Agile Therapeutics, Inc. (Nasdaq: AGRX), a women’s healthcare
company, today reported financial results for the three months
ended June 30, 2023 and provided a corporate update.
“We set single-quarter record highs in demand, net revenue and
factory sales, all while reporting another quarterly decrease in
operating expenses,” said Agile Therapeutics’ Chairperson and Chief
Executive Officer Al Altomari. “We are beyond pleased with the
second quarter 2023 results, but the job is not done, and our focus
is on accelerating future growth and achieving 2023 net revenue of
$25-$30 million.”
“Strong, focused external relationships are an integral part of
our business plan, and we expect to continue to explore
collaborations that can positively impact our business, allow us to
expand without incurring significant costs and promote a growing,
sustainable, fiscally-responsible business,” added Chief Commercial
Officer Amy Welsh. “The structure and strategy of our business plan
is the foundation for our confidence in continued Twirla growth in
the second half of 2023.”
Second Quarter
Performance Updates
- Twirla delivered $5.5
million in net revenue for the second quarter 2023. This
was an increase of 159% from the $2.1 million reported for the
second quarter 2022 and an increase of 44% from the $3.8 million
reported for the first quarter 2023. Net revenue results for the
second quarter of 2023 reflect factory sales growth across all
channels and an improved mix of sales which led to lower
gross-to-net deductions.
- Continued Twirla Demand Growth
- Twirla demand for the second quarter 2023 was 55,687
total cycles, a 24% increase from the first quarter 2023 and a 158%
increase from the second quarter 2022.
- Retail demand, which is the Company’s most profitable channel,
was 35,682 total cycles in the second quarter 2023, a 17% increase
from the first quarter 2023. The retail channel is the Company’s
most profitable channel and retail demand accounted for 64% of
total second quarter 2023 demand.
- Non-retail demand for the second
quarter 2023 was 20,005 total cycles and an increase of 38% from
the first quarter 2023.
- Twirla Factory Sales
- Twirla factory sales for the second quarter 2023 were
61,770 total cycles, an increase of 42% compared to the first
quarter 2023 and a 188% increase from the second quarter
2022.
- The Company believes wholesaler inventory levels have now
stabilized in the second quarter 2023.
- Company Operating Expenses
- Second quarter GAAP operating expenses were $8.3
million for 2023, a decrease of 2% from the $8.5 million reported
for the first quarter 2023 and a 27% decrease from
the second quarter 2022.
- The Company plans to continue to actively manage its operating
expenses and expects operating expenses for the full year 2023 to
be lower than full year 2022.
- Gross Margin
- In the second quarter 2023, The Company generated gross
profit of approximately $3.2 million, or gross margin of
58%, compared to $1.8 million, or gross margin of 47%, in
the first quarter 2023.
Plan for Second Half 2023 Growth
- The Company remains focused on
achieving its key goals of growing Twirla, attaining 2023 net
revenue in the range of $25-$30 million and, ultimately, generating
positive cash flow. The Company remains confident it can accomplish
these key goals by:
- Targeting Promotional Efforts on Five Key States
- The Company continues to focus its Twirla promotional efforts
on five states that have high levels of reimbursement potential for
Twirla and are estimated to reach over 45% of U.S. women between
the ages of 18 and 24.
- Increasing Footprint in Telemedicine
- In the second quarter 2023, the Company continued to focus on
expanding access to Twirla in the retail channel through its
collaborations with female telehealth providers including Nurx,
Twentyeight Health and Pandia.
- Expanding Access to Twirla
- In June 2023, the Company announced that Twirla would become
available through relationships with FPA Women’s Health and MMCAP,
which are planned to augment Afaxys’ efforts and contribute to
further second half 2023 non-retail growth.
- The Company believes there is additional potential for Twirla
volume growth in this channel based on the reach of the Afaxys
customer network, which includes Planned Parenthood and student
health centers.
- The Company also believes it will continue to experience
increased growth in the retail channel from physicians who gain
more clinical experience with Twirla in the Planned Parenthood
setting and become more comfortable prescribing Twirla in their
other practices.
