TXMD - Earnings call transcript Q2 2021

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Operator

Good morning, ladies and gentlemen. Thank you for joining us for the TherapeuticsMD Second Quarter 2021 Financial Results Conference Call.

Following the prepared remarks from the company, we will open the call for questions. I would now like to turn the call over to Investor Relations for TherapeuticsMD, Lisa Wilson. Lisa?

Lisa Wilson

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

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

Rob Finizio

for our you thank and morning, Good QX call. joining

our We line are pleased steady with with in progress our expectations.

is to force providers, pre-pandemic up. opened which benefiting access sales from improved to Our has were not levels, back

through have channels. newest online to or we during quarter a our COVID-XX telemedicine the efforts expect live, the made are With now we growth experience see patient improved addition, gaining online with UpScript, streamlined relationship In and without to create continued traction. more our

in QX expect improvement strong and coverage in for insurance products the and marketplace, we throughout have continued Finally, QX. coverage all of we our

XX% the quarter. overall, our on in with of quarter Slide by shown this first As year compared the increased revenue second X,

XX of Our have experiencing were vitaCare strong contract pipeline potential We Prescription in also and customer that healthy a our growth. is volumes signed customers. revenues over vitaCare Services and recently third overall

In the would potentially minority investment to capital evaluate vitaCare, selling vitaCare, a which continue source provide company. a of in in our addition, we non-dilutive including stake for

a building in become We’re sector. this foundation solid vitaCare freestanding a entity high to growth for

Before President turn stepping Head Chief from position Executive Services of of He turn take Milligan Chief O’Dowd, vacated variety years earlier the welcome Prescription and to than Neon Hugh TherapeuticsMD, the in James? the to of CEO have James, I our call and XX financials the over is position Novartis, a of I’d spent to more Strategy. into detail. Commercial year. Neon which in to vitaCare President who Officer Officer like John over I’ll Global including discuss James this joined roles, was leadership previously Therapeutics. more to call of now of Hugh who of the

James D’Arecca

a X Thanks, the quarterly good Rob, shows our morning, and revenue increased across Slide net snapshot of board. everyone. trends, which

QX of product by revenue for product revenue satisfied quarter on basis was our XX%. XXXX XXX% quarter $XX net by net net On and a million, versus Our covenant. quarter-over-quarter revenue total quarter a second basis, our increased the sequential second increased which

by to to sold quarter X% quarter wholesalers the revenue in net quarter. and based for on ANNOVERA, increased sequential per on from unit For Average revenue increased calculated units basis. first the $X,XXX pharmacies net a $X,XXX

of $X,XXX the $XX average quarter. for important first approximate that IMVEXXY benefit performance to that over became total to quarter portion new note XX% and second the XX% IMVEXXY’s basis XX-day effective revenue in a in sequential increased copay is IMVEXXY’s net quarter. Also net $XX average that expect cash $XX larger on to per continues regard revenue for per preferred revenue prescriptions of IMVEXXY of the revenue from continue by per scripts, program, unit to previous prescriptions year. contract Net the with from unit with unit to We included ANNOVERA net will along filled. increased the quarter a payer

Turning revenue unit $XX. revenue net and per BIJUVA. by average XX% was Net to decreased

we supporting reminder, minimally BIJUVA at are present. a As

quantities looking As remain XXXX, of pharmacy at levels. all June three XX, products, wholesaler the and inventory normal within and channel

share financial me some Let our on highlights Slide from X. statements

a and our strengthen marketing Our them anticipated line the the initiatives, stage in we these will are margin SG&A moment. in critical sensitive. the timing back committed Net cash back expectations. the quarter. reflecting rebounded we to and to the second half Due in higher expect expectations in our with which for growth. of we of expenses activities in than to on in of as year shift digital is the and important our expenses spending are R&D gross commercial the profit the a continued for promotionally to products impact quarter Dawn million year. and had of the and their increased first quarter This in to $XX.X was operating to in half spending, the be XX% second used XXXX investment moderately with a activities Operating capabilities our driving initial lifecycle supporting related remains our enhance year. elaborate second Total consistent

now Dawn? we commercial over XXXX, detail more progress. million call $XXX.X Dawn As of in provide the to I’ll June turn XX, to our around had cash.

