Agile Therapeutics (AGXRW) 11 May 232023 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Agile Therapeutics First Quarter 2023 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

to Riley, conference Head like speaker to now Matt today, of would hand over the your I Investor Relations.

welcome XXXX corporate and our everyone, to call conference Hello to first quarter financial update. and results today's discuss

expectations Before of concerning will on forward-looking our call including that the for include our outlook financial half let XXXX, and we full including for statements first Twirla, statements outlook the and the me future, and start, financial expectations, you operational today's expenses. expectations remind operating our current management's market our based year financing of and growth future prospects our for performance, regarding

guarantees ability as and the market generally, our and our strategy the are promote to product with statements business contraceptive to growth, not our Such statements actual Our in combined broadly cause the regarding hormonal represent differ our its agreement or may make statements. and to available expectations. results assessment from our with ability results of today plans, that Twirla Afaxys of patients may and discussed and judgments its supply forward-looking among involve to prospects and partnership other promises uncertainties risks Nurx

our call, today's be found is on non-GAAP GAAP to of issued can which included release website. course of today, will A non-GAAP in the the reconciliation during Relations refer to certain measures we measures. Further financial of our section press Investor

by for We call information concerning obligation The filings today's and Relations available update is information Investor undertake risk may sufficient through the for purposes our are website. not as on not statements with decisions. of except to more For which prescribing to that no our intended required forward-looking section please SEC, promotional law. affect company, factors the refer the

is call Therapeutics' Executive Chief Officer. today's Chairperson on Agile Altomari, and Al me Joining

your the call call will over we'll prepared questions. the to our Following Al. to remarks, I open now turn

successful at to million. afternoon to to XXXX quarter in believe million everyone. revenue of on report along continuing path I'm adjacent Twirla financial for rates net to-date and pleased another level of grow $XX We our double-digit to $XX range our goal the demand Matt, net revenue you good achieving Thank the Twirla. the with

Twirla's some begin on reviewing our XXXX performance and want areas. I first in these to quarter by commentary providing outlook

Twirla demand. First

We are excited We in channels. demand choose that across think we're patients our to continuing Twirla about making that this demonstrates the penetrating progress, we're that Twirla. growth good markets all and are our seeing

an total from quarter is Twirla total the the XX,XXX XX,XXX a quarter XX% the by also in Retail XXXX, XX,XXX cycles XXXX single was demand, first total a was a of for XXXX. demand cycles, XX% fourth Non-retail from from fourth the increase the channel most of first profitable of of quarter Symphony XXXX, cycles, record. quarter our of total XX% which as reported XXXX. was the increase first quarter quarter fourth demand quarter increase

beginning demand become Throughout partner telemedicine channel Symphony, March weekly the path demand, further expect seen XXXX, highs our by to Twirla pharmacy. half the consistently as as Nurx reported second of by to advance in the new April, and only be of Twirla partnerships and offered we've we retail

in ambition the the our can that accelerate retail and non-retail the the potentially is in facts the our channel. growth Our vision channel partnerships growth accelerated retail like

Now turning to net revenue and factory sales.

higher are factory mix and gross represent to of sales, sales higher to net of quarter down a reflects inventories non-retail first which end our fourth results expectations. quarter in million, was $X.X revenue as the of the line of was work at the revenue net our and reduction. -- XXXX, net slightly slightly quarter-on-quarter levels, on wholesaler which the Net for XXXX XXXX with and in reported due approximately revenue rose the same which higher quarter First XXXX

April XXXX. Factory XXXX the with levels expect the first realized decreased the XX,XXX to of quarter believe cycles the total to cycles sales of XX,XXX wholesalers for inventory have signaling, compared the -- fourth XX% to We quarter wholesaler net reported factory for by channel would grow, our by Wholesaler as were inventory higher normalized. XXXX rates quarter in in now see and we revenue at moving purchasing forward. patterns sales both first

Now gross margin.

