Eagle Pharmaceuticals(EGRX) - 2023 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In Q2 2023, total revenue was $64.6 million, down from $74.1 million in Q2 2022. Net product sales were $43 million, compared to $49.2 million in the prior year [41][67] - Gross margin increased to 74% in Q2 2023 from 68% in the same quarter last year, driven by increased PEMFEXY sales and the expiration of the bendamustine royalty stream [42][67] - Net income for Q2 2023 was $5.2 million or $0.39 per share, compared to a net loss of $9.5 million or $0.74 loss per share in Q2 2022 [45][67] Business Line Data and Key Metrics Changes - Oncology gross profit, excluding amortization, was $43.8 million in Q2 2023, up from $38.7 million in Q2 2022, with gross margins of 84% compared to 82% [13] - Barhemsys and Byfavo sales totaled $1.2 million in Q2 2023, reflecting early-stage growth post-acquisition [77] - PEMFEXY net product sales were $19.4 million in Q2 2023, up from $16.5 million in Q2 2022, indicating continued market share growth [41] Market Data and Key Metrics Changes - Approximately 19,000 patients were dosed with Barhemsys or Byfavo in Q2 2023, indicating strong market acceptance [70] - The company has expanded its market share in the non-340B pemetrexed market to approximately 21%, up from 6% at the end of the previous year [76] Company Strategy and Development Direction - The company plans to add products through acquisitions and R&D, leveraging existing commercial infrastructure to minimize additional costs [8][26] - The Hospital segment is viewed as having strong growth potential, with ongoing relaunch efforts for Barhemsys and Byfavo [27] - The company raised its full-year guidance and resumed share repurchases, anticipating over $100 million in net working capital by year-end [67] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong performance and a solid foundation for growth in 2023 [56][68] - The company is focused on R&D investments to ensure the success of its product pipeline, particularly CAL02 and EA-114 [68][40] - Management acknowledged the disconnect between stock performance and company fundamentals, emphasizing confidence in future growth [53][62] Other Important Information - R&D expenses for Q2 2023 were $9.8 million, down from $11.4 million in Q2 2022, reflecting timing differences in program spending [44] - The company had $15.4 million in cash and cash equivalents, $115.1 million in net accounts receivable, and $71.3 million in outstanding debt as of June 30, 2023 [46] Q&A Session Summary Question: Can you expand on the seasonality in Q3? - Management noted that Q3 is expected to be slightly lower due to the cyclical nature of product sales, particularly for RYANODEX [50] Question: What are the expectations for Barhemsys and Byfavo over the next one to two years? - Management is optimistic about continued growth, citing a 30% growth rate since relaunch and positive customer feedback [51] Question: Can you discuss the disconnect between share buybacks and stock performance? - Management highlighted strong fundamentals and a positive outlook for the future, expressing hope that the market will recognize the company's potential [53]