Q2 2023 Acorda Therapeutics Inc Earnings Call
Speaker 1: Welcome to quarter therapeutic's second quarter 2023 financial and business update.
Welcome to <unk> Therapeutics second cool touch with your 'twenty trade finance business update.
Speaker 1: At this time all participants are in a listen only mode. There will be a question or not.
All participants are in a mission right.
There'll be a question and not in session to follow please.
Please be advised that this call is being recorded at the request.
Speaker 1: Please be advised at this call is being recorded at the come request.
I will now introduce your host for todays co TNT Shakopee night with Dakota Jenny. Please go ahead.
Speaker 1: I will now introduce your host, the place called Tieni Fakabin over the corner. Tieni, please go ahead.
Thank you Lauren and good afternoon, everyone before we begin let me remind you that our presentation will contain forward looking statements.
Speaker 2: Thank you, Lauren, 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 Fire and Switcher public, and we encourage you to refer to those facts.
Disclosures can be found in our SEC filings, which are public and we encourage you to refer to those filings.
Today during the Q&A, we'll take questions from some of the investors that had been written in and I'll now pass the call over to our CEO Ron Cohen Ron.
Speaker 2: Today during the Q&A we'll pay questions from some of the investors that have been written in. And I'll now pass the call over to our CEO Ron Kern. Ron? Thanks, Tierney.
Thanks, Tony and good afternoon, everyone.
So in brief.
Speaker 3: So, in Brege U.S. net revenues of a second quarter of 2023 was $8.3 million. That's a 12% increase over the same quarter in 2022.
Net revenues for the second quarter of 2023 with eight.
Eight $3 million, that's a 12% increase over the same quarter in 2022.
Speaker 3: And this shows the pattern of US net sales each quarter since launch.
And this shows the pattern of U S. Net sales each quarter since launch and I recall that we lost substantial business in the first quarter of 2022 due to the AUM across COVID-19 surge and that effectively set us back by approximately a year.
Speaker 3: Now recall that we lost substantial business in the first quarter of 2022 due to the Omakron COVID surge. And that effectively set us back by approximately a year. We lost people permanently who had been on the bridge of that we weren't going to get back.
Lost people permanently who had been on the freezer that we werent going to get back now.
Speaker 3: Now we have come back from that setback to the point where the second quarter of 2023 had the highest quarterly net sales as any Q2 since launch.
We've come back from that set back to the point, where the second quarter of 2023 at the highest quarterly net sales as any Q2 since launch.
We saw a similar pattern in total prescriptions or Crs are they increased by 11% over the second quarter of 2022.
Speaker 3: We saw a similar pattern in total prescription, so TRX, they increased by 11% over the second quarter of 2022.
And cartons dispensed to patients increased by 5% over Q2 2022.
Speaker 3: and cartons dispense to patients increased by 5% over Q2-2 2022.
Speaker 3: Looking at the first half of 2023 versus the first half of 2022, new prescription request forms increased 42% over the first half of 2022, and total prescriptions increased 11% and cartons dispensed patients increased by 9% over the same period.
Looking at the first half of 2023 versus the first half of 2022, new prescription request forms increased 42% over the first half of 2022 and total prescriptions increase.
11% and cartons dispensed to patients increased by 9% over the same period.
Speaker 3: Now, new prescriptions are a key leading indicator of future performance. As patients refill and then increase the base of total prescriptions on a go-forward base.
New prescriptions are a key leading indicator of future performance as patients refill and then increase the base of total prescriptions on a go forward basis. We believe we're seeing the impact of the new sales and marketing programs that we launched this year, including our streaming TV.
Speaker 3: We believe we're seeing the impact of the new sales and marketing programs that we launched this year, including our streaming television commercial.
In commercial these have also been enabled by the receding of the pandemic challenges.
Speaker 3: These have also been enabled by the receiving of the pandemic challenge.
Speaker 3: We believe that full-year, in Breesha, 2022 and next sales will be lower than our guidance at the beginning of the year. And we're therefore updating our 2023 guidance to between $34 to $38 million from our original guidance range of $38 to $42 million.
