Agile Therapeutics (AGXRW) 9 Aug 232023 Q2 Earnings call transcript

Good morning, and welcome to the Agile Therapeutics Second Quarter 2023 Financial Results Conference Call. Please note today's event is being recorded. I would now like to turn the conference over to Matt Riley, Head of Investor Relations.

Hello, everyone, and welcome to today's conference call to discuss our second quarter 2023 financial results and corporate update.

Before we start, let me remind you that today's call will include forward-looking statements based on our current expectations, including statements concerning our financial outlook and financing prospects for the future.

and second and XXXX, expectations operational market of the our expectations regarding for growth financial expenses. future performance, Twirla outlook half management's of for the Our operating our including our

plans, to hormonal business are statements patients ability promote and its and judgments of their prospects ability our our Syneos Nurx guarantees to non-GAAP Twirla reconciliation A regarding GAAP risks differ make combined relationship to be with Afaxys of and assessment forward-looking growth, the issued financial as Our involve statements to and and not results contraceptive strategy, of Such broadly is the other included can and our or which represent to non-GAAP with our our the release promises market, that among found and partnerships refer expectations. website. discussed available Relations press the in to may on our call, may in today, Investor certain results from of today, today's our statements. Further, measures. cause actual during measures uncertainties will section we

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

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

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

XX% from in total we performance of quarter most cycles will from in first and that by the our increase XX,XXX quarter confident excited. and XX,XXX quarter was double-digit second the why to million share in the metrics demand believe a the and joining you of for a second us net increase total demand, we of momentum affirms we're XXXX revenue plan, $XX in cycles, as total into XXXX second confidence second quarter with all range excited future XX% Agile our in demand quarters. Oil personally demand. Non-retail the XXXX, Retail quarter, morning. flow generating us record. XX% the made the are this We the was Symphony, the our single in XXXX Twirla. to for goal the part with that pre of first growth can million. I'm $X.X you, have second is profitable Matt, both belief, towards our million reason market. We quarter, second going channel, results business quarter call growth holding a quarter XXXX very of cash XX% quarterly an from first our retail $XX this Thanks, our thank our for revenue from the accounted and XXXX. The XX% I'm kick demand, to was quarter another the discuss positive combined the cycles, this is everyone and to achieving for this and of the XXXX. progress our is increase off a net for sustain why our of in reported our Amy by then demand first XXXX significant things quarter retail XX,XXX quarter the for channel quarter in reviewing think

of demand from is non-retail Our our comprised Symphony as well data as wholesalers.

were $X.X first the XX% million wholesalers, increase second the XXXX for Second by a cycles our compared to total reported increase. reported $X.X XX,XXX for comparable period the sales XXXX, increase reported for first from revenue XX,XXX XXXX. Factory XX% $X.X the in the quarter from for which XXXX, quarter cycles million and million, a quarter net was in total XXXX the quarter the reported represents XXX% as

As have normalized. think inventory discussed now on year-to-date a channel basis, last we quarter,

second of in to approximately million We meaningful XXXX. We margin, the progress XXXX, gross we second profit. of or the in quarter or $X.X of our we along and $X.X make driven quarter think and quarter plan expect we and first part is continue both a net our or gross describe. Gross $X.X profit believe of generating of continue net XXXX. OpEx the margin a by factory demand, in generated our will XX% second were second and to revenue quarter for X% in margin expenses to first gross decrease compared the with Operating a execution in reported see the will XX% of the improvement sales see from million we of to to the margin half XXXX, Amy half that grow a the our sales of million, business growth growth XXXX. in $X.X in In continue XXXX gross of progress of becoming million demand the

XX% Before COGS, on over, our and a indirect we Cost sold of XXXX. We goods progress of financial was XXXX second on quarter $X.X hand Amy the $X.X represent million which to or continued second first with takes million cash of the related the manufacturing XXXX also believe ended I'd of of of which or business. our for quarter results of costs $X quarter sold, or the million. for to few like other demonstrates Twirla comment to compared XX% direct of

all company. we'll continue at-the-market our or to available options In the finance addition arrangement, evaluate to to ATM

second to or of results and a per million GAAP $XXX.XX by of quarter net of XXXX decrease share in of of share XXXX $X.XX million the the the demand, in million million which in XXXX, income GAAP for million comparable second period in of $XX.X quarter $X.XX per $X.X XXXX The loss another in first net in factory warrant the $X.X of was an and loss of share XXXX. We a quarter loss remeasurement comparable second million XXXX quarter a of quarter the loss or XXXX second highs other operating sales quarter per quarter reflect $X.X was GAAP market of of loss first compared million $X.X expenses. compared $X.XX million or share record for share liabilities $X.XX net a the quarter quarterly $X.X and $X.X net XXXX, the for to or first quarter of single fair the exclusion resulted non-GAAP for period for for of in a XXXX. per the million the or of $X.X all respectively. Non-GAAP reporting for revenue, set in second Our $XX.XX XXXX $X.X a non-GAAP or

