EyePoint Pharmaceuticals(EYPT) - 2021 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For Q1 2021, total net revenue was $7.3 million, a decrease from $7.5 million in Q1 2020. Net product revenue was $6.8 million, up 45% from $4.7 million in Q1 2020 [20][21] - The net loss for Q1 2021 was $12.3 million, or $0.50 per share, compared to a net loss of $13.2 million, or $1.14 per share, in the prior year [21] - Cash and cash equivalents at March 31, 2021, totaled $138.6 million, significantly up from $44.9 million at December 31, 2020 [21] Business Line Data and Key Metrics Changes - Net product revenue for YUTIQ was $3.8 million and for DEXYCU was $3 million in Q1 2021, with customer demand for DEXYCU at approximately 7,000 units and for YUTIQ at 400 units [16] - The introduction of a new siliconized needle for YUTIQ is expected to enhance patient and physician experience [8][17] Market Data and Key Metrics Changes - The company reported a strong first quarter despite the ongoing challenges of the COVID-19 pandemic, with a 45% increase in net product revenues compared to the previous year [8][15] - The Asia partner, Ocumension Therapeutics, received approval for review of a new drug application for YUTIQ in China, indicating potential for future revenue streams [9] Company Strategy and Development Direction - The company aims to expand its product pipeline and drive growth for its commercial products, targeting profitability for DEXYCU and YUTIQ by year-end [9][18] - Plans to initiate studies for EYP-1901 in diabetic retinopathy and retinal vein occlusion are underway, with hopes to start these studies in late 2021 or early 2022 [7][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth of the Wet AMD market due to the aging population and the need for innovative treatment options [24] - The company remains focused on maintaining a strong balance sheet and disciplined spending to support its growth initiatives [9][21] Other Important Information - The company successfully completed a $115.1 million follow-on offering to strengthen its balance sheet [7] - The revenue covenant with CRG was reduced to $25 million at no cost, reflecting improved financial conditions [8][20] Q&A Session Summary Question: How will the Wet AMD space evolve over the next 5 to 10 years? - Management believes the demand will continue to grow due to the aging population and the prevalence of the disease, with a place for innovative drugs like EYP-1901 [24][25] Question: What are the opportunities in other retinal indications? - The company is evaluating studies in diabetic retinopathy and retinal vein occlusion, which are large patient populations [28] Question: Can you provide spending guidance for the year? - Q1 spending is a good run rate, with expectations for continued investment in clinical trials [30][31] Question: What is the status of the SEC investigation? - The SEC concluded its investigation with no intent to recommend enforcement action, which the company views positively [36][37] Question: What trends are seen in retinal specialists and ASCs? - Most cataract surgery centers are returning to normal, though some academic centers still face restrictions [38] Question: What is the expected efficacy of EYP-1901 compared to existing treatments? - Management believes that extended delivery could lead to better patient outcomes, although long-term studies are needed to confirm this [56]