NASDAQ:OPTN OptiNose Q3 2023 Earnings Report $9.28 +0.02 (+0.22%) Closing price 04/25/2025 04:00 PM EasternExtended Trading$9.28 0.00 (0.00%) As of 04/25/2025 04:05 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings HistoryForecast OptiNose EPS ResultsActual EPS-$1.20Consensus EPS -$1.50Beat/MissBeat by +$0.30One Year Ago EPSN/AOptiNose Revenue ResultsActual Revenue$19.82 millionExpected Revenue$17.80 millionBeat/MissBeat by +$2.02 millionYoY Revenue GrowthN/AOptiNose Announcement DetailsQuarterQ3 2023Date11/9/2023TimeN/AConference Call DateThursday, November 9, 2023Conference Call Time8:00AM ETUpcoming EarningsOptiNose's Q1 2025 earnings is scheduled for Tuesday, May 13, 2025, with a conference call scheduled at 10:00 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Q1 2025 Earnings ReportConference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by OptiNose Q3 2023 Earnings Call TranscriptProvided by QuartrNovember 9, 2023 ShareLink copied to clipboard.There are 5 speakers on the call. Operator00:00:00Good day Speaker 100:00:00and thank you for standing by. Welcome to OptiNose Third Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. You will then hear an automated message advising your hand is raised. Speaker 100:00:23Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jonathan Neely, Vice President, Investor Relations and Business Development. Please go ahead, sir. Speaker 200:00:35Good morning, and thank you for joining us today as we review OptiNose's Q3 2023 performance and our plans for the remainder of the year. I'm joined today by our CEO, Doctor. Rami Mahmoud and our Chief Commercial Officer, Paul Spence. The slides that will be presented on this call can be viewed on our website, optinose.com, in the Investors Before we start, I would like to remind you that our discussions during this conference call will include forward looking statements. All statements that are not historical facts are hereby identified as forward looking statements. Speaker 200:01:02Forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those indicated by such statements. Additional information regarding these factors and forward looking statements is discussed under the cautionary note on forward looking statements section of the earnings release that we issued today, as well as under the Risk Factors section and elsewhere in OptiNose's most recent Form 10 ks and 10 Qs that are filed with the SEC and available at their website, sec.gov, and on our website at optinose.com. You're cautioned not to place undue reliance on forward looking statements. The forward looking statements during this conference call speak only as of the original date of this call or any earlier date indicated in such statement. We undertake no obligation to update or revise any of these statements. Speaker 200:01:47We will now make prepared remarks and then we will move to a question and answer session. With that, I will now turn the call over to Ronny. Speaker 300:01:53Thank you, Jonathan, and thank you to everyone listening for joining us this morning. We appreciate you joining us for our Q3 update. Starting on Slide 3. We'll go into more detail in a moment, but I'd like to highlight 3 key takeaways from today's presentation. First, I'd like to reiterate the significance of the opportunity in front of us, which we believe has potential to reshape our business in the coming months and for years into the future. Speaker 300:02:18Claims data suggest that CS is currently being diagnosed by healthcare providers at least 10 times more frequently than nasal polyps. 2nd, I'd like to remind you that our supplemental new drug application for the new indication for XHANCE is far along in the FDA review window. We submitted our application in February and are rapidly approaching the FDA target action date in December. And last, Our results demonstrate that we have continued to successfully execute on our 2023 operating strategy. That strategy has been to greatly increase our operating efficiency And to stabilize revenue in the current comparatively niche indication, while preparing our organization to seize the opportunity created by the potential approval of XHANCE as the first prescription treatment for one of the most common diseases diagnosed in adult outpatient medicine. Speaker 300:03:08We believe the new launch opportunity Can enable us to build a profitable ENT and allergy focused business by accessing greatly expanded net revenue potential through an efficient existing base of commercial capabilities. In addition, as I previously noted, we continue to actively explore commercial partnerships in primary care And other approaches to accessing the incremental value beyond what we can create on our own in the largely specialty segment where we're currently deployed. Turning to Slide 4. We believe future approval of XHANCE as the 1st and only FDA approved treatment for CS Has potential to increase the number of patients for whom the product can be promoted by at least tenfold because medical claims data indicate In order of magnitude, more