Fortress Biotech (FBIO) 11 Nov 222022 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Good afternoon and welcome to the Journey Medical's Third Quarter 2022 Financial Results and Corporate Update Conference Call. At this time, all participants are in a listen-only mode. [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 one hour after the end of the call for approximately 30 days. to CORE conference Relations IR like Matt over firm. now of Blazei the would turn call the to I company's Investor Please go ahead.

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

team will me of and are session. Chief Joining the Clinical Officer; Paolantonio, General Development Ramsey De be Medical for Financial Ernie Medical Q&A Srinivas Counsel; Journey Corporation's and Executive Claude Co-Founder Dr. joining President from us Maraoui, and Officer; Alloush, who Chief Affairs leadership Sidgiddi, VP

be forward-looking performance statements will that management Journey Medical’s future statements call for address or this During making including expectations results. operational

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

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

not prepared should GAAP. accordance this You or in in with for substitute additional as a isolation consider results information

to over Maraoui, It comparable and XX, measure is today, see the Executive of information sensitive Journey of by that after a non-GAAP call. that For this reflect contains my most Officers measure, circumstances obligation of you. President publicly pleasure events occur Thank press as required call to update or release. net as Journey earnings to Except Co-Founder, is only turn November revise to the time any Medical company's information Medical. financial law, financial Chief any this its loss, call disclaims this directly reconciliation of reconciliation Claude the now or table in accurate GAAP please to XXXX. located The content

and quarter third afternoon, XXXX everyone for Matt. Thanks, thanks call. conference Good to joining our

to than XX% did of year report the not September nine we of is ended meet the months of record for ended XXXX financial our continue XX, million. greater for nine revenues expectations, prior $XX.X which quarter third results the While months revenues million, $XX.X

Third was than XXXX. which of million, less was quarter $X.X quarter third the revenue $XX.X million

challenges which growth In third the the our brand. quarter the continued of the limited reflecting Targadox by $X when third the competition generic faced our revenue impact sector, quarter, in compared quarter macroeconomic addition was the million year, less prior to of against for for

the increase revenue third However, $X.X this the shortfall an was increase million versus by quarter offset prior of of in Accutane a year. XX% partially or

the of Qbrexza flagship and newly year-to-date along $XX.X Our million represented products, Accutane and our or with products launched XX% contributions Amzeeq revenue. of our Zilxi

August approved our for so IV data. sales the contribution expected anti-itch XXX together enrolled Phase development year our studies achieve litigation On portfolio the expanding which for robust growth X, the evaluated pleased for half Symphony of of clinical papulopustular treatment total XXXX. date XXXX rosacea in anticipate of Symphony This provide sales successful Medical completing in million million of DFD-XX for X from Europe the prescription company. XX according Padagis of patients near-term clinical $XXX settlements the in dermatology reiterate, in commercial in product growth an in data. to was with the in ratio ability prescription fiscal million according annually, double prescription than expected excess continued were: To meaningful million. suffering revenue the co-primary resulted in reduction by DFD-XX study, half future. in opportunity and of estimated throughout earlier plus Phase XXXX standard context than significant, X, DFD-XX endpoints believe positions believe overall continued for success. and X to XX% results entry XXXX. with will U.S. trials of our and products XXXX front, equates earlier with do XXXX in an MVOR-X the net the contribution data lesion one, respect billion with approximately Zilxi demonstrated had with providing United entry market Amzeeq market efficacy earlier in the the to our trial are we to in are to DFD-XX our two with IGA people in that XX, The To and no our for Journey X and that entry States the an an MVOR-X with the is candidate product the which NDA expect date the with revenue to have an sales an the being leader April in Oraycea total date launch second first no and care the than XXXX, XXXX, clinical two, and launched no inflammatory revenue runway and top-line enrollment able announce of year's product count; achieve our following: DFD-XX, $XX.X end for DFD-XX strengthening nearly We we in of our of paragraph both from July and Qbrexza filing We be estimated Once rosacea. XXXX to adults. current for Further to is that three opportunity to

our to our continued maximize we the the product launched to profitability. anti-itch launch growth expect ability With efficiencies, return to expected newly of our operations our products, of commercial expected internal and

for product results financial the to focus growth. continued our now products dermatology call with over De developing on Ernie review future With Paolantonio, candidates, through product continues will future our turn of third I'll combined the to the in-licensing, CFO novel and portfolio the sales that, expansion of acquisition industry-leading force strategic our cornerstone quarter. Our our and be who our

