Alimera Sciences (ALIM) 10 Aug 232023 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Good morning, and welcome to the Alimera Sciences Second Quarter 2023 Financial Results Conference Call. [Operator Instructions].

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

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

forward-looking During statements expectations this future operational or performance will call, be for including that address management statements Alimera's results. making

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

Form in on risks, the information refer to this and described about Form factors reports, periodic these accompanies please as Alimera's Alimera's more cautionary as recently-filed For risk most that it. well press XX-Q, XX-K the statements release in particularly call,

consider includes call additional or isolation a can conference non-GAAP useful information financial substitute adjusted that as prepared in for adjusted Today's not net GAAP. be product performance. revenue, accordance this EBITDA and its with in in believes Alimera evaluating results measures should We

in measures, The time-sensitive GAAP a the this reconciliation these directly or required that as For any of information reconciliation located comparable only as XXXX. earnings financial information Except measures most call please contains see of or any their law, reflect publicly this Alimera's Alimera to press August financial disclaims that non-GAAP to events XX, table accurate content of obligation after revise today, occur to is call. by update circumstances release.

go now my ahead. please to over Rick, is It Eiswirth. pleasure to call turn Rick the

and to call. morning everyone Scott, good you, the Thank on

performance developments be foundation strong to Alimera exciting The retinal the we transform of to for and treating second building into I'm in quarter been has by disease. are and Alimera, encouraged the full place

from disease. second only rights quarter by retinal delivering a brings made we commercial transaction injections to long-term the EyePoint vision microdosing fewer to YUTIQ therapies with X intravitreal help approved Pharmaceuticals. reduce the acquire the that patients This longer know, the continuous during of together to recurrence probably you maintain As transformative

the our second have as this Importantly, commercial we infrastructure us a U.S. in to of international Alimera. it revenue critical stability provides has our a markets, help with of indication, mass allowed long-term ensure transaction and already leverage to

of second YUTIQ ILUVIEN teams QX incorporating on to our half and focused training The operations is our sell both and cross primarily YUTIQ. into

team expanded XX. fully from territories regions, field and first selling in half XX year, the in across territories the up covering X of Our week trained YUTIQ the and both XX July of now was the beginning ILUVIEN

also liaison, medical have science and thought We field. the our leader teams support reimbursement beyond expanded in

weeks achieving everyone at effort the transaction. important I of the Alimera since the into went milestone that thank want than less to this significant closing XX for in

acquisition in Despite by some positive second during process, quarter. deliver in created our positive to on this allowing the adjusted the distractions impact X having only EBITDA the the product despite had Alimera, portfolio for quarter an weeks immediate us

end we the grow the demand including growth units, XXX saw business units International acquisition, as of continues over Our quarter quarterly XX% in global another of year. to of XXXX, XX.X% to demand of last full of up X,XXX over added total global X,XXX segment, user outstanding revenue units, X,XXX ILUVIEN was numbers was fluocinolone of EyePoint, drove quarter franchise. end-user $XX.X record on bringing up acetonide which over over XX% Based And YUTIQ we second quarter, second the the since by quarterly That for our million. during for demand the user the demand up units record quarter demand end YUTIQ our reported XXXX. QX

some our a result commercial believe are the of quarter result, We aspects we higher of pleased have for YUTIQ but this could the even acquisition of planning of the into as been infrastructure. incorporation YUTIQ with during and revenue

we those team some YUTIQ building new maintain in alignment who QX vacancies their Retina sales order and had board. territory our are the sort in new turnover with than associated we teams, the out field transaction, we to would in with commercial on normally longer the to into Prior entrants

legacy segment. to a at of for time distributors field of into supply we ILUVIEN sales shifting the reducing we affecting our force combined the distribution posterior Further, out and learn hand invested chronic had YUTIQ timing YUTIQ about also inventory international partners chain. We the with non-infectious YUTIQ uveitis our as and

adjusted the will In we the that commercial EBITDA to expect year, half yield of the second the and half itself, year. second further our only incorporating of we revenue but into structure correct further believe this YUTIQ growth not also increased for

