Oyster Point Pharma (OYST) 8 May 222022 Q1 Earnings call transcript

Good evening. And welcome to Oyster Point Pharma’s First Quarter 2022 Earnings Conference Call. My name is Shannon, and I will be your operator today. After the company’s formal remarks, there will be a question-and-answer session. At this time, I would like to turn the call over to Mr. Pharma’s Relations. Point Oyster Ahmed, VP, Investor Arty Please go ahead.

containing everyone. to earnings business Oyster you, press call. and XX, Pharma’s highlights welcome evening, good release a quarter issued XXXX Thank for Point the and ended And first evening, we financial first our results This March recent conference XXXX. quarter

Investors market were and website SEC after the addition, news release press with www.oysterpointrx.com. our at our section on and close Media filed today of In under available the Form XX-Q, which are the

Joining President us Officer. our Snisarenko, of Pharma; our Jeffrey on John call today Commercial Lochner, and Oyster Dr. are Dan Chief Nau, and Chief Officer Financial Officer; Chief Executive our Point

the plans will up be questions. remarks, will and involve line potential such potential TYRVAYA prepared making our and factors forward-looking cause we potential for our to by operations statements These status financial Following our or and any results, achievements actual Pharma’s events, implied and results Oyster open differ that performance risks, known Point forward-looking today, of on call or expressed other and could future including results commercializing uncertainties regarding future Spray. Nasal from statements we that the during future unknown materially statements. for success Please note relating to statements

of our after Officer. close the Dr. Jeffrey XX-Q a to March For the Chief quarterly turn President our market XX, the description the and Executive of will these quarter now ended for SEC over filed see on Form today. factors, Nau, report call please XXXX, I with the

continues Point. be the you thank call very everyone, exciting Thank today. you, Good evening, Oyster for joining Arty. us for on to XXXX and

will of already persistence eye in eye compliance. Topical topical resulting disease products patient general disease. is burn historically on and can perspectives long patients. surface our I take quarter only with poor the signs problem often and and In the an treatment will such our and Spray people first Nasal XXXX, for by strong estimated we drop eye the fact as TYRVAYA stay an compliance has dry update disease additional dry that million the Nasal work had Today, addressed irritated quarter and spray marketplace first of to progress TYRVAYA. the I to and related launched for surface highlights FDA-approved symptoms been business am and pathway option in in with have drops of patient report opportunity a We symptoms when administered on the November signs eye the therapy. United I sales these ocular States. TYRVAYA full nasal of the the Compounding ahead disease progress. great most pleased to time innovative treatment a dry disease is to ocular results eye first quarterly a treating commercial new and the to by Dry Spray. XX eye an with review impacted dry then effective provide disease for the you for significant during in pipeline of us TYRVAYA and often

dry consistently to among be eye option from excited significant Over TYRVAYA to mechanism satisfaction importantly, though, with on continue they dry TYRVAYA eye eye and treat their the see prescription amount stories we are therapies. well therapy, tell have the continue natural eye other United with the and are finally I the by dry as first tried community. prescription and eye months, as and considerable positive well-tolerated interest action, feedback in field of their the many as past active levels feedback. using a and existing biologically care I patients optometrists eye their throughout a failed meeting time leveraging tear spent of encouraged from to of the dry of States, those few patients the to have listening with Most treatment an effective, high have hearing to me care new Ophthalmologists disease who for enthusiasm TYRVAYA, film patients. for professionals

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regarding support have TYRVAYA TYRVAYA getting during TYRVAYA. the quarter. access commercial to to we Team program, patients through Snisarenko shortly John patient assistance will in provide the performance Additionally, our continued unique details of

and value. with product States, strategic evaluating international goal leveraging of partners the shareholders our portfolio, Beyond our engage we with with continue United providing opportunities additional to a long-term

