TXMD - Earnings call transcript Q2 2020

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Operator

Good morning, ladies and gentlemen. Thank you for joining us for the TherapeuticsMD second quarter 2020 financial results conference call. [Operator Instructions] I would now like to turn the call over to TherapeuticsMD’s vice president of investor relations, Nichol Ochsner. Nichol, you may begin.

Nichol Ochsner

Good morning, everyone. today our joining and financial for update. business you to second-quarter discuss results Thank issued release, a financial TherapeuticsMD morning, This press results. announcing second-quarter our in The company’s section. available is the therapeuticsmd.com, press media investors on and release website, the today’s Krassan, Chief Officer Halkuff, our and Finizio, Executive chief On Officer President Ed Officer officer. Chief Financial from strategy Chief James TherapeuticsMD Executive call Borkowski Robert Commercial Vice D’Arecca, Dawn are and performance Mitchell statements. call that everyone certain made may remind be to conference forward-looking like would I during statements this are current will contemplated upon there be statements and forward-looking results Such the no based in can expectations, assurances be that statements these realized. may other risks, statements due some reports SEC. filed results our our to and are materially which and factors in with identified the of Actual from of press differ and a quarterly such release number annual, on statements as update to information to no TherapeuticsMD company statements forward-looking the are available today, assumes and These obligation circumstances change. based conference online section An company’s for replay also today’s audio media and will investors available and recording of the call be website. webcast the in

For recorded Finizio. of webcast, held TherapeuticsMD call Robert replay to was the this With call be or and may the over listening those X, I’ll turn archived XXXX. CEO that, the benefit August to who

Robert Finizio

results then morning’s to to Good amend call over call reached you, the Street Sixth on revenue we open for with an Nichol. quarter. strategic the overview, our morning, and update and James I’ll turn provide with thank this financial our the a to agreement covenants that

COVID-XX, of early the for to and growth April second Starting Dawn will COVID’s has ANNOVERA with bottom, Dawn we’ve was impacted been health say I’m quarter, will the growth the our key on strong year. walk eight experienced XXXX, but the state current efforts IMVEXXY quarter, including pace took cash the accelerate of total of and we weeks. focus our noncash in extend IMVEXXY had million ANNOVERA even the VVA XX you fourth operating Management Next, to half impact. items. the of COVID past due and our and COVID-XX. refocus strong remainder and both to our control trends by decreased the same reduced to the on to the our through review expense over expect to by the weakness persisting. classes. target excluding approximately throughout birth commercial Women’s We and of plans significantly why BIJUVA with steps $XX runway happy proactive

during Next, to minimum our our show our to understand revenue team our operate To we COVID-XX James with agreed for accurate minimum with Street Sixth achievable, Street and fully shortly. you growth realistic, update this Sixth trajectory wanted to ensure calculating management they as full were COVID-XX’s before pandemic, impact. will covenants reflect covenants quarter a revenue to

progress changes operating of of the Board made reshaping In and significant addition, board the plan the of Sixth to the TXMD Street, and undertook of management we also Starting our with or team. directors. Directors shaping

and reducing by Thompson XX presence of nine directors, director. insider Chairman female our directors three from Our doubling from reducing to one directors directors the our to Tommy strengthened board director membership

the laser-focused veterans a our a From and brought honored pharmaceutical Ling management and we added I D’Arecca of our Karen an previously of perspective, Board year, like at VP Chris We’re both accounting who consider seasoned significant to have raised success seasoned now has extend to turn Pfizer strategy all and and chief president, of one new HR, of basis not CFO reaching the to Gail Paul breakeven on the TXMD best-in-class. VP welcome in executive Ed a executive to our our a XXXX. at and officer sales quality to what Allergan; TXMD With at in new a Ben Borkowski, EBITDA Directors. and to warm Gish, D’Arecca? quarterly CFO strategic was is who who already has the James and track operational contributions like Sunovion. previously discipline; changes, sales also on call CareFusion at Mylan vice James of thing new outstanding this changed. has previously Naughton Chris finally, I’d made has BI; Bisaro, record these over Foulk, program to our our new

James D’Arecca

here. because seeking which help an become creation. be to products, Thanks, value excellent has Rob. poised company’s impressed also I management, and an that meet to ANNOVERA, and women great team It’s to TXMD drive company’s been assembled saw it’s marketing opportunity the the reversible particularly nice everyone, I I is to to contraceptive. joined attracted growth. drive excellent for sales long-lasting, particularly option believe a to I by I was was the

business opportunity the first into dive I the During of impact to colleagues, the needed with my us in a clarity COVID along also to successful few previously having minimum our revenue Street. I revised forecasts. on a weeks, COVID-XX our I covenants from real-time. company’s the that that the savings deep previously due the initiatives proactive set conducted assess, announced assessment was had to gave renegotiation cost my and announced restructuring with concluded for Sixth company’s foundation

