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Date

May 13, 2026

Call participants

  • Chief Executive Officer — Joshua R. Disbrow
  • Chief Financial Officer — Ryan J. Selhorn

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Takeaways

  • EXXUA net revenue -- $2.4 million generated in the first significant commercial launch quarter, achieved with only a partial sales force deployment.
  • EXXUA prescriptions -- Over 1,300 prescriptions written in the quarter, increasing sequentially each month from about 200 in January, 400 in February, and over 700 in March, then further accelerating to over 920 in April.
  • EXXUA unit sales -- 3,330 units sold in the quarter, comprised of 1,810 thirty-count prescription units and 1,530 titration packs.
  • EXXUA unique prescribers -- More than 450 individual prescribers during the quarter, representing early penetration of 10%-13% of the company’s 3,500-4,000 target prescriber universe.
  • ADHD portfolio net revenue -- $9.1 million for the period, down from $15.4 million in the prior year, attributed to sales force shift and generic competition.
  • Pediatrics portfolio net revenue -- $0.9 million for the quarter, compared to $3.1 million previously, impacted by higher rebates and increased returns.
  • Total net revenue -- $12.4 million for the period, reflecting a $6 million or 33% decrease year over year.
  • Gross profit margin -- 61% reported, affected by a $700,000 inventory write-down; excluding this, gross margin would have been about 67%.
  • Operating expenses (excluding amortization) -- $10.9 million this quarter versus $9.5 million previously, with the increase attributed to planned EXXUA launch spending.
  • Net loss -- $5.6 million ($0.53 loss per basic share), compared to net income of $4 million ($0.65 per basic share) in the prior year period, with the quarter including a $1.3 million noncash derivative warrant liability loss.
  • Adjusted EBITDA -- Negative $2.8 million, down from positive $3.9 million the previous year, due to launch investment and reduced legacy portfolio revenue.
  • Cash and cash equivalents -- $26.7 million on hand as of March 31, 2026, decreasing from $30 million at the prior quarter end.
  • Stockholders’ equity -- $35.1 million at quarter-end, up from $14.2 million at December 31, 2025, following a $26.4 million reduction in warrant liabilities resulting from warrant amendment.
  • Debt -- $11.4 million total debt outstanding, with $10.4 million in revolving line of credit.
  • EXXUA early access metrics -- Refills and continued titration utilization indicate patient persistence and initial adherence momentum.
  • EXXUA prescribing breadth -- Prescriptions were written in forty-one to forty-two states despite limited sales team geographic presence.
  • Payer dynamics -- "The approval rates continue to improve month on month," and "net selling price when you aggregate government and commercial are materially higher than we initially budgeted."
  • Prior authorization success -- Over 70% of commercial claims through the RxConnect network are being approved on first attempt.
  • Launch investment outlook -- Fourth quarter sales and marketing expected to increase by $1 million-$2 million, and G&A to rise by $200,000-$300,000 due to expanded promotional activity.
  • Unit economics for EXXUA -- 28% royalty rate and a 31% cost of goods sold target, aiming for a 69% gross contribution margin before certain fixed costs.
  • Unique launch strategy -- Focused on high-value prescriber targeting and channel stocking, leveraging RxConnect to ensure access and patient support programs.
  • Legacy business contribution -- ADHD and pediatrics portfolios provide ongoing cash flow to fund EXXUA commercial expansion.

Summary

EXXUA’s launch drove a transformational shift in Aytu BioPharma (AYTU 1.76%) revenue mix, accounting for $2.4 million out of $12.4 million total revenue during the period despite only partial deployment of the sales force. Management reported sequential and accelerating prescription growth each month for EXXUA, surpassing 900 prescriptions in April, while achieving early prescriber diversity and presence in more than forty U.S. states. Gross margin declined to 61% due to a $700,000 legacy product inventory write-down, with management emphasizing that the normalized margin remains near historical levels. Warrant liability resolution improved the balance sheet, boosting stockholders’ equity to $35.1 million and reducing ongoing noncash earnings volatility. Upward revision of initial net selling price assumptions for EXXUA was mentioned, alongside robust payer approval rates and continued expansion of access programs through RxConnect.

  • Channel stocking contributed materially to EXXUA revenue, as confirmed by Selhorn stating, "That is a pretty accurate calculation." in response to estimates of $1.5 million in stocking-derived revenue for the quarter.
  • Management cited that Medicaid and Medicare scripts are rising as a portion of overall prescriptions, reflecting initial uptake across payer categories.
  • CEO Disbrow highlighted, "we have had prescriptions in forty-one or forty-two states at this point," underscoring EXXUA’s reach beyond areas with direct sales presence.
  • Management explicitly noted no formal guidance was issued for the period, maintaining focus on disciplined operating expense management and mid- to high-60% long-term gross margin targets.
  • Payer access efficiencies were assisted by the RxConnect platform, which enabled high prior authorization success rates and early patient access.