booth both Retinal the together, at at industry expect our company. we we pleased have customers the that Society presence our both boards products at merged in the that are showcased first to feedback Now able the combined we of Surgeons, YUTIQ with and from American with Recently, We having received meetings. advisory product to at Alimera's on we're also a products meeting. broader hold were physicians

more And with over our detail. that, in I'll Russell, now the review who financials turn to will call

which million Thanks, the XX% through addition million to approximately the second This into included million product compared the May U.S. $XX.X 'XX. U.S. to for same the $X up YUTIQ $XX.X in $XX.X from primarily period the 'XX was to quarter. to for increased of revenue portfolio XX% XXXX product revenue to for Rick. due acquisition, $X.X the of XX. of of of revenue was was million U.S. approximately in date the quarter revenue approximately second compared increase about QX Product million YUTIQ quarter The for XXXX. midway

to our Further, without we mentioned, commercial higher training our and inventory expect rectified field the transfer we time distribution work As from as purchasing revenue our us and users. -- turnover been entrants to on YUTIQ hand, they to the to chain fewer of transition could the recently to supply units vendors vendors, this end to difference quarter. related XX% reduced to teams YUTIQ both need our and distributors this need new the the products. than be have spend completed sold We believe Rick for the for

in product QX net $X.X same for International flat which the was 'XX. approximately QX revenue 'XX, remained million at

said, shipping our year, we quarter. second experienced who were timing demand up segment. second units in distribution more Rick with partners outstanding the ship end-user As our we the able to end than quarter was them during sold to to users but discrepancy over It was International XX% XX% last international

to We the corrected be of expect second half this in this year.

debt operating to the same $X.X expenses due to million The QX to YUTIQ and Total increase million $XXX,XXX the compared the were last $XX.X was in in transaction. million in amortization for in year. approximately asset new 'XX approximately approximately primarily $XX.X intangible related bad of expense approximately period

which upon compared March approximately X XX, XXXX. approximately million cash May where conversion both we million at Alimera B XX, of the The and to $XX.X the Series approximately of XX, XXXX, equivalents X into As common stock. June approved million the and shares had of conjunction of XX second XX, On from conversion preferred, stock with of and transaction, in tranche Series completed triggered YUTIQ cash and $XX.X Series closing first added preferred. common equity the in of was comprised of equity, the $X.X million $XX X, be million be $XX B stock from purchase we debt. August converted of stock an shares. Series the prefunded completed and tranche common issuance financing shares plus in conversion $XX.X the On equivalents B the into of additional common August shareholders stock tranche to common million in mandatory of raised million million in about B will the tranche to the quarter common stock The warrants X, our which will on for the preferred term

Rick will you his now closing give comments.

our towards portfolio goal multiple of focused way Thank on few to also on specialists very this our X patients. outlook financial company significantly and products you, addition Russell. our to companies into The well YUTIQ a to grow of makes It space. have stability. and the focused retina Alimera our in We're commercial their retina uniquely transforms

the year, a looking bring expect drive our to positioning and our and we further for ILUVIEN improved YUTIQ at and financial For leverage Alimera of activities infrastructure strong in the XXXX. ways commercial to to performance, together remainder continue

we transaction, than $XX of generate expect revenue million in to As more in following EBITDA we $XXX said million XXXX. the and

with operator our leading Before trial, in of suffering I this I is diabetic edema ILUVIEN From XXXX completed longer we study. this of fewer shifting patients of Remember, the we patients to over that paradigm naive or to highlight better injections. data comparison in help anti-VEGF DAY to ILUVIEN call for that in the or usage and in early NEW expect enrollment treatment turn earlier DME DME. from head-to-head macular facilitate questions, see want landmark a the much also the near-naive will

you. over turn with to the operator I will And for call that, questions. Thank the

[Operator Instructions].

with Craig-Hallum. question first Alex Our Nowak comes from

this throughout the Okay, acquisition great. but closed, quarter. also here getting on obviously And integrated congrats

been are As unified maybe sales you couple initial here? last team, with the in single of has YUTIQ, even selling now and and sales going the team weeks out with a the both how integrated ILUVIEN traction

