Transcript: Aytu BioPharma Q4 2026 Earnings Conference Call

On Tuesday, Aytu BioPharma (NASDAQ: AYTU ) discussed fourth-quarter financial results during its earnings call. The full transcript is provided below. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

View the webcast at Summary Aytu BioPharma reported positive adjusted EBITDA for fiscal 2026, driven by the strong performance of EXXUA and the ADHD business. 6 million to fiscal 2026, with increasing prescriptions and physician adoption. 4 million in Q4 net revenue, aided by better gross-to-net realization and limited promotional spending. The company plans to invest $49 to $54 million in operating expenses for fiscal 2027, focusing on expanding salesforce coverage and marketing for EXXUA.

Management expressed confidence in EXXUA's potential as a major growth driver, with strategic investments planned to capitalize on prescriber and patient feedback. Full Transcript OPERATOR Greetings. Welcome to the Aytu BioPharma fiscal 2026 full-year and Q4 earnings call. At this time, all participants are in a listen-only mode.

A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue.

You may press star two if you would like to remove your question from the queue. Please note this conference is being recorded. I will now turn the conference over to your host, Robert Bloom with Lytham Partners. You may begin.

Robert Bloom, Lytham Partners All right, thank you, and good afternoon, everyone. As the operator indicated, during today's call we will be discussing Aytu BioPharma's fiscal 2026 fourth quarter and full-year operating and financial results for the period ended June 30, 2026. Joining us on today's call is Aytu's Chief Executive Officer, Josh Disbrow, and Ryan Selhorn, the company's Chief Financial Officer. At the conclusion of today's prepared remarks, we will open the call for a question-and-answer session.

I'd like to remind everyone that today's call is being recorded. A replay of today's call will be available by using the telephone numbers and conference ID provided in the press release issued earlier today or by utilizing the link on the company's website under Events and Presentations. Finally, I'd also like to call to your attention the customary safe harbor disclosure regarding forward-looking information. The conference call today will contain certain forward-looking statements, including statements regarding the goals, strategies, beliefs, expectations, and future potential operating results of Aytu BioPharma.

Although management believes these statements are reasonable based on estimates, assumptions, and projections as of today, these statements are not guarantees of future performance. Time-sensitive information may no longer be accurate at the time of any telephonic or webcast replay. Actual results may differ materially as a result of risks, uncertainties, and other factors, including but not limited to the factors set forth in the company's filings with the SEC. Aytu undertakes no obligation to update or revise any of these forward-looking statements, except as required by law.

With that said, let me turn the call over to Josh Disbrow, Chief Executive Officer of Aytu BioPharma. Josh, please proceed. Josh Disbrow, Co-Founder, Chief Executive Officer, & Director Thanks, Robert, and welcome, everyone. I'm very excited about the progress we're making and the opportunity ahead for Aytu BioPharma.

We finished fiscal 2026 with an encouraging fourth quarter as EXXUA continued to build, our ADHD business performed better than anticipated, and Aytu BioPharma returned to positive adjusted EBITDA. EXXUA gives us something special to build around. It's the first and only selective serotonin 5-HT1A receptor agonist approved by the FDA for the treatment of major depressive disorder in adults. Its novel mechanism and differentiated tolerability profile address an important need in a category where many patients struggle to find a treatment that works well for them and that they can stay on.

As a reminder, the opportunity is substantial. S. prescription MDD market exceeds $22 billion. Even a modest foothold in a market of that size would be meaningful for Aytu BioPharma.

We strongly believe EXXUA has the potential to become an important treatment option and a major growth driver for our company. It's one thing to have had excitement before a launch occurs, but what makes this especially exciting is that we are now seeing that opportunity begin to take shape in clinical practice. Physicians are gaining experience, patients are continuing treatment, and our prescription base is expanding. These early results reinforce our conviction in EXXUA and give us a strong reason to keep building with the same focus on execution and financial discipline.

As we have discussed for some time, our approach to EXXUA is methodical. We are building the business with a clear focus on productivity, the return on our commercial investment, and preserving cash. As we have communicated, this was never going to be an oversized, quote, spend-at-all-cost, boom-or-bust type of launch. This quarter gives us meaningful evidence that our approach is working today.

Let me spend most of my prepared remarks discussing the EXXUA execution, including what we're seeing in the field and the decisions we are making as the launch develops. I'll also spend a little more time on ADHD because the notable durability of that business certainly deserves attention. Ryan will then cover our financial results and our fiscal 2027 outlook. 6 million.

