NuPathe Management Discusses Q2 2012 Results - Earnings Call Transcript

NuPathe (PATH)

Q2 2012 Earnings Call

August 14, 2012 8:30 am ET


John Woolford - Principal

Armando Anido - Chief Executive Officer and Director

Keith A. Goldan - Chief Financial Officer, Principal Accounting Officer and Vice President

Terri B. Sebree - Co-Founder and President

Gerald W. McLaughlin - Vice President of Commercial Operations


Michael W. Schmidt - Leerink Swann LLC, Research Division

William Tanner - Lazard Capital Markets LLC, Research Division

Elliot Wilbur - Needham & Company, LLC, Research Division

Annabel Samimy - Stifel, Nicolaus & Co., Inc., Research Division



Good day, ladies and gentlemen, and welcome to the NuPathe's Second Quarter 2012 Earnings Conference Call. As a reminder, today's call is being recorded. Now for opening remarks and introductions, I'll turn the call over to Mr. John Woolford. Mr. Woolford, please go ahead.

John Woolford

Thank you, operator, and good morning, everyone. With me on this morning's call are Armando Anido, Chief Executive Officer; and Keith Goldan, Vice President and Chief Financial Officer. Terri Sebree, President; and Jerry McLaughlin, Vice President of Commercial Operations, will also be joining us for the Q&A portion of the call.

We announced second quarter 2012 financial results today before the open of the U.S. financial markets. For those of you who may not have seen the release, it is available on our website at, in the Investor Relations section.

The format of today's call is as follows: Armando will begin with an overview of recent corporate highlights. Keith will then provide a summary of our financial results for the quarter, and Armando will end the prepared remarks with a brief closing, followed by a Q&A session.

Before we begin, I would like to remind you that we will make various remarks during this conference call that constitute forward-looking statements. All remarks that are not historical facts are hereby identified as forward-looking statements and include, among others, statements regarding the adequacy of the activities undertaken to address the questions contained in the FDA's complete response letter; our ability to obtain approval of our migraine patch; the potential benefits of and commercial prospects of our patch and other product candidates; the sufficiency of our cash and cash equivalents to fund debt service and interest obligations and continue operations until the end of the third quarter; the consequences of failing to obtain additional capital; our plans and objectives for future operations; and our expectations and beliefs. Forward-looking statements are subject to numerous risks, uncertainties and assumptions that could cause actual results to differ materially and adversely from those reflected in the statements, including those factors discussed under the heading of Risk Factors in our Form 10-K for the year ended December 31, 2011, which is on file with the SEC and available through the Investor Relations section of our corporate website. As a result, you should not rely on any such forward-looking statements. While the company may elect to update forward-looking statements at some point in the future, the company specifically disclaims any obligation to do so. Also, today's call may not be reproduced in any form without our expressed written consent.

I will now turn the call over to Armando Anido, Chief Executive Officer. Armando?

Armando Anido

Thank you, John. And thank you all for joining us this morning. It has certainly been an exciting few weeks for both the company and for me. Having joined NuPathe as CEO less than 3 weeks ago, I wanted to take this opportunity to convey my enthusiasm regarding both the prospects for the company and for NP101, our migraine patch. For those of you who are unfamiliar with my background, I was most recently the CEO and President of Auxilium Pharmaceuticals. There, I grew the company from a market capitalization of $200 million in 2006 to more than $900 million when I stepped down in December of 2011. This increase was driven predominantly by the growth in top line revenues from $42 million in 2005 to more than $260 million in 2011 and the successful development and approval of the company's second product. Prior to Auxilium, I was Executive Vice President of Sales and Marketing at MedImmune, where we grew revenues to more than $1.3 billion over a 6-year period. Coming to NuPathe marks my return to the migraine space. I was Vice President in Central Nervous System Marketing at Glaxo in the late 1990s, where I was responsible for the epilepsy and depression businesses, as well as the migraine franchise, including Imitrex, the most prescribed migraine medication in the world. During my tenure, this franchise, spearheaded by the rapid growth of Imitrex, approached $1 billion in annual revenue. I look forward to working in the CNS space again and leading the team at NuPathe to build a commercially successful specialty pharmaceutical company.

During my first 12 months, I have 4 key priorities that are designed to increase shareholder value: First and foremost is to secure capital. In this effort, I am, of course, working closely with our CFO, Keith Goldan. As we announced this morning, we amended our credit facility to reduce the amount of unrestricted cash that we are required to maintain from $3 million to $1 million. With this amendment, we believe our existing cash and cash equivalents will be sufficient to fund debt service and interest obligations and continue operations until the end of the third quarter. To meet our capital needs beyond this point, we are considering multiple alternatives to ensure that we're properly capitalized to achieve our objectives.

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