Assertio (ASRT) 11 Nov 242024 Q3 Earnings call transcript

Thank you for standing by. My name is John, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Assertio Holdings Third Quarter Results Conference Call. [Operator Instructions] I would now like to turn the call over to Matt Kreps, Investor Relations. Please go ahead.

John. you, Thank thank discuss and for us joining Good third you quarter to Assertio's XXXX today afternoon, all financials. at page The news now our Investor is this for website of release covering available our on results investor.assertiotx.com. period the I would release in with conjunction review discussion. and tables today's you encourage to the and . With are Officer; our Financial Chief Chief O'Grady, today Patel, Officer. me Executive Brendan Ajay will In of the overview and provide just an a moment, results. then Brendan cover Ajay will financial open the remarks our business, research analysts. take will that, covering from After questions our we

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

actual from differ in projected materially those may statements. forward-looking the Our results

forward-looking disclaims these obligation any or as except to intent by update specifically required Assertio law. statements,

with to Brendan. call I will over And go ahead. now the Please that, turn

to like Welcome, especially you today's thank Matt. joining. retired and and I'd our to everyone, Thanks, a Happy for and members to families. their you wishing by Day, start call, all Veterans active service

to remarks performance, usual my quarterly that X like other would are our there to addition In addressing. begin issues I by relevant

on of the I sure morning many, out on. Mr. Hemsley this this manifesto of want stakeholders November I'm past numerous impact that not not last Parker's this Mr. this The most was Normally, Friday, had that the share because first to and speaking by such validate address Alex Parker on price, is head about opportunity Group he released you such to falsehoods of letter Buxton baseless an attack the by use addressing it. unwarranted seen our Assertio that X. rambling I that have But would allegations conduct I if put Friday. launched

Mr. looked we be found have and taken them every have one While them, Parker's single seriously we all to without of allegations merit. into

communicated have X payments at best same occasions Assertio's importantly, a value. to board seat most bow the of refusing time of on which Parker demands in while to numerous his the And We and or would X you be would shareholders. to Mr. stress I that cash neither of on add interest which

document, X take to through If XX-page baseless the is essentially you [indiscernible] happen time making claims. read to he less than his

do on entire minute want While claims. to want my record I not rehash letter, those straight the a set specifically do to I to take

First a confident safe and XXX% foremost, that. is am effective product. in and ROLVEDON I

Spectrum. Assertio the acquisition around ROLVEDON whistleblower was aware of of before the claims

The by investigated involved with relevant investigations claims were data in professional outside In and approval. fact, firms. was supplied that those determined those experts that all different to X ROLVEDON's led the required FDA

patients for and by in has It been in well well years safety and with in the demonstrated received in providers. the has U.S. efficacy its has real-world X.X Korea tolerated now South and ROLVEDON been and by patients clinic the market settings. is

safety charges with ROLVEDON do purported the to claims. Second, nothing impairment any had

regards to principles clearly do Assertio simply followed we as established always accounting in asset. any

It was and the calculated disclosures it is Our any why simple. the that clearly impairment that explain and was. way how it

boost and part a it termination. merit. was pending as raised were was whistleblower made. the false leverage in to Parker of claims The That employee subsequently by later thorough ROLVEDON being to and a their the payment without ever was Mr. alleged ever force After those investigation, was related to any The employee. claims reverse without an were terminated dismissed employment referring case former payments claim payment or determined proposed employee made. as about that to is no disgruntled and the brought related a Third, -- is to settlement a value reduction of allegations forward

Parker's exist and statements mischaracterizations settled the times, the with issues, Board misrepresenting circumstances member. past none dots or Finally, have numerous Mr. a is out ripe rehash where long connecting and of including reasons that rambling pointed him of all we former departure to for

know means disposal. defend comments will on expect will stop, I his this our be Today will legal and my turn vigorously business. as reputation of to the While there regulatory my is focus don't using desperate that XXX% we at attacks our you here nothing all last matter I should and

way, my positioning business the and it stabilizing So now in growth the of out coming that transformational to focus to we the in progress are company for the and the I'd like months. with comments back making

dedicated and leadership. As in the and Board. announce Board cannot noted our XX release time with Peter I today, would our Directors X Chairman during Assertio me his him of Board, expertise like the bringing that retired November appreciated deep Meeting, thank instrumental although of enough. I earnings [indiscernible], in service was to on of calm and from to after Peter short, the the I years Board presence together Staple,

