Q2 2025 Journey Medical Corp Earnings Call

Speaker #1: Ladies and gentlemen, thank you for standing by. Good afternoon and welcome to Journey Medical's second quarter, 2025 financial results and corporate update conference call.

Operator: Ladies and gentlemen, thank you for standing by. Good afternoon and welcome to Journey Medical's second quarter 2025 financial results and corporate update conference call. At this time, all participants are in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. Participants of this call are advised that the audio of this conference call is being broadcast live over the internet and is also being recorded for playback purposes. A webcast replay of this call will be available approximately one hour after the end of the call for approximately 30 days. I would now like to turn the call over to Jaclyn Jaffe, the company's Senior Director of Corporate Operations. Please go ahead, Jaclyn.

Speaker #1: At this time, all participants are in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

Speaker #1: Participants of this call are advised that the audio of this conference call is being broadcast live over the internet and is also being recorded for playback purposes.

Speaker #1: A webcast replay of this call will be available approximately one hour after the end of the call, for approximately 30 days. I would now like to turn the call over to Jaclyn Jaffe, the company's Senior Director of Corporate Operations.

Speaker #1: Please go ahead, Jaclyn.

Speaker #2: Good afternoon, and thank you for participating in today's conference call. Joining me from Journey Medical's leadership team are Claude Maraoui, co-founder, president, and chief executive officer, and Joseph Benesch, chief financial officer.

Jaclyn Jaffe: Good afternoon and thank you for participating in today's conference call. Joining me from Journey Medical's leadership team are Claude Maraoui, Co-Founder, President and Chief Executive Officer, and Joseph Benesch, Chief Financial Officer. Joining for the Q&A portion of the call will be Ramsay Aloosh, Chief Operating Officer and General Counsel, Dr. Shrini Siddhgirti, Vice President of Research and Development, and Louis Donati, Director of Market Access. During this call, management will be making forward-looking statements, including statements that address, among other things, Journey Medical's expectations for future performance, operational results, financial condition, and the receipt of regulatory approvals. Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements.

Speaker #2: Joining for the Q&A portion of the call will be Ramsey Alush, chief operating officer and general counsel, Dr. Srini Sadhgiti, vice president of research and development, and Louis Danotti, director of market access.

Speaker #2: During this call, management will be making forward-looking statements, including statements that address, among other things, Journey Medical's expectations for future performance, operational results, financial condition, and the receipt of regulatory approvals.

Speaker #2: Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements. For more information about these risks, please refer to the risk factors described in Journey Medical's most recently filed periodic reports on Form 10-K and Form 10-Q.

Jaclyn Jaffe: For more information about these risks, please refer to the risk factors described in Journey Medical's most recently filed periodic reports on Form 10-K and Form 10-Q, the Form 8-K filed with the SEC today, and the company's press release that accompanies this call, particularly the cautionary statements in it. Today's conference call includes non-GAAP financial measures that Journey Medical believes can be useful in evaluating its performance. You should not consider this additional information in isolation or as a substitute for results prepared in accordance with GAAP. For a reconciliation of this non-GAAP financial measure to net loss, its most directly comparable GAAP financial measure, please see the reconciliation table located in the company's earnings press release. The content of this call contains time-sensitive information that is accurate only as of today, Tuesday, August 12th, 2025.

Speaker #2: The Form 8-K filed with the SEC today and the company's press release that accompanies this call, particularly the cautionary statements in it. Today's conference call includes non-GAAP financial measures that Journey Medical believes can be useful in evaluating its performance, you should not consider this additional information in isolation or as a substitute for results prepared in accordance with GAAP.

Speaker #2: For a reconciliation of this non-GAAP financial measure to net loss, it's most directly comparable GAAP financial measure, please see the reconciliation table located in the company's earnings press release.

Speaker #2: The content of this call contains time-sensitive information that is accurate only as of today, Tuesday, August 12, 2025. Except as required by law, Journey Medical disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call.

Jaclyn Jaffe: Except as required by law, Journey Medical disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call. It is now my pleasure to turn the call over to Claude Maraoui, Co-Founder, President and Chief Executive Officer of Journey Medical.

Speaker #2: It is now my pleasure to turn the call over to Claude Maraoui, co-founder, president, and chief executive officer of Journey Medical.

Speaker #3: Thank you, Jaclyn, and good afternoon to everyone on the call today. The second quarter of 2025 marks the first full quarter since we introduced Amrosi.