We believe that full year embrasure at 2023, net sales will be lower than our guidance at the beginning of the year and we are therefore, updating our 2023 guidance to between 34% to $38 million.
From our original guidance range of $38 million to $42 million.
Speaker 3: Now that still represents substantial net sales growth this year over 2022. And if the growth in new prescription requests that we've seen the first half continues, we expect to see continued acceleration in net sales going forward.
That still represents substantial net sales growth this year over 2022, and if the growth in new prescription requests that we've seen in the first half continues we expect to see continued acceleration in net sales going forward.
We recently launched a new consumer embryo website and.
Speaker 3: We recently launched a new consumer in Grisha website and brand campaign. You can see this at embresha.com.
Brand campaign, you can see this that in breach of Dot com. The campaign is called for the fighters. It's based on extensive feedback that we've gotten from people with Parkinson's and it recognizes the fighting spirit of the people, who have Parkinson's and encourages them to augment their fight by considering.
Speaker 3: The campaign is called For the Fighters. It's based on extensive feedback that we've gotten from people with Parkinson's. And it recognizes the fighting spirit of the people who have Parkinson's and encourages them to augment their fight by considering whether an on-demand treatment for off periods such as Embryza is right for them.
Whether an on demand treatment for off periods, such as embrasure is right for them.
Speaker 3: The campaign highlights that the return of symptoms are off periods between regular doses of their medications may cause people with Parkinson's to avoid going out or make plans to miss important moments in their lives such as those related to their family or friends, their interests, their exercise.
The campaign highlights that the return of symptoms or off periods between regular doses of their medications may cause people with Parkinson's to avoid going out or make plans.
To Miss important moments in their lives such as those related to their family or friends their interest their exercise.
Speaker 3: And since the recent withdrawal from the market of Kymobi, which was one of the only two other on-demand therapies for Parkinson's off-periods, we believe it's even more important now for us to provide needed education and support for the Parkinson's community regarding the potential benefits of on-demand therapy.
And since the withdrawal from the market.
<unk>, which was one of the only two other on demand therapy for Parkinson's off periods. We believe it's even more important now for us to provide needed education and support to the Parkinson's community regarding the potential benefits of on demand therapy.
This campaign augments the TV commercial that we launched on over 50 streaming channels at the end of March it's been doing extraordinarily well. It's had about 8 million views in just four months since launch with widespread reports of patients who have seen it and subsequently have.
Speaker 3: This campaign augments the TV commercial that we launched on over 50 streaming channels at the end of March.
Speaker 3: It's been doing extraordinarily well. It's had about eight million views in just the four months since launch with widespread reports of patients who have seen it and subsequently have been asking their physicians about in Breaja and recall that this commercial is being targeted specifically to be viewed by people who have Parkinson's in the household or healthcare professionals who treat Parkinson's.
And asking their physicians about brita and recall that this commercial is being targeted specifically to be viewed by people who have Parkinson's.
The household or health care professionals, who treat Parkinson's.
Speaker 3: Speaking of which, large numbers of healthcare providers have seen the commercial. And 165 have prescribed in Breza for the first time in 2023 since either they or their patients saw it.
Speaking of which large numbers of health care providers have seen the commercial and 165 have prescribed embrasure for the first time in 2023 since either they or their patients saw.
Speaker 3: Regarding Imbruges' performance outside the US, the Votens fame is going very well and ahead of its database projection.
Regarding <unk> performance outside the U S. The launch in Spain is going very well and ahead of its <unk> projections.
Speaker 3: Uptake in Germany has been slower than the Sveve's initial projections, and Sveve continues to report high levels of enthusiasm for the product in Germany.
Uptake in Germany has been slower than established initial projections and aesthetic continues to report high levels of enthusiasm for the product in Germany.
<unk> been addressing some issues that are unique to the German market.
