Theratechnologies(THTX) - 2020 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported a 10% increase in consolidated revenues for Q2 2020, reaching $17.2 million, up from $15.6 million in the same quarter last year [10][34] - Trogarzo sales increased by 13.2% to $7.9 million compared to $7 million in Q2 2019, while EGRIFTA sales rose by 7.3% to $9.3 million [10][35] - The company recorded a net loss of $5.8 million or $0.08 per share, compared to a net loss of $3.2 million or $0.04 per share for the same period last year [40] Business Line Data and Key Metrics Changes - Trogarzo's net sales were up more than 13%, indicating strong performance despite operational challenges [10] - EGRIFTA sales showed a 7% increase, with the transition to EGRIFTA SV now mostly complete, allowing the company to focus on marketing EGRIFTA SV exclusively [34] Market Data and Key Metrics Changes - The company noted that the COVID-19 pandemic has created challenges in the U.S. market, particularly with shifting dynamics in states like Texas, Florida, and California [62] - The company is adapting its marketing strategies to include more webinars and educational programs to reach healthcare providers and patients [62][64] Company Strategy and Development Direction - The company aims to capitalize on the COVID-19 situation to instill a sense of urgency among physicians regarding the treatment of HIV patients who are not well-controlled [42] - There is a focus on educating healthcare providers about the serious nature of lipodystrophy, positioning it as a significant medical condition rather than a cosmetic issue [43][22] - The company plans to file a supplemental biologics license application for a new formulation of tesamorelin (F8) in early 2022, which offers greater convenience for patients [23] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the revenue growth achieved during challenging conditions, emphasizing the importance of continuing to build urgency in HIV treatment [42] - The company is optimistic about the potential for stronger growth in the latter half of 2020 as sales representatives resume traditional marketing activities [35] Other Important Information - R&D expenses increased to $3.6 million in Q2 2020, attributed to pipeline development and medical education activities [37] - The company has a strong financial position with $31.6 million in cash and bonds at the end of Q2 2020 [40] Q&A Session Summary Question: Regulatory path for NASH program and concerns about safety and efficacy - Management is monitoring the regulatory landscape and believes recent events have not significantly changed their path forward for the NASH program [48][49] Question: Updates on R&D spending and Trogarzo launch in EU - R&D spending is expected to increase as clinical programs are initiated, but specific details are not yet disclosed [53][54] - The reimbursement strategy for Trogarzo in Europe looks promising, with potential launches in Germany and Norway by the end of the year [56] Question: Sales impact in the U.S. due to COVID-19 - The company is adapting to the challenges posed by COVID-19 by increasing educational outreach through webinars and adjusting marketing strategies [62][64]