PetVivo Holdings, Inc. (NASDAQ:PETV) Q2 2024 Earnings Call Transcript

PetVivo Holdings, Inc. (NASDAQ:PETV) Q2 2024 Earnings Call Transcript November 14, 2023

Operator: Welcome, everyone, to the PetVivo Holdings, Inc., 2024 Fiscal Year Second Quarter Earnings Report. This is November 14, 2023, and I will now hand over to Mr. John Dolan to start the call.

John Dolan: Thank you, operator. Greetings, and welcome to the PetVivo Holdings second quarter of fiscal year 2024 financial results conference call. I am John Dolan, the Chief Business Development Officer and General Counsel at PetVivo. Today’s call is being webcast and will be posted on the company’s website for playback. Before we begin, I would like to remind everyone that comments made during this conference call by PetVivo’s executives may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties. Any statement that refers to expectations, projections, or other characterizations of future events, including financial projections or future market conditions, is a forward-looking statement.

PetVivo’s actual future results could differ materially from those expressed in such forward-looking statements for any reason, including those listed in its SEC filings. PetVivo assumes no obligation to update any such forward-looking statements. PetVivo filed its earnings release and Form 10-Q with the SEC today, which provide a detailed discussion of our financial results. These documents can be found in the SEC website and the Investor Relations section of our website. I would now like to turn the call over to John Lai, the CEO and President of PetVivo. Please go ahead, John.

A close-up of a medical device, exemplifying the company’s cutting-edge proprietary technology.

John Lai: Thank you, John, and welcome. Also joining me today is Bob Folkes, our Chief Financial Officer. I would like Bob to begin discussing some highlights and financial results for the second quarter of fiscal year 2024. John Dolan will provide an update on our clinical studies. And I will conclude by sharing some additional thoughts on our business strategy and key focus areas for fiscal 2024 before we open the line up for questions. I will now turn it over to Bob.

Bob Folkes: Thank you, John, and good afternoon, everyone. Our key highlights for the second quarter fiscal year 2024 include, we reported revenues of $207,000 as compared to $223,000 in the second quarter of fiscal year 2023. Revenues for the second quarter included net revenue of $143,000 as compared to $118,000 in the second quarter fiscal year 2023 from shipments of spring to MWI Animal Health, a subsidiary of AmerisourceBergen, who is a leading distributor of animal health products pursuant to our distribution and sales agreement with MWI. We also reported revenues of $64,000 on direct sales to veterinary clinics as compared to $105,000 in the second quarter of fiscal year 2023. We also raised $2.35 million from the sales of the company’s common stock and a convertible note offering and a registered direct offering in August of 2023.

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Q&A Session

And we raised $1.7 billion in October and November of 2023 from the sale of 725,000 shares of the company’s common stock pursuant to the ATM sales agreement with ThinkEquity LLC and in a private offering. And finally, we released clinical study results, which demonstrate the benefit and tolerability of an intra-articular injection of Spryng into the stifle joints for dogs with suspected cruciate ligament rupture, kind of similar to ACL tear in humans. And I would like to turn the call over to John Dolan to provide more color on this cruciate ligament study and on our additional clinical studies.

John Dolan: Thank you, Bob. As Bob just mentioned, the final results for our clinical study conducted by Ethos Veterinary Health, a nationally renowned operator of 145 world-class specialty veterinary hospitals was presented at the American College of Veterinary Surgeons Conference on October 12 through the 14th 2023 in Louisville, Kentucky. The study involved evaluating the benefit and tolerability of intra-articular injections of Spryng into the stifle joint of dogs with suspected partial or complete cranial cruciate ligament rupture. An abstract highlighting the results of the first cohort of dogs in this study was presented at the Veterinary Orthopedic Society Conference in March 2023, which demonstrated that Spryng is a minimally invasive management option for dogs suffering from cranial cruciate disease.

The final results of the Cranial Cruciate Disease study provided by Ethos indicated significant improvement in 39 dogs injected with Spryng. All primary and secondary clinical endpoints related to pain, leanness and quality of life were achieved. It is our position that this clinical trial demonstrates that Spryng as a reasonable, non-invasive alternative for patients with Cranial Cruciate Disease, CCD, when patients and/or owners factors preclude surgical intervention. We previously indicated in our earnings call in August 2023, that we anticipated that three of our Small Animal clinical studies were published within the next three or four months. Two of those studies were tolerant studies also referred to, as safety studies. These two tolerant studies have been caught in the review process of two reputable publications longer than anticipated.

In view of the company’s ongoing release, of efficacy studies, we believe it is important to make the data from the tolerance studies available to veterinarians. Therefore, we have decided that white papers on the tolerant studies will be created and publicly made available through electronic and print publication by the company. The results of such — of each of these tolerant studies demonstrated the safety of Spryng. The acquisition of clinical data proving the safety and efficacy of Spryng and a multitude of indications is incredibly important to pet vivo. As previously suggested, the company has another three Canine Studies and two Equine Studies currently progressing with results from these studies planned for release in 2024. Furthermore, the company plans to organize and conduct more clinical studies to expand our library of data that demonstrates the safety and efficacy of Spryng in a variety of indications.

Such a library will assist our sales team to gain veterinary acceptance of Spryng. I would like to turn it back over to John Lai.

John Lai: Thank you, John. We have recently witnessed a very positive response from veterinary doctors, specifically in the Small Animal side. I was at the US Vet Show last week in New York City. And I would have to say, over 70% of the vets we — when they saw the Spryng Shirt made comments about the product and that really sets us up nicely with having the MWI reps, they would to call on these Small Animal reps or Vet, I’m sorry. So the positive results that we got from Ethos that we presented about not us, but the Ethos clinician presented ACBS about six weeks ago really adds to help solidify the argument or the proposition that was made in the Tammy Grub article, which is a peer-review article on spinous being a first use product.

The other part of that article was that Spring would be an excellent alternative or very good alternative to dogs that have a reaction — negative reaction to NSAIDs, which is the gold-standard therapy. So, about 5% of the dogs out of the 83 million dogs would have an issue taking NSAIDs. And the argument there was that Spring would be a great alternative. And with this data, we’re able to really start marketing to the small animal vets. We are also gathering a lot of key opinion leaders in the marketplace in the small animal side, which are talking about Spring at the various conferences. And that was one of the goals we wanted to get to a couple of years ago when we first went on NASDAQ, we talked about the importance of podium presentations at all these conferences that are coming up because it’s the KOL, the key opinion leaders that talk about Spring, and now we’re starting to get scientific data to support the first the first-use thesis, because the first-use thesis gives a much better opportunity for veterinary doctors to adopt versus using the product on the worst-case animals, which they call last use or disasters to try to save the dog from being put down.