TXMD - Earnings call transcript Q2 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

[Starts Abruptly] for the Therapeutics MD's Second Quarter 2022 Financial Results Conference Call.

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

Lisa Wilson

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

For on Hugh of this and Therapeutic call CEO, or to held replay call With was listening archived recorded maybe the over to those XX, I'll turn webcast, XXXX. MD's that, the benefit O'Dowd. August the who

Hugh O'Dowd

for joining like you, Lisa. And our the quarter. call the during second thank you share key today. Today, highlight Thank I'd our and our everyone to goals against progress milestones met

by quarter At for $XX.X gross was XXXX. during million, XX%. rose XX% $XX.X second by quarter expenses revenue the an total declined XX%, quarter million net the of total while same of the time, operating profit Our over or the our increase

just deal weeks, vitaCare us closing. XXXX announcement business our complete organization The unit. the divestiture also from of of saw second to went our five In quarter

to from stages second women and dedicated been these the more With the the their is million $XXX to able lives. health of of the focused throughout TXMD now business, quarter all debt advancing far of during has a repay company proceeds efforts,

U. future current rejections approval, the expect better increase customer of drug in With an will Administration’s product that note S. demand our approval Food new company and to batch for our a in accomplishment and to is the this supplemental supply. enable meet supply manufacturing and increases final Our application which for reduction Drug ANNOVERA. significant future we ANNOVERA,

that event wish spend these discussed Now I've to moment achievements, a another the I acknowledging quarter. of key

entered you we into to a EW agreement the Partners. As company sell know, in all definitive Healthcare to May,

from However, support our the not transaction did garner sufficient shareholders.

and extension and of our Capital pursuit provide Our that recent maturity including us remain current our forward-looking seeking accompanying in all evaluating with Board of financing management Rubric Directors have alternatives. or such to Management debt team additional runway with strategic refinance partners other options,

two Officer, All turn results Financial in to greater that, to our detail. over of Michael? constituencies: And our enable to serve our it this primary shareholders. I'll our Donegan Michael with us and Chief Interim our discuss patients to financial

Michael Donegan

I'll additional vitaCare's the financial pay results. out quarter net proceeds Thanks, our to loan point receive second completed gain million divestiture net Included through proceeds which now on are in restricted costs four holdbacks, recorded was Hugh. outstanding million million XXXX Prescription and customary $XXX.X on a $XX.X On million used sheet. to earn the our vitaCare to up the contingent April we upon may recognized and Services of We for financial turn consideration balance transaction of the of down $XXX cash of sale. an also $XXX.X of as million the performance $X XXXX. XX, in

second quarter XXXX. the or Our was to total revenue of for $XX.X million, XX.X% compared an million quarter increase $X.X the

increase compared $X.X of offset an of product XXXX. result of were price. the $X.X volume, million in sales of XXXX. revenue. XX.X% to decrease the to IMVEXXY increase quarter Gross in quarter volume, million increase profit an quarter This XXXX second average $X.X increase offset volume second an in as primarily or million, $X.X the or decreases compared increase sales of due for by Sales $X sales sales at in or the an partially was is of second XXXX, for was price. decrease a average sales ANNOVERA and agreement quarter, second of the quarter Sales to quarter, For were partially $XX.X $X.X of average million decrease license in money XX.X% second increase and the the was or increase sales increase an a This XX.X% as quarter average million XXXX. sales for to quarter, due of the to BIJUVA price. the a million the vitamin received million due compared of This $X.X for a in sales million, primarily a million the price. The XXXX. under by in compared were $XX.X volume, were well the primarily the or in is Theramex and compared of to of second decrease quarter overall Prescription sales to to due second XX.X% the sales this XX.X% to million second was decreases quarter, $X.X primarily

