Release Date: August 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Revenue growth driven by distributor sales, which more than doubled over the past year.
- Maintained highly favorable gross margins of 89.5%.
- Distribution of Spryng surpassed more than 800 veterinary clinics across 50 states.
- Operating expenses decreased by 28% due to strategic cost reduction and corporate restructuring.
- Net loss improved to $2 million from $2.9 million in the same year-ago quarter.
Negative Points
- Sales to veterinary clinics declined 33% compared to the year-ago period.
- Cash and cash equivalents totaled only $12,000 at the end of the quarter.
- Net cash used in operating activities decreased but still significant at $633,000.
- The company is still facing a net loss, albeit improved.
- Dependency on continued market adoption and successful clinical studies for future growth.
Q & A Highlights
Q: Have you had any further consideration for human studies with Spryng?
A: Yes, we are focusing on launching Spryng and getting it adopted in the small animal market first. However, we do see potential for similar results in humans, and this is something we will consider moving forward. - John Lai, CEO
Q: Who are the major competitors to Spryng?
A: Our main competitors are products like Zoetis' Librela and Solensia, which block the nerve growth factor to manage pain. However, Spryng focuses on providing proper joint function and protection, making it a complementary product in a multimodal approach to joint health. - John Lai, CEO
Q: Are there any contraindications of using Spryng with other pain-blocking medications?
A: Our studies show that Spryng is inert and does not create significant reactions, making it safe to use alongside other medications. Vets often use different combinations of treatments, and we do not restrict their choices. - John Lai, CEO
Q: How quickly do animals react to the first injection of Spryng?
A: Spryng aims to create proper joint function, minimizing frictional points that cause pain. It is a single injection that should last a year, unlike other products that require monthly or bi-monthly injections. - John Lai, CEO
Q: What is the median price of Spryng treatment per visit?
A: The cost varies by region. In smaller towns, it may be around $500-$600, while in major cities, it could be $1,200 or more. We typically estimate the cost to be around $600-$800. - John Lai, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
