EyePoint Pharmaceuticals, Inc. (NASDAQ:EYPT) Q4 2022 Earnings Call Transcript

Operator: Thank you. One moment for our next question. And that will come from the line of Yi Chen with H.C.W. Your line is open.

Yi Chen: Thank you for taking my questions. Just to clarify, was there any sales product revenue from DEXYCU in the first quarter?

Nancy Lurker: George, do you want to comment on that?

George O. Elston: Yeah. There was Yi. We still had DEXYCU revenues in Q4, but it dropped off meaningfully from the — and then we will file again next week.

Yi Chen: Do you expect any further impairment charge?

George O. Elston: No, so if you look at the results this morning, and you’ll see that we’ve recorded a full impairment of the DEXYCU intangible. And there was — and to the earlier question, there was a little bit of incremental inventory that was reserved for us as well. So from a financial perspective, we start 2023 with a clean slate as it relates to DEXYCU.

Yi Chen: Okay, was there an increase in the price for YUTIQ?

Nancy Lurker: Yeah, we always have very, very modest price increases. But again, we always take very modest ones. And George if you want to just comment what we took in 2022 but again, we typically stay way below inflation. They’re very, very modest.

George O. Elston: Yeah, I think you’ve just — most are the vast majority of the revenue increase for YUTIQ is demand and you could see that in the details quarter-over-quarter. The team continues to do incredibly well with that product. And price is a very small piece of that.

Yi Chen: Got it. And lastly, so shall we expect the gross margin for 2023 to return to the levels observed in the third quarter, second quarter of 2022?

Jay Duker: So I would say that YUTIQ that carried a much higher margin than DEXYCU so I would expect margins to improve as it relates to just that. Because it will largely be just that product in 2023. Again, we’re not giving full guidance on that but it is safe to say that we expect markets to improve because of the weighting higher to YUTIQ.

Yi Chen: Okay, thank you.

Operator: Thank you. I’m showing no further questions in the queue at this time. I would like to turn the call back over to management for any further remarks.

Nancy Lurker: Yeah, I want to thank everybody for your time. I again, want to reiterate I’m very proud of our progress. We are very keenly focused on executing methodically and we expect to have hopefully, a good year in 2023. So thank you very much. Look forward to keeping you all updated as we continue to make progress, especially on our Phase 2 clinical program. Thank you.

Operator: Thank you all for participating. This concludes today’s program. You may now disconnect.