We second the pleased but are quarter results, the beyond not job with is done.

call we question deliver our over the board. We growth. is have now designed built growth the the which across answer continue accelerate that ask will to how Amy by future explaining to and can I hand to to ourselves business model, we

Thanks, Al, everyone. and hello,

of to by XXXX are Our minutes million whole take the net organization a in question I million can reach our of our is like why energized we explain XXXX. sustaining the by our few would and $XX guidance revenue answer $XX excited we business of is second to results at to quarter momentum, levels. We current and is operating commercial yes, to towards current future quarters since prescribers the receptivity question the structure of XX,XXX in think launch. increased now and this the because our continued driving Twirla, growth approaching holding expenses which model answer our cumulative

platform a plan pursuing a is a business commercial on We that that fixed built scalable costs. adding without of are believe is we lot

further. explain me Let

potential our plan on This X women when based targeted And reimbursement down and the succeeds align on spend business force greatest Twirla to to the second, platform sales is needed that geographical driving in for so opportunity XX% structured partner reach our and XX to and have well XX we states and as interest as with with the strategy U.S. partners' cost our maximizes Syneos profiles. over the areas have up in allow growth. that scale are to focuses have been believe ours or Agile estimated our collaborations minimize Twirla First, that strong us of fixed as Afaxys our aged and succeed. key commercial

converting this cost we what like ] variable pursued into for costs. Agile would typically by fixed a be [ conservative company have We

demand quarterly experts stable because For growth non-retail fee, to growth dollars example, them through with XX% from non-retail Afaxys' us Afaxys, than compensation non-retail first rate drive we performance-based helps at potential. as a sacrificing a operating incentives, fixed combination that second we in expenses of grew with is our identified and own which our to along Afaxys allocating quarter partnered a XXXX. without keep Rather partnership maintain XXXX quarter with our sales force, resources the time build the and area.

our with believe additional access platform can retail operating which Syneos, have costs. force. and sales commercial expanding same increase to the this taken provides by will additional We build we Twirla without approach We Twirla channels, our growth significant distribution we incurring expect out which drive now

that range million is operating to of net the confident we $XX expenses $XX why So steady. in remain this achieve can we relatively million while revenue our holding

some us our Twirla grow out Twirla our our designed to telemedicine through take the first further which contribute to quarter drive are reach expect growth. Advancing to expand retail channels. In through a announce retail to XXXX availability minutes and Health distribution Twirla's we collaborations to XXXX, relationships and you part more growth would channel Pandia of net to on I In platforms, new focused additional on sustain we Twentyeight Now retail channel. the in saw our and second provide few revenue future channel, of will half like build plan all to strategy growth. the to details commercial Nurx,

channel. to expand augment positively integral to now Q&A. opportunity impact that without XXXX analysts growth non-retail our questions. of to growth. and of a through to our are Operator, Strong, of us plan, and may growing, external and half across incurring Their Women's the further confident now are sustained significant also second focused XXXX. cost large the the fiscally-responsible expect ask the part continue our give efforts focused sustainable, a we growing business non-retail planned covering MMCAP part relationships why promote are explore Afaxys' like our half on FPA we collaborations for to We are Health contributions open are allow business. We'd to business, in line an you expected to can availability in with the and board second Twirla's relationship contribute

[Operator Instructions]

Yes.

in operator, So introduce want that, the to we're else I room. doing somebody while

We in also by incoming our CFO. new the room are joined Coiante, Scott

Scott when I know we big a took most of you company that public. the part was of the think company

him So to back. we're have thrilled

you the transitioning the or be to he'll room, I let in he's So want so. know, job and week in the just also next

Wainwright. H.C. question comes first line of our Oren from So the from Livnat

questions. this to you of about bunch a on this Congrats first, have just upside to opportunity compelling Welcome back, return mentioned fundamentals. you Scott's found a Agile, that guess reiterating curious and call. guidance. I I I'll Scott. the about and some ask nice quarter what on I'm