Speaker 3: They've been addressing some issues that are unique to the German market, including deploying nurse educators to help train patients in person, and providing smaller boxes of egregia, specifically to meet the needs for in-hospital distribution.
Including deploying nurse educators to help train patients in person.
And providing smaller boxes have been breached spin.
Specifically to meet the needs for in hospital distribution now that's because uniquely in Germany, many Parkinson's patients theyre actually initiate their therapy in a short term hospital stay and then are sent out to their regular doctors to continue therapy.
Speaker 3: Now, that's because uniquely in Germany, many Parkinson's patients there actually initiate their therapy in a short-term hospital stay, and then are sent out to their regular doctors to continue therapy, but the needs of the hospital are for smaller packages of Ebrecia, and we've been collaborating with the Sede to provide that.
But the needs for hospitals or for smaller packages of embrasure.
Been collaborating with the survey to provide that.
Chance pharma expects to get an update from the Chinese regulatory authorities about the path to approval in late 2023 or early 2024 now that regulatory update will result in a milestone payment from chat to a quarter of up to $6 million.
Speaker 3: Chance pharma expects to get an update from the Chinese regulatory authorities about the path to approval in late 2023 or early 2024. Now that regulatory update will result in a milestone payment from chance to a quarter of up to six million dollars. We also received the upfront payment of two and a half million dollars in Q2 of this year.
We have also received the upfront payment of $2 5 million in Q2 of this year.
Speaker 3: Bio-Toss is working on the needed regulatory filings in Latin America, with they're telling us the potential now for the resia approval in up to five countries and at least one launch in 2024.
<unk> is working on the needed regulatory filings in Latin America with they are telling us the potential now for <unk> approval and up to five countries and at least one launch in 2024.
Speaker 3: We also continue to be in discussions with other companies for agreements in additional countries, in the EU and around the world.
We also continue to be in discussions with other companies other companies for agreements in additional countries in the EU and around the world.
Moving to <unk>.
Speaker 3: The Peri-US Net revenue for the first quarter was $16.9 million. That's a 7% decline over Q2 of 2022.
<unk> U S net revenue for the first quarter was $16 $9 million.
7%.
Decline over Q2 of 2022.
Speaker 3: And here you see and peer-to-sales performance from the beginning of generic competition in Q4 2018. And as you see, the slope of the decline has continued to flatten into Q2 of 2023.
Here, you see and Purion sales performance from the beginning of generic competition in Q4 of 2018 and as you see the slope of the decline as continued to flatten into Q2 of 2023, we're reiterating our guidance for 2023 net sales of between six.
Speaker 3: We're reiterating our guidance for 2023 net sales of between $65 and $70 million. And we believe that sales will stabilize at approximately 60 million plus over the next several years, based on the patterns that they have.
$570 million and we believe that sales will stabilize at approximately $60 million plus over the next several years based on the patterns to date.
We've continued to exercise to execute effectively on our strategy to maintain the <unk> brand against the generic competition access remains high for <unk> over 65% of covered lives can get access through their insurance our field sales.
Speaker 3: Now, we've continued to execute effectively on our strategy to maintain the empiric brand against the generic competition.
Speaker 3: Access remains high for impure, over 65% of covered lives can get access through their insurance.
Speaker 3: Our field sales team continues to call on MS Specialists to ensure that they're aware of the support that we're continuing to provide for the brand. And one of the most encouraging signs of our success in maintaining the brand in the first half of 2023.
Team continues to call on Ms specialists to ensure that they are aware of the support that we're continuing to provide for the brand and one of the most encouraging signs of our success in maintaining the brand and the first half of 2023 159 physicians prescribed branded.
Speaker 3: 159 positions prescribed branded Ampira who had not prescribed at all in 2022 and they wrote 195 new prescription requests for the brand.
And PURA, who had not prescribed at all in 2022, and they wrote a 195, new prescription requests for the brand.
Now I'll turn the call over to our CFO , Mike <unk>, who will review the financials.
Speaker 3: Now I'll turn the call over to our CFO , my guester, we'll review the Farnet.
