for writers. overlap what is BIO-IGNITE today High well We with is growth as We that cost-effective we existing locations. in believe existing our BIJUVA launch dose second the the BIJUVA needed are this the and across potential without existing resources sales as writers and compromising conquer our using for accelerated targeting in brand target and of up at targets an divide and BIJUVA growth set full of a end targets after the to important approval us most lower XXXX. a of XXXX reached category

As the BIJUVA the previously announced dose FDA. a X.X/XXX NDA of milligram to submission supplement the reminder, efficacy we

for to loyal be will additional of our prescribers, for focus focus do we ANNOVERA expect plan given and unlock year, a IMVEXXY. With be we goal XXXX, the is base spend the XX to IMVEXXY at that we for believe right accelerate in BIJUVA able for and year for happens up November XXXX. with in to Once We timeline. approval months this BIJUVA seen the of like in our have as exit this just to year, and we time

hired an by planned have the believe with win. team marketing, over we years team desire pharmaceutical and we on and that access. with see past can that an passion This They X tactics and management, have and plan of strategies training a a to is and brands for companies large X health account deep you supported return we over experience for professionals will small with a lot across impact year incredible the the As provide this to greatest shown across sales, XX women's incredible strong Slide key XXXX. are

With significant plans for path place XXXX. to the we and the execute, talent the we strategic in growth believe in are on

I will our Dan to results. turn now over call the to financial summarize

Dan Cartwright

XXXX On focus the today's quarter of our review performance, quarter third trends of going fourth to call, for to the which the Dawn. on XXXX Thanks, I'm XXXX. financial will compared

with our press full in reminder, XXXX XXXX are full release quarter results follow. the fourth year of to and a our financial As today our included issued XX-K results

Our from product $X.X third revenue sales XXXX increased the XX% total from quarter. $XX.X to net for million quarter fourth million

$XXX,XXX. or upper met on by company the As beats the shown of guidance quarters. this exceeded has end The last fourth X XX, our expectations Slide for quarter

draw million sales allowing Finally, $XX TPG the the revenue million million $XX.X approved additional of net Street Sixth products from in to debt trigger fourth the of FDA of Partners. quarter $XX financing exceeded from the us

We revenue see continue quarter-over-quarter. net to increase

unit. This fourth over the XX. driven net Slide $X.X to in change quarter the by third million IMVEXXY net quarter. revenue revenue Move for the increase was to grew per XX%

for increased calculated strong third our in The decline the Most changes quarter IMVEXXY's unit unit the to somewhat it of back per by due trend units was quarter. and see per in can net in in declines a half for versus $XX saw volume offset revenue December. program of you revenue increase half the As $XX IMVEXXY unit the second pay of per the in was net occurred to up first This quarter. we the the with cash quarter. the

At quarter. Turn growth to net of was quarter calculated the This BIJUVA quarter the $XX the net for third patients the an third was the increase the per same XX% million unit the XXXX units of increased Slide unit per BIJUVA's over XX. quarter. revenue $XX in sold quarter. revenue over third per of XXX% of the versus to time, in for unit the to fourth $X.X for fourth result

fourth to Symphony wholesalers Slide for of had $X,XXX. reported revenue the the ANNOVERA net XXXX an and pharmacies, of unit quarter XX. with approximately in to Move to sales per of quarter. patients $X.X fourth million from net sales unit approximately XXXX average units of revenue

have prescriptions According patients. the dispensed ensure Symphony to of Given we in between levels commercial to and of the January pharmacists our of adequate from inventory demand ANNOVERA to launch by reasonable customers strong conjunction patients our X, patient ordered full in anticipated to during the XXXX launch demand. X February first physicians with supply experienced initial been approximately the meet XXXX, and quarter soft our

Slide to XX. Turn

expenses the for were commercialization the quarter IMVEXXY operating the for and launch launches to quarter increased fourth million the ANNOVERA. for the due quarter $XX.X for $XX.X expenses both to As in for of compared the previous SG&A increase the million of the compared the fourth expected, national quarter. third and preparation total expenses to BIJUVA

the the while basic net diluted up per for million $XX XXXX license $XX.X loss diluted per to basic $X.XX $X.XX million. and which line; bottom third share, million was for Turning revenue, our and net share, the quarter quarter fourth $XX.X of or XXXX of included or the was loss

