ARS Pharmaceuticals, Inc. Q4 FY2025 earnings call

2025 was ARS's first full year as a commercial company. NEFI is the only FDA - approved needle - free treatment for type 1 allergic reactions. The commercial team discussed execution details. Growth was affected by market structure factors such as refill dominance, electronic prescribing patterns, etc. In 2026, plans include expanding the sales force from 106 to 150, realigning territories, strengthening virtual and digital strategy, and focusing on access (expanding coverage, working on Medicaid), adoption (deepening prescriber base engagement), and advancement (international regulatory progress, pipeline advancement for chronic spontaneous urticaria).

For 2025, ARS generated $72.2 million in net product revenue. Total revenue was $84.3 million, with net product revenue making up the majority at $72.2 million, followed by $9.7 million from collaboration agreements and $2.4 million from supply revenue from international partners.

Beginning in the second quarter of 2026, the sales force expansion will be funded by reallocating existing commercial resources and will not increase SG&A expense in 2026. DTC spend in 2026 is expected to be very similar to that in 2025, around $100 million for DTC and direct - to - healthcare provider advertising.

Market structure factors like refill dominance, electronic prescribing patterns, prior authorization requirements can affect growth. The administrative burden of prior authorization requirements in high - volume categories can dampen prescribing momentum.

Q: How are you thinking about inventory dynamics in 1Q so far and into the 2Q back to school ramp?

A: We watch days on hand closely. Right now in 1Q, it's as expected for managing days on hand. As we get into June, July, August, September, we'll watch it closely.

Q: How are you looking at direct - to - consumer spend in 2026?

A: Expect direct - to - consumer spend in 2026 to be very similar to what we spent in 2025, around $100 million between direct - to - consumer and direct - to - healthcare provider advertising.

Q: Can you give us a little bit more color on what you're seeing on the contribution from the GetNefi program? And then also, how are you thinking about timing on extending unrestricted access?

A: First, on GetNefi.com, we're seeing a little over 10% of our prescriptions coming through. We think the program is growing well. On extending unrestricted access, we believe heading into the summer we'll have a fairly substantial expansion of our coverage, with Caremark putting it on formulary on July 1st and working heavily on Medicaid coverage.

Q: Hey, guys. I'd be interested on the sales force. You said the sort of expansion there is funded by reallocation. You mentioned a couple of points, but would appreciate any more detail you can give on kind of where that funding is coming from and what is, I guess, being deprioritized to fund the sales force?

A: We looked across the entire commercial budget. We're taking down things like some large conferences, some regional conferences, and optimizing spend from a media perspective. Also, a very small portion from monies the representatives use in offices.

Q: Can you talk more about what you're seeing from the direct - to - consumer campaign? I mean, I know you said you're seeing good awareness increases, but are there any other signs beyond awareness that that's sort of having an effect or maybe even driving behavior, appreciating it's probably a bit early still to be seeing a meaningful shift in behavior?

A: We do see an impact. We can track back patients' behavior when they watch commercials, going on the website and getting the prescription. Also, the recall of the advertisement is in the mid to upper 50s, which is strong and exceeds industry norms. The feedback from surveys shows the messages are resonating.

Q: I wanted to touch on the refill rates. You know, how should we be thinking about the timing and cadence of those refills, you know, and how it converts to revenue through 2026? And, you know, what do you anticipate the proportion of new scripts versus refills being by year end?

A: Mostly at this stage, refills are from patients who just want more NEFI or have used the product and want to replace it. We don't expect to see refill dynamics start from expiration until the end of 2026. Right now, the vast majority of prescriptions are new scripts. In the second half of 2026, we'll see more refill impact. From survey data, about 75% of prescriptions are from patients with a needle injector, and 25% from other audiences.

Q: With the new advertising campaign that you launched in January, how should we be thinking about SG&A spend like throughout the rest of the year and the cadence?

A: We basically gave a little bit of guidance on that already. I think it will still be consistent. The new campaign is changing the messaging and creative part, but we're not anticipating any change in the spend.