PLx Pharma Winddown (PLXPQ) 7 Aug 212021 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the PLx Pharma Q2 2021 Earnings Results Call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions] Please note that today’s call is being recorded. now today, hand Lisa would to conference I speaker your Wilson. Instructions] like the to over [Operator Please go ahead.

Investor With Thank you, Natasha Rita call. Wilson, O’Connor, results QX Giordano, XXXX for Missy. Welcome Executive Officer to This PLx President and Chief is Officer; call Financial on today’s me Pharma’s Chief earnings Relations are PLx. and Lisa PLx. of

the access call through section of this the the plxpharma.com. of PLx webcast also at can You website Investors

everyone in press by future and those performance. including of from this may information anticipation be Reform Pharma’s Such that with management Actual I guarantees the forward-looking conference those be and morning started, available we The Private disclaims forward-looking regarding remind on statements. filings results or our a the considered required intent to archived involve like these website, PLx forward-looking defined days Before as except webcast any future as future statements as update Securities would of today’s differ will may today any Act. by and to our statements Litigation statements on forward-looking not and XX in SEC. materially call belief, available get statements, noted for forward-looking obligation our uncertainties, are the on specifically made to law. expectation, or events projected performance express that release company’s projection, These risks PLx the forecast, issued intent statements based are plxpharma.com.

PLx reference press that, company’s was to maybe I so with X, the on held over the announcements Giordano. archived of replay this SEC Natasha And For XXXX. may call releases the PLx’s or please related made August who filings. discussed, those to the recorded turn recent CEO, to have will topics benefit call most and the Since then, listening and webcast,

today. Thank you thank for us joining you, Lisa. Good morning, everyone, and

are we only our strategy press our capsules. series commercial first in As you’ve actively recent for executing VAZALORE, of releases, aspirin seen and liquid-filled the on FDA-approved

Aid, pharmacy Walmart, other including committed Albertsons partners, in to and CVS and Walgreens, leaders retail Kroger, Our Rite Target are VAZALORE. fully like

of soon. many placeholders that shelf grabbing coming VAZALORE customers fact, them used is to In have attention alert

distribution a in deployed have cardiovascular to extraordinary stores level raise field to our inventory size. ready throughout to We We within is of unheard we from retailers distribution. widespread brand VAZALORE of than company country. fulfill more for the for specialists, have distribution XX,XXX our awareness a extensive the ship community to recently this and force of This new

prescription team you many our management well-known Zantac, Zyrtec and Neurontin, of As launched including and has names know, Zicam. Mucinex, several OTC like products, LIPITOR,

the to name. and forward cardiologists VAZALORE than novel play that and data is We just aspirin. decisions Pharma discussing neurologists, like into can what PLx for specialists, importance treatment their looking turning are delivery patients, require and clinical mechanism. understand strong some today like more time their why in a VAZALORE’s understanding making for to in spend We household appreciation I’d

information more platform, the drug for after forward financials reviews sharing Rita for I’m Rita? our innovative We quarter. are delivery our about looking about to PLxGuard plans and PLxGuard the

Thank at manufacturing you, PLx. and Natasha. been few very for both months has This busy a finance

generate been to shipment revenue retailers have the are to ready significant sales VAZALORE, say mentioned manufactured country. expect many excited to across Natasha doses As VAZALORE. both is that upfront, the thrilled quarter retailers of so and launch for XXXX, to and our from we of in prominent we’re commitment of Starting we made has third a inventory

that the retailer. will when is we which, We it the which will account ASC with at revenue for arrives case, in accordance XXX, in warehouse, means customer’s revenue our record essentially

and handling discounts expected to by will retailer at include costs gross promotional the reductions may be launch and COGS, Cost will record consumers. distribution The in until manufacturing for or of to remember sales, to outbound next Midwest. packagers. our batch COGS those actual warehousing, the and revenue also will margin Many gross paid inbound gross net. to We expand prompt capacity for of for as center shipping pay year in-store product include to we redemptions manufacturing sizes and is provisions lower costs larger move coupon year. also our returns, you programs, contract