minimum is million for fourth ANNOVERA, with continued In million, with and that the the for IMVEXXY adjust financing apply was covenant agreement this Sixth fourth quarter combined this Slide in we million the to covenants Sixth Let’s $XX year. to The covenants. amended Street and The first-quarter pleased revenue net $XX.X regard, XXXX, announce net X. I’m have revenue million BIJUVA. amended minimum revenue minimum second in to to the quarter, of total million the revenue covenant set In the quarter. Street our revenue to $XX.X $XX.X turn third $XX in the to

months. that are the appropriately. has process the minimum time covenants environment resetting four This performance of us covenants, COVID revenue took past sufficient confidence our to part the litigating set we As for evaluate given while for the

not not can back XXXX. the were guidance company, and they the half the was Sixth financial quarter confidence covenants launch the by The moving forecast pandemic. of to available Street in the company for the in designed these on in do represent the forward tranche, of While and and be ANNOVERA post-COVID timing grow with million into year to commercial our the which caused undrawn based due following second launch are that revised reflect our $XX amended we the pause COVID-XX

with regarding dialogue active an is financing. there Street potential additional Sixth However,

to forward, sheet. balance steps our to we Moving plan strengthen take

that our our maintaining capital as Our needs driven cash of supporting products, infrastructure funding necessary working $XX billion debt, facility. by minimum are minimize the funding Street equity launch thereof. potential balance Sixth considering a combination by balance all sources would or include the of striking we When while alternatives, additional seek required among and dilution of funding capital to a by a capital,

growth that the several drive believe we the significant over TherapeuticsMD has fortunate that years. can assets are We next

to financial quarter. Let’s review second results from our move a metrics of and key the

quarter to net for in X. second the Turning million. at came Total Slide $XX.X revenue

expected, was providers visits the in quarter to impacted a the in impacted second negatively was As significantly healthcare quarter, volumes. reduction by that Early there patient COVID-XX.

of rest we outpace of throughout inventory wholesaler pleased expect early quarter, the plans and ANNOVERA momentum saw drawdown resulting for through demand a to are in orders, execution in this we More to the patient XXXX. of building see continue recently, commercial in later the channel. our However,

will for key now of Slide now X. review Moving to metrics our I each brands.

ANNOVERA. Let’s start with

pharmacies, at As million a delivered ANNOVERA with resumed $X,XXX of March, it $X.X July we sold revenue which approximately per the the second in commercial ANNOVERA quarter. paused calculated consistent of X. units reminder, the full first was net and unit, from and launch wholesalers In on to quarter,

As rate to of the we strong in the vast XX% Dawn an of covered adjudication a we already are will growth co-pay. for shortly, ANNOVERA cover With had majority patients marketplace. regard without payers, seeing with

quarter. Moving million revenue to According units revenue compared unit, due we to achieved $X.X of was was overall the to for from for primarily The pharmacies calculated XXXX, the adjudication believe and the IMVEXXY COVID-XX. net rate overall sold second the XX% Symphony fourth-quarter of which wholesalers per Net for was class IMVEXXY, we $XX. Health, to XX%. when was to VVA quarter XXXX down IMVEXXY for

However, managed time period, during a have growth. share market to modest IMVEXXY the same

Please are to growth later. in for pharmacies reported will units XX. the XX%. Net quarter. to recent per indicators, Slide for BIJUVA. And at from see and sold rate $X.X new showing move the cover finally, We prescriptions adjudication early revenue that $XX calculated BIJUVA with Dawn turning We overall unit to net million pleased revenue was wholesalers to of

expenses. BIJUVA gross negatively the During impacted $X.X million a triggered million BIJUVA charge impacted to negatively write-off decision sales deemphasize to to write-offs margin of that our that and a operating $X.X that total impact our included samples our cost second quarter,

COVID-XX reduce of revenue, expenses. actions our impact expected the Given net swift took we to on

range other measures came at through expenses $XX.X costs. second-quarter and We $XX.X second million we implemented $XX.X the to for deferment expected the reduce operating in expenses quickly quarter million. to of to in spend of Total be marketing million

with in were down write-offs, to still plan trend excluding in expectations. million, line Excluding expenses our the BIJUVA million operating operating items. total to $XX We expenses quarter, for noncash $XX.X the approximately fourth

drive additional growth pursue performance, further employee SG&A investments we on to and depending However, enhance in may retention.

used second operating activities in the cash was quarter, million. During our $XX

quarter. to EBITDA plans quarterly like the which plans, in was cash to the and We the Dawn the our impacted XXXX. the were executing strengthening our revising goal our our commercial revenue reducing burn of for quarter progress burn discuss call cash back incurred our ANNOVERA, first I’d commercial on accrued and balance basis a expenses of $XX in to the in half million for breakeven Our our of second turn on in by believe launch sheet paid year. support now covenants, over becoming

