Flexion Therapeutics, Inc. (NASDAQ:FLXN) Q3 2019 Earnings Conference Call Transcript

Nov 07, 2019 • 04:30 pm ET

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Flexion Therapeutics, Inc. (NASDAQ:FLXN) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, ladies and gentlemen, and welcome to the Flexion Therapeutics Third Quarter 2019 Financial Results Conference Call. My name is Dylan, and I'll be your coordinator today. [Operator Instructions]

I'll now turn the call over to the Company.

Executive
Scott Young

Good afternoon. This is Scott Young, Vice President for Corporate Communications and Investor Relations.

Before we begin, I would call your attention to the metric slides that we will discuss in today's presentation. Those slides can be viewed directly via the webcast, in the 8-K we issued this afternoon, under the investors tab on flexiontherapeutics.com. In addition, our Q3 earnings press release and an archive of this conference call can be found there. Today's call will be led by Flexion's Chief Executive Officer, Dr. Michael Clayman; and he's joined by David Arkowitz, Flexion's Chief Financial Officer.

On today's call, we will be making forward-looking statements that include commercial, financial, clinical and regulatory projections. Statements relating to future financial or business performance, conditions or strategies or other business matters, including expectations regarding net sales, operating expenses, cash utilization, clinical, regulatory and commercial developments, and anticipated milestones are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Flexion cautions that these forward looking statements are subject to various assumptions, risks and uncertainties which change over time.

Additional information on the factors and risks that could affect Flexion's business, financial conditions and results of operations are contained in Flexion's Form 10-Q for the quarter ended September 30th, 2019, filed with the SEC today and other filings which are available at www.sec.gov, as well as Flexion's website. These forward-looking statements speak only as of the date of this call and Flexion assumes no duty to update such statements.

I will now turn the call over to Flexion's CEO, Mike Clayman.

Executive
Mike Clayman

Thanks, Scott, and thank you all for joining the call. It's my pleasure to provide an update on Flexion's third quarter business performance. Today I'll discuss ZILRETTA's progress in the market, recap our recent regulatory, clinical and business development achievements; and then turn it over to David for a deeper review of our commercial metrics and a summary of our financial performance; after that, we will open the line and take questions.

To begin, as we announced in the press release this afternoon, we recorded ZILRETTA net sales of $21.8 million in the third quarter, which represents growth of 29% over the second quarter. Throughout the course of 2019, we have seen increased traction with existing accounts, as well as strong penetration into new accounts.

As we have discussed previously, we believe this momentum can be attributed to several key factors, including the overwhelmingly positive feedback patients are sharing with their physicians, the reliable and expeditious reimbursement that has resulted from ZILRETTA's dedicated J-Code, changes we've made in our commercial organization throughout the year, and more recently, activities focused on enhancing the value proposition to purchasers and providers, including GPO contracting and a volume-based health care provider rebate program that we implemented in