Alimera Sciences (ALIM) 18 May 232023 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Good morning, and welcome to the Alimera Sciences Corporate Update Conference Call. [Operator Instructions] Participants of this call are advised that the audio of this conference call is being broadcast live over the Internet and is also being recorded for playback purposes. A webcast replay of the call will be available approximately 1 hour after the end of the call through August 18, 2023. I would now like to turn the call over to Scott Gordon of CORE IR, the company's Investor Relations firm. Please go ahead, sir.

you in thank conference and morning, for today's participating call. Good

are from Russell President Officer. Alimera's me Rick Skibsted, leadership Financial and Joining Officer; team Eiswirth, Executive and Chief Chief

statements be operating performance, financial results of forward-looking will for impact and management the transactions. call, Alimera's expectations this statements, During including recent that and address future making

Forward-looking statements differ factors from statements. those other materially cause may involve that risks and to actual results

press refer reports release financial its to most that For forecasted in Form particularly be the that factors accompanies discussion risks, more information EBITDA, performance. call the adjusted can the Alimera's periodic evaluating about measure described cautionary with it. Today's and XX-Q, recently Form of this please in includes filed filed the statements Alimera on these XX-K, call, in X-K non-GAAP a Alimera's risk Form SEC believes conference useful

that or accurate update contains Rick, additional more and this revise results sensitive refer call obligation to law, isolation consider ahead. any after Rick by please call related this certain for to release prepared not over EyePoint's information Alimera's XXXX. call to call. It of occur content turn has historical Except non-GAAP also required from financial to this my publicly pleasure Eiswirth. of accordance discusses information The information only events that results time measure. This today, is as as as XX, for SEC to is any circumstances with the or been May Alimera go to in now reflect should information This GAAP. disclaims Please information use of Pharmaceuticals. information a derived press substitute filings. EyePoint this operating in You regarding Alimera's or

transformative with you postpone. This pending was everyone. nature delay good a I'd this the acquisition of the we're last and all of news, days few morning morning, thank it best we Scott, you, your to call. for our given patience Alimera. Thank But the for announcing to like to felt

the add very from to to to U.S. ability our commercial acquired for and have excited are additional rights Yutiq Yutiq We specifically, EyePoint Pharmaceuticals portfolio.

for Yutiq, to leverage strategic built Yutiq. we've The ILUVIEN discussion topic concept As that important of brands always some been it and asset looking company years one acquisition, found belief that their and in the was investors, X customers of several for great believe first to you're thought right time we has sense. our combining been retina infrastructure commercial aware, find the now. We asset one support we've and team bringing we a ILUVIEN a and under employees these makes such amongst for given together our a to

of those affecting treatment microgram Yutiq fluocinolone who noninfectious insert, the ILUVIEN. don't the And much it United know, of in eye. the our States X.XX a for you is segment posterior like product of approved intravitreal acetonide is uveitis the For chronic

Our recurrence on licensed $XX having the current entities. many EyePoint's This for around a in product acquisition from strong growth XXXX. This makes inflammation significant control into low asset in for continuous ability centered messaging of space, sense strong of the consistent same underlying been for technology to patients. million EyePoint generated has ILUVIEN revenue is corticosteroid of calm by driven the a us business in so a dose resulting uveitic reasons. Yutiq based of retina in over brand has grown the predecessor one

markets Both since drug Yutiq's for contain months. Historically, up due messaging. with asset, anti-inflammatory deliver its also very to XXXX. our the We fluocinolone of acetonide, been same and to behind has but to already our ILUVIEN XX European indication for very ILUVIEN, ILUVIEN experience use messaging of our both familiar continuous microdose the consistent corticosteroid, same value technology to the not with products UBI in only similarities are the this because commercializing

calm promoted we has continuous sustained of suffering and been for as to to positioned the diabetic DME, continuous mechanism uveitis. or, both both While significant patients is deliver providing Yutiq release the microdosing macular overlap base reduce daily calling have in edema, and recurrence in the from to ILUVIEN customer share is practically products retina already promise the that U.S., products. Further, same same the detail on ILUVIEN. with Both the specialists are for there the we

of specialists need We and We're will new list, uveitis have physicians. XXX market. is several which commercial we excited target join this between expanded team Alimera to to add members to XXX to the our Yutiq very support estimate

number both as integration expect promoting integrate and day least to we clinical a increase has second we As in XX% of Yutiq there this individuals in year. expansion serve known increase engagement at the to retina be XX a of account of territories shown Yutiq reps often. the of Alimera, the planned CAS into CAS impact an both brands XX that and frequency doctors the their the and as least number more means the with utilization, half XX% products us believe at to in will allow CAS, more well increased detailing will every who specialists the reach This see will increase to detailing specialists, ILUVIEN. We physicians of supporting been in of have number been and to number to

discussion specialists. the relative the will each our have disadvantaged CAS a products effective have reasons their of familiarity been retina on are to second we the should with to indications past, multiple these a our competitors make to engagements have because specialists. as with market the greater Additionally, product leading more more retina In by

