BioCryst Pharmaceuticals(BCRX) - 2025 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $163.4 million, with $156.8 million coming from Orlodayo, representing a 45% year-over-year growth in quarterly revenue [22][23] - Non-GAAP operating expenses were $106.4 million, up from $87.4 million in 2024, while non-GAAP operating profit was $57 million and non-GAAP net income was $32.3 million, resulting in a non-GAAP EPS of $0.15 [23][24] - The company generated $45 million in cash during the quarter and paid down $75 million in principal from its term loan in April and an additional $50 million in July, reducing term debt to $199 million [24] Business Line Data and Key Metrics Changes - Orlodayo had its best quarter since approval, with new patient prescriptions up over 10% compared to Q1 2021 and over 15% compared to Q1 2025, leading to revenue exceeding expectations by over $22 million [15][16] - The increase in Orlodayo revenue was attributed to a spike in new patient demand, improved efficiency in paid shipments, lower discontinuation rates, and strong international results [15][16] Market Data and Key Metrics Changes - The U.S. accounted for almost 90% of Orlodayo revenue, with $140.3 million generated in the U.S. alone [22] - There was an uptick in new U.S. prescribers, increasing from 59 in Q1 to 69 in Q2, indicating growing confidence among physicians [18] Company Strategy and Development Direction - The company plans to leverage its commercial capabilities to become a consolidator of rare disease assets, aiming to bring multiple products to market [12][28] - A definitive agreement was signed to sell the European business to Neo Pharma, which is expected to strengthen the company's financial position and allow for debt repayment [11][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaching the upper half of the revenue guidance of $580 million to $600 million for the full year, even after removing European revenue post-sale [16] - The management highlighted the importance of real-world evidence in building physician confidence and driving long-term growth [18][20] Other Important Information - The company anticipates data from its Netherton Syndrome and DME pipeline programs by the end of the year [10][28] - The transition to new leadership was discussed, with Charlie Gayer set to become the next CEO, emphasizing the company's readiness for the next growth phase [12][13] Q&A Session Summary Question: What contributed to the 45% year-over-year growth in Orlodayo revenue? - The growth was attributed to a mix of volume increase, better paid rates, and improved efficiency in paid shipments [30][31] Question: What are the current discontinuation rates? - The one-year discontinuation rate remains at 60%, with a slight downward trend in overall discontinuation rates as the patient base grows [35][36] Question: How does Orlodayo's persistency compare to other injectable prophylactic regimens? - Orlodayo's one-year persistence rate is statistically similar to other products, with about 60% for all [40][41] Question: How are recent approvals affecting Orlodayo demand? - There has been no negative impact on Orlodayo demand from recent approvals, with new patient prescriptions at an all-time high [45][46] Question: What is the current penetration rate into the addressable market? - Approximately 3,000 patients have tried Orlodayo, with about half still on therapy, indicating significant growth potential [54][55] Question: What is the competitive landscape for the pipeline assets? - The company is optimistic about its pipeline programs, with expectations for accelerated approval pathways due to the unmet needs in the market [108][109]