AYTU

Exua Commercial Launch

• Exua is the first FDA-approved selective 5-HT1A receptor agonist for adult major depressive disorder (MDD), with a formal launch phase in Q3 FY2026. Full deployment of 40+ sales representatives was completed in late February/early March 2026, so Q3 only included a partial quarter of full sales support.
• Early launch metrics are highly encouraging: over 1,300 prescriptions written in Q3, growing sequentially from 200 in January to 400 in February to over 700 in March. April prescriptions reached 920 (26% month-over-month growth), with 1,300 units shipped (51% month-over-month growth). More than 450 unique prescribers have written prescriptions, equal to 10%-13% of the 3,500-4,000 targeted initial prescriber universe, with prescriptions reported across 41-42 states.
• The RxConnect access platform is a core launch pillar, removing access friction by offering commercially insured patients a free 14-day titration pack and guaranteed access during early treatment, aligning commercial operations with clinical needs for MDD.
• Early clinical feedback is strongly positive, with many patients who failed existing antidepressants reporting meaningful improvements, especially in reducing sexual side effects common to standard MDD treatments. Early refill and titration-to-full-therapy conversion rates are solid, demonstrating patients are staying on treatment.

Legacy Business Operations

• The ADHD portfolio remains profitable and durable despite reduced promotional focus. Generic competition for Xenis has only captured 14% market share after four months, with most erosion occurring outside the protected RxConnect ecosystem, which is performing as designed.
• The small pediatric portfolio continues to generate durable profitable cash flow to support Exua investment.

Financial Performance

• Gross profit margin was 61% for the quarter; excluding a $700,000 inventory write-down related to the Adzenis brand transition, adjusted gross margin was 67%. Exua is expected to reach ~69% gross contribution margin at scale, after accounting for a 28% royalty and cost of goods.
• Operating expenses (excluding intangible amortization) were $10.9 million, up from $9.5 million year-over-year, driven by planned Exua launch investments, partially offset by operational efficiency gains. The quarter reported a net loss of $5.6 million ($0.53 basic loss per share), compared to net income of $4 million ($0.65 basic earnings per share) in the prior year. Adjusted EBITDA was -$2.8 million, compared to +$3.9 million year-over-year, reflecting planned Exua launch investment.
• Cash and cash equivalents totaled $26.7 million as of March 31, 2026. Recent warrant amendments reduced non-cash earnings volatility from derivative liability mark-to-market changes and increased stockholders' equity by $26.4 million.

• No formal full-year guidance was issued on the call, but the prior long-term financial framework remains in place: the company expects to achieve mid-to-high 60% gross margins over time, maintain a disciplined operating expense base, and reach near-term profitability as Exua revenue scales on top of the existing business platform.
• Planned Q4 FY2026 spending increases: sales and marketing expense will rise by $1-$2 million to support the launch of new digital promotional campaigns (paid search, programmatic display, social media). General and administrative expense will increase by $200,000-$300,000 to fund expanded speaker programs, medical education, and conference activity.
• Longer-term ongoing quarterly spending targets: sales and marketing is expected to range from $6-$7 million per quarter, and G&A is expected to range from $5-$5.3 million per quarter, after the Q4 incremental investments are implemented.
• Management noted that early Exua net selling prices and reimbursement rates are currently above internal budget, but emphasized that early launch dynamics are still settling and avoided updating long-term assumptions at this early stage.

Total net revenue for Q3 FY2026 was $12.4 million, a 33% year-over-year decrease from $18.5 million in the prior year period.

1. Exua: Contributed $2.4 million in net revenue, equal to 19.35% of total Q3 net revenue. 3,335 gross units were sold during the quarter, with 1,807 30-count full prescription units and 1,528 titration units.
2. ADHD Portfolio: Generated $9.1 million in net revenue, equal to 73.39% of total Q3 net revenue. This represents a 40.9% year-over-year decrease from $15.4 million in the prior year period, driven by strategic reallocation of sales focus to Exua and generic competition for Xenis.
3. Pediatric Portfolio: Generated $0.9 million in net revenue, equal to 7.26% of total Q3 net revenue. This represents a 70.97% year-over-year decrease from $3.1 million in the prior year period, impacted by unfavorable payer mix, higher rebates, and increased product returns.

• Early launch data is limited, and normal variability in demand, payer access, prescribing patterns, and refill dynamics is expected as the launch matures; management cautioned against over-extrapolating early results.
• Gross-to-net adjustments for Exua are still developing as payer mix, patient access program utilization, and pharmacy ordering patterns mature, so net revenue may not track prescription growth one-to-one in the early launch period.
• Legacy portfolio revenue is declining as commercial focus is shifted to Exua, and generic competition continues to erode some legacy ADHD revenue.

Q: An analyst estimated ~$1.5 million of Exua's Q3 revenue came from channel stocking, and asked if that assumption was accurate. He also asked for physician feedback on Exua's side effect profile (weight gain and sexual side effects), and asked how much prescribing is coming from non-targeted prescribers the sales team has not yet called on. / A: The analyst's stocking revenue estimate was confirmed as accurate. For weight gain, management noted it is too early in the launch to see meaningful long-term weight effects, and no unexpected signals have been observed to date. For sexual side effects, management reported extremely positive anecdotal feedback, with many patients who experienced debilitating side effects from existing antidepressants reporting full restoration of function after switching to Exua. Prescribing from untargeted, non-called-on prescribers has been highly encouraging: Exua has been prescribed in 41-42 states, many where the sales team has no physical presence, with significant unprompted demand from prescribers in untargeted geographies.\n\nQ: An analyst asked for details on prior authorization (PA) approval rates for Exua reimbursement across different payer types. / A: For Medicaid/Medicare, PA processes are proceeding smoothly as expected, with approval aligned with existing formularies that already allow new non-preferred antidepressant access after PA, and waiver rules for psychiatrists are working as expected in states that offer them. For commercial payers, over 70% of PA requests through the RxConnect network are approved on the first pass, and overall approval rates are improving month-over-month. Early aggregate net selling prices across all payers are materially higher than management's initial budget, though the company cautioned against extrapolating this early trend long-term.\n\nQ: An analyst asked what line of therapy Exua is typically being prescribed for, early in the launch. / A: Use is heterogeneous, ranging from second-line to very late-line therapy for patients who have failed all existing treatments. Over 60% of Exua use is for switched patients, meaning patients have already failed at least one prior antidepressant; management estimates the average patient is currently between third-line and fifth-line use. Encouragingly, some prescribers are already using Exua as second-line therapy for patients who experience side effects on first-line treatments, which is earlier than management initially expected.\n\nQ: An analyst asked about prescription/refill timing and asked if management is satisfied with early refill rates, and confirmed the company's plan for geographic expansion. / A: Exua therapy starts with a 14-day titration pack, followed by a 30-day supply of the maintenance dose, after which patients typically receive 90-day prescriptions with periodic physician check-ins. Early conversion rates from titration packs to maintenance refills are very solid, and management is pleased with early refill activity, though it is too early to estimate long-term annual retention rates. The company originally planned to target large coastal metro markets first, but is now considering expanding into smaller, untargeted markets faster than initially planned, driven by unexpected early unprompted demand in these geographies, with expansion remaining disciplined and cost-efficient.