Assertio (ASRT) 11 Mar 242023 Q4 Earnings call transcript

Thank you for standing by, and welcome to the Assertio Holdings Fourth Quarter and Full Year 2023 Results Call. I would now like to welcome Matt Kreps, Investor Relations for the company to begin the call. Matt, over to you.

Thank you, and good afternoon, everyone. Thank you for joining us today to discuss Assertio's Fourth quarter and full year 2023 financials. our Investor this at page covering available is investor.assertiotx.com. release the on of news results period for now The our website tables I release discussion. to you in the would today's conjunction review with encourage and the

me and Financial and just provide of Chief a an With our Ajay Heather analysts. will Officer. Chief our cover Officer; with then are results overview Interim Paul Heather strategies. CEO; today open guidance, Patel, Commercial followed moment, Schwichtenberg, we In will Mason, Paul take from the on business the by few an update will and financial commercial that, After questions Ajay a our remarks covering

During Assertio's our as in fully the as uncertainties, of sections regarding Factors the These future in guarantees this release other of and Risk performance. XX-K. including this Form more will and the afternoon's filings are press forward-looking are projections involve other risks not described and those annual on our with performance report call, noted other and statements Such risks and management make well future SEC. forward-looking statements section

Our law. And specifically except will any actual projected or from materially call Please forward-looking intent these to now And by over Assertio with obligation the update that, as ahead. disclaims turn forward-looking the required results statements, may Heather. go in differ statements. those I to

fourth I'm here a share our fourth update and and operating Ajay, to you strong year-end. here direction. I'm thank be sheet comprehensive you Officer; our to and for for Chief solid at a our results, on to balance quarter Today, everyone, to business results and with give Paul, Commercial our quarter Welcome, excited Assertio, CFO; our joining.

importantly, driver, contribution on our our most operating including year the expense and, to designed Our updated important flow business ahead. for assumptions results commercial actual base generation and corporate our for continuing Indocin, strategy maximize lower plans and guidance our cash XXXX for opportunities, our outlook Rolvedon, development quarter the fourth growth

acquisition the and focused operations primary as Assertio's financials as shifted and remain for direction and competition have with cost-efficient generic of Rolvedon cash Rolvedon generation growth driver. Indocin the we a result on

talented, is today I frame XXXX. partners acknowledge all navigated while in expectations stakeholders, the we thank to demonstrated have want these worked our of plans. to for ability evolution. hard-working given do deliver several exceptional and I to Having to team's future challenging this investors Assertio the their this team who the few goal in am like over Our performance and I'd results on reported them success dedication in delivering past to patience future have also months, today. at with months confident

product been Board roles, I've professional independent relevant growth and increasing expenses since and I member with In operational my sales execution leadership know, an you to by focused sheet aligning Assertio XXXX. share, prior managing and of highly balance commercial all on As Assertio's efficiency, today.

expenses will of our our In in The and the good against existing addition, results acquisitions operating growth, asset is CEO. model. permanent for we To a to that that search fit demonstrate we've deliver model. afternoon of our leader point, this new strategy made released go-to-market Assertio lean that our this durability the progress business continue expectation

reporting increased are sequentially revenue. We Rolvedon

in life sales our organization. guidance million range. And key are which the To reiterate, $XXX million working of have in ahead customers volume remain marketing with Indocin by been sales $XX in with portfolio the we positive. managing thoughtfully also with million flow are we cash year excited given to our $XXX expected and million Rolvedon have to prospects, to for its in $XX growth brought today, and meetings for We and and be the to We competition. our price, operating EBITDA generic to shared range

and highlight of of And transitioned formally leveraging strong became to in-depth broader as Commercial I'd Chief Ajay knowledge finance and driving working the also a the CFO Officer, And Allergan. and the November, his recently Paul in reminder to Kirk be joined of his during more January, deals small Ajay President April. now larger that, than with adviser has Board Business pass both Assertio Executive member. Assertio asset as XX licensing call our our led expertise. news cover Vice and development, organization, most Sig board his Sig I'll release commercial over growth. Corporate and to Sig an forward finance in market as transactions, background. as look M&A revenue will tenure, with to in tuck-in who'll strategic And extensive in a he I Directors that today's served joining in the like cap external overseeing Sig XX-year Development included capacity acquisitions from business bringing to at financials.

