Theratechnologies(US:THTX)2023-07-12 15:40Financial Data and Key Metrics Changes - Consolidated revenue for Q2 2023 was $17.5 million, down 8.9% from $19.3 million in Q2 2022 [21] - Net sales of EGRIFTA SV reached $10.9 million, a decrease of approximately 5% year-over-year [21] - Trogarzo net sales amounted to $6.7 million, down 14.7% from $7.9 million in the same quarter of 2022 [48] - Adjusted EBITDA for Q2 2023 was negative $6.1 million, an improvement from negative $11.7 million in the same period last year [52] Business Line Data and Key Metrics Changes - EGRIFTA SV net sales for the six-month period ended May 31, 2023, were $23.6 million, representing a growth of 1.9% compared to $23.1 million in the same period in 2022 [22] - Trogarzo sales were impacted by inventory adjustments and greater than anticipated rebates to government payers [48][49] - Selling expenses decreased significantly to $6.5 million in Q2 2023 from $15.4 million in the same period last year [25] Market Data and Key Metrics Changes - New prescription growth for EGRIFTA was reported at 28%, exceeding initial estimates [33] - The company is focusing on high-grade serous ovarian cancer for the Sudocetaxel Zendusortide trial, which is expected to have a substantial market opportunity due to unmet needs [66] Company Strategy and Development Direction - The company is implementing a recalibration of its business to focus on commercial operations and aims to become adjusted EBITDA positive by year-end [121] - There is a strategic shift towards potential bolt-on acquisitions in HIV or adjacent markets to enhance growth [32] - The company plans to accelerate its oncology program while managing costs effectively [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged disappointing sales in the first half of 2023 but expressed confidence in a stronger second half [8] - The company is committed to reducing R&D expenses by $5.5 million annually to align with its profitability goals [42] - Management emphasized the importance of transitioning to non-pill regimens in HIV treatment, which could enhance the market position of Trogarzo [44] Other Important Information - The company ended Q2 2023 with $25.4 million in cash, bonds, and money market funds [53] - The FDA has agreed to a prior approval labeling supplement for Trogarzo, with a PDUFA date set for December 14, 2023 [18] Q&A Session All Questions and Answers Question: Can you quantify the impact on revenue in 2022 of the buildup in inventory? - Management indicated that the buildup in inventory had a significant impact on revenue, but specific quantification was not provided [31] Question: What characteristics are you looking for in a potential bolt-on acquisition? - The company is looking for products that can be integrated into its existing commercial platform, potentially in HIV or metabolic disorders [32] Question: How many ovarian cancer patients do you think could benefit in the U.S.? - The focus is on high-grade serous ovarian cancer, with a total of 16 patients expected to be enrolled in the study [35][66] Question: What is the status of the F8 formulation? - The F8 formulation is on track for submission by the end of September 2023, with potential approval by the end of Q1 2024 [45][72] Question: Can you provide more details on the Trogarzo rebate situation? - The rebate situation was affected by a less favorable patient mix, particularly with an increase in Medicaid patients [93]