TherapeuticsMD(US:TXMD)2020-05-06 19:41Financial Data and Key Metrics Changes - Total net revenue for Q1 2020 was $12.3 million, exceeding Wall Street consensus of $11.4 million, marking the fourth consecutive quarter of beating expectations [8][9]. - Quarterly net revenue decreased from the previous quarter due to the initial distribution build for ANNOVERA in Q4 2019 [8]. - Operating expenses for Q1 were $57.5 million, which included a one-time expense related to the ANNOVERA launch [25][26]. Business Line Data and Key Metrics Changes - ANNOVERA achieved net revenue of $1,350 per unit with a 100% adjudication rate, and 77% of patients had zero co-pay [11]. - IMVEXXY generated net revenue of $6.4 million with 134,000 total prescriptions sold, and the net revenue per unit was approximately $48 [14]. - BIJUVA had net revenue of approximately $1.1 million with around 26,000 prescriptions, showing growth despite a decline in net revenue per unit to $43 [16]. Market Data and Key Metrics Changes - ANNOVERA has gained Medicaid coverage in 37 states, representing 15% of the contraceptive market opportunity [19]. - IMVEXXY maintained a 72% access rate for the commercial book of business, with no major Medicare Part D payor additions in Q1 [20]. - BIJUVA advanced Medicaid access with 21 states now unrestricted, maintaining a commercial access rate of 54% [21]. Company Strategy and Development Direction - The company is focusing on ANNOVERA and IMVEXXY while pausing promotional activities for BIJUVA to reduce costs and reallocate resources [6][22]. - A consumer campaign called "UNAPOLOGETICALLY ANNOVERA" is planned for early Q3 to drive growth [24][33]. - The company aims to achieve EBITDA breakeven in 2021 through strategic cost containment and resource allocation [44]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the challenges posed by COVID-19 and expects to regain access to providers' offices by early Q3 [23][90]. - The company anticipates a revenue impact in Q2 due to COVID-19 but expects to return to a growth trajectory in early Q3 [24][90]. - Management highlighted the potential for increased Medicaid enrollment due to job losses from COVID-19, which could benefit their product offerings [8]. Other Important Information - The company has opened discussions with TPG Sixth Street Partners regarding potential adjustments to revenue covenants due to COVID-19 [28][29]. - ANNOVERA received its first Orange Book listed patent, providing protection until 2039 [38]. Q&A Session Summary Question: Could you provide more color regarding your revenue covenants? - The company is in active discussions to defer the start of quarterly revenue covenants into 2021, but no further details were provided [47][49]. Question: What are your OpEx expectations for this year? - The company plans to reduce overall operating expenses by approximately 20%, aiming for $40 million or less per quarter [48][50]. Question: What percentage of your existing patient base has converted to telemedicine? - The company has been working with online partners and has seen significant growth in telemedicine, although specific conversion rates were not disclosed [56][58]. Question: Can you discuss the dynamics in the ring market given COVID-19? - The company believes that COVID-19 has created favorable conditions for ANNOVERA, as it offers a long-acting contraceptive option during a time when elective procedures are limited [80]. Question: What is the status of Part D payers for IMVEXXY? - The company has not added any major Part D payers yet, attributing the delay to COVID-19, but remains optimistic about future additions [97][99]. Question: When will you decide to refocus on BIJUVA? - The decision to refocus on BIJUVA will depend on growth trajectories and the upcoming PDUFA date for a second dose [100]. Question: Can you update on the durability of IMVEXXY and ANNOVERA? - ANNOVERA has strong patent protection with additional patents filed, while IMVEXXY is facing a generic filer, but the company remains confident in its product's value [101].