Aytu BioPharma Reports Turnaround with Focus on ADHD

Aytu BioPharma (ticker AYTU) recently showcased its transformation and strategic focus on ADHD and pediatric therapeutics during its Fiscal 2024 Q4 Earnings Call. The company celebrated a remarkable 162% increase in adjusted EBITDA, reaching $9.2 million, and made strides in reducing net losses compared to fiscal 2023. Despite challenges such as a cyberattack that hindered prescription dispensing and a drop in pediatric revenue, Aytu remains hopeful about growth in its ADHD and pediatric product lines, noting early recovery signs in pediatric unit shipments and maintaining a robust cash position of $20 million.

### Key Takeaways
– Adjusted EBITDA increased to $9.2 million, reflecting a considerable growth from the prior fiscal year.
– Aytu exited its consumer health business and closed its Texas manufacturing facility, leading to improved gross margins.
– ADHD prescriptions hit a record high, resulting in a 23% revenue uptick in that segment.
– The pediatric portfolio saw a revenue decrease due to payer changes, although recent efforts suggest a potential recovery.
– Net revenue stood at $81 million, with a net loss of $15.8 million, marking an improvement from the previous year.
– Aytu refinanced its term loan, cutting interest rates and saving approximately $1.3 million in interest expenses.
– The company remains positive about increasing sales in both ADHD and pediatric product lines for fiscal 2025.

### Company Outlook
Aytu is transitioning production to a U.S. contract manufacturer while finalizing the exit from the Texas facility to bolster gross margins. The firm aims to stabilize and grow ADHD sales alongside its pediatric business, particularly through products like Karbinal ER and multivitamins. Aytu is actively seeking strategic growth opportunities to enhance payer coverage and patient access.

### Challenges and Opportunities
– A cyberattack impacted a major customer, resulting in a temporary 15% decline in prescription dispensing.
– The pediatric portfolio revenue significantly dropped, with fiscal 2024 revenues falling to $7.3 million from $25.4 million in the previous year.

On the brighter side, ADHD unit sales surged by 26% from July 1 to September 25, 2023, while pediatric unit shipments rose by 115% since July 1, 2024. Gross margins improved to 67% for fiscal 2024, signifying a shift toward more profitable prescription products. However, net revenue decreased to $81 million from $107.4 million in the previous year, and fourth-quarter adjusted EBITDA dipped to $1.5 million from $7.7 million year-over-year.

### Q&A Highlights
CEO Josh Disbrow emphasized the significance of the pediatric business and expressed confidence in returning it to meaningful revenue levels. Improvements in gross-to-net ratios for pediatric products and enhanced geographic reach for Karbinal ER were reported. Concurrently, Aytu aims to maximize the potential of its RxConnect network to introduce new products without substantial cash investments, all while ensuring operational cash flow remains steady.

In summary, Aytu BioPharma’s fiscal 2024 marks a year of strategic realignment and operational enhancements. Though the company faces challenges, it is positioned for potential growth, particularly in its core ADHD and pediatric therapeutic segments.

The article concludes with a note that Aytu looks forward to a fruitful fiscal 2025, building on its strengths and addressing its challenges effectively.