Financial Data and Key Metrics Changes - Consolidated net revenue for Q3 2019 was $12.9 million, a 16% increase compared to Q3 2018 and an 18% sequential growth from Q2 2019 [6][19] - U.S. net revenue was approximately $8.7 million, up 2% from $8.5 million in Q3 2018 and up 19% sequentially from Q2 2019 [20] - International segment revenue increased 62% to approximately $4.2 million compared to $2.6 million in Q3 2018 [21] - Net loss for Q3 2019 was approximately $3.1 million, a decrease from a net loss of approximately $3.5 million in Q3 2018 [23] - Cash and cash equivalents decreased to approximately $7.9 million from $13 million at the end of 2018 [25] Business Line Data and Key Metrics Changes - U.S. end-user demand was essentially flat, with a slight decrease to 973 units compared to 977 units in Q3 2018 [20] - The international segment's growth was driven by expansion into new markets, particularly France and Spain, which contributed significantly to revenue [10] Market Data and Key Metrics Changes - France ranked first in monthly end-user demand for ILUVIEN across all international markets in Q3 2019 [10] - The company expanded its agreement with Horus Pharma to sell ILUVIEN in the Benelux countries, targeting approximately 70,000 patients suffering from DME [10] Company Strategy and Development Direction - The company aims to leverage its global sales infrastructure to build a leading company dedicated to retinal physicians and their patients [30] - The focus is on driving the message of ILUVIEN's unique benefits in treating DME and posterior uveitis, emphasizing its continuous micro-dosing technology [13][15] - The company is exploring potential acquisitions to strengthen its portfolio, particularly in the retina space [44] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory, expecting to generate breakeven to positive adjusted EBITDA moving forward [23] - The company anticipates that the collection of receivables and business growth will lead to neutral to positive cash flow from operations in the next two quarters [26] - Management highlighted the importance of the recent label approval for ILUVIEN in treating posterior uveitis, which is expected to drive future sales [11] Other Important Information - The company announced a $20 million common stock purchase agreement with Lincoln Park Capital Fund, providing flexibility for future capital needs [26] - The company is positioned as the 10th largest ophthalmology company based on 2018 revenue, with a unique focus on retinal diseases [30] Q&A Session Summary Question: What was the cash flow from operations and CapEx for the quarter? - Cash flow from operations in Q3 was a burn of $3.9 million, with CapEx at $110,000 [35] Question: What is the current status of the sales force? - The sales team has improved over the quarter, with some newer representatives leading in sales [33][34] Question: Are there benefits from OZURDEX shortages? - Management noted that they have not seen a significant impact from OZURDEX shortages yet, as larger accounts have stocked up [37] Question: What is the status of the Canadian market? - The Canadian partner is still working on pricing and reimbursement, with no updates expected until next year [41] Question: What is the guidance for the fourth quarter? - Management expects growth to remain consistent with the 16% year-to-date growth, absent the one-time revenue from OZURDEX last year [57]
Alimera Sciences(ALIM) - 2019 Q3 - Earnings Call Transcript