interests. miss and In thank for Board through Spectrum. service continuity addition, GCSF of Board the the and integration providing in stepped we has and contributions acquisition long have GCF, the and his of transition back oncology Board. departures the His markets Dr. other these the Jeff will to Dr. to planning. focus Vacirca as were been the business invaluable, to continued and on We many from into Vacirca Both insight

joining appointed of Director, Heather been for over that Assertio Board. interim her Board newly Heather work the role. announce also my on in With has wealth X as Heather that, experience. to serving years, expanded and continuing with prior CEO the to Independent forward I'm been happy I of Mason, has a look to as Chairwoman has she to industry

wealth as executive is David Officer. The I'm and experienced working be am legal X. pharmaceutical relevant of I excited from Stark Board a to with Chief has Teva I in litigator David at at him years Legal expertise again Teva. David also to an capacity. industry announce and XX-plus senior Assertio effective David from excited his retiring and that this the Teva, new were November colleagues brings joined and recently

on to business. Now the

and First today with where me we pleased just line very I'm a foremost, growth. are say starting as let for

As ourselves the product positioning transition I've growth, worth led we is at said previously, this It by more months. ROLVEDON. favorable and legacy the balance modest coming our solid year and of the ROLVEDON debt terms as same that have a stable transformational sheet, restating a about core assets organization good we lead as and is stabilizing INDOCIN time, from growth for to on in

grow. team also industry know the add an dedicated us who excellent capabilities of We opportunity key to professionals this as giving we have extremely enhance or well,

is on our letting Also assets important those lean model be bested us capabilities that will the us to and that to and allow relatively focus sector-agnostic, note commercial our for new landscape broadening parameters.

well as these value specialty integration well build through shareholders reasons, we for as deliver a and all as For significant positioned and providers we branded we go-to-market are focused to serve employees patients strategy. and business a acquisition,

can on platform. flow you call and my focus identifying assets add further I Assertio's we in to remain the will As our on to execution, cash bring scale steady August, with driving first new said

performance, solid demand. ROLVEDON. I'll were first continued to Now turning showing address sales essentially ROLVEDON quarter-over-quarter, QX and steady

we hospital oncology was B. community as community -- to primarily XX% enabling did in that clinic have demand oncology around did This shift offset by where third in focused. and Part space clinics retain the dip space, specifically not oncology some in into see oncology stable as a of the new where continue a customers, have expansion presence. community occur the some in space the due addition well typical we We further clinic the share to seasonality We a can quarter

resonate. There effective stable our market that will continues future are important segments as growth. to on providers a We GCSF and non-biosimilar price but course, positioning stability message safe offer to segments a our solution -- and focused more of a for this to these be patients, and a predictable, dynamic, is further ourselves using position, reliable at remain are

both up early in excited the a as as opportunities. exhibit ROLVEDON same-day the QX and the trial to presented I'm Antonio well it's ROLVEDON wrapped a for poster over Breast about announce next years, as Symposium us excited several dosing Additionally, as clinic the as and market role current that San in data our focused hospital prepare be going December. will in key Cancer those to I'm hospital to play additional at as well into we as market expand

that under for expansion. label As in a of be also available the phases early copies, approved assessment. opportunities very GCSF the may BLA there biosimilar only We're making without

asset. life the INDOCIN, drive Now from continue and a the words generating INDOCIN. manage couple On cash we of cycle process flow about to

activity compounding we generic some is there Although date, X only have competitor. to

levels, at the the holding target of is market x of share which XX% is steady Our internal compounding around market. our

share to and do. price. worked am rightful how is time, same and our market hold familiar something share to at we optimize and maintain work We know for years, our this I of Teva at than will Having compete the XX more very will with the to

growth. and while Looking is this for believe we room that it at underpenetrated the has Sympazan, a there market is smaller asset,

also that and awareness especially leader understand key opinion We support. is Sympazan to responsive

prescription think and markets. call designed we're growth tactics I marketing and to I piloting drive awareness the and key last sales executing on mentioned that prescriber in

we of August record both going a among as a expand in of is and unmet Sympazan specific result It Assertio. time serves seen Although early, demand medical at caregivers I and coalition use patients, and a have my broad of these growing from we look product a of This support July providers prescriptions liked in Sympazan the to and forward. beginning activities. awareness have levels need,