$XX.X million. revenue, license loss been our would have the Excluding

see of $XX to you Slide as Population the ended fourth the can burn that cash quarter $XX On of the Council. million. for million a balance $XXX.X December cash XX, we year XXXX. million Operating This payment with was excludes XX, the

TSSP. we additional this facility tranche million term Additionally, week borrowing the under with received first our of loan $XX

guidance, over will a For turn Rob. XXXX financial to back our look I call at the

Robert Finizio

Dan. you, Thank

Turning to Slide XX.

flattening clinical XXXX to budget During just reinvest was the The and cost XXXX of on savings eliminating development pipeline cutting focused organization, our we review, multiple initiatives generating measures roles, projects. non-revenue these of pause discussed. projects, marketing the goal development the Dawn into containment

Turning guidance on to Slide financial our XX.

you've heard to We sales $XX for year to XXXX we revenue marketing to XXXX, the be provide plans like how I'd some for a our revenue Now project standpoint. see about between $XXX unfolding million and that net net about from color our million.

for deductible revenue QX during be for revenue first This up half, the product QX will our the expect is into point significantly to majority impact be net for resets the the larger We and creating anticipate revenue come a industry-wide inflection franchise, our QX of expect high and from XXXX shareholders. to QX year than built XXXX. to transformative the second and coming with half copay a Further, significant year ANNOVERA menopause TXMD, below revenue in shaping for guidance. IMVEXXY. year annual financial headwind This we annual revenue a is

rest force the XX. begin let's of launch will on ANNOVERA sales full The March for of for Slide XXXX, X. ANNOVERA TXMD's Looking forward on start with

we addition, direct of partnerships that allow new that enter secured sales into marketing opportunity create markets efforts. In additional new to have outside and revenue our us

goal IMVEXXY, brand end pass leader, prescription Vaginal Cream, is the For to VVA our on basis Premarin by a of the XXXX. monthly

to us will coming believe and sales force focus build BIJUVA menopause to years. the scale we allow foundation Lastly, the in provide the specialist right BIJUVA

positive that we we're one goal significant closer revenue business to XXXX to build get XXXX. growth is in step value. the drive investments long-term EBITDA believe goal, Our in will making as become that to shareholder net We us

among our menopause stages maximize to XXXX. thank execute see drive in in in prescribers sales In positioned potential products. management. shareholders and our incremental focused lastly, and health, revenue many We're we as needs and We and of future. as with to reproductive a extend execution growth. our women various would women experience of plans that of and commercial committed opportunity all look summary, throughout to our and to investment address in on marketing tremendous year, well and their becoming like therapeutic we will challenges focus our employees a unique changes lives, support to on to continued we the reach executing meeting to we dedication, for unmet forward in our their so focus And last health the see We're and to women's commitment, I leader goals the

I'd the now like turn over Q&A. for to call

Operator

question first Cantor. Thank with Chen [Operator from comes Instructions] you. Our Louise

question. your proceed You may with

Louise Chen

thanks and Hi, questions, the taking congratulations my quarter. on for

drawdown? helpful $XX is the gave to in just So, my million the break you. you quantify you more to you that then think color sales in but on there. some know would is for to two between way that any the any questions $XXX way the four for very call, about I terms out stocking, three first ANNOVERA that And are be and XXXX, any there metrics or Thank million of guidance the products have? there

Dawn Halkuff

Louise, Dawn. Hi, the first take I'll question. it's

was goal for So, to sell units X,XXX our ANNOVERA.

weeks selling ended the product, prescriptions. And uniqueness we're for we of launch as well, so, because up in actually we that seeing our what the because X,XXX was and over which warranted given XXXX really five customer, sold the of mode is first the was more demand stronger,

seeing that we're ramp coming. So,

Robert Finizio

about of XX% will launch in X, full of force the and promoting BIO-IGNITE in some we XX. be the And March our on QX, about team had managers with sales

looks So, forward. good it going

it's the purposely. and a of break half to about heavily heavily more no, be it as not weighted, heavily $XX to ANNOVERA far by bit As we out obviously million, here, more waiting. million weighted, product back will talk We and $XXX IMVEXXY little the guidance did goal, of to to then weighted way, majority not And expect, that put up, goal this the done. we'll get our that to get We That's our that we is worry to the the continue revenue Right? done. But where client. mention prenatal, by only as year. from. also about it's coming and the did, did year

clear. be to Just

Louise Chen

All you. right. Thank

Robert Finizio

Thanks, Louise.