XXXX Thanks, and cover Heather. background guidance fourth year and of Today, provide financial financial full on our would I some like the XXXX. results context for quarter our for to

I of new have high establish I begin, entrants, was to fourth that generic and Rolvedon an Indocin, which overall for is as contributed which relates results. Before Indocin and Cambia to had comparison want growth fourth prior XXXX to both the a quarter our year quarter, Since we all-time then, the to acquired driver. it quarter those the fourth

of total $XX.X our $XX.X year including million sales $XX million sales quarter, million. Rolvedon sales For Indocin fourth the and current of were

acquisition July XXXX. sales improved closing on since of XX, the Rolvedon sequentially

both addition higher Indocin year and the fourth of contributed from change, quarter X a remaining the issue focused decrease channel Indocin compared quarter sales inventory to fourth sales entrance decreased with was of and August from XXXX. due in to in the to margin. quarter We generic and amortization as continue commercial Cambia. the now Of our the Rolvedon in the as have prior highlighted in Gross margin the reduction the well points primarily declined prior a prior in this team to in and XX%, XX% inventory step-up competitor streamlined percentage year of the sequentially fourth decrease change due mix quarter. margin in addressed to grow asset.

fourth Indocin which fair million, in operating a primarily driven fourth were a was expense increased operating the Both impairment a quarter addition operating intangible SG&A of of the million value million EBITDA $XX included in at year $XX.X We to Adjusted million. the refer Indocin adjustments operating loss for Adjusted recognized results. was million impact GAAP the to prior was expenses. our press million, contingent quarter. adjusted operation for benefit $XX expense positive of liability. a business a QX $XX.X noncash higher change and Spectrum. from the the generic a of quarter in performance fourth Turning is in pertain competition. our our reconciliation due business. income quarter included demonstrating the by adjustments. expense detailed to for indicator million adjusted of our a the to $X.X of approximately durability $XX good million, in model charge assets, the primarily of a EBITDA which even release The core $X.X for period. Please came of transitionary EBITDA in fourth $XX.X few from

from a over X.X% fourth cash $XX debt consists due to $X.X operations which $XX.X million flow during the was cash quarter. million year-end positive We and of million note August Crossing at in balance generated the convertible was sheet, XXXX.

guidance today, we for As Heather mentioned, XXXX. announced

a We of product-level period, net we to OpEx sales including of dynamic XXXX the product provided that range been rates. expect in Historically, million $XXX but we has have $XXX start recognize a million. composition not continuing and revenue and guidance, QX run

to additional for a wanted modeling product and Rolvedon context provide for purposes, we onetime Indicon basis. level on Therefore,

million. additional our Rolvedon we context part outlook. our net Rolvedon sales Paul provide As will of on XXXX expect approach to plan, $XX

expect For of range XXXX, a million. Incidon net we million $XX to $XX in sales

We volume. a of both generic from expect continued a and unfavorability as competition XXXX, throughout result pricing

be a generic Although anticipate of by margins. of approval base we into the contribution EBITDA contributed will profit have from impacted assumed higher previously sales a entrant. adjusted $XX in for million. to generic have purposes standpoint, From don't results operating planning we declining which Gross we lower $XX process, an XXXX an additional range our Indicon and million visibility