Sympazan there, And assets. a [indiscernible] the buckets. is indicated about and really requires unmet see bit This medical bucket, Factor spoken pain moderately the it to in moderate see said by bucket. opioid that about while our I ROLVEDON, just to opioid-level in about indication about X that I is about I've I like SPRIX significant it. clearly at not to our how I a a some business. growth little And SPRIX. And I've main plan this serves pain of is quick asset severe core then providing much asset states a Sympazan discuss in characterize remaining lastly, I'd just What need see say a and will is talk relief. SPRIX that word level. SPRIX. it I

for the relief asset bigger NOPAIN a forefront ] There XXXX, are for at seriously an for nothing options reimbursement postsurgical pain to opportunity continues relief on focus else, If could is. the SPRIX. back reason than could need us for non-opioid and to currently be SPRIX the believe it very a brings that pain it expands which we X, non-opioid starting January be looking [ to that non-opioid Act, and be

last others. is very have The products and These tail asset that our out generation focus optimization bucket. this In ] it's we'll about legacy includes this, value continue assets of this lost assets. on I bucket to INDOCIN [ CAMBIA, dynamics. or among our exclusivity are and all extract like bucket, to maximum and market in how understand cash face difficult

With remarks, Chief over hand I'll Officer. that, Patel, and conclude it Ajay our Financial I'll my to

I quarter Today, third the cover like Brendan. would Thanks, to our of for results XXXX. financial

I Before Comparisons it lead want to you generic given quarter. in want to throughout this asset occurred to Spectrum ROLVEDON of remind cost our relevant are changes now focus results third in cash of seeing comparisons commentary associated to year the less margin, I note flows will year the the and and INDOCIN that Also, with prior that prior everyone I and operating that our the brings that structure quarter. on acquisition year. my competition in begin, are prior sequential is

were ROLVEDON change continued to million third million the expected of volume lower compared pricing. third sales the second XXXX, quarter $XX $XX.X the slightly driven by quarter in were the in was The million, in growth, offset second our quarter due product quarter. $XX.X being in to sales by the For by net million INDOCIN. down primarily total sales $XX.X from offset ROLVEDON decline

markets. about We share served hold continue in to X/X our

from in pricing a net million by the $X.X driven $X.X quarter, were the lower second quarter, third sales of generic INDOCIN million down in competition. result as

of we split. terms share to target In continue and an volume, hold approximate market

improved and step-up of quarter repeating. from compared third the in XX% in amortization not level second margin gross quarter primarily to and to the XX% write-downs prior inventory due to quarter, Reported

second expenses. quarter. operating in the $XX.X in $X million SG&A the relatively was basis, flat an the $XX.X million from from and to $XX.X at costs, million. decreased was quarter, expense higher $XX.X approximately adjusted change legal-related Turning On was net quarter quarter, excluding in third stock in expense D&A The R&D million decrease to third in compensation, adjusted G&A lower the and charges. primarily operating and million sales other expense partially offset fair in marketing was the value, down by quarter. second due third

performance core was loss a Please includes the press a a detailed adjusted our positive expenses, third income we down lower second million, $X.X loss the operating net of good million, to as million from of GAAP adjusted quarter. for results. lower million product reconciliation offset Because increased for business. EBITDA $X.X of operating a expenses, release partially second quarter QX net income the the EBITDA from in in of was our of number sales. by use a also of quarter indicator noncash $X EBITDA GAAP refer to due adjusted $X.X the

sheet. our and flow cash to over balance Crossing

cash our reference at the total quarter effectively to cash and was remained and equivalents the the million, end $XX.X unchanged cash both short-term of As $XX.X invest investments. second Therefore, the includes cash to a reminder, million. at position Total investments. short-term in cash $XX million and quarter into flat we debt

previously product mix cash capital terms in payments fluctuate flows and INDOCIN to we operating of due of quarterly shift working As from cash to due ROLVEDON. timing to in receipts noted, will

and Third have Year-to-date, in quarter were flows were and collection by we operating generated operations. cash million from negligible from cash cash $XX of product lower timing working sales. capital flows impacted

will instructions. from research to Operator, open covering we please our that, floor With the ahead questions with go the analysts.