As a reminder, our formal launch only occurred at the beginning of January and broader field deployment in late February and early March. We remain early in building physician awareness and experience with EXXUA, having only just completed our first full quarter of launch. During the June quarter, total prescriptions were 3,323, compared with 1,398 in the March quarter. The monthly progression was 973 prescriptions in April, 1,089 in May, and 1,261 in June.

As we entered fiscal '27, July increased further to 1,377. August was up at 1,408 prescriptions. Importantly, EXXUA grew from July to August despite the overall MDD market declining. That is meaningful progress as more physicians begin using EXXUA and patients move from initial treatment into refills.

One item I think is important to understand as we look at the trajectory in the early going is that we have consistently said we would manage this launch methodically, and that includes expecting a high-performing sales organization and holding that sales organization accountable for performance. Where representatives have not been performing at the high levels we need, we have made adjustments in real time. As a result, we've seen ebbs and flows in the number of sales individuals on a month-by-month basis. Importantly, several of those changes occurred during June and July, and our field force reached a low of 32 representatives in July.

That was down from 43 reps at the end of March. This was intentional as we were demanding high performance across the sales organization. Standards have been set and will be upheld, and we'll remain disciplined with our capital deployment throughout the launch. Those changes temporarily reduced our coverage while we work to fill territories and optimize the profile of our sales specialist position.

Since that low, we brought the sales force back to approximately 42 representatives, and we continue to fill open positions. We're also adjusting territory coverage based on what we're learning, adding resources where the opportunity supports them, and combining sales specialist coverage where that makes better economic sense. One of the key metrics we're watching is weekly and monthly prescriptions per sales rep, using month-end field force headcount as a directional measure. In March we had 761 prescriptions and 43 sales specialists, or about 18 prescriptions per sales rep per month.

In July we had 1,377 prescriptions and 32 representatives, or approximately 43 prescriptions per rep for the month. That's more than a twofold increase in prescriptions per rep, with total monthly prescriptions also increasing 81% over that period. We're continuing to be proactive in fine-tuning the team, but we view that as an encouraging measure of the productivity of our commercial effort. To add some additional color on rep performance, which is clearly going to be the key driver of our success with EXXUA, consider some other numbers.

If you look at our current active sales specialists, the top 10 are averaging almost 15 prescriptions per week. The top five are averaging 18 and a half prescriptions per week. But importantly, as I share these numbers, I should note that we are not top-heavy with respect to the percentage of territories driving the majority of the actual prescriptions. In fact, 24 territories, or approximately 60% of the current sales force, are driving 70% of the actual prescriptions, demonstrating very good breadth across many geographies and across many sales specialists.

So that gives us great confidence in knowing that we have a product that is being, and can be, broadly adopted and broadly sold. To see what actual weekly scripts could be in the relative near term as some of our newer sales specialists we've onboarded come up the curve, consider what a weekly run rate looks like by simply having 45 territories at the weekly script rate of the top 5 or 10 territories. By simply generating 15 prescriptions per rep per week, that gets us to 675 TRXs per week. And at the current selling price, that's already a $26 million annual run rate, if you were to simply dollarize TRXs for ease of math.

Taking that weekly rep average to 20 TRXs per week — which, again, five territories are already averaging that, plus or minus — then you're looking at 900 TRXs weekly, or about a $35 million run rate annually. And then at 30 TRXs per rep per week — again, a weekly number achieved by multiple reps already — that takes the annual run rate to over $50 million, again by simply dollarizing prescriptions. So with the refined sales team that will be getting us to 40-plus, and more likely closer to 45 territories, you can see why we're excited about a significant lift of script levels in the relative near term.

And speaking of near term — and this is happening really before any of the newly hired reps are even up the curve — we're seeing EXXUA take that next leg up. For the week ending September 4th, just before Labor Day, we generated 394 prescriptions, a significant jump from July and August levels. Again, when the newly onboarded folks get their feet under them, we're excited to see what the script trends look like. Growing refill activity is also part of the picture.

Alongside the work our representatives are doing to develop prescribing relationships, we look at this measure together with total prescriptions, new and repeat prescribers, and the economics of the business as we decide where to put the next dollar of investment. This is what we mean by a methodical launch. We are using the data to make staffing and spending decisions and learning from the territories that are performing well and addressing the ones that need improvement. We believe that's how we build a commercial organization that can support EXXUA over time while maintaining the financial discipline we've worked hard to establish.