Second Quarter 2023 Financial
Results
- Net Revenue: In the second
quarter 2023, the Company realized net product sales revenue of
$5.5 million, an increase of 44% as compared to the first quarter
2023 revenue of $3.8 million. Second quarter 2023 net revenue of
$5.5 million represents a 159% increase from the $2.1 million
reported for the comparable period in 2022.
- Cost of Goods Sold
(COGS): Cost of goods sold, which consists of direct and
indirect costs related to the manufacturing of Twirla sold, was
$2.3 million for the second quarter 2023, compared to the $2.0
million reported for the first quarter 2023 and $2.2 million for
the comparable period in 2022.
- Total operating
expenses: Total operating expenses were $8.3 million for
the second quarter 2023, compared to $8.5 million for the first
quarter 2023 and $11.3 million for the comparable period in
2022.
- Cash: As of June 30, 2023, the Company had
$2.8 million of cash, compared to $4.4 million of cash and cash
equivalents as of the end of the first quarter 2023. On May 25,
2023, the Company completed a public offering which raised net
proceeds of $6.5 million through the sale of 1,896,286 shares of
common stock (or pre-funded warrants in lieu thereof). In addition
to the Company’s existing at-the-market (ATM) arrangement, the
Company will continue to evaluate all available options to finance
the Company and continue to explore all opportunities that can
potentially accelerate the timeline to generating positive cash
flow.
- GAAP Net Loss: GAAP net loss was $3.8 million,
or $2.15 per share, for the second quarter 2023, compared to a GAAP
net loss of $5.4 million, or $5.91 per share, for the first quarter
2023 and a GAAP net loss of $5.2 million, or $57.29 per share, for
the comparable period in 2022, respectively. The fair market value
remeasurement of warrants resulted in $1.7 million, $1.7 million
and $7.1 million in other income for the second quarter 2023, first
quarter 2023, and second quarter 2022, respectively. The Company
expects to continue to see fluctuations in GAAP net income or loss
depending on the non-cash accounting adjustments of these
warrants.
- Non-GAAP Net Loss: Non-GAAP net loss was $5.5
million, or $3.10 per share, for the second quarter 2023, compared
to a non-GAAP net loss of $7.1 million or $7.76 per share for the
first quarter 2023, and a non-GAAP net loss of $12.2 million, or
$135.46 per share, for the comparable period in 2022. These results
reflect the exclusion of the fair market value remeasurement of
warrants noted above. A reconciliation of GAAP to non-GAAP net loss
is provided in the tables accompanying this press release.
- Shares Outstanding: As of June 30, 2023, Agile
had 1,640,805 shares outstanding. For the three months ended June
30, 2023, there were 1,769,803 weighted average shares of common
stock outstanding, as adjusted for the 1-for-50 reverse stock split
implemented by Agile on April 10, 2023.
|
Conference
Call and Webcast |
Date |
Wednesday, August 9, 2023 |
Time |
8:30 a.m. ET |
Webcast (live and
archived) |
Events &
Presentations |
Registration Link |
Register Here |
|
|
A live webcast of the conference call may be accessed via the
Investor Relations portion of the Agile Therapeutics website
at https://ir.agiletherapeutics.com/events-and-presentations.
To participate in the live conference call via
telephone, please register here.
Upon registering, a dial-in number and unique PIN will be provided
to join the conference call.
About Agile
Therapeutics, Inc.Agile
Therapeutics is a women's healthcare company dedicated to
fulfilling the unmet health needs of today’s women. Our product and
product candidates are designed to provide women with contraceptive
options that offer freedom from taking a daily pill, without
committing to a longer-acting method. Our initial product, Twirla®,
(levonorgestrel and ethinyl estradiol), a transdermal system, is a
non-daily prescription contraceptive. Twirla is based on our
proprietary transdermal patch technology, called Skinfusion®, which
is designed to allow drug delivery through the skin. For more
information, please visit the company website at
www.agiletherapeutics.com. The Company may
occasionally disseminate material, nonpublic information on the
Company’s website, Twitter account (@agilether), and LinkedIn
account.
About Twirla®Twirla
(levonorgestrel and ethinyl estradiol) transdermal system is a
once-weekly combined hormonal contraceptive (CHC) patch that
contains the active ingredients levonorgestrel (LNG), a type of
progestin, and ethinyl estradiol (EE), a type of estrogen. Twirla
is indicated for use as a method of contraception by women of
reproductive potential with a body mass index (BMI) < 30 kg/m2
for whom a combined hormonal contraceptive is appropriate.
