Jaguar Health - Q4 2023

Transcript

Operator (participant)

Before I turn the call over to management, I'd like to remind you that management may make forward-looking statements relating to such matters as continued growth prospects for the company, uncertainties regarding market acceptance of products, the impact of competitive products and pricing, industry trends, and productive initiatives, including products in the development stage which may not achieve scientific objectives or meet stringent regulatory requirements. Forward-looking statements are subject to risk and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. These statements are based on currently available information and management's current assumptions, expectations, and projections about future events. While management believes its assumptions, expectations, and projections are reasonable in view of currently available information, you are cautioned not to place undue reliance on these forward-looking statements.

The company's actual results may differ materially from those discussed during this webcast for a variety of reasons, including those described in the forward-looking statements and risk factor sections of the company's Form 10-K for the year 2023, which was filed on April 1st, 2024, and its other filings with the SEC, which are available on the investor relations section of Jaguar's website. Except as required by law, Jaguar undertakes no obligation to update or revise any forward-looking statements contained in this presentation to reflect new information, future events, or otherwise. Additionally, please note the company supplements its condensed consolidated financial statements presented on a GAAP basis by providing non-GAAP EBITDA and non-GAAP recurring EBITDA. Jaguar believes that the disclosure items of these non-GAAP measures provide investors with additional information that reflects the basis upon which company management assesses and operates the business.

These non-GAAP financial measures should be viewed in isolation or as substitutes for GAAP net sales and GAAP net loss and are not substitutes for or superior to measures of financial performance in conformity with GAAP. Today's conference is being recorded. At this time, it's my pleasure to turn the call over to Lisa Conte, Jaguar Health Founder, President, and Chief Executive Officer. Lisa, the floor is yours. We'll now hear from.

Lisa Conte (CEO)

Thank you, Massimo, for those amazing statements and amazing contribution. Again, we're so grateful to have him involved already making a very, very important difference in getting products to patients. I have an echo there. And fulfilling the mission of Jaguar and crofelemer. Carol, I'll now turn it over to you to talk about the financial highlights from the fourth quarter and in association with our 10-K filing today.

Carol Lizak (CFO)

Well, thank you, Lisa, and thank you all for joining our webcast today. I'll begin my review of our financials for the fourth quarter of 2023. Prescription product net revenue was approximately $9.7 million in the year 2023, representing a decrease of approximately 18% over the combined prescription product net revenue in the year 2022, which totaled approximately $11.9 million. The combined prescription net revenue was approximately $2.3 million in the fourth quarter of 2023, representing a decrease of 18% over the combined prescription net revenue in the third quarter of 2023, which totaled approximately $2.8 million and a decrease of approximately 30% over the combined prescription net revenue in the fourth quarter of 2022, which totaled approximately $3.3 million. Mytesi total prescription volume decreased by about 4% in the year 2023 over 2022.

Mytesi total prescription volume increased slightly by approximately 1% in the fourth quarter of 2023 compared to the third quarter of 2023 and decreased by approximately 4% in the fourth quarter of 2023 over the fourth quarter of 2022. Prescription volume differs from invoice sales volume, which reflects, among other factors, varying buying patterns among specialty pharmacies in the closed network as they manage their inventory levels. Loss from operations decreased by $100,000 from $34.4 million in 2022 to $34.3 million in 2023, which included an impairment loss on intangible assets of about $400,000. Non-GAAP recurring EBITDA for 2023 and 2022 were a net loss of $34.5 million and $27.4 million, respectively. Net loss attributable to common shareholders decreased by approximately $6.2 million in 2023 from $47.5 million in 2022 to $41.3 million in 2023. That concludes my recap of high-level financials for the fourth quarter of 2023.

I will now hand the discussion back to Lisa Conte.

Lisa Conte (CEO)

Thank you, Carol. All right, I'd like to bring this call to a conclusion that just, again, reiterating Jaguar, the family of companies, Napo, we are highly energized about our important and near-term initiatives. Thank you all for joining. Thank you for support of our mission to support the quality of life, the dignity, the treatment outcomes of people in need around the world, and in particular, our focus right now on cancer therapy-associated side effects. We're going to end our webcast at this time, and we have one last video that we're going to play for you, the video of the Jaguar team members speaking about what cancer-supportive care means to them. And again, there will be a launch of multiple digital channels, and we look forward to having an interactive conversation with those dealing with this topic. Thank you all very much.