VIVUS Inc. (NASDAQ:VVUS) Q2 2019 Earnings Conference Call - Final Transcript

Aug 06, 2019 • 04:30 pm ET


VIVUS Inc. (NASDAQ:VVUS) Q2 2019 Earnings Conference Call - Final Transcript


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Good afternoon, and welcome to VIVUS Second Quarter 2019 Financial Results Conference Call. [Operator Instructions]

For introductions and opening remarks, I'd like to turn the call over to Mr. David Carey with Lazar Partners. Please go ahead.

David Carey

Thank you, operator. Good afternoon, everyone, and welcome to today's teleconference.

With me on the call is John Amos, VIVUS' Chief Executive Officer; Mark Oki, VIVUS' Chief Financial Officer; and Dr. Santosh Varghese, VIVUS' Chief Medical Officer.

Before we get started, I would like to remind everyone that during this conference call, VIVUS will make certain statements that are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words such as anticipate, believe, estimate, expect, forecast, intend, hope, likely, may, opportunity, plan, potential, predict and should, among others. These forward-looking statements are based on VIVUS' current expectations, and actual results could differ materially.

There are a number of factors that could cause actual events to differ materially from those indicated by such forward-looking statements. Investors are advised to read the risk factors set forth in VIVUS' Form 10-K for the year ended December 31, 2018, which was filed on February 26, 2019, as well as periodic reports filed with the Securities and Exchange Commission such as VIVUS' Form 10-Q filed earlier today. VIVUS does not undertake an obligation to update or revise any forward-looking statements made on this call.

I'll now turn the call over to John Amos.

John Amos

Thanks, David, and thanks to everyone on the call for your time this afternoon. Fiscal Q2 2019 represents the completion of quarter four of our 10-quarter turnaround. The newly integrated management team has been working on improving the business for over a full year. I would like to compare and contrast the last four quarters of performance ending on June 30, 2019, with the four quarters of performance ending on June 30, 2018.

From July 1, 2018 to June 30, 2019, we generated revenue of $72.7 million compared with $54 million in the prior year period. This reflects a revenue growth rate of 34.7%. From July 1, 2018 to June 30, 2019, we generated non-GAAP EBITDA of $14.4 million compared with $155,000 in the prior year. Later in the call, Mark will further expand on some of our expense management and provide some final points on the last 12 months of management of the business as well as review second quarter 2019 financial results.

I'd like to begin with a review of Qsymia, emphasizing that in the second quarter of 2019, we grew scripts for the product by 5% compared with the first quarter of 2019. As noted in our prior quarterly call, we see the performance of Qsymia in the first quarter of 2019 as the baseline from which we intend to grow. We also noted that we have relaunched the product utilizing our advantage platform, and in just a few months, it is already beginning to realize its potential,