OptiNose(US:OPTN)2019-11-13 03:20Financial Data and Key Metrics Changes - The company reported XHANCE net revenues of $8.7 million in Q3 2019, a 30% increase over Q2 2019, with year-to-date revenues of $19.3 million [11][38] - The average net revenue per XHANCE prescription was $202 in Q3 2019, up from $197 in Q2 2019, with a year-to-date average of $194 [10][40] - The company tightened its full-year 2019 XHANCE net revenue guidance to a range of $30 million to $33 million, compared to the previous range of $29 million to $34 million [12][43] - Operating expenses for Q3 2019 were reported at $30.8 million, with a revised full-year expectation for total operating expenses now in the range of $126 million to $129 million [45][46] Business Line Data and Key Metrics Changes - The number of XHANCE prescriptions in Q3 2019 was nearly 43,000, representing a 27% increase over Q2 2019 and more than a fourfold increase compared to Q3 2018 [14][8] - The company noted that both new prescriptions and refills are growing, indicating strong interest from physicians and patients [8][17] Market Data and Key Metrics Changes - The share of intranasal steroid prescriptions written for XHANCE in the target audience increased from 0.9% in Q4 2018 to 3.4% in October 2019, suggesting significant growth potential [21][22] - The company reported an 18% month-over-month growth for October over September, indicating a strong start to Q4 2019 [16] Company Strategy and Development Direction - The company is focused on sustaining the growth of XHANCE and is evaluating areas to further accelerate this growth, including direct-to-consumer communication [23][24] - The company signed a license agreement for ONZETRA XSAIL, which is expected to provide incremental cash to support its ENT and allergy-focused strategy [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current commercial strategy, noting that the growth in prescriptions and net revenue is indicative of a large market with significant potential [50] - The company anticipates favorable seasonal market trends returning in Q4 2019 and expects continued growth from new territories and the seven-day sample program [18][19] Other Important Information - The company has a strong cash position of $125 million as of September 30, 2019, and expects to draw $30 million from Pharmakon financing in early 2020 [12][34] - The company is focused on expanding its market access and improving coverage, estimating that commercial coverage is approximately 75% [31][80] Q&A Session Summary Question: Can you provide more details on refill rates and competitive dynamics? - Management noted that refill rates are increasing month-over-month, indicating that the product is working well for patients. They do not believe there was significant impact from the introduction of Dupilumab on XHANCE prescriptions [56][60] Question: What is the status of the DTC pilot and the search for a new CCO? - The DTC pilot is expected to conclude soon, with results anticipated in early next year. Management is taking their time to find a suitable replacement for the CCO position [61][66] Question: Can you update on off-label use and the percentage of total scripts captured by IQVIA? - The majority of prescriptions are still written for chronic rhinosinusitis, with less than 25% for allergic rhinitis. IQVIA captures approximately 85% to 90% of total prescriptions [71][76] Question: What changes have occurred in the payer landscape? - Management reported consistent coverage levels, with approximately 75% to 80% commercial coverage, and noted ongoing efforts to improve government contracts [80][83] Question: What is the outlook for net revenue per prescription in 2020? - While specific guidance for 2020 was not provided, management expects a similar trend to 2019, with lower average net revenue per prescription in Q1 due to deductible resets, followed by gradual growth throughout the year [86][88] Question: How are new sales initiatives impacting the business? - Management is seeing positive contributions from new territory managers and the seven-day sample program, although it is difficult to quantify the exact impact of each initiative [92][94]