OptiNose(US:OPTN)2023-08-10 16:23Financial Data and Key Metrics Changes - In Q2 2023, OptiNose recognized $19.5 million in XHANCE net revenue, a decrease from $20.6 million in Q2 2022, but stronger than initial expectations for the quarter [26] - Total operating expenses, including SG&A and R&D, were $21.1 million in Q2 2023, a decrease of approximately $13 million or 38% compared to $33.8 million in Q2 2022 [26] - First half 2023 revenues were $31.3 million, exceeding initial expectations, leading to an increase in full-year revenue guidance to between $64 million and $70 million [27][33] Business Line Data and Key Metrics Changes - XHANCE prescription demand showed approximately 30,900 new prescriptions in Q2 2023, a 3% increase from Q2 2022, with total prescriptions reaching about 90,700, also a 3% increase [20][21] - The number of physicians prescribing XHANCE increased by 4% year-over-year, with 8,624 physicians having at least one prescription filled [21] - However, the number of physicians with more than 15 prescriptions filled decreased by approximately 6%, now at around 1,400 physicians [22] Market Data and Key Metrics Changes - The company anticipates that the approval of XHANCE for chronic sinusitis could increase the patient base for promotion by at least 10-fold, as chronic sinusitis is diagnosed significantly more frequently than nasal polyps [15][10] - The payer landscape has not materially changed regarding coverage for XHANCE, and the company expects similar coverage dynamics post-label expansion [41][43] Company Strategy and Development Direction - The company is focused on preparing for the potential launch of XHANCE as the first FDA-approved treatment for chronic sinusitis, with a strategic emphasis on reducing cash usage and increasing profitability [14][19] - OptiNose is exploring commercial partnerships to enhance outreach beyond its current specialty segment, aiming to build a profitable ENT and allergy-focused business [37][38] Management's Comments on Operating Environment and Future Outlook - Management expressed enthusiasm about the potential value of XHANCE and the expected growth starting in 2024, contingent on FDA approval [5][10] - The company is actively preparing for the launch, ensuring scalability in pharmacy distribution and refining healthcare provider targeting [56][58] Other Important Information - The FDA is currently reviewing the supplemental new drug application for XHANCE, with a target action date set for mid-December 2023 [12][18] - The company has reduced operating expenses by $22 million or 33% in the first half of 2023 compared to the same period in 2022 [31] Q&A Session Summary Question: Can you speak to the payer landscape and whether it's evolved recently? - Management indicated no material changes in the payer landscape regarding XHANCE coverage for nasal polyps, and they expect similar dynamics post-label expansion [41][43] Question: How do you expect net revenue per prescription to evolve with the upcoming expansion to chronic sinusitis? - Management noted that they do not have guidance for 2024 yet, but they expect revenue per prescription to be approximately $200 for the full year 2023, down from just below $220 in 2022 [45][50] Question: Can you provide additional color on the launch preparedness ahead of the label expansion? - Management highlighted a fresh product positioning approach, scalability of pharmacy distribution, and refining healthcare provider targeting as key components of their launch preparation [55][58]