gross to $X.X increase Agile, have In or profit XXXX. or we We Another continue gross we a a of million the generating gross growth of we of ability profit. the quarter encouraging the of compared sign in of that $XXX,XXX gross XXXX. XX% is only over of to this XXXX, the first that first progress believe about margin to quarter make XX% margin for rest generated in

operating on quarter to operating the expenses third for first Non-GAAP million, decrease OpEx, or for both expenses. were XXXX $X.X quarters of an Now $X.X XXXX. fourth reported the of the from million and X%

Twirla levels. effectively our while of OpEx are ability of growth We managing our proud to

full OpEx, OpEx to to line XXXX the of XXXX. year full the first would the Our results, reported to of significant a for goal manage in million be continue compared reduction to is our year quarter to in which XXXX with lead $XX.X

key to produce net Agile to our to plan bound million. first revenue on range We confidence business is sales Looking demand not we see delivering the to manage XXXX in our that formula levels. ahead of OpEx thrive, to our XXXX, in the primarily This to results the will to we revenue, by a second just our by achieve allow of meaningful while quarter-over-quarter on in quarter factory that to our growth believe, and five continue ability states. $XX survive driving $XX focusing net is expect is continuing million

number while that and partnership Afaxys of planned our growing allude on our to keep heard In with allows emphasis and focusing our past, efficient. the you've its to sales us telemedicine on leveraging partnerships external growing Second, three, through me retail our plan prescriptions for parenthood; infrastructure also our effectiveness prescriptions the non-retail our business lean internal increasing the force. partnership and

demonstrated true believe We plan while Twirla, Twirla, ability exploration effective managed, our While credibility, opportunities. us launch also ability we OpEx keeping partner, its to believe partner. grow has we licensing has grow product continue it business of commercial makes to as and an potential development this consistently demonstrated our and our as a

our flow. the believe the XXXX goal we second potentially can alone, we allow positive generating to cash line While Twirla could with achieve company, accelerate to product net adding us a to commercial time

on open our the a costs, sold million for XXXX continued of like Q&A, Cost sold to financial $X Before other the to our consists believe on to we which indirect few goods demonstrate for fourth direct which quarter $X.X of and first we business. comment Twirla related XXXX. of results, manufacturing for our of of line I'd compared the the million of were progress quarter

We quarter million potentially options our arrangement, all including to to to we opportunities. will $X.X generate of the at-the-market positive flow, that cash first continue and hand XXXX, ended on and in available to cash or time the line ATM addition evaluate our continue development could company accelerate with exploring finance opportunities to explore business

closed of liabilities. a $XXX.XX $X.XX the of loss in million or share income resulting non-GAAP The $X.X net million for share Non-GAAP comparable $X.X XXXX, in $XXX.XX, We share, $XX.X from or $XX.X XXXX XXXX, compared loss million or loss comparable the results million million with GAAP exclusion to for net of first per non-GAAP quarter net loss quarter XXXX. a other the per other share quarter or first of million, was $X.X compared XXXX the $X.XX, to in and reflect first warrant net per per quarter period value for remeasurement for for out XXXX. income $X.X our first our fair period market the of the on of of in the

advantageous operating feel that our a that the fortunate, establishing cash believe quarter Agile times challenging capital plan. Twirla that be our in very by puts and making We in our flow we progress to for in growing business We business are revenue-generating position, and to in is that the on demonstrates, company, believe generation. acknowledge contraceptive results moving achieving and execute goals We a more in growing good and Agile positive that towards we're working plan our this markets. marketplace

analysts We can to our open chance lines. the now covering Operator, questions. if any like to you give a ask for

a At Instructions] [Operator you. question of Livnat this H.C. Oren we'll from question-and-answer session. Wainwright. comes Our Thank time, conduct

Thanks. I have several questions.

