AGRX - This Biotech Company is Pursuing Positive Cash Flow In 2023
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Biotech company Agile Therapeutics Inc. (NASDAQ: AGRX) began selling itscontraceptive patch in 2021, and the company is pursuing positive cashflow by the end of 2023.
The Princeton, New Jersey-based company’s Twirla patch giveswomen the choice to not take a birth control pill every day. Instead,women can apply the patch weekly on their buttocks, lower abdomen, orupper torso, but not their breasts. About 80% choose to adhere it totheir buttocks or lower abdomen, according to the company.
Additionally, Twirla isthe first and only birth control patch that delivers a low dose ofestrogen, which puts it in line with many daily low-dose birth controlpills.
“We thinkthis product can become a market leader,” Agile CEO Al Altomari saidduring his RHK Disruptive Growth Conference presentation on Dec.5.
Based onAgile’s third-quarter financial results, Twirla may be a viablealternative to other methods of contraception.
Between the second andthird quarters:
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Net revenue grew 43%, from$2.1 million in the second quarter to $3 million in the thirdquarter.
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Non-GAAP operationalexpenditures (OPEX) decreased by 19%.
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Twirla factory sales increased by54%.
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The company had $6.1million cash on hand as of Sept. 30.
“Based on performanceso far in the fourth quarter, Agile believes revenue will continue togrow and OPEX will continue to be managed at a responsible level,”Altomari said.
“We are on a really great growth spurt right now,” Altomarisaid. “That third quarter was not a fluke. We’re not going back.We expect both the retail and non-retail side to grow.”
If Agile can continue toaccelerate revenue growth and maintain OPEX consistent with the pasttwo quarters, the company can potentially begin to generate positivecash flow by the end of 2023. Agile has also expressed a desire toacquire or license another commercial women’s health product, whichcould potentially accelerate the timeline to generating positive cashflow.
The Foodand Drug Administration (FDA) approved Twirla in 2020, and Agile beganselling it in 2021. Most of the company’s sales are throughretailers such as CVS Health Corp. (NYSE: CVS), and it’sworking on increasing its non-retail partnerships with organizationssuch as Planned Parenthood in the coming years.
Reaching ItsAudience
Agilehas partnered with Afaxys Inc. to help it get Twirla into college anduniversity health centers in addition to Planned Parenthood clinicsacross the United States.
On the retail side, it’s working with the telehealth platformNurx to make Twirla available to its patients. Many women in Agile’starget market — women ages 18 to 24 — get their prescriptionsthrough telehealth platforms. Nurx medical providers have prescribedcontraception to more than 1 million women.
“Young women typicallydon’t want to spend time going to see doctors or to the pharmacy sowe prioritized expanding our footprint in telehealth,” Altomarisaid.
Twirla’sconnected TV (CTV) commercial is airing in five key states —California, Florida, Texas, New York, and Illinois — where 45% ofwomen in its target demographic live.
“We have an approved product that is growing and generatingrevenue in a multi-billion dollar market,” Altomari said. “Our jobnow is to continue growing Twirla, achieve positive cash flow, anddeliver shareholder value.”
Agile Therapeutics is awomen's healthcare company dedicated to fulfilling the unmethealth needs of today’s women. Our product and product candidatesare designed to provide women with contraceptive options that offerfreedom from taking a daily pill, without committing to alonger-acting method. Our initial product, Twirla®, (levonorgestreland ethinyl estradiol), a transdermal system, is a non-dailyprescription contraceptive. Twirla is based on our proprietarytransdermal patch technology, called Skinfusion®, which is designedto allow drug delivery through the skin.
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Contact Details
Matt Riley - Head ofInvestor Relations & Corporate Communications
CompanyWebsite
https://agiletherapeutics.com/
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