Claude Maraoui: Thank you, Jaclyn, and good afternoon to everyone on the call today. The second quarter of 2025 marks the first full quarter since we introduced Amrosi, our best-in-class oral rosacea treatment, into the market. Today, I am pleased to report that our second quarter net product revenue of $15 million included approximately $2.8 million of Amrosi sales, surpassing our prior year quarter sales and contributing to a notable improvement in the business gross profit margins. Our strategic initiatives aimed at optimizing operations and controlling our overall operating expenses have further enhanced progress toward our goal of becoming sustainably EBITDA positive later this year. We continue to execute on a launch, with Amrosi prescriptions increasing at an impressive pace as we gained additional traction with dermatology prescribers. Patients have positive experiences with the product, and we continue to expand the number of covered lives with health plan access to Amrosi.

Speaker #3: Our best-in-class oral rosacea treatment into the market. Today, I am pleased to report that our second quarter net product revenue of $15 million included approximately 2.8 million dollars of Amrosi sales, surpassing our prior year quarter sales and contributing to a notable improvement in the business gross profit margins.

Speaker #3: Our strategic initiatives aimed at optimizing operations and controlling our overall operating expenses have further enhanced progress toward our goal of becoming sustainably EBITDA-positive later this year.

Speaker #3: We continue to execute on the launch, with Amrosi prescriptions increasing at an impressive pace as we gain additional traction with dermatology prescribers. Patients have positive experiences with the product, and we continue to expand the number of covered lives with health plan access to Amrosi.

Speaker #3: As anticipated, Accutane sales were pressured due to aggressive pricing from generic competition. Sales of the product declined compared to the prior year period, however, we were pleased to see our growth brands more than offsetting the decline.

Claude Maraoui: As anticipated, Accutane sales were pressured due to aggressive pricing from generic competition. Sales of the product declined compared to the prior year period. However, we were pleased to see our growth rands more than offsetting the decline. While we work to stabilize our Accutane business, we remain focused on the growth of Amrosi and Qubrexa, our number one and number two sales details, respectively. We believe that these products can drive significant revenue growth and earning power regardless of additional Accutane sales volatility if it continues. The awareness that we have created for Amrosi and the positive responses from physicians and patients thus far have become evident in the prescription trends for the product. Through the end of July, we have generated over 12,800 Amrosi prescriptions based on TRX data from Symphony Health.

Speaker #3: While we work to stabilize our Accutane business, we remain focused on the growth of Amrosi and Qbrexa. Our number one and number two sales details respectively.

Speaker #3: We believe that these products can drive significant revenue growth and earning power regardless of additional Accutane sales volatility if it continues. The awareness that we have created for Amrosi and the positive responses from physicians and patients thus far have become evident in the prescription trends for the product.

Speaker #3: Through the end of July, we have generated over $12,800 Amrosi prescriptions, based on TRX data from Symphony Health. Each month since we've launched Amrosi, total prescriptions have reached a new high and on a weekly basis, each successive week has come in higher than the prior week.

Claude Maraoui: Each month since we've launched Amrosi, total prescriptions have reached a new high and on a weekly basis. Each successive week has come in higher than the prior week, with the exception of the Memorial Day and July 4th holidays. Additionally, I am pleased to report that in Amrosi's third month of promotion, the product has achieved more than a 10% share of new prescription demand among dermatology writers, which is our initial prescriber target. Supporting these strong prescription trends is the significant increase in payer access for Amrosi. From 30% of commercial lives in May of this year to approximately 65% of commercial lives, as noted in our announcement in July. Our ability to obtain a strong base of planned access so early in the launch demonstrates the strength of our clinical package and the value proposition that Amrosi offers to patients and payers.

Speaker #3: With the exception of the Memorial Day and July 4th holidays, I am pleased to report that in Amrosi's third month of promotion, the product has achieved more than 10% share of new prescription demand among dermatology writers.

Speaker #3: Which is our initial prescriber target. Supporting these strong prescription trends is the significant increase in payer access for Amrosi. From 30% of commercial lives in May of this year to approximately 65% of commercial lives as noted in our announcement in July.

Speaker #3: Our ability to obtain a strong base of plan access so early in the launch demonstrates the strength of our clinical package and the value proposition that Amrosi offers to patients and payers.

Speaker #3: Additionally, on our first quarter earnings call, we announced that there were approximately 660 unique prescribers of Amrosi at the time. Today, I am pleased to report that we have now seen over 1,800 unique prescribers for Amrosi to date.

Claude Maraoui: Additionally, on our first quarter earnings call, we announced that there were approximately 660 unique prescribers of Amrosi at the time. Today, I am pleased to report that we have now seen over 1,800 unique prescribers for Amrosi to date. This is a testament to the effectiveness of our commercial team and the unmet need Amrosi is addressing. We are pleased with the progress that we have made in rapidly creating awareness for Amrosi and achieving the significant payer coverage, high unique prescriber count, and strong prescription ramp in a little over one quarter since promotion of the product began. As a result, we expect to build on this momentum, and the traction so far reinforces our confidence that Amrosi will generate high contribution margins and provide significant leverage toward our overall profitability and growth. Importantly, our established dermatology commercial organization offers significant leverage as we grow our product sales.