Operator

Thank you.

next Our comes question Flanders from with Guggenheim. Dana

proceed may question. with You your

Dana Flanders

how expect IMVEXXY make you first that. much the net throughout thank is can on questions. you for BIJUVA. comments some on to you very just for My Hi, Maybe and one price trend XXXX

previously had for think I kind target of XQ you had IMVEXXY. a

of over wondering conservative still a then question picture holds. I taken So, one, past the And couple if bigger just you've stance just my on guidance. that know second a quarters.

and can So, year, still pulls some you've Part and for next you're D I bigger I how that of And more IMVEXXY, factored on missing, revenue you know us but that of you. Thank BIO-IGNITE help some ramp, in as expect how that know and others you accounted in on just the just and to you there to pushes understand some are them waiting well. things. those guidance? coverage comments for how I'm maybe

Robert Finizio

Sure.

the gross IMVEXXY. I you're with little nets, felt me. to IMVEXXY, question think, this get to year so answer, asking guess So, above this and can $XXX, bit number I with that not $XXX, the is we We for really if $XXX Dana, right tell a - that certainly

a costs, then there product, levers So the line then And we X% our mix, right think percent it's it last yes, can that more bottom And normalizing down from That the product. the one, net a two, XX% up, or believe nets copay starter X% couple brings direct is of your the to to optimizing we on, goal. is absolutely revenue year. attainable. there of net ASP is for get getting is piece versus scratch have that We we the get and maintenance our copay there. the this to down. right. the the your correlation the get number the with to distribution optimization three payers you we card; faster is Obviously,

So but our still we that to pull yes, other is when how we we the in areas, year. think still the an levers, obviously effect goal because that launch, the those for scaling pace on think attainable. Depending has want of that's we

as we and know know there, in nets this As we goes, what the I for the I higher mean, extrapolate nets would quarter, I the are came well. far $XX would we as $XX.XX. I thought on $X, BIJUVA ANNOVERA to above

drawn and Part seeing Part quarters So right, look, two. is base, BIJUVA base, pricing. those with ANNOVERA prescribe IMVEXXY And D and been D have payers, and having over-weighted than noise a a base, prescriber there been an of within population in we our for a of has higher effect, planned, had long out sort launch with faster. I the hope the process that first the nets patient you're though, with lot of And base, of user the couple

obviously even has To for give noise you the of fully market maybe then ANNOVERA the the six, fourth some yet. quarter, on month been months. a And two. recap, process seven its BIJUVA for next in launched Still not is

be able we hold. to from that. the But of is some will new end lot this this or in the up on So three QX, question? forward think where expect partners drugs that we'll get online these in out noise at are two, partners, expectations of stride clear that we'll all give to at taken of that there. new would a there I to quarter distributors, I all your A and a of market, next the QX, clear answer very set Does guidance to on today year

Dana Flanders

Yes, viewing revenue pulls it and guidance, pushes in of you're how accounted how And year. kind on does. second for then the and just you've this guidance my them to one

Robert Finizio

to Dawn. that, Yes, then so turn I'll and a over it give of piece

of XXXX decision large D on, there's made a I Part for piece payers Part the So, which think three D the - four year. have you that touched calculated that, again, two we three they those, once or get we least those. decision. We forward, do as said, think getting or of planned going make do on, of the guidance, a in of at We one we'll not

not most, that's So all.

a only there. Part in single D with calculated is Dawn? payer it So,

Dawn Halkuff

sales as sort on, reorganization covered piece, force, cover is what will since which And have us, sort the behind see to we for Rob's Sure. would we is of going on I'll major focused that a the the start the that's brands expect we of payer which of Once of get the we sales shift the X. to each force. increase March on complete

is you're what in going to with trajectory will also which of increase addition, consumer, brands. spend In ANNOVERA increased and IMVEXXY the March those on see

