Financial Data and Key Metrics Changes - For Q2 2019, net sales were $1.8 million, down from $2.8 million in the prior year period, primarily due to lower unit sales and a lower net selling price of Avenova [13] - Avenova sales were $1.6 million for the quarter, with a gross margin on net product revenue of 77%, compared to 83% for the same period last year [14][19] - Operating expenses decreased by 37% to $2.8 million from $4.4 million in the prior year period, reflecting a strategic shift in the U.S. commercial organization [15] Business Line Data and Key Metrics Changes - Avenova sales through the retail pharmacy channel were $1.3 million, accounting for 84% of total Avenova sales, while in-office direct channel sales were $209,000 [13] - Sales through the new Avenova Direct channel on Amazon.com contributed modestly, having launched in mid-June [14][11] - The partner pharmacy program accounted for 52% of all prescription Avenova units sold in Q2, up from 38% in Q1 [9] Market Data and Key Metrics Changes - The company expanded its partner pharmacy program to 16 partners, adding eight new partners since the beginning of the year [7] - The trend towards higher deductible health plans has necessitated increased usage of coupons and rebates to maintain Avenova's affordability [6] Company Strategy and Development Direction - The company is focused on making Avenova accessible and affordable while ensuring appropriate economics for NovaBay [12] - A new commercialization strategy aims to enhance patient experience and increase Avenova's accessibility [5] - The launch of CELLERX, a new topical solution, is planned for late 2019, targeting post-treatment care in aesthetic dermatology [26][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about Avenova's unique product positioning and its acceptance among medical professionals and patients [24] - The company expects to realize benefits from the reduction in force on operating expenses and anticipates a significant reduction in operating expenses from 2018 levels [23] - The outlook for 2019 net sales is projected to be in the range of $6 million to $8 million, with potential revisions as visibility improves [23] Other Important Information - The company reported a net loss of $2.5 million or $0.14 per share for Q2 2019, compared to a net loss of $1.6 million or $0.09 per share in Q2 2018 [19] - Cash and cash equivalents were $3.7 million as of June 30, 2019, with various funding activities completed throughout the year [22] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without further inquiries [32][34]
NovaBay(NBY) - 2019 Q2 - Earnings Call Transcript