Puma Biotechnology(PBYI) - 2020 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Puma reported total revenue for Q1 2020 of $51.2 million, which included license revenue of $2 million, royalty revenue of $0.6 million, and net sales of NERLYNX of $48.6 million. This represents a decline from $58.7 million in Q4 2019 but an increase of 6.7% from $45.6 million in Q1 2019 [7][28] - The company reported a GAAP net loss of $15.9 million or $0.43 per share for Q1 2020, compared to losses of $11.2 million and $16.9 million in Q4 and Q3 2019, respectively [28] - Non-GAAP net loss for Q1 2020 was $8 million or $0.20 per share [28] Business Line Data and Key Metrics Changes - NERLYNX net sales decreased from $58.7 million in Q4 2019 to $48.6 million in Q1 2020, with gross revenue from NERLYNX sales at $58 million in Q1 2020 compared to $68.5 million in Q4 2019 [28][29] - The percentage of new prescriptions using dose escalation techniques increased from 28.7% in Q4 2019 to 30.4% in Q1 2020 [14] - The number of NERLYNX prescribers increased by approximately 6.8% in Q1 2020 compared to Q4 2019 [13] Market Data and Key Metrics Changes - In Q1 2020, 9.3% of bottles sold were in the metastatic setting, up from 8.9% in Q4 2019 [41] - The company anticipates NERLYNX net sales for the fiscal year 2020 to be in the range of $215 million to $225 million, despite uncertainties due to COVID-19 [31] Company Strategy and Development Direction - Puma is focused on improving NERLYNX sales growth and has made key hires in its commercial team to enhance its market presence [37] - The company is exploring partnerships to expand NERLYNX availability globally, with recent approvals in China and plans for additional launches in Europe and Latin America [21][23] Management's Comments on Operating Environment and Future Outlook - Management expressed a conservative outlook regarding future sales trends due to uncertainties related to COVID-19, but remains optimistic about improved access to healthcare providers in the second half of 2020 [20][44] - The company is committed to addressing the unmet needs of women battling breast cancer and aims to enhance the effectiveness of its treatments [38] Other Important Information - Cash burn for Q1 2020 was approximately $11.6 million, with the company ending the quarter with $100.6 million in cash and marketable securities [35] - The gross to net adjustment in Q1 was about 16%, an increase from 14% in Q4 2019, primarily due to higher co-pay and coverage expenses [30] Q&A Session Summary Question: Metastatic revenue generated in Q1 - Management indicated that 9.3% of bottles sold in Q1 were in the metastatic setting, slightly up from Q4 [41] Question: Guidance and sales trends - Management maintained a conservative outlook due to COVID-19 but expects improved access in the latter half of the year to support sales growth [44] Question: Impact of COVID-19 on prescriptions - Management noted that while there is uncertainty, they have not observed a significant drop in insurance coverage due to unemployment spikes [84]