Question · Q1 2019
Laura Engel from Stonegate Capital Partners asked about the impact of the ongoing Invekra deal on margins, margin expectations for the rest of the fiscal year, and the long-term potential and associated costs of the new mail-order program.
Answer
CEO James Schutz explained that while Latin America margins are in the mid-high teens, overall margins are expected to rise to the high 60% to low 70% range as the high-margin dermatology business grows. He and CFO Robert Miller projected the mail-order channel could account for 60% of U.S. prescriptions by year-end, which would narrow the gross-to-net revenue gap by reducing rebate costs and leveraging lower service fees compared to traditional wholesalers.