ARS Pharmaceuticals, Inc. Q3 FY2025 earnings call

• Nephi's U.S. net product revenue grew to $31.3 million in Q3, a 2.5-fold increase from prior quarter, exceeding consensus. • Real-world treatment outcomes from Nephi program published, showing 9 out of 10 anaphylaxis patients effectively treated with single dose. • IQVIA data not fully accurate as it excludes certain channels like retail, mail order, specialty pharma, and institutional bulk purchases. • Back-to-school seasonality led to temporary pause in market share growth, but resumed in Q4. • Launched Get Nephi On Us program to simplify access, with virtual prescriber interaction and zero co-pay for many insured patients. • Global expansion planned with launches in Japan, Canada, China; YERNEPI launched in Germany with strong market share capture. • Phase 2b urticaria trial ongoing, with top-line data expected in 2026. • Secured $250 million term loan facility, drew $100 million, ending Q3 with $288 million in cash, etc.

The main product segment is Nephi. U.S. net product revenue for Nephi in Q3 was $31.3 million, representing a 2.5-fold increase from the prior quarter. This accounts for a significant portion of the total revenue. Supply revenue was $1.1 million, and royalties from ALK related to YERNEPI in Germany were $100,000. The $31.3 million in U.S. net product revenue includes traditional retail pharmacy prescriptions, institutional sales to universities/colleges, and retail orders from clinics/hospital networks.

• Q4 sales expected to decrease from Q3 due to epinephrine market seasonality and holidays. • Anticipate return to quarter-over-quarter growth in 2026 as market share and prescription volumes rise. • Financing will be used for expanding market, improving adherence/refill rates, reengaging lapsed patients, and activating untreated patients.

• IQVIA data not fully accurate and reliable for measuring Nephi's true performance. • Back-to-school seasonality caused HCPs to have less time per appointment, affecting market share growth. • Payers may have varying considerations in deciding coverage, including managing costs and revenue, which could impact adoption and market penetration.

Q: Can you elaborate on institutional sales?

A: Institutional sales are inconsistent and not yet at a point to provide detailed guidance; shifting attention to market directly to buyers and providing incentives.

Q: How are payers deciding on coverage for Nephi?

A: Payers consider market growth, medical value, revenue generation, and cost management; working with payers to address these factors.

Q: Impact of virtual program on next several months?

A: Expected to have meaningful impact as it saves HCP time and provides quick access for patients; positive response from doctors and patients seen.