Aytu BioPharma, Inc. (NASDAQ:AYTU) Q1 2023 Earnings Call Transcript

Jennifer Kim: Okay, great. And my last question, this might be more for Mark. Mark, you said that there might be some costs related to the winddown efforts and Healight in R&D. But I think you said that like around 900k of the 1.1 million this quarter is from those suspended pipeline program. So I’m just wondering, is that remaining point two you know related to the post marketing studies required for ADHD products and is that a reasonable run rate as we think about future quarters?

Mark Oki: Yes, as we move forward, it should stay in that range. They’re not related to the PMRs, they’re related to the ongoing support of the products. We have not kicked off the PMRs at this point in time.

Jennifer Kim: Okay. Do you know when you would anticipate kicking those off?

Mark Oki: We’re still evaluating that. We’re still working with the FDA on getting final protocol approval. So I don’t have a good time for you.

Jennifer Kim: Okay.

Josh Disbrow: We don’t see anything modeled in the near term for that Jennifer. And if we do kick off, if and when we do kick off the PMRs, we’ll do them in house really kind of do it on a shoestring budget and obviously seek to stretch those out as far as we can. Obviously, Neos never kicked those off and we’ll continue to work with the FDA in ways to reduce the size and reduce any potential financial burden as it relates to those PMRs, but nothing modeled in the near term.

Jennifer Kim: Okay, that’s helpful. Thanks for taking my questions guys and congrats again on a great quarter.

Josh Disbrow: Thank you, Jennifer.

Mark Oki: Thanks Jennifer.

Operator: Thank you.

Roger Weiss: Hi, Josh, while we’re waiting for any further questions, I’ll ask one real quick. When you think about RxConnect and the ability to leverage that program, Can you more fully describe how you think about truly gaining that leverage and whether that comes with the need for additional headcount, for example, if you bring on additional assets?

Josh Disbrow: Yes. Thanks, Roger. And the short answer is no. We would not anticipate the advent of any additional commercial assets to necessitate any material headcount. Really very simply because we have a group of pharmacies around the country that are largely working on our behalf. And when you have categories, even in categories like ADHD where you’ve got controlled Schedule II products, they have the ability to influence prescriptions and influence the prescribers. In many cases, if they have a product that they view as more favorable for the patient something that potentially isn’t an easy to use format or formulations such as the ODTs, they may place a phone call to the physician office and the clinician and get them to switch that prescription actively and there’s economics there to support the patient and in many cases to help the pharmacy as well.

And so we can gain that additional leverage really by them continue to work on our behalf. We have a small team of what we call regional account managers that interface directly and are responsible for cultivating the relationships with the pharmacies and they do an outstanding job of making sure that we understand the economics at the prescription level each individual prescription, how it’s adjudicated and how it’s ultimately paid for, making sure that the patient is getting the lowest cost alternative that the copays are in line with what we expect. And so we can continue to work through multiple different products as we identify additional pediatric centric and ADHD product line. So we’ve got the ability to scale revenues of our current products.