Better Therapeutics, Inc.

Third-quarter operating expenses were $5.3 million, down from $7 million in Q2 2023 and $11 million in Q3 2022. R&D expense was $1.8 million versus $5.5 million a year ago, sales and marketing was $1.4 million versus $1.6 million, and G&A was $2.1 million versus $4 million. Interest expense was $500,000 versus $400,000 last year. Net loss was $5.9 million, or $0.15 per share, versus $11.4 million, or $0.48 per share, in Q3 2022. Cash and cash equivalents were $6.6 million at September 30, 2023, and $9.5 million on a pro forma basis including the October ATM. Management said the lower burn and ATM proceeds extend runway into Q1 2024. No formal revenue guidance was provided; Frank Karbe said the company expects to begin sharing revenue guidance after two to three quarters of commercial experience.

Frank Karbe emphasized that the company has reached an inflection point now that AspyreRx is commercially available and prescriptions are being written. He repeatedly framed the focus as proving commercial traction, securing payer coverage, and strengthening the balance sheet, while acknowledging the depressed stock price and shareholder frustration. His tone was cautious but optimistic, pointing to positive provider feedback, a targeted launch plan, and multiple upcoming milestones.

Mark Heinen highlighted continued expense discipline, with total operating expenses falling to $5.3 million from $7 million sequentially and $11 million year over year. He attributed the lower R&D, G&A, and overall burn to prior cost-saving initiatives and noted that cash was $6.6 million at quarter-end, rising to $9.5 million pro forma after the October ATM. He said the company’s runway extends into Q1 2024 and confirmed Hercules loan payments restarted on November 1, while adding that discussions continue about potential amendments to the loan agreement.

Analysts focused on the size of the initial sales/MSL team, where it would be deployed, and how management planned to align field coverage with payer and provider opportunities; management said the initial team is about 10 people and is being placed in priority geographies, while payer engagement is nationwide. Questions also covered price and out-of-pocket cost, with management reiterating the $750 list price for a 90-day cycle and the $65 self-pay option. On payer coverage, management said discussions are progressing through a multi-step process and that some payers are nearing final steps, supporting confidence in an initial agreement this quarter. A question on the FDA’s PDURS guidance drew a response that the rule could help differentiate products by making the benefits of combining pharmacotherapy with a PDT more visible, especially in GLP-1 therapies.