Dawn Halkuff

Thanks, James.

had on the start Let’s COVID-XX with impact QX.

to remainder for all of XXXX, caused COVID strong in adaptation scripts happy April mentioned, a we growth that of in and opening plans July and with for of our the to Rob I’m March, June decrease access with portfolio continue May. As in have and our COVID-XX even growth and that to returned the headwind. the very a expect say significant products

plus impacted payer with XX D.C. paying products. co-pay. access patients XX. had majority currently the to states, XX% COVID access move we progress unrestricted payer in of Slide though has fee-for-service the has $X across with now side, vast for ANNOVERA Let’s Starting for our is sales have coverage on commercial the Medicaid quarter Even ANNOVERA,

represents a in which market. We QX, on expect decision the overall XX% of Medicaid California

met IMVEXXY, our remains access XX%. and commercial For at we goals

to added Part a We D as announce are payer. was happy Wellcare

commercial with to Anthem. secured. access Commercial unrestricted XX XX% addition on increased and CVS BIJUVA. have top nine of payers Moving now to the of the We

Let’s to move let’s IMVEXXY. On of our XX, products. with start on each plans Slide the for

said, drugs fourth class. on approximately IMVEXXY continued to COVID. VVA than due we class flow decreased mentioned of the The in a heavily As environment That this were class declined were quarterly takeaway, week Since basis less this per patient the by deliver and the prescriptions to impacted the earlier, modestly. grew XX%. XX,XXX affected quarter, share

have assets our weeks and a open believe refill we IMVEXXY to are in seeing a reengagement of value And to given TRx the growth of started straight each class growth. new precursor prescription eight up, patient. and with we As rates in strong

Moving to Slide XX.

Let’s A review year. the initiatives campaign woman fuel our the launched believe of be IMVEXXY help will growth a we August, holistic care will that new focusing in as on consumer in second ages. half

extend campaign for video to social to to reach. We plan also increase patient and consumer the mediums testimonials, our

we positive momentum us since to adherence reinforce that messaging has driven In launch. continue for addition, will

has to Similar by of been May, Let’s COVID. over most heavily The to impacted XX. July move approximately months Slide the IMVEXXY, on were XXX% ANNOVERA up a and trend. growth month which strong and April on were June for upward ANNOVERA

given In of of and compare to If would and X,XXX January XXXX months still with we the the quarter, up leading growth We X,XXX had second reading throughout prescribers demonstrating continued reestablishment ANNOVERA, you even results. were COVID launch we strong headwinds approximately over July the trajectory. June February, total XX%, pre-COVID expect approximately to our these prescriptions.

XX. Turning to Slide

were calls QX. in force the to model. So In has versus hybrid XX% May. column, our Starting with left-hand sales adapted to a what throughout the live June, led XX% acceleration of selling

time. is we and conducted, focused Our how expectation no the training the been force on is new this call on and sales technology being during agility effectiveness matter have skills

can focus birth a and demonstration quarter, you the in providers be attended column, to that second continue our middle programs speaker COVID. the As XXX over in control during a see ANNOVERA virtual

a telemedicine this Slide XX. trend The deliver in Move Moving fast on we through key believe telemedicine. is column well-positioned it the the segment telemedicine. contraception working during world a to COVID-XX right, access is important started channel as driver to to an and was category in on growing is within saw patient we QX the XXXX. are We and

we trajectory, of switching from great From as the relate higher seeing able are ages, Although to writers. Slide in of XX. age tend to providers as something to their long-lasting easily a original IUD still is proposition see that from early early From for understand patients this their ANNOVERA. suggesting lifestyle. NuvaRing that and early of for option useful option have see option a for women, younger patients provider viable be adopters women and we and likely control. as great perspective, procedure-free, perspective, are our range a Move of the some but it only and reversible, Both insight adopters to we it their a as a value birth received average is are that an patient XX, writers, low well seeing launch

XX million with million have early take a ANNOVERA and wanted to opportunity future While share. To achieved market put minutes large products over ground has annually. in ANNOVERA, women perspective, larger ANNOVERA’s pleased leading a category in X% we traditionally, with are to and the to the I this growth time new market in few us prescriptions opportunity X% for XX progress opportunity drivers.

