TherapeuticsMD(US:TXMD)2022-08-15 13:46Financial Data and Key Metrics Changes - Total net revenue for Q2 2022 was $28.6 million, an increase of 24% compared to Q2 2021 [6] - Total operating expenses decreased by $11.4 million or 21% during the quarter [6][16] - Gross profit rose by 26% to $23.8 million [6][15] Business Line Data and Key Metrics Changes - Sales of ANNOVERA reached $18.3 million, an increase of 91.2% compared to Q2 2021, primarily due to increased sales volume [12] - IMVEXXY sales were $6.7 million, a decrease of 32.2% compared to Q2 2021, attributed to lower sales volume and average sales price [13] - BIJUVA sales increased to $2.7 million, up 23.1% compared to Q2 2021, driven by a Theramex license agreement and increased sales volume [13] - Prescription vitamin sales decreased to $0.9 million, down 35.5% compared to Q2 2021, due to lower sales volume and average sales price [14] Market Data and Key Metrics Changes - ANNOVERA prescriptions grew 28% compared to Q2 2021, reaching an all-time high of 901 prescriptions in the last week of the quarter [22] - New prescribers for ANNOVERA increased to 12,000, indicating strong demand and growth potential [23] - IMVEXXY added 1,606 new prescribers, exceeding 30,000 since launch, despite a slight decline in total prescriptions [25] Company Strategy and Development Direction - The company completed the divestiture of the vitaCare business unit, allowing for a more focused business strategy [7] - The FDA approved a supplemental new drug application for ANNOVERA, expected to reduce manufacturing batch rejections and increase product supply [8] - The company is evaluating options for refinancing current debt and pursuing strategic alternatives to support operations and growth [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ambiguity in the operating environment but expressed confidence in the team's performance and commitment [32] - The company is optimistic about the demand for ANNOVERA and believes the recent revenue performance reflects genuine end demand [34][36] - Management addressed concerns about rejection rates for ANNOVERA, stating that root causes have been identified and resolved [42][43] Other Important Information - The company recognized a gain of $143.4 million from the sale of the vitaCare business [20] - Net cash used in operating activities was $15.4 million for the quarter, with $26.3 million in cash as of June 30, 2022 [21] Q&A Session Summary Question: Employee retention rates in the sales force amid uncertainty - Management remains encouraged by the commitment of the field force despite ambiguity, with turnover rates being reasonable [31][33] Question: Revenue performance of ANNOVERA and demand reflection - Revenue performance is primarily based on demand, with a restocking of channels occurring due to previous inventory concerns [36] Question: Concerns about rejection rates affecting long-term product opportunity - Management confirmed that rejection rates for ANNOVERA have been addressed and do not expect them to impact long-term opportunities [42][43] Question: Vision for the company post-tender process - The company is focused on maintaining operations and meeting demand while evaluating all options for long-term financial strength [46]