Agile Therapeutics, Inc. (NASDAQ:AGRX) Q4 2022 Earnings Call Transcript

Al Altomari: Yes. I mean two things. One, it’s better than it was, but it’s still not perfect. So, we are routinely answering questions by Congress and the Senate about is it fixed yet, your question, and the answer is no. We believe we shouldn’t even have to do a lot of this work. So, not all of them go through at 100%. So, it’s very plan-specific. Some plans or PBMs do better than others. So, while it’s improved, it’s not perfect. So, we are routinely being advised to answer Congress and answer the Senate on this. They still have an active eye on this. So, I think while it’s getting better, it’s not perfect. And then we do tell doctors. We do tell doctors it’s getting better. But rather than just sending the script down the street to the local CVS, give us the script.

Once it’s in our hands, our hit rate is a lot higher. Amy can €“ I mean it’s as close as we can handle that script across the goal line. But if she goes to a CVS and they say, your card doesn’t work, that’s a big customer die for them. So, that’s why we think specialty pharm and telemedicine are so important to us. I mean that’s the strategy. The more volume we get there, Oren, our hit rate only can go up.

Oren Livnat: Okay. And just lastly, I appreciate the patience. OpEx, you mentioned it being down year-over-year. I guess can you talk about that? Is that expected to be sort of flattish or up a little bit from the current level as you sort of have these new programs rolling out and you suddenly get a lot more traction? And I guess on your guidance of $25 million to $30 million, you have an ambition of actually potentially cash flow breakeven at some point before the year-end, which would be pretty remarkable. And I am just trying to figure out, at what OpEx level do you feel like you can maintain sustainable growth, right? Like you have obviously reorganized a lot, and you have got a lot of momentum on the sales side. How much gross long-term do you think you can sustain beyond even 2023 and just reaching breakeven with this footprint? Do you think you are right-sized for substantial growth beyond 2023, or would you have to start investing more again?

Al Altomari: No, to answer your last question first, I believe we are right-sized and we can sustain growth, the growth we are on. But it’s based on one word, Amy’s ability to partner. We can’t do it alone. So, I think as long as we have these great partnerships, Oren, maintain a strong presence in the field and a good leader like Amy that can really keep all €“ everybody working on all the oars in the water at the same time. I think we can continue to sustain this growth, right. And down the road, we would love to invest in the business again, I will be honest. But we are not there yet. But I am not going to try to pull them out either. I mean I think we have a good investment to work off of, and I am happy and I am pleased with the level.