Assertio Holdings (ASRT) Conference Summary Company Overview - Assertio Holdings is a specialty pharmaceuticals company with a market cap of approximately $70 million and shares trading at around 70¢ [2][4] - The company is focused on long-term growth and has a leadership team with extensive commercial experience in various therapeutic areas [5][6] Core Assets and Financial Performance - Assertio's core assets include Rovidone and SYMPAZAN, with Rovidone being a novel long-acting G-CSF approved in the last twenty years, targeting a market worth about $1 billion [8][9] - The company reported net sales of $26 million for the first quarter and maintains a positive adjusted EBITDA with a cash balance of nearly $90 million [9] - The financial outlook for the year includes projected net sales of $108 to $123 million and non-GAAP EBITDA of $10 to $20 million [10] Transformation and Growth Strategy - The company is in a transformation phase, simplifying its corporate structure and optimizing its asset portfolio, focusing on growth assets like Rovidone and SYMPAZAN [12][15] - Assertio aims to reduce legal exposure, which will allow for reinvestment into the business and positively impact EBITDA [13][14] - Business development is seen as a key enabler for future growth, with a focus on oncology, neurology, and rare diseases [14] Product Insights - Rovidone contributes over half of the total net sales and is expected to grow modestly this year, with plans to expand into the commercial segment by 2026 [19][21] - SYMPAZAN, an oral film formulation for Lennox Gastaut syndrome, is projected to grow to $13 million this year and has the potential to reach $25 million in the coming years [28] Competitive Landscape - The market for white blood cell stimulants is competitive, with Rovidone competing against biosimilars like Neulasta. Assertio is focused on managing average selling prices (ASP) smartly to sustain growth [23][24] Legal and Operational Improvements - Assertio has successfully reduced its litigation overhead, particularly related to opioid litigation, which has allowed for a cleaner balance sheet and operational focus [36][38] - The company has divested certain assets to streamline operations and eliminate legal distractions [38] Future Outlook - The CEO expressed optimism about the company's trajectory, aiming for significant growth and improved operational efficiency over the next year [41][42] - Assertio is positioned to explore mergers and acquisitions to enhance its portfolio, supported by a strong balance sheet with $40 million in convertible debt due in 2027 [34][35] Key Takeaways - Assertio is undergoing a transformation aimed at growth, with a focus on optimizing its asset portfolio and reducing legal distractions [12][15] - The company has a solid financial outlook and is strategically positioned to capitalize on growth opportunities in specialty pharmaceuticals [10][14] - Assertio's leadership is optimistic about future performance, with plans to enhance product offerings and expand market presence [41][42]

Core Viewpoint - Assertio Holdings, Inc. will be presenting at the virtual Alliance Global Partners Healthcare Company Showcase on May 21, 2025, highlighting its focus on patient needs in the pharmaceutical sector [1]. Company Overview - Assertio is a pharmaceutical company with comprehensive commercial capabilities, offering differentiated products aimed at addressing patients' needs [3]. - The company's primary focus areas include oncology, neurology, and pain management [3]. Event Details - Brendan O'Grady, the CEO of Assertio, will participate in a fireside chat that will be webcast live at 11:20 a.m. ET [2]. - Interested participants can register for the event through a provided link or visit the company's investor relations website [2].

Core Insights - Assertio (ASRT) reported a quarterly loss of $0.14 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.06, marking an earnings surprise of -133.33% [1] - The company's revenues for the quarter ended March 2025 were $26.49 million, missing the Zacks Consensus Estimate by 5.23% and down from $32.45 million a year ago [2] - Assertio shares have declined approximately 30% year-to-date, contrasting with the S&P 500's decline of -3.8% [3] Financial Performance - Over the last four quarters, Assertio has surpassed consensus EPS estimates only once [2] - The current consensus EPS estimate for the upcoming quarter is -$0.06 on revenues of $27.54 million, and for the current fiscal year, it is -$0.12 on revenues of $116.78 million [7] Market Outlook - The estimate revisions trend for Assertio is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] - The Medical - Drugs industry, to which Assertio belongs, is ranked in the top 27% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Assertio (ASRT) Q1 2025 Earnings Call May 12, 2025 04:30 PM ET Company Participants Matthew Kreps - Managing DirectorBrendan O’Grady - CEORaghuram Selvaraju - Managing Director, Healthcare Equity Research Conference Call Participants Thomas Flaten - Senior Research AnalystNaz Rahman - AnalystScott Henry - Managing Director & Senior Research AnalystJim Sidoti - Analyst Operator Good day, ladies and gentlemen. Welcome to the Associal Holdings First Quarter twenty twenty five Results Conference Call. Just a re ...