Healthcare providers (HCPs) are encouraged to consider Twirla’s
reduced efficacy in women with a BMI ≥ 25 to <30 kg/m2 before
prescribing. Twirla is contraindicated in women with a BMI ≥ 30
kg/m2. Twirla is also contraindicated in women over 35 years old
who smoke. Cigarette smoking increases the risk of serious
cardiovascular events from CHC use. Twirla is designed to be
applied once weekly for three weeks, followed by a week without a
patch.
About Prescription
DataThe Company receives prescription data for
Twirla from Symphony Health Solutions, and the data are not created
or owned by the Company. Prescription data are available through
other subscription services as well, such as IQVIA. Unless
otherwise noted, the prescription data results reported in this
press release are reported as of June 30, 2023, by Symphony Health
Solutions. The prescription data terms are defined as follows:
Twirla cycles dispensed are the number of 3-patch packages
dispensed.
Each 3-patch package represents one 28-day cycle of therapy.
Total Cycles Dispensed represents every cycle dispensed from both
retail and non-retail channels. Retail channels include retail
pharmacies, mail order, and long-term care while non-retail
channels include clinics and hospitals and other entities where
prescriptions are dispensed directly to the patient. Total
prescriptions (TRx) are the total number of prescriptions dispensed
through the retail channels. This represents both new and refill
prescriptions. New prescriptions (NRx) are new prescriptions
dispensed through retail channels. Refill prescriptions (RRx) are
refill prescriptions filled through retail channels. Total
prescribers are the cumulative number of prescribers whose
prescriptions were filled through retail channels since launch. Not
all prescription demand in the non-retail channel is reported into
third parties like Symphony Health Solutions and IQVIA. The factory
sales reported from Twirla wholesalers do include sales to the
non-retail channel and, therefore, the Company believes factory
sales more closely represent the total demand for Twirla across all
channels.
Use of Non-GAAP Financial MeasuresTo supplement
our consolidated financial statements, which are prepared and
presented in accordance with U.S. generally accepted accounting
principles (GAAP), we use non-GAAP operating expenses and non-GAAP
net loss to measure our financial performance. We define the term
non-GAAP operating expenses as GAAP operating expenses excluding
one-time, non-cash charges incurred in connection with the loss on
disposition of assets. We define the term non-GAAP net loss as GAAP
net loss excluding recurring unrealized gains or losses pertaining
to liability classified warrants and one-time non-cash charges
incurred in connection with the loss on disposition of assets. We
believe that the presentation of these non-GAAP financial metrics
provides useful information about our operating results, enhances
the overall understanding of past financial performance and future
prospects, allows for greater transparency with respect to metrics
used by our management in its financial and operational
decision-making and produces a useful measure for period-to-period
comparisons of our business.
The presentation of these non-GAAP financial measures are not
intended to be a substitute for, or superior to, the financial
information prepared and presented in accordance with GAAP and may
be different from non-GAAP financial measures used by other
companies, and therefore, may not be comparable among companies. We
believe the presentation of these non-GAAP financial measures
provides meaningful supplemental information regarding our
performance; however, we urge investors to review the
reconciliation of this financial measures to the comparable GAAP
financial measures included in the accompanying tables, and not to
rely on any single financial measure to evaluate our business.
Forward-Looking
StatementsCertain information contained in this
press release includes “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
We may in some cases use terms such as “predicts,” “believes,”
“potential,” “continue,” “anticipates,” “estimates,” “expects,”
“plans,” “intends,” “may,” “could,” “might,” “likely,” “will,”
“should” or other words that convey uncertainty of the future
events or outcomes to identify these forward-looking statements.
