Kala Pharmaceuticals(KALA) - 2021 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - As of March 31, 2021, the company's cash position was $156 million, an increase from $153.5 million as of December 31, 2020, primarily due to net proceeds of $34.7 million from sales of common stock [31] - Net product revenues for Q1 2021 were $3.3 million, with $1.63 million from INVELTYS and $1.64 million from EYSUVIS, marking an increase of approximately $500,000 in INVELTYS sales compared to Q1 2020 [33] - The net loss for Q1 2021 was $30.4 million, or $0.49 per share, compared to a net loss of $22 million, or $0.54 per share, for the same period in 2020 [36] Business Line Data and Key Metrics Changes - EYSUVIS has filled over 11,600 prescriptions written by more than 2,000 unique prescribers since its launch in early January 2021 [14] - Approximately 50% of EYSUVIS prescriptions are for treatment-naive patients who had not previously been on prescription therapy for dry eye disease [15][52] - INVELTYS prescriptions totaled approximately 37,000 in Q1 2021, down from 41,000 in Q4 2020, reflecting the ongoing impact of the pandemic on the ocular surgery market [25] Market Data and Key Metrics Changes - The company has secured coverage for approximately 43% of commercial lives, totaling around 69 million lives, for EYSUVIS within four months of its launch [17] - The company anticipates that elective ocular surgeries are returning to pre-COVID levels, which is expected to positively impact INVELTYS sales [10] Company Strategy and Development Direction - The company is focused on ensuring the commercial success of EYSUVIS and INVELTYS while advancing a pipeline of innovative new chemical entities (NCE) targeting front and back of the eye diseases [10][11] - A new credit facility of up to $125 million has been established, enhancing the company's cash runway and allowing for continued investment in operations and product development [12][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the early feedback from the EYSUVIS launch and the anticipated growth in elective ocular surgeries as vaccination rates increase [10][40] - The company expects to fund operations for at least the next two years based on current cash resources and anticipated revenues from EYSUVIS and INVELTYS [30] Other Important Information - The company plans to expand its sales force from 91 to approximately 105 representatives by the start of Q3 2021, with further expansion to about 125 representatives by the end of 2021 [23] - The company is actively working to secure additional payer coverage for EYSUVIS, which is seen as a key driver for prescription growth [44] Q&A Session Summary Question: Trends in cataract surgeries and confidence in recovery - Management noted that surgical volume is currently around 80% of pre-COVID levels, with expectations for a return to full capacity by year-end due to vaccine rollouts [40] Question: Confidence in EYSUVIS contracting and payer coverage - Management expressed confidence in securing additional contracts and expanding commercial coverage throughout the year, which is crucial for prescription growth [44] Question: Breakdown of prescriptions between ophthalmologists and optometrists - Approximately 55% of prescriptions are generated by optometrists, with 45% from ophthalmologists, reflecting the treatment patterns for dry eye patients [50][84] Question: Impact of COVID on new patient starts for EYSUVIS - Management indicated that there has been a gradual recovery in new patient starts for EYSUVIS, with improved access to eye care professionals as vaccination rates increase [83] Question: Usage of the patient access program and co-pay card - About half of the prescriptions are being filled using the co-pay card, indicating a significant uptake of the patient access program [72]