Aytu BioPharma, Inc. (NASDAQ:AYTU) Q2 2023 Earnings Call Transcript

So, more to see there, but script trends are really encouraging when you look at the February scripts.

Vernon Bernardino: Just to follow-up on that, though. Would you consider this — I mean, it seems like demand is growing. And so it would not seem to be a zero-sum game, but do you anticipate perhaps that you’re — Adzenys from taking advantage of those needs and shortfalls, for example, could be maintained. What efforts could you see that could accelerate that? And then perhaps long-term, maintain that kind of — if you could characterize as market share.

Josh Disbrow: Yes, it’s a good question. And one thing that’s important to note about ADHD, of course, is that it’s chronic. And so once you get a patient converted from a product like Adderall XR, you would expect to maintain that patient. And so, you’re going to see a step function and one that would sustain itself. You’re not going to — and you would not expect that a patient gets one prescription of Adzenys and then Adderall comes back into supply and then they switch off of Adzenys and go back to Adderall, quite the opposite. In fact, once patients are on a product with which they’re satisfied, they’ll stay on it, and so that annuity value is now coming off of an even higher base. And so if you look at new prescriptions, which generally speaking, all of these prescriptions in the stimulant class are considered new, but when you triangulate the data and look at new starts versus refills, you would clearly expect the refills to now be able to pivot off of a much higher baseline of new starts.

And that is what we’re seeing, and that’s one of the things that is exciting to us from a business perspective. And of course, from a humanistic perspective, we’re able to wear the white hat, so to speak, and come in and be a real help to these patients and their families. And obviously, from a revenue perspective, we are going to operate off of, we think, a higher baseline from which to gain refills, and so it’s exciting for us. We definitely are seeing signs that patients are starting on Adzenys. They’re continuing on to Adzenys. And of course, we have the RxConnect platform that enables them to continue to have a good experience to get refills at a predictable co-pay, even at times of the year like January, February, March, when they have a higher co-pay due to their deductible still needing to be worked down.

We’ve got the ability to maintain these patients on such that as we get into the second half or even second sort of two-thirds of the year, these patients’ co-pays will maintain the same and we’ll obviously realize a higher net selling price by virtue of a lower buy down. So the net benefit for this is tremendous for us as we think about the relative near term and then as we go forward with higher refill rates and just more patients overall on therapy. And just to put a capstone on it. For us to hit 7,200 prescriptions in a week is by far the highest the brand has experienced in its history, that goes all the way back to when Neos had a brand and had almost 130 sales representatives selling it. We now have something in the neighborhood of 40 sales representatives selling it, and we’ve hit that all-time high.

So things are clearly working, and it’s a combination of these tailwinds that are brought about by the shortages, but it’s really complemented by the sales force execution, this young, hungry sales force, coupled with the power and the leveragability of Aytu RxConnect. And so all three of those things are working together right now to really drive prescriptions and we’re excited about where we are.