Dana Flanders

you. Thank

Robert Finizio

Dana. Thanks,

Operator

you. Thank

comes with Samimy Our Annabel next question from Stifel.

proceed your with You question. may

Annabel Samimy

actually. Hi, for my questions. guys. Thanks several, have taking I

to your from quarter reported as sense I IMVEXXY and demand extent high-deductible Just this I result to demand you the some the year, back we have guess quarter like could to opposed there what on and trends of are the trajectory partners. allow the to contracts that those? buy-in a for ANNOVERA to going can of there that issues? sufficient by of guess, grow How every some PillPack, these what large what to where in new first [indiscernible] a that And is wonky are these and get product Push, trackers be to distribution plan continue that some of true might is? extent sources steady

the full how of guidance first you're your I you're that in based going do feel on you launch supposing a year. into as month And the XX,XXX prescriptions of the month first some saw, to obviously based I end ANNOVERA. weeks I'm on guess the just reach confident your get expenses of forward, Rx by finally, going get there? there? then of the going talk about you that you How we year, do trends the IMVEXXY, for the is per then And or guess

heavy IMVEXXY. the Thanks. much an those in see R&D of are how to for expenses How increases by offset OpEx, we increase going your You're have and vice and going much side declines to clinical versa? or marketing in

Robert Finizio

to So, a Annabel, well. give a as of I'll take and couple Dawn these bunch

for year we more of first standpoint a saw entire QX. weeks from the was the we for five saw So of what demand this in than quarter ANNOVERA

good even is market yet launched force at some there all. and fully it's effort through, So, a in definitely solid It's sales pulling there. out that demand limited just really not

expect to to continue that grow. we So,

franchise early. we to with revenue As takes of expect the forward, franchise increase which direct online, don't two for that get partners we going our and it's be to them that expect can't center far can't a speed. to these really the menopause working of own with talked which or go with outside online as go we have like currently synergistic menopause It markets expect either, we certainly you to question the into do into what us - a you we additional three, as But quarter will - new up efforts. or about, partners,

again, So QX. that's QX,

QX margins and stay all efforts, adjudication of own five will we've to first our we then think that and rate we'll demand clarity. really we I to feel a net noise of able the In to system high, only but saw be with weeks There out for product some the grow. lay in new new that going more is distributors, seen new going down the markets lot with in the ANNOVERA that's in is of confident QX.

have to do you add? you want anything Dawn,

Dawn Halkuff

launching we're for marks, new campaigns sales except that consumer the the force No, so fact the that with also should demand full continue. and

feel IMVEXXY confidence the next and our to the was we think year-end. question month by XX,XXX confident on I in why hitting -

That slowdown causes which due as us. that some well as talking about, to explained change, kick and have we're to deliver be heavier to that focus and trajectory. that I both was that sales this So But are again, should down, going be on The as forces. we're is That of that right? focusing those already of also plans able some behind certainly, program to some copay writing reorganization that across marketing the slow we doctors we're March did disruption. going in, IMVEXXY, see X, that

Annabel Samimy

And Okay. maybe… then

Robert Finizio

Yes, back. the coming So sure. growth we see right

- we reorganizing as from the to pauses, entire of So and focused reorganizing commercially throughout a good a clinically centered 'XX, talked sales about, pharmaceutical a containment, we organization company. did, pipeline amount this all marketing cost entire place of

some there. very in shape good the cut So, measures think containment the with been We cost us cost leave should able fund we've to plans. that to marketing

So, that good pretty we're we forward. to in evaluate of right But now, continue shape. as we'll going think

Annabel Samimy

thanks. Great,

Robert Finizio

you. Thank

Operator

Thank you.

CJS. Larry next Our with comes from question Solow

You may proceed with your question.