Yes.

right? using It's YUTIQ using a and for physician X easy an others, door Alex, into been time a I somebody to from we're may to basis, think opener but talk investors versa, a it uveitic think hear ILUVIEN utilization? indications about that to opportunity not I quite would you're long-term, together. a the already low-dose vice X not think what last to is it's out only using that have ASRS are, reps. for talked expanded the and obviously we good. an this and I about the early few I about provides week weeks opportunity indication, provides say, products And about combined these physicians great using say for X already look, having products at are So great a mean, it -- so it to why all I And similar a there on in teams feedback frankly, of steroid is

field excited bit in what the the bit whole good from for little it, reps of uptick what pretty the means already. an think but it's we're too I'm on little a early quarter. a that I is seeing are utilization, about hearing conclude and to And

did I a And little ILUVIEN would you the exclude than from great have thought. in it bit YUTIQ if to look sales like maybe That's flat more hear. QX, was

anything the than territories some just of expected? maybe Just longer sitting this there going a Or on in is out the with there? force, sales particular disruption with

Yes.

thinking that did we experience in took to I closed. And it us those think some would that, held and get -- because I bring the a there longer from be did and positions bit transaction have people we those EyePoint open, we did over some little some trips, mean, of that. to territories obviously we open

some I as said. had So positions open, we

effort takes small attention the get launch of the I do big think there impact was just a Apellis strayed We're trying to as there bit figure of doctors. a And practices. in conversations. made into and out those out longer, how to explaining they little of May push to SYFOVRE patients some their a a SYFOVRE to integrate from ILUVIEN because away their

of but So of we bit the both that we then of people a whether to related some might but less did presence it for product. second seen the the Atlanta is training May, open have over training of at on more brought field, the or into positions, it take them street was I think just the the because of even of out in quarter for on home slightly course little

the in So little a availability of the reduced some field bit.

you QX? sort into question What's follow-up QX or expenses here. there? into the kind is step on And to QX at go rate look of did the QX? And million that If your any additional run Okay. around going Or of that up QX. to $XX from OpEx, the expenses for Understood. then I so then expenses probably

were a -- amount adding. we're see side understand do is the is we to to incremental think, our yes, terms expect understanding If forward. our into to at this you'll the YUTIQ I'm so looking that part primarily of expenses this in -- additional can I is have, are probably nice go wouldn't expenses Russell. I much about help cash large expenses. existing not the of we we're there's think, really question, able I'm But transaction infrastructure, mean, If going that the commercial of fit it what in QX what expenses above it things. related I I And very

you if I adjustments, think probably you're the I math ballpark. yes, think those in So make

you Okay. Expected that last NEW just And is line steps readout just time last on now next patient Perfect. question the for the enrolled? DAY. had then

Yes.

expect quarter would XXXX, the early December was visit in last some patient and we So early last last in then so enrolled of in XXXX. readouts June, the patient of first

Thanks All congrats Excellent. the right. the update. all progress Well, on here. for

it. We Alex. appreciate Thanks,

from comes question James with Global next Partners. Our Alliance Molloy

apologize out I What sales, Did I What sales? of guys, the missed U.S. call. if was On $XX.XX the was some trouble it what the break YUTIQ, Had in. million U.S. you earlier in you ILUVIEN? logging YUTIQ?

$X Yes. It from YUTIQ. about that roughly pickup of was was a million

it you misunderstood walk walk expand Okay. Or of on the the sort then what turnover -- to leaving? How reps, Great. little you guys acquisition of And reps the currently? Can that many was the how mentioned the reps I please? -- a earlier, that, that can Were can maybe you you bit? meant. through have related me was

Yes.

both And in July well, products we of at We've out of we territories, Alimera XX field Jim, XX. X products. had across expanded all reps as to those as have of supporting as we XX today, So expanded territories have -- are -- ILUVIEN. and -- XX regions historically the we so territories on both of XX from supporting cross-trained now