patients are currently being diagnosed with chronic sinusitis than are being diagnosed with nasal polyps. We believe that nasal polyps is also under diagnosed relative to the published prevalence, in part because it can be difficult to visualize the part of the nasal labyrinth for policy merge in offices that do not have the ability to perform nasal endoscopy. Speaker 300:04:14This further accentuates the potential associated with a new indication that is more amenable to office diagnosis by a broad range of physicians. The new indication would create opportunity for strong growth within our existing commercial footprint, promoting largely to specialists who see large numbers of patients with the diagnosis. And the newly expanded universe of patients would also include Patients cared for by physicians outside of our current commercial reach and we are actively exploring commercial partnerships, alternative selling models and other ways to facilitate future outreach to those physicians and patients. Turning to Slide 6. Previously, we announced that the FDA accepted our supplemental new drug application in pursuit of an XHANCE indication for the treatment of patients with chronic rhinosinusitis. Speaker 300:05:03This is a novel indication for which the agency has never previously approved any drug product. Our regulatory and clinical teams have focused I'm being responsive to the FDA during the review, and they will continue to do so through the remaining weeks of the review process. The FDA action goal date is December 16th this year. Turning to Slide 8. As a reminder, our objective in 2023 has been to stabilize demand trends in our current nasal polyps specialty business With a reduced commercial footprint and materially reduced expense, while both preserving necessary launch capabilities and improving operational efficiency and effectiveness of our commercial resources. Speaker 300:05:47This is intended to best set us up for successful launch of XHANCE into the new chronic sinusitis space in 2024. With that objective in mind, we are very pleased by XHANCE prescription demand results In the Q3 of 2023. As we discussed in our last call, overall prescription demand in the first half of the year for XHANCE We're stronger than we initially anticipated. This has created the opportunity for us to take thoughtful action to attempt to reduce both the number and proportion of unprofitable prescriptions. We are seeing early evidence in our prescription data that our actions have begun to produce the intended outcome, which is also resulting in an improvement in the average net revenue per prescription. Speaker 300:06:31Regarding prescription demand, In the Q3 of 2023, there were approximately 27,400 new prescriptions for XHANCE, A decrease of 4% compared to the Q3 of 2022. In addition, there were approximately 84,100 Total prescriptions for XHANCE in the Q3 of 2023, a decrease of 6% compared to the Q3 of 2022. We measure breadth and depth of physician prescribing by estimation of the total number of physicians who have patients filling various numbers of XHANCE prescriptions. Regarding breadth, in the Q3 of 'twenty three, there were approximately 8,400 physicians who had a patient fill at least one prescription of XHANCE, An increase of 5% compared to the Q3 of 2022. Regarding depth, the number of physicians who had more than 13 XHANCE prescriptions filled by their patients in the quarter decreased from 1485 in the Q3 of 2022 to 1346 in the Q3 of 2023. Speaker 300:07:39I'd like to note that all the data on this Slide is estimated based in part on monthly prescription and inventory data from third parties and on data directly reported to us by pharmacies that are part of the XHANCE I will also note that the Q3 2022 data we're showing today reflects our current 2023 methodology. For reference, we footnoted our prior estimates based on prior methodology. I'll now turn the call back over to Jonathan to discuss Q3 financial performance. Speaker 200:08:08Thank you, Rami. Turning to Slide 10. We are encouraged by our Q3 2023 financial results. They are shaped by our strategy to prioritize capital resources for The potential launch of XHANCE is the first ever FDA approved drug treatment for chronic sinusitis. As we reported earlier, Optinotis recognized $19,300,000 of SG and A plus R and D expenses in the Q3 of 2023. Speaker 200:08:32This is approximately a $9,000,000 or 33 percent decrease compared to Q3 2022 expenses of $28,800,000 Regarding revenue, OptiNose recognized $19,800,000 of Xtance net revenue in the Q3 of 2023, 1% decrease compared to Q3 2022 net revenues of $20,100,000 As Rami referred to earlier, the strength in demand And the first half has afforded us the opportunity to make gradual changes that we intend to have a positive influence on profitability now and in the future. As an example, in 3rd Q4, we revised our co pay assistance program in a way that we expect will result in exchanging some of the first half twenty twenty three demand strength Within the uncovered commercial patient segment for increased