XX, the On treatment Ji X commercialize China. the to During the be Phase of in OC-XX Xing million demonstrates This sprays spray for eye agreement of OC-XX with and OC-XX eye people company nasal nasal symptoms XXXX, are an Xing where eye for dry develop for over progress a the clearance by licensing Ji XXXX, dry regulatory exclusive of China, disease and nasal in XXX disease impacted into Pharmaceuticals OC-XX disease. therapy spray China. trial in and clinical signs potential disruptive a March conduct to to announced entered dry

trial, to the TYRVAYA’s Asian partner Ji of with supporting initiate Phase evidence to Xing descent. continue as in X to add to efforts safety the and excited are population large we their patients clinical effectiveness in We clinical of the

execution focused for TYRVAYA, remain clinical continuing care. we of team while the committed in plan successful pipeline, our is to unmet on address that commercial to needs on therapies our R&D eye our breakthrough developing Moving

currently OC-XX dry States a as potential excited We treating believe do keratopathy, process. such the We diabetes. XX% role the as are late-stage disease overlap patients anti-inflammatories an underlying of represent dry disease eye to Stage and via trigeminal as film approach as address such as nerve in with the for innovative activating natural may million tear NK, much play the that to available about the X therapies in the neurotrophic treating XX immunomodulators which not and can other is United eye co-morbidities

X study year. second OC-XX at enroll continue half X aimed We We nasal this spray this to OLYMPIA our trial patients to of NK. in treating of of results Phase on remain the Stage in expect track

diseases in we Additionally, gland growth about cellular change the a lacrimal studies the in the secretion an procedure believe the like intralacrimal Much delivery asset the machinery and and animal surface. included could T the we into infectious as way the as of injecting these therapeutic milestones AAV of that gland ocular think into treat of well production safety peptides enzymes nerve protein the and the Key injection disease factor to harnessing X cell. lead of in and film human X NK gene technology Stage studies OC-XXX, cancer, filing. progressing of enriched growth been per from to factor has therapy an our body’s for support platform, promise encoding treatment address the mRNA IND AAV nerve vector to preclinical

tear have film We multiple days results studies now growth XX observed post early into as as seven assessment nerve of positive continuing injection our with and secreted across the through animal days. factors last

epithelium studies, in administered tolerated and repeated growth a safety in has humans. been been Importantly, improved and sensitivity shown corneal Topical factor all to gland has the injections. even we study in intralacrimal the injection heal already nerve safe well where corneal

treatments involving current and topical be refrigerated. day and are needing However, per times as to as drops constantly many applied expensive XX days X over laborious,

pleased turn to strive on transformative post vision life the to our commercial sales X John pipeline. far for with We NK aims compliance work summary, to approval, as year. very quality This am meet performance strong and the progress machinery related the quarter this in I commercial of of therapy. first and deliver half own X well company’s unmet of Point’s Stage the this TYRVAYA. quarter and in turn performance to harness Chief is am excited discuss the and the Officer we achievements the Point, by of will exciting In now full in year first Oyster this plan the encouraged platform innovative cost, to the in call with are company’s FDA increasing the XXXX. its Our body’s ophthalmic every we raising patient of our At with so Commercial in to second needs. to reflected guides diseases progress I for therapies Snisarenko, as reducing our Oyster in patients. day over activities I TYRVAYA making

Jeff, good you, and Thank evening, everyone.

we months excited the uptake during to am made spray are post nasal of very We progress launch. about have happy I report six the strong quarter. TYRVAYA continued

always eye. has estimated the XX U.S. for lives the who to experience vision people of improve Our million dry been and transform alone in TYRVAYA the

from to written increasingly eye for force approximately strengthen been net product meeting This over exciting and disease. enthusiasm ECPs. or professionals care XXXX, have have pleased first ECPs, the million. both TYRVAYA highlighted and an position symptoms are educating quarter patients we Jeff prescriptions for and $X.X as and As filled optometrists signs very market eye and previously, treatment were ophthalmologists. XX,XXX new with TYRVAYA’s of effective reflects and alike. quarter the X,XXX Sales first it dry continues of of the In been including unique with by considered the ECPs revenue

TYRVAYA access has in organizations. market payer with our success continued coverage top for Additionally, team securing had

performance placed As up to effective source, Preferred obtained last around million represents XX% XX, coverage Since lives, XXXX, all National successfully third-party commercial formularies, payers. on then, million TYRVAYA Express was coverage basic February now have which mentioned high Scripts additional collectively during XX approximately U.S. lives. earnings up and lives. a XX make with we our TYRVAYA which of commercial has syndicated According for call, to

gain the to in to of expect write we As an leverage, increase we commercial TYRVAYA. propensity continue prescriptions for physicians

anticipate and progress mid-XXXX. by major launch commercial TYRVAYA receiving the commercial payers of the coverage with pleased are since U.S. in all We for determinations coverage in

in to expect Medicare addition XXXX. we commercial for coverage In coverage, determinations time