Dawn Halkuff

you, Thank James.

On side, product start with let’s ANNOVERA. the

on see can on Slide sequential and you X, basis ANNOVERA showed year-over-year. continued As a quarter growth both

procedure-free and quarter good making as the progress ANNOVERA of only this sequential The uptake. XX% growth positioning is trend. product are driving illustrates positive long-lasting this We

XX%. strong behind and growth trajectory. of sequential main quarter revenue refill drivers net remain at steady couple at Our the per unit a $X,XXX about There are held rates

ANNOVERA, again, XX% to to targets live for even the we lead if access regaining going representatives the doctor providers, sell open And can increased the are begins they growth with now pack continuing over are to as channels primary are seeing trajectory First, calls. is visit. not our as growth world able a live telemedicine all patients where reach with with slowly second ANNOVERA our access that sales to trend up to their of

improved from importantly to is is from that COVID two on to alternative in uptake is method used all this QX, to including X.X while the impact long-acting force procedure-free, have the prescribers represent benefiting total in up prescriptions that the to and need. interesting from number we ANNOVERA an from or various users this their important impressive. still are of is the It’s majority market What’s creating Slide the year over the women’s, a of birth switch unmet indicating of increasingly to IUD. prescriber here within a filling a gains ANNOVERA access was we from and seeing waning This average as writer primary and ANNOVERA QX QX. segment the share two slightly of to before methods. other more the number XX, providers control new ring now of X, vaginal it recognized capturing however, Turning ANNOVERA increased methods, first being contraceptive by the never and targets prescribing. in quarter note per making and as written an ANNOVERA the there is implants penetration these challenges efforts. successful are change are number of depth prescriber is market that note Slide marketing of And XX% see that trends quarter places, and is bars On show making that sales on by coming increase

that Slide catalysts see to are continued support now potential growth ANNOVERA. moving data of ANNOVERA Turning direction. right XX, broad the near-term We as points in the uptake

Let me a few touch of on broadly. them

support. supportive. is been The women has First, in upheld around women’s choice birth Affordable increased the access environment for control Care advocacy health efforts and around Act and have

state access XX% continue ANNOVERA and to for across the not prior Second, payers. strong have coverage, have due laws. Where do we zero have we to an unrestricted the from authorization annual the pay approval majority patients at to federal currently payer ACA prescription rate all XX% dollars perspective continues of and

J-Code its fourth as that health could CMS for reimbursed the drive X early ANNOVERA and allows for receive facilities increased dispensing to live the ANNOVERA. Title own be it recommended quarter will believe in public unique This as national uptake that addition, we ANNOVERA. In market be

improving expand marketing to primary base, with access we tools providers communicate a physician to Third, is the including market utilize and to for opportunity mentioned, as continue care to broader providers ANNOVERA.

to influencer Lastly, continue on consumer will before are have positive they the what and from shaped, of than mind, they in significant impact. to in XX% Keep program and contraception friends. go doctor women want are leveraging believe often peer-to-peer And we know a their millions see of influencers have our learned women. preferences telemedicine what we front, based channel their that and they on of reach terms that more

TRx IMVEXXY $XX. cash in achieving Slide for QX I’ll of impact higher support regular filling XXXX detail the representative product X% a prescribers, for than and in the of writers withstand prescription the importantly XX Products, this quarter. IMVEXXY compared to Menopause the in for in a access XQ in VVA has outpacing growth with year supply. this second for to the of of approximately improved compared enabled total XX% XX% category XXXX first metrics market, second and over revenue writing the the of XQ rates has in for increase of we an quarter. has The a X% to price net Moving first which IMVEXXY number with pattern discuss the this net after the now quarter our increase patients X.X $XX, X, average was IMVEXXY loyalty and prescribers a January the QX more to XX, for a improvement together X% XX-day second pay fills which in Slide improved onto to increase refill And remain net shows price the a net compared in sales revenue to per the with prescriptions, unit faster a TRx shows growth COVID. lifetime for XXXX improvement moment. the of of steady the over saw changed quarter. key quarter over base There a patients

