OptiNose(OPTN) - 2023 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - OptiNose recognized $19.8 million of XHANCE net revenue in Q3 2023, a 1% decrease compared to Q3 2022 net revenues of $20.1 million [49] - The company reported a cash position of $66.8 million as of September 30, 2023, with a year-to-date cash use of $27.4 million [51] - Operating expenses were reported at $19.3 million in Q3 2023, a 33% decrease from $28.8 million in Q3 2022 [17] Business Line Data and Key Metrics Changes - In Q3 2023, there were approximately 27,400 new prescriptions for XHANCE, a decrease of 4% compared to Q3 2022 [26] - Total prescriptions for XHANCE in Q3 2023 were approximately 84,100, a decrease of 6% compared to Q3 2022 [26] - The average net revenue per prescription for Q3 2023 was $236, a 6% increase from $223 in Q3 2022 [50] Market Data and Key Metrics Changes - Approximately 8,400 physicians had a patient fill at least one prescription of XHANCE in Q3 2023, a 5% increase compared to Q3 2022 [15] - The number of physicians who had more than 15 XHANCE prescriptions filled decreased from 1,485 in Q3 2022 to 1,346 in Q3 2023 [47] Company Strategy and Development Direction - The company aims to stabilize demand trends in its current nasal polyps specialty business while preparing for the potential launch of XHANCE for chronic sinusitis in 2024 [25][28] - OptiNose is exploring commercial partnerships and alternative selling models to expand its reach beyond the current specialty segment [3][24] - The company believes the new indication for XHANCE could significantly increase its patient base and revenue potential [12][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upcoming FDA review for XHANCE, with a target action date of December 16, 2023 [45] - The company is focused on improving operational efficiency and stabilizing revenue while preparing for the potential approval of XHANCE [54] - Management acknowledged the importance of the new indication for chronic sinusitis and its potential to reshape the business [33][34] Other Important Information - The company has revised its co-pay assistance program to enhance profitability in Q4 2023 [29] - XHANCE net revenue expectations for the full year 2023 have been raised to between $66 million and $70 million, up from a previous range of $64 million to $70 million [31] Q&A Session Summary Question: What if the label expansion does not occur? - Management stated it is premature to discuss specific strategic options but remains open to various strategies depending on the FDA's response [39][62] Question: Have label negotiations started? - Management confirmed that label negotiations have not started yet but may begin soon as the target action date approaches [57] Question: What are the other approaches aside from primary care partnerships? - Management mentioned exploring direct-to-consumer outreach and telemedicine as alternative promotional approaches [60]