15-05-2025
ARS Pharmaceuticals Inc (SPRY) Q1 2025 Earnings Call Highlights: Strong Launch of Neffy Amid ...
Total Revenue: $8 million for Q1 2025.
US Net Product Revenue for neffy: $7.8 million.
Collaboration Revenue: $0.2 million from ALK agreement.
Cost of Goods Sold: $1.1 million for Q1 2025.
R&D Expenses: $3 million for Q1 2025.
SG&A Expenses: $41.1 million for Q1 2025.
Planned DTC Campaign Investment: $40 million to $50 million for the remainder of 2025.
Projected 2025 Operating Expenses: $210 million to $220 million, excluding stock-based compensation and COGS.
Net Loss: $33.9 million, or $0.35 per share, for Q1 2025.
Cash, Cash Equivalents, and Short-term Investments: $275.7 million as of March 31, 2025.
Warning! GuruFocus has detected 4 Warning Signs with SPRY.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
ARS Pharmaceuticals Inc (NASDAQ:SPRY) successfully launched neffy, the first needle-free epinephrine treatment, with $7.8 million in US net product revenue in Q1 2025.
The company expanded commercial insurance coverage for neffy from 27% to 57%, with ongoing payer discussions to further increase coverage.
Neffy 1-milligram dose was approved by the FDA for children, representing a significant portion of the pediatric market.
A strategic collaboration with ALK-Abello expanded ARS Pharmaceuticals Inc (NASDAQ:SPRY)'s promotional network to over 20,000 healthcare providers, including 9,000 pediatricians.
The company is launching a comprehensive direct-to-consumer campaign to increase patient awareness and drive prescription growth for neffy.
ARS Pharmaceuticals Inc (NASDAQ:SPRY) reported a net loss of $33.9 million for Q1 2025, indicating financial challenges despite revenue growth.
The cost of goods sold is expected to increase as the company uses up its zero-cost inventory.
Prior authorization requirements remain a barrier for some patients, with only 57% of commercial lives having access to neffy without prior authorization.
The company anticipates significant operating expenses of $210 million to $220 million for 2025, driven by marketing and commercialization efforts.
Market share for neffy is currently low at 1.3% overall, though higher among targeted high-prescribing physicians.
Q: How much of the first-quarter sales figure is attributed to inventory, and what are your expectations for inventory contribution over the next two quarters? A: Richard Lowenthal, President and CEO, stated that the first-quarter numbers were minimally influenced by inventory. The sales were primarily from 2-milligram doses, and inventory levels are steady. They do not expect inventory to significantly impact sales in the upcoming quarters.
Q: What is the current gross-to-net discount, and how has it changed from the fourth quarter to the first quarter? A: Kathleen Scott, CFO, explained that the gross-to-net discount was higher in Q4 than in Q1. With increasing insurance coverage, the gross-to-net is expected to decrease to around 50% as the year progresses.
Q: What do you expect the cost of goods sold (COGS) to be once the current inventory is used up? A: Kathleen Scott noted that some inventory was expensed prior to FDA approval, which currently benefits COGS. As this inventory is used, COGS will increase slightly, but the zero-cost inventory primarily involves raw materials, with manufacturing costs still being incurred.
Q: Can you discuss the impact of the neffy Experience Program on physician adoption and any feedback received? A: Richard Lowenthal highlighted that the neffy Experience Program has been successful, with over 2,500 physicians enrolled. Feedback has been positive, with results similar to injections, where about 90% of patients respond to a single dose. Plans are in place to expand the program and potentially publish the results.
Q: How are you tracking against your goal of 80% commercial insurance coverage by the third quarter? A: Richard Lowenthal mentioned ongoing negotiations with major insurers like Caremark and Aetna. Currently, 57% of patients have coverage without prior authorization, and efforts are underway to increase this percentage to meet the 80% goal.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
