Aimmune Therapeutics, Inc. (NASDAQ:AIMT) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 04:30 pm ET

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Aimmune Therapeutics, Inc. (NASDAQ:AIMT) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Executive
Eric Bjerkholt

included a $4.5 million write-off of inventory during the quarter ended June 30. The primary reason for the write-off is that prior to the pandemic, we had manufactured product supply in anticipation of a robust launch in the first quarter. As the pandemic has affected our launch, we now anticipate that this inventory will not be usable based on its expiration date. Due to the unusual circumstances caused by the pandemic in the second quarter, we do not expect inventory write-off to be a recurring event.

R&D expenses for the quarter and six months ended June 30, 2020, were $23 million and $59.5 million, respectively, versus $32 million and $63.3 million for the comparable periods of 2019. The decreases reflect cost containment measures and the closeout of certain PALFORZIA clinical trials. The R&D expense for the six months ended June 30, 2020, also includes the onetime $10 million license fee for AIMab7195.

SG&A expenses for the quarter and six months ended June 30 were $38.1 million and $87.2 million, respectively, versus $31.2 million and $54.9 million for the comparable periods of 2019. The increases from prior year were primarily due to additional head count to support the commercialization of PALFORZIA, including a specialty field team of approximately 80 practice account managers targeting practicing allergists and other costs related to medical affairs and the commercial launch. The Q2 SG&A expense of $38.1 million compares to an expense of $49.1 million for the first quarter, and the reduction reflects cost containment efforts.

For the quarter and six months ended June 30, GAAP net loss was $69.2 million and $155.7 million, respectively, versus $62.9 million and $117.1 million for the comparable periods of 2019. On a per share basis, GAAP net loss per share for the quarter and six months ended June 30 was $1.06 and $2.40, respectively, versus the $1.01 and $1.88 for the comparable periods of 2019.

In addition to reporting GAAP financial information, our quarterly results include non-GAAP financial measures, which we believe provide useful supplemental information to investors. On a per share basis, non-GAAP net loss for the quarter and six months ended June 30, 2020, was $0.81 and $1.84, respectively, versus $0.87 and $1.62 for the comparable periods of 2019. Non-GAAP net loss excludes stock-based compensation, upfront cash and equity payments associated with the execution of the AIMab7195 license agreement and inventory charges recorded in the second quarter of 2020.

As CFO and as a leadership team, we can draw up cash preservation plans, but our employees are the ones who need to execute against those plans. We are grateful for their dedication towards this effort. As a management team, we are prioritizing commercial efforts to support a successful launch of PALFORZIA in the U.S. while mindfully preserving capital necessary to fully fund our business plan.

With that, we will open the call for questions.