TYRVAYA. quarter, TYRVAYA support Team program experience, in we offer helped has insurance continued to patients delivery home and in patient known first multiple assistance access with process. the During benefits, including as support the By leveraging ensuring get technology and to program this

For visit more the information website www.tyrvaya-pro.com. on please Team TYRVAYA,

which days, continue for of XX XX% patients a refill observe we for is addition, prescriptions from indicator approximately to of strong an have response confidence launch, rates and In ECP. refilled been positive Since TYRVAYA. within

As flows total months expected, new a few and prescriptions post in the there written. and ebbs are of launch, progression

novel mechanism the and coverage optimizing Despite offering to route best-in-class see Given prescribers our evaluate back want to growth treatment drive are consistently establishing strong progress four-week of after action, many program, in in starting and support to to commercial TYRVAYA’s prescriptions. to TYRVAYA. we a patient eight-week response approach patients

incentive For and to prescriptions prescriber. are direction example, we depth per of and new continually rep drive prescribers sales refining our comp

programs promote Additionally, explore peer-to-peer ways rates to distribution further speaker launched April. maximize continuing we fill to just TYRVAYA, network. we are across to Also, our in

months we NRx. and tactics TRx our optimize continue approach to drive six our with launch of to learnings, and fine-tune So

directed virtual by led supported toward the nasal be social unique media digital marketing This to activities spray education of digital unique by and emphasize well continues Direct approach eye campaigns detailing, have leveraging as TYRVAYA’s efforts bolstered that been mechanism care direct-to-patient patients. analytics. administration promotional is latest action. the simpler professionals including and and as partnerships, benefits, including marketing by multifaceted and technology, Our efforts and best-in-class

process Point’s share system even over effective pharmacy our the of patients. to procuring of continue TYRVAYA strategies financial commercial the digital discuss I of simpler our first to for now latest and and adoption to efforts Lochner, use our turn technologies and TYRVAYA. We success Additionally, made intend using market most the Oyster Financial drive the remain quarter of Officer to Chief Dan team’s proud call will during I results. very continued quarter. has

now will of overview I Pharma’s Point quarter Thank brief financial results. John. Oyster a first you, provide

Form can was this in XX-Q evening. Additional first found our quarter full that details the with about our SEC filed be

a net first the Point million of $XX.X Pharma million period Oyster of in reported For net $XX.X XXXX. loss to of a the same quarter compared XXXX, loss for

up in of to XXXX, revenues line generate $X.X of As million with three in XXXX ended commission compensation of FDA of costs. $X.X as for The of $X March XX, incurred the of interest primarily to $X.X XXXX. for million, U.S. period Operator XX, $X.X of as half months the The the quarter ended commercial The partially $X.X in manufactured U.S. TYRVAYA was the OrbiMed. sales and driven XXXX the other was expenses manufactured were March also financials, three expenses, company offset company of will back XXXX. was expenses March same the pre-FDA was the and approximately product during in cost that expects open to loan inclusive of and the million, expenses after the the of and expense expense, million and operations, third-party $XX.X XXXX. turn contractual commercial of expense to expense stage onboarding The R&D million TYRVAYA. company product months business to three and of was to amortization of expense to company’s utilizes product credit driven primarily manufacturing was by company March XXXX, the to well million Inventory October XX, an royalty $X.X million noncash equivalents company expenses the $X.X as company’s the the expenses headcount were ended increase months nasal inventory which in three compensation the three The XX, other during interest obsolescence inventory XX, $X.X same from during revenue any lower our of million for expenses for launch increase material as in other product overview With in in to compared in unit stock-based XXXX, XXXX. administrative same related company legal XXXX. XX, credit compared the inclusive will the general company’s launch payroll to stage field product Interest three I revenues ended had to professional to November $XXX.X and to until The a three second expense, general increased million $X.X expensing to XXXX be company. incurred started The long-term cost months research did related connection expenses reserves XXXX. due marketing revenue call March approval. support first cash of The by of Cost the as months $X.X services not and during the interest million. compared efforts $XXX.X cash The transition of charged insurance. was incurred XX, costs, Net of $X.X XXXX, fees months commercial XXXX. March million. marketing to million, advertising, with The commercial during expenses expenses clinical over spray decreased $X.X million XXXX. force The primarily increase expense, related the three due months TYRVAYA by the increased result, that no by million of a an other million, of ended $XX.X related by also sales million included and payroll general compared XX, debt XX, during XXXX. December approval administrative prior to the accounting, in ended during the The decrease related TYRVAYA trade March of marketing XXXX. $X.X company’s by related increase increased of in XXXX. increase lower due of fully pre-approval to recognized This the accretion commitment these in an following period March now million company months other March The by was ended million a administrative higher of ended related a approval and sample higher a of stock-based supplier as FDA questions. XX, consisted company company’s period agreement and well and shows was the the development driven increase and the

