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Avanir Pharmaceuticals, Inc (AVNR)
F4Q12 Earnings Conference Call
December 12, 2012 4:30 PM ET
Ian Clements - Head, IR
Keith Katkin - President & CEO
Rohan Palekar - CCO
Christine Ocampo - VP, Finance
Dr. Joao Siffert - SVP, Research and Development
Gregory J. Flesher – Chief Business Officer.
Whitney Ijem – Canaccord Genuity Inc.
Jason Butler – JMP Securities
Thomas Wei – Jefferies
Carol Werther – Summer Street Research Partners
Previous Statements by AVNR
» Avanir Pharmaceuticals' Management Presents at UBS Global Life Sciences Conference (Transcript)
» Avanir Pharmaceuticals' CEO Presents at Canaccord Genuity 32nd Annual Growth Conference (Transcript)
» Avanir Pharmaceuticals' CEO Discusses F3Q12 Results - Earnings Call Transcript
As a reminder today’s call is being recorded for replay purposes. I would now like to turn the call over to your host for today, Mr. Ian Clements, Head of the Investor Relations. Please proceed, sir.
Thanks, Karis and good afternoon everybody. I’d like to welcome you to our fiscal fourth quarter and year-end conference call.
We once again delivered solid revenue and prescription growth which is a good indicator of our business moment. To discuss this and other topics, including clinical trial updates, I’m joined today by several members in our leadership team. Our President and CEO, Keith Katkin will lead the call today by providing a brief strategic overview of our business. After Keith, our VP of Finance, Christine Ocampo will review our quarterly results and provide guidance for our new fiscal year. Our Chief Commercial Officer, Rohan Palekar will highlight NUEDEXTA performance followed by Dr. Joao Siffert, Chief Scientific Officer who will provide a pipeline update. For the Q&A portion of today’s call we’ll also be joined by Greg Flesher, our Chief Business Officer.
During the course of this conference call we will be making certain forward-looking statements. These statements are subject to numerous risks and uncertainties and reflect our current expectations and judgments. Examples of these forward-looking statements include statements relating to our expectations for NUEDEXTA sales and revenue growth, future expense levels, the timing and success of our future development of AVP923 and AVP786 for other indications, the potential approval of NUEDEXTA in new markets and risks relating to our pending NUEDEXTA patent litigation.
Actual results could vary materially from the results anticipated by these statements. Investors should read the risk factors set forth in Avanir’s Form 10-K for the year ended September 30, 2012 and subsequent periodic reports filed with the Securities and Exchange Commission.
So with that said, I'd now turn the call over to Keith Katkin. Keith?
Thank you Ian and good afternoon everyone and thank you for joining our call today. As you may have seen from our results announced earlier today, we have continued to make great progress with both our commercial and research and development activities. Our comments today will focus on our current sales momentum, our research and development programs and several key milestones in the coming 12 to 18 months that we believe can generate clear shareholder value.
In terms of fourth quarter results, we again posted solid net revenue growth through strong commercial execution while focusing on expense management. We’re particularly pleased with the strength we are seeing in our overall business and we continue to deliver record prescriptions, the most recent of which annualized over $70 million in gross sales.
In addition, we’re continuing to advance our pipeline in several key areas of unmet medical need. NUEDEXTA or AVP-923 as it’s known in the clinic, is now in the clinic with programs that explore behavioral disorders in Alzheimer’s disease and autism, neuropathic pain in multiple sclerosis and movement disorders in Parkinson’s. We have also moved Dextromethorphan, now known as AVP-786 into the clinic less than a year from announcing the acquisition of the asset.
Before I turn the call over to Christine to discuss our financials, I’d like to take a moment to thank all of our staff for their dedication and hard work over the past year. We have made significant progress across all aspects of our business during the fiscal year and it’s through their efforts and dedication that we’re able to deliver important new therapies for patients and ultimately deliver value to our shareholders.
With that, let me turn the call over to Christine for the financial review.
Thanks Keith and good afternoon everyone. In addition to the financial results summarized in the press release issued earlier this afternoon, you can find additional information, including full-year information in our upcoming Form 10-K which will be filed by Friday.
This was a strong finish to the fiscal year for us. We reported total net revenue for the fourth fiscal quarter of 2012 of $13.5 million, as compared to $4.8 million for the comparable period in fiscal 2011, a year over year growth of over 180%.
For the fourth fiscal quarter of 2012, we reported a record gross product sales of NUEDEXTA of $15.4 million and record net sales of NUEDEXTA of $12.4 million.
During the quarter ended September 30, 2012, our gross to net discount increased to 19.7%, compared to 17.7% in the prior quarter. The 2% increase in gross to net discount was mostly driven by mandated government rebate. Going forward, we expect the gross to net discount to increase as we continue entering into contracts with managed care entities, enabling increased patient access and reductions in prior authorization requirements. We believe the gross to net discount will stabilize over time somewhere between 20% and 25%, excluding the impact of any future price increases.