plus retail Although aisle we’re and is those be in retail not of can month. SKUs be revenue month’s to around displays, VAZALORE stocking of the later all aspirin supply. will price stores for across providing country XX,XXX we share a three the the Many stores specific consumers expected guidance, thousands that this stock $XX will to

technology. to Moving R&D feasibility rest increase PK/PD expected with manufacturing patent-protected slightly of study the we the as our PLxGuard is capacity, expenses. as XXXX for of products to well on work using development increase combined operating complete XX-milligram spending to further as

selling, the G&A and administrative properly to this our VAZALORE. our expenses on for marketing spending activities changed label also launch for quarter We reflect to

launch in expect, the would you mode we’ll significantly increase will As third this quarter. in full starting as spend be

As healthcare expenses you on about to our for plans awareness generate will to a and million Natasha result, to aspirin third the can $XX professionals our million $XX elaborate innovative among therapy. be expect around quarter. operating total consumers

of stock the been structure past shares. in you our the months, a common of can X portion there to few conversion have including changes million the capital a As see, few to preferred

were XX.X resulting warrants of million in million common August $X.X outstanding for X.X X. of shares exercised as cash, of million addition, In

fully in count be share of preferred exercised potential for We also million shares, that of for diluted mind warrants million. includes million. $XX warrants inflow dilutive have including convertible cash Keep currently this XX.X shares potentially XX.X around fully options, remaining that could diluted and stock

cash of sheet remains with As of Valley February. we we Silicon in Bank our and off debt million, paid term June XX, had our XXXX, and balance free $XX.X equivalents back as cash loan

companies the facility. million, $XXX registration many for current shelf registration ATM S-X at which good in previous You other filed as a Form and the of housekeeping statement includes our to will replace file $XX a we stage growth. a million morning, line matter of to see elected this shelf with We

While not additional capital us these near going filings we term, have for do forward. with flexibility in maximum the provide plans the

previously support commercial we cash As stated, to strategy discuss the the activities VAZALORE our years. have our I’ll at the expansion Natasha? call for to least for to sufficient Natasha and PLxGuard turn that, of be existing technology. should VAZALORE’s commercial two With next the back

Rita. you, Thank

to across for central information learned Through healthcare a personal the the VAZALORE the influencer research, the innovative regarding professionals. healthcare consumer retailer VAZALORE, consumers. retailers, market And reminder, is our strategy distribution country. focused professional, that cardiovascular for three the strategy is the by trials providing through generating is publications, and launch scientific a we’ve care we’ve their widespread As already therapy discuss aspirin clinical now discussed developed professionals awareness prestigious that new TCT, constituents: conferences our and top our specialists. We’ve on about medical like promotion physician. AHA, To address ACC, let’s strategy

Harvard, of and continue of our strategy Women’s, neurology in Baylor, need our academic as Sinai of an as Tufts. clinical Bhatt in cardiology, strength the and reliable esteemed as important Advisory Board Cardiology, aspirin by College data. of care. Mount our American top Journal and who journal and disease. well and of to our prominent guiding inhibition cardiologists. published clinicians of specialists played strong to was work understanding unmet show therapy, gastroenterology the group This novel the such of and institutions study offers along compared recognizes They’ve formulations medical and our for role We Scientific VAZALORE to provides a Florida, aspirin what’s Dominick with important chaired absorption platelet predictable with approach the from in Angiolillo, Brigham pharmacokinetic results The representation University aspirin, Dr. Deepak with clinicians vascular three pharmacodynamic aspirin current enteric-coated VAZALORE completely robust top published fast, treat the peer-reviewed that standard comparing

Additionally, and a with PD XX-milligram trial PK clinical be and top later year. should ready we results conducting this line are

of and duodenum, risk with that lipid-aspirin One the regular in thus that filled stomach a are rapidly the aspirin. absorbed the is VAZALORE they compared important differentiators of with as of gets reducing stomach liquid capsules injury complex bypasses the

