TXMD - Earnings call transcript Q3 2021

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Operator

Good morning, ladies and gentlemen. Thank you for joining us for TherapeuticsMD, Third Quarter 2021 Financial Results conference call.

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

Lisa Wilson

operator. you, Thank everyone. Good morning, you quarter for discuss thank today joining results and third financial our business And to update. This morning, quarter third announcing release TherapeuticsMD issued financial a results. press our website are The section. on press accompanying the presentation release the and and Company's therapeuticsmd.com Media in Investors available call our Chief Hugh Rob President Executive from TherapeuticsMD, today's Officer O'Dowd. On Finizio, James Chief Commercial Officer Mark Glickman. Financial Chief Officer D'Arecca, and I call may conference made during would this like to forward-looking remind statements. everyone that certain statements be results no contemplated upon based current and assurance are be that be the these statements forward-looking Such realized. in there expectations will statements can results such reports Actual other risks, statements to a and identified may which in release and of quarterly, filed and factors with due our differ materially annual, press our the from number SEC. some are of today. These forward-looking statements are based on MD information Therapeutics, available to to And statements no these change. circumstances Company except as assumes obligation update -- the for website. recording online available of the also audio webcast An and conference the call will Media be today's Investors section Company's and in replay

maybe the or who For With the this CEO, call XXth, will November recorded that, of webcast, over was XXXX. I replay MD turn archived benefit held Rob 's Therapeutics, on the and those listening to to Finizio. call

Rob Finizio

leadership you expertise, the financial vision ensure commercial after to entrepreneurial everyone. I call. companies. of he Hugh small would and look skills, search strategic TherapeuticsMD. a the successor we search third as I detail, for deep to who a with be and of president. announcement comprehensive large our who right the as a to the year having in-depth started understanding make. eventually Good And of important closely We More since But a than He's The on developed fill necessary ago. our someone have a worked with positions hired our proven knowledge, for to professional Company President exhaustive personality, of pharmaceutical held Hugh had my first-class at the steady I right go Back updating the quarter you and in and top-line and August TherapeuticsMD. of and process, further into morning, CEO August, O'Dowd forward role industry and growth Board leadership both an sales. thank I new joining before Directors have an

I to being of O'Dowd to premier Now since I'm [Indiscernible] Hugh. the or in 's Vice the happy Board like to on abilities to have the and I'm congratulate its XXst transition of direction announce health Hugh even into Chairman focus Officer our 'XX call. in December at and over next Board years the that and the Company. that Directors of helm EBITDA member and said, of of elected the building now Chief the Directors Hugh of take TherapeuticsMD Hugh, in TherapeuticsMD now confident U.S. With milestone the break half achieve to ask Directors strategic ago, back Company XXXX. Board will inception, being -level before After of unanimously of the Executive as Hugh will on XX of women's I'd

Hugh O'Dowd

Thank morning, Rob, you, and everyone. good

at philosophy this, last be head, differentiated and for I year. its variety commercial was Therapeutics Novartis, of women's sold you to stage A of become the of Company launching leadership. included serving has My and enjoyed their on which where in ambition decades, dedication, a to these in background, through senior SC oncology wants by the where the to portfolio Company roles of business your great your our and -oncology organization women launch without deeply well I clinical leadership series by look Finizio vision, ages will and business world. years. overall founding innovation. to of forward roots recently the I of seek improve express is mission chief TherapeuticsMD sharpening and of then of opportunity all better our initial in launch appreciation mission women. for underserved Rob, health. leadership must women my therapies. healthcare X X was the region as premier thanks breast would patient cancer country the realizing this second Board reaching as it CEO and I of populations way Prior wish healthcare. science First, enormous invest career focus this to our all in my first most that president, Company empowering XX-year thank metastatic officer Neon and goal a to innovative ages my see to immuno in unit, of to was I need marketer a Company Directors. in for serving we oncology energy committed clearly I Rob back to ascending to all hematology defined, [Indiscernible]. X a experiences, An largest and BioNTech shaped not am exclusively which the on our focus By

is a that with patient we communities are the not at VitaCare or divestiture the second XXXX. we While achieving of important We'll by positive embracing cost a does with announcing savings of include figure reduce potential initiative by will XXXX our annual costs million. $XX associated serving approximately healthcare costs $XX from savings estimated also and at remains this professional significant my which This that today, least deliver discipline, in results our our why shareholders. half EBITDA financial to It's priority. accomplish Starting in million.