Speaker 4: Thank you, Ron. That global and breager revenue was essentially flat to Q2 2022. Last year in Q2 2022, we called that we made the initial shipment of a heavy Germany of $1.8 million.
Thank you Ron.
Global in breach of revenue was essentially flat to Q2 2022 last year in Q2 2020 to recall that we made the initial shipment of our <unk>, Germany of $1 $8 million.
Speaker 3: Net Imperial revenue decreased 1.3 million or 7% from Q2 2022.
Net revenue decreased $1 3 million or 7% from Q2 2022.
Speaker 3: SCNA decreased 8.3 million from Q2 2022 at 12.7 million the first half of 203 from the first half of 2022.
SG&A decreased $8 3 million from Q2 2022 at $12 7 million in the first half of 'twenty three from the first half of 2022.
Cash decreased $10 million from Q2 2022.
Speaker 3: cash decreased $10 million from Q2 2020 to
In addition to our U S revenue.
Speaker 3: In addition to our US revenue, we reported 800,000 dollars in the breach of XUS sales, $2.9 million in vampire royalties and $800,000 in Norellus royalties, for a total of $4.5 million in additional XUS revenue for the second quarter.
We reported 800000 parts in a breach of ex U S sales $2 $9 million in Piero royalties and $800000 in neurology royalties for a total of $4 5 million in additional ex U S revenues for.
For the second quarter.
Speaker 3: As we're unnoted, we are updating our financial guidance for 2023. We expect in Breza, US net revenue of between $34 and $38 million versus the original $38.42 million.
As Ron noted we are updating our financial guidance for 2023, we expect <unk> U S. Net revenue of between $34 million to $38 million versus the original $38 million to $42 million. We are reiterating our interior U S. Net revenue of between 65 and $70 million.
Speaker 3: We are reiterating our imperial US net revenue of between $65 and $70 million.
Speaker 3: Adjustive operating expense to skydads will be tightened to between 93 million and 98 million.
Adjusted operating expense guidance, we tightened to between $93 million and $98 million.
Speaker 3: and the improvement from our original guidance of 93 to 100 is pretty very involved.
An improvement from our original guidance of $93 million to $103 million.
We now expect our ending cash balance to be between $39 million and $42 million versus the original $43 million of $47 million, Although we were able to mitigate.
Speaker 3: We now expect our ending cash balance to be between $39,000 and $42 million versus the original $43,000,000, $47,000. Although we were able to mitigate some of the injuries in that revenue through improved SDNA and other balance sheet items, we do not expect to be cash flow neutral in 2023. And now I'll turn the call back over to Ron.
Some of the <unk> net revenue grew improved SG&A and other balance sheet items, we do not expect to be cash flow neutral in 2023.
And now I'll turn the call back over to Ron.
Thanks, Mike.
Okay.
So before summarizing our priorities moving forward I wanted to acknowledge that we all would have preferred not to have a slower in breach of guidance for the year, which in turn has necessitated lowering our cash flow projections somewhat that's a miss and we owned it.
Speaker 4: So before summarizing our priorities moving forward, I want to acknowledge that we all could prefer not to have us lower and breach a guidance for the year, which in turn is necessitated lowering our cash flow projections somewhat. That's a miss and we own it. Now.
Now that said.
We believe that the trends in the first half of the year have been highly positive our new embryo guidance still represents significant growth from last year, and we've been successfully accelerating and breezes U S trajectory, taking advantage of the new post COVID-19 environment with our new television commercial and brand campaigns that I discussed earlier.
Speaker 3: We believe that the trends in the first half of the year have been highly positive. Our new Enbreeze Guidance still represents significant growth from last year, and we've been successfully accelerating Enbreeze's US trajectory, taking advantage of the new post-COVID environment with our new TV commercial and brand campaigns that I discussed earlier.
<unk>.
Speaker 3: We believe that these have gained a lot of traction since the beginning of the year. We've seen it especially in the increase in Imbrisa and New Prescription requests in the first half, 42% over the first half of last year, and in the number of positions who have prescribed to the first time in 2023. We believe that these are key indicators for future growth.
