Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- OptiNose Inc (OPTN, Financial) reported a 3% increase in net revenue for the third quarter of 2024 compared to the same period in 2023.
- The company observed a significant inflection in new prescription demand, indicating potential for future growth.
- OptiNose Inc (OPTN) achieved improved insurance coverage, including inclusion in Express Scripts' national formularies, enhancing patient access.
- The average net revenue per prescription increased by 36% year-over-year, driven by favorable business mix and changes to the copay support program.
- The company maintained tight control over operating expenses, resulting in favorability compared to original expectations.
Negative Points
- Third-quarter revenue was below expectations, partly due to slower-than-anticipated uptake.
- The company reduced its full-year 2024 revenue guidance from $85-90 million to $75-79 million.
- There was a delay in the inflection of prescription growth trends, impacting financial projections.
- Challenges in optimizing the new hub services and pharmacy network required more time and effort than anticipated.
- Approximately 50% of commercial covered lives are still subject to prior authorizations, creating hurdles for prescription fulfillment.
Q & A Highlights
Q: Could you explain why the guidance for the fourth quarter appears conservative, implying a sequential decline?
A: Terry Kohler, CFO: In the third quarter, our revenue was affected by inventory stocking in the channel, which represented a little under $3 million. For Q4, our guidance reflects an adjusted Q3, expecting a step up in demand.
Q: What proportion of insurance plans covering XHANCE have updated their policies for the new indication?
A: Ramy A. Mahmoud, CEO: It's challenging to determine precisely, but we believe most plans have updated their coverage to include both approved indications.
Q: Is there any change to the guidance for full-year profitability in 2025?
A: Terry Kohler, CFO: We are evaluating our performance in the fourth quarter and how it will impact our expectations for 2025 revenue. We are not providing 2025 guidance at this time.
Q: Can you discuss the cost structure and how you're managing spend to achieve profitability?
A: Ramy A. Mahmoud, CEO: We are cautious about spending and continuously monitor our investment rate based on business responsiveness. We believe there is incremental opportunity for investment even within our current specialty space.
Q: How is the uptake different between polyp and non-polyp patients, and is this distinction made by prescribers?
A: Ramy A. Mahmoud, CEO: We have difficulty distinguishing between nasal polyps and chronic sinusitis in our business. We focus on overall business performance rather than specific diagnosis fractions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