Larry Solow

you very thank much. Great,

answered. were questions my of Most follow-ups. few a Just

expense the on operating quick side, On follow-up that. just a

somewhat little sounds like Is will and higher that. the say? upward a going fair going that But that's trend G&A it than I S with the So, lower. more to guess SG&A bit

Dan Cartwright

Dan. this is Yes,

assessment. I think a fair that's

Larry Solow

Okay. more guys, a going in bit? is about for sales later do you more IMVEXXY, you BIJUVA, question like just bit Rob focus me just product larger run seems to to risk little And shuffle maybe lost then the a to a the pivot a worry ANNOVERA, sell high-level. little more or little get and on that. a incentive maybe and Do of of a little towards the having than gals, there on, the It

Robert Finizio

second a up not companies there's And a absolutely brought We of can't have here. you there, do cents point have But his successful, that's look at is that of you master. great team team of three you the Dawn really up at pushing on, and look launching have Very that's do multiple if multiple specifically, we once, first as incentive Dawn once. And a it. organized, because certainly have going And there's he I'll put team be expert right? all the want she's all background reason position. drugs Chris reps if focused launches at flawless, once. set and execution drugs that's at the comp, we to and at well a here in Yes, lot the the Gish, because way couple the

rapid pushing sales earlier, for in in we force launch year through BIJUVA laying do and second when said have to everything we full will dose the of place to that come be as uptake. So, when future a really a the foundation get that menopause

the of still the that the it's down, first menopause As slow second, does message. beauty far the of organization, when and finally rest IMVEXXY is other a reps, IMVEXXY ANNOVERA, XXX as it's

and Dawn? could naturally go it You right BIJUVA swap it. with

Dawn Halkuff

Yes, just the think that, to so way add going be incredibly the Larry, effective. to it's I to force, with we've sales designed

representative that right, going reality product out selling and the about are interested. people be know representative be are IMVEXXY, that. selling there really Doctors We each you're has to sell. excited sales business sales So is base product. a fun It's of But for already will to ANNOVERA. every

right have is going. give XX those which mentioned, regular a position. needed then and there, to the focus just get to going in prescribing that trying just So, it And they're to the XX folks, different we're BIJUVA, those in it to places, for Rob do we first something

that at the fact to a effective. product, beginning, said way spotlight, get and we've incredibly I its done as the cost really I I going good feel So, is about is every it in also think that

Larry Solow

sale then on challenges? growth will of seems expectations bit 'XX. little into the dose And a a driver missionary there? big of more Is some more And Okay. like it me pushed in a What out the itself, BIJUVA for be lower to are the of it 'XX?

Robert Finizio

from It's EBITDA Right? scale presence. by really focused on a breakeven. highest in has standpoint, ANNOVERA then nets, a and far the So

We a little with are where with recognition in IMVEXXY marketing just sales a place there brand have effort. great so far. Very we spend

because So getting we're and - cash dilution, company look, not positive flow don't more we yet. any want

IMVEXXY higher just than further That's brand nets to way much with the ANNOVERA. the quickest So, of copay recognition with women dollars about for profitability. get lack It's then go to with that. the most obviously only marketing BIJUVA. And two will with are so away going, those

out for things Now, instantly could if we if hot expect to, do, they We down IMVEXXY versus don't that get menopause but to flashes message those BIJUVA swap DBA. and change. them

really great. What here is did it's Dawn aligned. team So, well and

Larry Solow

and last one. just confirmatory just a question, this Okay,

decided for year-end. 'XX? other that Part coverage so you in on you're you've IMVEXXY at the have including from so year-end based you'll On XX%, is below you 'XX, that next - In is on what at - and just haven't that got what by several words, the on today, the of that the for the Does from in weeks, say also few XX% XX% The to all if is or we'd bridge XX% end D, that hear hear yet. year from by 'XX? ones

Robert Finizio

you. Got

[indiscernible]. the So, you so XX% - mean within

Larry Solow

next other few going decisions right. will Right. Because XX% make XX%, weeks, from assume right. In that within I the to bridge? words, for most What's 'XX providers

Robert Finizio

just be about coverage. want to clear I you're D the Right. XX% is that the Part talking

Larry Solow

Correct, correct.