to or was third from quarter launched million $X.X of of sold $X The XXXX. for due of occurred $XX.X the expense a to results. to result versus contributing was the Qbrexza driven result the XXXX. will period quarter million of goods same Cost for was revenue million in as versus decrease September month million Zilxi. Also million Thanks, during three points revenue the in three three million offset an by third million incremental $X.X partially royalty $XX.X primarily period was products decrease and in reduction ended driven decreased lower ended rate to a percentage was in a the a reduction Targadox for XXXX. period everyone. Total $X.X for million of of by XX, decrease Claude, XX I royalty newly by May $X.X and XXXX of goods month royalties decrease a of due of in XXXX, hello, acquired Accutane the of September reduction primarily September Amzeeq XXXX. generic that and now million is XX, revenue that $X.X competition. $X.X The the our generic contractual cost period increase from the revenue million of financial a sold as by ended the third review XX, Targadox XXXX, quarter $XX.X competition product in Other XX% XXXX month of

patients R&D $X acquired related an being ended step increased related prior $X.X The was up as attributable from or development compared acquired our portfolio same decrease goods trials, program. cost to from Qbrexza, associated development products four of offset period related to were other million MVOR-X XXXX candidate, of related a million the newly of of in public of of to for three Research expenses the fees quarter and the $X.X expenses amortization sales to the $X the marketing period shareholders approximately million noncash month $X.X slightly goods quarter the increase to XXXX. for The Zilxi, in a $X.XX to Selling, Amzeeq well MVOR-X Amzeeq the expansion Dermira of development professional samples, additional ended result our Zilxi, third XX, $X.XX the testing product per of the XX, expenses of as Total XXXX trial and from addition, third resulted third for in and of to and licenses quarter of to general $XX.X two increase $XX.X XXXX. loss costs an goods XXXX. $XX.X and with Net of began as cost the our loss XXXX, were million additional the the or company. associated of to higher expanded to share primarily Phase common force, per shareholders freight million product September charges inventory for common month and expenses share net and sold in of year. of units for quarter the basic reflect X $XX.X approximately diluted for included In and of of for and the diluted period expenses for increase September which additional and related enrollment products inventory compared a basic of third the March in XXXX and administrative sold with million XXXX attributable million. Accutane, sold million Qbrexza finished higher by primarily of the of clinical costs three million dosing DFD-XX is launched

non-GAAP a and profit $XX.X net as resulted EBITDA we of diluted share quarter at share cash diluted. basic XXXX. At versus a XXXX related for adjusted in after basic of DFD-XX or million Our $X XX, in $X.XX the for loss or of expenses, adjusting to share $X.XX equivalents XXth, third cash per and to $XX.X December million and $X.X $X.XX net R&D per compared million per September had million

dollars, that cryptocurrency been Federal as to significant in turn a U.S. return to complete. The to an the breach. XXXX. with notification losses it And has could Once resulted will back government converted The to a letter cryptocurrency seize cash back to of the Claude. six update breach has or months associated long the take Medical that, company. September process amount of $X.X into the more Finally, to the Journey been cryptocurrency of initiate I'll in with million of able receive as

Ernie. Thank you,

few quarters portfolio our of performance we pivot our Our been over designed launched XXXX. with the we about Targadox. the remain faced heading during product last with challenges future has products the lifecycle And that newly strategy into optimistic have to expansion

products, call the you. over will turn and for also record to enrollment financial and add With our the trials year, portfolio. X prescription another are a strong both this calendar Phase of to excited for product to momentum We completing in revenues another now operator clinical about foundation expect I DFD-XX questions. launch year our of achieve the with Thank to continued we new for XXXX.

Scott [Operator from Our Capital. first Instructions] question comes with Henry ROTH

macro I be low tracking at thought some you're granted, of results because expectations thought I the kind you environment sort issue, within at do you guess the you'd getting the adjustments? but much from investment. you've added question a to end, that mean, since it were so may not sales the get Yes, of that necessarily end. force, return low and make the you're is, I

your got are on What you adjustments make Sometimes to that? as plays out. it thoughts

This Hi, one. I'll that is Scott. Claude. take

So, $XX.X third on revenue quarter lower yes, our side. the was million of

as up enter ramping we're we I QX, think here. think I things

grow expenses, team positive. looking to do efficiencies throughout and so we operating we of the from But prescription commercial organization, coming and good already expect capability ability base to things the And And forth. to whole are is a a here. cause of expenses various has taken ways marketing that. plan We've and our certainly up our our that's October. to care number So at

take at things we'll So everything, many into we'll look and consideration.

sequential I QX? this if -- of you feel will confident pretty QX do there year you growth be from Now, heard that to

-- we in get to we're haven't than better did QX. yet. know, just haven't guidance off any we repeatedly, say, know, you I given and We start I did think a as Like question I I QX this to

direction. And I the looking So right better. are that's in pointing trends the think, certainly

quarter. the so, end and assets So to last months understanding at of the or get where we're within we see four XX, landscape. of XX the launched now starting we'll a We've good up end the

are they originally, anticipated only new marketplace. also much of assets competition Some not at up we but enter -- rate picking than a such the Zilxi, had those products as and having are to Amzeeq competition the lower we

job good I seeing and again, goes. the the So getting organization a those commercial out growth marketing now. we'll sales think of And doing see some We're traction. how is good year-end