profitability. Based on available prescription and inventory data purchased from third parties And on data that we receive directly from our preferred pharmacy network, the estimated XHANCE average net revenue per prescription for the Q3 of 2023 was $2.36 A 6% increase compared to $2.23 of estimated revenue per prescription in the Q3 of 2022. Overall, our results for the 1st 9 months of the year continue to align with our intent to reduce use of cash in 2023. We reduced operating expenses by $32,000,000 or 33 percent in the 1st 9 months of 2023 when compared to the 1st 9 months of 2022. Speaker 200:09:56We have also outperformed our initial expectations for revenue, and we achieved this while sustaining product demand and maintaining the capabilities and resources We believe will be necessary to enable a successful launch of the potential new indication for XHANCE in 2024. As a final note on results, We reported a cash position of $66,800,000 as of September 30, 2023, a use of $27,400,000 on a year to date basis. Turning to Slide 12. As I just mentioned, XHANCE net revenues remained stable and strong in the 3rd quarter. As a result of that performance, we've increased our revenue expectations for full year 2023 by raising the low end of the range. Speaker 200:10:38We now expect XHANCE net revenue for the full year of 2023 to be between $66,000,000 $70,000,000 Previously, we expected XHANCE net revenue to be between $64,000,000 $70,000,000 With respect to XHANCE average Net revenue per prescription, we continue to expect our average net revenue per prescription to be approximately $200 for the full year of 2023. Finally, we continue to expect operating expenses defined as sales, general and administrative plus research and development expenses for full year 2023 To be in the range from $88,000,000 to $93,000,000 of which approximately $6,000,000 is stock based compensation. I will now turn the call back over to Rami for closing remarks. Rami? Speaker 300:11:22Thank you, Jonathan. Before moving to take any questions, I'd like to reiterate Significance of the opportunity in front of us, which we believe has potential to really reshape our business in the coming couple of months and for years into the future. We've continued to successfully execute on our 2023 operating strategy, which has been to greatly increase operating efficiency and stabilize revenue, We believe the new launch opportunity could enable us to build a profitable ENT and allergy focused business by accessing greatly expanded net revenue potential through an efficient existing base of commercial capabilities. In addition, as I said before, we continue to We will actively explore commercial partnerships in primary care and other approaches to accessing the incremental value beyond what we can create on our own in the Specialty segment where we're currently deployed. With that, I'd like to thank you for your attention and open up the call for Q and A. Speaker 100:12:26Thank you. One moment while we compile the Q and A roster. One moment for our first question please. Our first Question will come from the line of Thomas Flaten with Lake Street. Your line is now open. Speaker 400:12:50Thank you. Good morning, guys. Appreciate you taking the questions. Rami, you mentioned the FDA review was far along. I'm curious if you could confirm if you've started label negotiations? Speaker 300:13:00Thanks for the question, Tom. We are 37 days away from our target action date, which is a little before the time when we would expect label negotiations So no, they haven't started yet, but neither have we expected them to start quite yet. They may start soon within this month. Speaker 400:13:20Great. And Jonathan, you mentioned that there was some co pay restructuring that you were doing that might make Q4 more profitable. I'm assuming you meant on a Revenue per prescription basis, you guys are averaging ahead of the $200 for the year, which would imply that you'd have a downshift to get to $200 I know you say approximately, but Could you give us some more color on what you expect that sequential move in revenue per prescription to be based on the changes to co pay, etcetera, that you mentioned? Speaker 200:13:47Yes. First off, I guess, on a year to date basis, there's some additional material in the presentation today in the appendix. But just to confirm, we're actually at $197 on a year to date basis. So we are Still slightly below that $200 mark. But as you point out, in Q3, we had a $2.36 revenue per And so we think that we're in a really good shape in terms of going into the Q4 where typically the last 3 quarters of the year, you have better revenue per prescription than you do in the Q1 of the year. Speaker 200:14:26And we should Close out the year in our expectations somewhere around that $200 mark. Speaker 400:14:36And then final one from me. Just a final one. Rami, in your prepared comments right at the conclusion there, you said you're continuing to explore Primary care partnerships and I don't know how you phrased it, but you said something like other approaches. I