Release Date: August 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: With the decision to expand NARCAN distribution capabilities with the new center in Nevada, can you talk about the long-term growth opportunity for NARCAN in both OTC as well as the PIP market? What do you see as the current and future growth driver there? A: Joseph Papa, President and CEO, highlighted the importance of addressing the public health problem of opioid overdoses. He noted that NARCAN has shown progress in reducing deaths and emphasized the role of funding from opioid settlements in expanding access. Paul Williams, SVP - Products Business, added that bipartisan support and increased awareness are crucial for growth, and the new Nevada distribution center will enhance customer responsiveness.
Q: A competitor announced a distribution agreement with the State of California to supply OTC NARCAN. How are you contemplating that with your current outlook for your OTC product? A: Joseph Papa stated that Emergent continues to work closely with California and other states, emphasizing the importance of the NARCAN brand, manufacturing capacity, and distribution capabilities. The new Nevada distribution center will facilitate easier delivery to California, and the NARCAN Direct program is embedded into public service processes.
Q: Could you provide some additional detail on steps to improve long-term margins and the achievable margin profile for the current business? A: Joseph Papa explained that efforts are focused on reducing the cost of goods sold for NARCAN through contract manufacturing and efficiency improvements. For the overall business, reducing the manufacturing site network and optimizing R&D and SG&A expenses are key strategies. Richard Lindahl, CFO, added that these actions will help improve cost of goods sold and overall financial performance.
Q: Could you provide some color on when we should expect an option for TEMBEXA and Ebanga? A: Joseph Papa mentioned that Ebanga is still a few years out due to the nature of the contract. For TEMBEXA, discussions with the U.S. Government are ongoing regarding the timing and magnitude of the next option exercise, with efforts focused on maintaining supply continuity.
Q: What are the key financial highlights from the second quarter? A: Richard Lindahl reported solid second-quarter results with $255 million in total revenues, driven by NARCAN sales and government contracts. The company raised the midpoint of its 2024 revenue and adjusted EBITDA guidance, reflecting improved visibility of MCM revenues and a focus on operating expenses.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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