Adolor Corporation (ADLR) Q1 2010 Earnings Call Transcript April 28, 2010 8:45 am ET Executives Stephen Webster – SVP, Finance and CFO Mike Dougherty – President and CEO Eliseo Salinas – SVP, R&D and Chief Medical Officer Analysts Ling Wang – Brean Murray Jeremiah Shepard – Wedbush Presentation Operator
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Mike DoughertyThanks, Steven. Good morning everyone and thank you for joining our call today. Before we review our financial results later in this call, we'll provide a review of our progress in this first quarter of 2010, up again with the brief overview of operating performance with ENTEREG and then we'll spend the majority of the call on our research and development pipeline with Eliseo Salinas, our senior VP of research and development and I reviewing important developments from both our delta and opioid bowel dysfunction function programs. Beginning with ENTEREG, as reported early this morning, first quarter net sales at ENTEREG were $5.3 million, up from net shipments in the year ago quarter of $2 million and up just over 8% from $4.9 million in the fourth quarter of 2009. We saw increases in hospital registrations, formulary approvals and the number of reordering hospitals this past quarter as well. We estimate that ENTEREG is now on formulary at nearly 575 of the key 1400 hospital accounts that perform 80% of bowel section surgeries in the United States, an increase of approximately 75 hospitals in the first quarter. We count 550 of these hospitals now as reordering hospitals, another important metric of us, representing an increase of 50 hospitals since December 31, 2009. And finally, another 50 of these hospitals effective registration under our EASE program this quarter, brining total registrations to 925 or about two thirds of this key accounts. Most fundamentally, we continue to note repeated observations of the benefits that this first in class product provides. Both the patients in terms of decrease length of stay and the hospitals institution in terms of pharmacoeconomic benefits. With all of these, our expectations for continued growth in ENTEREG sales remain and we are reiterating the guidance first offered in late February for 2010 net sales of ENTEREG in the range of $30 to $35 million.
Turning to our development programs, the first quarter saw a continued progress in both our delta program and our opioid bowel dysfunction program. As you recall from our year end update, 2010 will be a very important time period with respect to each of these programs, the year end which we advance into proof-of-concept studies and OBD and under important Phase II proof-of-concept data in our delta program.I'll now ask Eliseo to offer more detailed update on our progress in R&D in the first quarter. Eliseo? Eliseo Salinas Thanks, Mike. As Mike mentioned, 2010 will be an important year in terms of milestone regarding our development programs. In the delta receptor agonist program, Pfizer and we recently completed enrollment in the phase IIA study of both ADL5859 and 5747 in patience with osteoarthritis of the knee. This is four-armed study, enrolled over 400 patients comparing each compound against placebo and oxycodone CR for two weeks. We were pleased with this period enrollment and the overall quality of execution of this study which is completing ahead of schedule. We anticipate sharing the results of this important trial in June or July of this year. These are significant study in result of our program and we are very excited to be in because of data. These also osteoarthritis of the knee study represented the first time that ADL for example saving has been accessed in efficacy studies and the first time we’ve conducted an efficacy study with ADL at 5A59 with specific attention paid to potential food effects and with our reformulated compound. Osteoarthritis remains an important area in need of noble approaches to pay management and an important franchise for our partner [ph], Pfizer. Positive result in this trial will represent a critical step forward for this program and importantly, a decision to move forward into phase IIB studies would result in a $15 million milestone payment from Pfizer. Read the rest of this transcript for free on seekingalpha.com