Aytu Biopharma (AYTU) Maxim Group’s 2024 Healthcare Virtual Summit summary

Company overview and recent performance

• Commercial stage pharma company focused on branded ADHD products, with revenues over $65 million and EBITDA above $10 million in the last year.

• Main products include Adzenys and Cotempla for ADHD, supported by a nationwide sales force and the proprietary RxConnect platform.

• Pediatric product line and multivitamins are regaining momentum after previous declines.

• Recent expansion outside the U.S. through licensing deals, including Israel and Canada.

• Significant reduction in operating expenses, down over 30% from 2022 to $52 million.

Market dynamics and supply chain management

• ADHD market is large, with over 80 million prescriptions and $12 billion in annual sales.

• Stimulant shortages have normalized, but intermittent disruptions persist; company has never experienced a shortage for its brands.

• Strong supply chain management and direct engagement with DEA and FDA ensure consistent API quota.

• Small market share allows nimble response to quota changes and production adjustments.

• Maintains highest safety stock levels in company history.

Differentiation and growth strategy

• Consistency and simplicity in branded products and service are key differentiators.

• RxConnect platform guarantees predictable copays (no more than $50/month) and reliable access for patients and physicians.

• Nearly 90% of prescriptions filled through RxConnect partner pharmacies, providing high control and insulation from generic competition.

• Focus on expanding payer coverage and promotional footprint for pediatric products, resulting in over 130% increase in unit shipments since fiscal year-end.

• Actively seeking new branded prescription assets to diversify and grow the portfolio.