As high unit. fourth per seen revenue net this per in a net unit revenue is and a the our reminder, new improvement in we row for have quarter

coverage at there XX their as forward. only growth potential strong shows, catalysts branded XX%, Top including that that unrestricted X has near commercial Slide, As IMVEXXY IMVEXXY has product. support going a preferred strong payer IMVEXXY term are

patients with provides believe we And online increased in will amplify side, improve launched relationship consumer UpScript outreach. to And a for the access cash we to as recently continue through the program And country them up virtual is affordable support to with opens as not in vitaCare. access For an we improving noted ANNOVERA, providers patients. for those new conversion IMVEXXY on prescription covered, format, the that top telemedicine channel. to

recently direct-to-consumer engagement. impact Our a May already positive Reign showing called in Long launched is interest campaign both She and

Turning BIJUVA $XX. finally to steady notably BIJUVA increase for X.X% the revenue prescribers BIJUVA in on was for unit net at per grew Slide by compared prescriptions XQXX. writing in to XQXX prescription a total And XX, X% stayed there quarter-over-quarter,

growth addition, seven filing from now remarks. which in we it with date I BIJUVA, Rob the we quarter catalyst the closing European but resumed acceptance approval minimally to force. in over would our XX, for be been turn of our to we sampling with received of supporting field merchandising low BIJUVA countries, the like recently believe for going the received In BIJUVA will XXXX, the March dose of efforts FDA PDUFA for second And have just important both and forward.

Rob Finizio

Dawn. Thanks,

just revenue decreased great cash a growth As used with year-over-year in our you net $XX.X products XXX% we activities and for to million. quarter operating heard, delivered

throughout QX. to QX, our improved QX these access insurance government we and to should And also and accelerate both near in-person. healthcare ahead we due and coverage, prescription prescriptions growth accelerate trends trends in expect expect which online Looking provider term and commercial to QX

approvals with filing quarter addition, grew record BIJUVA for quarter. had March channel. ANNOVERA dose IMVEXXY BIJUVA date Europe in we a across an we unit And net for XX, PDUFA a XXXX, the second low multiple every for the received in for revenue accepted per achieved and of in In fourth We row.

a customer, its XX for company. are pipeline source its closed working for to up third grown capital over vitaCare a questions. customers the non-dilutive as please secure minority of open the and Finally, Operator, call potential vitaCare investor we to in

Operator

Instructions] comes [Operator Chen from line Louise Cantor. with first the of question Your

Louise Chen

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

XXXX thinking know you you your I about I stake anything the for half your to addressed to impact So call, you that, first question And Thank for vitaCare put And you but you. sales helpful. resurgence could be then COVID-XX J-code? had improve you are minority franchise? second If that’d behind this ranges how actually how ANNOVERA then of secondly, sales? that expect in is is when much valuation going receives the in do

Rob Finizio

questions. Louise, thanks. Great

I retaining significantly, a significantly, XX% So company on or we’re this have what the very market because vitaCare investment. actively for exploded. for were looking working to vitaCare, we I doing was value What can company, today. say, be the grown has minority XX% and pipeline around has the stake has grown below an of the at careful and The

that. company we So off be investment non-dilutive make looking our getting shareholders I from specific now selling a a active keeping of negotiations I in we’re vast solid on because more to a and that wish at that, than can’t the are hopefully could and I a but minority standpoint. would majority difference

over progress, had of the great commercial and a this I’ll QX the best Dawn – that. – Dawn talk have far as commercial we’ll the turn going we’ve because we’ve about company catalyst to good QX history let had As throughout that to And I’m here. lot of in