Robert Finizio

and is XX%. XX% then commercial because Okay, Part Correct? is D

top seven, all decisions the this we made Yes. right? four commercial, the to class. for and We the D have have of your have of three for not side, XX point, On Part top

through you those. walk me let So,

the just a down early due the divestiture go that's They It's of as and be for doing month, they'll we close is to other forward decision over with what And one want. it that Centene. We each color make will ESI. going X, From this don't Due pretty think not I'll part we portion so believe have also that mind WellCare. late WellCare PBM you will next when So, right? then Then of is to their quickly moving I equal PBMs clear, yet. ones. the with It's will month, CVS. CVS being give on CVS, contracts of to a lot three. know acquired CVS It's And some clarity taking process. and you completed it's That's just to there. going acquisition. this market. by the to quarter. through April that, right? understand, frozen. be Humana good their be and alignment that's about is with You ESI they have United. other process up then XX%. their other And

we Could two CVS, expect any April? drag large which we those are of this least don't just Yes, have decisions one of three it. of large, very expect then into And all on. quarter. but don't at very So, table here, time we

Larry Solow

Got it.

of ones, then theory. you that these mid-year XX%, in larger So, a includes thing some right? like getting of number and of then, coverage actually That's then, type target that's more that

Robert Finizio

got from XX%. in believe the I'm I going Yes, numbers we I above so XX%. those of three front it have if the D. way, memory, actually probably class. don't got four, would best me. the By believe very be of product but be or XX% would the I we to if close two, the we be about it covered just Part in would of best covered well

had just of four. two the You

Larry Solow

Thank thanks. I said. Yes, appreciate that. you. Great. Well

Robert Finizio

Larry. Just commercial We're clear, side. to done on the be

last plus the XX, all top it. of behind two. the XX Like have we we said, got we So, players a number regional of

Larry Solow

Got it. much. thanks so Great,

Robert Finizio

You it. got Thanks.

Operator

you. Thank

Cacciatore from with Our comes question Company. next & Ken Cowen

your You question. may proceed with

Ken Cacciatore

Yes, good Question congratulations progress, guys. on first. all and the on morning, ANNOVERA

us will to it the briefly, product Dawn, talked have you using use, wondering what you about of this And but and that some why? this now And do substitution. you've kind for that, try be with as to do continuous for can think sense eventually of Just maybe IUD had give go a you then peak a patient little modeling, with an also, And situation. IP sales maybe product out-year the a expand patients percentage experience, the wanting could and us bit where of know on clinician let continuous of we use?

costs. couple Next asked a times question of - on on been is you've

so wondering, to covenants and use? the is down just Just to to as ask if more need QX maybe covenants, the some specifically, run I on us can you then right. and wondering want And minimums have models our lot. a rate could the Thanks a drill remind good maintain of cash well. you just I'll we lastly revenue

Robert Finizio

could use Continuous yet. employees ANNOVERA, patients percent will never with don't company Obviously, to Dan don't it's the company can use. I I you for give to it's you, sensitive for products, our Sure. using tell ton ask because know too With don't on just ours, for I'm going control reason ever a and we associated is take early to way something of don't The promote a anyone a to we piece. we birth allow off-label is there, then a use. down piece that's a the to - and off-label right But it there. to off-label know, there continuously the it of to as with it and of up is kind it's or I other honest area it right? Again, this, be We is what promote it for I'll off-label. hand cash off-label. we Dawn, to want - lot don't turn want And products then taking I legalities the of Dawn. information our give know. but wish to of go over road, that you more

Dawn Halkuff

the where interest the bridge control And in for The I'll Ken, year, is language we comes. does maybe right? long-lasting, patient's work product a Because really use that's too. and the

That's doctor on are patients. that their necessarily not the so a it's that continuous substituted and What because in require right? up procedure, see the they this there it use, it's long-lasting a option that and many can there's prescribed of patient So, lot first for that doctor doesn't to interest is for. how types

have are a of this not know - know pill's of are for of this or what anymore. long-lasting traditional so, type for schedule, that, an option great there that's they working travel, a them they that And want physicians they because the because hey, that you patients is don't number them. I option or hear from that And

and on that The other is overseas why situations, so are this well. as like formulary many just gotten piece is that in military, are we've with people there the good that's for that quickly

based a that long-lasting seeing of option. we're lot what so, on is interest And

