Zevra Therapeutics(ZVRA) - 2020 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For Q4 2020, the company reported revenue of $2.4 million, an increase of $0.5 million compared to Q3 2020 [22] - The net loss for Q4 2020 was $4.9 million, or $1.07 per share, compared to a net loss of $6 million, or $2.90 per share, in Q4 2019 [24] - Full-year 2020 revenue was $13.3 million, up from $12.8 million in 2019, with a net loss of $12.8 million compared to $24.5 million in 2019 [26] Business Line Data and Key Metrics Changes - The revenue for Q4 2020 was primarily composed of services revenue under the Corium consulting arrangement [22] - R&D expenses for Q4 2020 were $3.1 million, while G&A expenses were $2.5 million, maintaining the same expense posture as previous years [25] Market Data and Key Metrics Changes - The ADHD market is valued at $17.5 billion, with the company believing its product can meet key advantages over existing methylphenidate-based products [18] Company Strategy and Development Direction - The company has completed a multi-phase financial restructuring, resulting in approximately $94 million in growth proceeds and the elimination of all debt [20][21] - The company aims to optimize the value of its product AZSTARYS and is exploring new assets for potential acquisition to create shareholder value [68][69] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the approval of AZSTARYS and its potential impact on the company's future [8][12] - The company believes there is a disconnect between its current market valuation and the potential value from the AZSTARYS approval [48][52] Other Important Information - The company regained its listing on the NASDAQ Capital Market in January 2021 and reported total cash of $77.6 million as of March 10, 2021 [30][31] Q&A Session Summary Question: Clarification on fully diluted shares outstanding after restructuring - The number of fully diluted shares outstanding is 38.6 million, including 9.6 million of preferred stock [36] Question: Current market cap and cash position - The current cash position is $77.6 million, with a market cap of approximately $283 million based on shares outstanding [39] Question: Commercialization plans for AZSTARYS - The company believes it has an excellent label for AZSTARYS and is confident in Corium's commercialization strategy [46] Question: Disconnect between current evaluation and potential value from AZSTARYS approval - Management encouraged investors to compare the labels of AZSTARYS with existing products to understand its potential market share [50][52] Question: Capital deployment and potential new assets - The company is looking at new assets that add value and will continue to support the development of its existing products [68][69]