Q2 2021 Acorda Therapeutics Inc Earnings Call
Okay.
Ladies and gentlemen, Hello, and welcome to the quota therapeutics second quarter 2021update on this.
This time, all participants Oh, and I listen only made that'll be a question and answer session to follow and I will now hand, you gives you a hasty here and Isa Covina Executive Vice President of corporate communications and quota to begin Kenny. Please go ahead when you're ready.
Thank you Maximo and good afternoon, everyone. Before we begin let me remind you that our presentation will contain forward looking statements detailed disclosures can be found in our SEC filings, which are public and we encourage you to refer to those filings as a reminder to all callers join the queue and.
So shouldn't we will only take calls from our analysts I'm now going to pass the call over to our CEO, Ron Paul and Ron.
Thanks, Jeremy.
Welcome everyone.
I'll get right into a report and I'm pleased to report that and Brita and net revenue for the second quarter of 2021 was $6.4 million that was a 36% increase over the second quarter of 2020.
This was particularly encouraging in light of the continuing impact of the pandemic.
And Pierre and net revenue from the second quarter was likewise encouraging at $21.8 million, we believe that the durability of and pure brand. Since it went generic in September 2018 is due to the strategies that we deployed and that we're continuing to execute and peering.
<unk> is an important contributor to reported financial stability and to our goal of becoming cash flow neutral on a run rate basis by the end of 2022.
Moving to our and Brita business and trajectory as a reminder, embrasure inhaled levodopa, it's indicated to address the return of symptoms or off periods that many people with Parkinson's experience and between doses of their regularly scheduled medic.
Patients.
We saw encouraging signs of growth and Enbridge and compares to the second quarter of 2020 as the pandemic began to recede and as I mentioned, we had a 36% year over year increase and net sales. We also had a 16% increase and total prescriptions over Q2.2020.
And importantly, we had a 22% increase and organic growth measured by dispense cartons, which most accurately reflects demand.
While we're pleased with the progress the course of the Covid pandemic continues to make it difficult to predict how quickly positions offices will continue to open and how quickly at risk populations will resume their office visits.
We also announced our first ex U S commercialization agreement with <unk> Pharmaceuticals, and Spain instead.
<unk> has a successful track record of commercializing and pharmaceutical products and the Spanish market.
And this is an important milestone toward our goal of ex U S commercial partnerships for embryo.
And that's part of the supply agreement <unk> will receive significant double digits percentage of gross sales and exchanged for supply the product.
<unk> expects to launch and <unk> in the fourth quarter of 2022 were on.
Also in active discussions with additional companies for the rights to Enbridge in other territories in Europe, and the rest of the world.
Moving to and PURA.
And Purion net revenue increased 7% over the first quarter of this year and decreased only by about 15% over Q2.2020, we believe that the durability of this franchise is due to a number of factors first patients and their physicians remain loyal to the brand.
And we've earned that loyalty based on the education and support and care that we've always provided and continue to provide for branded and <unk> and that includes our first step program and which commercially insured patients get their initial 2 months of Empire are free and we also provide co pay Medicaid mitigation.
And for commercially insured patients and physician and reimbursement support and our field sales team is also continuing to call on Ams specialist, where they've maintained strong relationships.
Moving to our financials and goals for 2021.
The financials are summarized on this table and in more detail on our press release and 10-Q.
And I want to note in particular that are cash of approximately $71 million at the end of Q2 is net of the <unk>.
Other payment that we made during the quarter to settle our short term convertible debt.
Okay.
Moving to how we are building long term value going forward, we've taken significant steps to position accorded to build long term value. We're focused on the following key factors first continuing to drive and breaches commercial growth.
The initiatives that we started in 2022 enhance the patient experience are continuing to yield positive results as prescriptions and dispense cartons grew nicely in the quarter, we held over 100 virtual patient events and the first 6 months of 2021 and potentially will add in pairs.
And events later this year, depending on the status of the pandemic.
Our field team is return to in person meetings with prescribers and we believe that contributed materially to the increases and prescriptions and the second quarter to the extent that the effects of the pandemic, hopefully recede and the fall and beyond we expect our field teams to gain increasing and person access to <unk>.
And as offices and to see more patients returning to regular office visits.
Importantly.
As we mentioned we have secured our first agreement to commercialize embrasure outside the U S and Spain and we're in active discussions with several parties for additional territories in Europe and the rest of the world.
Regarding on PURA.
While we expect the brand to continue to decline against generics over time, we've been very encouraged by the brand's durability to date and we will maintain that as much as possible by continuing to provide our support programs and to have our field teams, calling on EMS offices.
Another key factor and building value is to continue our fiscal discipline and continue to reduce expenses going forward. We also expect to receive a total tax credit from the cares Act. This year of approximately $5 million to $7 million of which about $2 million has already been realized.
In addition, we expect to have the royalties from Biogen on ex U S sales of Bam PURA revert back to afford and the second half of 2022. As a reminder, these are double digit tiered royalties on net sales and also by way of reminder, we're aiming to be cash.
