Agile Therapeutics, Inc. (NASDAQ:AGRX) Q4 2022 Earnings Call Transcript

Al Altomari: Yes, so I’m going to give you kind of a 30,000 view, and then Amy will €“ can take you through. It’s really interesting, Oren. I think you, more than anybody, would appreciate that Governor Gavin Newsom, as you probably saw with one of the big chain accounts, kicked them off the medical formulary to defend women in the state. So in his press statement, he said that the California economy, on a GDP basis, would be the fourth largest economy in the world, which just €“ I know that’s astounding. And so it talks about the five-state strategy we’re on. When we look at our five states, they represent €“ we talk about 45% of the market. That’s 41% of the GDP in this country. So I’ll turn it over to Amy on the visibility. So California is a good state for us, Oren. So I’ll let Amy tell you our visibility.

Amy Welsh: Yes. I think your question was where are we with the process. And I think the last couple of times, we’ve explained that the Afaxys sales process took a little bit longer. Yes, we, from a clinical perspective, so that it’s clear to the next handful of large accounts that provides meaningful option for their patients, so we’re past the clinical phase with all of those larger accounts. And what we’re doing is we’re trying to work with them from a financial perspective of when it makes sense to partner with Twirla and bring them on. So it’s sort of the last phase from most of those larger accounts, which is why my guesstimate we will see that happening sort of like quarterly €“ quarter-over-quarter throughout the year.

Al Altomari: So we won the battle clinically, Oren. So now it tends to be when is the right system, when they buy and the purchasing people who work with us. So we have optics to all of this. So we have the wins, so we expect to see volume now.

Oren Livnat: So there are additional large accounts. This is also in California theoretically?

Amy Welsh: Yes, believe it or not, yes, most of these large accounts are right there on the West Coast, specific to the State of California.

Al Altomari: What makes California peculiar, Oren, is just a little bit of a €“ a lot of times, a Planned Parenthood can be a single clinic like we’ve talked before or in a buying group. In California, some of the affiliates tend to be in one buying group. So they €“ so one purchasing person or one P&T represents a number of individual affiliates. So in a lot of ways, Amy has one-stop shopping. So I think they just aggregate their volume, and look, they use that as a negotiating tool. So California seems to be, I don’t know, Amy, the most organized, for lack of better words. I mean I think…

Amy Welsh: Yes, that’s a really good way of putting it. Yes.

Al Altomari: And when we win, we win big, Oren.

Oren Livnat: Right. And so obviously, as we see volume accelerate, it’s been pretty remarkable how it can ramp in that non-retail channel already in the last quarter or two. As we see that to continue to grow, before we get carried away with how that might translate to revenue, on our end before you report, I guess an important factor is that economic side. I mean I know it’s less profitable, of course, than retail. But do you feel pretty confident that, I guess, the gross to net €“ or the net pricing per cycle going forward will be consistent with what you’ve managed to achieve so far in the Planned Parenthood or other non-retail?