AYTU BIOPHARMA, INC Q1 FY2026 earnings call

• ADHD portfolio net revenue was up 10% excluding prior year rebate, with 85% of branded ADHD prescriptions dispensed via RxConnect.
• EXXUA launch remains on track for end of 2025, with manufacturing, labeling, serialization, and shipment to third-party logistics provider on track; sales force training nearing completion; promotional program nearing completion; sales territory alignments refined; KOL engagement ramped up; patent for EXXUA extended to September 2030.
• Teva's delayed generic launch for Adzenys; Aytu launched its own authorized generic of Adzenys, which is off to a good start.
• FDA communication on fluoride products; Aytu's fluoride products revenue is small, and the American Dental Association supports fluoride supplementation.

Net revenue for the quarter was $13.9 million. The ADHD portfolio net revenue was $13.2 million, which was up 10% compared to the prior year period when excluding the prior year's onetime commercial rebate benefit. The pediatric portfolio net revenue was $0.7 million, down from $1.3 million in the prior year. ADHD revenue was up sequentially. The ADHD portfolio's net revenue is attributed in part to product price increases and improved gross to net, offset by a decrease in total prescriptions. The pediatric portfolio's net revenue change is due to manufacturing delays, multivitamin product returns, and deemphasis in marketing.

• EXXUA launch expected in calendar 2025 Q4 (fiscal 2026 Q2) with no significant revenue initially, ramp in March 2026 quarter, real growth in June 2026 quarter and beyond.
• Anticipate baseline operating expense level of about $10 million per quarter, with $10 million incremental investment for EXXUA launch in fiscal 2026. Breakeven at about $17.3 million net revenue per quarter all in, including EXXUA spends; cash breakeven at $16.6 million per quarter.
• 28% royalty on EXXUA, with true-up on cost of goods sold; upfront, post-launch, and milestone payments amortized as intangible asset.

• Teva's delayed generic launch for Adzenys, though Aytu believes impact on ADHD franchise will be less significant due to RxConnect platform.
• FDA actions on fluoride products, though impact on financials is small as fluoride products revenue is minimal.

Q: How significant or how many territories were affected by realignment and thoughts on incentive comp plan post EXXUA launch?

A: No more than about 1/3 of territories affected; incentive comp plan still being finalized, hyper focused on activating new psychiatrists and rewarding repeat prescribing.

Q: What have you been doing prelaunch with respect to payer engagement and expectations for coverage?

A: Light engagement with commercial payers, reluctant to contract proactively to not jeopardize best price on government side; expect better coverage for EXXUA than ADHD meds, using Auvelity as guidepost.

Q: How quickly and flexible to ramp up supply if demand greater and margin opportunity?

A: Adequate supply produced, including bulk and API, to scale as needed; margin has 28% royalty, dropping to 24% at $1.3 billion active sales, and product cost is low.