GI true throughout patient of in team. cardiology we clinical advocate. awareness the raise VAZALORE Journal these Our in endoscopic of gastroenterologists. of the underwent these peer-reviewed [indiscernible] a peer the integral review To published Executive MSN, for experience prestigious deep cardiology journal has damage joined rigor she’s in journals. to aspirin as Both our published the community, and studies RN [Indiscernible] upper and top the was comparison assessment the She’s we the to Medical thrilled is American be community, process and of further order regular are Gastroenterology, that PLx and of reach mission our in industry hired cardiovascular, in Director.

cardiovascular to led Additionally, of in commercial life services launched strategy, PLx by next-generation our science provider specialty to July, force, leading integrated enhance we with companies. field partnership in and commercial multichannel Eversana, a the

know, a our represents than on PLx of you more delivery true developed to with platform as that exciting PLxGuard we the was is company. As aspect platform. where drug The company PLxGuard a VAZALORE aspirin. is which build are Pharma

of mechanism when used optimize drugs validated Our drug of innovative drugs. associated which the won’t novel, to injury risk market lining with this a will by interact naturally that and chemical the we technology GI GI to owned of erosions API excipients pathway that tract. GI API prevent approved PLxGuard and stomach. To-date, contact has so nonsteroidal helping pharmaceutical And VAZALORE. come make that development-stage platform value beyond regulatory the FDA with tract. we’re a NSAIDs. Because gastric The includes and XXX(b)(X) direct PLx portions platform since on the formulation stomach many development provides a approval release through stomach of or We certain compounds the The an the less NDA and platform of to offering where PLxGuard’s bioavailability, approved risk protection patent reduce other drug PLxGuard drugs. PLxGuard strongly in you delivery platform. faster works clinically are release to with targeted delivery various NSAIDs, patents of to likely to injury, new active are our pipeline the reduce anti-inflammatory believe lower-cost pre-association similar, approved we in composition absorption The global or APIs pharmaceutical enhance acute API, is the delivery of this imminent on XXXX, VAZALORE lipidic and matter, believe drug improve to patents strong could our commercially selectively active improve with though ingredients, means with of phospholipids a injury them ulcers regulatory portions have on to we or technology our lower-cost presently pathway often targeting already currently lipid absorption methods ibuprofen and innovative our occurring utilize making viable. to release used Many utilizes drugs approval provide methods beyond plans NDA of and treat. about for the the when in potential pharmaceutical or provides pH-dependent of faster extended it the and of gastric relies laser-focused often our protection the have reduce And and screening with association drug This and of in or already includes novel of XX launch, XXX(b)(X) asked drugs. already potential ingredients, has the the FDA process extend

we As and PLx our plans. begin in in assessed to the represents manner a PLxGuard VAZALORE describe ongoing that for product launch we evolution progress platform, our growth will of and our candidates

tuned. stay So

this please we PLxGuard for With of the depth management platform, drug that, market the will products with go the the ahead instructions. open confident achieve questions. bring for have team delivery to VAZALORE. experience are distribution that like and Operator, we call With highly I similar to has

[Operator Securities. Instructions] Butler from comes The JMP question line first with of Jason the

the Hi. questions progress. congrats on Thanks for and taking all the

Thank you.

you, Jason. Thank

the for that details touch field to field their you more around they get Thanks. you what to? size of us targets you or think with force. Can give Just start a many of the any to How on couple patients the towards point number your the get force products? want you a physician to need points physicians are the before

Thanks, Jason.

the very top and identified those hospitals strategy With heart force, stroke and is XXX our We’ve to group hospitals very, laser-focused. field and the affiliated cardiologists practices. the

country. clinical the getting targeting focused we’re very MSAs course, and are scientific Of the in information much large raising cardiologists. to And awareness the we on practicing

