Agile Therapeutics, Inc. (NASDAQ:AGRX) Q2 2023 Earnings Call Transcript

Al Altomari: Yes, so I’ll do profitability. Then I’ll just give you kind of an overview and Amy can talk you through FPA specifically. But profitability, if we look at kind of our profitability yield, commercial cycles are still clearly our best. Next in the pecking order would be SG&A. Then we would put our Medicaid business, and then the Afaxys’ business that’s a GPO business. Kind of that’s our cascade. So SG&A is closer to commercial, which is a really great thing for us. Oren, I mentioned this to our team. I said, when you look at California, California is bigger than the country of Germany from a GDP perspective. So we landed not only the biggest private account in California, they claim to be — FPA claims to be the biggest in the country. So, Amy, why don’t you take it from there?

Amy Welsh: I think I’ll take the part on, how much potential is there with that one and other amounts reported to the account. FPA is a phenomenal account led by a great group of OBGYN. We just started the partnership. So we’re in no way at a steady state. We’re just beginning to normalize now. So there’s lots of growth with that single account. But strategically, other non-340B accounts, other sort of hybrid like accounts that sit in between the commercials for the cost structure and a Planned Parenthood, 340B if you will cost structure, that’s part of our new back half of the year strategy. So some more to come on that. But we were very lucky to start with an account like FPA. It’s meaningful nationwide and meaningful financially for us.

Al Altomari: Maybe explain how MMCAP fits into that strategy or just the importance of MMCAP?

Amy Welsh: Yes, MMCAP serves as a GPO for Afaxys and enables their sales folks to sell deeper into colleges and universities and some government health services that Afaxys may or may not have accounts with. So MMCAP, we signed on and it’s basically again a volume opener, like I was saying earlier in the call. We’re looking for partnerships that can help us have access for Twirla. So MMCAP serves for us in those two channels again, that is colleges and universities nationwide, as well as government health and human services statewide.

Oren Livnat: Okay. I guess since we’re talking about profitability and mix, can you talk about sort of overall value for cycle trends I guess from last quarter or this quarter, and then going forward? Obviously, both channels or all channels are growing. So it’s hard for us to really guess what direction this is going. But can you give us big picture how we should think about that?

Al Altomari: Yes, I’ll take a shot and I’ll let Amy comment. But when you look at the second quarter versus the first quarter, our mix of retail was stronger in the second quarter. So that’s a good thing. So if you do like — you like calculating the yield per script or yield per cycle. So what did we yield per cycle one-off in the second quarter? And that was primarily due to more I call it a favorable mix, so a quarter that’s more balanced on retail and non-retail. And then, just to put a footnote on FPA, one of the things we’re realizing is that when we say non-retail, that’s got some shades of grey in there too now because there’s a lot of differences in pricing on there. So one of the things we’re concerned with [indiscernible], Scott, when he came here, he called it a hybrid, and that’s what we think of as FPA, because it’s kind of somewhere in the middle.