OptiNose(US:OPTN)2023-03-07 19:22Financial Data and Key Metrics Changes - In Q4 2022, XHANCE net revenue was $20.9 million, a decrease of 7% compared to Q4 2021's $22.5 million [94] - Full-year 2022 XHANCE net revenue was $76.3 million, an increase of 4% compared to the prior year [94] - Average net revenue per prescription for Q4 2022 was $242, an increase of 1% from $240 in Q4 2021 [95] - Full-year 2022 average net revenue per prescription was $224, reflecting a 2% increase from $219 in 2021 [96] - The company expects total operating expenses for 2023 to be between $90 million and $95 million, a reduction of approximately $30 million or 25% compared to $123 million in 2022 [12] Business Line Data and Key Metrics Changes - In Q4 2022, there were approximately 86,200 total prescriptions for XHANCE, an 8% decrease compared to Q4 2021 [90] - For the full year 2022, there were approximately 341,000 total prescriptions for XHANCE, a 2% increase compared to 2021 [90] - The market share of XHANCE was 5.7% in Q4 2022, down from 5.9% in Q4 2021 [91] - The number of physicians who had patients fill at least one prescription for XHANCE increased by 8% to 8,104 in Q4 2022, while the number of physicians with more than 15 prescriptions decreased by 8% to approximately 1,450 [92] Market Data and Key Metrics Changes - The INS market, which includes prescriptions written by any physician for any condition, increased by 4% over the same period [90] - The company believes that the new chronic sinusitis indication could increase the number of patients for whom XHANCE can be promoted by tenfold, as claims data suggests a significantly larger patient population diagnosed with chronic sinusitis compared to nasal polyps [3][4] Company Strategy and Development Direction - The company is refocusing its strategy to prioritize the potential launch of XHANCE as the first FDA-approved drug treatment for chronic rhinosinusitis [11][80] - The company plans to reduce total expenses while concentrating commercial investments on the most productive territories and programs [9] - The company is exploring various ways to reach a larger patient audience, including commercial partnerships and alternative selling models [81][84] Management's Comments on Operating Environment and Future Outlook - Management expressed dissatisfaction with the commercial results in 2022 and emphasized the importance of cash preservation for future investments [86] - The management believes that achieving the chronic sinusitis indication will be crucial for future value creation [18] - The company is actively planning for a successful launch aimed at rapidly making the product available to millions of patients in need [22] Other Important Information - The company has reduced its number of territory managers by approximately 15% at the end of 2022 [12] - The company expects first-quarter 2023 XHANCE net revenue to be approximately $10 million, reflecting a decrease due to expected increases in gross to net deductions and a decrease in units shipped [14] Q&A Session Summary Question: How quickly can you ramp the CS label uptake? - Management indicated that they are preparing for a successful launch and are actively engaging in conversations with potential partners to facilitate this [23][44] Question: What areas need the greatest change in commercial strategy? - Management stated that they are reevaluating all aspects of commercialization and focusing on improving prescription conversion rates and payer access strategies [26][100] Question: What is the urgency to find a primary care partner? - Management acknowledged the urgency to find a primary care partner to access a larger audience, emphasizing the potential benefits of such a partnership [48][55] Question: What is the expected cash burn in 2023? - Management indicated that they expect cash burn to be in the range of $30 million to $40 million for 2023 [120][121] Question: Why not consider a sale of the company? - Management is considering a range of strategic options, including partnerships and maintaining independence, while also evaluating the potential for M&A transactions [39]