The was X and market recently -- the the approved been roles into there attribute companies half expertise been so transaction. the approved in those open that those sort board, open of YUTIQ. reps lost X a I of referenced bring teams. the leave decision X of this the team and on the you wanted we as because until product we their We few at we looking have year, of to close year, those there to the that were was, left supporting from commercial the made first were and EyePoint entrants to We some last those have geographic earlier turnover know, just week, building

good, Excellent. Congrats, the income things that that a just COGS in quarter-to-quarter? the take fluctuations couple too came too, of from sort just out the been it's Or happen a to that kind least of in any Long that way quarter. the related positive at EBITDA is quarter. of pretty on and I positive in down Is YUTIQ? ops, saw sort noncash of getting -- the had goal.

to going say just I natural was it's quarter-to-quarter. to fluctuation due

Yes. was the to to Yes. on goes quarter-to-quarter Jim, distributor the partners. say, going based it I got you extent fluctuation

And had partners. where So the those in or we were our or of looks shipments into lesser we in the second have the that France quarters. to sell as higher half COGS the Spain, deferred Italy a we share we to some partners those revenue, of since year said,

the cost by or the debt year, million Okay. the liquidity. And last debt much tripling certainly last bringing thinking , first we it got capital maybe on and quarter at risk Understood. Great. what's from too the from bringing $XX and versus know question goes on a up about of so from lower in equity? I bankrupt

Yes.

year this we mean, creates next I leverage we're X We've you $XXX said, the comfortable -- EBITDA. us. given excited guidance and comfortable, in if as pretty very that the million than in calls revenue So that in more transaction are we've about we're last with very million $XX for

us, and starts that of generates think in be So as for service to a cash we'll $XX position as debt to amount grow, we a that it to EBITDA substantial in amortize. million continues

quarter. on good the Congrats

Absolutely. Yes.

Instructions]. [Operator

Chen Our next question with comes from H.C. Yi Wainwright.

main is, as will question ILUVIEN first top YUTIQ provide you well? growth? you could for forward, My serve driver going pretty Or do solid think do as growth line think the

Yi, great question. that's a

leverage do make -- of certain certainly aspects We adopt, that think line into if fluocinolone it accounts, goal I YUTIQ acetonide some of utilization will about asset. top franchise the is revenue our and to is low-dose that. the the drive are and we are to way that there easier

months on as going to indications of planning couple across we're brands promotional we're both based the our at see next XXXX. the we what XXXX mix of over for and I look in think activities

and possibility think more able a to to we So first. bit the try grow I learn it in need YUTIQ to we that's a that certainly than leverage but -- are faster more experience little ILUVIEN, get field little a

the now YUTIQ market indications? Got And ILUVIEN of do your that sales U.S. you it. a for it. international have think the positive will impact in both fact Got on you

and tell Probably intend YUTIQ some that Europe as a in strategies learn that. right, the U.S. way well, on I'll been adopt in early little and and try to EyePoint had we you, certainly to about from, to are learnings too bit tell we to market well, although some there taking as can do that the

of of well markets. the there And on think across advantages that do with which both, try things working big some were maybe well X so working I with that with best to together we well the across will bringing practices side, are both flip that try is global products some our really things YUTIQ. working to some are we really ILUVIEN, the brands, weren't create and can things

question, the last be will EBITDA you second for believe half do And Okay. year? positive adjusted the of that

in I were Yes, see do. obviously. lot of we the positive I I continue you'll sales force. to had very work the think them second the see same the to of line, around integration X the and frankly, do. planned And a because Yes, quarter EBITDA improvements into We, together the EBITDA products in pleased bringing

So what, $XXX,XXX we're pleased adjusted of EBITDA see, now. to

I think fourth improvements you'll in and see significant third quarter. that to

half YUTIQ Plus had we quarter. only for the

I'm everybody Well, That's to Go for right. want -- ahead, sorry. thank I

Sorry, I'm just back concludes to the call you, session, Rick. I just question-and-answer was our this turning over and saying

participating Alimera. assets progress We significant together to quarter very in Thank support report third want do today's X much. you we in our and I when thank your bringing results sharing November. forward to look interest call on for everyone and these of

a Thank you great very day. much, have and

today's concluded. has conference Thank presentation. for you attending now The

You all now disconnect. may