Financial Data and Key Metrics Changes - In Q1 2025, net product sales were $26 million, slightly ahead of expectations, compared to $31.9 million in the prior year quarter [5][13] - Adjusted EBITDA for Q1 was $200,000, down from $7.4 million in the prior year quarter, primarily due to lower net sales and gross margin [16] - GAAP net income for Q1 was a loss of $13.5 million, compared to a loss of $4.5 million in the prior year [16] Business Line Data and Key Metrics Changes - ROLVOIDON sales were $13.1 million, down from $14.5 million in the prior year, impacted by lower pricing but partially offset by higher volume [13] - SYMPAZAN sales decreased to $2.2 million from $2.6 million, affected by pricing and volume [14] - Indocin net product sales were $5.5 million, down from $8.7 million, due to generic competition [13] Market Data and Key Metrics Changes - The demand for ROLVOIDON remains strong, with expectations for net sales to continue increasing throughout the year [6] - The promotional strategy for SYMPAZAN has shown effectiveness, with total prescriptions up 6.5% year over year [6] Company Strategy and Development Direction - The company is in the transformation phase of its three-phase strategy, focusing on reducing legal exposure, simplifying corporate structure, prioritizing growth investments, divesting non-core assets, and leveraging its balance sheet for strategic transactions [8][9] - The growth phase is expected to begin in 2026, aiming to establish the company as a leading specialty pharma entity [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sustainable near-term growth and increasing long-term value, despite challenges from generic competition and pricing pressures [18] - The company is optimistic about ongoing conversations for strategic transactions that could enhance its business [44] Other Important Information - The company has settled multiple legal matters, including significant lawsuits, which is expected to reduce legal costs and refocus resources on business operations [9][10] - As of March 31, 2025, cash and investments totaled $87.3 million, down from $100.1 million at the end of 2024 [16] Q&A Session Summary Question: Was there any value movement regarding the opioid litigation matters? - The company received nominal value in the settlement [20] Question: How should cash be used to bring down accrued liabilities? - The company expects to manage this relatively evenly throughout the year, primarily driven by ROLVOIDON's ASP-based pricing [21] Question: Any updates on same-day dosing progress with NCCN? - The company is on track for a publication in a peer-reviewed journal and plans to approach NCCN for inclusion in guidelines for 2026 [23][24] Question: Progress on expanding ROLVOIDON into the hospital setting? - The company is focusing on building payer coverage to unlock commercial channels and penetrate hospitals [29] Question: Why maintain the adjusted EBITDA guidance despite Q1 results? - The company believes there are still too many variables to adjust the guidance down at this time [30] Question: Expectations for Indocin's generic competition? - The company anticipates two more generics entering the market this year, which will impact revenue [39] Question: Any updates on strategic business development opportunities? - The company is optimistic about ongoing positive conversations for potential strategic transactions in 2025 [44] Question: Impact of tariffs and drug pricing changes? - The company does not foresee immediate risks from tariffs or drug pricing changes, as it primarily sells within the U.S. [57][59] Question: Confirmation of revenue guidance post-divestiture? - The company confirmed it is maintaining its revenue guidance of $108 million to $122 million [61]