was curious if you might flush out for us what other approaches might be aside from a primary care partnership? Speaker 300:15:00Well, and I'll invite Paul to comment if he likes as well. But, there are a variety of, emerging Promotional approaches that do not involve pure reliance on direct selling, for example, leverage of direct to consumer outreach and telemedicine. And we are exploring a variety of different kinds of approaches that might be applicable to our product and our audience For commercializing the product, other than just the traditional direct sales model. Speaker 400:15:32Great. Appreciate you guys taking the questions. Thank you. Speaker 100:15:35Thank you. One moment for our next question please. Our next question will come from the line of David Amsellem with Piper Sandler. Your line is now open. Operator00:15:49Hi, thanks. This is Skyler on for David. First, I just have a hypothetical. If somehow the label extension did not occur for some reason, how do you think about strategic And how would that impact the overall company and long term plans for XHANCE? And then I have a follow-up after. Speaker 300:16:05Hi, Skyler, and thanks for the question. So the strategic future as a company will be significantly different if the Product is not approved on December 16th. The specifics of what the company's strategic options would be and the kind of options that would be most appropriate for us Well, in part, be governed by the nature of the FDA response and the kinds of actions that might be required, to continue to pursue the indication. So it's a little premature for us to speak specifically about what strategic options we'd be pursuing. I can only say that We would remain open to a variety of strategies, driven by whatever the circumstances are that emerge when we get the actual response letter. Operator00:16:50Got it. That makes sense. And then next on the payer landscape, with the expanded label, what would you think What would be the net pricing per prescription would look like? Any additional details you could give there would be helpful. Thank you. Speaker 300:17:05So it's hard to speak with confidence about the future when a variety of So I can't be certain. But our belief, as I think we've said before, is that we don't think there will be any material change to the Pricing of the product based purely on the approval. In other words, the price of the product and the net price of the product, The day after approval will be the same as it was the day before approval. Operator00:17:37Okay, got it. Thank you. Speaker 100:17:40Thank you. I'm showing no more questions at this time. I'd like to hand the conference back over to Doctor. Mahmoud for closing remarks. Speaker 300:17:49So in conclusion, I think we're all very happy with how this year has gone so far. As you've seen illustrated through Q3, The company has really delivered on stabilizing revenue at dramatically lower cost. We think the company is now very well positioned To be a stable foundation to efficiently launch into a new indication in next year and in the next month or 2 here, we're really looking forward to that opportunity. Thank you all again for joining this morning and we look forward to talking to you again soon. Speaker 100:18:20This concludes today's conference call. Thank you for your participation. You may now disconnect. Everyone, have a wonderful day.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallOptiNose Q3 202300:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) OptiNose Earnings HeadlinesOptinose Reports 2024 Financial Results, Highlights Prescription Growth and First Operational IncomeMarch 28, 2025 | msn.comOptinose reports Q4 EPS (3c) vs ($1.33) last yearMarch 27, 2025 | markets.businessinsider.comFrom Social Security to Social Prosperity?In less than a decade, Social Security could be out of money. But a surprising plan from Trump’s inner circle may not just save the system — it could unlock a major opportunity for savvy investors. Financial insider Jim Rickards calls it “Social Prosperity,” and says those who act now could see the biggest gains.April 26, 2025 | Paradigm Press (Ad)Optinose Reports Fourth Quarter and Full Year 2024 Financial Results and Recent Operational HighlightsMarch 26, 2025 | markets.businessinsider.comSHAREHOLDER INVESTIGATION: Halper Sadeh LLC Investigates GB, RDFN, PRA, OPTN on Behalf of ShareholdersMarch 25, 2025 | morningstar.comOptinose downgraded to Neutral from Buy at H.C. WainwrightMarch 22, 2025 | markets.businessinsider.comSee More OptiNose Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like OptiNose? Sign up for Earnings360's daily newsletter to receive timely earnings updates on OptiNose and other key companies, straight to your email. Email Address About OptiNoseOptiNose (NASDAQ:OPTN), a specialty pharmaceutical company, focuses on the development and commercialization of products for patients treated by ear, nose, throat, and allergy specialists in the United States. The company offers XHANCE, a therapeutic product utilizing its proprietary exhalation