Thank question you. comes Company. with [Operator Our first from Cacciatore instructions] Ken Cowen and

line Your is open.

them. I team. a a just through tick of want few Hey, good lot metrics of here. Well, to

On you we the like thought. driving pricing, faster little are would seems that actually it have a than

of I about the XX%, valued So $XXX. here a to prescription am per seeing like gross net

of wondering about also, kind And as if nicely some that our little to talk pacing would track, dovetail points Xiidra, is around Just compares? you talk consensus peak rate. for you these of a refill wondering, and we that looks that much. around can and nice then so balance it maybe the Can Thanks to comparison And just model in but bit so year? then the million, that. Restasis we about the are the feel metrics, you through would the of $XX speak in some John data a you to gave where of have on

in. jump will I Ken. Thanks, Yeah.

based As to gross to product. bridge through have net little related on we more a folks clarity QX, we or items various progressed bit on on clearly commercial

a that. improvement get our we little provided are then while the So guidance, where consensus with less this to QX course, We or the first continual John TRx, comfortable in and is have prescriptions we in seen at in, second versus point into, where bit haven’t we growth the for of related will happy is outlook we XXXX, which more are that and more QX where an came And half. in be we around half expect revenue QX. to would then

question for retail Thanks Yes. rates. Ken. your Hi, on

pleased We are the refill quite with rates. initial

seeing patients on have we were six XX% in still days. of actually of their put XX months interesting drug, early around we The So six parts in that stuff launch are TYRVAYA December are kind that over getting that on aggregate now November, refilled seen refills is the in.

in comparison expectations to retail But are So above bit math feel really be. and with we do performing that these see Xiidra we in what we done quite will rate. mean, persistence haven’t little persistence TYRVAYA’s Restasis, rates, a on I the

indicators both year the our progresses. you TYRVAYA get will the as acceptance as well patients, are that by prescriber as we base. So of overall, the on number quite But, positive for

will then, in. And Okay. John, maybe I more one sneak

talk In you terms what base, prescribers, seeing, have obviously, prescribers, you of but if the that expanding of can you the about you percent data point. repeat clinician kind are are nicely

Yes.

In prescriptions, of launch I good unique lot prescription are to-date, to already continue and make close write. our that around currently of we is follow-up now at to looking are If sure to actually XX% we initially calls now mentioned out their in for thing physicians of with time the fine-tuned have have we terms we a also are went and those. with proportion written doing launch continue the a running writers, do prescription, One were X,XXX follow when we am them breadth a that and of we QX, X,XXX. up of patients to to we write, repeat

higher So been in are that. of on repeat and based of a a seeing higher our and kind that’s approach bit fine-tuning prescriptions we

the appreciate it up I much. so keep work. Thanks and good Okay.

