OptiNose(US:OPTN)2020-08-06 20:12Financial Data and Key Metrics Changes - OptiNose reported $10.3 million in net revenue for XHANCE in Q2 2020, with an average net revenue per prescription of $164, a nearly $40 increase from $126 in Q1 2020 [20][21] - Total prescriptions for XHANCE grew 84% year-over-year, with new prescriptions increasing by 20% compared to Q2 2019 [16][14] - The company maintained its financial guidance for operating expenses, expecting them to be between $131 million and $136 million for the full year 2020 [24] Business Line Data and Key Metrics Changes - XHANCE prescription volume continued to grow, with total prescriptions reaching approximately 62,500 in Q2 2020, reflecting an 84% growth over Q2 2019 [16][7] - New prescriptions for XHANCE were 18,700, a 20% increase compared to Q2 2019, while refill prescriptions surged to 43,800, a 139% increase year-over-year [14][15] - The number of physicians prescribing XHANCE increased by 40% year-over-year, with over 6,209 physicians having at least one patient fill a prescription [17] Market Data and Key Metrics Changes - XHANCE's market share increased from 2.2% in Q2 2019 to 5.6% in Q2 2020, marking the strongest share growth since its launch [12] - The company noted that despite COVID-19 disruptions, there remains significant headroom for additional growth in the XHANCE market [9] Company Strategy and Development Direction - The company announced a co-promotion partnership with kaleo to enhance promotional reach and frequency for XHANCE, targeting nearly 6,000 prescribers [8] - OptiNose is focused on growing XHANCE and building a leading ENT and allergy company, with plans to explore partnerships for future product development [68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of XHANCE despite COVID-19 challenges, noting that patient visits to ENT and allergy practices began to improve as public health restrictions lifted [7][11] - The company expects to see continued growth in prescriptions as patient volumes recover, particularly in the late summer and fall [60] Other Important Information - The company has a strong balance sheet with $125 million in cash as of June 30, 2020, which is expected to fund operations until at least the second half of 2021 [9] - OptiNose is developing a new program, OPN019, aimed at delivering an antiseptic to combat COVID-19, leveraging its proprietary nasal Exhalation Delivery System [26][28] Q&A Session Summary Question: Can you help quantify the components of the delta in net revenue per prescription? - Management explained that the lower starting point in 2020 was influenced by annual insurance deductible resets and the impact of the ASSIST program, which provided free prescriptions to patients [32][33] Question: Can you provide some color on the economics of the kaleo partnership? - The partnership will involve kaleo calling on approximately 6,000 physicians, with half being new customers and the other half already in the OptiNose universe, enhancing frequency of contact [36][38] Question: Can you elaborate on the patient funnel seen in July? - Management noted that patient volumes are down between zero and 25% depending on geography, but the category appears to be normalizing, which could lead to a tailwind in the second half of the year [41][42] Question: What are the expectations for adding new patients given modest recovery for in-house visits? - Management indicated that new prescriptions are returning to pre-pandemic levels, with physicians creating safe environments for patients to return to offices [54] Question: What is the long-term strategy regarding reimbursement for XHANCE? - Management stated that they have good access with 75%-80% commercial access and do not plan to be more aggressive on rebates, believing the product brings real value to payers [72][73]