delivery system (EDS) that delivers a topically acting corticosteroid for the treatment of chronic rhinosinusitis with nasal polyps, as well as is in Phase IIIb clinical trial for treatment of chronic sinusitis; and Onzetra Xsail, a powder EDS device. It has a license agreement with Currax Pharmaceuticals LLC for the commercialization of Onzetra Xsail. The company was founded in 2000 and is headquartered in Yardley, Pennsylvania.View OptiNose ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Markets Think Robinhood Earnings Could Send the Stock UpIs the Floor in for Lam Research After Bullish Earnings?Market Anticipation Builds: Joby Stock Climbs Ahead of EarningsIs Intuitive Surgical a Buy After Volatile Reaction to Earnings?Seismic Shift at Intel: Massive Layoffs Precede Crucial EarningsRocket Lab Lands New Contract, Builds Momentum Ahead of EarningsAmazon's Earnings Could Fuel a Rapid Breakout Upcoming Earnings Cadence Design Systems (4/28/2025)Welltower (4/28/2025)Waste Management (4/28/2025)AstraZeneca (4/29/2025)Mondelez International (4/29/2025)PayPal (4/29/2025)Starbucks (4/29/2025)DoorDash (4/29/2025)Honeywell International (4/29/2025)Regeneron Pharmaceuticals (4/29/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. Start Your 30-Day Trial MarketBeat All Access Features Best-in-Class Portfolio Monitoring Get personalized stock ideas. Compare portfolio to indices. Check stock news, ratings, SEC filings, and more. Stock Ideas and Recommendations See daily stock ideas from top analysts. Receive short-term trading ideas from MarketBeat. Identify trending stocks on social media. Advanced Stock Screeners and Research Tools Use our seven stock screeners to find suitable stocks. Stay informed with MarketBeat's real-time news. Export data to Excel for personal analysis. Sign in to your free account to enjoy these benefits In-depth profiles and analysis for 20,000 public companies. Real-time analyst ratings, insider transactions, earnings data, and more. Our daily ratings and market update email newsletter. Sign in to your free account to enjoy all that MarketBeat has to offer. Sign In Create Account Your Email Address: Email Address Required Your Password: Password Required Log In or Sign in with Facebook Sign in with Google Forgot your password? Your Email Address: Please enter your email address. Please enter a valid email address Choose a Password: Please enter your password. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. Create My Account (Free) or Sign in with Facebook Sign in with Google By creating a free account, you agree to our terms of service. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
There are 5 speakers on the call. Operator00:00:00Good day Speaker 100:00:00and thank you for standing by. Welcome to OptiNose Third Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. You will then hear an automated message advising your hand is raised. Speaker 100:00:23Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jonathan Neely, Vice President, Investor Relations and Business Development. Please go ahead, sir. Speaker 200:00:35Good morning, and thank you for joining us today as we review OptiNose's Q3 2023 performance and our plans for the remainder of the year. I'm joined today by our CEO, Doctor. Rami Mahmoud and our Chief Commercial Officer, Paul Spence. The slides that will be presented on this call can be viewed on our website, optinose.com, in the Investors Before we start, I would like to remind you that our discussions during this conference call will include forward looking statements. All statements that are not historical facts are hereby identified as forward looking statements. Speaker 200:01:02Forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those indicated by such statements. Additional information regarding these factors and forward looking statements is discussed under the cautionary note on forward looking statements section of the earnings release that we issued today, as well as under the Risk Factors section and elsewhere in OptiNose's most recent Form 10 ks and 10 Qs that are filed with the SEC and available at their website, sec.gov, and on our website at optinose.com. You're cautioned not to place undue reliance on forward looking statements. The forward looking statements during this conference call speak only as of the original date of this call or any earlier date indicated in such statement. We undertake no obligation to update or revise any of these statements. Speaker 200:01:47We will now make prepared remarks and then we will move to a question and answer session. With that, I will now turn the call over to Ronny. Speaker 300:01:53Thank you, Jonathan, and thank you to everyone listening for joining us this morning. We appreciate you joining us for our Q3 update. Starting on Slide 3. We'll go into more detail in a moment, but I'd like to highlight 3 key takeaways from today's presentation. First, I'd like to reiterate the significance of the opportunity in front of us, which we believe has potential to reshape our business in the coming months and for years into the future. Speaker 300:02:18Claims data suggest that CS is currently being diagnosed by healthcare providers at least 10 times more frequently than nasal polyps. 