However, we on the focus as cardiologists invasive are well. cardiologists will also the interventional cardiologists, that the

a done in speak, on comment won’t size, we can you I that we Although actually want sophisticated send targeting process. exactly reps. exercise. beginning we’ve They’re to the field very that segmentation our know tell We as I and where

important community. when some that we So to of And mentioned hits well. Director is Executive VAZALORE the within that role part have it we and cardiology important way, that cardiology awareness is patient is in an the I acute the phase. this product. because as And the that they extend that community shelves Medical hired the aware into maintenance of her interventional with are acute the we cover chronic that them since

available? That’s patients can at believe on And feel least, successes Natasha. already to with there you know do And product anecdotal I guess, when helpful. the it’s Thanks, it’s their – that having physicians? but then any physicians feedback are point just, to any, to give reasons like ready us I you early, you’re

talk that of cardiologists the there’s coated no that But There’s had the present our that an no innovation. with I’m happy asked issue you heard because research market standard yet current you’ve understand other aspirin been and Yes, they’ve us about right? question option, the tablet. care,

And new they And find receptivity in quite we’re data in innovative and we the a the ready right a be know products. couple what last research and weeks now for aspirin the that field seeing of from market an the they’re willing waiting so is openness, open, compelling. to

there’s And of so being lot a generated. interest

of that its wanted sure shelves, we community And so make to aware get VAZALORE cardiology in anticipation the of hitting before we that coming. is out so the that

one last platform the just on And technology. me then for Great.

any more into pipeline? how be investments candidates? focused Thanks. you into Obviously, prioritized Just you’re you’ll investment pipeline going how will VAZALORE the laser give can on think us prioritize about the to color on – you

Yes.

truly compounds prioritizing stomach the technology, risk bioavailability are that better differentiates the potential the is platform. injury issue that because with what We could to but use PLxGuard also have

you looking important, especially as progress team to a absolutely need commercial patients the we’ll can able come the the we’ve all you to compounds, been already resources, management is millions deliver those on of that we really what content, continue back of it team candidates. and confident materials, to we’ve been really bring execute strategy, at those launch. felt knows experiments And to So the prioritize was we and But doing. at This how we are And is we’re from give in to the the information. launches. place, it. vehicles and be really in to benefit Everything excited the and VAZALORE the very who it time

start felt us because And to VAZALORE. all so now to you to the to company as next? really we asking good does is this excited What’s been enable this several beyond it we’re weeks. talk And really you’ve about platform last over even a time build us really

again progress. for Okay, and – thanks great. on Thanks taking all for again questions the congrats

Thanks, Jason.

Thank you.

Your James. next with Elliot question is Raymond from Wilbur

actually is thanks This guys. Parolari questions and Hey, my taking Elliot. for Michael Good for on morning

morning. Good

morning. Good

Yes.

sales to specialty if the effort with any sort of this immediately get I sampling strategies includes patients’ any directly on or piggybacking was of hands kind like in interaction physician? after the the coupon first, force. wondering product So just

it an approach So multichannel we our healthcare consumer also applying the are and only to relates in but integrated constituents, partnership not the retailers. with all the professional as

we yes, incentive be That to we’ve well. providing VAZALORE. best and yes, way trial education to – the evaluate at field sampling physicians for that start force. tools as including So will developed with high-value physicians a we’ll the and look for And the be to we’ll patient is be

be will those And so yes, we providing indeed.

then shipment guys that on and clarify prepared I for that you wanted for there’s VAZALORE? requirement the Rita demand just recognize but pull-through of upon the believe revenue referenced And Perfect. quantities no remarks, Okay. to in this I

correct. That’s little clarification. one Actually,

when We’re going it title to at record that’s warehouse, transfers. revenue when arrives the retailer’s

revenue So yes, to to the – what and we recognize we have provisions because the those are analyze nets be. ability able to will or then gross

it. when revenue retailer us the GAAP record to allows receives So

right. one me. All it. Got for then And last

guys for events or having anticipate wondering a conferences KOL education? profile upcoming Just where VAZALORE you if you any high had