roles. already a month, and as organization, streamlined appointment serving now Under X Mark Last Head structure announced of Commercial by the Head Chief of a be Market of we executive new leadership of a Officer. who new Glickman, have Access. eliminating will senior Sales, our we new our now Marketing, we've addition, Head Mark's In

second already healthcare And place. focus we finally, has moments, team cash actively produced of also see structure My revenue that to address will overall will are you'll our of to currently finally, are maintain quarter more To cash I'm James VitaCare, capital us covenants priorities financial and XXXX. I results the to forward in flexibility, first divestiture the they with in working for joining I'll capital XXXX. we break ease provide covenants The renewed end believe achieve look you plans revenue restrictive and to our As And to call. executing ease of enable this successful financial be of annual the In leading to and of professionals. over on few allow operating discuss and to questions now are in in a address at even at thrilled in taking place. least structure which XX immediate our growth including costs currently it million restrictive EBITDA your to performance. the in half top-line accountability, Chief we our full-year in then of D'Arecca, the Officer, are elimination results turn TherapeuticsMD. greater guidance Financial drive James. to and summary, the the detail. starting a And

James D'Arecca

from which quarterly a everyone. Slide increase good we net the And emerge COVID-XX to revenue of our snapshot continued shows pandemic. morning Hugh. product trends, as X Thanks,

successfully $XX.X $XX.X toward Our revenue third achieved. was net applicable million quarter which of quarter third was the million which our revenue product for was covenant,

increased the As quarter net product of by revenue XXXX, our XX%. third compared to

channels significant net to decrease due to in XX% of customers. demand partially insurance increase of by increases the $X compared of ANNOVERA million. XXXX per our quarter mainly health the code, strong expected to additional patient driven unit This compared partially revenue XXXX wholesaler sector. in quarter attributable price decrease third the vaccine price quarter moderate fourth the XXXX. to which ANNOVERA ANNOVERA, in This as public For by for second assigned reflected the a slight increased offset advance our to remains quarter million. The in was and access quarter, compared coverage increased Net revenue volume to new of volume additional a And and brings net beginning the XXXX. as pharmacy in this increase recently as to compared as net J quarter stable to stocking third increased sales higher offset was pricing, volumes of by of shipped by to XX% third growth, net by $XX.X in patient

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

the quarter million operating expenses of Gross Our Quarter and IMVEXXY. impacted was expectations XXXX. the third BIJUVA in XX% of quarter sold executives. total line Third XXXX, cost. with for to attributable in sales, margins our $X.X to the the were the at negatively gross as related by expenses, exit severance continue expenses million which severance-related were in $XX operating export our profit Total and included were ANNOVERA were of X margin profit approximately behind approximately we $XXX,XXX invest recorded of expenses third Absent of of

quarter the We expect million, costs cost-savings our our fourth XXXX excluding the initiative. to to one-time in impact of operating related any below expenses to decrease $XX

the you million as as used progress. mentioned now provide in $XX.X cash our ago, was by And more Glickman, VitaCare. had in Officer, the Commercial commercial we to turn our quarter. expect to we of operating $XX least activities a the million, assuming moment at annual year, reduce expenses million Net Next divestiture operating of detail XXth, I'll Mark. call third Mark Chief around XXXX, cash. new our $XXX.X September to over for

Mark Glickman

excited to this call. be good And I'm Thanks, James. morning, on everyone.

