OptiNose Reports Promising Q2 Results, Aiming for Profitability by 2025

OptiNose (OPTN), a specialty pharmaceutical firm, has announced a promising beginning to the second quarter of 2024, marking significant advancements in the rollout of their chronic sinusitis treatment, XHANCE. The company has revised its full-year 2024 forecast for XHANCE’s net revenue to between $85 million and $90 million, indicating a growth of 20% to 27% from the previous year. In Q2 2024, XHANCE saw a 5% increase in net revenue, reaching $20.5 million, and the company anticipates further growth, particularly with the addition of XHANCE to major Express Scripts national formularies. OptiNose remains hopeful about achieving peak annual sales of $300 million and expects to report positive operational income for the entire year of 2025.

### Key Takeaways:
– OptiNose experienced a 5% growth in Q2 2024 XHANCE net revenue, totaling $20.5 million.
– The full-year 2024 guidance for XHANCE net revenue has been increased to $85 million to $90 million.
– XHANCE’s inclusion in Express Scripts’ national formularies will improve patient access and affordability.
– The company is targeting peak annual sales of $300 million and aims for a positive operational income by 2025.
– OptiNose is shifting to a central intake pharmacy model to enhance patient support and streamline prescription fulfillment.

### Company Outlook:
– OptiNose is focused on achieving profitability by 2025, supported by approximately 90% gross margins and controlled operating expenses.
– Current cash reserves are expected to sustain operations and meet debt obligations through 2025.
– Revenue growth for 2024 is anticipated to fall between 20% and 27%.

### Bearish Highlights:
– The company is adopting a cautious stance on its average net revenue per prescription, setting a target of at least $250, despite achieving $269 in the first half of 2024.

### Bullish Highlights:
– Demand from payers for XHANCE’s new indication has increased.
– Engagement efforts with payers are focused on enhancing access and coverage for XHANCE.
– The drug’s addition to Express Scripts’ formularies is expected to significantly broaden its market accessibility.

### Challenges:
– A one-time event in the first half of 2024 disrupted unprofitable volumes, impacting the average net revenue per prescription.

### Q&A Summary:
During the Q&A segment, notable discussions revolved around the conservative average net revenue per prescription projections, with company representatives explaining the need for operational flexibility in light of copay assistance and other programs. Conversations revealed a strong focus on educating prescribers about XHANCE’s new indications and clinical benefits, highlighting the continuous efforts to support healthcare professionals.

### Financial Insights:
OptiNose reported a net revenue of $20.5 million from XHANCE in Q2 2024, reflecting a 5% increase from the same period last year, and a year-to-date average net revenue per prescription of $309, up 44% from the previous year. Total operating expenses have increased to $25.1 million in Q2 as the company makes initial investments for the chronic sinusitis launch.

Overall, OptiNose believes it is well-positioned to take advantage of the expanded market potential for XHANCE, with a commitment to laying a solid foundation for future growth and sustainable profitability.