we’ve really Yes. to can Dr. we’re Dr. medicinal several Dr. planning plan they we did do next just panel, network distinguished to of benefit well. regime. into very And how that conferences the a results medical a for are targeting for associated event course, The have Gibson, Angiolillo, AHA the with We of could conferences of and Grainger, with an VAZALORE bring and as and Mehran fit it about where nice Dr. a We’ve XXXX. their upcoming at aware lot a last And already years, TCT and TCT and recently adaptable are and talked trial also developed VAZALORE the been AHA. program cardiologists patients. ACC

and Perfect. the for Thanks again congrats progress. on taking my all questions

Looking forward on to VAZALORE shelves soon. seeing the

Absolutely. Michael, you. thank

Michael. you, Thank

Gershell Your next Leland with Oppenheimer. is question from

Thank questions for and congratulations. of morning. Good questions taking you my Couple from me.

add respect leveraging its also in you studies of actually their terms to your be the to be product out on to any maybe may possible done VAZALORE addition the In a could of have going Thank to share detail and content other out deployments and the if there? nature stream of that’s there’ll you some with articles coming scientific benefits of advantages. further direct-to-consumer I there a want of to already of or lines you. ask, existing you VAZALORE? ask any I if on have papers approaches, on doing with work time understanding wanted physicians to or telling

very other working and made established actually our our country. Board. in committee very Scientific of believe the plan, been and cardiologists Advisory strongly strategy in Scientific I Advisory Board well-known We’ve some a up publication publication Leland. a Thanks, and with we’ve

articles we’ll for on is And of we that stream and be submit are and a publications. will working so papers and there that

and several year, a cardiology manuscripts variety at we publication. last abstracts posters conferences. presented being remember may converted into Those are of different for You

it’s more for to I that these category is as in as about really yes, patients. VAZALORE, every therapy So guideline on appears about the important and think medical the continues about disease foundational of community important vascular it aspirin treatment the learn how

She So Advisory right we will Scientific that for world-renowned we have platelet continue leading our on there. effort a Prats is our now. Board us that efforts And experts. Dr. is

have established those team and So working world-renowned a publications. on we of really cardiologists

– We have DTC, of have with over terms includes e-commerce strategy many side We impact X.X our retailers know the that their of In certainly business. e-commerce media. the program marketing last COVID, the platform. of plan for course, and a the developed different of the programs really years, developed

So we media as consumer approach about our rest as But we will and certain, focused search everywhere will the talk and through efforts. be the we shops And and could be and progress for the advertising assured that on are we’ll digital. launch, you we well. more have consumer

ETM And in so irrespective and you be the Terrific. question, the one on effectively the shelf you’ve last then you blast VAZALORE past and were the fairly commercial comfortable could a forth, filing that of with that basis. indicated in concept

ask, respect with in of comfort your kind to the the shelves you. of Thank of level to there wanted years the Just taken terms couple VAZALORE again in of launch next as market. over

Yes, great question.

least years. we for launch correct. capital So said VAZALORE sufficient two We you at are to have that the next successfully

for elaborating products or we the that to develop filed of kind that expand also extensions. to product the We give or any VAZALORE line some acquisitions, PLxGuard maximum technology to on was of flexibility shelf – Natasha capacity us further or

projects to of really doing additional they as us opportunistically capital advantage give to any of putting flexibility the – we’re up along. take these that maximum some further come So to

forward shelf much Thank part look the to you and soon. Thank great of all very it. you. the and execution to see seeing Got the

Great.

you. thank Leland. Thank Yes, you,

that that been about It’s excited have put unheard of in our pretty releases. truly this press out to distribution able of product. for that kind to We’re we’ve distribution

So excited and launch. pretty ready to we’re

the remarks. Natasha There over now are to no closing further turn questions. I for will call back

Thank you, Missy.

morning. this for you time thank So your

at most into VAZALORE excited getting risk We vascular of patients for VAZALORE, launch to are importantly, millions and of the so disease. hands

wish Thank provide PLxGuard on – you. we our we wish And a you progress. plans you I will great day. also We updates as for

concludes today’s conference This call.

may You disconnect. now