2nd, I'd like to remind you that our supplemental new drug application for the new indication for XHANCE is far along in the FDA review window. We submitted our application in February and are rapidly approaching the FDA target action date in December. And last, Our results demonstrate that we have continued to successfully execute on our 2023 operating strategy. That strategy has been to greatly increase our operating efficiency And to stabilize revenue in the current comparatively niche indication, while preparing our organization to seize the opportunity created by the potential approval of XHANCE as the first prescription treatment for one of the most common diseases diagnosed in adult outpatient medicine. Speaker 300:03:08We believe the new launch opportunity Can enable us to build a profitable ENT and allergy focused business by accessing greatly expanded net revenue potential through an efficient existing base of commercial capabilities. In addition, as I previously noted, we continue to actively explore commercial partnerships in primary care And other approaches to accessing the incremental value beyond what we can create on our own in the largely specialty segment where we're currently deployed. Turning to Slide 4. We believe future approval of XHANCE as the 1st and only FDA approved treatment for CS Has potential to increase the number of patients for whom the product can be promoted by at least tenfold because medical claims data indicate In order of magnitude, more patients are currently being diagnosed with chronic sinusitis than are being diagnosed with nasal polyps. We believe that nasal polyps is also under diagnosed relative to the published prevalence, in part because it can be difficult to visualize the part of the nasal labyrinth for policy merge in offices that do not have the ability to perform nasal endoscopy. Speaker 300:04:14This further accentuates the potential associated with a new indication that is more amenable to office diagnosis by a broad range of physicians. The new indication would create opportunity for strong growth within our existing commercial footprint, promoting largely to specialists who see large numbers of patients with the diagnosis. And the newly expanded universe of patients would also include Patients cared for by physicians outside of our current commercial reach and we are actively exploring commercial partnerships, alternative selling models and other ways to facilitate future outreach to those physicians and patients. Turning to Slide 6. Previously, we announced that the FDA accepted our supplemental new drug application in pursuit of an XHANCE indication for the treatment of patients with chronic rhinosinusitis. Speaker 300:05:03This is a novel indication for which the agency has never previously approved any drug product. Our regulatory and clinical teams have focused I'm being responsive to the FDA during the review, and they will continue to do so through the remaining weeks of the review process. The FDA action goal date is December 16th this year. Turning to Slide 8. As a reminder, our objective in 2023 has been to stabilize demand trends in our current nasal polyps specialty business With a reduced commercial footprint and materially reduced expense, while both preserving necessary launch capabilities and improving operational efficiency and effectiveness of our commercial resources. Speaker 300:05:47This is intended to best set us up for successful launch of XHANCE into the new chronic sinusitis space in 2024. With that objective in mind, we are very pleased by XHANCE prescription demand results In the Q3 of 2023. As we discussed in our last call, overall prescription demand in the first half of the year for XHANCE We're stronger than we initially anticipated. This has created the opportunity for us to take thoughtful action to attempt to reduce both the number and proportion of unprofitable prescriptions. We are seeing early evidence in our prescription data that our actions have begun to produce the intended outcome, which is also resulting in an improvement in the average net revenue per prescription. Speaker 300:06:31Regarding prescription demand, In the Q3 of 2023, there were approximately 27,400 new prescriptions for XHANCE, A decrease of 4% compared to the Q3 of 2022. In addition, there were approximately 84,100 Total prescriptions for XHANCE in the Q3 of 2023, a decrease of 6% compared to the Q3 of 2022. We measure breadth and depth of physician prescribing by estimation of the total number of physicians who have patients filling various numbers of XHANCE prescriptions. Regarding breadth, in the Q3 of 'twenty three, there were approximately 8,400 physicians who had a patient fill at least one prescription of XHANCE, An increase of 5% compared to the Q3 of 2022. Regarding depth, the number of physicians who had more than 13 XHANCE prescriptions filled by their patients