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

guidance. didn't about on mention Any you anything . that us? thoughts for Ajay,

Yes. question, Thomas. the Thanks for

of liked You're right. have see would year. Therefore, we're still the range remainder At point, there. the a but we flux in to this narrow range key few to we for that's the out going remaining a areas keep guidance the

areas the from first, the ROLVEDON. focus over we'll as on we INDOCIN stabilizing business of is, into on to Some continue cross focus

pricing continue occurring third market is activity then Secondly, to the generic and landscape competitive as we GCSF in the the dynamic monitor And INDOCIN. of volume landscape.

had and Great. desire not transformative you And follow-up deal then do your last in a a updated -- spoken or some then I about thoughts on conferences this in Brendan, investor and give more XXXX. maybe your in call the us to year smaller as follow-up. maybe think Could you a quarterly that? something

No. Yes.

whether bit what's And assets we starting out the do at -- there of whether a what's continue smaller, that tuck-in. further we we I'm robust small are maybe execute they're So the in landscape the maybe available a look to think and could near larger. are term there. little that we go, more But we they're to think something than

kind it the can depends fits and So we our is, on there, with what really think out get it what what's price how we model. of

optimistic. I'm So

right out before, deals I make said think But there's lots to I doable of it's I sure the there. want fit.

it's make into So something feel to I sure I it. jump we're to don't to. that want for Assertio to price for and don't want paying just right need right the we the like we want I because thing

comes Rahman Maxim line Your Naz with the next from of Group. question

I'll both stabilized? the sort decline? ROLVEDON. do regards on pricing, to prices? that do Do to reached for -- you've pricing pricing think start think pricing you where still you think In this. They're decline stable you the Or of you there's -- room with

very more will the the is pricing. question. the this by this to landscape recent hindered competitive, the market, of are GCSF really the we last in I Ajay. few say for Therefore, Yes, market is continue biosimilars would Thanks and somewhat do. competitors years some the in what with especially driving entrants

our equalize. But would from quarters, one anticipate is share we're on declines Medicare trend market the focused pricing as B the maintaining starts the in market of that absolutely last seen and operate things share of we there. perspective the position have continue we few which over market to We Part a leading one

the timeline NCCN my That bit little happen that same-day does has potential talk to is, it. how And Like could to helpful. and get into Got a guidelines? the question take? you was about data, what that follow-up And there? long following dosing logistics

Yes.

the for thanks question. So

I consider. in for mean window That the it it think potentially could would that but midyear. to make And here roughly is a us data So public with the it I midyear, doesn't work again, be is X-month December. we'll NCCN for about be to then think earliest them

haven't those we between think discussions had somewhere but middle be year. So of conversations I and end or the next those . yet, it will the back

from with question comes [Operator Henry Instructions] AGP. of Scott next Our line the

questions. of couple A

on $XX.X million. First, roughly assume, quarter for XXXX. first quarter still is in place third $XX million, Guidance, quarter $XX.X roughly second ROLVEDON, of million I million, $XX

around got here that about for market Just of think basing about Do ROLVEDON future growth? how the growth get to right in maybe there's million growth think you parts in slower? we've X lot XXXX beyond. here moving it's that a Or of we $XX will your -- out quarters So trying sense and mark. for be of should

Yes. No, question. great it's a

the second You've stable. million So that in $XX space been the enter as Part has think that And Medicare And focusing XXXX, year we'll you million the focused But quarter, you're about oncology Ajay we third community be. market right, about if relatively thank in seen share. X/X of about mean, I $XX where first space, where think right? think roughly is quarter sales B clinic maintain we've we in quarter, been we XXXX, as you. said, in right very I about

XXXX, into we only we're that forth. so that do possible, but space we as beyond further planning think move clinic not that's and is we expand hospitals what into growth As for

for a quarter. long-term We're is this any long we and growth, dramatic play. approaching at approaching We're and for the planning over looking we're term. are category, particular in asset looking not spike ROLVEDON a we're So one this

we continued and plans growth we'll do to continued growth, we with ROLVEDON. see think So drive have that

seemed think number Okay. you a thing. extrapolate currently? And SG&A Is you kind -- fair low. Great. have a quarter the in that's that the on to forward? was good pretty it the Do rate run of It's going

year. of second good lot in the our occur would generally, initiatives Yes, With in restructuring a half had I our company the an the transition is kind say, half -- the in additionally we Scott, and of also quarter of additional SG&A first the with that, we business, S&M question. as lower did Yes, from in of of generally year year. the the beginning first the we

reflected would say run X of on the higher the sufficient rate. kind of remainder for the average is a the I that last quarters So year. of

on the question, I covered for to Okay. a could I And on the retirement company a I believe Board Great. And Peter wanted ask Board final you mandatory while. retiring. retiring, Was age in for any just Yes, update. members. that color a a Staple recall there Dr. if factor was Vacirca the I've retirement give if that -- correctly.

he I said but think something missed have I it. might earlier,

be sure, address happy Yes, I'd both. to

I on So mean, Board been for the XX Peter has years.

different seen X, of X think I worked CEOs. Assertio X he's or a lot of and versions You've with

had approaching or think was it. term So I the approached Peter while age

think Peter I step from the there was retire a a plan Board. for for and back to while

place. to on largely And the because board, between transition between on board. planned on and to Heather Peter was the Interim CEO, former stayed CEO, transition bring He the becoming I was take Heather after then this there me was

has making. So in while the this a been

said opening comments, Assertio has and served phenomenal, in contributions. very really demeanor, board a he -- very as appreciate my what member, his Peter been calm think believe, I great I experienced He's the professional over I well really, and I and years.

clinic for help as integration market on really he to and regards I Vacirca and think Spectrum what was Assertio the oncology and really market believe, Dr. from and understand into that board, Dr. Dr. came with In Spectrum, and to we I Vacirca spectrum did continuity oncology integrated started the Assertio provide the Vacirca. was the GCSF space.

Assertio but think long-term his was So don't don't I the ever Vacirca, want speak Board for to I think don't stay and it intention -- I on to forever. Dr.

lot to fact, of thinking In pay But I interest than attention think to. planned. that he outside longer has other stayed he business needs a he that probably he's

a well. Board for back time So to him this the from good is step as

line Our next Wainwright. question of comes the from Selvaraju Ram with H.C.

choose underlying are on are about wanted just ask, and that granularity, ROLVEDON? new foremost, could to dynamics comment additional first please? that the you're driving to customers what market seeing If in that I you some

with -- I'll say to you competes, Ajay, market want X you and But anything take it I a that said, welcome dynamic the you're slice then give Well, jump in and look, that you're or first, actual the X upon in. think just And my to. competes It very of is depends competing we other or if X GCSFs. as marketplace. other in ROLVEDON

Part You know the in successful B been Medicare compete clinic that We've we space. there.

of recognize a dosing. said that safe I very about play. results see how this access that contract physicians be when lot of it that, you think of we erosion, underscored those things. the right do have the it will formula, And product. the effective Having think ASP lot all and ASP is a I And are of the and same-day providers is managing of is that, is a you recognize ROLVEDON about, lot a a

end that manager. not to is be even making that at of is I sometimes largely play a It comes practice So this might to the the a physician a that a day, a contract times of lot choice. think

particular unaware getting. be GCSF they're patients So may of the

decision Some may a that to by of aware, aware. But be of kind else way. it's overall, Ajay, not makers be lot may level times clinical decided anything some the add? at

us into in on, the it space. [indiscernible] I the side, of Brendan helps kind of then in get with of door on and think product sustaining us share market leading our oncology the appeal the it No, itself spot second the helped stickiness the of terms the hit contracting right? The

the low the revenue evolves? mid-XXs think see on you to is Ajay, I possible that And as mix wanted if, and gross as comment on sustainably margins sort you just product to maintaining follow-up, what trends future then wanted just as of to if gross front, you in see the a margin

to guidance ready Yes. for line. beyond Thomas, in think, as I Yes, anything 'XX right, question. mentioned that No, comment 'XX we're keeping here. our to announced thanks of think for yet I previously kind I We're not

So which comments behind we rate. with product erosion was highly biologic margin as from margin will a additionally, and spend a the gross little on it. COGS that very to there be accretive activity it, ROLVEDON, shift we which margin And commercial a is higher previously stated year-over-year, gross INDOCIN, gross behind a have commercial carries

we shift continue So into and standpoint, XX% for XX% on QX as occurring rate gross to that But well. XXXX. blended do a from see between that we are absolutely pricing focused margin maintaining

As that there remarks. like closing questions, for I over back Brendan the turn the concludes are further session. no any O'Grady to Q&A would conference to

I on ability our today's and we Thank growth. deliver well has I demonstrate steady a have right strategy to believe as further an continued execution as to have want you. to further I help that us as has business commercial just platform, balance call a commitment well I to today. And everyone the as grow assets sheet sound hope joined that to who reiterate platform. team the will excellent the that great today our finding appreciate support we a

all the press at to today. joining with again us in a like schedule a an provided using thank for meeting event be you we'll this an contact management, information to you'd upcoming please or arrange Kreps time Matt update to speak. release, and happy or directly And If call

your That participation. concludes you Thank meeting. today's for

disconnect. You now may