- ADLR released 2q2011 earnings on 7/27/2011- click here for the press release.
- For complete background due diligence on Adolor, visit the ADLR research page.
- See below the jump for my notes from the conference call:
- Entereg: $8.2m sales 2q2011, +10% vs $7.5m 1q2011 and +31% vs $6.2m 2q2010
- Currently focused on expansion in accounts with existing REMS and formulary approval
- Have made recent progress in registration for several large accounts including a key midwest hospital network (see below for further discussion q&a session)
- Why acquire from GSK? think can continue to drive sales growth, long patent life, accretive vs previous deal in year 1, substantially better positioned for future on "strategic front" (and, the product was too small for GSK, as described on their own 2q11 conference call, more details to follow in a future blog post)
- Plan to have 50 people in the field, focused 100% on Entereg. Invigorated effort on non-personal promotion (ie, ways to reach physicians other than an in-person visit from a sales rep)
- ADL5945 for opioid-induced constipation (OIC): top-line phase 2 data. Company clarified expectations - plan to release data from both trials simultaneously in August 2011
- Accelerated recognition of revenue from GSK: ~$6m recognized in 2q2011, $16.8m revenue will be recognized in 3q2011 - may report GAAP net profit but will not be cash flow positive.
- ~$16-17m operating expenses in each 1q and 2q2011.
- Have recorded $19.3m accounting liability and intangible asset related to present value of $25m guaranteed payments to GSK
- last payment to GSK will be in 3q2017
- 45.6m shares outstanding and $31.7m cash at 6/30/11
- q&a session:
--30 new reps- interviews ongoing over last couple weeks to transition 9/1
2) have had positive response in customer interest after presentation of pharmacoeconomic data
3) --New hospital deal - more than 10 satellite institutions that now have access, pent up interest from surgeons at those accounts. together these 10 has equal potential as the main institution
--price increase beginning of 2011, no increase in 2q2011
--both studies 80% powered to detect 2 bowel movement difference weekly vs placebo (endpoint is average change weekly over 4 weeks (from looking at the phase 1 data that I have uploaded to the ADLR page, I am a bit concerned about them hitting the endpoint).
4): all 30 reps "will be hired pretty much all at once in relative near term"