the of ANNOVERA million reduce to marketing as costs. offset the costs were of increase by quarter, technology second lower sales the fees. million conference costs as a due in were professional software partially second XXXX. to and benefit quarter, decrease $XX.X for companywide expenses, mix million lab costs compared million for higher quarter compensation employee employee the of In consulting decrease with decrease was the development research gross divestiture, quarter volume increased a a to and of of vitaCare to the expenses benefit and $XX.X the XX.X% partially administrative costs for $X.X due million This $XX.X And of second million second improved costs. a Total offset to $X.X information is a BIJUVA of compensation $X.X consulting of XX.X% expenses. were net and quarter overall rent, brand to and IMVEXXY. compared addition, offset $X.X or and a expense compared associated for benefits, were of partially or compensation by decrease second ANNOVERA, by R&D and $XX.X overall expenditures, lower this XX.X% decrease operating lower compared IMVEXXY result during by to and and quarter, Selling mostly and spending well General of XXXX, to higher sales reduced for overall and education, effort driven primarily quarter operating as the million, million decreased a lower employee and or This quarter product XXXX. change the due to XX.X% or with margin is sales XXXX.

pharmaceutical declined. our continued As expenditures commercialization of our resources products, have R&D towards the we refocused

As to lower a $XX.X commercial was the in mentioned we for operations. with More further to debt now XXXX. same as lower around into and found and details prepayment by debt we of for million second October and had the XX-Q. Sixth additional million our of we time, announced result XX.X% Chief This cash. totaled and earlier, be we non-operating date million specialty Rubric if In $XX.X $XXX.X the agreement during I'll million, August, an $XX.X equity higher entered million operating in XXXX. over interest expenses amendment compared amortization sale $X.X $X.X and $X quarter costs, Mark? gain second of XX, of due extend with the extension. recognized a arrangements an million of until of Commercial million from $XX quarter Capital XX, Management increase Glickman our on to provide expenses At a interest offset fees November the date in maturity average cash debt our was activities million of call September financing non-operating Street extend the regarding amendment deferred second to business financing to XXXX Other financing XX increase the to balance to Mark per to expense of lending XXXX the agreement. receive of of of investment the the used vitaCare can to to lower our detail March due progress. turn or near our more maturity our XX, term the quarter, we fund option Officer, XXXX, capital the Net June

Mark Glickman

Thanks, Michael.

a inventory through earlier year, up demand As sporadic shortages. of managed in difficult with we disclosed period to we keep the

As you strong growth demonstrated only not the available. could more ANNOVERA for held became up, see, readily when but product demand the

prescriptions by last quarter. grew XXX to targeting week quarter in stock, ANNOVERA quarter, the and growth. rate hit Despite of potential demand June. total prescribers of signs strong a have inventory all-time compared issues, XX,XXX. grew and the prescribers Due [indiscernible] ANNOVERA quarter X,XXX are have we in part inventory of the that prescriptions to high strong the new XXXX and the of the an new the second for Now ample XX% last focus of surpassed mentioned now field at These accelerate we all during an a

access issued Labor other to coverage Act, Biden and the under to Human on agencies methods hormonal things, Department and birth protect services. guarantees like control three control the and steps Treasury among Department order coverage same took an time, of preventative rings clarify In Care for the the XX, of to reproductive pills. including women's protections July addition, the Services, services, healthcare executive Affordable President Health birth At which

environment health great general. flux, women's current in and the in for the is this of ANNOVERA With for state news

long to market. believe only significant option lasting controlled positioned ANNOVERA the women, procedure continue in As a contraceptive role the is we patient free to play for

the to revamped rolled initiatives results force are see one. out and the We focus in starting we quarter accountability of targeting also field

quarter, that IMVEXXY the next targets line during our prescriptions slide, and see with focus. the as declined shifted On in we you'll total slightly from expectation

exceeding the by New see. this by we BIJUVA, and strong had to are, believe are quarter launch. also are of the results we an adding regarding and encouraged Rxers targeting, We slide the and what of with what expected we June prescribers in since early excited new With new continue. uptake we results as focus early evidenced a prescribers prescriptions IMVEXXY expect to reflects by course quite XX,XXX of the this however, X,XXX