Perhaps most importantly, the feedback from physicians who are gaining experience with EXXUA remains highly encouraging. In our latest launch-to-date update, nearly 1,200 unique prescribers had written EXXUA, and nearly 2,500 unique patients had received it. We're seeing repeat prescribing from physicians who are developing a broader base of experience with the product, along with encouraging feedback on patient response and on patient tolerability. At the same time, many physicians in that prescriber base have only used EXXUA with one or two patients.

Of course, we know it takes time for a physician to identify appropriate patients and then assess their experience, and then ultimately become comfortable using a new medicine. More broadly, that process develops over time. Our opportunity is to deepen utilization among those early adopters while continuing to introduce EXXUA to additional prescribers. We remain very encouraged by the response from physicians who are moving beyond their first few patients and continuing to prescribe.

And it's precisely those prescribers who have written EXXUA for a handful or more patients that are most impressed with the results. We continue to hear that across the country, and of course that gives us great confidence in the product. Access also continues to support the launch. Reimbursement approval rates remain encouraging, and we are seeing a growing contribution from Medicaid and Medicare alongside the commercial business.

RX Connect remains an important part of helping patients initiate and continue treatment, and helping prescribers and their practices navigate access. Ryan will touch on this a bit, but gross-to-nets are significantly higher than our initial expectations. As we move into fiscal '27, we will continue investing in EXXUA sales and marketing and in the medical and scientific education that supports physician understanding of the product. We will continue assessing the results and directing resources toward the activities that are producing the strongest return.

Our fourth quarter results are an encouraging indication of what this model can deliver. We grew EXXUA revenue, benefited from the continued contribution of our legacy products, and generated positive EBITDA at the company level while keeping cash relatively stable. Profitability and cash preservation remain central to how we're managing the launch. Of course, there will continue to be variability in quarterly results as we invest and as the business moves through its normal seasonal patterns.

Again, Ryan will walk through that in more detail. Our objective, however, remains to build a durable, profitable EXXUA business on the platform we already have, with commercial spending tied to strong ROIs. Turning to ADHD, the portfolio performed better than anticipated in the fourth quarter. 1 million in the fourth quarter prior year.

For Adzenys, our brand and authorized generic together continue to retain approximately 80% of the prescriptions in the market for Adzenys and its generic equivalent. We believe this speaks to the durability of the franchise and the value of the RX Connect model, even with substantially less commercial support behind the brand. We also have our Cotempla authorized generic in the market, and it's gaining prescriptions week over week. As of today, Teva has not yet launched its generic version of Cotempla following the July 1 date permitted under our settlement agreement with Teva, presenting potential upside to our base-case assumptions around Cotempla's revenue run rate.

As always, ADHD has normal seasonality, with the earlier part of the first half of our fiscal year typically softer due to kids being out of school. The fourth quarter performance, however, reinforces our confidence in the value this portfolio brings to Aytu BioPharma. It remains an important source of profit and cash to support our investment in EXXUA. 0 million in the prior-year quarter.

These are mature products that we continue to service efficiently, and while smaller, Pediatrics does remain a useful and durable contributor to the legacy business and the financial foundation supporting EXXUA. Overall, we are highly encouraged by the progress in EXXUA and the durability of our legacy business. Our focus remains on execution, profitability, and preserving cash. With that, let me turn the call over to Ryan for financial results and fiscal 2027 outlook.

Ryan Selhorn, Chief Financial Officer Thank you, Josh. Let's jump right into it. I'll primarily cover our fourth quarter results and then spend a few minutes on our outlook and how we expect fiscal 2027 to unfold. Let's start on the revenue line.

1 million in the prior-year period, an increase of 6%. 4 million in the third quarter with sequential increase across portfolios. 6 million. 4 million in the third quarter.

We are encouraged by that progression as we build the prescriber base and expand our commercial activity. The recent prescription data Josh discussed show continued progress with 3,300 scripts written during the fourth quarter. Remember, however, that prescriptions and unit shipments are different measures. During the fourth quarter we shipped 4,599 units.

Revenue reflects product sales into the channel net of estimated rebates, discounts, and other adjustments and will not necessarily move in lockstep with prescriptions in any given period.