Release Date: May 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Ycanth net revenues reached $3.2 million in Q1 2024, indicating strong demand and growth in the prescriber base.
- Secured a permanent J-code effective April 1, simplifying the billing and reimbursement process, which has already shown an uptick in prescription activity.
- Expanded Medicaid patient coverage significantly, adding New York State, Florida, and Louisiana, now covering 228 million lives.
- Formed strategic agreements with major PBMs and Walgreens, enhancing distribution and accessibility of Ycanth.
- Ycanth received NCE status from the FDA, providing five years of regulatory exclusivity and validating the product's innovation.
Negative Points
- GAAP net loss widened to $20.3 million in Q1 2024 from $6.6 million in Q1 2023, reflecting increased expenses linked to commercial activities for Ycanth.
- Research and development expenses increased by $2.2 million due to additional clinical trial costs and increased headcount.
- Selling, general, and administrative expenses rose significantly by $12 million due to ramping up commercial efforts for Ycanth.
- The company's cash runway is expected to fund operations only into the first quarter of 2025, indicating a potential need for additional capital soon.
- Despite efforts, unlawfully compounded cantharidin remains in the market, posing a competitive threat and safety concern.
Q & A Highlights
Q: Are you able to discuss any additional early metrics around the J-code in April in terms of account demand maybe discuss key learnings as you're walking clinicians to the kind of publication of the April J-code and transitioning to buy and build?
A: Joe Bonaccorso, Chief Commercial Officer, noted that the J-code has seen an uptick in new accounts and has been instrumental in bringing additional hospitals and private practices on board. The publication of the J-code has facilitated the expansion into buy-and-bill, especially as pediatric teams hit the field.
Q: Can you comment on the sales trajectory expectations for the year?
A: Terry Kohler, Chief Financial Officer, mentioned that while formal guidance isn't provided, they expect quarter-over-quarter growth in revenue for the remainder of 2024.
Q: What are you seeing with regard to the number of ampules used per patient so far?
A: Joe Bonaccorso explained that the current usage is around 1.5 to 2 ampules per patient, with expectations to move closer to 3 as patients go through refills. He also noted that visibility inside hospitals is limited, as patient claims data in these settings is not tracked.
Q: How should we be thinking about Q2, just given so much progress versus kind of quarter-to-quarter seasonality, which might impact certain regions?
A: Terry Kohler clarified that while specific guidance isn't provided, the expectation is for continued quarter-over-quarter growth in revenue throughout 2024.
Q: Are you finding that a lot of these physicians are now prescribing Ycanth? Or is this just really early days and you're seeing early interest?
A: Ted White, President and CEO, acknowledged that it's early but they are optimistic about pediatricians' interest in Ycanth. They have seen an uptick in pediatric prescribers and some early adoption of the buy-and-bill model among pediatric offices.
Q: Just wanted to get your expectations around the seasonality of molluscum prevalence through the spring, summer, and fall and potential pull-through to Ycanth usage in pediatrics and even adults.
A: Ted White explained that molluscum contagiosum is observed year-round but peaks during warmer months like June, July, and August when children are more likely to congregate in places like summer camps and swimming pools.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