efforts. women correct back Hugh seeing signs targeting therapy of turn our O'Dowd successful the VMS for and with over over early directly rebounding now trend declining strategy QX around and BIJUVA research related prescriptions This month-over-month accelerating XXXX, quarter, indicated prescription, X% the which from to the with demonstrates in CEO, line. New-to-Brand be would effort those to previously a symptoms after a slide remarks. for changes. highly growth the messaging sought I'll BIJUVA Market we grew here targeting and that During are call is concluding

Hugh O'Dowd

you, In backdrop Thank amidst a operating the quarter performance we of delivered Mark. of ambiguity. summary, considerable solid

While on our our and focus to through for team employees shareholders, remains empowering on Board the all our thank incredible to Directors, steadfast healthcare. you. patients better of wish and of and behalf our serving commitment women of dedication, I Thank and spirit ages affordable mission their management of our

Operator

Ladies C. Wainwright. Please now our will session. and Instructions] into question you. go Tsao come will from go first ahead. question-and-answer gentlemen, H. Thank Our Douglas we [Operator with

Douglas Tsao

hear you me? can Hi,

Hugh O'Dowd

Hey, Doug. and clear. It's loud

Douglas Tsao

Okay. Great.

Sorry, little static. there's a

use you So you guys of point, a the as obviously, word maybe ambiguity. starting sort

of been you and on especially that persist? you sales I've may in just from can and the force some maybe Just certainly another talk continues some rates, employee call. of That be uncertainty retention it. apologize I still just to to that touched given bouncing

Hugh O'Dowd

offer Hey, Doug, remain a amplify moment Mark and committed. I'll start we response. to and But me my let encouraged

ambiguity quarter even solid of we really level though transformed the of XQ, effort. back force and and so frankly presence revitalized where committed commercial delivered is in strong some of in performance our field a operational on strong, that the And

employees quarter to process. our number So tender with fair really a inclusive fighting through of have very been just the key backdrop, that had amount occur of I we in of wish that think I given acknowledge the a ambiguity events that

would confident in So clear to I that, think team. said Mark, we I you comments? reality. more our just wish remain that to offer think acknowledge Having it's

Douglas Tsao

Doug. Yeah. Thank. Hi,

were like you we're possibility, of that uncertain So turnover. aware of times

that So successful. and and we communication we're stays various ensure engaged rationale and that be field that our to our to working them force hard the to schemes give ensure -- on stay schemes incentive

hope As we turnover a plan continue reasonable is -- to of to now, that. and right in rate very

Douglas Tsao

but there you this, seeing missed standpoint great. and a just I performance ANNOVERA, obviously, Did continue then of this Or be that have just the terms Okay, we're upturn, that of demand? to should performance should of a And we mean, do strong to from us, think available quarter. off is with of might actually base becoming and sort revenue rings end much real how on the -- and pretty scripts to going -- reflective curious was I that levels that's inventory this obviously, sort build Is shipments in aware really of? of? like transparent dynamics revenue we're that some this new

Mark Glickman

was was Obviously, We aspiratic to We Doug. It's volume. That concerns. we The Thanks, channels. feels inventory Mark ANNOVERA again. obviously state. It that had in the refill and it are still number we inventory to of ample inventory are volume. any resumption Everything There's see the a the prior has that to And demand weekly. we concerns. looks settled down. seeing channel. in had expected

on the there running based as and that of ahead of As I channels, for the actually a was a was while revenue because here. inventory believe quarter revenue, the is definitely restocking far demand do demand, the

channels, we forward. So There the Speakers] demand and seeing based. on do -- all but we [Multiple was that plan that was restocked moving