Low neutral on a run rate basis by the end of 2022.
We're also seeking to build on the ARCUS technology platform. It has now been validated by the approval of embrasure and the U S and EU as well as by funding from the Gates Foundation.
From a pediatric and hailed surfactant product.
We plan to discuss potential collaborations with other companies.
Some of whom have already expressed interest and additional potential indications for ARCUS.
We will now open the call for your questions.
Okay.
Our first question comes from <unk> <unk> from H C. Wainwright. Your line is now open.
Yes.
Hi, This is on call ROM Selvaggio, HC Wainwright and thanks for taking my questions. So.
So firstly with regards to the marketing.
Firstly with regards to the marketing assets for Enbridge can you gauge how effective fuel and digital market marketing's been during the pandemic.
And to what extent.
Face to face marketing activities and resuming.
Yeah.
It's always difficult or challenging to gauge precisely or with any precision.
How much any given part of our marketing program is contributing to the overall trends that 1 sees.
Based on various types of analyses.
Both on the data itself and then feedback from the field, we believe that the digital programs have been effective, especially during the pandemic during periods where there.
The number of physicians offices that were opened and the number of patients who were visiting physician's offices plummeted.
On that particularly in March April may and beyond of last year.
Those fell off a cliff and the digital.
And programs that we were sponsoring we think did a lot to keep.
And Greece in mind for the physicians and the patients and you can see it in terms of.
For example, how many clicks, we get and how many downloads we get on the website of patient position discussion guides, which we're extremely robust growing.
And during that time, and and May continue to be extremely robust.
And we sense the field force back into the field as of February February March timeframe.
And what I can tell you is that for a product like embryo, which is novel. It is a drug device combination. So it's a novel kind of inhaler and the whole method of delivery route of delivery to deliver levodopa systemically through the lungs is it.
<unk> novel concept. So it requires training it requires education.
And what we have found is that in person.
Administrations in person conversations are the most effective ways of achieving that without question.
So the pandemic.
And unfortunately hit US right during the launch phase of the product and we've had to compensate for that getting the field force back in the field is very important.
It's very important and solidifying our relationships with the physicians offices, where they understand the educational materials that we offer the hub services that we offer to patients.
And more than anything where they understand the product itself and how it's used.
And they can see it.
They can see a demonstration of it you can do that on zoom or on the on other video modalities, but the reality is number 1 it's not always that easy to get a given physician to get on a video call right.
And number 2 it's just not as effective as being their letting them touch it and feel it and so forth. So the short answer after all that is that the.
In person field force is very important we believe to the whole effort.
And to this point.
It is still the case, particularly with Delta variant and the the new wave of Covid. It is still the case that we are not nearly at 100% in terms of resumption of patient visits to many of the offices. Some of them are at 100% others are not and practice it's <expletive>.
<unk> to gauge nationally what percent that is but we believe it is meaningful and meaningful percent.
And where we're still waiting to see resumption of completely normal volumes.
The other piece of that.
Is that.
Even offices that are open or.
Not always open to the field force. So they may be open for patient visits, but they are limiting their volume and part of that limitation is the less essential visits obviously the patients are the essential visits so the less essential which is everything else, including our field force, even though they are important.
Jordan.
Tend to fall by the wayside when that choices being made so we are getting access but it is nowhere near what it was before the pandemic and we expect that as the pandemic recedes and we should see.
Turn to more normal patterns more normal access and from our perspective that will be meaningfully beneficial to the brand going forward.
That's very helpful color and some very useful insights. Thank you.
1 more if I may regarding the sales of Empire.
And to see that the resilience to Genericize nation.
To what extent do you think youll dispense as written and the AWS strategy has been pervasive and you'll pay a marketing would you be able to estimate the percent of D. A W prescriptions that are happening.
I am not.
I just don't have that.
And tell you and as that.
That asset.
I'm sorry, there was a little interference on the line are you still there.
Hello.
Yes.
Yes.
Yes.
Yes so.
What I can tell you is that at the time that generics hit the market, which was September of 2018.
We had well we had over 90% of prescriptions that were being written this DSW at that point and.
And.
I don't have the latest numbers for you on that but that was certainly an important element and it has been and important element and maintaining the strength of the brand and it.
And again it reflects what I just reported on on our quarterly report which is.
There is enormous to this day enormous brand loyalty.
Which I think we well earned over the years and many physicians continue to favor the brand as a result.
Okay.
Thanks for taking my questions.
And <unk>.
My pleasure. Thank you.
Okay.
We have no further questions I'll hand, it back to you.
Well, thank you very much operator, and thank you all for joining us.
We look forward to updating you again at our next quarterly have a great evening Bye now.
Ladies and gentlemen. This concludes today's call. Thank you for joining you may now disconnect your lines.
Yeah.
Yes.
And.
And.
And.
Yeah.
Yes.
Okay.
[music].
And.
Okay.
Okay.
Okay.
Okay.
Sure.
[music].