Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Cormedix Inc (CRMD, Financial) reported net revenue of $11.5 million for the third quarter, exceeding street consensus.
- The company has secured new agreements with two midsized dialysis operators and one large-scale operator, expanding access to 60% of US dialysis clinics.
- Cormedix Inc (CRMD) expects to achieve positive EBITDA in the fourth quarter, indicating strong financial performance.
- The company has a robust cash position with $46 million in cash and cash equivalents as of September 30, 2024.
- Cormedix Inc (CRMD) is actively working on expanding the label for DefenCath beyond hemodialysis, indicating potential for future growth.
Negative Points
- There is significant variability in fourth-quarter revenue projections due to the timing and scale of purchases by large dialysis organization (LDO) customers.
- The setup for protocolizing DefenCath can take several weeks to a few months, potentially delaying revenue realization.
- Operating expenses increased by 33% in the third quarter compared to the same period in 2023, driven by higher selling, marketing, and G&A expenses.
- The inpatient uptake process for DefenCath is expected to be longer and more consistent with traditional inpatient launches, delaying potential revenue from this segment.
- The company is not providing specific revenue guidance for the fourth quarter due to uncertainties in customer onboarding timelines.
Q & A Highlights
Q: Can you speak to the use of DefenCath and whether it's driven by individual doctors or institutional protocols? Also, how do reimbursement dynamics compare to what you're seeing during the launch?
A: The use of DefenCath is primarily driven by institutional protocols rather than individual doctors. Facilities are establishing criteria for its use and implementing based on those criteria. Regarding reimbursement, claims data shows a broad dispersion across Medicare Advantage, commercial, and Medicaid, but it starts with fee-for-service patients before expanding.
Q: What are the stocking and order frequency dynamics for DefenCath, and how might macro factors like hurricanes affect distribution?
A: Initial customers are holding about 10 days of inventory, while larger customers may hold 15 to 30 days. There was some disruption in the Southeast due to hurricanes, but trends have largely returned to normal.
Q: How consistent are patient types across different providers, and is there an opportunity to educate providers on DefenCath usage?
A: There is variability in how providers identify patient types for DefenCath, with some triaging based on benefits verification and others on high-risk criteria. This variability presents an opportunity to educate providers on broader usage.
Q: What percentage of Q3 sales did US Renal Care represent, and can this partnership be replicated with other partners?
A: US Renal Care accounted for over 90% of Q3 sales. The successful implementation with them is something we aim to replicate with other partners, particularly large dialysis organizations.
Q: Can you provide insights into the nephrology community's feedback on DefenCath since its launch?
A: Feedback has been positive, with no changes required to workflow and easy-to-understand clinical results. The nephrology community appreciates the product's effectiveness, and we continue to receive positive feedback from nurses, physicians, and patient advocates.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