Industry glossary

  • RxConnect: Aytu BioPharma’s proprietary pharmacy technology and patient access platform that supports streamlined prescription processing, prior authorization, and patient affordability programs.
  • Titration pack: A product configuration intended to facilitate gradual dose escalation when initiating therapy, frequently used for antidepressant products to limit adverse effects.
  • Channel stocking: The process of distributing inventory into wholesalers and pharmacies ahead of expected or rising demand, typically recognized as revenue upon shipment into the channel.
  • Authorized generic: An approved generic drug marketed by the brand manufacturer, often at a lower price, while maintaining identical formulation to the branded product.
  • Cost of goods sold (COGS): Direct costs attributable to production of a product sold by a company, excluding certain indirect expenses or overhead.
  • KOL (key opinion leader): Influential physician or researcher whose expertise and leadership lend credibility to product adoption and peer education.

Full Conference Call Transcript

Greg. Thank you very much, and good afternoon, everyone. As the operator indicated, during today's call, we will be discussing Aytu BioPharma's fiscal 26 third quarter operational and financial results. For the period ended 03/31/2026. Joining us on today's call is Aytu's chief executive officer, Joshua R. Disbrow and Ryan J. Selhorn, the company's chief financial officer. At the conclusion of today's prepared remarks, we will open the call for a question and answer session. I would like to remind everyone that today's call is being recorded.

A replay of today's call will be available by using the telephone numbers and conference ID provided in the press release issued earlier today or by utilizing the link on the company's website under events and presentations. Finally, I would also like to call to your attention the customary safe harbor disclosure regarding forward looking information. The conference call today will contain certain forward looking statements including statements regarding the goals, strategies, beliefs, expectations, and future potential operating results of Aytu BioPharma. Although management believes these statements are reasonable, based on estimates, assumptions, and projections as of today, these statements are not guarantees of future performance.

Time sensitive information may no longer be accurate at the time of any telephonic or webcast replay. Actual results may differ materially as a result of risks uncertainties, and other factors, including, but not limited to, the factors set forth in the company's filings with the SEC. A 2 undertakes no obligation to update or revise any of these forward looking statements except as required by law.

Joshua R. Disbrow: With that said, let me turn the call over to Joshua R. Disbrow, Chief Executive Officer of Aytu BioPharma. Joshua, please proceed. Thanks, Robert, and welcome, everyone. Very pleased to be speaking with you today following what has been an exciting first partial quarter of commercial launch activity for EXXUA. As we have discussed, EXXUA represents a significant new opportunity for A2. it is the first and only selective serotonin 5-HT1A receptor agonist ever approved by the FDA for the treatment of major depressive disorder in adults. EXXUA is already demonstrating very solid growth trajectory within the MDD category.

During our last call and during our Investor Day back in January, we spent meaningful time in the market opportunity, the clinical rationale, the unmet need in MDD, and the strategy behind our commercial launch. Today, I want to focus more directly on execution, some of the things we are seeing with respect to early adoption. Simply said, while we are still very early in the launch, the fundamentals we are seeing are highly encouraging, and the launch is progressing very well. So let's dive in. As most of you are aware, we moved from initial commercial availability in our second fiscal quarter in December into a more formalized launch phase during our third fiscal quarter.

EXXUA was made commercially available back in mid December, The initial tranche of the sales organization completed training in January, while broader field deployment of the full 40 plus sales representatives did not actually begin until late February, early March. That timing is important. While Q3 was our first meaningful commercial quarter, it was still only a partial quarter of full sales support and commercial deployment with roughly 1/3 of the sales force only getting into the field in March. So we are just getting started. The most important point here, though, is that physicians are already writing EXXUA, Patients are beginning therapy. And very early refill activity is already becoming evident.

In Q3, more than 1.3 thousand prescriptions were written for EXXUA. The monthly progression is particularly encouraging with prescriptions increasing from about 200 in January to about 400 in February to over 700 in March. That type of sequential growth is exactly what we would hope we would see in the early stage of a launch as awareness builds, our representatives increase their reach and frequency, and as physicians begin to identify patients who may be appropriate for EXXUA. Importantly, that momentum has continued. In April, we saw over 920 prescriptions written, up from the 700 in March. that is a 26% month over month sequential growth rate.

Further, we shipped over 1.3 thousand units shipped in April which is 51% sequential growth, and that is more than the prescriptions generated in the entire first quarter. While it is early, and we will avoid over extrapolating from any short-term period of data, that continued month over month acceleration clearly demonstrates that physician interest is building and that the launch is getting traction. We are also encouraged by the breadth of early prescriber adoption. During the quarter, more than 450 unique prescribers wrote EXXUA prescriptions. That is meaningful because our initial focus call universe is approximately 3.5 thousand to 4 thousand highly targeted prescribers. So at this very early stage, already 10-13% of our target universe has written EXXUA.

And yet again, we are just getting started in building a solid base of physician adoption. We believe this points to a substantial opportunity ahead as the sales force actively increases as our access initiatives mature and as peer to peer and rep based education expands. As most of you know, unit sales and prescription counts are not the same measure. Units reflect product moving through the channel and into distribution network and ultimately into pharmacies, while prescriptions reflect what prescriptions are what physicians are writing for patients. In a launch, those numbers can move at different rates because of channel stocking, titration pack and full prescription ordering, refill timing, etcetera.

