Nuvo Pharmaceuticals Inc.

Adjusted total revenue was $18.2 million in Q3 2022 versus $17.1 million in Q3 2021, and $57.3 million for the first nine months of 2022 versus $51.6 million a year ago. Adjusted EBITDA was $5.7 million in Q3 2022 versus $7.0 million in the prior-year quarter, and $19.1 million for the first nine months of 2022 versus $18.8 million in the prior-year period. Miravo did not provide formal next-quarter or full-year revenue/EPS guidance on this call, but it said it expects a US$2.5 million payment to Deerfield in the coming week, manufacturing wind-down planning to conclude during the second half of 2023, and multiple Suvexx regulatory decisions in Q4 2022 and the first half of 2023.

Jesse Ledger framed the quarter around continued growth in the core promoted brands and the company’s push to broaden its portfolio through new business development and international launches. He highlighted 32% revenue growth from Blexten, Cambia and Suvexx over Q3 2021, and said Miravo’s scalable commercial infrastructure is ready for additional products. His tone was constructive but pragmatic, emphasizing that manufacturing is being wound down because the Pennsaid 2% revenue stream is gone and the business should focus on higher-margin commercial and licensing assets.

Mary-Jane Burkett said adjusted total revenue reached $18.2 million in Q3 and $57.3 million year to date, with growth in commercial products partly offset by lower licensing/royalty revenue and weaker production/service revenue. She noted adjusted EBITDA of $5.7 million in the quarter and $19.1 million year to date, with higher commercial gross profit offset by declines in licensing and production gross profit plus higher sales and marketing and G&A expenses. She also said Miravo repaid US$2.5 million of the Deerfield amortization loan in the quarter, bringing cash value of loans outstanding to US$80.6 million, with cash on hand of $31.3 million as of September 30, 2022.

The main analyst question asked whether Miravo had alternate manufacturing plans for Pennsaid 2% outside the U.S. Jesse Ledger said the company is discussing continued commercialization with partners on a country-by-country basis and likely will transfer manufacturing to a third party to keep Pennsaid and Pennsaid 2% available in some geographies, while bridging supply with a full book of orders. In response to an emailed investor question on business development, he said Miravo has several transactions in advanced discussions and that adding complementary assets is the company’s number one priority, though timing remains hard to pin down.