Our forward-looking statements are based on current beliefs and
expectations of our management team that involve risks, potential
changes in circumstances, assumptions, and uncertainties, including
statements regarding our ongoing and planned manufacturing and
commercialization of Twirla®, the potential market acceptance and
uptake of Twirla, including the increasing demand for Twirla in
2023, our partnerships with Afaxys and Syneos and their ability to
promote growth, our product supply agreement with Nurx and its
ability to educate patients about Twirla, our prospects for future
financing arrangements and ability to generate positive cashflow,
our expected net revenue and operating expenses for the second half
of 2023, and our financial condition, growth and strategies. Any or
all of the forward- looking statements may turn out to be wrong or
be affected by inaccurate assumptions we might make or by known or
unknown risks and uncertainties. These forward-looking statements
are subject to risks and uncertainties including risks related to
our ability to maintain regulatory approval of Twirla and the
labeling under any approval we obtain, the ability of Corium to
produce commercial supply in quantities and quality sufficient to
satisfy market demand for Twirla, our ability to successfully
enhance the commercialization of and increase the uptake for
Twirla, the size and growth of the markets for Twirla and our
ability to serve those markets, regulatory and legislative
developments in the United States and foreign countries, our
ability to obtain and maintain intellectual property protection for
Twirla and our product candidates, the lingering effects of the
COVID-19 pandemic on our commercialization efforts, clinical
trials, supply chain, operations and the operations of third
parties we rely on for services such as manufacturing, marketing
support and sales support, as well as on our potential customer
base, our ability to regain compliance with the listing
requirements of the Nasdaq Capital Market and the other risks set
forth in our filings with the U.S. Securities and Exchange
Commission, including our Annual Report on Form 10-K and our
Quarterly Reports on Form 10-Q. For all these reasons, actual
results and developments could be materially different from those
expressed in or implied by our forward-looking statements. You are
cautioned not to place undue reliance on these forward-looking
statements, which are made only as of the date of this press
release. We undertake no obligation to publicly update such
forward-looking statements to reflect subsequent events or
circumstances.
Contact:Matt RileyHead of Investor Relations
& Corporate
Communicationsmriley@agiletherapeutics.com
Agile Therapeutics, Inc. |
Balance Sheets |
(Unaudited) |
(in thousands, except par value and share
data) |
|
|
June 30, |
|
December 31, |
|
2023 |
|
|
2022 |
|
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
2,785 |
|
|
$ |
5,246 |
|
Accounts receivable, net |
|
4,461 |
|
|
|
3,377 |
|
Inventory, net |
|
2,537 |
|
|
|
1,332 |
|
Prepaid expenses and other current assets |
|
1,866 |
|
|
|
1,403 |
|
Total current assets |
|
11,649 |
|
|
|
11,358 |
|
Property and equipment,
net |
|
126 |
|
|
|
177 |
|
Right of use asset |
|
558 |
|
|
|
695 |
|
Other non-current assets |
|
238 |
|
|
|
2,012 |
|
Total
assets |
$ |
12,571 |
|
|
$ |
14,242 |
|
|
|
|
|
|
|
Liabilities and
stockholders’ deficit |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Long-term debt, current portion |
$ |
1,562 |
|
|
$ |
1,426 |
|
Notes payable, current portion |
|
502 |
|
|
|
— |
|
Accounts payable |
|
6,156 |
|
|
|
7,734 |
|
Accrued expenses |
|
6,747 |
|
|
|
3,908 |
|
Lease liability, current portion |
|
342 |
|
|
|
319 |
|
Total current liabilities |
|
15,309 |
|
|
|
13,387 |
|
|
|
|
|
|
|
Lease liabilities,
long-term |