I a activities, to give transitioning started pharmaceutical my into Before all healthcare my we in entrepreneurial background. I Company's companies industry, into career commercial quick the you on wanted route. is summary year XXst with delve large the more a before smaller, This my

to Pharmaceutical, a market recently, to just a Auxilium, the Officer Chief grow Coast sales. Company with our billion million from $XXX global cap where sale Esperion I directly $X in we help cholesterol years. a in into the revenue And Most Commercial billion from to Executive an pandemic. at introduced As novel we our X at minimal over Therapeutics, product Endo increased

my details X and will factors could background on believe into I more You Slide TherapeuticsMD about my for vision X. role that contemplated Stepping chief of commercial success. long-term overall I saw officer, key drive the see

and our on patients the foremost, First and remain focus physicians. must

Second, is is on this of accountability is our focused organization needs already shareholders. and the implemented. meeting something we've our an crucial, physicians, environment of and patients, This

the achieve looking TherapeuticsMD, premier performance-based become address focus. overall are I opportunity therapeutic our options our excellence back, These on a Since differentiated designed ultimate for overall organization creating and goal X with begun organization. execute we to women. us we objectives. women's Third, an At commercial saw to healthcare have joining to to help our moves

team we commercial redirecting moved about changes, managed place, wins improve Our launch seen conducted, team of approach, people is of importantly, consumer I Based healthcare After while our some this slides. significant practitioner, the we fully effort. been healthcare and I barriers we success to to transitioning appropriate the right prioritize provider. now believe and during the care, the to marketing have on the could internal have sales and we well way the few adjusted we'll With committed are by refreshed in several which have and now Company. determined assessment [Indiscernible] pandemic, shifted I on programs to to has the a a the These programs. talk in to

is We which to the organization, also simplified effectively execute. to our data sales improve ability the orientation for designed

progress we of we good immediate activity of priority continue the prescribers. reach, we size as the our soon and our believe redistributed ongoing. focus activity stages we to [Indiscernible] the while are to Physician as greatest in have targeting highest my became first the the while to impact possible. evaluation field opportunities Finally, call the is redirecting care managed we have effort, This rollout, where continues as given to

complexity access. refocus The Most tactic we sales this despite products, priority, pharmaceutical key present the the needed to second of make to my salesperson is patient great level selling. solution some of our process. on center coverage, sales solutions As the to branded representatives regarding

products align have great sales affordable physicians. patients patients solutions I've to asked appropriate receive many discussed and representatives potential prices. assist at issues to our proactively our the We and ensuring solutions,

able success to excited for confident focus designed and much result the provide do. sustainable, to opportunities consistent re-emphasis opportunities. tools and recognize recognize for growth. we accountability, I'm refine we be with still on a there's and this the the I'm in are that that direction refined will to Finally, focus to

in plus In September, quarterly beginning On taking frame, for June basis, August, culture evaluation saw performance what we increase the prescriptions and we calls we really This higher up were next those a result in in relatively the So, from changes of accountability In improvement in by in XX the purple, Overall prescribers in to the changes the physicians, uptick decile. moved immediate increased a highest This new in the and Xs. have Xs is the resulted today these a my quarter-over-quarter to most far calls ANNOVERA over September, To the In critical first targets. exceeded correct accounts targeted This are earnest, On total was specifically, for as which July slide was the of you'll is entirely deciles of a X,XXX of XX% long-lasting that XX% extra X,XXX a X,XXX in to quarters flat day of our another gauge left, in cumulative we progress time the low First, area. great in prescriptions women. physicians shows per XX% of tenure? quarter effort. of the went time our increase represent activity. of and August, the one a market. an monthly over XX% shows monthly ANNOVERA close during of over result decile time. an our off so of September. indicator the which How low first of for The it in implemented and the contraceptive increase success month. prescribers, almost Slide ANNOVERA, to our sales in of prescriptions? to calls through this our broken [Indiscernible] productivity is jump, the XX, X our top who Slide organization. total driven which overall focus September. prescriptions that impact reversible effort that does only XX% X,XXX was or see

IMVEXXY, now which suffering patients is hormone for an postmenopausal Turning estrogen VVA. therapy from

we with implemented we should next with results a able targeting which and targeting of We This We this be the aforementioned pleased year. fourth ANNOVERA early give performing with are very the of Currently, because are insights not quarter traction. prioritize were assessment, HCP the IMVEXXY fully us to the initiatives. while lose quarter, did mix we some full achieve by will and end completed and the ANNOVERA. IMVEXXY

XXXX, transition healthcare is advocacy into enjoyed various a while also our continued to practitioner expect to return move we consumer campaign. and accompany. a we IMVEXXY comedian and to product we stress, most growth want still focus, very the a As of that IMVEXXY to resources for I successful being consumer did to outstanding right an activities ANNOVERA actress influencing audience. be Cummings the and The Whitney us as continues campaigns. target see her appreciation an spokesperson the We've user for around we to

the by produced. changes have the encouraged are benefits, We I discussed already

there the believe we accelerators additional reflect forward, just not Looking I are slides in showed.