DME finances accretive transaction this and a impact Alimera. with immediately EBITDA discuss that second continuous to be the across will most We the recall indications believe continuous steroids half of the We XXXX. positive future adjusted revenue relationships treat multiple expect and that importantly, calm. And uveitis utilizing Alimera this of transaction have low-dose of micro profound on will to the contribute will technology and in for physicians' to strengthen ability and only long-term the benefits deliver truly the

a recently in combined million products, on ILUVIEN for revenue both and million similarities Yutiq seasonally first XXXX, typically ILUVIEN there targets, sales Yutiq quarter in the low overlap for in recognized $X.X As we be that Monday, quarter. On million product reported a commercializing the and $XX.X our these Because the we while in in QX we reported basis, significant believe synergies revenue $XX.X together. customer will in the of in generated products quarter. EyePoint

XXXX half in will net excess XXXX Alimera. We result, the over to Russell XXXX. With the those of review details we call adjusted and And the in now turn expect the $XXX of in our more into positive million of to a million I begin and see continue EBITDA to in synergies results quarter transaction. integrate to for revenues expecting over seeing as Yutiq further financial financial of consolidated as second are we and the $XX that, first

Rick. Thanks,

First, a few comments about the quarter. first

and Not We approximately the facility. We revenue This a our units the lowered Cap, us increased which physicians During extended X. XXXX, real primarily in included cash March, units which revenue initiatives our earlier. U.S. of refer in these increased Series increased segment believe we in the new believe the cap, a this that A overhang of $XX cost Stock series steps to on announced SLR repurchase to our pharmacies and our XXXX. capital XX% to in XX% did preference. XXX distributors, XX% the the $XX.X capital international only which 'XX first to $XX to as common first first of end-user year our is product equity the of Tranche million. to Net of foundation the GAAP future eliminating loan a structure, also product 'XX, add X% our announced QX refinanced we demand, term and units, purchased first strategic $X.X its The U.S. revenue by success. as of our million the from to million we to year-over-year X,XXX million but for increased compared maturity allowed represents improve Preferred value units from by of lay of quarter today. to quarter quarter first XXXX. In we we to the quarter. the of transactions liquidation focus our returns Alimera's increase increase revenue like one to $X.X important in late due million quarter our first shareholders more compared of XX% in with in for

then in Now equal increasing from thresholds $XX in $X.XX potential regarding and quarterly based will thereafter. transaction. through XXXX. Under revenues our in excess at million royalties made certain of net with XXXX $XX an EyePoint announced of we ILUVIEN EyePoint, today's certain Yutiq also XXXX from the agreement installments payment an U.S. million in quarter terms and $X.X combined additional on pay in each beginning million XXXX -- sorry, I'm will of and million of annually upfront receive

capital the vote it? any Annual Tranche converts Partners, to in to intend not to interest with new and Tranche the approve made great Series Preferred and the to our the the by attracting its loan about working did capital placement Series simplifying funded Further, our Alimera how X B Velan issuance of common borrowing million believe great of amendment Capital $X.X will upon and with common structure, of from million agreement existing reduce B shareholders million number include progress So private B warrants. Shareholder a and to investors. and B $XX upfront step to Series investors stock X an pay We for new led from Caligan all agreed the $XX additional our an did Preferred. Meeting Series stock is warrants in which to We investors the we syndicate term $X.X approved conversion have million. have of Stock payment obtained a we of a Preferred stock, Once a additional at common through broad Capital. The SLR

year-over-year an So we get? mentioned, did a product, has getting We're strong that Rick sales as excellent growth. what

only on We know in bottom very the in product, to basis. of we revenue also of line, because well, infrastructure, this expect a our we $XX Yutiq Not incremental amount the quite go-forward our selling expect since but significant revenue we it order. existing been and do to administrative short outside significant a U.S. while. for -- we add XXXX to expect annually top a we've growth in line in drop an from about the commercial infrastructure indication have know We million

with the to we On with adjusted be the $XXX in cash of our revenue expecting transaction, As XXXX. his proceeds $XX private consolidated EyePoint cash $XX are funded this positive to $XX.X the But in had with as XX, the term our million million back mentioned the March of excess million be we XXXX, we upfront additional borrowing $XX connection loan. I new million and Rick will in million from million equivalents of our $XX of to to closing from and now million million. net an transaction, mentioned, Rick payment existing transformational payment for earlier, capital and EBITDA over turn Rick? $XX our remarks. of placement $XX call under --