in the quarter decreased from 1485 in the Q3 of 2022 to 1346 in the Q3 of 2023. Speaker 300:07:39I'd like to note that all the data on this Slide is estimated based in part on monthly prescription and inventory data from third parties and on data directly reported to us by pharmacies that are part of the XHANCE I will also note that the Q3 2022 data we're showing today reflects our current 2023 methodology. For reference, we footnoted our prior estimates based on prior methodology. I'll now turn the call back over to Jonathan to discuss Q3 financial performance. Speaker 200:08:08Thank you, Rami. Turning to Slide 10. We are encouraged by our Q3 2023 financial results. They are shaped by our strategy to prioritize capital resources for The potential launch of XHANCE is the first ever FDA approved drug treatment for chronic sinusitis. As we reported earlier, Optinotis recognized $19,300,000 of SG and A plus R and D expenses in the Q3 of 2023. Speaker 200:08:32This is approximately a $9,000,000 or 33 percent decrease compared to Q3 2022 expenses of $28,800,000 Regarding revenue, OptiNose recognized $19,800,000 of Xtance net revenue in the Q3 of 2023, 1% decrease compared to Q3 2022 net revenues of $20,100,000 As Rami referred to earlier, the strength in demand And the first half has afforded us the opportunity to make gradual changes that we intend to have a positive influence on profitability now and in the future. As an example, in 3rd Q4, we revised our co pay assistance program in a way that we expect will result in exchanging some of the first half twenty twenty three demand strength Within the uncovered commercial patient segment for increased profitability. Based on available prescription and inventory data purchased from third parties And on data that we receive directly from our preferred pharmacy network, the estimated XHANCE average net revenue per prescription for the Q3 of 2023 was $2.36 A 6% increase compared to $2.23 of estimated revenue per prescription in the Q3 of 2022. Overall, our results for the 1st 9 months of the year continue to align with our intent to reduce use of cash in 2023. We reduced operating expenses by $32,000,000 or 33 percent in the 1st 9 months of 2023 when compared to the 1st 9 months of 2022. Speaker 200:09:56We have also outperformed our initial expectations for revenue, and we achieved this while sustaining product demand and maintaining the capabilities and resources We believe will be necessary to enable a successful launch of the potential new indication for XHANCE in 2024. As a final note on results, We reported a cash position of $66,800,000 as of September 30, 2023, a use of $27,400,000 on a year to date basis. Turning to Slide 12. As I just mentioned, XHANCE net revenues remained stable and strong in the 3rd quarter. As a result of that performance, we've increased our revenue expectations for full year 2023 by raising the low end of the range. Speaker 200:10:38We now expect XHANCE net revenue for the full year of 2023 to be between $66,000,000 $70,000,000 Previously, we expected XHANCE net revenue to be between $64,000,000 $70,000,000 With respect to XHANCE average Net revenue per prescription, we continue to expect our average net revenue per prescription to be approximately $200 for the full year of 2023. Finally, we continue to expect operating expenses defined as sales, general and administrative plus research and development expenses for full year 2023 To be in the range from $88,000,000 to $93,000,000 of which approximately $6,000,000 is stock based compensation. I will now turn the call back over to Rami for closing remarks. Rami? Speaker 300:11:22Thank you, Jonathan. Before moving to take any questions, I'd like to reiterate Significance of the opportunity in front of us, which we believe has potential to really reshape our business in the coming couple of months and for years into the future. We've continued to successfully execute on our 2023 operating strategy, which has been to greatly increase operating efficiency and stabilize revenue, We believe the new launch opportunity could enable us to build a profitable ENT and allergy focused business by accessing greatly expanded net revenue potential through an efficient existing base of commercial capabilities. In addition, as I said before, we continue to We will actively explore commercial partnerships in primary care and other approaches to accessing the incremental value beyond what we can create on our own in the Specialty segment where we're currently deployed. With that, I'd like to thank you for your attention and open up the call for Q and A. Speaker 100:12:26Thank you. One moment while we compile the Q and A roster. One moment for our first question please. Our first Question will come from the line of Thomas Flaten with Lake Street. Your line is now open. Speaker 400:12:50Thank you. Good morning, guys. Appreciate you taking the questions. Rami, you mentioned the FDA review was far along. I'm curious if you could confirm if you've started label negotiations? Speaker 300:13:00Thanks for the