We have which fourth significant a in recently public predominantly and care a was take ANNOVERA health code sector. the place managed gets assigned, of will wins had J to access piece that the significant quarter

about highly you our 's please into TherapeuticsMD also now, We're I the the field quarter. We entering questions. to the field with vacancies October. hit filled in representatives force next I optimistic look Company. open speaking the new up And high-quality XX for forward call am for with Operator, and phase week an who in the exciting first future,

Operator

Q&A you. while stand Thank Please Instructions] we [Operator the by roster. compile

comes line question of Louise with first the Chen Cantor Our Fitzgerald. from

is Your open. line now

Louise Chen

thank you in me Hi, that ask I had here. my taking I a are questions wanted you. for and coming to few for

well VitaCare less that you'd million or take in of and Rob you'll Hugh in of as And there Is some points with the here? Do kind be of you've a decision do the from million very Company? next that$ going housekeeping CEO stick you the secondly, Thank out First $XX strategic then differently the at just items by have why next SG&A $XX than will what and terms is, then a And you Did new now? year. 'XX fourth-quarter much. know right vision the sell you are driving spend to year just decrease while. your what now any SG&A? XX looking did? from there? for for been say are down that it inflection of change million I question sort you And ramp should assume that progression we

Hugh O’Dowd

It's meet Louise, So, you. thank you. great to

Let's because questions. goods X unpack that segments in there's

Let's and I context to [Indiscernible] it because finish for relates then And as think Rob of particular, priorities. I offer relates the Then piece in that's think [Indiscernible] with moment comment now Rob. up, VitaCare start process. I'll pick up with helpful we'll the and James it as why to but

Rob Finizio

Thanks, Hugh. Louise, questions. thanks for the

to anywhere. for TXMD. I'm and not going I TXMD. I've going probably my as sell all fully far of remain strategic my role, any is accountability and my operational to no the look, shares currently changed stock level. role shareholder. one still to not takes the Focus if plans I'm focus and to so on board vice As Hugh largest, of or chairman over largest committed

of think as my voted to your hope Hugh. back them I thought And And we those a you, I and turn I'm operate he for next chapter the answers And got good it board I in I'm and criterion really really he and, way we've will excited come write for the here. as committed background a Hugh. hired the could. We this in. he's excited And that And winner has could and operating Hugh. we that process and a met I the financial we here the here. to confidently for right somebody I'm full looking So history, Hugh to and and over which really discipline still were we that ago. see as with president ensure still year ago an commercial fully fantastic opportunity found a And did when And year he in was start all right I'll question. tell met advertised. all unanimously

Hugh O’Dowd

surrounding our These the really EBITDA of that a secure Company. break finally, call, period. with full-year covenants clear restrictive will forward elucidate it query, should the think XX was Louise, immediate what frankly related does reasonable to the clear VitaCare. are opportunity to priorities an we of to that, and that that of the X place. way my to emphasize lives. divestiture to And driving I can there, pathway really It's in this that got that by XX it’s align really I is James really with full and we've is the do took as X, And half then over for to to even Rob. and was performance cost where QX so top-line top the $XX is structure this capital structure, priorities James additional And growth do inclusive cost consider the I Directors, comment in we'll in Louise, to very address and ease are and beyond took Thank look in It we've shared second further operating the But see our your our and it VitaCare. you, important it job to of eliminate are deliver. million how performance Number companies well-differentiated turn I me X the things are let why and in beyond of topline tremendous, I doing you. third assets And focus. And points. some mission as it issue 'XX evolution guidance. we offer us the focus mission for to And effort structure that emphasize but Board we X. how