Russell. you, Thank

said I this As complete very earlier, excited transaction. I'm to

significantly into our continue products of portfolio in leverage platform to makes to Our for patients. our moving for specialists goal grow to to products and their been retina forward. on additional also and companies It us of commercial company Alimera The us focused one retina few stability, and to a transformed addition the focused base to very have outlook our positioning has customer our space. multiple uniquely financial look Yutiq

questions, I NEW also DAY study. to nearing Before -- the are operator highlight in of we call enrollment for over I call the our to the that want turn landmark completion

or injections. I see this DME. and patients to this expect randomized this As longer the we be of and to patients initial leading enrolled taking suffering in goal of from fewer is ILUVIEN paradigm-shifting forward the patients comparison early trial, help usage in data much of the XXXX naive our in Remember, achieve that your look anti-VEGF now naive questions. of with needed X we better, this morning, to XXX more head-to-head only study. near treatment in patients ILUVIEN facilitate Operator? to earlier DME will From of

[Operator Instructions] comes from Group. And our Alex Nowak first of Capital question Craig-Hallum

Congrats Russell. acquisition on here, Rick the and

now. You've known long the team EyePoint time for a very

make it now bring Yutiq the product here? on did why Just to sense

and both has like growing over into the will revenue Well, fantastic companies too over as to year. We EyePoint Alex, U.S., all, they'll a the material I $XX and $XX year, do $XX in this we million we a have time for often EyePoint I right million along did just it's almost seemed million do of -- -- the said, mean, it discussed something do this product think I time, job -- quite this with brand think it. in last first done

product a some by more to here XX commercial XX an a see I end. will excuse has team get to the team moved profitability their think share they that adding will reach bit have to opportunity me, a it reach, XX see that reps they it, and on further -- some back little into with now

just together at the products So sense put point. makes to this

just when No, start it be forward. I on clear, put the sense. Alimera the to want expense going for structure total makes to here models we together

additional So XX% be G&A needed a X the line, office on needed we any to force should the combine back about that products? expenses expect increase. Any sales will

operate these support for Yes, the X you product time because we to will being, brands. expenses certainly more are continue as the going to to see

dollars. additional you marketing going So to are have

access that. additional support market like things have and You'll and

-- prepared the able second specific need the work into after to will give more quarter. to do we it look like on give levels the today not be in, we but the when So to talk integrate spending guidance you will we to because insight around to we're we'll spending product what

of it's kind next that leads interesting. always question, been which And into is my

companies different X bags had different X a different X from drug, similar names X different X but and You've very selling always reps. indications, really brand

products The about one how the adoption X acceleration point, an we the years? combine I think at products of over you under coming So to rep you could that? now what revenue is assuming million happen can of products these $XXX should some that frequently. What of that And both in mean, you then these brands guidance here in are for adoption there combine bag. the in more

lot talking EYLEA, of our prepared referenced both So like I from every One person call And up Alimera vein to they the indications, about AMD Alex, there's new. OZURDEX So doctor see retinal talking one for in, it the of growth physician, that in about an talking space talking occlusion, as discussion accelerate about frankly, they're competitors these the indications, an was the that promoting. It then pick right? that, with they're my or adds or or a they're wet approved that Alimera the more familiarity question about they're bag, from and in think this can with right? there. in uveitis other on drug use rep depending which is talking as in the other multiple combining lengthy something Look, comparable multiple multiple drugs and they're needs it a of one there's able is patient are DME, for helps time I a doctor. to to the a or the products, comes comments they right, patient drugs things and reasons

and a with that's can on doctor versa Yutiq get vice there's think a the a of the ILUVIEN more of So the Yutiq or just whether add And obviously, ILUVIEN about more on an I relationships doctor conversation. do going as to strong is doctor in-depth well. you talk effect using it halo be using and

think lot into I that, that time. be there's leverage goes we'll a able So over to that

been not As growing far like to goes, faster have Yutiq a EyePoint XXXX. prepared ILUVIEN excuse that. and give teens me, on million number guidance pretty $XXX or we has rate for that as but in $XXX us given million, specific before we're sense the growth than comfortable makes we actually low -- feel for that the breakout little We're XX% to

then That just question. Okay. And last sense. makes

the some And there. if input XXXX you royalty Is it when as to from rate provide Just of close? does can today? then XXXX, closing deal the

Yes.

