OptiNose(US:OPTN)2024-03-07 14:14Financial Data and Key Metrics Changes - OptiNose recognized $19.9 million of XHANCE net revenue in Q4 2023, a 5% decrease compared to Q4 2022 net revenues of $20.9 million [12] - For the full year 2023, XHANCE net revenue was $71 million, with an average net revenue per prescription of $209, reflecting a strategic focus on profitability [13][30] - Operating expenses were reduced by $38 million or 31% for the full year 2023 compared to 2022, with significant savings in SG&A [13][29] Business Line Data and Key Metrics Changes - There were approximately 115,000 new prescriptions for XHANCE and 339,000 total prescriptions in 2023, both showing low single-digit percentage decreases compared to 2022 [10] - The average net revenue per prescription increased to $250 in Q4 2023, an 11% increase from $226 in Q4 2022 [30] Market Data and Key Metrics Changes - The company anticipates first quarter 2024 XHANCE net revenues to be approximately $13 million, a 10% increase compared to Q1 2023 [51] - The total addressable market for chronic sinusitis patients is estimated to be between $10 million to $12 million, with one-third of that population cared for in the specialty universe [42] Company Strategy and Development Direction - The company aims to build a profitable ENT and allergy-focused business by leveraging expanded net revenue potential through existing commercial capabilities [6][53] - The supplemental new drug application for XHANCE is under FDA review, with a target action date set for March 16, 2024, which could significantly reshape the business [22][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential approval of XHANCE as the first prescription treatment for chronic sinusitis, which could increase the patient base significantly [21][22] - The company is focused on optimizing its sales force and distribution strategy to better align with the chronic sinusitis opportunity [9][16] Other Important Information - The company reported a cash position of $73.7 million as of December 31, 2023, indicating a solid financial foundation for future operations [50] - Adjustments to the co-pay assistance program were made to enhance profitability by reducing unprofitable prescriptions [9][30] Q&A Session Summary Question: Can you provide more detail on the sales force and distribution optimization? - The company has realigned its 75 sales territories to focus on the chronic sinusitis opportunity, aiming to reach high-prescribing physicians in that specialty [16][54] Question: What portion of the opportunity can be accessed with existing infrastructure? - The total addressable market for activated patients is estimated at $10 million to $12 million, with about one-third of that population in the specialty universe [42] Question: How has the dialogue with payers been regarding access improvements? - Current contracts with payers are transparent about the pending application for chronic sinusitis, and the company is optimistic about improved access if the label expansion is approved [55]