WebMD Health Corp. (NASDAQ:WBMD) Q1 2017 Earnings Conference Call - Final Transcript
May 02, 2017 • 04:45 pm ET
(Operator Instructions) Sandy Draper, SunTrust.
Just a question on the second quarter. You talked a lot about the visibility and the strength, the acceleration in biopharma. I'm just curious, is it driven more by new programs and new sponsorship coming on from new drugs or sort of rejuvenating from older drugs? And what I'm trying to get a sense of is in any given quarter or year, how much typical movement do you have if sort of top 5, top 10 revenue-producing brands? How much do they sort of come in and out on a quarterly or annual basis? I'm just trying to think about that and what's driving the second quarter.
Hey, Sandy, it's Steve. Look, our sales and revenue are really driven by a combination of newer products and new drug introductions that may have taken place in the last year and products that have been on the market longer but particularly are in competitive categories. So both are important to our success. As we've said before, any particular quarter can have some variability. But if you are asking more generally about what drives our business, certainly, newer products are very important to our success, but existing products, as I said particularly where there a significant degree of competition and challenges in reaching those patient populations, those certainly help drive our business as well.
Nick Jansen, Raymond James.
Just two quick ones, one to follow up on Sandy's question just in terms of we have seen a pretty nice acceleration in the number of new drug approvals over the last, let's call it, 90 days versus what we saw in 2016. So just trying to bridge that dynamic to the growth acceleration that you point on getting the back half for a full year guidance perspective. And then secondly, on OTC, CPG and other, down 5% but you kind of reiterated full year of up 8% to 11%, so wasn't sure if there is any sort of specific programs or things that we should be considering on that growth improvement for that segment?
Yes, Nick, this is Steve. There is no doubt we've seen an improvement in the approvals that are taking place at the FDA as I think you know they've approved of essentially twice as many products that we have seen in the same time period last year. The timing of our programs though can be pretty variable as compared to when those products are approved. And in some circumstances, we run programs ahead of approval and even after approval, it can take some time for a particular pharmaceutical company to decide they want to run a particular campaign. So again, similar to what I said to Sandy, that those are important to our business, but the timing can be pretty variable between an approval and when a campaign may run in a particular year.
And then, this is Blake. The second part of your question on the OTC, CPG acceleration in the back half of the