Speaker #3: This is a testament to the effectiveness of our commercial team and the unmet need Amrosi is addressing. We are pleased with the progress that we have made in rapidly creating awareness for Amrosi and achieving the significant payer coverage.

Speaker #3: High unique prescriber count and strong prescription ramp in a little over one quarter since promotion of the product began. As a result, we expect to build on this momentum and the traction so far reinforces our confidence that Amrosi will generate high contribution margins and provide significant leverage toward our overall profitability and growth.

Speaker #3: Importantly, our established dermatology commercial organization offers significant leverage as we grow our product sales. Our total operating expenses were mostly flat year over year.

Claude Maraoui: Our total operating expenses were mostly flat year over year, reflecting our higher gross profit margins and lower R&D costs. In addition, our cash management discipline resulted in a minimal cash use in the quarter, and as a result, we believe the company has the financial resources and is well-positioned to execute on our business plan through the end of 2025 and into the foreseeable future. During the second quarter, Amrosi gained additional visibility with the product being featured in a segment on the Balancing Act on Lifetime TV. Additionally, clinical data from our Phase III program evaluating Amrosi for the treatment of moderate to severe papulopustular rosacea in adults were presented at the Society of Dermatology Physician Associates, or the SDPA Summer Dermatology Conference in June. The data showed that Amrosi provides consistent relief of key rosacea symptoms with no adjustments needed from patients based on body weight.

Speaker #3: Reflecting our higher gross profit margins and lower R&D costs. In addition, our cash management discipline resulted in a minimal cash use in the quarter and as a result, we believe the company has the financial resources and is well positioned to execute on our business plan through the end of 2025 and into the foreseeable future.

Speaker #3: During the second quarter, Amrosi gained additional visibility with the product being featured in a segment on the balancing act on Lifetime TV. Additionally, clinical data from our Phase III program evaluating Amrosi for the treatment of moderate to severe papulopustular rosacea in adults were presented at the Society of Dermatology Physician Associates.

Speaker #3: Or the SDPA, Summer Dermatology Conference in June. The data showed that Amrosi provides consistent relief of key rosacea symptoms with no adjustments needed for patients based on body weight.

Speaker #3: Lastly, we were pleased to see Journey Medical's Comstock added to the small cap Russell 2000 and broad market Russell 3000 indexes. Broadening public awareness and institutional investor ownership of our shares.

Claude Maraoui: Lastly, we were pleased to see Journey Medical's common stock added to the small-cap Russell 2000 and broad market Russell 3000 indexes, broadening public awareness and institutional investor ownership of our shares. And just yesterday, we were honored to be in New York City to participate in the ringing of the closing bell for the NASDAQ exchange. We have achieved so much in recent months that it is hard to believe Amrosi has only been on the market a little over one quarter. Yet we believe the progress really speaks to the product's therapeutic value as the best-in-class oral rosacea treatment and its potential to become standard of care. Our dermatology-focused commercial team is committed to monetizing this important asset, and I believe that the execution on our launch progress so far is demonstrating our ability to take our company to new heights.

Speaker #3: And just yesterday, we were honored to be in New York City to participate in the ringing of the closing bell for the NASDAQ Exchange.

Speaker #3: We have achieved so much in recent months that it is hard to believe Amrosi has only been on the market a little over one quarter.

Speaker #3: Yet we believe the progress really speaks to the product's therapeutic value as the best-in-class oral rosacea treatment and its potential to become the standard of care.

Speaker #3: Our dermatology folks' commercial team is committed to monetizing this important asset and I believe that the execution on our launch progress so far is demonstrating our ability to take our company to new heights.

Speaker #3: I'll now turn the call over to our CFO, Joe Benesch, who will review the financial results for the second quarter.

Claude Maraoui: I'll now turn the call over to our CFO, Joe Benesch, who will review the financial results for the second quarter.

Speaker #4: Thank you, Claude, and good afternoon to everyone on the call. The total net revenue for the second quarter of 2025 was $15 million, compared to $14.9 million for the second quarter of 2024.

Joseph Benesch: Thank you, Claude, and good afternoon to everyone on the call. The total net revenue for the second quarter of 2025 was $15 million, compared to $14.9 million for the second quarter of 2024. The second quarter of 2025 includes $2.8 million incremental net product revenue related to the US commercial launch of Amrosi. This was offset by a decrease in Accutane revenue of $2.3 million, driven by generic competition. Our gross margin increased to 67% for the second quarter of 2025, and 61% in the prior period, below overall product cost of goods, mainly related to product sales mix, notably Amrosi and Accutane. R&D costs were nil in the second quarter of 2025, compared to $900,000 in the second quarter of 2024. The second quarter of 2024 included Amrosi pre-approval project expenses.

