Tetraphase Pharmaceuticals, Inc. (NASDAQ:TTPH) Q3 2019 Earnings Conference Call - Final Transcript
Nov 12, 2019 • 04:30 pm ET
Good afternoon, ladies and gentlemen, and welcome to the Tetraphase Pharmaceuticals Third Quarter 2019 Financial Results. [Operator Instructions]
I will now turn the call over to Maria Stahl, Chief Business Officer.
Thank you. Good afternoon, and thank you for joining us today. With me on the call are Larry Edwards, President and CEO and Chris Watt, Senior Vice President of Finance. On today's call, Larry will discuss recent developments and will provide an update on the XERAVA launch. Chris will provide an overview of our third quarter 2019 financial results, and Larry will conclude and open the call to questions.
Before we begin our formal comments, let me remind you that during today's conference call, we will be making forward-looking statements that represent the company's intentions, expectations or beliefs concerning future events. These forward-looking statements are qualified by important factors set forth in today's press release and in the company's filings with the SEC, which could cause actual results to differ materially from those in such forward-looking statements.
Information discussed on today's call is accurate as of today, and we do not necessarily intend to update this specific information in the future.
I would now like to turn the call over to Larry Edwards.
Thank you, Maria. Good afternoon to everyone, and thank you for joining us on today's call.
In the third quarter, we continued working hard to ensure that XERAVA becomes a commercial success and is reaching more patients in need of antibiotic treatment options for serious, often life-threatening infections.
During the quarter, we made significant progress with a 23% increase in net sales compared to second quarter and continued formulary uptake at a success rate of 99% for all formulary reviews to date.
Furthermore, carton growth for XERAVA was over 30% versus the second quarter, demonstrating continued acceptance and support for increased utilization of the drug. XERAVA is a well-differentiated antibiotic that has a broad spectrum of coverage in a very reasonable and appropriate price point. As antibiotic resistant rates continue to increase and inappropriate initial empiric therapy continues to be a problem for patients, we expect XERAVA to become an increasingly important component of the antibiotic treatment arsenal for complicated intra-abdominal infections.
Our team is squarely focused on continued formulary uptake and ensuring pull-through with all health care professionals, and we are confident that sales will continue to increase.
Our launch execution strategy, as we've outlined in previous quarters, has been comprised of 2 phases. The first was targeting Tier 1 accounts, which are the highest institutional users of antibiotics defined by days of therapy and represent approximately 6% of the Gram-negative market.
And the second is focusing on Tier 2 accounts, which constitutes approximately 30% of the Gram-negative market. We've now expanded this to target key Tier 3 facilities as well.
And we continue to see impressive reorder rates of 57% for XERAVA in all accounts and reorder rates as high as 70% within our Tier 1 account segment. As seen by these reorder rates, our