But we believe that these have gained a lot of traction since the beginning of the year, we've seen it especially in the increase in embryo new prescription request in the first half 42% over the first half of last year and in the number of physicians, who prescribed for the first time in 2023, and we believe that these are key indicators.
For future growth.
Speaker 3: We're also maintaining the ampere of brand as we set with continued flattening of the attrition curve.
We're also maintaining VM pure to brand as we said with continued flattening of the attrition curve.
Speaker 3: And we're exercising Piscill discipline. Mike said we're adjusting our guidance on OPEX for the year to 93 to 98 million down from 93 to 103 million. And we're aiming to lower our costs further and implement additional efficiency.
And we're exercising fiscal discipline as Mike said.
Adjusting our guidance on Opex for the year to 93% to $98 million down from $93 million to $103 million and we're aiming to lower our costs further and implement additional efficiencies.
Speaker 3: Now importantly, we continue to have open communications with a court as convertible debt holders so that we can arrive at collaborative approaches to servicing the company's debt, which is due at the end of next year.
Importantly, we continue to have open communications with cordis convertible debt holders. So that we can arrive at collaborative approach is servicing the company's debt, which is due at the end of <unk>.
Next year.
And finally with respect to our ARCUS technology. Our team has shown the ability to create shelf stable mrna formulations now as well as various proteins and peptides. In addition to small molecules and we're continuing to evaluate to elaborate.
Speaker 3: And finally, with respect to our artist technology, our team has shown the ability to create shelf-sable mRNA formulations now, as well as various proteins and peptides in addition to small molecules. And we're continuing to evaluate collaborations for creating important new and ill-theraic.
<unk> for creating important new inhaled therapies and I'm going to turn this back to Mike for just a couple of seconds because.
Speaker 3: And I'm going to turn this back to Mike for just a couple of seconds because I believe he needs to correct one of the numbers he mentioned. Yeah, thank you, Ron. I'm just saying as a number that's clear on the tab or on the slide. Are you in task balance?
I believe he needs to correct one of the numbers you mentioned, yes. Thank you Ron.
David a number thats clear on the tab.
Slide are indeed cash balance.
Speaker 5: expected to be between 39 million and 44 million, I said 42.
As expected to be between $39 million $44 million I said 42 funds stake. Thank you Mike.
Speaker 3: All right, thank you all, and we'll now open the call to your questions.
Alright.
Thank you all and we will now open the call to your questions.
Speaker 2: Thanks, Ron. If there are people on the call who wish to submit a question, they should do so at the time we have a couple of questions.
Thanks, Rob.
There are people on the call who wish to submit a question Keith style finally.
Couple of questions.
Alrighty.
Speaker 2: already. The first question is, so you say you're encouraged about the trajectory of an breeder going forward and that you think sales will accelerate, but you just reduced your sales guidance downward and the increases that you report in new prescription requests for the first half of the year are not reflected in your total prescriptions, net sales, or cartons. So why do you look at yourende??
First question.
Please say your inquiries about the trajectory of inflation going forward and that you think sales will accelerate but you just reduce your sales guidance downward and the increases that you report in new prescription request for the first half of the year are not reflected in your total prescriptions.
Net sales our carton so why do you expect the brand to growth.
Okay, Let me, let me unpack that.
Speaker 3: Okay, let me unpack that a little bit. So as I said, yes, we have taken our guidance down and even with the new guidance.
As I said, yes, we did we have taken our guidance down.
And even with the new guidance.
Speaker 3: We're still, that still represents a very nice increase over last year's sales. So we are seeing growth. It's just not, the timing is such that it's not as aggressive as our projections had it originally. And as I said, you know, we have to own our projections and we have to continue to improve on that. And that's where we are. Now in terms of the prescription request forms.
We're still that's still represents a very nice increase over last year's sales. So we are seeing growth. It's just the timing is such that it's not as aggressive as our projections had it originally and as I said, we have to own our projections and we have to continue to improve.