Speaker #4: The second quarter of 2025 includes $2.8 million of incremental net product revenue, related to the US commercial launch of Amrosi. This was offset by a decrease in Accutane revenue of $2.3 million driven by generic competition.

Speaker #4: Our gross margin increased to 67% for the second quarter of 2025, from 61% in the prior period. The lower overall product cost of goods mainly related to product sales mix, notably Amrosi and Accutane.

Speaker #4: R&D costs were nil in the second quarter of 2025, compared to $900,000 in the second quarter of 2024. The second quarter of 2024 included Amrosi pre-approval project expenses.

Speaker #4: Looking now at our SG&A expenses, SG&A increased by $1.6 million to $11.9 million for the second quarter of 2025, up from $10.3 million for the second quarter of 2024.

Joseph Benesch: Looking now to our SG&A expenses, SG&A increased by $1.6 million to $11.9 million for the second quarter of 2025, and $10.3 million for the second quarter of 2024. The increase is mainly due to the incremental operational activities related to the launch and commercialization of Amrosi. Continuing to our net loss for the periods, net loss to common shareholders was $3.8 million, or $0.16 per share basic and diluted for the second quarter of 2025, compared to a net loss to common shareholders of $3.4 million, or $0.17 per share basic and diluted for the second quarter of 2024. The second quarter of 2024 includes Amrosi pre-approval project expenses. We ended the second quarter of 2025 with $20.3 million in cash, compared to the same $20.3 million at December 31, 2024, which reflects minimal cash burn for the year-to-date period. Thank you very much.

Speaker #4: The increase is mainly due to the incremental operational activities related to the launch and commercialization of Amrosi. Continuing to our net loss for the periods, net loss to common shareholders was $3.8 million or 16 cents per share based and diluted for the second quarter of 2025.

Speaker #4: Compared to a net loss to common shareholders of $3.4 million, or 17 cents per share, based on diluted shares for the second quarter of 2024.

Speaker #4: The second quarter of 2024 includes Amrosi pre-approval project expenses. We ended the second quarter of 2025 with $20.3 million in cash. Compared to the same $20.3 million at December 31, 2024.

Speaker #4: Which reflects minimal cash burn for the year-to-date period. Thank you very much. I will now turn the call back over to Claude.

Joseph Benesch: I will now turn the call back over to Claude.

Speaker #3: Thank you, Joe. We delivered solid performance in the second quarter. With Amrosi leading the way. While it is still in the early days of the launch, prescription volumes have shown strong initial uptake and are expected to continue on this path.

Claude Maraoui: Thank you, Joe. We delivered solid performance in the second quarter, with Amrosi leading the way. While it is still in the early days of the launch, prescription volumes have shown strong initial uptake and are expected to continue on this path. We continue to educate physicians on Amrosi's best-in-class product profile through our marketing efforts, conference attendance, and data presentations. We are also continuing to leverage the favorable peer-reviewed article in JAMA Dermatology, highlighting the positive Phase III clinical results of Amrosi, as well as the updated treatment algorithms from the National Rosacea Society, citing Amrosi's utility in the treatment of rosacea, both of which were published earlier this year. These efforts are showing tangible results, with the number of unique prescribers nearly tripling since May.

Speaker #3: We continue to educate physicians on Amrosi's best-in-class product profile through our marketing efforts, conference attendance, and data presentations. We are also continuing to leverage the favorable peer-reviewed article in JAMA Dermatology highlighting the positive phase three clinical results of Amrosi as well as the updated treatment algorithms from the National Rosacea Society citing Amrosi's utility in the treatment of rosacea.

Speaker #3: Both of which were published earlier this year. These efforts are showing tangible results with the number of unique prescribers nearly tripling since May. Importantly, our strong early ramp and payer coverage are patient assistance program and the availability of Amrosi in the vast majority of dermatologists' preferred pharmacies also demonstrate our ability to execute on key launch tactics.

Claude Maraoui: Importantly, our strong early ramp in payer coverage, our patient assistance program, and the availability of Amrosi in the vast majority of dermatologists' preferred pharmacies also demonstrate our ability to execute on key launch tactics and ensure that patients receiving a prescription of Amrosi are able to get that prescription filled. Given our execution thus far and the initial traction we are seeing, we believe that we are on pace to achieve our launch objectives and facilitate Amrosi in becoming the standard of care in the treatment of rosacea. For the second half of the year, we remain focused on expanding the base of Amrosi prescribers, growing prescription volume, expanding payer access, and converting more of the prescription volume into revenue. We are confident that the prescription ramp for Amrosi will continue to build momentum and enable us to generate strong revenue growth going forward.