We total expenses for expect be $XX to and million $XX company million. between the adjusted operating

and approximations acquisition, guidance, the on expected we numbers Subsequent and combined legacy operating combined the fourth we to our of announced focus Assertio organization hope an note formal operating top you Rolvedon. that its expenses and were about organization in anticipates help mindful the would Assertio intense that a plan fully $XX change operating lower Spectrum expenses in of $XX growth the million gross quarter, are $XX sales. costs on this supporting revenues we refined for expenses investments much profits we not million. develop ensuring as These efficiency increase on in responded planned they range. total of appreciate further XXXX, focus the also I but we aligning and When to will our to very now with and cost to and million were

between million. to end a adjusted targeting a $XX $XXX we that mentioned, keep -- to couple and Closing we Heather based remain to cash in positive well. EBITDA have of important mind notes are million expect in outlook, cash As my I And our XXXX. remarks, as balance out on with the are of year

which about to the plan the to continue update from potential remind front seek we evaluate. action no First, BD I've I outlook. impact Any makes everyone on our possible an that require transactions, would would that highlighted assumption and just

new instrument. shelf call is activity. That transaction to the expired, taken discuss indication of of our other pending filing any a an under or today to statement now renewal commercial Second, and availability Paul the our strategy. have we turn I'll recently renew customary to so action that organization registration over not statement action registration

I'm our plans, Rolvedon. update for Ajay. here be you to you, Thank in on today commercial to particular, pleased growth

been product end Assertio's this portfolio the third inventory QX the that resulted excited million, this growth very $XX at in to was consistent and excess and reflecting The sales resulting have a are worked XXXX through after. and with 'XX, of inventory incentives in issues XX% the forma which inherited, channel past several the In in we've prospects levels have quarter XXXX. in excellent inventory over lower-than-expected in quarter. second pro offered the were the excess process Rolvedon of the we of third quarter including have see a channel several inventory short-term a of It in net seen We as sales to in practices months the management we learning normal resulted to our increase XXXX. that net return the customers,

that practices by quarter line successful Even inventory further are us, derived and behind now the have is products. managing our with us channel this issue sell-through made fourth with the other was Assertio That increase, business in we and impacted reductions. inventory on

with Going We sales generate ex is this demand ensure to which us over the in to between forward, overall strategy us going focus will openly Rolvedon believe million our enable asset practice, take beyond better growth forward. 'XX along alignment and our sales allow to XXXX and factory . net predictable throughout forecast growth $XXX consistent to will sales,

Rolvedon that has expand to served we through now markets, our contracting and continue excellent acquired an see XX% share commercial capabilities. in our current market access team share estimated and opportunity to

growth XXXX. Additionally, expect seen demand quarter-over-quarter continue this since Rolvedon has into we launch, to sequential and

continue in to opportunity, resources. both this and growth will appropriately We in invest people

awareness. models will to and we to leverage be expansion customer further will promotion that in-person Rolvedon promotion nonpersonal focused our We intend drive on digital have

But enhance we position oncology core and commercial asset. and augmented of that see access our just At as nonpersonal our innovative strategy virtual this the our line resources. promotion the contracting is innings and the a for teams in-person this opportunity sales, and market this will drive starting and excellent by early model

of team which our in evolution carefully reduction optimized you a were and support a expansion changes commercial of shift ensure organization, forward. acquisition their of the that by size dedication also our Rolvedon. to These would we the organization, overall that am Rolvedon full to my the profitability. Spectrum to overall and growth XX excitement included going As of has commercial sales professionals will I to impressed maximize truly our to field we XX, with including reflecting saw strategy. release our drive to the in our and announced sincere structure commercial them remained continue recognize today, new a focused customers I express this resources press team considered and and our dedicated work a like team continued and since

ion share continue I to how of Rolvedon, one gives same-day and you year. anticipate hope role and a I'll be final this to of an clinics as excited many you important interest are solution why Trial accelerated, patients. grow picture consideration about know base. have has a to clearer this thought we also I results and potential enrollment we important dosing for expect our asset to we this later maintained and on the

updates provide same-day on that, becomes back I'll dosing our information Q&A in operator the With to for will analysts. available. turn the We future the as from call covering

the Instructions] Street [Operator Thomas line first of Capital Our comes question Markets. from with Lake Flaten

can just I with start maybe you. Paul,

mentioned You new in the there, customer you on I'm what that XX but could you sorry, mentioned I in means? shift but resources think, I'm exactly expand a footprint. you heard paraphrasing reduction, also I opportunities to reps, or a maybe

Yes.

