AcelRx Pharmaceuticals, Inc. (NASDAQ:ACRX) Q2 2020 Earnings Conference Call - Final Transcript

Aug 10, 2020 • 04:30 pm ET

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AcelRx Pharmaceuticals, Inc. (NASDAQ:ACRX) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Welcome to the Acelrx Second Quarter 2020 Conference Call. This call is being webcast live on the Events page of the Investors section of Acelrx' website at acelrx.com. This call is the property of Acelrx and any recording, reproduction or transmission of this call without the express written consent of Acelrx is strictly prohibited. As a reminder, today's call is being recorded. You may listen to a webcast replay of this call by going to the Investors section of Acelrx' website.

I would now like to turn the conference over to Raffi Asadorian, Acelrx' Chief Financial Officer.

Executive
Raffi Asadorian

Thank you for joining us this afternoon. Earlier today, we announced our previously previewed second quarter 2020 financial results in a press release. This press release and the slide presentation accompanying this call are available in the Investors section of our website. With me today are Vince Angotti, our Chief Executive Officer; and Dr. Pam Palmer, our Chief Medical Officer.

Before we begin, I'll remind listeners that during this call, we will make forward-looking statements within the meaning of the federal securities laws. These forward-looking statements involve risks and uncertainties regarding the operations and future results of Acelrx. Please refer to our press releases, in addition to the Company's periodic, current and annual reports filed with the Securities and Exchange Commission for a discussion of the risks associated with such forward-looking statements.

I'll now turn the call over to Vince.

Executive
Vincent J. Angotti

Thank you, Raffi, and good afternoon, everyone. I hope you and your families are remaining safe and healthy, and we certainly appreciate you joining our call today.

On today's call, we'll describe the progress we've made toward achieving our strategic objectives of: one, advancing the use of DSUVIA throughout the Department of Defense; two, expanding our business in large customer channels through partnerships; three, dedicating our internal sales team to the hospital and ambulatory surgery center settings; and four, in-licensing or acquiring additional products.

Objectives one and two allow for near-term growth without a significant Acelrx commercial investment. While objectives three and four will take a bit more time, but are expected to have a significant return. We've made solid progress, both in the second quarter and more recently, towards achieving these strategic objectives and building our foundation for growth despite the impacts from the COVID-19 pandemic. This progress is highlighted by our successful Milestone C approval in April, that opens the door for purchases from the U.S. Army as well as our recent distribution and promotion agreement with Zimmer Biomet for DSUVIA for the management of acute pain in adults during dental and oral surgeries.

Now as mentioned on our last call, in 2Q, we received Milestone C approval with the U.S. Army, for DSUVIA placement in all of the U.S. Army sets, kits and outfits or SKOs associated with future deployments. This approval was the high case and our internal projections with preliminary expectations at initial stocking orders from the U.S. Army SKOs alone will approximate $30 million over the next three