Aytu BioPharma(AYTU) - 2019 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported record revenue of $1.8 million for Q2 2019, representing a 71% increase year-over-year and a 25% increase sequentially from Q1 2019 [6][18][19] - Year-to-date revenue reached$ 3.2 million, which is 52% higher than the same period last year [19] - Gross profit for Q2 was approximately $1.3 million, nearly double the gross profit reported for Q2 last year [19] - The net loss for the year-to-date period was$ 8.1 million, compared to a loss of $7.9 million for the same period last year [22] Business Line Data and Key Metrics Changes - Natesto was the primary revenue contributor, with total prescriptions increasing by 27% sequentially and achieving all-time weekly highs in December [11][19] - ZolpiMist launched into its first full quarter, with expectations for meaningful revenue growth going forward [12] - Tuzistra XR was launched through the sales force, showing rapid script growth in the early weeks of promotion [13][15] Market Data and Key Metrics Changes - The company is expanding its commercial portfolio in the$ 3 billion prescription cough suppressant market with Tuzistra XR [7][14] - MiOXSYS, the diagnostic platform for male infertility, is gaining traction in over 30 countries and is supported by reputable fertility thought leaders [16] Company Strategy and Development Direction - The company aims to leverage its diversified product portfolio to drive revenue growth, focusing on Natesto, ZolpiMist, and Tuzistra XR [15][30] - Aytu BioScience is not actively seeking new acquisitions but remains open to opportunities that align with its current product mix [42][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued revenue growth and operational efficiency, expecting to maintain a stable operating expense structure [40][50] - The company anticipates a strong flu season, which may positively impact Tuzistra XR's launch [48] Other Important Information - The company successfully closed a $15 million equity offering and a$ 5 million strategic investment, significantly strengthening its balance sheet [8][22][24] - The Natesto Spermatogenesis Study is showing promising interim results, with potential implications for testosterone replacement therapy [27][29] Q&A Session Summary Question: Can you provide more details about the other cough suppressant filing? - The company is cautious about disclosing details but confirmed it is a complementary antitussive product currently under FDA review, with a near-term opportunity expected [33] Question: What is the expected severity of the new cough suppressant compared to Tuzistra? - The new product is expected to address slightly more severe cases but will not significantly change its position in the treatment paradigm [36] Question: What is the outlook for operating expenses relative to revenue growth? - Management expects to continue leveraging operating expenses effectively, maintaining a stable cost structure while growing revenue [40] Question: Any updates on M&A activity? - The company is satisfied with its current portfolio and is not actively seeking new acquisitions but remains open to opportunities that do not require significant upfront costs [42][43] Question: What is the expected cash burn for the second half of the year? - The company anticipates a decrease in cash burn as revenue grows, with a stable operating expense base [48][50]