Release Date: May 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Net product sales for the first quarter came in slightly ahead of plan at $26 million, indicating strong financial performance.
- Assertio Holdings Inc (ASRT, Financial) has strengthened its payer coverage, starting with Cigna, and expects further expansion in the second half of the year.
- The revised Simpazan promotional strategy is proving effective, with a 6.5% year-over-year increase in total prescriptions.
- The company has successfully settled multiple legal matters, reducing legal exposure and optimizing operating expenses.
- Assertio Holdings Inc (ASRT) is on track with its transformation phase, focusing on reducing legal exposure, simplifying corporate structure, and prioritizing investment in growth assets.
Negative Points
- Q1 2025 product sales decreased to $26 million from $31.9 million in the prior year quarter.
- Rovedon sales decreased from $14.5 million to $13.1 million due to lower pricing, despite higher volume.
- Indocin net product sales fell from $8.7 million to $5.5 million due to generic competition.
- GAAP net income for the first quarter was a loss of $13.5 million, compared to a loss of $4.5 million in the prior year.
- Adjusted EBITDA for the first quarter was only $0.2 million, down from $7.4 million in the prior year quarter, reflecting lower net sales and gross margin.
Q & A Highlights
Q: Brendan, congrats on offloading the opioid litigation matters. Was there any value movement in that transaction?
A: Brendan O'Grady, CEO: Yes, there was nominal value; they paid us a small amount.
Q: AJ, your accrued liabilities are up. How should we think about using cash to bring those balances down?
A: Ajay Patel, CFO: Expect it to occur relatively evenly over the year, primarily due to Rovedon's ASP-based pricing, with payments typically occurring in the subsequent quarter.
Q: Any updates on the same day dosing progress with the NCCN?
A: Brendan O'Grady, CEO: We have presented the results twice and are aiming for a peer-reviewed publication by midsummer. We plan to approach NCCN for 2026 guidelines inclusion.
Q: Could you provide details on expanding Rovedon into the hospital setting?
A: Brendan O'Grady, CEO: We need to grow our commercial payer side to unlock the hospital space. We've started with Cigna and aim to expand further in the second half of this year and into 2026.
Q: Why not adjust the adjusted EBITDA guidance band down from $10 million to $19 million?
A: Brendan O'Grady, CEO: There are still many variables, and we are tracking within the guidance ranges. We'll reassess after the second quarter.
Q: What promotional strategies are planned to accelerate Rovedon sales growth?
A: Brendan O'Grady, CEO: We aim to gain more market share in Medicare Part B clinics and expand commercial payer coverage, which will help penetrate hospitals.
Q: How do you expect the genericization of Indocin to evolve in 2025?
A: Brendan O'Grady, CEO: We anticipate two more generics this year, which will impact volume and price. We are tracking to plan and optimizing Indocin as much as possible.
Q: Can you provide context on strategic plans to broaden the commercial portfolio?
A: Brendan O'Grady, CEO: We have ongoing positive conversations and are optimistic about completing a strategic transaction in 2025 to position us for growth in 2026.
Q: What is the impact of pricing pressure on Rovedon?
A: Brendan O'Grady, CEO: ASP erodes over time due to competition, but we are managing it well. We expect growth in Q2 and beyond as we gain new customers.
Q: What assets were divested to ATIH, and what is the risk of legal liabilities returning to the parent company?
A: Brendan O'Grady, CEO: We divested a single-digit royalty on Indocin and some cash. The risk of liabilities returning is low as the legal entity is now managed by a third party.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