Speaker #3: And ensure that patients receiving a prescription of Amrosi are able to get that prescription filled. Given our execution thus far, and the initial traction we are seeing, we believe that we are on pace to achieve our launch objectives and facilitate Amrosi in becoming the standard of care in the treatment of rosacea.

Speaker #3: For the second half of the year, we remain focused on expanding the base of Amrosi prescribers, growing prescription volume, expanding payer access, and converting more of the prescription volume into revenue.

Speaker #3: We are confident that the prescription ramp for Amrosi will continue to build momentum and enable us to generate strong revenue growth going forward. This will enable us to further leverage our established dermatology infrastructure and our fixed costs.

Claude Maraoui: This will enable us to further leverage our established dermatology infrastructure and our fixed costs, increase our margins, and accelerate our path to profitability. In closing, I believe that we are well-positioned to achieve our core objectives, which are to improve the lives of patients, offer healthcare providers innovative treatment options, and create long-term value for our shareholders. Thank you, operator. We are now ready to open the lines for Q&A.

Speaker #3: Increase our margins and accelerate our path to profitability. In closing, I believe that we are well positioned to achieve our core objectives which are to improve the lives of patients, offer healthcare providers innovative treatment options, and create long-term value for our shareholders.

Speaker #3: Thank you. Operator, we are now ready to open the lines for Q&A.

Speaker #1: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touchdown phone.

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touchdown phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your questions, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question comes from the line of Thomas Flatten at Lake Street Capital Markets. Please go ahead.

Speaker #1: If you are using a speakerphone, please speak up your handset before pressing the keys. If at any time your question has been addressed, and you would like to withdraw your questions, please press star then two.

Speaker #1: At this time, we will pause momentarily to assemble our roster. The first question comes on the line of Thomas Flatten with Lake Street Capital Markets.

Speaker #1: Please go ahead.

Speaker #5: Good afternoon. I appreciate you taking the questions, and congrats on a solid Amrosi performance. Claude, you mentioned coverage being around 65%. What is your goal for the end of the year?

Thomas Flaten: Good afternoon. I appreciate taking the questions and congrats on a solid Amrosi performance. Claude, you mentioned coverage being, you know, 65% or so. What is your goal for the end of the year?

Speaker #3: So thanks, Thomas. Good, good to talk to you. the managed care and the payer percentage, I'm going to pass that along to Ramsey Alush, our CEO, to answer that.

Claude Maraoui: So thanks, Thomas. It's good to talk to you. The managed care and the payer percentage, I'm going to pass that along to Ramsay Aloosh, our CEO, to answer that.

Speaker #6: Hey, Thomas. Thanks, thanks for the question. So in terms of coverage, yeah, we, we did disclose that we're at a hundred plus million lives, about that 65% or so.

Ramsay Aloosh: Hey, Thomas. Thanks for the question. So in terms of coverage, yeah, we did disclose that we're at 100 plus million lives, about that 65% or so. We haven't publicly disclosed what that target is going to be. We are continuing to grow that. What I can tell you is that's the quantity side. So we're building out the framework. It covers, again, over 100 million lives. So that's access to the Amrosi drug. We're also working on the quality. So that's, you know, getting it on formulary, getting that implementation. That takes a bit more time as well, right? So it's a two-pronged approach. They run parallel. So we'll continue to increase the quantity coverage as the year goes on. But it's also equally as important to get the quality so we can convert that into revenue.

Speaker #6: we haven't publicly disclosed what that target is going to be. we are continuing to grow that. what I can tell you is that the quantity side, so we're building out the framework.

Speaker #6: it covers, again, over a hundred million lives, so that's access to the, to the Amrosi drug. we're also working on the quality. So that's, you know, getting it on formularies, getting that implementation.

Speaker #6: That takes a bit more time as well, right? So it's a two-pronged approach. They run parallel, so we'll continue to increase the quantity coverage as the year goes on.

Speaker #6: but it's also equally as important to get the quality so we can convert that into, into revenue. Awesome. Thank you for that. and then maybe one for Joe.

Thomas Flaten: Awesome. Thank you for that. And then maybe one for Joe. You know, I had a nice step up in gross margins. Can you just give us a sense of how you see that evolving over the course of the year? Should we, you know, assume incremental improvements in gross margin over the second half of the year?

Speaker #6: You know, I had a nice step up in gross margins. Can you just give us a sense of how you see that evolving over the course of the year?

Speaker #6: Should we, you know, should we assume incremental improvements in, in gross margin over the second half of the year?

Speaker #3: Yeah. thanks, Thomas. So, so thoughts mix is really the, the driver of, of, of the gross margin. You know, Amrosi is a very low-cost product.