Dawn Halkuff

Sure. the Thanks Hi, Louise. question. for

what expect J-code? for J-code the facilities. we expect the it’s an little So do just to question explain the our it trajectory? allows asked So catalyst a the exciting we impact you do about XX why to title the first bit and J-code us, is How

the opening. market about a facilities. the procedure-free be only for be parenthood procedure-free You actually us product, suggests can have. long-acting public this for them think to the the about forecast. would of is There portion reimbursed growing with ANNOVERA. planned universities product our them public the And And as up And planned of the parenthood facilities that will quickly bump are analog health dispensing will that ANNOVERA get XX% to health X,XXX

that implemented. we’re catalyst us forward getting a So really for exciting looking

out tremendous resurgence as that unique of your is, catalysts our the how have the the is such us. mean, growth that with really and supporting are I for question a there, the impact we are already COVID amount ability second incredible the world. you still we mentioned channel. second we of As some sales, access COVID far that if see are of and every impact still to catalyst, providers. forward programs are what Delta experiencing a has around, we And is half with And online we in our to really of it’ll experiencing Rob variant consumer forward. terms to going reality across got of think growing the it moment in grow We’ve

that the COVID, is alone which without impact Rob government us, the of that in across or to grow quarter-over-quarter. going we’re back we the that expect with and and year. And with half our catalyst the payer So growth of doesn’t growth to seeing XX% mentioned, that commercial, support channel

So have growth path the good reality bullish year. is rest of the the we we’re about the about for really and feel the

Louise Chen

you. Thank

Operator

Samimy will Instructions] Stifel. with Your Annabel come question from next [Operator

Annabel Samimy

questions. my taking for thanks Hi,

had touched earlier Again, I apologize a the comments presence. before. and on question I just I think missed I some if online you of So regarding it your

online going just you idea there give product? doing what growth what’s BIO-IGNITE. that do you. you online as penetration do not You’re of versus mentioned the both product, supporting channels simply. going other? far ANNOVERA separately IMVEXXY, online Thank And product it of with more you to And channels. you these one channels? you’re be seeing Thank XX% have towards and the to were us you What those going in restart then on you. both use the in weighted just is or Can BIJUVA, supporting to for And expect an percent but for as

Rob Finizio

joining. for thanks Annabel, Sure.

so with telemedicine us online you’ve standpoint, growth strong for an area think been numbers, has of heard but we from the starting. strong, we as just So are

offices that And payer Now we you’ll if And the into in I our year. the scripts of with growth see had And put just the in two as the QX and those has And it real went across accelerate. is commercial wins live, significant going reps this and QX and even expect portfolio ground into any think out with both recently payer together, we expect there, on well. though and government increase UpScript we improvements volume coverage haven’t Delta to improved QX. QX. access live, you our

job COVID. ANNOVERA, be we’ve a So really had. some what more launched with of have improvements, the our we payer that to scripts companies, with written partnered we’ve just great as with working On July of have filled the will And volume improvements well. up done just bulk. of top with these the that, because today the online of we expect we scripts last but go of improving we

up So QX the XX% we’re of will on volumes, come refill here kick top and on about a and volumes in QX refill in that still should at that.

a be turn for the the Dawn the great I’ll of back should half to it rest So questions. year and of it over

Dawn Halkuff

move a about because the before to And the on telemedicine couple add want I to asked on penetration. of things you side I BIJUVA,

look you the of If out partners launched terms as Rob UpScript. large there, are at and the with in just mentioned, that are we all ones ANNOVERA, we just

from Rob places are perspective those there’s partnership grow growth. catalysts but a on lot going high, that to just are of mentioned penetration support So as to and certainly that

much between more the and far evolved the menopause telemedicine control channel birth ANNOVERA difference As as than IMVEXXY, telemedicine is channel. the

we and portfolio. also across same IMVEXXY IMVEXXY that launching the are So leveraging slightly smaller, are UpScript the we – programs but with we

that BIJUVA partners there’s all we are are making working and to a that when shift for them entire sure we that are the team they no we program, for as sampling continues reinvest as that the set BIO-IGNITE providers we any have As restarting and so and they that with the samples, providers there far the education. sure those in loyal the to future. have covered as product mentioned that has a BIJUVA, and I there, they that force need of well in making are start are still support And field

Rob Finizio

That’s great.