yesterday actually as the of So morning. transaction closed

be millions. Frankly, transaction not completed rate has will it reasons low digits, single-digit be or the we it's going competitive specific royalty digits, during royalty yesterday. it's products. the closed based success. -- discuss day in respect With -- for be the to other to could probably to The the the been So to on the rate, for as we're going look in double mid-double it's

and the product we're sales successful. commercial number, because EyePoint bigger participates team. a in big it's force very putting the into if And only it's of success the So the

of The next Global Alliance question comes from Jim Partners. Molloy

$XX which the the -- had XXXX why already, indicate royalty is Yutiq ILUVIEN you'll XX the do rate, done. be down paying getting to that's in combination good the and question mid-$XX to on Congratulations would transaction 'XX -- growth Yutiq the at on my from 'XX, million conservative? that in expectation be $XX of ILUVIEN Is on had consensus seems a a on, looking adding happening in of thoughts went the million being out? And your of I on sort $XX it growth. $XX in It like of may guys in estimates what and rate. -- 'XX want market? you get millions million estimates slowed which it XXXX, million pretty in I

Yes.

So a comments transaction. the couple structure Jim, the of on of

have options consolidate Alex we to in alluded brands, labels. future the various consolidate to, As would the there's that potentially the

We together what could And strategically. under both But there one going be frankly, over of years. things and to work look do of that haven't the EyePoint possibilities lot we a blended on made better. of there brand. us next at were the we aware decision to think certainly, couple want the any brands We're options

participation And so why forward. going to brands going in EyePoint that's both is receive some

a the would we million. certainly rather said and not than we give we so overdeliver underpromise million, to say $XXX to we in over other going be that where I'm respect can number again, With move guidance to $XXX position specific a to forward. -- We as

is add U.S. one the sales, not combined thing too, based can royalty I sales. on if I think global Jim, is,

of ex the to -- amount you would a sales. includes $XX U.S. million we significant referred So

or that level royalties. included So trigger not would be those the in

follow-up Yutiq Maybe please. -- excluded Yes. one I Of the various countries? of they $XX.X is that the in in sales, 'XX how quick if excluded million could, of much reported

Very, very little vast it. majority of the of The it. Very, was that very U.S. little in of

of next Wainwright. comes The Yi from question H.C. Chen

how question much sales going first marketing My expenses, in and especially is we expenses, operating expect shall increase forward?

want do address to that? Russell, you

Yes.

be -- not total partially provide. EyePoint We're to steady on we state going out increase, Rick you we expecting of on the, a find costs about is we the back of spending increase a We would are not increase one-for-one able as transition have. will at the certainly we're guidance incremental will looking have mentioned that need be the most what as the that lot we're going how office because think opposed to incremental giving to any is to because costs call commercial be administrative we to if earlier, that the some additional so -- of not synergies let's complete say to incremental works. I in we're that is answer it,

we'll -- know that line mentioned such give for a to and get guidance to we expect, transformational -- a going complete I -- incremental we'll So the to which the be prepared -- if the that as don't going more but this helped good you, us, us. for drop deal is bring be why we in is there that to think costs, transition. as I is comments, able is as of to bottom because but give which transaction be the in will I able incremental of synergies, my we do revenue we the

the change is increase target that you ophthalmologists that any you that ILUVIEN of ILUVIEN going way to mean, and physicians now talk the there in or Yutiq market you significantly Yutiq? is number And your you I have both forward hand? it. now in market Got

uveitis our certainly that so. are are Yes, -- physicians to specific in forward. there going think that will treat target I be base I that going mean

the in said is targets maybe XX going our between comments, way that add XXX target at to expect from handle my I the to looking XXX to sales to EyePoint's force already. As by to And we XX reps. to physicians increasing list we're

think messaging, far products. we is marketing messaging and consistent both the as As very marketing very, between the the and

it recurrence how delivers has talked what is the microdosing we works been I sense the we talk about it said, continuous continuous continuous that does of makes Yutiq the reduce continuous with and Historically, calm. the perfect microdosing think it disease. which calm, just with about deliver, As to that

of we lot So merge there'll be together. a can that messaging ways

The on market Do a think talked Got about is of And X table demand it. that project EyePoint still you? the months ILUVIEN. question for Alimera last a both there version a still is previously is you for and that? development

to we a the have certainly do this transaction. as of as right able result that move to We forward be

both is expect in that come, combined rights as now indications right cash technology. at where that to It's for But options our those the be across looking in been years not be we on are situation generating we well. we So development have a list will something certainly now. additional material flow to

question-and-answer This conference closing session. concludes I like over remarks. the any Rick to back would our turn to Eiswirth for

forward in Thank Great. we're about a report very details Thanks, excited as interest progress day. it call results your great summer. much quarter and and on you in Obviously, on for you. Thank later today's and participating looking more this we're have sharing and transaction, on second the all our everyone, Alimera. we to very

disconnect. today's Thank and you may for The conference you concluded. now has attending presentation, now