Joseph Benesch: Yes. Thanks, Thomas. So the cost mix is really the driver of the gross margin. You know, Amrosi is a very low-cost product. So we expect this to continue. We believe it represents a reasonable baseline going forward. So as Amrosi becomes a larger percent of our margins, you know, with the sales mix, we expect the margins to improve.

Speaker #3: so we expect to, you know, this to continue. we believe it represents a reasonable baseline going forward. so as Amrosi becomes a larger percent of our margins, you know, with the sales mix, we expect the margins to improve.

Speaker #6: Got it. And then just one quick final one from me. What do you need to see, or at what point do you think you'll be comfortable giving guidance for the year?

Thomas Flaten: Got it. And then just one quick final one from me. What do you need to see, or at what point do you think you'll be comfortable giving guidance for the year and then, you know, looking into next year, certainly?

Speaker #6: and then, you know, looking into next year, certainly.

Speaker #3: Yeah. Thomas, you know, as, as you're aware, we just finished our first quarter right now. And it's really early in the start of a brand new launch.

Claude Maraoui: Yeah. Thomas, you know, as you're aware, we just finished our first quarter right now, and it's really early in the start of a brand new launch. So we're going to wait a few more quarters before we give hard guidance in that. So it's real early, and it's going to just take a little bit more time.

Speaker #3: So we're, we're going to, we're going to wait a few more quarters, before we give, hard, guidance in that. So it's, it's real early, and, it's going to just take a little bit more time.

Speaker #6: Got it. Appreciate it. Thank you, guys.

Thomas Flaten: Got it. Appreciate it. Thank you, guys.

Speaker #1: Thank you. Next question comes on the line of Scott Henry with AGP. Please go ahead.

Operator: Thank you. Next question comes from the line of Scott Henry with AGP. Please go ahead.

Speaker #7: Thank you. Good afternoon and, congratulations on a great start for Amrosi. it's been impressive. a couple questions. First, you know, if we just take the revenue for the quarter and divide it by the prescriptions, that generates a revenue per script of around $375 depending exactly what numbers you use.

Scott Henry: Thank you. Good afternoon, and congratulations on a great start for Amrosi. It's been impressive. A couple of questions. First, you know, if we just take the revenue for the quarter and divide it by the prescription, that generates a revenue per script of around $375, depending exactly what numbers you use. I think the expectation would be around perhaps $300 net revenue per script. Just curious, but there's a lot of noise in the early quarters. Just curious your thoughts on what we could expect for a net revenue per script, you know, given some of the data that you've seen over the past quarter.

Speaker #7: I think the expectation would be around perhaps $300 net revenue per script, just curious, but there's a lot of noise in the early quarters.

Speaker #7: Just curious, your, your thoughts on, on what we could expect for a, a net revenue per script, you know, given some of the data that you've seen over the past quarter.

Speaker #3: Yeah. Hi, Scott. I, I would tell you that I wouldn't recommend just doing a simple math on volume in the reported sales. we still have a significant proportion of scripts utilizing our patient assistance program and coupons.

Claude Maraoui: Yeah. Hi, Scott. I would tell you that I wouldn't recommend just doing that simple math on volume and the reported sales. We still have a significant proportion of scripts utilizing our patient assistance program and coupons, and there could be significant delays in reimbursement from payers. So at this point, we're not going to give guidance to that ASP.

Speaker #3: And, there can be significant delays in reimbursement from payers. So at this point, we're not going to give guidance to that ASP...

Speaker #7: Okay. No, that's, I mean, that makes sense. There'll be a little annoyed certainly in these first couple quarters. one of the other trends I, I wanted to get your thoughts on was how we should think about the summer seasonality for the rosacea market.

Scott Henry: Okay. No, that's, I mean, that makes sense. We'll be a little annoyed, certainly, in these first couple of quarters. One of the other trends I wanted to get your thoughts on was how we should think about the summer seasonality for the rosacea market. I mean, typically, derms see less patients in the summer. They're out in the sun. Their skin is drier. Do you think that that is correct, and perhaps that bodes well going into the fall months?

Speaker #7: I mean, typically, derms see less, less patients in the summer. You know, they're out in the sun, their skin is drier. do you think that, that is correct and, and perhaps that, that bodes well going into the fall months?

Speaker #3: I think the, the, the market has been stable. There is some seasonality with it to your point there. but overall, I, I would expect, you know, right now we are at a, at a good pace.

Claude Maraoui: I think the market has been stable. There is some seasonality with it, to your point there. But overall, I would expect, you know, right now we are at a good pace. Our ramp is moving along nicely. Week over week, month over month, we're seeing some really good growth because it is a brand new launch with Amrosi. So I don't think the seasonality is going to come into play much at all at this point. And I think as the product matures well into year two, three, I think that would become more of a factor.