Turn big ANNOVERA If the The As said, ANNOVERA, as taking to you over you you of start on launched months the for patients Slide right, confidence would can which return our on grow to prescriptions to column this approximately consumer. four provide see achieved consumer driver that Unapologetically, see is share to Lo volume approximately see media illustration growth. in in a for on ANNOVERA indicators to and action begun success, shows the years. it investment an XX column, start now campaign that middle X. That in have in launched called about seen level mean XXX,XXX this achieved of Loestrin July the Typically, of next positive see time. future the annually. nine continued year growth early we XXXX at

to Moving Slide XX.

early our indicators. are Here

Health impactful You can of as is with as for USA Mentioned see million, relations pharmaceutical ANNOVERA Today well brand. in results that Women’s the magazine, as XX and product our noticed. consumer are a and a public campaign circulation getting differentiated

in and in addition, In XXX X the digital visibility, over that campaign quickly less show month. the million views metrics our million resulting has of gained impressions video than a

the brand the picked cultural of has the across Finally, been up product campaign relevance and media, the showing and campaign.

XX. Moving to Slide

You fourth remainder as will consumer pull-through and launch consumer provider, we expand can to to Takeover, women that one our and initiative during are are consumer online ANNOVERA. the new Millennials connection a every a seeing launch of August, impact a well-known influencer in see content of who campaign generate two through millennials we finally, awareness drive to have to we quarter, September, the the to we their in the have Later of initiatives users deepen followers. into month. well-known POPSUGAR PR ultimately, ANNOVERA the initial will a reaches plan product. medium year, we of which programs, will the that broaden In the our ANNOVERA campaign. the message including amplify And influencer will of

this as year, Turning quarter in are begin we we will renew the be growth that to who to their Beginning driver of the have discussed a refills. to have opportunity of started the area in Slide XX. ANNOVERA, see patient prescription. not for fourth that future will ‘XX, October impact One women

X due patient for the women over In was in they in free the would by at conducted on opportunity pay acceptability and of to the if XX% population if X,XXX said have we XX% council. to study, confident data the women intent refill study even a had refill are it. robust We Phase of patient continue of they to

As as but the The majority out us a are channels, driver for pay in ANNOVERA refills pocket. most vast for growth The years grows. the to of XX. out of final reminder, will Move significant at year. achieve these see markets multiple for X% $X volume and we we Slide driver growth be to the will for will ANNOVERA each all women which an opportunity the back of market product X% share time. over believe volume of contribute in channels which of believe us the this the are We stage, half early of help

with adoption No.X First, business, in on we the call the most to the of provider here. segment position spent on commercial the building the XX,XXX of XX% the market, sales are date continue from which in this and ANNOVERA we today. have we of focus we the time will is our our as Most providers segment have with received force progress prescriptions with and

to about a XX% quickest public of of fashion, which market. is Public maximize order are in working the the on a health we with provider Health, Moving to opportunity this Afaxys, in total clinics. meaningful In opportunity, No.X contraception

We and the have in begun XXXX expect segment remainder beyond. just and of acceleration this throughout

military seeing are the addition, category, into and have bases have put it are XX WSI, given expect for larger the birth formulary that been percentage of have segment progress on move channel. We only be but small In us has we of that the the pandemic, with into working a the ANNOVERA, a reversible, option. slower facilities only procedure-free leader open. XX to This now ordered. control we XX selling is This given but to long-lasting military as we we bases are

early providers QX focus and directly new patients. meaningful as are in birth leading acceleration we working and quarter. on saw with the begin prescribing filling third online we volume channel working in platforms online expect to with telemedicine We who this Finally, from directly control

just throughout bullish continued why the multiple and year. the early you beginning, the we acceleration remainder ANNOVERA on can on channels growth the of see are seen that With are

I like I’d quarter, given writing limited the second Before had to the prescribers focus on XX,XXX approximately decision BIJUVA prescriptions. total are Prescriptions at BIJUVA, we the stage. result touch BIJUVA. to this end, encouraging, X,XXX leading of a In quickly to approximately deemphasize as

through to the writer base is XXXX. goal maintain remainder Our of the

XX. Slide to move Now

continued FDA are the on and and aware by The compounding July ongoing were of to of over NASEM community. the debate report of aware future practices. referred the of Recommendations released We report following compounding Engineering hormonal that Report, Academies we the this compounding are has for is Sciences, as on X. the regulation the commissioned a National compounding been on Medicine decades, area from and pressure on

Our unchanged. is approach, advocates ensuring largest the at critical and and to program community continue our the is of we remain and compounding to market however, be to XX million segment with The E&P BIJUVA is is market approximately XX women’s prescriptions within We partnership million future growth. therapy. will hormone to available for pharmacies, BIO-IGNITE committed and health

of half Let rate the end covenants. minimum thoughts are me back or growth, on on to track some year. At we the revenue with meet current the our of exceed

our We now, for launching seeing the for call the Afaxys COVID are is are and health. about in With plans and for short, like place. the current it as is the cost with variable, just WSI we military to significant closing portfolio Rob ability we and remarks. XX% even starting that, to continue over we a will from live to partnerships but grow to execution I to are Further just ready. plans growth now, portfolio, needed. the to In as telemedicine, with adapt environment acceleration accelerators turn fuel be with will today, consumer our the of would see as well public

Robert Finizio

breakeven focused In breakeven EBITDA EBITDA revenue closing, on driving in achieving we’re Dawn. XXXX. of goal -- and quarterly Thanks, our

of the as momentum it in half term, the That up we’re expect the seeing, and about questions. we’ll as for near to well into accelerate open excited call currently said, XXXX. We’re being back the

Operator

Your first question Louise instructions] comes from Cantor [Operator Chen, Fitzgerald.

