Aytu BioScience (AYTU) Stock: Posts Record Monthly Sales For Its TRT Product, Natesto®

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Aytu BioScience on Tuesday reported record sales for Natesto®, the company’s FDA- approved testosterone replacement therapy product. Sales for October advance the record-breaking drive for the treatment, with sequential growth for Natesto® now bordering on 300% growth since March of 2017. New prescriptions also hit record highs for the month, with total prescribers now standing at approximately 407, representing an increase of more than 17% over September totals and roughly 42% higher since the first quarter of the fiscal year 2017.

The October report marks the seventh consecutive month of gains for both product sales and new prescriber growth and marks the sixth straight period of record-breaking sales for Natesto®.

Growth Spikes For Natesto®

AYTU reported total prescriptions of 2,263 for the three month period ending October 2017, signaling an increase of more than 35% over the period ending July 2017. Additionally, the number of new prescribers, a gauge of market adoption rose by over 25% for the same reporting period.

Josh Disbrow, CEO of Aytu BioScience commented on the growth by stating, “Aytu is continuing to drive adoption of Natesto® at an accelerated rate, and the Company is pleased with the ongoing positive reception by physicians and patients. The combination of a highly differentiated TRT product profile and our sales force becoming increasingly proficient has resulted in all-time highs for Natesto® regarding both prescription levels and prescribers. We remain enthusiastic about the uptake of Natesto®, particularly the large increase over these past three months, and we remain on track to achieve revenue break-even in the quarters ahead based on our forecasted sales growth.”

Signals Of Strong Momentum

Natesto® is signaling that the future looks bright as the product is gaining more adoption in the market, benefiting from a sales force that is educating both patient and prescriber of the safety and efficacy benefits of Natesto®. Notably, Natesto® remains the only FDA-approved testosterone replacement therapy product on the market that is not mandated by the FDA to affix the most severe of warnings, the Black Box warning, to its label. Not only that, in extensive clinical studies Natesto® is proven to be as good or better than competing products and at the same time is not associated with promoting severe side effects. Serious drawbacks to competing products, like Androgel®, Axiron®, and Fortesta® have been shown to cause heightened risk of stroke, shrinkage of testicles, and the need for the user to quarantine themselves during the application process to avoid accidental transfer of testosterone to women and children.

Natesto® has another prime advantage over competing products by being the only nasally administered three times daily dosing treatment, providing both discreet and convenient daily dosing management. Natesto® also requires no special diet, has not demonstrated a risk of heightening hematocrit levels in the user and is not shown to have any effect on either LH or FSH hormone levels in the body.

Extrapolating the reported numbers, AYTU may be expected to post revenue of roughly $1,500,000 per quarter at current prescription levels and market pricing, excluding current one-time promotional discounts for new users. However, based on the growth trend for Natesto® it is likely that additional sales and prescriber gains will continue, justifying an adjustment higher to forecasted revenues.

Capitalizing On An AYTU Opportunity

With more than $7 million in cash as of the last quarterly filing and an outstanding share count of fewer than five million shares, the company is well positioned to capitalize on the revenue growth which is expected to generate income that is expected to lead AYTU toward cash-flow breakeven or EPS status within the next twelve to sixteen months. For investors, an opportunity may exist to capitalize on both near and long-term opportunity, and AYTU may provide an attractive entry point at these levels. Now that AYTU is approaching a level that may lead toward a substantially lower cash-burn rate for regular operations, the possibilities are high that AYTU will correct to significantly higher and more peer comparative market values.

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