Theratechnologies(US:THTX)2024-04-10 14:47Financial Data and Key Metrics - Consolidated revenue for Q1 2024 was below expectations, but the company recorded its third straight quarter of near flat to positive adjusted EBITDA, an improvement of $3.6 million over Q1 2023 [10] - Adjusted EBITDA for Q1 2024 was negative $247,000, a significant improvement from negative $3.9 million in the same period last year [40] - The company reaffirmed its 2024 guidance for revenues between $87 million and $90 million and adjusted EBITDA in the range of $13 million to $15 million [68] Business Line Data and Key Metrics - EGRIFTA SV net sales in Q1 2024 were $9.6 million, down from $12.7 million in Q1 2023, primarily due to inventory realignment at pharmacy partners [69] - Trogarzo net sales in Q1 2024 were $6.7 million, a 7.4% decrease year-over-year, mainly due to lower unit sales [38] - New prescription growth for EGRIFTA SV continued with new enrollments up 21% and unique patients up 14% compared to Q1 2023 [5] Market Data and Key Metrics - The number of unique prescribers for EGRIFTA SV increased by 13% in February 2024 compared to the same month in 2023 [5] - Inventory on hand at the end of Q1 2024 was 27 days, down from 55 days at the end of Q1 2023, impacting Q1 revenues and growth [6] Company Strategy and Industry Competition - The company is focusing on commercial capabilities, completing Part 3 of its Phase I oncology clinical trial, and acquiring assets to create shareholder value [26] - The company is actively monitoring its distribution network to maintain 30 to 35 days of inventory on hand at the pharmacy level [6] - The company has decided to deprioritize the Intramuscular Administration of Trogarzo due to the cost of a new study and the evolving competitive landscape [34] Management Commentary on Operating Environment and Future Outlook - Management expects a stronger Q2 2024 compared to the unusually weak Q2 2023 and anticipates more stable revenue growth in the second half of the year [32] - The company remains confident in its strategy and expects to see improved cash flow and value for shareholders [68] - Management highlighted the promising tolerability and anti-tumor effects of its new PDCs, demonstrating the versatility of its SORT1+ technology platform [8] Other Important Information - The company ended Q1 2024 with $38.5 million in cash, bonds, and money market funds [57] - R&D expenses decreased by 60% in Q1 2024 compared to the same period last year, primarily due to lower spending on the oncology program [39] - G&A expenses decreased by 15% in Q1 2024 compared to the same period last year, reflecting the company's focus on controlling expenses [56] Q&A Session Summary Question: Status of business development efforts and hurdles - The company is actively seeking to acquire new assets and is optimistic about positive outcomes within a decent period of time [78] Question: Impact of GLP-1s on EGRIFTA - EGRIFTA continues to perform well despite the pressure from GLP-1s, with strong new enrollment and patient growth [24][82] Question: Plan with Marathon facility - The company has $60.6 million drawn on the Marathon facility, with repayment beginning in August 2024 over 36 monthly installments [25][41] Question: TH1902 patient enrollment and data timeline - The company is enrolling six patients at a higher dose level for TH1902 and expects to complete recruitment in the coming weeks or months [64][72] Question: NASH partnership discussions - The company has seen increased interest in tesamorelin for NASH following the approval of a competing product and is advancing a Phase IIb/III trial protocol [65] Question: Adjusted EBITDA focus and future metrics - The company expects to transition from focusing on adjusted EBITDA to discussing cash flow and net income in the next quarter or two [51] Question: FDA meeting and resubmission plan - The company clarified two key questions with the FDA during a Type A meeting and expects to resubmit for a decision before the end of 2024 [66][81]