Jen Kim

few Louise. for taking is have Jen This Kim so on Thanks much questions. a Hi. our question. I for

will numbers? maybe aren’t can but this outer is, certain drawdown there have going Is refill. what you year noted guidance, you ANNOVERA question I a you what I assuming know you’re is, around the channel on of those some those assumptions the in My in know covenants? women’s quarter. covenants formal percentage they that of saying sales a rates additional first inventory color you second was The noted in into refill give

of So revenue final is how through question, normalize And expected currently? unit. carrying base to on Are we just Thanks. the about starting next should that? Is how Or net about an think my in third that sort that that at we to think update should per quarter? quarter? still then, we

Robert Finizio

Sure.

Jen. you, thank So

to couple around of I’m So pass those going here. a

rates, you say IMVEXXY. Correct? you’re refill So for rates about or I’m assuming refill for and the not when talking ANNOVERA BIJUVA

Jen Kim

Yeah.

Robert Finizio

with answer, to think lucky. should to what think we close don’t I well and approved, We The XX or level get So, pretty population very population To minimum much a you covenants. so this we it rate research give council rate of yeah, the anything blunt them, it we’re even with it did refill be. know to yeah, so the product, revenue our large refill a XX years years. reach took need that we think,

take easily growth rate, through you flow If our just current those. we’ll

And ANNOVERA. of you COVID things guidance, the a lot will with months have -- for here, headwind, near holding to So XX of seen boulders and strong We converged that. A does us said that There recently they’re down we eight next give very of them which also before, we’re ANNOVERA, things. during to we six of accelerate disappear. feeling, but gave back moved certainly what as over has know XXX% expect weeks, see ANNOVERA been and the rocks growth. but kind over August, acceleration is that of confident in pretty expect the finally millions has growth call like slow expect without we with a we kind and September, we you COVID when term, launch. realistic they faster last to the not I -- in

in can start faster a that, to even August, lot to as partners, as And of early a for the We in Dawn went expect acceleration. reason. see week detail you second into our some addition of as

seeing much of X, had then, And of those types the great had from telehealth ones take Dawn nine some months from You’re are of consumer successful really early the contributions things military. starting. typically, pull to phenomenally the some through. Title of any campaign not a folks, other We’ve XX but just contribution to that Public Health,

So you see for none ANNOVERA. of yet that

contribute, We which expect all open they significantly. drawdown will turn over see even that, going Mitch? August I there know some channel. here that to With and to that But good before acceleration in in I hit, going ANNOVERA you and September. to question left some for acceleration And have you’re is Mitch. that being to said, I’m the the one

Mitch Krassan

The we X,XXX thank OK, patient of going to about good greater right units be than to to levels inventory with quarter in channel. you. into now, the channel news up of demand. reorders keep they’ll the is, a inventory forward drawdown and where came was what just level we a What this is have of patient gets sold in the demand, saw reasonable demand,

Robert Finizio

what confidence So additional piece, the I of outside else would that on there that? some and expect we this very, I in refills refills. -- escalation I very missed QX our QX. and Is good in on will gives together, talked solid. Putting about. on the anything bring I think all performance be to last really would us

Jen Kim

that unit. normalize quarter? per in Is the expected I to on net update still revenue third think an

Robert Finizio

unit. So net revenue per

last held ANNOVERA, talk when So in about from quarter. we it

$X,XXX, our it were to expect for event be continue to that we would unit one below In ANNOVERA revenue forward, per the net that of down Looking that go to strong. couple DoD, the means Title getting very programs, X, is disproportionate, that revenue market be which and be very, would honest. to the that strong very will share, XXXB incredible welcome, Medicaid, signal an government with

we that revenue brackets growth, yes, $X,XXX, if about have. developed So growth which it get proportionately government the again, we our welcome. good means we’re around does of revenue targets. considerable down one areas, But They’re in having the we would feel below

it. by it it do down, happy to We’re the we any way, by dip dip wouldn’t if And to did means. down significantly expect

Operator

Stacy Ku, from and comes question Company. next Your Cowen

Stacy Ku

for the Good morning. how’s congratulations and my going? questions, Hey, Thanks on it taking progress.

of return bit So just pin to extent a to I And down Symphony to that’s little been activity rep the of trying trying take to trying month the the this about How be understand thinking we July? terms cadence for prescriptions normalization of ANNOVERA I’m growth what far was kind for maybe should sales reported of growth. the QX? and as for month-over-month commentary have in any well? we so for just of QX more