Good productive years group Thanks, and of here be good here. build team. to me great you. Oren. of people part and progress here presented to at a a look, that to for you Look, itself was come really opportunity the been doing. on There's The continue it's company connect great as know, back, has And to some that with I'm happy I Agile.

a Obviously, pivotal time. it's

feedback Can hear me? some heard I Sorry, end. you the on

Yes, good, Oren. ahead. you're Go

let's Twirla. about Well, talk Okay.

reiterated,the over continue? quarter-by-quarter X just growth? wondering, trends about quarters I mean sort in can weeks of just you can I think couple some a sequentially to into seen I guidance. of trend know lumpiness I don't cycle Or give you're and total But they line XX% in think get row. do you since quarter-to-date guess, talk we're summer? into we've I expect you And that I'm you demand what as seeing, top QX, guide,

get There's So stealing seeing any nothing July from comments. closing thunder Oren, we're that my okay. our in I concern. you're us will -- doesn't that's we're nothing There's answer. in seeing

with quarter to momentum into July. The the in seen third we're fact, static quarter. accelerate second the we've In continues

since. weeks X about said, you as far, So

we're So thrilled.

the for and to name on we expect mean [indiscernible] why see would surprised. expect one, not quarter and guidance, we us rest the I bullish but we're we're that's figures like So we of The momentum, model, reaffirm built this that. through. that's to the year. continue walked is why would the We

channel, retail profitable, big things the one about how over the the the All channel, right. is in most highlighted. non-retail success of you parenthood, is which And spills as past this planned you've talked obviously in particularly the into

Or think. ground I demand as nice telemedicine in driving the channels? spill as seen is near on seeing You've the over? demand that well, sequential this just XX% Are boots new the or retail well, you retail traditional

answer. over have it to a expert She'll on it. I'll better Amy, the turn

an every few the planned saw a these as we had a another it, the months We state, are spillover we times more for that physicians and after on that last early That's quarter parenthood we is looking time few talked confident that the spillover are. -- question. we're see are about third It's or likely some add have also that see where into we did private that -- as in we model continue. than in a you thank that Yes, account group practice. a analytics year. And when we in

within structure, So the the planned bringing parenthood over. on confidence gain that they're they start Twirla to

continue yes, So spillover. the we to see

the confident the retail into we're again, account, growth new go a get we when will that growth. non-retail again, So

important things I FPA, And big fall a think and How an sort of. was -- for accounts made remind your there name accounts of one like And like is an non-XXXB quarter picture, announced another the I one us opportunity? right. more you is new do there said are how I profitability the second that on the where in that's this channel there that How many All of the of the contributor channels? they non-retail was guess multiple you big spectrum half that? as

Yes.

of specifically. give So I'll profitability maybe look do the then yield, we profitability, clearly our kind and then are But Amy I'll talk at commercial still profitability, kind overview an our cycles you of through best. if and FPA can just you

would that's our Medicaid Afaxys of be the Next, Then in and order business our a it's FP&A. would pecking business. the we put then business, Kind cascade. GPO

commercial, bigger GDP Germany look to of California closer for you when country from I mentioned than is California, a is our thing team, a this FP&A I really us. So to which great said, at perspective. the And

-- we They claimed country. FP&A the be not California. the biggest So only account in to landed big in the biggest the private claims

So I it from don't there. -- take Amy, to you want

on much led a And accounts. OB/GYN. great how part and group is there non-XXXB potential other phenomenal started We I think the I'll is account the take just by of partnership. one that a with FPA

We're So we normalize are in to beginning no state. way at now. steady just

the accounts or So a non-XXXB that will, there's you planned That's hybrid part single account. cost in fit of our lots other half year But if cost XXXB, of other the of that growth back strategically, like and new accounts, between structure. of with sort commercial the structure parenthood strategy.

within on nationwide So but to some that, like account meaningful we more financially start were to come meaningful It's lucky us. and FPA. very for

how that fits because MMCAP. maybe strategy explain Maybe that importance the into MMCAP of

or services their into MMCAP deeper may colleges GPO Afaxys have folks universities as Yes. and that Afaxys to sales some that the enables that sell with. within government health serves may and accounts not for

have I partnerships help was for us access on, signed looking again, could opener, So in We're like call. the MMCAP, for we and it's saying volume that a basically, earlier Twirla.

