Evolus, Inc. (NASDAQ:EOLS) Q4 2023 Earnings Call Transcript

David Moatazedi: Yes. So our business today, to your point, of the 12,000 customers, we’ve said that our largest customer set is the medical spot channel followed by derms and plastics. And we believe that overall for the category in neurotoxins medical spots are the single largest group that does these. We also know derms and plastics. Tend to use, on average, a little bit more filler than medical spa do per treatment. So I do believe that this will accelerate our expansion into new customers. We have heard from customers that are thinking about working with us at the addition of the filler is a catalyst for them. And we do believe that, that’s going to be another growth driver that enables Jeuveau to be more successful over time.

But it starts with establishing a new filler line and the value of that filler product. To the extent that those practices see a lot of the benefits that we’re seeing here in the clinical data relative to other products they may use. We believe that, that will translate over to benefits on the utilization of Jeuveau as well.

Uy Ear: Thank you.

Operator: Thank you. And our next question comes from Douglas Tsao with H.C. Wainwright. Please state your question.

Douglas Tsao: Hi, good afternoon and thanks for taking the questions and congrats on the progress. David, maybe following up on that last question, just when you think about adding the Evolysse fillers, do you think that this — there’s more opportunity for you to add new accounts or maybe talk about the opportunity to just go deeper into accounts might be using Jeuveau, but perhaps are still sort of continuing to use some of the competitor products to get access to discounts on their fillers. Thank you.

David Moatazedi: Yes. Look, I recognize the simple answer is to say one or the other. But the reality of it is we have sales reps deployed across the U.S. that cover a range of customers from our existing users that are very loyal where I hear first-hand that they would love to get Evolysse into their hands and start using the product. So we expect that our existing customers will want to have access, and they’ll want to trial the product. On the other hand, as I’m out in the field, I’m talking to customers that are in some stage of considering partnering with us on Jeuveau and Evolysse and the technology itself and now the data are compelling reasons to start doing that. So I do believe in the end, it’s going to be a mix. It’s hard with product launches to determine which is going to be a big contributor.

But look, we’ve been on the market for 5 years. We command 12% unit share as of the end of this year, not in significant care. And those customers partnered with us because they believe that we’re a quality company that reflects their value system, and we invest in their growth. And I do believe that we’re philosophically aligned with these practices in a way that they would be aligned with us as we introduce a new product to the extent as we can continue to do demonstrate that we have a high-quality differentiated filler that gives their practice unique advantages. And so with that, I do think our existing practices are excited about this. There’s a lot we have to do between now and commercialization. It’s exciting. I can tell you we have a team dedicated 100% to fillers, inside this company working through our commercialization strategy.

It will be different. It won’t be like the other products. And we believe this product has a lot of potential. And so we’re looking forward to this next phase of the company. That being said, we don’t expect the fillers to launch this year. And so our focus is entirely on Jeuveau in the market with practices and we believe that the growth that we’ve demonstrated here in our guidance reflects what we can deliver as a stand-alone single product-focused company this year.

Douglas Tsao: Okay. Great. And then just as a follow-up, when you think about the filler launch, which I hear your point isn’t this year, but I think Sandra talked about some incremental costs associated with it. Do you expect to increase the size of the sales force? Or when you talk about higher expenses for the launch, is that mostly just going to be around promotion and other spend.

David Moatazedi: Yes. I think we’ll be in a position to provide a little more granularity as we get closer to commercialization. The reality of it is we don’t anticipate a large investment in one pocket of this, meaning a significant sales force expansion. I think we have a very diverse organization, this digital footprint that we’ve developed makes us very efficient from an operational standpoint and allows us to maximize our reach despite the size of our field footprint. And so we’re going to continue to lean heavily on our digital capabilities. I would expect there would be some marginal increase in the sales force, but we’ve continued to do that, as you know, every 6 to 9 months. we opportunistically add to our sales force.

We’ve been doing that consistently now for multiple years. As a matter of fact, we did one in the back half of last year. You saw that reflected in our OpEx in the fourth quarter was the cost of expanding that — that team just hit the field in January. So it’s helping us continue to expand our footprint now not only for the Jeuveau growth, we have but in anticipation of the filler that’s coming. And of course, these co-branded media and education are very important parts of the investment mix that we’ll make. And those are things that we’re evaluating now, how we continue to bring products to market in a way that is different from what’s traditionally been done. And I think you can expect that we’ll get creative in that way as we get closer to launch and share that with you.

Douglas Tsao: Okay, great. Thank you.

Operator: Our next question comes from Balaji Prasad with Barclays. Please state your question.