Robert Finizio

sure. Yeah,

So piece, okay. off and that’s hand Dawn, to it if I’ll first take the I’ll

able how of that to systems are Our spend anybody. when track OK? in operate. states that. at mean, we So two that operate, doctors, three to -- say are with track hit, And when think, or couple we system, the see I a reps to down in COVID able Edge virtually went only, what much I able And we time I look to face-to-face reps

bottomed, you’re Dawn since developed what that is, I new did it and April So entirely implemented new seeing in skill a programs uptick sets ANNOVERA. think great we literally when

modeled ourselves I’ll for call, we expect with it caseload turn and said, So Dawn we’ve operations, what here, from to that over being these covenants, TPG XX%, on see or with sales and a we is what what headwind we the COVID.

from year said, that XX% but the of least only OB are truly VVA last today. a sensitive have and and then of our throughout GYN higher. expected, And much we’re that birth is specifically. hot sensitive more GYN we XX% QX being and what’s is think is control, growth. will flashes that for seeing are doctors a and headwind what year, a than much is this remainder will about with perspective, QX that caseload, BIJUVA. So stop will not next going into These

Dawn, some grow, August with you’re add? here. wins acceleration will see our and anything to We believe, to to continue going of September, we and in recent

Dawn Halkuff

And Sure. back covered so go fast. information we -- to I maybe could I know lot of a

Let me XX. Slide back to go

to So activity, right rep this into continue I about they’re we open that calls. and of know XX% close would rate down. live, live sales are seeing markets seeing we’re up first, And We on year. end now, expect the the

think get or they time. news contact are no is rep able is being the when in the that virtual, live I have good to they’re even with they’re there virtual, in matter cases, more And some we if physicians.

think I really have figured to has So impact, how sales out no what. the matter organization

the from should And the force to that’s seeing But we’ll is, Your sales growth in expect really we’re Most the as that where the about continue see is question think growth. are you’re next are that to certainly, -- of I’ve forward, we we of what channels and the covered. date prescriptions terms commercial in commercial I like these that we’ve going a us, fourth Health segment. focused. segment, in nice because quarter. acceleration online those the QX. gave mean, volume us just channel, the and really really been to Public trends add has and military, to which in And the areas our But really anchor solid some meaningful gotten are in third started for

some biggest just said, Rob As started with of the we’ve player.

terms positive the a ROI, of year board. is we see see PR, impact and views acceleration. as to really started of all should expect nine I in driver, reality it July that X. that the addition, is to that segments, with mentioned, takes consumer months in on And all And impacts seeing that what the I would give to together, And biggest we’re the the would across start really the start us although So which campaign. the

year. term So throughout in bottom the near line continued acceleration and

Robert Finizio

these I not to it’s first Stacy, in consensus that’s the way have there. out the into somewhere the XX%. COVID. about the let believe, should need giving could at ANNOVERA at can out people range is there public it anywhere you go they in talk hit the don’t that which is Look, these did strong, guidance that issues a see it, achieving to that because it a but be consensus at in as thing rate. refill we look and their is whatsoever. at about lot we that One don’t mid-$XX don’t to we look But yet models Dawn but rates, market. due a take healthy Obviously, see not the that is certainly We as out of to we any $XX we’re be million, move could all, -- escalator And when is there, October, million data numbers very last QX. don’t most

Operator

Your from next comes Instructions] Tsao. Douglas [Operator question

Douglas Tsao

Can hear me? you

Robert Finizio

Yes, sir.

Douglas Tsao

a think the Ring. start and and couple in don’t many XXXX? at Part more product in it. I the terms some indicated we One, of COVID. some -- missed XQ. -- in Typically, obviously, in progress, have Just, do of of questions. of of process a long-term have I know just are this typically the has starting on Or might of sort you like you additions D how IMVEXXY, then, be of about a and like getting as you which So to information, But like of product sort if terms impact patients renewals terms sorry Where that about are ANNOVERA, I if XXXX? suspect focus point And of and we disrupted more could we to made by planned we have see are ahead been there you’ve, -- plans? an think renewals,

I refills? think over your product the to guess, once, the times, so the NuvaRing as model. an times. patients about help that sort on a three sort twice, of you renew Thank patient how And I mean, mean, do average have number and build we term long four typically, Just potential proxy. I like you. using of of

Robert Finizio

you. thank Doug, Yeah.