James D’Arecca

[Indiscernible] your Yes, initial in Hugh. Thanks, Louise, question. Yeah.

at on are XXXX, XXXX to an take the That the we agile right $XX are million. that all million, that now. With the divest forward the And do least quarter recognize as it. thinking us. and a Hugh VitaCare And estimated regard to is to in get SG&A at scenarios timing, when in you our with additional about least next you $XX here can TXMD its which quarter VitaCare, mentioned, we're intend be different would to the depending sales That's think are the million. guidance, SG&A $XX back to then expecting front spend. scenario to first but of out And planning then portion. come below We you and down we'll

Operator

comes Our with next Samimy question line from of Annabel the Stifel.

now is line Your open.

Annabel Samimy

driving my went specifically I consumer being Hi guess marketplace time. care the a my last I product know have focus on so all, point in couple taking this question. not about now here thanks of you're quarter this priority big your that several pretty going was my seems what from a shifts. the for HPP On for has a some years, solid, had been new like congratulations So What in at because first products question, top-line's they've performance. focusing like again I if this Lot for followed primarily from on here. guess you now [Indiscernible] the inflection These coverage does HPP been but changed here, managed while. question chances the for for around are is it has been

sort what physician it else? essentially us Thanks. balance from the sheet And frame is room structure. second - capital A What available what breathing Is can capital please. to help [Indiscernible] yourself expect? then here? options so, that, exactly sacrificed If it community some Is to products structure. you on have cost-savings, give your does adjust you of perspective? on being yet? And What we question should a something savings' DTC? not getting [Indiscernible] cost

Hugh O’Dowd

and few you Mark ago, first that answer that to But piece. Commercial growth, took our have we moments one the frankly shoots those queries, in I is Glickman, Thank his We're that presentation revealed for things Annabel. Chief performance of Officer, the quarter, going of of think and early really in a note questions. I a enjoyed take to the driven Excellent catalyst. would saw that he's real more to the care Terms in already and a we of - post we COVID, by Mark, are I in coming the open world items you rebalance absence in the elaborate? those new erected. line inputs that advantage on now opportunity when changes fourth foresee

Mark Glickman

while. again, to Sure. you Nice it's Annabel, talk been a to

is correct, IMVEXXY about the while in a statement your bit. IMVEXXY quite HCPs practitioner the Regarding healthcare know focus,

forget education options physician patients. the However, and to certain to for to women as consistent out IMVEXXY reminder proper and types. tend reminders need there and use tend there's that and lot that do fairly patient [Indiscernible] communication side, the they we continue products throughout awareness. go the generic and go being products. is of to they'll especially years many Physicians on about to new to towards COVID, consistent tend The They'll towards a ago the reminder, who

In fact, driver awareness the number branded is X in a the prescribing of industry. products

education So, to not they aware may new, how what it's about also learn the do [Indiscernible]., to And going patient awareness. questions receive it's the necessarily is making where type; entire it's office continuing about the they prescribe sure patients. from

initiative go growth productive do unlike rolling we're most we attention on a the give and I more We that to possible to postmenopausal there. new being do give So for new this practitioner are to the I need now targeting QX. online efficient need women. [Indiscernible], All these critical, that do and ANNOVERA VVA there ensure into targets, this They and them things right education, awareness, see where women is we healthcare interest a can [Indiscernible]. through back think as to the to are for these their as in samples is critical rely phase anticipate we're be so with

Hugh O’Dowd

you, Mark. Thank

of these the perspective, Now full-year at nature query savings. let’s is and articulated turn XX% from million. least second a composition your savings $XX We've cost to of

at the divestiture. is coming least that of VitaCare Now from $XX million

park the that sides. to let's So, off

There's the an and million of that This is pharma business. side has what just exercise call the by Mark $XX TX coming means from shift driven is really So that the that I'll elucidated. there.

still the just So, lessen execution noted as healthcare we're we We professional discipline, the that even component in impact think I that. embracing focus, media think backend opening EBITDA buy his positivity but talking Mark while And of drive that leveraging and a acquired power, really we synergies topline year. of of our about from our creation that, drive break is and can intensity growth. and ad remarks, renouncing focus that believe offer. DTC I with in and can We can focus, we next value greater financial and

question, further Now as relates James to will your turn it on. third to to I go

James D’Arecca

Yes.

