Aytu BioPharma(US:AYTU)2019-05-14 18:52Financial Data and Key Metrics Changes - The company achieved an all-time high net revenue of approximately $2.4 million for the quarter ending March 31, 2019, representing a sequential growth of 33% and nearly 300% year-over-year [5][6][12] - Gross profit for Q3 2019 was $1.76 million, a 39% sequential increase from $1.27 million in Q2 [13] - The operating loss for Q3 2019 was $4.3 million, lower than the $4.6 million reported in Q2 and 43% lower than the same quarter last year [13] - The company ended the quarter with a cash balance of $14.75 million, down from $17.9 million at the end of Q2 [14] Business Line Data and Key Metrics Changes - Natesto continued to be the primary revenue driver, with revenue growth exceeding 380% year-over-year, supported by increased prescriptions and units shipped [7][8] - Tuzistra XR was launched through the sales force, with expectations for improved performance in the upcoming cough season [9][10] - ZolpiMist contributed solid revenue in its first full quarter with the sales force, and the company plans to shift focus towards ZolpiMist as the cough season winds down [9][10] Market Data and Key Metrics Changes - The company is expanding its distribution network for MiOXSYS, which is now used in over 30 countries, with approvals in Canada, the EU, Australia, and Mexico [10][11] - The partnership with SUDA Pharmaceuticals for ZolpiMist allows the company to benefit from sales outside the U.S. and Canada, with sublicensing deals already established in major markets [21] Company Strategy and Development Direction - The company aims to double revenues year-over-year and is focused on maintaining momentum with its product portfolio, particularly Natesto, ZolpiMist, and Tuzistra [5][16] - The management is optimistic about the upcoming cough season and expects to leverage the advantages of Tuzistra being a Schedule III product [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's current momentum and the potential for continued growth, particularly with the upcoming cough season and the performance of Natesto [5][16] - The company anticipates a more balanced portfolio in the future, with significant contributions expected from ZolpiMist and Tuzistra alongside Natesto [28] Other Important Information - The company eliminated all outstanding interest-bearing debt through an exchange transaction with Armistice Capital, enhancing its financial position [14] - The Natesto Spermatogenesis Study is progressing well, with interim data published indicating no adverse effects on fertility, which could position Natesto uniquely in the testosterone treatment market [17][19] Q&A Session Summary Question: Can you talk about the schedule for Tuzistra and its advantages? - Management highlighted that Tuzistra XR is classified as Schedule III, providing a significant market advantage over Schedule II products, making it easier for physicians to prescribe [24][26] Question: Can you discuss the expected product mix over the next several quarters? - Management expects Natesto to remain a significant revenue contributor, but anticipates a more balanced portfolio with meaningful contributions from ZolpiMist and Tuzistra [28][29] Question: What are the expectations for sequential growth? - Management does not provide specific guidance but expects continued strong growth year-over-year, with seasonal factors influencing quarterly dynamics [31] Question: Can you comment on sequential total prescription growth for Natesto? - Management confirmed strong sequential growth in prescriptions for Natesto, indicating a positive trend in sustaining therapy among patients [35] Question: What is the timing for the top-line readout of the Spermatogenesis Study? - The study is expected to wrap up in June/July, with results likely to be presented at a high-impact scientific conference [38]