But hand question. of win, which general Part a to is going is big COVID, getting up, surprised one far off IMVEXXY those. D next get as We Centene. I’m the think, which were we did couple So during I as

can’t want left two a you. we need those three get leaves shut position to away, the we we’ll that not you talk to go any confidence this give get. you I that can to are saying, that class or they’re I in we where So This is down. year. tell don’t

and into push the other going point other the that overall this that I I lots more getting will it’s year on, on to So April things the our patients than drive going optimization, to when with but COVID, was enough of you above don’t can give of I time But wish we goal do this any tried literally really co-pay that which card last I color, XX% think other year, start that. optimization. color have bring -- year, that starting not or it this for higher in X% also X% cost We program is just to year the your distribution program you’re that in with can’t of doctors.

clearly can trouble. working, card things they articulate callbacks, getting those aren’t and in You programs, to providers, don’t these it up and end you change start your you co-pay some

to dialogue doctors programs. XX% full and at, have visibility at wait So until we we’re least, a caseload implement before with those full we going open interaction and

X. we start January the hoping That’s We’re goal. current can

refill to guarantee then, Dawn D. get the be over continue because as to surprised far it. we Don’t just but of as going to turn know. And if Part goes, have I’m that end another the going on year, can’t here to really don’t to one certainly before work We’re I I

Dawn Halkuff

Sure.

take the question, let me Doug. And a for of thanks this So from angles. couple

First that BIJUVA on focused patient the it’s what rate. And reminding refill of refills. refills experience think thing let’s highly in and good time. drives which actually very I acceptability our patient with we that ANNOVERA. proven we is the the drives terms of is and that we’ve category our What high with And adherence, is the second we with study product, what from refills a start do all, know for drives IMVEXXY above are

something it’s of part that So is model. our

about you monthly we have product. proxy, is NuvaRing, not is -- a see NuvaRing for per NuvaRing of it’s year. they what data -- expect as study, that renew. terms that But What X,XXX relevant I that a it’s it’s five those mentioned we the so In over really because significant, refills would from pretty have would would was ANNOVERA, women, the you tell women and for XX% of that

above have drive we’ll don’t And it’s confident volume the data, we said, significant given for to mark, place. as have I’m in Rob I be going XX% programs While the ANNOVERA us.

Robert Finizio

How you think? many leaseholds -- was this a do question,

Douglas Tsao

guess, in, question, I it’s monthly can that’s and good jump a of and if is right, obviously, Well, my point, NuvaRing sort I product. a because, helpful,

in how for patients you have right? once have you a have to control hit just right? They patients for decide have want patient big But year. theory you is advantage a this So that just desires more a off, -- kid. birth is, fall long-term do of a because opportunities expectation sort to this a want maybe an would You long research, if want the planning change, they family

for you’ve product. thinking window think is And be just an But as this there’s going so understanding is get because what exciting -- shown we three-year should to lot So opportunity you? the to of of a a obviously, variance. for that of be trying I that

patient trying be. to that build significant can Just see how

Robert Finizio

wrong has Shoot, the an Mitch? We heard question. definitely that. for answer Mitch

Mitch Krassan

side an could five strong which particularly on ANNOVERA something that that when is have there then, option had that they the without is we until three the stay effects, on a to. birth they years And they three issues what So of typically, have first their What think married. younger women They on see have control being do on divorced. some things for they the oral an years. to of some switch women stay is works to decision They kids. multiple They they years, it are But we child. got five become stay events. that for years, really time in is changes to it once -- them, we during life do frame their got

Robert Finizio

[indiscernible] way stronger a Lo yes, likes typical you’re somebody woman XX, Yeah. -- side, to product, five years. And five the a years. duration that it’s whenever or Loestrin the three when whether But is you’re to else, the in a

Operator

Samimy with Stifel. question Annabel Your comes from next

Your line is open.

Robert Finizio

issue. Annabel, you there? Might have a technical

Annabel Samimy

Can me? you hear you me? hear Can Sorry. Hello.

Robert Finizio

can. now Yes, we

Annabel Samimy

that. OK, sorry about

busy terms of there’s hits. marketing apologize campaign, still it’s if but you July, the that cash was and any out talking separately, you covered missed in I part call, covenants covenant, And you So apologies about if I a saw morning. started for curious I And I TPG. revenue been about I ANNOVERA and that? in the you’re adjustment this, holds? again, know the the that that But to of if the if laid

August, which IMVEXXY, on gone campaign gotten in COVID marketing is away. It’s starting clearly, the of in has worse the For situation this many not regions.

expect do the BIJUVA hormones? its to recommendations right the is believe BIJUVA, right compounded this What population. and you this So on have Is recommendations own. guess, on given time time? for the older vulnerable environment to And that this I you of is, I impact the then, a campaign is the on finally, population what much in kind more growing be think to IMVEXXY? question marketing the for that makes seems

those So accelerate that do that? are to going think you recommendations Thanks.