Ken. Thanks,

Our next Neyor JPMorgan. question comes with from Chris

Your line is open.

and… question the taking for Thanks Great.

is open. line your Chris,

taking question and on for progress. Great. the the congrats Thanks

you that could more one there be of there downstream would of additional ESI commercial a any lives brought payers the were payer additional Were covered or from additional First or onboard helpful? these you kind color bit provide you on just wanted to on coverage, patients major get kind added. color

ESI have Yeah. We the some downstream that national continue formularies. original from Thanks, to Yeah. to Chris. plans be added did

we be the to kind VA we those of that I UnitedHealth and as pleased the now group, currently the was XX cover. plans covered think Those the make there’s six that lives are majority of up well. that added during million able payers Kaiser, the very providing another drug Tricare we and big to Group are top that period, are

hear. but Great. just point. to That’s And a kind tangential progress of maybe great related one

So if guys of remainder of the of of we kind place. have program year beginning through you about the the the in had bridge think the and expansion coverage

that in could getting script facing have how timing been to patients hub. them they So making those how sure have some either get there coverage, actually are be really patients been currently who successful do over scripts? has can the noticed effective in and rejections friction for some be patient who or I issues bringing and there you don’t oftentimes

trends more color expect to we going some maybe that on then there the in see also we are think flow-through that as that about and expand of script terms coverage So impact should you should some pricing? we being or

Yeah.

me our Let listing. payer first with comment -- progress commercial on the

control So expect year the by coverage large two other we midyear this commercial of determinations do majority the that with PBMs lives.

third-party at So the while still we get not pleased program And patients start a that enrolled board, are get going encourage we coverage, are seen partnership patients into but convert awaiting time. kind hub our with Team get good fulfillment our so provider. rates that patients scripts shipped our If expect will patients. while into program. we those to Bridge keep partner, over and do of need to we we covered there’s with Bridge the deemed these through physicians of get we do enroll do our additional as very, for TYRVAYA our have patients, very revenue very, And that processed to listings XX% the insured, on they automatically And to very that to program. commercial

and TYRVAYA that patient to that physician So that appropriate be make to patient. sure is the to that we that feels gets want we that, sure appropriate want deemed script if to an the prescribed patient make

That’s it end. my Thanks. Great. from

from instructions] Capital. with comes [Operator next Our you. Dolezal LifeSci question Thank Patrick

open. is Your line

This Hi. on Patrick. is Cory our for taking for questions. Thanks

us. from one quick a Just

granularity and over have the year? on when commercial when into that the forward and you how emerge, you a XXXX, shift burn runway you on do your of to Do how some what on the focus cash course implications campaign? that might any occur, looking is looking or are does of strategy DTC plan of So have

Yeah.

So efforts will a our as gate, targeting the we launched out of bit the both Right little physicians. a around lot patients, I well talk efforts. of DTC the digital as

we lot digital on on in social go on of but media, So very do expect search, to just been and get XXXX, Medicare really coverage effort. efforts since more only on focus coverage, then DTC -- we don’t to to until -- that targeted. good broader have DTC will targeted digital do very, start have a to launch we We we broad We want quite efforts consider then not kind commercially, we plan get of a us. we that well started working for feel

it. runway? in can net guided where thinking provide included the Ji you and and near-term this any Xing cash SG&A forward, payouts the runway, up cash what spend Got are going guidance your agreement additional are some might of is anticipating And about on from you

Yeah.

reported So, likely at in quarterly I our going throughout would would basis forward QX moment, remain the a as XXXX. say that OpEx on consistent pretty

the infrastructure the we R&D the effectively provision whether well have need as side, TYRVAYA, really market out all to built everything that side. We it’s SG&A as on on internal

kind capital, will that, we have as John into patient current with as spending social then provided we consensus, months alluded of on on a and direct XXXX, buckets at stopping still But pretty decent short amount To-date, to of run the with the feel at seeing budget. enter runway, on the DTC little and speak capital bit to, can we we been a say rate current taking been perspective XX on to. OpEx would course, we current spend. of closer that adding are an we our So John quarterly about digital I adamant forward additional cash that media, of look have comfortable a

taking questions. for Thanks Excellent. our

I call closing Nau will you. the back for comments. now Thank turn Dr. to

trajectory of the Operator. In hope unique you, thanks picture all a strong the the option as you of a for eye we clear Thank have you disease. truly joining of closing, of call for TYRVAYA, and treatment And for innovative dry today.

We continue are want pipeline the growth to thank to value while to delivering as shareholders. Have a bring excited well for about ophthalmic TYRVAYA, everybody as ahead for patients, great transformational We today. I potential joining our significant to extremely long-term the therapies call endeavor for evening. to assets.

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

may You now disconnect.