question, Tom. We are 37 days away from our target action date, which is a little before the time when we would expect label negotiations So no, they haven't started yet, but neither have we expected them to start quite yet. They may start soon within this month. Speaker 400:13:20Great. And Jonathan, you mentioned that there was some co pay restructuring that you were doing that might make Q4 more profitable. I'm assuming you meant on a Revenue per prescription basis, you guys are averaging ahead of the $200 for the year, which would imply that you'd have a downshift to get to $200 I know you say approximately, but Could you give us some more color on what you expect that sequential move in revenue per prescription to be based on the changes to co pay, etcetera, that you mentioned? Speaker 200:13:47Yes. First off, I guess, on a year to date basis, there's some additional material in the presentation today in the appendix. But just to confirm, we're actually at $197 on a year to date basis. So we are Still slightly below that $200 mark. But as you point out, in Q3, we had a $2.36 revenue per And so we think that we're in a really good shape in terms of going into the Q4 where typically the last 3 quarters of the year, you have better revenue per prescription than you do in the Q1 of the year. Speaker 200:14:26And we should Close out the year in our expectations somewhere around that $200 mark. Speaker 400:14:36And then final one from me. Just a final one. Rami, in your prepared comments right at the conclusion there, you said you're continuing to explore Primary care partnerships and I don't know how you phrased it, but you said something like other approaches. I was curious if you might flush out for us what other approaches might be aside from a primary care partnership? Speaker 300:15:00Well, and I'll invite Paul to comment if he likes as well. But, there are a variety of, emerging Promotional approaches that do not involve pure reliance on direct selling, for example, leverage of direct to consumer outreach and telemedicine. And we are exploring a variety of different kinds of approaches that might be applicable to our product and our audience For commercializing the product, other than just the traditional direct sales model. Speaker 400:15:32Great. Appreciate you guys taking the questions. Thank you. Speaker 100:15:35Thank you. One moment for our next question please. Our next question will come from the line of David Amsellem with Piper Sandler. Your line is now open. Operator00:15:49Hi, thanks. This is Skyler on for David. First, I just have a hypothetical. If somehow the label extension did not occur for some reason, how do you think about strategic And how would that impact the overall company and long term plans for XHANCE? And then I have a follow-up after. Speaker 300:16:05Hi, Skyler, and thanks for the question. So the strategic future as a company will be significantly different if the Product is not approved on December 16th. The specifics of what the company's strategic options would be and the kind of options that would be most appropriate for us Well, in part, be governed by the nature of the FDA response and the kinds of actions that might be required, to continue to pursue the indication. So it's a little premature for us to speak specifically about what strategic options we'd be pursuing. I can only say that We would remain open to a variety of strategies, driven by whatever the circumstances are that emerge when we get the actual response letter. Operator00:16:50Got it. That makes sense. And then next on the payer landscape, with the expanded label, what would you think What would be the net pricing per prescription would look like? Any additional details you could give there would be helpful. Thank you. Speaker 300:17:05So it's hard to speak with confidence about the future when a variety of So I can't be certain. But our belief, as I think we've said before, is that we don't think there will be any material change to the Pricing of the product based purely on the approval. In other words, the price of the product and the net price of the product, The day after approval will be the same as it was the day before approval. Operator00:17:37Okay, got it. Thank you. Speaker 100:17:40Thank you. I'm showing no more questions at this time. I'd like to hand the conference back over to Doctor. Mahmoud for closing remarks. Speaker 300:17:49So in conclusion, I think we're all very happy with how this year has gone so far. As you've seen illustrated through Q3, The company has really delivered on stabilizing revenue at dramatically lower cost. We think the company is now very well positioned To be a stable foundation to efficiently launch into a new indication in next year and in the next month or 2 here, we're really looking forward to that opportunity. Thank you all again for joining this morning and we look forward to talking to you again soon. Speaker 100:18:20This concludes today's conference call. Thank you for your participation. You may now disconnect. Everyone, have a wonderful day.Read morePowered by