On that and that's where we are now in terms of the <unk>.
Prescription request forms.
B.
Total prescriptions.
Speaker 3: Total prescriptions, which reflect, at which ultimately reflected in our net revenue. Total prescriptions.
Which reflect which are ultimately reflected in our net revenue total prescriptions.
Speaker 3: The vast majority of that is made up of refills, not of new prescriptions. New prescriptions make up a small minority of the total prescriptions that we see over time. So when we see a bump,
Vast majority of that is made up of refills not of new prescriptions, new prescriptions make up a small minority of the total prescriptions that we see over time, so when we see a bump.
The first half of this year over first half of last year by 42% that's quite gratifying. It means that we are getting our messages across more physicians are prescribing it expanding their view of who could benefit from the driving more patients are asking for it and so on so that's real progress.
Speaker 3: You know, first half of this year, over first half of the last year by 42%. That's quite gratifying. It means that we are getting our messages across more physicians are prescribing it, expanding their view of who could benefit from the drug, more patients are asking for it, and so on. So that's real progress given, especially what we were working with and the challenges during the pandemic.
Given especially what we were working with and the challenges during the pandemic.
It takes time for those new prescriptions to be totally reflected in the growth of the product and the growth of revenues because it starts at being a minority, but then as a sizable portion of those new patients begin to refill.
Speaker 3: It takes time for those new prescriptions to be totally reflected in the growth of the product and the growth of revenues because it starts out being a minority but then as a sizable portion of those new patients begin to refill.
Speaker 3: then those refills now grow the total.
Then those refills now grow the total prescriptions.
Speaker 3: prescriptions that we see over time. So that's why I mentioned that the new prescriptions are leading indicator. We're already seeing that come into net revenue because we are increasing that revenue. We expect that if this trend continues with our new prescriptions that we're going to see the total, the totals in net revenue and total prescriptions accelerating from this point forward.
Prescriptions that we see over time so.
That's why I mentioned that the new prescriptions are a leading indicator we're already seeing that come into net revenue because we are increasing that revenue. We expect that if this trend continues with our new prescriptions that we're going to see the total.
Totals in net revenue and total prescriptions accelerating from this point forward.
Thank you.
Speaker 2: Thank you. And the next question is, are you looking to expand in Brezia in Canada, and can you provide an update for further expansion than other European countries?
Dan.
Our next question is are you.
Are you looking to expand Indonesia and Canada.
Can you provide an update for further expansion in other European country.
I guess, what I would say to that is that we're not breaking out specific countries, except to say that we are in discussions for other territories outside the U S.
Speaker 3: I guess what I would say to that is that we're not breaking out specific countries except to say that we are in discussions for other territories outside the U.S. around the world. And I think we'll leave it at that because we're in the middle of discussions and we have said this before and when we have a new deal ready obviously we will.
Around the World and I think we'll leave it at that because we're in the middle of discussions.
We have we have said this before and we.
When we have a new deal ready, obviously, we will.
But we will publish it immediately it will we'll put that out immediately.
Speaker 3: We will publish it immediately and we'll put that out of me.
Yeah.
Speaker 2: Okay, thank you. We don't have any other questions at this time. So Lauren, I'll turn it back over to you to wrap it up.
Okay. Thank you we don't have any other questions at this time, so Lauren I'll I'll turn it back over to you to wrap it up.
Alright, well, thanks, Jenny and thank you again, everyone for joining us.
Speaker 3: All right, well thanks, Tierney, and thank you again, everyone for joining us. We're looking forward to giving you the follow-up and the next quarter and beyond. Have a good evening.
We're looking forward to.
Giving you the follow up in the next quarter and beyond.
Have a good evening everyone.
Okay. Thank you.
This concludes the <unk> therapeutics second quarter, 2023 financial and business update.
Speaker 1: This concludes the Corda Therapeutic second quarter twenty twenty three financial business updates. Thank you for your participation.
Thank you for your participation.
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