First, hope growth. Did going it keep to demand I and your And this revenue ambitious we growth the pretty actually I is curious despite flat did the forward much year obviously right? revenue OpEx scripts despite lower approximately jumps was you that said think that I hear that I'm it hear quarter-over-quarter and and comments reduced I that despite that you in see through off page think year-over-year. certainly

to that generating growth. -- that's and our Oren, Yes, got execute it's I right. arms model you we've Yes significant mean you want our on the we're see around it heard there. think Al. we we

Now, I row. think quarters five in we believe a

So, think what not and the a our work out be it's the fluke and way partners should book. figured should versus we books model our we on

what do. want we that's yes, to So,

so kind to to do -- we want hold We and of try that think can here it. steady I

the I think -- from we can I'm put first up year-end the pleased sorry X% decrease in quarter an quarter. to first do from it. We're

here. we to try and to -- want from So it hold

of I'm think just it for you models So, about partnerships to grow demand. helping it it work clearly the in outsourced if there's sounds like want or call margin to but actual these some them trying

You in traditional have the out there your channel. retail sales force

active what's potentially demand in algorithm anything But or those them when and NERCNurx, you the how pushes NERC engagement and towards patients flow side think there? of looking your the from product? for Are about telemedicine coming some --

that Xulane? that get you that in to they're there or is positioning it it all nobody your also relative at And just or through Xulane promoting to so speak? us not a can remind channel can it what offering Is

Yes, about parts talk Oren we'll question. specialty two our so Great pharmacy. like, Yes. of strategy first, like

we're our and pharm. lot before the the call specialty pharma mentioned we said going strategy times of or to a lot time we farm a their our local local think a hub I of that have favorite. companies to use specialty And have everybody a you want that's to doctors in

Amy first players national So, network and a like a all Sterling regional of of players. built number has

right, need putting we one want rather than to -- sure assess all paper out to letter write the where filled is the So, done. doctors They medical script. specialty pharm eggs in so basket, be our the the make that's

service. So, But that off. they for an office that's provide space

model, works a Nurx it's the In that a tale it prescribing. different. little case, truly bit In

and they about account the So, for patients patch. and at the they case, this them than then talk point, to if including doctors patients in consult now with And so doctor, to want right, contraception. likely countries on to the then methods, all they more all NuStar want that around In they're going dial employ they're doctor. the a

patch. preferred their are we So,

offer be to going they're patch, a if to it's Twirla. Patch Agile So, going the

with a So, partner a that we its unique them are relationship with it's partnership. true

gets the the no So, the CVS. it a around Twirla. let's different for they home but online sent an choice could if patient say have doctor their can you or than pharmacy, script will. have their through a online a They to pharmacy, write pharmacy the have They script

back like a retail your more going flow those way be or doctors captured the So, than doctor. scripts these are Symphony, to question likely to through in

you're So situation doctors case generally to in of we way they these unique that. have try And But if offices. the They and know we going for to discount visibility. they have think in doctors offices the like who have and service with our them. optics patients a don't online sit we this are relationships reps

think and really they're things exam really they an like doing So, we the an have that services. way office online don't room

way the the patients that's So, flow.

half year May of patch we our the they're that really And that in growth was as mentioned. kind business quarter I we're Xst in only go-live date, beginning the augments the the kicks quarter in second and So, off expecting our Twirla that offering. this that expect second of

the that's that's the way model work. So, and and the the works ins outs way

interesting an That's question.

to model what of go? physician. not Is guess you're determining Are being sort on you -- for done? docs these educated? patient is Twirla? what office-based traditional is And a are they the are they So, for I how they if that them had calling best ready directly like

question. Yes. do train We Great them.

marketing their like Amy joint pharmacists We marketing. Amy So first foremost do and -- and trains their people.

office Amy trained the and already So home has up. them people

letters advocacy about these Whelan, specialist and through For to reimbursement talking our who's necessity. handle Kimberly a partner how talked of medical our

these educated on doctor's Korner the then levels doctors. has our Dr. our in And office home

So And available we we've them. then teaching. to actually did a ourselves make

do So questions hey in we have can you of it. some the any and the service community. pull We doctors in

We setting. But samples. online. samples. all them. It's traditional reps of some here it's office Our some not want don't a go there done with you don't have say again relationships They want and

probably front the in than get meantime can we at in Amy level. do. a But effective we it's handle of them national if So more

