UroGen Pharma Ltd. (NASDAQ:URGN) Q2 2023 Earnings Call Transcript
UroGen Pharma Ltd. (NASDAQ:URGN) Q2 2023 Earnings Call Transcript August 10, 2023
UroGen Pharma Ltd. beats earnings expectations. Reported EPS is $-1.03, expectations were $-1.13.
Operator: Good morning, ladies and gentlemen. Thank you for standing by. And welcome to the UroGen Pharma’s Second Quarter 2023 Earnings Call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Vincent Perrone, Head Investor Relations. You may begin.
Vincent Perrone: Thank you. Good morning, everyone. And welcome to UroGen Pharma's second quarter 2023 financial results and business update conference call. Earlier this morning, we issued a press release providing an overview of our recent corporate highlights and preliminary financial results for the quarter ended June 30, 2023. The press release can be accessed on the Investors portion of our Web site at investors.urogen.com. Joining me today are Liz Barrett, President and Chief Executive Officer; Dr. Mark Schoenberg, Chief Medical Officer; Jeff Bova, Chief Commercial Officer; and Don Kim, Chief Financial Officer. During today's call, we will be making certain forward-looking statements. These may include statements regarding our ongoing commercialization activities related to JELMYTO, our ongoing and planned clinical trials, commercial and clinical milestones, market and revenue opportunities, our commercialization strategy and expectation as well as potential future commercialization activities for UGN-102, if approved, anticipated data, regulatory filings and decisions including UGN-102 potentially receiving priority review, UGN-102 being the foundry growth driver for UroGen if approved, future research and development efforts, our corporate goals and 2023 financial guidance among other things.
These forward-looking statements are based on current information, assumptions and expectations that are subject to change. A description of potential risks can be found in our earnings press release and latest SEC disclosure documents. You are cautioned not to place undue reliance on these forward-looking statements, and UroGen disclaims any obligation to update these statements. I will now turn the call over to Liz. Liz?
Liz Barrett: Thank you, Vincent. And thank you to everyone joining us today. I'm excited to speak to you during what I can only describe as a transformative time for UroGen. UroGen is committed to revolutionizing patient care by developing and commercializing novel therapies, targeting urothelial and specialty cancers for patients that deserve better. We recently announced unprecedented results from two Phase 3 clinical trials, investigating the use of UGN-102 to treat patients with low grade intermediate risk non-muscle invasive bladder cancer. Both the ATLAS and ENVISION trials met their primary endpoints demonstrating meaningful and consistent results overall and relative to TURBT. In the ATLAS trial, UGN-102 met its primary endpoint of disease free survival, reducing risk of recurrence progression or death by 55%.
Disease free survival 15 months after randomization was estimated to be 72% for patients in the UGN plus or minus TURBT arm compared to 50% for patients in the TURBT arm by Kaplan-Meier analysis. UGN-102 also showed a 65% complete response rate at three months for patients who only received UGN-102 compared to a 64% complete response rate at three months for patients who only received a TURBT. The ENVISION trial also met its primary endpoint by demonstrating that patients treated with UGN-102 had a 79.2% rate of complete response at three months following the initiation of treatment. UGN-102 has now demonstrated consistent and what we believe compelling therapeutic and safety profile across multiple clinical trials, while showcasing the limitations of TURBT in this patient population.
Looking ahead data evaluating the secondary endpoint of duration of response is expected in the first half of 2024. Assuming positive findings, we anticipate submitting an NDA to the FDA in 2024. The goal would be to receive priority review, which if granted, may potentially result in approval as early as the end of 2024 or early 2025. If approved, we anticipate UGN-102 to be the primary growth driver for UroGen as the first ever non-surgical treatment option for disease afflicting approximately 82,000 new patients in the US each year with an annual total market opportunity of more than $3 billion. The shift away from traditional surgical care has the potential to improve the quality of life of tens of thousands of individuals battling this highly recurrent disease.
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This patient centric focus underscores UroGen's dedication to having meaningful impact on patient care. Turning to JELMYTO second quarter net revenues were a record $21.1 million, a 27% increase from the same quarter one year prior. We're pleased to see the continued and consistent growth in adoption as additional recent real world data strengthens the case for JELMYTO's therapeutic value and safety across different practice patterns. We will leverage JELMYTO's recent success as we shape UGN-102’s prospective pre-commercialization strategy. In parallel strategic steps were taken to strengthen our financial position. The recent $120 million private placement of ordinary shares provides us with the resources to support our business, including our anticipated pre-commercialization and launch strategy for UGN-102.
We are proud to partner with a group of high quality biotech investors who believe in the opportunity of UroGen's portfolio to address significant unmet needs in urothelial and specialty cancers. I am thrilled for the progress we've made in 2023 and for the road ahead as we plan for an FDA submission of UGN-102 next year. We believe UGN-102 and JELMYTO together represent over a billion dollar revenue opportunity. UroGen is positioned to pioneer a new era in urologic and specialty cancer care while creating significant value for our patients and shareholders. With that, I'll pass the call over to Mark. Mark?