universities [ us X as That health statewide. those government, services humor channels serves and well for and is So as colleges nationwide again. MMCAP ] in

about Okay. of you growing. value can all both I guess cycle profitability we're since and to sort last overall talk I this quarter then trends quarter per talking are or channels about and from going guess, forward, channels obviously, mix, the

us give we this can to really, So for us to guess going. about that? a you direction But is think should how picture it's what hard big

in shot, when was take quarter. at the versus second But retail quarter, comment. first a I'll mix Yes. of and the let our second quarter Amy look the you just I'll stronger

a good thing. that's So

per or cycle. calculating you per if So you like do yield yield the script like

that per we the call in it, was cycle, off due I quarter primarily second mix. and more, what So favorable a did to it went yield

realizing more pricing there's retail So of a balanced a and in just FP&A, of we one we're of then is the quarter put there. that's lot non-retail. some that that's non-retail, in look, now because on say too, footnote on got gray when differences And to shades there, on a things

things it's the somewhere because what FP&A a of considering think that's came he the of we fourth as kind hybrid, spot one we're the we middle. called in nearest but of So it what

is pricing you saw fixed the COGS. stronger, profit, is which we've the mix gross then comments allocations better, in And with great. So the is our outgrown some as in of

margin So the is improving.

you in, so continue versus a those our to we we've margin off would would just And as continue, continue throwing we It to to or commented in tough those on a starting why expect I that to So then see all in throwing to COGS, things. we're see if improve And pretty -- business. script that's as in have now we off we yield mix. deliver to will us this the was significant. expect to continue nice, we become better on see my variable, more outgrown we can if cash retail get COGS in zooming that's

So that's a thing. nice

grows, as OpEx continued that efficient [indiscernible] Code hopefully, our So ZIP been cost gap. our and that's in, close space then are we to that we've and the model built, save becomes partnering revenue Amy why we're for the more in

So we generating more also to and this took start the everything looking Every line ability metric cash that's is why top in better nicely. in our kicking off business. is and

question, gross a that of to a that such anticipated base is grows, flat just us wondering, had the bigger remind of grow to performance-based -- How just sales net? as versus per that how on fast your with But if side, -- actually my sorry, piece as -- guess, just margin even value costs? non-retail that cycle, cost mentioned underlying you of which can channel does net they get how variable incentives. to and gross weighted your do Corium magnitude on you commitment sort that layer they the You the your your next COGS just just regardless can Afaxys, fixed your fixed, of increase. interrupt. to I'm what's I you And quarterly just

Yes.

COGS So first. let's do

Amy is months most of I if think, year, you first mentioned, months you the internally reduced reduce -- the much I look able the months how it's eye-opening X our As impressive right? So at Oren, we've cost the off year it's things, think versus last X OpEx the look of P&L our in one this ago, help first -- in our X fixed in at allocating we're if board, is our that's costs What described. COGS business. we've the But to people were we've we Amy OpEx allocating also the COGS. here taken been model spending run that that

look, we've been too. that, able So to reduce

to reduce the hit lines, effort OpEx not the SG&A So hit it only also but COGS.

is much forward, going good the not allocations So COGS news into there's anymore. going

The a there's reductions part, sales. the going with like Afaxys offsets people we're continue to are bit, but the that going relationships Amy our in So described to little most That's be incentives it's improve. variable. for that's why signaling of to

they the run So net line. through sales

see that's that. you'll So where

the there's GPO of grows retail. a less the those big mix to are on that's of -- -- Afaxys becoming brings our cheaper business portion the like ones on people So and relationship, as FP&A Amy

So to mix. what that's as I'm referring

are the So running those that's reduction of all sales. incentives through

if makes able our sense. with even those, so increase And we've to that per yield been cycle,

shape. efficient doing the efficient. can everything -- I'll more is even now It's gets efficient, this takes So [indiscernible] leave model becoming that we really model we're with just as just you Oren. it becoming

to for the part. are that business It's incentivized or simple for most Amy don't get they paid. most our part as partners, grow Our the mentioned, just

And fixed keep in in across leaner. now opening aligned And our their ours. the incentives are general whole so can costs we the meantime, with

you're segueing looking next my my at keep You here. page like to question,

telemedicine so do good incentives the to are partners of others. out the are of a job, I Speaking far? channels how there Nurx and mean working your

they turned fully last How up it channel, for not regards I offering or of, and an And board they per a maybe trained about terms terms it targets could to go set being to how promoting se. women option on you the they maybe talked in go. in are ready think for when Nurx you with quarter, are into this products, of I the doing the has in had arrangement? partnership. of been on while just that But I they patients? hitting But or sort as Twirla you appropriate Nurx doing call are guess, being think