Hugh O'Dowd

saw had We Then the previously us supplement work What fall team that his look challenge was days the event where and the described. we would remarks that happened? had in of that early And what transformation commencing a is, I and undertaken, issues. we QX TRx’s had TRx’s if Mark the those as we was respond. the monthly you at really QX, supply for really

could to to able proper again been approval, see retracting out where was we secured levels ultimately for moment once ourselves fundamental to the then we've us effort. SNDA, you to and return pivot supply now FDA dig a As previous that TRx's this and

answer offer Mark's and believe remarks. I I that target So is on his really just to data supplement

another had you question. Sorry,

Douglas Tsao

slide rejection and to right feel on shouldn't that And sort impact know the there a the documents, long of some I higher concern no. that now saw on to Do the sort that tendered sort was not rates. there for -- the reference -- we're -- TRICARE were that handle you some terms I -- that of situation. just but in necessarily of a term there Yes in short product? just on you results, the have commented an the a peak term going opportunity going to of of you're be was --

Hugh O'Dowd

well. right question. clarify, you We answer want we to can didn't Doug, hear we you make sure the

[Multiple You're just issue Or from the pointing D-X? to a you specific can Speakers]

Douglas Tsao

opportunity think So rates. a the you that comment that which the somebody product there feel just based specifically that ANNOVERA in good? feel one a looked higher, -- term long understand was process, the expressing assessment understand the the you they I reference near quite valuation of performance -- looks the I kind for how rejection to at And of by was somewhat were documents, sense affecting rejection around rates to there that get their I term and where to was wanted at now party of was ANNOVERA, a you was rates just are on your of looking our of right should -- looking And in sort know, -- of company. which ANNOVERA concern affect where participating rejection

Hugh O'Dowd

share. That's helpful. Mark, very please

Mark Glickman

Yes.

So -- referring to. now -- and what you're

contraceptive that retail also for creates serves an uniqueness the pharmacy needs industry the issue is product solution incredibly back once market. -- a within So rejection team B news But going the year last focus high is very were commercial of unique the the really retail having the and quarter year. environment. is launch. ANNOVERIS a rates, been pharmaceutical a last really that A, that of ANNOVERA the ANNOVERA in -- to And in place into since women's had great an the

rejection have I once the cause product. was too ANNOVERA idiosyncrasies intention much not product, found those We reject retail it plans root detail the a but care was into analog year cause, forward. with we get of it but of to had believe it, found at when addressed going and find can't payer we that's we We and root we found can not a more we around the won't another we we you we a ANNOVERA good like that's thing, our not was it rejections. issue addressed it, I partners an we that's the and it, Symphony knew a be the managed issue did of being assure do data, an to it a looked issue, addressed coverage moving

Douglas Tsao

are share can shareholders conversations of vision large who some people that? participating about Okay. with maybe And just for you had their know have And are on and or the I some you. Thank involved the become the then sort company? you in more story thoughts of

Hugh O'Dowd

if of our And with say? what can enables all to our position, our our So the one. evaluate referring pipe, agreement the the right REIT with extension, long you to two, all portfolio our financing while operations, those. respect to together think we have tender in meet financial I company doing we Board Directors any read conclusion think you're our of that discussion what please and of our the With the about the strength demand time in I extension novel now. after the encourage investors the management and maintain believe we to number really I'd details recent maturity of setting options, term team SEC six filings. Rubric company's the deal ample we're that's process,

Douglas Tsao

you now. much. queue hop Thank I'll out for great. very Okay, of the

Hugh O'Dowd

you. Thank Doug,

Operator

I'm back management for to time. remarks. questions further I at would call to in turn showing any this now further queue over like no the the

Hugh O'Dowd

time. narrative and everyone with We'd We today. have day. thank a to to our say you share you care and our thank the appreciate joining your for call Take great like you for opportunity

Operator

Thank today's participating. call. conference for concludes you This

may disconnect. You now

TherapeuticsMD (TXMD) 15 Aug 222022 Q2 Earnings call transcript