Sign in

You're signed outSign in or to get full access.

AP

ARS Pharmaceuticals, Inc. (SPRY)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered accelerating commercial traction: total revenue $15.72M, including $12.80M U.S. neffy net product revenue; net loss $(44.88)M, or $(0.46) EPS .
  • Commercial coverage reached 93% (57% without prior authorization) and gross-to-net retention reached steady-state ~50% (52% in Q2), setting the base for more predictable modeling; weekly neffy two-pack volume rose ~180% from end-Q1 to end-Q2 .
  • Demand catalysts in place for 2H25: national DTC campaign (launched in phases mid-May/July) lifted aided awareness from ~20% to 49%; pediatric 1 mg dose available since early May; ALK co-promote expanded reach to ~55% of epinephrine Rx base .
  • Ex-U.S. ramp progressing: EURneffy launched in Germany (June) and approved in the U.K. (July), triggering a $5M milestone (of which $2.6M recognized in Q2 revenue) .
  • S&P Global consensus for revenue/EPS was unavailable at time of analysis; estimate comparisons omitted; expect Street to revise upward neffy growth trajectory given coverage/DTC tailwinds and unit trends [GetEstimates returned no data for Q1–Q2 2025].

What Went Well and What Went Wrong

What Went Well

  • Coverage and access inflected: “93% commercial coverage…57% without prior authorization…approval rates at PBMs comparable to overall epinephrine market”; GTN reached steady-state ~50% (52% in Q2) .
  • Demand building ahead of peak season: weekly two-pack volumes +~180% from end-Q1 to end-Q2; 9,700+ HCPs have prescribed (+73% vs April), with ~70% from highest deciles .
  • Global expansion milestones: EURneffy launched in Germany (June) and approved in the U.K. (July), supporting ex-U.S. partner momentum and adding milestone revenue .

What Went Wrong

  • Heavy OpEx as company leans into launch: SG&A $54.31M in Q2 (driven by national DTC and broader commercial build); net loss widened to $(44.88)M, EPS $(0.46) .
  • One-time inventory reserve increased COGS; CFO noted it is not expected to recur (but it weighed on Q2 gross profit) .
  • Estimates transparency gap: S&P Global consensus unavailable for Q2/Q1, limiting external beat/miss framing at this stage [GetEstimates returned no data for Q1–Q2 2025].

Financial Results

MetricQ2 2024Q4 2024Q1 2025Q2 2025
Total Revenue ($M)$0.50 $86.60 $8.00 $15.72
Net Product Revenue – neffy U.S. ($M)— (no product revenue line) $6.70 $7.76 $12.80
Collaboration Revenue ($M)$0.50 $79.50 (ALK $73.5 + JP $6.0) $0.21 $2.59
Supply Revenue ($M)— $0.40 — $0.32
Net Income (Loss) ($M)$(12.52) $49.90 $(33.94) $(44.88)
EPS (basic) ($)$(0.13) $0.51 $(0.35) $(0.46)
R&D Expense ($M)$6.90 $3.00 $2.95 $4.04
SG&A Expense ($M)$8.94 $35.50 $41.10 $54.31
Cash, Cash Equivalents & ST Investments ($M)$218.70 $314.00 $275.70 $240.10

Segment revenue breakdown

Revenue Component ($M)Q4 2024Q1 2025Q2 2025
neffy U.S. Net Product$6.70 $7.76 $12.80
Collaboration$79.50 (ALK $73.5 + JP $6.0) $0.21 $2.59
Supply$0.40 — $0.32
Total$86.60 $8.00 $15.72

Commercial & launch KPIs

KPIQ1 2025Q2 2025
HCPs prescribing neffy (cumulative)>5,000 >9,700 (+73% vs April)
Commercial coverage57% (as of April) 93% (57% without PA)
PA approval rate at Zinc/Caremark segment—>80% for portion requiring PA
Weekly two-pack volume growth—~+180% from end-Q1 to end-Q2
DTC aided awareness~20% pre-campaign 49% late July
Schools in neffyinSchools>1,000 >3,200
Allergists in Experience Program~2,500 ~2,800; ~20,000 doses placed
GTN retentiontrending to ~50% steady-state ~52% in Q2; steady-state ~50% going forward
Estimated two-pack units dispensed—~35,000 two-packs (CEO estimate from net sales/GTN)

Estimates vs. actuals

  • S&P Global consensus for Q2 2025 and Q1 2025 revenue and EPS was unavailable at time of analysis; no beat/miss comparisons could be made. Values would normally be sourced from S&P Global; unavailable via tool at this time [GetEstimates for Q1–Q2 2025 returned no data].