Robert Finizio

that is to now. simple so works is the college using look universities. IUDs better in the young big. product significantly. segment like really we orals XXX,XXX about then things again, annually patients know, fit is isn't market it. growing ANNOVERA as are - that military, right? But share people And for X% right such a a kids, everybody, for peak, So for with NuvaRing you market this easy has got

what of So is nets, to we be company. At just X% we net if to see a revenue million $X of that. section that all got to $XX.XX market, $XXX getting in cross billion would the the a X%

at X%? right? think we here good So think your they the think this it's to think can is Absolutely. potential exciting. next significant, So, It's IP. goes get drug I kind Do get to large. can this Do question I a I team it, of shot X%? which got on to I and

good believe, the goes amount number patents got term. so I time. the in a for, our very status which IP a developments, so high under NCE for priority we years, we've another out So, this will of extend of protection believe It's a good have four know, that of out do you team. near X.X, We

get off-patent PK long, lot took the time confident long, to just a took approved of if at a pathway get long it So, there. But was a to a done in right, profile to for NuvaRing generic three-week and what addition product that a you we feel time, and look resources. that, long very

two chasing to companies there it maybe As to might were come or three you know, market. XX

XX very So, if going where and very, patients washout, then X,XXX is expensive or cycles one-year and a a generic, it, a be that XX-cycle think into X,XXX large, you and take long, that PK, of into I very a go on match to potential try you're trial, very those to it to put patients undertaking. and

come to a in place to to have some be revenue right? lot So, it, of going after for there's

multiply it to basically Three weeks. experience times right? and XX weeks cycles, NuvaRing's XX Take

the and about generic there. we all that's our feel anyway, to so We get to hurdles place ANNOVERA. given So the good, good, that in a really exclusivity great take position to position be shape, should here on in try

Dan Cartwright

Ken, you compared How is to this asked fourth Dan quarter expenses And expenses doing? Cartwright. You had going forward. about our

significantly see it XX we and higher, from to looking like for And go there to into sales plus what with think marketing. going went XXXX were as for over goal we're maybe were from far that extensive as in March additional to and reallocate process the our than resources expenses, higher fourth an XXX at some they not this the to together things expenses we admin and XXXX far a run put we'll little put to that through I threw 'XX discussed, what in we out but we'll revenue as As able Rob year we going reworked, and being place, as revenue. have quarter as were move

you were covenants. thing looking on we Ken? as TSPP something $XX about else for then, for covenant; since million far you from And was down about requirement was cash asked there loan our question is well, loan at As you other last the specifically the - million other now $XX asked the requirement, cash your drew

Ken Cacciatore

just there revenue Yes, any? if on covenants; is

Dan Cartwright

had considered more not those have were our revenue range with there for revenue. together that and put up we XXXX, to are those Yes, our XXX when out our we we covenants, thought do in goals than with certainly revenue they XX came range; we we disclosed when but covered

Ken Cacciatore

Great, thanks so much.

Dan Cartwright

You bet.

Operator

you. Thank

Wainwright. Our Tsao next Douglas question with comes from HC

your with proceed question. may You

Douglas Tsao

morning. question. I in my be indicated taking normal; taking than to or coverage you've a terms that IMVEXXY little you seem Thanks just Hi, and good Medicare think of a Part that you D longer decisions sort about Rob, indicated - understanding an the decisions Do class - is on class. making it's is have sense of it they're that and - protracted? why a of the what it so for

Robert Finizio

P&L, their one get without get realize, spend, out obviously. us, there We've put additional just low a material It there; way; you we decisions, on But high priority, there either I not it's for right. without is D Yes, a we'll any can impact so just a know, unfortunately. it's any. the not put in guidance we think additional Part player,

and bullish as in on great are should decision we we we will think way. should Doug; make material a quarter, do shape I not either But do earlier, it eventually; this two spend, I decisions, And of or P&Ls. it's feel make to your it's well, answer good their about they question, matter just well. we the a be three said that So, will we'll