Annabel Samimy

it you just learning let’s birth quite than the something of guess that elderly given, I they are vaccination that an still seen it’s the say access to rates operate control among but, I or high, pretty population, is now, follow population environment and If physician restricted? with have up And this obviously kind are has on entry different normalized bit, or a a in to practices how better could it’s market. older

Rob Finizio

it’s it it’s So where recent COVID much of we before COVID see better – numbers than I you definitely was can before where for near both but XX% and think was, not that to our it were growing and IMVEXXY probably through and ANNOVERA.

that moderate, the given and No we QX. and do we potentially but Now do asked continue the online coverage QX expect we to to accelerate in improvements see the have, to both growth. in questions access

Dawn Halkuff

are go And visits, for here’s starting prescribed. out. whether to to news for best get return younger the the And going office, that’s us patients the feed real us catalyst product to back the which starting, able that help annual being starting we’re into people a people are the older, is and to or

Rob Finizio

It’s back only what off put eventually. long it’s not can up get it’s coming back. it’s they built so good, Yeah, and and it’ll was, it those but things

Annabel Samimy

Okay. Thank you.

Rob Finizio

actually just months our IMVEXXY one our sorry. the of were Oh, supplies. in XX% last Annabel, three you’ll of one numbers scripts see thing, things

to is and units stay, to think per that’s that and here. three phenomenon that’s IQVIA retail I growing phenomenon strategies part like is which So due of supposed COVID a pharmacy and

what is our you kind see So right are can of there. on that of you also indicative asking numbers

Annabel Samimy

because in units the revenue going that patient getting that’s every when helps they’re on three Certainly side, TRx. for

Rob Finizio

Yes.

Annabel Samimy

it. got thank Great, Got you. it,

Rob Finizio

welcome. You’re

Operator

Tsao H.C. comes [Operator Instructions] Douglas of line the of question Wainwright. Our next

Douglas Tsao

me? Well, Sorry. can you hear

Rob Finizio

thanks Sure. for Can, joining. Doug,

Douglas Tsao

Thank you.

of seeing know obviously but curious see, focus the and IMVEXXY So we’re I’m now. the numbers just up had comes I standpoint. for you. of in given just become it’s strength which it very right been sort from promotion the sort mean, doing of terms Thank to strong just thinking it’s is of a recently, prioritization moving ANNOVERA obviously some you’ve IMVEXXY from I – well, seen in in great terms

Rob Finizio

I the keep that, is reevaluate can for that. always great will Doug, it question. will we tell and you it way now, we

vitaCare, for why, our refill see control a evolve well you we’ll strategies, that to retail growth telemedicine the of Let add? including scripts strong lot grow coming continue. the in more QX together and there your me and Dawn we to as filled our have birth great and growth But think that we with tell to with as and how to channel written put we IMVEXXY, of point QX we right it. because effort lately ANNOVERA, effective anything have been will that it’s ANNOVERA. And expect is expect we for

Dawn Halkuff

leaning that also talk And making an And feel product IMVEXXY, amount have about in to is we Rob think just split we in in it lot two we’re a if We confident the really to into places and force have in in, the Long She that on launched to as it and of the well then grow gaining is right, expand are channels office. going today, patient easy we that, is the IMVEXXY side, May sell those sales places. as add they didn’t really consumer. support telemedicine campaign where that traction just you about the and tremendous Reign online what’s sales there is sure we we leaned One But as testimonials. but a is the to sell. overall force

Douglas Tsao

Okay, great. Thank you.

Rob Finizio

Thanks, Doug.

Operator

further no any Do at closing you are There time. this remarks? questions have

Rob Finizio

thank quarter. want today seeing everyone look and to next the we call I in for you forward to joining

Operator

participating and you thank call. for gentlemen, TherapeuticsMD’s in XXXX Ladies earnings

You disconnect. may now

TherapeuticsMD (TXMD) 4 Aug 212021 Q2 Earnings call transcript