Speaker #3: Our ramp is moving along nicely. We've overweighed month over month. We're seeing some really good growth because it is a brand new launch with Amrosi.

Speaker #3: So I, I don't think the seasonality is going to come into play much at all at this point. and I think, as, as the product matures, well into, year two, three, I think that would become more, of a factor.

Speaker #7: Yeah. I, I was thinking more that it could be a tailwind coming out of the summer. Meaning, you know, you're, you've got a good launch going.

Scott Henry: Yeah. I was thinking more that it could be a tailwind coming out of the summer, meaning, you know, you've got a good launch going in one of the tougher seasons, so that could be a nice tailwind when we get into the fall. But I appreciate your comments.

Speaker #7: In one of the tougher seasons, so that, that could be a nice tailwind when we get into the fall. but I appreciate your comments.

Speaker #3: No, I agree with that. Yeah.

Claude Maraoui: No, I agree with that. Yeah.

Speaker #7: Okay. Great. and then a final question just, could we get, Joe, maybe you could give us a, a number for Qbrexa? I mean, it looks like it was around 6.3 million.

Scott Henry: Okay. Great. And then a final question. Just could we get, Joe, maybe you could give us a number for Qubrexa. I mean, it looks like it was around 6.3 million?

Speaker #3: Oh, at the year or the quarter? Yeah.

Joseph Benesch: For what? The year or the quarter?

Speaker #7: For the quarter.

Scott Henry: For the quarter.

Speaker #3: Right. 6.9 for the quarter.

Joseph Benesch: 6.9 for the quarter.

Speaker #7: Okay. Great. Thank you for taking the questions.

Scott Henry: Okay. Great. Thank you for taking the questions.

Speaker #3: You're welcome.

Joseph Benesch: You're welcome.

Speaker #1: Thank you. Next question comes on the line of Mayank Mamtani, with B Riley Securities. Please go ahead.

Operator: Thank you. Next question comes from the line of Mayank Mamdani with BRLE Securities. Please go ahead.

Speaker #8: yes. Good afternoon, team. Thanks for taking the questions and congrats on the strong start to Amrosi launch. also, follow up to a prior question.

Thomas Flaten: Yes. Good afternoon, team. Thanks for taking the questions and congrats on the strong start to Amrosi launch. I'll also follow up to a prior question. The, you know, impressive NRX volume growth that we're seeing, trying to reconcile that with the sales you have here, 2.8 million, and then the 2.1 million stocking you had in 1Q. Can you maybe just give a little bit more color on how the payer rebating and also maybe any stocking dynamics we should be aware of? And then I have a follow-up.

Speaker #8: The, you know, impressive analytics say volume growth that we are seeing, trying to reconcile that with the sales you have here, 2.8 million, and then the 2.1 million, stocking you had in one queue.

Speaker #8: can can you maybe just give a little bit more color on the, how the payer dyna, payer rebating and also maybe any stocking dynamics we should be aware of?

Speaker #8: And then I have a follow-up.

Speaker #3: Yeah. I mean, I'll, I'll take, one part of that. The early when we first got our all of our inventory needed to, to launch the product successfully, we did do, a stocking of the channel, if you will, in Q1 late March of this year.

Claude Maraoui: Yeah. I mean, I'll take one part of that. Early when we first got all of our inventory needed to launch the product successfully, we did do a stocking of the channel, if you will, in Q1, late March of this year. And now you're just seeing the ramp picking up and just moving along in its cycle and the internal expectations that we've expected. In terms of the payer and the copay assistance program, that dynamic is going to change over the next several quarters and evolve. We expect as more managed care and the different plans sign up, we're going to have less utilization of the copay assistance program and more coming in through the managed care program. So that's evolving right now. And as we pick up volume with prescriptions, again, as we're seeing from month to month to month, that dynamic will change as well.

Speaker #3: and now you're just seeing the ramp picking up. And just moving along in its cycle and the, and the internal expectations that, we've expected.

Speaker #3: in terms of the payer and the, copay assistance program, that dynamic is going to change over the next several quarters and evolve. we expect, as more managed care and the different plans sign up, we're going to have less utilization of the copay assistance program and more coming in through the managed care program.

Speaker #3: So that's evolving right now. And as we pick up volume with prescriptions, again, as we're seeing, from month to month to month, that dynamic will change as well.

Speaker #6: Yeah. And just, just to add to that, the demand that's getting driven right now is really assisting us in our negotiations with managed care.