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Commercial coverage2025“On track for >80% access by early Q3 2025” 93% coverage achieved; 57% without PA; PA approvals >80% for portion of Zinc/Caremark Raised/achieved ahead of plan
GTN retention2025Steady-state ~50% GTN expected Achieved steady-state (~52% in Q2); to remain around ~50% Achieved/maintained
DTC investment2025Broad DTC to initiate May 2025 ~$50M 2025 DTC spend; bulk recognized in SG&A 2Q–3Q Quantified/ramping
Cash runwayMulti-year“≥3 years” at YE2024 “≥3 years” as of 6/30/25 Maintained
Ex-U.S. milestones2025Expected Germany & potential U.K. launches mid-2025 (if approved) Germany launch (June) and U.K. approval (July) achieved; $5M milestone triggered ($2.6M recognized) Executed
EMA 1 mg pediatric2026Anticipated in 1H26 Unchanged; still 1H26 (would trigger $5M) Maintained
R&D – CSU (urticaria)2025–2026Phase 2b to initiate in Q2 2025; topline early 2026 Phase 2b initiated June 2025; topline 1H26 On track

Earnings Call Themes & Trends

TopicQ-2 (Q4 2024)Q-1 (Q1 2025)Current (Q2 2025)Trend
Payer accessTargets 60% by end-Q1’25; 80% by early Q3’25 57% coverage as of April 93% coverage; 57% without PA; PA approvals >80% at Zinc segment Improving
DTC strategyDTC to start May 2025 DTC launch expected May 15 Connected TV mid-May; linear TV early July; aided awareness to 49% Ramping
Pediatric 1 mgsNDA approved Mar 5; availability May 1 mg available nationwide early May Pediatric access in place; broader school use Executed/benefiting
Prescriber adoption4,000+ HCPs via BlinkRx at Q4 >5,000 HCPs have prescribed >9,700 HCPs prescribed; breadth expanding Broadening
GTN retentionSteady-state ~50% expected Trending to ~50% ~52% in Q2; steady ~50% going forward Stabilized
Ex-U.S. rolloutAnticipated DE/UK mid-2025 —DE launch (June), UK approval (July) Executed
Schools/HCP programsProgram launched; targets set >1,000 schools; ~2,500 allergists enrolled >3,200 schools; ~2,800 allergists; ~20k doses placed Expanding
R&D (CSU)P2b to start Q2’25 On-track to initiate Q2’25 Phase 2b initiated June; topline 1H26 On track

Management Commentary

  • “The second quarter marks a pivotal inflection point for neffy, highlighted by robust growth in prescriptions driven by expanding payor access and strong sales execution.” — Richard Lowenthal, CEO .
  • “93% commercial coverage…with neffy’s access and approval rates across the major PBMs consistent with the overall epinephrine market.” — Press release .
  • “Our GTN retention moved…now to the low 50% range in Q2…we expect our gross to net retention to be maintained around this level.” — Kathleen Scott, CFO .
  • “Our direct-to-consumer campaign…is gaining traction…aided awareness has increased significantly…nearly 50% of respondents recognize and recall our DTC advertisement.” — Eric Karas, CCO .

Q&A Highlights

  • Volume/units: CEO estimated ~35,000 two-pack units in Q2 based on $12.8M net sales and ~52% GTN; compared to ~19,000 in Q1, implying strong sequential growth .
  • DTC impact/timing: Expect 12–16 weeks from start (linear TV July) for full effect; early qualitative feedback positive; should support back-to-school and sustain 2H momentum .
  • Access dynamics: No “ceiling” seen at CVS/Zinc; while many members still require PA, approvals >80% and mix shifting as broader open access expands .
  • Multiple-packs behavior: More cartons per Rx than historical norms, aided by $25 single copay for multiple cartons; parents provisioning home/school/car .
  • Outlook: Management “confident” in continued q/q growth into Q3 and Q4 despite seasonality given DTC, pediatric reach, and expanded coverage .

Estimates Context

  • S&P Global (Capital IQ) consensus for Q2 2025 and Q1 2025 revenue and EPS was unavailable via our estimates tool at the time of analysis; therefore, we cannot present a beat/miss frame versus consensus for these periods. We would normally anchor to S&P Global consensus here; estimates were not returned when queried [GetEstimates for “Primary EPS Consensus Mean” and “Revenue Consensus Mean” for Q1–Q2 2025 returned no data].

Key Takeaways for Investors

  • Access inflection achieved: 93% commercial coverage with PA burden easing and approval rates >80% where PAs remain; this supports steadier GTN (~50%) and more predictable revenue modeling .
  • Demand catalysts stacked for 2H25: Pediatric 1 mg availability, ALK co-promote reach, and DTC awareness lift (to 49%) should drive continued script acceleration into and after back-to-school .
  • Execution visible in units: CEO’s ~35k two-pack unit estimate vs ~19k in Q1 underscores progressing adoption and improving breadth across prescribers and patient segments .
  • Investment phase continues: Elevated SG&A (Q2 $54.31M) aligns with ~$50M 2025 DTC program; OpEx intensity should moderate as top-line scales, but near-term losses persist .
  • Ex-U.S. milestones de-risked: Germany launch and U.K. approval delivered; additional 2025–2026 regulatory events can add milestones and validate global demand .
  • Watch list for the next print: conversion of DTC awareness to scripts (12–16 week lag), further PA removals, multi-carton behavior durability, and CSU Phase 2b progress (topline 1H26) .

Citations

  • Q2 2025 8-K Press Release and Financials:
  • Q2 2025 Earnings Call Transcript:
  • Q1 2025 8-K Press Release and Financials:
  • Q4 2024 8-K Press Release and Financials:
  • Q2 2024 8-K Financials: