Release Date: May 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Alimera Sciences Inc (ALIM, Financial) reported a 70% increase in consolidated global net revenue to $23 million in Q1 2024 compared to Q1 2023.
- The company achieved positive adjusted EBITDA of $1.8 million in Q1 2024, a significant improvement from an EBITDA loss of $2.4 million in Q1 2023.
- U.S. net revenue increased by 92% to $14.6 million in Q1 2024, primarily driven by the acquisition of boutique and increased end-user demand.
- International net revenue grew by 42% to $8.5 million in Q1 2024, with a 53% increase in user demand across key markets such as the UK, Portugal, Ireland, Spain, and France.
- The UK's National Institute for Health and Care Excellence (NICE) issued final guidance expanding potential user base for Iluvien in treating visual impairment caused by chronic diabetic macular edema.
Negative Points
- Revenue in Q1 2024 was below that of Q4 2023 due to seasonal declines, as patient deductibles reset and physicians resubmit benefit verifications.
- Net loss widened to approximately $6.3 million in Q1 2024 from $5 million in Q1 2023.
- Total operating expenses in Q1 2024 increased to approximately $22 million from $14.8 million in Q1 2023, driven by higher sales, marketing, and administrative costs.
- Despite positive growth, the company noted that revenue and adjusted EBITDA are expected to fluctuate quarter to quarter due to the seasonality of the business.
- The company faces challenges in integrating messaging for multiple products within the limited time of clinical interactions, impacting the efficiency of sales efforts.
Q & A Highlights
Q: With the integration of new products, how is the sales force managing to discuss both Iluvien and ETP within the limited time they have with clinicians?
A: Rick Eiswirth, President and CEO of Alimera Sciences, noted that combining discussions of both products in a single clinical visit is challenging due to competing demands for clinicians' time. Todd Wood, President of US Operations, added that the company is focusing on educating providers about chronic inflammation diseases related to uveitis, which may not be classic uveitis but are still relevant for their products.
Q: Has Alimera Sciences considered implementing a rebating strategy to enhance initial conversations and drive demand for their products?
A: Rick Eiswirth confirmed that as of April 1st, Alimera has initiated a nonclinical value program in the US, which offers value back to practices using Iluvien and ETP more consistently. This program is expected to impact purchasing patterns positively.
Q: Can you provide details on the financial support for the protocol AL. trial and the potential market size for radiation retinopathy patients?
A: Rick Eiswirth explained that Alimera is contributing about $1 million over four to five years to the study, amounting to approximately $250,000 annually. He also mentioned that radiation retinopathy is considered an orphan disease indication with less than 10,000 patients affected annually.
Q: What impact do you expect from the UK NICE's new guidance on Iluvien for treating chronic DME in phakic patients?
A: Rick Eiswirth stated that this could more than double the market for available patients in the UK over time. However, specific revenue impacts will be clearer after a few more quarters of experience with this new guidance.
Q: What are the plans for expanding indications for Iluvien and ETP, and is there any off-label use for other conditions like RVO?
A: Rick Eiswirth shared that advisory boards are exploring potential new indications, with vein occlusion being a leading candidate. He acknowledged that some physicians have used Iluvien on a compassionate basis for RVO and are seeing positive outcomes.
Q: How is the new sales messaging being received in the field, and what is the current size of the sales team?
A: Todd Wood reported positive reception to the new messaging focused on early intervention and consistent treatment. Rick Eiswirth added that there are currently 35 territories in the U.S. covered by their sales team.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