jump I'll thank you. Oren, Yes. in,

partners, great I'm in partner. patch when offer we our telemedicine always just some we're But growing right, slow have have. of again, over their They're that so a week. happening structural pleased Nurx, of their of their that's month Again, they our to partners, the of channels growth week now the them look send a at May. They're on month start only changes team. distribution over were We signed and out, lucky end very All we have and but they year, as bit of their a because signed month. over that see you're we're was them Health, days patch growth. last officially I now It end, as to lucky at certainly a Twentyeight early they there. solid through And on

meaningful think best telemedicine to thing year XX is group, our the age it's olds. I a is partners to channel of the women our that about XX

broken ceiling the branded Twirla products going products, one for of be them. And been on it's these offered the channels. of to a has kind So first available always branded and bit

take negative at the while help growth, does half the year, of of of that telemedicine. the is confident process going will We're retail of first positive be about due lot slowness I'm part than back But a we the see any type up year. to that sometimes. upside, that the to But the upsetting So because in process some about a alone. that the make up training of it them and a the happened set of we changes to stand more in we the and as

going coverage and executive to order Washington a a picture, Bigger coverage lack or think. contraceptives. bunch, to of What's right. All administration this down health maybe come hinting a part while? specifically care in there, do into of to have is of such terms been third words change, where Al, if women's of activities that for especially of health you're been related seen we're on And actions an I interesting. -- there out is potential they've women's anything expect versus an enforcement this health at narrative? women's election you cycle heading We've important

answer is the the mean the think mean on I to The I The the being administration Wade clearly the us, yes. a discussion. that order of Roe I Wade was to it don't ports a Biden or very is Roe that them. signaling executive symbolism surprise abortion broadest v. anniversary. sense v. complicated important on in discussion women's health is is

women. contraception, So important contraception see as an believe for see we they win they

as -- that So military Medicare I'm TRICARE, us, which executive the things like including sorry, also order, including are saw, is Medicaid. you

had just we So plan. a X-point

lot So contraception of a needed work.

that we to like access on get discussions, to have that don't generic us country. clarify products that that believe to we to -- So approved equivalents based and my all for do this the were once right needs thing is

So we you believe I pace when. I have. handle that I I it's on say, Washington know that's it when. tell would coming. because in if thought a I different I than tell shouldn't don't had you a I can't

personally, put mean what don't to thing. us. there's it's our so to this a believe communicate that sustainable Amy enforcement vast in, growing Oren, channel think, is because up lives under every and We have still stake that's while administer model to it's believe I I the I PBMs coming. We but this plan believe to don't X created country, has a every is We investors. in is upside think here them that an that's tried is that to control we of answer what majority upside we -- growing we've that, in

So it's unwielding.

PBMs, Act say plan. and implementation could really been the downstream You Affordable has the that's of Care but true, the

there's think we the the of out oversight would and we of regs, then enforcement that be going monitor administration a bit stating clearly chasing think to is the of get be think these from answer. And just this that a will. expect you We also end new enforcement I on tail. what I I that lot if it's the the regulations ultimate will said, that So agencies to think back

So out don't you will have to think the degree that coming blowing on over, guide our sales. But third something quarter, more control should I I to I it's put don't it's coming. want know then high think wind I we're meantime, of confidence. in in a but just the

All right.

As of the I I any to like do see conference At this remarks. Altomari moment, the not questions. Al turn closing would to other back for point,

To our you. callers, of would preempted you a my thoughtful for like final the in It Thank questions. the looked Oren, which is thank that proof couple Right. you I is the a in progress. great. so thought is say I guess statement,

We are this saying to not going this is happen. saying We're is happening.

in feel our time have isn't to And other the continues up the hand, in data the and channels. Retail in on all I've far, of first XXXX, of in We time in that is revenue come what every asked XXX%. and grow. to that you is channel. and that the out For third about down so on the nearly XX%. the momentum continues that And year grow. is still seen I that metric net X quarters any first record important Non-retail X based say months momentum the me, continuing. Oren saw us. versus months we're to this great one seeing that's and It's quarter Amy of as OpEx,

has momentum Oren telemedicine, question her the about asked grown. the in mentioned Amy had As there

our So all, we've all year. hit growth layering on guidance continued given a and on in because all, you we're first our just we're channels of quest for the for to once

in results. is that confident that see total of business. you we're hopefully, why And So the prize on quarter's ultimate cash the based this

you Thank thank following us. story, for attention. for and appreciate you, your to So you you everybody. staying our close Thank we

for This participating. concludes call. Thank today's conference you

disconnect. now may You