|
288 |
|
|
|
466 |
|
Warrant liability |
|
9,095 |
|
|
|
5,934 |
|
Total
liabilities |
|
24,692 |
|
|
|
19,787 |
|
Commitments and
contingencies (Note 10) |
|
|
|
|
|
Stockholders’
deficit |
|
|
|
|
|
Preferred stock, $0.0001 par value, 10,000,000 shares authorized,
4,850 issued and no shares outstanding at June 30, 2023
and no shares issued and outstanding at
December 31, 2022 |
|
— |
|
|
|
— |
|
Common stock, $0.0001 par value, 300,000,000 shares authorized,
1,640,805 and 859,402 issued and outstanding at
June 30, 2023 and December 31, 2022,
respectively |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
405,779 |
|
|
|
403,157 |
|
Accumulated deficit |
|
(417,900 |
) |
|
|
(408,702 |
) |
Total stockholders’
deficit |
|
(12,121 |
) |
|
|
(5,545 |
) |
Total liabilities and
stockholders’ deficit |
$ |
12,571 |
|
|
$ |
14,242 |
|
|
Agile Therapeutics, Inc. |
Statements of Operations and Comprehensive
Loss |
(Unaudited) |
(in thousands, except per share and share
data) |
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues, net |
$ |
5,503 |
|
|
$ |
2,126 |
|
|
$ |
9,316 |
|
|
$ |
3,887 |
|
Cost of
product revenues |
|
2,307 |
|
|
|
2,231 |
|
|
|
4,310 |
|
|
|
3,758 |
|
Gross
profit |
|
3,196 |
|
|
|
(105 |
) |
|
|
5,006 |
|
|
|
129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Research and development |
$ |
703 |
|
|
$ |
856 |
|
|
$ |
1,466 |
|
|
$ |
2,113 |
|
Selling and marketing |
|
4,570 |
|
|
|
7,411 |
|
|
|
9,240 |
|
|
|
17,964 |
|
General and administrative |
|
3,049 |
|
|
|
3,026 |
|
|
|
6,133 |
|
|
|
7,023 |
|
Total
operating expenses |
|
8,322 |
|
|
|
11,293 |
|
|
|
16,839 |
|
|
|
27,100 |
|
Loss
from operations |
|
(5,126 |
) |
|
|
(11,398 |
) |
|
|
(11,833 |
) |
|
|
(26,971 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other
income (expense) |
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
15 |
|
|
|
2 |
|
|
|
48 |
|
|
|
3 |
|
Interest expense |
|
(372 |
) |
|
|
(823 |
) |
|
|
(773 |
) |
|
|
(1,695 |
) |
Unrealized gain on warrant liability |
|
1,674 |
|
|
|
7,051 |
|
|
|
3,361 |
|
|
|
8,435 |
|
Total
other income, net |
|
1,317 |
|
|
|
6,230 |
|
|
|
2,636 |
|
|
|
6,743 |
|
Loss
before benefit from income taxes |
|
(3,809 |
) |
|
|
(5,168 |
) |
|
|
(9,197 |
) |
|
|
(20,228 |
) |
Benefit
from income taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,675 |
|
Net loss
and comprehensive loss |
$ |
(3,809 |
) |
|
$ |
(5,168 |
) |
|
$ |
(9,197 |
) |
|
$ |
(15,553 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
per share (basic and diluted) |
$ |
(2.15 |
) |
|
$ |
(57.29 |
) |
|
$ |
(6.85 |
) |
|
$ |
(203.76 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares (basic and diluted) |
|
1,769,803 |
|
|
|
90,204 |
|
|
|
1,343,293 |
|
|
|
76,331 |
|
|
Agile Therapeutics, Inc. |
Reconciliation of Net Loss (GAAP) to adjusted Net Loss
(non-GAAP) |
(Unaudited) |
(in thousands) |
|
|
Three Months Ended |
|
Six Months Ended |
|
|
6/30/2023 |
|
3/31/2023 |
|
6/30/2022 |
|
3/31/2022 |
|
|
6/30/2023 |
|
6/30/2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net Loss |
$ |
(3,809 |
) |
|
(5,390 |
) |
|
(5,168 |
) |
|
(10,385 |
) |
|
$ |
(9,197 |
) |
|
(15,553 |
) |
Unrealized gain on warrant liability |
|
1,674 |
|
|
1,687 |
|
|
7,051 |
|
|
1,384 |
|
|
|
3,361 |
|
|
8,435 |
|
Loss
on disposition of assets |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
Non-GAAP Net Loss |
$ |
(5,483 |
) |
|
(7,077 |
) |
|
(12,219 |
) |
|
(11,769 |
) |
|
$ |
(12,558 |
) |
|
(23,988 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP NetLoss Per Share |
$ |
(3.10 |
) |
|
(7.76 |
) |
|
(135.46 |
) |
|
(188.90 |
) |
|
$ |
(9.35 |
) |
|
(314.26 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted avg shares |
|
1,769,803 |
|
|
912,044 |
|
|
90,204 |
|
|
62,304 |
|
|
|
1,343,293 |
|
|
76,331 |
|
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