We teaching kind So they Kimberly. of and a a we and a training got questions asked with did Amy a and seminar of and private rollout. did and lot Dr. they Korner

-- it's in know and office check if you a then with we'll home So So from them. to driven What are will. is any time time hearing? there are more you questions? lot I

– the So time that's a really brand. way they've with point model out. believe important relationship they're a this is the kind this formal And of organization turning think I excited. it also the for rolled is I had their first And a that and

Interesting

margins. have better Clearly

They're they're They're excited. excited. We're excited. So excited.

win-win it's So Oren. companies, a for both

actually for brand think is can be important these actually your so to in of drive that for me presumptuous for first the demand the other of them And sort it to it it's can that case and more the successful future? they is do with this partnership to them. relatively that that's show products So companies

I And their it's He's CEO. important was mean a knowledge that to we but is to lot super I the only little do one certainly is I And top sure. best principle is this I It's just -- prove believe generics. to of I to I this a more is a this plans yes. easier other involved both mean sure. want over a mean bit organizations verticals. clarify been brand to they've complicated. first in top dispense I've want my I They with contraception. the -- here. dwell was Yes, look ever.

important our there. the stuff filling out it patches that's is to that but So versus they understand -- about them patch why different forms out all these understanding clinically for also and other what's

letters to this months think with adjudication Sure. quarter? going this And the I'm not there's second of And we a than take is that thing sort of should sorry. especially a its few more half second up to -- ramp and

why that's Yes Yes. we're guiding.

walk run. kind of I to want before think we we

they us. other The pharmacy out exciting last maybe it think us they they this go mention thing dispense through the fail case for of that buy actually wholesalers. that have thing doesn't one to product does from I In is a I rate

buy we with make So is a us. -- which nothing is wrong better margin. wholesale People with the when directly

There a this is for So patient base model we lot like earn a a new lot of us. for reasons.

the second fee a under to to half us guiding we're to chance so And give get legs our us on.

We're -- And thing. product a to starting from write. they so I purchased reordering think us. That's that's that they're thing. are seeing good a doctors good The

always kind some, we as stick. to, of, of, dampen kind want So expectations hockey

clinical to more we're going think business then continue experience that to us. with get grow I and

from fare end And there the fees to retail than gross on to wholesaler through that nets which spectrum goes that in non-retail? is of all with volume versus the no cuts

patient. a as -- that. the through flow a I -- on through in frankly because it up them a come organizations you're from on Yes. to kicks as not manufacturer. going call different If wholesale said than on the patient gross level commercial saving there a our mean Because profitable you're we directly the most of quite it's margin patient the commercial

So up pick rate we there. margin

they Even get do a though margin.

going wholesale lot do a of So directly more efficient a kind just they I'm get clear margin them. of but it's kind to

So the we up margin. pick

or in case flow is this So commercial it's there. same Medicaid. won't rank In the and order effect business the this through first always

the kind extra it us of margin. gives points just little couple So on of a

you look quarter. going on like lumpy. Okay. or this it's this gross year know forward product this Can growth? what as it I us long-term and margins COGS ticked help just margins gross understand through been And margin speaking of down

Yes.

of our of is think of first I a I more -- mix directly a bump. and related was volume the our bit this the just little in and business, the is speed reason quarter. are as in piece there mentioned business a Afaxys of, The proportionally our kind sales

took on little through of haircut a and business kind bit. the the in we a then it gross margin So flows that

some -- we're and make little nothing I we through margins. the allocations think good there. we news and there's generating It's broke So a

new gas else in, showing everybody it. now you that favorite my hopefully, you can we're closing graph. and we're see closing that So mean we're I

between two the look at that's line, you green red the If loss and the you those the gap will. line if

Sure.

those So if see, at where look lines hopefully started now. you where we and is to we orange. are make And can are job my you cross

bigger get a I need I to to smaller. need line the green get red So and line

generate is to So why that so goal. flow. and flow, That's cash zooming confident that's the cash this on paying company we're

so management I But way margin to -- can't OpEx line, your in important. right? important, best top that's allocation. grow is So worry the about the margin clearly is is So,

going about you the If the I much channel, -- to call in year strong we could on still business in just as it's you in wins non-retail acceleration I this any year? kick us data, also material haven't Like, spoken as any steps the which Parenthood but expecting through or you shift this well? that this Can Planned in up see expecting can as are are past. to remind new

them Yes. more getting We're ready.

