Eagle Pharmaceuticals(US:EGRX)2023-05-09 16:59Financial Data and Key Metrics Changes - For Q1 2023, total revenue was $66.3 million, down from $115.9 million in the prior year [13] - Net product sales were $46.2 million in Q1 2023, compared to $90.1 million in Q1 2022 [13] - Net income for Q1 2023 was $5.8 million, or $0.44 per share, compared to $44.1 million, or $3.47 per share, in the prior year [16] - Adjusted non-GAAP net income for Q1 2023 was $16.5 million, or $1.27 per share, down from $52.2 million, or $4.10 per share, in the prior year [16] - Gross margin decreased to 74% in Q1 2023 from 76% in the prior year [14] Business Line Data and Key Metrics Changes - PEMFEXY net product sales were $22.9 million in Q1 2023, down from $37.2 million in Q1 2022 [13] - Vasopressin net product sales were $3.5 million in Q1 2023, with the company announcing its withdrawal from the vasopressin market [13] - Combined net sales of BARHEMSYS and BYFAVO were just shy of $1 million in Q1 2023, with a 32% sequential increase from Q4 2022 [9] Market Data and Key Metrics Changes - The company's share of commercial, non-340B pemetrexed usage in community oncology grew from 6% at the end of Q4 2022 to an estimated 15% in Q2 2023 [7] - BENDEKA and BELRAPZO maintained approximately 89% share of the bendamustine U.S. market in Q1 2023, down slightly from 90% historically [31] Company Strategy and Development Direction - The company aims to leverage its strong balance sheet for potential accretive acquisitions, particularly in the acute care or oncology space [10] - The establishment of a unique J-Code for BYFAVO is expected to facilitate reimbursement and broaden access [33] - The company is focused on long-term growth through its pipeline and potential acquisitions, with a specific interest in oncology products [12][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance for 2023, citing investments in products and pipeline development as key factors [29] - The company anticipates continued growth in PEMFEXY sales, projecting to surpass the $67 million recorded for the full year of 2022 [30] - Management noted that the competitive landscape for the bendamustine franchise remains stable, with confidence in exclusivity until November 2027 [32] Other Important Information - R&D expenses increased to $9.3 million in Q1 2023, up from $6.1 million in Q1 2022, primarily due to ongoing clinical trials [38] - As of March 31, 2023, the company had $21.9 million in cash and cash equivalents, $150 million in net accounts receivable, and $77.5 million in outstanding debt [39] Q&A Session Summary Question: What is the expected launch timing for landiolol? - Management indicated that they may wait a couple of quarters to gain access before launching landiolol to avoid interference with the Acacia products [20] Question: Can you discuss the growth trajectory of PEMFEXY? - Management expressed optimism about PEMFEXY's growth, noting a rise from 6% to 15% market share and projecting strong sales for 2023 [22] Question: What is the rationale behind securing financing for acquisitions now? - Management clarified that they are lining up lenders to be prepared for suitable acquisition opportunities as they arise [45] Question: Is the company focused on the hospital space or looking to expand? - Management indicated a preference for oncology acquisitions in the near term, given the favorable conditions in that market [64]