Financial Performance - ROLVEDON net product sales decreased by $1.4 million from $14.5 million in Q1 2024 to $13.1 million in Q1 2025, primarily due to lower net pricing, partially offset by higher volume [125]. - Total revenues for Q1 2025 were $26.5 million, down from $32.4 million in Q1 2024, reflecting a decrease of approximately 18.2% [124]. - Loss from operations increased to $13.2 million in Q1 2025 compared to a loss of $4.3 million in Q1 2024 [124]. - INDOCIN net product sales decreased by $3.1 million from $8.7 million in Q1 2024 to $5.5 million in Q1 2025 due to lower volume and pricing from generic competition [126]. - Sympazan net product sales decreased by $0.4 million from $2.6 million in Q1 2024 to $2.2 million in Q1 2025, primarily due to unfavorable payor mix and lower volume [127]. Expenses - Cost of sales decreased from $11.2 million in Q1 2024 to $7.8 million in Q1 2025, a reduction of approximately 30.0% [124]. - Selling, general and administrative expenses rose to $22.0 million in Q1 2025 from $18.5 million in Q1 2024, an increase of approximately 19.8% [124]. - Amortization of intangible assets increased significantly from $5.6 million in Q1 2024 to $9.2 million in Q1 2025, reflecting a rise of approximately 63.5% [124]. - Research and development expenses were $0.4 million in Q1 2025, down from $0.7 million in Q1 2024, reflecting reduced costs associated with ongoing clinical activity for ROLVEDON [134]. - Selling, general and administrative expenses increased by $3.5 million from $18.5 million in Q1 2024 to $22.0 million in Q1 2025, driven by higher legal charges [136]. - Amortization of intangible assets increased by $3.6 million from $5.6 million in Q1 2024 to $9.2 million in Q1 2025, primarily due to changes in estimated useful lives of ROLVEDON and INDOCIN [137]. Cash Flow and Working Capital - Cash and cash equivalents totaled $87.3 million as of March 31, 2025, expected to be sufficient for operations and debt payments over the next 12 months [146]. - Net cash used in operating activities was $12.5 million in Q1 2025, compared to net cash provided of $7.5 million in Q1 2024 [151]. - Cash used in operating activities was $12.5 million for Q1 2025, a decrease from cash provided of $7.5 million in Q1 2024, primarily due to lower net product sales and higher expenses [152]. - Net working capital was a net use of cash of $10.1 million in Q1 2025, compared to a net cash provided of $3.6 million in Q1 2024, reflecting a $13.7 million change [152]. - Cash used in investing activities was $2.9 million in Q1 2025, consisting of $31.4 million in purchases of short-term investments, offset by $28.5 million from maturities [155]. - Cash used in financing activities was $0.1 million in Q1 2025, slightly down from $0.2 million in Q1 2024, related to employee stock awards [156]. Tax and Accounting - The company recorded an income tax expense of $0.2 million in Q1 2025, compared to $0.1 million in Q1 2024, with a full valuation allowance against net deferred tax assets [144]. - There were no material changes to the company's cash requirements from contractual obligations since the last filing [157]. - Critical accounting policies related to revenue recognition and impairment of long-lived assets remain unchanged since the last filing [158]. - The company is classified as a smaller reporting company and is not required to provide additional market risk disclosures [159]. Product and Market Strategy - ROLVEDON is indicated to decrease the incidence of infection in adult patients receiving anti-cancer drugs, targeting both hospitals and community oncology clinics [118]. - The company acquired ROLVEDON through a merger with Spectrum Pharmaceuticals on July 31, 2023, enhancing its product portfolio [118]. - The company is focusing on expanding its commercial capabilities through a patient-centric approach and omni-channel promotional model [121]. - The company anticipates that the average sales price for ROLVEDON will be negatively impacted in the remainder of 2025 due to increased discounts and rebates [125]. Restructuring - Restructuring charges were $0.3 million in Q1 2025, down from $0.7 million in Q1 2024, related to efficiency improvements in the sales and marketing department [141].