Douglas Tsao

promoting last have in portfolio? - the force of with the really several sales of the done was that something or this sort sales And then, of force terms Okay. just field sort force from that sensed you proactively something from realignment; this over was months feedback

Dawn Halkuff

Yes, question, I for know. Doug. Thanks the

recognized the that right and the did launch gave needed depth that we've in this And could at needed; to figure given would was So, and we out line give we've way. with that we that given it a so split the we of once, the launching that what to order it put we be in into reach ANNOVERA, solution full of in is certainly brands we place at it us it drugs needed; time. each were three proactive

Douglas Tsao

great. much. you so Okay, Thank

Operator

our Thank question last [indiscernible]. you. comes And

your You may with question. proceed

Unidentified Analyst

side. Few key taking my Thank you very question and for congratulations. from much questions my

uses on any more group early what you can do uses, you on population based data, for patient targeted move ANNOVERA, the data For age real-time launch? full what have and the product

Robert Finizio

For ANNOVERA?

Unidentified Analyst

Yes.

Robert Finizio

really early most remember, And used really, it's of very Again, [ph]. you low word cards speak. so to told for usage. copay have parts we mouth, very, the the so aren't I here; So, but

who, being what and you year XXX III studies; for don't they liked products product, Population data which it's at copay published, So yet. we and their like you when, we this most could well see what menopausal Council of the with menopausal even a and they copay cards didn't slice is with don't leveraging. But clinical Phase and get have full market good products. being a you where really give - real-time before filled. full really used, opportunity that is products; Dawn so they age study, demographic tell a that did what, that real-time patient don't a and is can get no We XX-hours lot strip the that when about say done see opt to study, data like peer-reviewed payers, product, women data believe, most the there robust contraceptive points the right, and come did the a can in since - don't Because practically different we with to I with I of the a that's much

Dawn Halkuff

terms about and necessarily in them. at of we're age started. quantitative, And for in procedure, if terms perfect what a and doctors that's situation, women, don't where this this Yes. grab in be of they're would want product a getting about we they add it about is don't just thing think and is, I Robert that's only the situation it think qualitative a life the point, to know there particular right; on, it not But demographic, think

Unidentified Analyst

you might… I think

Robert Finizio

But to your point…

Unidentified Analyst

Yes, Robert.

Robert Finizio

data now worked, we want. just to it's say, going I'm it's

All - more we'll So come right? to here.

Unidentified Analyst

coverage Okay, product, IMVEXXY to don't with to program D? sounds know any or good. when being the BIJUVA be And addition it it's on revenue expect I expectations year? And major BIO-IGNITE what BIJUVA, driver and the we the the market for for in driver Part IMVEXXY not would for additional comes active this

Robert Finizio

Yes.

above what you look, slide, there for driver in a additional slide; payer get and will team don't that it if For to answer But your of me two products. but is, payer products this I be a be idea all we so front we to do I mean, all expect need look, main product; have two. this but for are expect for of the we that go, revenue have IMVEXXY it to right numbers all we the continue to is three we're number will to our coverage the XX% year. ready grow we that, our year, sales to did coverage question main do we meet is

expect expand don't pre-natals. to on coverage only the forward, Moving one side we is the

Dawn Halkuff

I get of would so we we've the create in marketing question, be obviously out think IMVEXXY, we're terms that your And putting the for Yes. consumer demand drivers other there.

see be we well team places. BIJUVA, to it force driver to resources think going as working but we that this be the - will and that special menopause that still with to so far the also positioned appropriately, really closely together, BIO-IGNITE sales were to a grow As we're appropriate product is in continue grow; the putting

Unidentified Analyst

taking Thanks Okay, thank my very you question. much. for

Robert Finizio

Thank You got you. it.

Operator

you. Thank to turn to like And any would remarks. for CEO, Rob I further Finizio, now back call over the

Robert Finizio

quarter. look a for ends, everybody a thank speaking quarter to forward want you year I Great. and great you. and great to next with Thank

Operator

Thank concludes you ladies call. for participating. conference today's This you, Thank and gentlemen.

disconnect. You may now

TherapeuticsMD (TXMD) 20 Feb 202019 Q4 Earnings call transcript