Okay.

do quarter, it guess where Just range, it's looking on of X X growth product, number there's think do room sequentially. great match last you that one you maybe I was up we're Or mean, big to just been we're do at third the think, How regardless. for But over down know I it brand million kind Accutane, that even think a about million specific you but that's product? here? I yes, it was plateau a is X per or million, to in quarter? from that

as relatively million; product. said, quarter. the We've Revenues for like our in quarter, Yes, new came I isotretinoin averaging, Accutane second about market historically, plus we QX, I you in down. about right, about X.X We quarter year, at the mean, first X.X this we about for did held XX.X%. million; share still it's look market X.X was did been

we the year. forward Do we're see opportunity rate into XXXX? run close the answer XX% move is, we is share. absolutely. to to The more for So, XX as million market And at million XX looking

from We climbed when zero position third the marketplace to out seventh position already have we We position. entering now with have last in the started up gone prescriptions.

programs we've really down in in great think already good So strategies made positions some brand execution. we've But tactical fashion come and a to is comes good in strong more perspective. there I And up to in lot It gains got room the a my in XXXX. that certainly moving marketplace. four

small just questions. two very And

know, you million situation. First, X.X wire fraud that

price get don't much think assume came it's Any to what went of cryptocurrency, But it could that transaction? Given back you do in can color out know think that about I what in, less out? you back you what come it than how that. even price on how you it's you? money

great to yes, Sure, pass question. Alloush, to that I'm Ramsey general going off counsel. our

Great. Scott. Hi,

back victims theft. you converted September of were as we that get a did portion. FBI significant recovered did inform that in cyber XXXX cryptocurrency, mentioned, mentioned. you they’ve of into As It us The

in what know now is So we right it’s are we -- sitting cryptocurrency.

administrative money example, as And guess proceedings measurement into all are -- so dollars. terms U.S. and time at complete that I of it will the for back is dollars, the which transferred where on Bitcoin, in the depend is the in using where

it'd will and still fourth is we a product, very Or question, launch? on a guess be that track Final wait see. that for anti-itch just guess I near quarter? I term

We us in And are supposed us. we're glad that, start Yes. Absolutely. queue. anticipated now to in this brand. supply the tubes given we with But are And that were taken When typically rectified line gets COVID, various timetable in and the That's COVID we've having back to there's from are July over to earlier. was weeks. line XX impacts, all and XX move potential past. our if to that anticipated XX our that, the we Ximino say frustrating on the on the issues and excipients to that that get take We lot weeks of. there work a continue someone for taking Exelderm, manufacturer for had particular care to with for this it's

on back CMO back part. to everything getting and pushed So the further seems keep

readiness, In of It's in sales on to terms messages, force, our just for terms the this waiting product. of to commercial of training we're take approved terms manufacturing materials, really the the go. marketing place ready in

are the we the manufacturer. So at of mercy

hit they We We of And constant a kind down. weekly good. setback. feel basis And and a it's us communications been on up then are them. with in with

near I for I it's in here So very have a believe future. coming the you. date don't just

Our with next Fitzgerald. from comes Folkes question Cantor Brandon

you XXX I XXX lastly, said to product. contextualize you or you product? behind the maybe may opportunity doing you how then need there, large you think worldwide? And viewing investments commercial U.S. achieve How million? million terms talk secondly, just this, And of can put that progress apologies little if very much. the it DFD-XX have in you commercial missed you about anti-itch the incremental out anything was a opportunity then bit for Thank you how Qbrexza, Can And you just of to just are about maybe that there?

Sure.

begin Brandon, Okay. hear to I good Thanks, Qbrexza. that you. will regarding

you this to we're of for terms demand is set how level of the the give doing just field generating brand that let kind from execution and and know a So in this.

towards of again, at a to year ended gain That if were XXXX, part the was end realm the few be under the at at XXXX, that prescriptions look out year, on Symphony year data, of you of of If up that anywhere last XX,XXX. was which with XXX,XXX last average from And prescriptions which looking the the months for That the would just acquisition, using XXX,XXX at finished Dermira, year. Eli Lilly. plus take XXXX, happen the a total in May. months to time to set over XX,XXX hitting it now, Qbrexza, approximately nine And year, now we middle average, then brought the over we're the in were XX% if right full a we prescriptions. of through prescriptions, the

that I perspective, see to generating us it's progress a commercial million rely a and of that And $X it quarterly look we're revenue highly when So tenured cycle, from when $X in in we on between front. looking then what million. at there team, I for at lot anywhere terms a and of regular sales on

brought additional milestone payment of rate Japan, our you're that million, $XX at potential top revenue We a received still we take look in you we milestone from to go of And to $X.X looking from run on nine quarter well full $XX three in as a add when that the Maruho through million. So million partners about has this in a in QX. months, $XX million when have at by Qbrexza then just itself months.