Robert Finizio

thanks joining. for you are I really guys Annabel, this Yeah, morning. know busy

being cash speak Dawn, the said, million $XX to piece. minimum it on on So on exists. happy turn over the cash compounding still to I’m I’ll hand and That then marketing the

Dawn Halkuff

believe we’ve we right campaign relevant. so been to straight business Sure. seeing I the of and live virtually, that weeks And Annabel, reengage. time. as marketing patients IMVEXXY, of growth to supporting so to start and consumer terms What know office is that able campaign is front do we’re physicians for the it’s return very or get in NRx in of eight with the the

for right is it think time this. the I

have IMVEXXY. awareness high marketplace, The we a other in is great and piece that of time this it’s on it us so a voice to increase of for share really

Robert Finizio

good. Sounds

assume link. that on significant So if the Slide bioidentical Annabel, you And Engineering commissioned I study very a you Report. look with hormones. about speaking -- at that, National the and is of compounding study for and the our XX, Medicine aren’t -- phone you’re familiar a Science And there on Academies FDA the folks a

Obviously, in and well, here. one to one call ingredient and BIJUVA aspects hormones, and came an to a of and of having it pretty FDA-approved steroid read this at link Compound the the it Not to would the does makes put report. rapid to of be was the every successful on we Compound estradiol feel see program, sex answer industry and of patient period they a recommendation progesterone, biased two. it compounded compounding market volume IMVEXXY drugs. both lose for products and an very what hormones, allergy that to products. to was compound grow with to them looked we You us out. There The and list, toward study compounding wanted And exception report safety the a BIJUVA to compounded question, if as is of bioidentical IMVEXXY felt Not number illegal fashion, That’s Do which the They negative than actually all compounders bioidentical that do hormones. very, was We back considerable overall a the include so better just definitely are affect put to they access which position in they we very your claims, But not exception because overall can compounded they the bioidentical go just XX very aspect this yes, it -- we what it a going here study. the Do between committee and specific, want think have on both to anyways. BIO-IGNITE customers. of list, would add and the a is recommending. in are sensitive We been all the our hormones very flawed very to a support for was fully we We

being covered said, that if I not I’m you’re asking there. I hope everything So sure did. I

Annabel Samimy

it whether -- is goes Not a list? on there recommendation you Do Compound final for a timing Do on

Robert Finizio

advisory that. the So agenda, is would the for demonstrably holds, understand they FDA this basis. agenda meets difficult is that on a to that have public forum understanding of from committee open biannual process put my works and the I the And way what that compound an suggestion to

approve. vote not to and So list, if seen biannually. then a would And next the approve they that And Advisory then, on to typically committee meeting of to like process Committee meet the and put nominated it do either -- it I’ve review not be, scheduled or for they they will it. went would drug, Kind be be would yet. this

So information on I any than that have don’t it. more

Annabel Samimy

follow lay comfortable is? out If the the, you makes of burn feel Can believe original would -- that you just trajectory I cash you I guess, keeping of my could as covenant. your the up on what one be question, covenant that cash

James D’Arecca

talk Yeah, Annabel, to you James. Good again. to it’s

million, quarter announced I the expense increasing the hoping back the for year that was think see we two So we reasons: half that of We going do in saw. cash $XX decreasing the here. that earlier; reductions the two, of in because see the burn we’re you is be one, and do revenue as because obvious to

revenue expecting increase to So here. are

in that, feel So done the see with improving, because flows cash of our the we mind. and was of planning minimum we $XX million all comfortable

should So we’re is comfortable assessment $XX current our that and where in that be good the revenue covenants we with there. were set sync million,

Robert Finizio

And Is as a reminder, James? correct, the $XX back that million. half was

James D’Arecca

year, of half back are noncash excluding million be expected cash the The $XX Yes. around expenses in items. to opex,

So we think there we’re in good shape an perspective. planning from overall cash

Robert Finizio

category, tranche, -- would still equity, you money, have yet. from don’t that January, originally, or TPG a not and it So have wherever didn’t in back open. the think million And That’s they make the or debt Annabel, back to XXth we right, far you we right? as still to that as $XX additional decision the find expire you was obviously, if think was if

COVID and March, June until decided ANNOVERA never we by we the I getting it just a of then July response. in think and then to hit we’re So launched ANNOVERA make performance recently, X. great And

million $XX discussion now. But of instead that having tranche with said, we are, frivolous financing that with that currently shut them gone. date putting another right being So today, out them, a with there we -- is

for to were a is if in our that to a good start So trying I hope answered question. structure. capital number I put that your $XX somewhere, you place number think

Annabel Samimy

Thank you. Right.

Operator

to call back closing I for would remarks. turn Rob the over

Robert Finizio

been great Great. It’s everybody. you, Thank here. a quarter

We’re and to growth. continue. expect specifically you. really excited in and August please watch And we ANNOVERA September, the this Thank about growth

Operator

may you this you Ladies now Thank and today’s call. gentlemen concludes for participating, disconnect.

TherapeuticsMD (TXMD) 7 Aug 202020 Q2 Earnings call transcript