Financial Performance - Total net product sales for the first quarter of 2025 were $26.0 million, down from $31.9 million in the same quarter of 2024, reflecting a decrease of approximately 18.3% year-over-year[5] - Rolvedon net sales were $13.1 million, a decrease from $14.5 million in the prior year quarter, driven by lower pricing, partially offset by higher volume[8] - Indocin net product sales were $5.5 million, down from $8.7 million in the prior year quarter, due to generic competition affecting both volume and pricing[8] - The company reported a net loss of $13.5 million for the first quarter of 2025, compared to a net loss of $4.5 million in the same quarter of 2024[5] - Adjusted EBITDA for the first quarter was $0.2 million, a significant decrease from $7.4 million in the prior year quarter, primarily reflecting lower net product sales[8] - Adjusted EBITDA for the three months ended March 31, 2025, was $158,000, down from $7,379,000 in the same period of 2024, showing a decline of approximately 97.9%[22] Expenses and Costs - Selling, general and administrative expenses increased to $22.0 million from $18.5 million in the prior year quarter, primarily due to higher legal charges[8] - The company incurred stock-based compensation expenses of $1,101,000 for the three months ended March 31, 2025, slightly down from $1,207,000 in the same period of 2024[22] Cash and Investments - Cash, cash equivalents, and short-term investments totaled $87.3 million as of March 31, 2025, down from $100.1 million as of December 31, 2024[8] - Cash and cash equivalents decreased to $35,004,000 at the end of the period, down from $50,588,000 at the beginning of the year, representing a decrease of about 30.7%[21] - The company reported a net cash used in operating activities of $12,538,000 for the three months ended March 31, 2025, compared to net cash provided of $7,508,000 in the same period of 2024[21] Assets and Liabilities - Total current assets increased to $213,550,000 as of March 31, 2025, up from $202,549,000 as of December 31, 2024, reflecting a growth of about 5.0%[19] - Total liabilities rose to $177,896,000 as of March 31, 2025, compared to $163,651,000 as of December 31, 2024, indicating an increase of approximately 8.7%[19] - The company’s total current liabilities increased to $128,832,000 as of March 31, 2025, compared to $114,688,000 as of December 31, 2024, indicating an increase of approximately 12.3%[19] - The total shareholders' equity decreased to $108,530,000 as of March 31, 2025, down from $121,081,000 as of December 31, 2024, reflecting a decline of about 10.4%[19] Strategic Focus - The company is prioritizing investment in growth assets and divesting declining or non-core assets as part of its long-term business strategy[2] - The company has settled multiple legal matters, reducing future legal costs and focusing resources on the business[4] Accounts Receivable - The company experienced a significant increase in accounts receivable, net, which rose to $66,292,000 as of March 31, 2025, compared to $54,120,000 as of December 31, 2024, marking an increase of approximately 22.5%[19]

Core Insights - Assertio Holdings, Inc. reported first quarter total net product sales of $26.0 million, aligning with its 2025 outlook for sustainable growth and increased long-term value [1][2] - The company is focused on reducing legal exposure, simplifying corporate structure, prioritizing growth investments, and divesting non-core assets as part of its transformation strategy [2][5] Financial Performance - Net sales for the first quarter were $26.0 million, down from $31.9 million in the same quarter last year, with a net loss of $13.5 million compared to a loss of $4.5 million in the prior year [4][11] - Adjusted EBITDA was $0.2 million, significantly lower than $7.4 million in the previous year, primarily due to decreased net product sales and increased costs associated with higher Rolvedon volumes [4][11] - Rolvedon net sales were $13.1 million, a decrease from $14.5 million year-over-year, while Sympazan prescriptions increased by 6.5% year-over-year [3][11] Legal and Corporate Developments - The company settled multiple legal matters, including a DOJ False Claims Act lawsuit and an antitrust action, which is expected to reduce future legal costs [5] - Assertio has begun simplifying its corporate structure by transferring interests in its subsidiary Assertio Therapeutics, which held approximately $8.2 million in cash and certain legal liabilities [5] Balance Sheet and Cash Flow - As of March 31, 2025, Assertio had cash, cash equivalents, and short-term investments totaling $87.3 million, down from $100.1 million at the end of 2024 [12] - The company reported a net cash used in operating activities of $12.5 million for the quarter, compared to a net cash provided of $7.5 million in the same period last year [22] Strategic Focus - Assertio is reallocating resources to focus on growth assets, particularly Rolvedon and Sympazan, while progressing towards divesting non-core assets [5][11] - The management plans to host a conference call to discuss the financial results and provide further details on the corporate strategy for 2025 [7]

Core Viewpoint - Assertio Holdings, Inc. is set to release its first quarter 2025 financial results on May 12, 2025, after market close, followed by a live webcast conference call to discuss the results and update on strategic plans for 2025 [1]. Group 1 - The financial results announcement is scheduled for May 12, 2025, after market close [1]. - A live webcast conference call will take place at 4:30 p.m. Eastern Time on the same day [1]. - The company encourages participants to connect at least 10 minutes prior to the webcast for any necessary software downloads [2]. Group 2 - Assertio is a commercial pharmaceutical company with capabilities in marketing, market access, and distribution [4]. - The company has built its commercial portfolio through acquisitions or licensing of approved products [4]. - For more information about Assertio, the company’s website is provided [4].

Group 1 - Assertio Holdings, Inc. will present at the iAccess Alpha Best Ideas Spring Investment Conference on March 25, 2025, at 1:30 pm Eastern Time [1] - Investors can request one-on-one meetings on March 26, 2025, through conference representatives or Assertio investor relations [2] - Assertio is a pharmaceutical company focused on oncology, neurology, and pain management, offering differentiated products to meet patient needs [3]