So structure, the believe. cap I that one on the was

think to then kind to available I like And regarding then the domino have opens [Indiscernible]. terms what things of we that where first head proceeds in next is really once of of fall kind that are see we I up first VitaCare. we'd in regard. think that there it has information, And

Hugh heard to facility. have that covenants our in want current revenue You mentioned the we address cash we and

So, certainly we'd be refinancing at there. looking

thing So -- But one time. a at

Let's get it from first, to take VitaCare then and answer we'll step, take the first the there.

Annabel Samimy

you That's great. Thank

Operator

[Operator you. Thank Instructions].

question of with comes Our next from line the Douglas Tsao HC Wainwright.

Your is now open. line

Douglas Tsao

Hi, good disruptions just you question. walk manufacturing manufacturing the Thanks and bit And Could little taking and morning. a around for how XQ? for for ANNOVERA? change a through you are XQ supplies into

Hugh O’Dowd

narrow that requires fall extremely question. reject release problem primarily an that us FDA batches method. -approved the criteria release stems for current the outside test specification from for specific Really you thank the Doug, one to

have an supplement We submitted FDA. NDA with

of date XXXX. PDUFA December the of XX With

of the that provides test specification really that specific data revision So we believe for method. that one portion justify of

in time demand product is first recent we believe December, demand. in QX able a failure. approved on be satisfying our We ANNOVERA in To need be increase would patient to due This supplement NDA previously ability pathway the that the to batch is approved the our increasing and the clear, this permit question that adequately release to submission quality. outside batches that foresee potential approval have FDA by the if were the we'll no specification impact FDA Now, would

Douglas Tsao

just that? a a bit provide you of question, by could And accountability mentioned if little more you he what Mark means just then of as just second a a lot. I'm wondering sense Thank

Hugh O’Dowd

you to would So, Mark, elaborate. care

Mark Glickman

the the of clear Certainly, going sales to plan, organization having and me, accountability each into quarter that thought plan. a about or a it's well year when against out plan, executing we think a

accountability -- right the we I've where with and new giving direction overall more be, follow solution accountability representers much and are, the team, these -- since with targets not not were And to working been could the our my items As expectation and are team here and really call, where negotiable. internal all We're about a together. is follow follow messaging, that selling.

want seeing things environment, But were accountable as my we're comment before. it's don't against out the I and So, rolled that. in for plan about to everyone's to how execute already --

So, it's performance basis. a solutions about about metrics, consistent it's it's as on about activity and directed metrics, providing

ROI Additionally, organization, is that positive actually internally, about overall [Indiscernible] spend spend that is demonstrate patients, going to our to worthwhile able having benefit our and being it's actually programs the and and physicians. and

Hugh O’Dowd

I tell with Mark, pleased vibrant you It's results there associated of forward day Doug, done new by new with Sales, new I early how to our there performing. I Head continued with energy must the Access. Mark a new and and 's of I look Head is work am leadership seeing Head our a as can't Market say, Marketing, of our

Douglas Tsao

you really terms in versus That's just calls that today, follow-up, helpful. of in-person then And just are details? one virtual actually percent are the being what quick made that calls are ones

Hugh O’Dowd

today all in-person put The Doug. calls. question. on screen I Thanks, are Great the statistics

person of The have provided now person we're in right only opened and up. calls. actually a offices numbers we're these I calls in as counting So, call, are out all there.

Douglas Tsao

much. good Great. Thank you hear. so to That's

Operator

the further no turn call Hugh are now There you. to will for questions. O’Dowd closing Thank remarks. back I

Hugh O’Dowd

you We And Veterans morning. day. Thank to further look and wonderful very Day. for you, wish Take We good happy care be taking well. a everyone forward follow-up. all

Operator

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

now disconnect. may You

TherapeuticsMD (TXMD) 11 Nov 212021 Q3 Earnings call transcript