Ramsay Aloosh: Yeah. And just to add to that, the demand that's getting driven right now is really assisting us in our negotiations with managed care. We did announce, I think, in July that we signed up with one of the largest GPOs, and we are in late-stage discussions with the other two. But it does take time, right, for implementation with the plans, with the pharmacies to start to see that covered prescription volume go up. So, you know, we're monitoring that. We're working the channels top to bottom with the plans, right? There are a number of number of plans, so many. And we're being diligent with all of that. So again, it'll all convert to dollars. It just does take time. We launched, I think, April 7th. And so we're pleased with the progress that we've accomplished to date.

Speaker #6: we did announce, I think in July, that we signed up with one of the largest GPOs, and we are in late stage discussions with the other two.

Speaker #6: but it does take time, right, for implementation, with the plans, with the pharmacies, to start to see that covered prescription volume. go up. So, you know, we're monitoring that.

Speaker #6: We're working the channels, top to bottom, with the plans, right? There are a number of, number of plans, so many. and, and we're, we're being diligent with, with all of that.

Speaker #6: So, again, it'll all convert to dollars. It just, it does take time. We launched, I think, April 7th, and so I, we're, we're pleased with the progress that we've, we've accomplished to date.

Speaker #6: great, great. And then on the 10% market share that you report among high volume dermatologists, target initial segment, what's the, is there like a year-end goal that you have and, and, and, and are you able to share any you know, re early refill kind of adherence trends, for Amrosi and maybe put in context what we may have seen with the ratio when they launched?

Thomas Flaten: Great. And then on the 10% market share that you report among high-volume dermatologists' target initial segments, is there like a year-end goal that you have? And are you able to share any, you know, early refill kind of adherence trends for Amrosi and maybe put in context what we may have seen with the ratio when they launched? Thanks for taking our questions.

Speaker #6: thanks for taking our questions.

Speaker #3: Yeah. So, I'm going to speak in generalities here because, you know, we're just, we just haven't given guidance. And again, the launch is off to a great start, right?

Claude Maraoui: Yeah. So I'm going to speak in generalities here because, you know, we're just we just haven't given guidance. And again, the launch is off to a great start, right? We're three, four months into it now. So the 10% NRX in June is fantastic. We see that continuing to grow. In terms of NRX to TRX refills, we're seeing a strong uptake. And again, that is growing as well from month to month. I'm not going to give specific ratios quite yet on that. And then the NRX and TRX expectations, you know, if we continue going the way we are, we'll certainly meet all of our goals that we want and that Amrosi is delivering. I think the key is to take away, one, we went from 660 unique prescribers to well over 1,800 prescribers. These are prescribers that we targeted.

Speaker #3: We're, we're three, four months into it now. so the 10%, NRXs in, in June is fantastic. We see that continuing to grow. in terms of, NRX to TRX refills, we're str, we're seeing a strong uptake.

Speaker #3: And again, that is growing as well from month to month. I'm not going to give specific ratios quite yet on that. And then the NRX and TRX expectations, you know, if we continue going the way we are, we'll certainly meet all of our goals that we want.

Speaker #3: And, that Amrosi's delivering. I think the key is to take away one, we went from $660 unique prescribers to well over $1,800 prescribers. These are prescribers that we targeted.

Speaker #3: There were about 3,200 that we've looked at and have gone after. So we've done a great job in getting access to them and getting them to give a trial to the product Amrosi.

Claude Maraoui: There was about 3,200 that we've looked at and have gone after. So we've done a great job in getting access to them and getting them to give trial to the product, Amrosi. We're getting exceptional feedback in terms of how patients are responding when they come back in. And I think another dynamic that's important is that right now we are getting Amrosi filled, for the most part, with new patients coming in with rosacea. So that's really been what's been bringing this good, strong uptake. I think once they get really comfortable with that, we're hoping and expect to start seeing conversion from Oracea over to Amrosi. And lastly, Mayank, the launch of Oracea was, you know, 20 years ago. So it's very difficult for us, especially with the whole landscape of payers and managed care, to really look at that on the same playing field.

Speaker #3: We're getting exceptional feedback in terms of how patients are responding when they come back in. I think another dynamic that's important is that right now we are getting Amrosi filled, for the most part, with new patients coming in with rosacea.

Speaker #3: So that's really been what's been, been bringing this good, strong uptake I think once they get really comfortable with that, we're hoping and expect to start seeing conversion from or ratio over to Amrosi.

Speaker #3: And, lastly, Mayank, I, I the, the launch of or ratio was, you know, 20 years ago. So it's very difficult for us, especially with the whole landscape of, of payers and managed care, to really look at that, on the same playing field.

Speaker #3: So we're, we're not, we're not looking at that as, as a strong analog to consider.

Claude Maraoui: So we're not looking at that as a strong analog to consider.

Speaker #6: Fantastic. I'll have that in the queue. Thank you.

Operator: Fantastic. I'll hold back in the queue. Thank you. Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.