Mark Schoenberg: Thank you Liz, and hello everyone. As Liz has now gone through and described the details and strength of our recently announced Phase 3 ATLAS and ENVISION topline data, I would like to spend some time putting this information in the context of actual clinical practice in patient care. To do so, I'll draw from information shared by UroGen and key stakeholders from the presentation and panel discussion at our recent New Horizons data event, which I hope you were able to attend. If not, I would encourage you to access the replay available on our Web site. In addition, the Journal of Urology earlier this week published a peer reviewed article highlighting results from the Phase 3 ATLAS study. We continue to encounter surprise when people learn that bladder cancer is actually one of the most prevalent cancers with over 700,000 patients in the US alone.
Of the 82,000 patient subset with low grade intermediate risk NMIBC recurrence is high with 68% of those having two or more recurrences and 23% with five or more recurrences. When we examine UGN-102 for the treatment of low grade intermediate risk NMIBC, we often draw parallels to JELMYTO for low grade upper tract urothelial carcinoma. It is well characterized that the genetic and molecular makeup of tumors are similar in both. And while the medicines are different drugs, they leverage the same RTGel technology and active with similar dosing schedules. Interestingly, while the similarities between JELMYTO and UGN-102 work to our advantage, the differences are significant. For one, the patient population for UGN-102 as mentioned is an order of magnitude larger than JELMYTO.
Aand because the bladder is easier to access than the upper urinary tract, UGN-102 can be administered in a clinic setting by a nurse or advanced practice provider using a standard urethral catheter. TURBT remains the standard of care for this patient population and is one of the most common procedures performed in urologic oncology. But TURBT is not without risk and 33% of patients encountered adverse events within 90 days of surgery based on data from the published literature. Others have shown that patients who undergo two to four TURBTs have a significantly increased risk of mortality. If approved, UGN-102 stands to offer an efficacious treatment alternative while also allowing this patient population to avoid the risks associated with repetitive surgery.
And with that, I'll turn the call over to Jeff for a commercial update. Jeff?
Jeff Bova: Thanks, Mark. The second quarter represented our strongest quarter performance ever for JELMYTO. During the second quarter, we saw further strengthening of the JELMYTO ramp and an increase in uptake in several developing territories. Growing awareness and adoption of JELMYTO remains attributable to several key factors. First, the benefits of our revised sales strategy continue to deliver consistency and growth in the developing territories. Second, the extension of the stability period of the JELMYTO admixture from eight to 96 hours has eliminated several operational and logistical challenges, including allowing for day prior delivery, enabling HCP preferred early morning installation. Currently, more than 50% of doses consist of day prior delivery, facilitating expansion of the geographic coverage of our mixing partner and optimizing our territory business managers’ time in the field.
And finally, the growing body of outcomes from real world evidence data continues to strengthen and reinforce JELMYTO’s efficacy and safety profile, supporting its multimodal use across various practice patterns. JELMYTO’s traction and adoption appears to be accelerating as the product becomes increasingly proven in a real world setting, easier to administer and incorporate across multiple practice patterns. Reimbursement remains at approximately 96% across all payer types. This reinforces our optimism and lays the foundation for the potentially much larger opportunity with UGN-102 in low grade, intermediate risk, non-muscle invasive bladder cancer. On the heels of the positive ATLAS and ENVISION data, we've begun executing our pre-commercialization plan in preparation for a prospective UGN-102 NDA.
With 95% overlap in our prescriber base and well-established practice patterns, we expect a seamless integration of UGN-102 into our commercial organization if approved. With that, I'll turn the call over to Don to discuss our financials. Don?
Don Kim: Thank you, Jeff. And thank you to everyone for joining today's call. I'm pleased to review our financial results for the second call ended June 30, 2023. For the second quarter of 2023, we reported JELMYTO net product revenues of $21.1 million inline with consensus estimates and an increase over 27% compared to $16.6 million in the same period last year. For the second quarter of 2023, research and development expenses were $11.6 million as compared to $12.6 million for the same period in 2022. The decrease is primarily due to lower expenses related to the conclusion of the ATLAS trial and lower cost of ENVISION trial for UGN-102, offset by higher R&D expense related to the Phase 1 study for UGN-301. Selling, general and administrative expenses for the second quarter 2023 were $22.5 million.
This compares to $20.8 million for the same period in 2022. Increase to SG&A is primarily due to higher marketing, commercial operations, professional services and training, offset by lower market research related expenses. UroGen reported on non-cash financing expense related to the prepaid forward obligation to RTW Investments of $5.3 million for the second quarter 2023. UroGen reported on net loss of $24.1 million or a basic and diluted net loss per ordinary share of $1.03 for the second quarter 2023 as compared to $26.7 million or a basic and diluted net loss per ordinary share of $1.18 for the same period in 2022. Turning to forward guidance. We reiterate anticipated full year 2023 net product revenues from JELMYTO to be in the range of $76 million to $86 million.
We reiterate the full year 2023 operating expenses to be in the range of $135 million to $145 million, including non-cash share based compensation expense of $6 million to $11 million subject to market conditions. The company reiterate anticipated full year 2023 non-cash financing expense related to the prepaid forward obligation to RTW Investments in the range of $21 million to $26 million. Of this amount, approximately $9.9 million to $11.2 million is expected to be in cash. We ended the second quarter with $55.3 million in cash and cash equivalents and marketable securities, not including the proceeds of the $120 million private placement financing announced on July 27, 2023. With that, I'd like to turn the call over to operator for questions.
Operator?
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