ARS Pharmaceuticals Inc (SPRY) Q1 2025 Earnings Call Highlights: Strong Launch of Neffy Amid ...

In This Article:

  • Total Revenue: $8 million for Q1 2025.

  • US Net Product Revenue for neffy: $7.8 million.

  • Collaboration Revenue: $0.2 million from ALK agreement.

  • Cost of Goods Sold: $1.1 million for Q1 2025.

  • R&D Expenses: $3 million for Q1 2025.

  • SG&A Expenses: $41.1 million for Q1 2025.

  • Planned DTC Campaign Investment: $40 million to $50 million for the remainder of 2025.

  • Projected 2025 Operating Expenses: $210 million to $220 million, excluding stock-based compensation and COGS.

  • Net Loss: $33.9 million, or $0.35 per share, for Q1 2025.

  • Cash, Cash Equivalents, and Short-term Investments: $275.7 million as of March 31, 2025.

Release Date: May 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • ARS Pharmaceuticals Inc (NASDAQ:SPRY) successfully launched neffy, the first needle-free epinephrine treatment, with $7.8 million in US net product revenue in Q1 2025.

  • The company expanded commercial insurance coverage for neffy from 27% to 57%, with ongoing payer discussions to further increase coverage.

  • Neffy 1-milligram dose was approved by the FDA for children, representing a significant portion of the pediatric market.

  • A strategic collaboration with ALK-Abello expanded ARS Pharmaceuticals Inc (NASDAQ:SPRY)'s promotional network to over 20,000 healthcare providers, including 9,000 pediatricians.

  • The company is launching a comprehensive direct-to-consumer campaign to increase patient awareness and drive prescription growth for neffy.

Negative Points

  • ARS Pharmaceuticals Inc (NASDAQ:SPRY) reported a net loss of $33.9 million for Q1 2025, indicating financial challenges despite revenue growth.

  • The cost of goods sold is expected to increase as the company uses up its zero-cost inventory.

  • Prior authorization requirements remain a barrier for some patients, with only 57% of commercial lives having access to neffy without prior authorization.

  • The company anticipates significant operating expenses of $210 million to $220 million for 2025, driven by marketing and commercialization efforts.

  • Market share for neffy is currently low at 1.3% overall, though higher among targeted high-prescribing physicians.

Q & A Highlights

Q: How much of the first-quarter sales figure is attributed to inventory, and what are your expectations for inventory contribution over the next two quarters? A: Richard Lowenthal, President and CEO, stated that the first-quarter numbers were minimally influenced by inventory. The sales were primarily from 2-milligram doses, and inventory levels are steady. They do not expect inventory to significantly impact sales in the upcoming quarters.