successful We we a XXXX, doing had, our have out It's the search then room all optimization, DTC the grow meeting that well. way brand our settlement the and that’s and believe that we been and expectations. with think strong ample that I on going over to So this engine certainly brand is providers we've the to And owning with time. the very doing front dermatologists. effort offices

their being I disease. a underarm is get really of in a on utilization. better well much really And We good provided a typically Patients they ramp is four that are think aware Qbrexza front can not reporting up this So even right? is more. aware it just this in that a that's XX% that to is sweating market of that some weeks product has position. want not certainly moderately to that better They're patients created,

So building this has all than more that's a characteristics brand of significantly million the over time. $XX

with In discuss globally backing going terms Ramsey jump also I'm talk -- more a bit of about rights Ernie exceptions. there. a DFD-XX, we to the DFD-XX, perhaps financial regarding have that. it a this And little to few then is have in about will

Brandon. Thanks, Hello, Claude.

revenues peak Just were million, to in U.S.-only. answer the at terms your the $XXX that of question we of looking

global do which mentioned, the countries. that they subject the Russia, includes countries, Brazil, are As BRIC a older, what Claude smaller India, as call we have to and CIS what exceptions, some as countries, well old as we rates, China, European know -- few Eastern small,

be opportunities, but our we so either co-develop in other see well as to develop Japan and Europe, or not able ourselves. outlicense do markets, And in to only

spends the get outside of think that to potential up thing question point. definitely it and discuss, there's And this Ernie running I I'll think U.S. to commercial to hand the So was I over to

Yes. Hi, Brandon.

once once of additional of And other to hadn't we and be product reps to be that the there marketing get guidance. that other of we territories identified sales addition given the identified. as would have, expenses, you side that, in are and commercial commercial products Similar the expenses up to number will will it, On the are running. the there for expect

that So for probably, I additional the brands on things, in expenses given other But for probably whatever. MSLs of spend there don't as fact. well. the will really introduction know marketing force we that or would we sales similar and our haven't be of one other some percentage But guidance

next with from comes Kalpit Riley. question Patel Our B.

will providing for taking you looking Or sort commercial XXXX, at your Zilxi revenue Kalpit, and overcome This revenues maybe thank growth you of I top-line guidance need point from for this to is you DFD-XX do the for see declining But Andy growth? know Accutane, revenue launch assets? in this and at time. you maybe questions. guys expect and legacy into are out steady on to to state from aren't Qbrexza, Amzeeq wait really

Hi, Andy. is say hello. to Claude, This nice

the terms really generic we're So of I taking brunt competition. of think out that in Targadox, really really competition XXXX the with there, this the

been where that's getting most. and we're impacted on detailed we've that. think forthright And the really I So

enters, legacy XXXX as for Targadox terms less brands. we'll base in So see our of material becoming revenue the

bulk the Now, Ximino Ximino for the be remaining brands of hold are that considered really Exelderm really to I believe well And Exelderm XXXX. as would and taking their legacy as us actually going in revenue. own are well really quite the

not we're anticipating really So declines two with assets. those

base hold the with legacy So XXXX. brands should for strong

of of launched arching it get Now, and And is brand in each our part plan of certainly going brands, our newly that our we're from that in XXXX. overall certainly our brands strategy. terms growth is these to expectations

on And then dig additional one a -- little deeper question Accutane. bit then to maybe

Can bit what's decline mentioned on you or that, was your macro You place but this the little you elaborate market. of a related something in there? kind market overall or whether else a held product, in taking saw that share it

the The itself about itself. in QX down. take a you XX% over at look When market Sure. a market at decline looking QX is you're XXXX,

anywhere This necessarily it, four necessarily what typically a many But are from dermatology new office. you a getting six times, people So lot once a is that on a product on. months, is not but you're as lots less can't on it into is of going tell to so I attributable? patients they're for XXX%. patient there the

earlier, quantifies had get, entire has not sold units X.X I that brand. to back the I very as like with that mention mentioned, approximately we per I month. And particular forgot is that we've prescription that just X.X mentioned, you really and into it consistent. that market, been think to But, each our So, XX% share plus for XX.XX%

So that has. very positive that's also a attribute the brand good

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

Yes, We And and your when progress for look to have wanted thank participating Journey just day. a appreciate forward today's report to we results interest call, in sharing quarter year-end in March. for ongoing fourth you Thanks in it. really all Medical. our and good

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

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