focused be customer to team base with sure and are very able our and to so we trying new relationships them cultivating out expand the is allow to sales and new I I further on can reach the to would those to to align existing get the customers that customers. we're existing to support with new that to board. us organization our want think say answer has on that both we opportunity aligned that commercial been existing customers our customers and What Thomas, commercial lower customers, volume is there, make we

the some of product there what a is for switching at learnings the with share customer Are that is now maybe there under who Rolvedon? there belt could learnings you've to us kind some your this ideal while, it had is a you customer -- point? of that profile is And that

the would those oncology have would had space. are challenges customer I in say I say that ideal the customers

and table cost, proposition of terms to that's value In we a bring the to important them.

you mentioned we is the new those with then which Got Or this? beyond kind wings spreading started focused of you on has the -- the are are clinic, it. where when are customers, traditional And Spectrum your clinic? still

both. The great answer, Thomas, is We've success in had the clinics.

we that space. recently as But that my that script, and outside And As we had addition a channels clinic share new out in I XX% us we think market looking expanding space. grow will we grow mentioned, mentioned in the reaching we've in are achieved the I help to that, to at can product.

can just to impact just oriented then what the The on provide organization, one commentary to if that? one, understand of Got I it. was... And final is Rolvedon beyond cut I'm may. the significance organization trying there non-Rolvedon any the you the

the you reorg? about talking Are terms of in

correct. Yes, Yes.

Sorry. Yes.

was... It

for a Sorry.l work. organization. of Thomas, is this of a It's having minimal to impact right Heather. the rest the Rolvedon go-to-market It size focus was the the really

question Our next line Sidoti Jim of from Company. & comes the with Sidoti

repeat missed XXXX? First, can operating was guidance the what in I for that. you expense

this jim, is Yes, Ajay.

million. we're expenses, EBITDA our $XX million, expenses -- $XX help to and to and the operating guidance we're baseline for So $XX was on operating you expecting million between $XX million

Or part in of Okay. grow of same-day Great. And of dosing? dosing sales need be then same-day that? to excess to for million. you gave that is Rolvedon $XXX Do you an outside outlook

would of outside same-day be That dosing.

to approvals get dosing, be there to if you upside could that? same-day do So some

be would yes. That correct,

about talked Any drivers lot your the a drugs other significant going of will you think Rolvedon drugs any portfolio, in that are regarding Indocin, You've growth be those there growers there? forward? and

yes, growth assets, Jim, specifically Sympazan strategy and our Otrexup there. are other we our for drivers looking looking at and for

be to as marketplace updating exist. the continue opportunities on where very we're learn and we more to about are our active X and going those their products, We strategy there

terms All And right. I'm sorry. in then --

but our sales that in fit to force traditional have and They more assets business also that agnostic in we'd therapeutic mindset, an we I'd we our, area set model, skill now addition, mindful continue leverage. good like for have, oncology Jim. a look other both to And with say,

see as we opportunity. another So that growth

next That question. was my

be If to that you are you debt are and think improve, mergers? continues do cash the flow positive pay will priorities that if cash right? Is for Or the down?

your Jim. question, don't I'm I last understood the part know of sorry, that I

debt down you flow combination? acquisitions? what your and beyond. into the that continues about You priority that cash? a just are, is to or more are What's Is it and talk pay assuming Or XXXX priorities it positive, cash

Well, is our put the of our to we focus assets that grow business model. into number can

continue inorganic means. our So to is to intention growth via add

priority. be acquisition So our would

I call turn Mason to like would for remarks. now to the closing Heather over

the in you both financial of continue have Thank build appreciate given based has you, us potential outlook to hope and call XXXX, commitment on a to and new ability I form our ahead opportunities current I our excitement today's with and and picture terms Assertio asset business assets. the both class that those and clear in who today joined of today. feel we you of at the

We will apprised additional keep of in report our you any and results developments. earnings first quarter May

you'd arrange call schedule info we'll the an happy Matt management, his and If time. And update Kreps all to a with thank again. like contact be release, you using to press please in once

today's call. concludes This

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