mentioned on bring Every in how we're new on has yes, product. that a different guiding philosophy to them. the past, Parenthood So Planned a we sort

complete conversion. other to any product going The were, first They're use right, you're Amy We're calling what couple or we other got any like, was patch. a in. not all

a winner-take-all situation. So kind it's it of -- was

to bit ones of a competitive down work little products. Other inventory tend their

down. landed in some work big more And so, we are a accounts that

what looks So the IQVIA is steady of more got you you're Oren but seeing that in -- like what state. a

accounts. I Planned of Parenthood one. big come up -- you is understand what answer online, keep you you before one the said picking They So understand we sort

transitioning. of different So they all a have philosophy

tend kind down So, it the a a of a these day versus kind inventory got ones to wake more way just you of in be by better. latter of one and keep I all. of like up you newer their work one the

they work that era through once -- I'm sorry. So by interrupt,

Yes.

work do doing they're just are to Twirla they Once that that -- these they isn’t tend inventory, be exclusive through it? or

Yes, convert. All Yes. yes. they roads exclusivity. to Yes, lead

seeing But you offices. have inventory, to is, or the I for the part first to that and through when convert, model wait Amy gets mean about But on start down like these hard Parenthood they get inventory, you I are So of rather the week inventory And sites. bigger. two purchased times it first a as Planned work going you one their every you go. right? the to other, quarter as that clinical pay being get because multiple than lot

one -- they exhaust start site so inventory kind they So their of buying.

So and get it's started growth consistent another you steady and we and account then again.

everybody So exciting about. most more. Once becoming the ZIP codes start around local reason talk we mean them though. really we're then, the Planned come online, that, important it's Parenthood business really the we're the important. to And is influencing I pretty excited writing spillover

the the in patients community. and So doc the the flow community,

retail just epicenters that's exciting, market share growing is to better these because the clearly are segments, the business really in which our around clinics, for us. So in put the

working a Amy, credit. lot there's seems So everything -- Everything is it out well. of

on that Well that my the you last beat question was me to right. All it spillover.

for that think me. I patience. all the it I does appreciate So

pleasure, Thank Oren. No. you. My

All right. Thanks.

Thank now for to turn I remarks. Riley like you. it would Matt closing to back

I'll Al, but it's it Operator, out. Yes. close

you. thank So

questions we in and out take Oren people queue. everybody's the think lose I

thank So, you Oren.

Just great question. a kidding,

manage, quarter. that we've call are of from isn't how This excited confidence consistent this you we of number that quarters quarter We've we're strong showed that, takeaway gives our I a a growth us is -- going of about say confidence have it I and consistent and that a consistent times. hope growth to we one-and-done said we lot two. feel our multiple, multiple No, your OpEx a can which

the for ultimate see And in and is do ultimate its net get trust we generate confident But and of prize the along feel business what one cash were as that you'll we of prize to our the about track our that us doing lines can million management, talking and be line Oren we bigger I their across. graph the then show OpEx big for a top million getting picture, The on deliver better to we can to else brands. a continue we still position we're revenue promises our a $XX deliver $XX us just back which those is puts year brand. at flow candidate at positive we're with to on people us, that and the that somebody

So, together. all that's comes how this

We business mentioned really Corium instance, and are line of been that we partners support, just support partners and mention for don't but of I the some bad our goal on appreciate the up. we've folks everybody's with Syneos, are

So established business a model. we have

lot a have We of confidence in.

expect all in channels. will growth should and going. keep you quarter but of growth books is fact love we in this And expect our it's So business coming that the second all the we from the that

and day. thank staying everybody good So you support a we close and really have And appreciate story. our to your

Thank program. you does for conclude in This your participation conference. today's the

disconnect. may You now