With that said, during Q3, gross unit sales were 3.33 thousand units consisting of 1.81 thousand 30-count units or full 30 day prescriptions and 1.5 thousand titration units. Since launch, total gross unit sales are 3.88 thousand units, consisting of just under 2,000 30-count bottles at 1.99 thousand and 1.89 thousand titration units. So, again, highly encouraging numbers at this very early stage. When we look at the combined picture, we see a launch that is doing what we expected it to do. Physicians are beginning to prescribe Patients are starting and staying on therapy. Titration packs are being utilized. Channel partners are ordering, and they are already reordering product.

Very importantly, refills are beginning to come through, and we are seeing momentum build month over month over month. Taking a step back, a key reason we are encouraged by the launch is that the elements of our launch plan are now moving into the market and functioning as they had been designed. We built this launch to be disciplined, efficient, and scalable. Initially, we are not trying to outspend larger competitors. Instead, we are being very disciplined by focusing on the prescribers most likely to understand the unmet need evaluate Exua's differentiated profile, value our access programs, and become early adopters. Our sales organization is specifically prioritizing high value, high prescribing, psychiatry practices.

Our customer targeting has been informed by market data, branded therapy adoption behavior, existing a 2 relationships, and insights gained from our RxConnect platform. We believe that this is the right approach for Exua at this stage. The product will not benefit from broad, unfocused promotion at this important time. Right now, it needs focused engagement with clinicians who treat high numbers of MDD patients every day and who understand the limitations of existing therapies and are looking for new treatment options. The phased deployment of the sales team has also been intentional. With only a partial quarter of full Salesforce support, the early prescription and prescriber numbers are even more encouraging.

We believe there remains meaningful room for growth through increased reach and frequency, and, of course, execution against the target universe that is already been identified. Again, this is just the beginning without a full quarter of promotion even in the books yet. A 2 RxConnect has been and will continue to be a core pillar of the EXXUA launch. Our objective is to remove friction for both prescribers and patients. Particularly in the early months when coverage policies and payer processes are still developing. Through RxConnect, commercially insured patients have a predictable and supported pathway to access exua. Including a no-cost 14-day titration pack and guaranteed access to the early treatment period for commercially insured patients specifically.

That allows clinicians and patients to evaluate the medicine based on clinical response rather than on early administrative or payer driven barriers. This is particularly important in major depressive disorder where patients and physicians need confidence that therapy can be initiated and continued long enough to assess response and tolerability. By reducing uncertainty at the point of prescribing, RxConnect helps align our commercial model with real world clinical needs. We are also seeing our channel partners execute well. The more than 3.3 thousand units sold during the quarter demonstrates preparedness across the distribution network to support the current prescription demand along with the growth we are seeing.

The early launch period is not only about demand generation, It is also about making sure that when a physician prescribes EXXUA, and a patient is ready to begin therapy, that product is available and the process is smooth. The qualitative feedback from the field remains consistent with the launch thesis we had laid out previously. Physicians understand that many patients with MDD do not achieve adequate outcomes with existing therapies or struggle with tolerability issues that can affect adherence. Exua gives these patients and these clinicians a differentiated option with a novel mechanism of action, and that message is clearly resonating. As it relates to physician adoption, that will build methodically as it always does.

Physicians often start by identifying specific patient types where they believe EXXUA may be especially relevant, or in some cases, patients who have been through a long list of antidepressants already and are simply searching for something new. Our job is to continue educating, supporting access, and building confidence through clinical experience. The fact that hundreds of prescribers have already written EXXUA gives us confidence that this process is working well and that even very challenging patients, in fact, are reporting positive results. We are also highly encouraged by the early refill activity. Refills are an important proof point because they demonstrate that initial prescriptions are progressing into continued therapy.

The base of patients is still relatively small, but the presence of refill activity together with growth in titration utilization and sequential prescription increases clearly demonstrates that prescribing is picking up and that EXXUA is beginning to establish a role in the treatment of MDD. Most importantly, the patient feedback we are hearing through our prescribers is nothing short of outstanding. Phrases from even difficult patients like, quote, life changing, and a specific pay patient saying, quote, he has never felt this good in his entire life are coming through at this point almost daily. Yet again, we are just getting started. We are highly confident we will continue to hear more and more of these patient success stories.

As we move ahead, our priorities are clear. First, we will continue increasing prescriber calls within the initial target prescriber universe. We are only again at the beginning of that process. And our current prescriber base represents a small, a tiny fraction of the prescribers we have identified and an even smaller fraction of who will ultimately be prescribing EXXUA. Second, we will continue leveraging RxConnect to support access and reduce friction. We expect access, reimbursement, gross to net, and refill dynamics to all become clearer as the launch matures. And we will remain disciplined in adapting our approach based on the data.

By the way, the early signs on both coverage and reimbursement rates are extremely positive across both commercial and government payer channels. We are seeing solid and increasingly good coverage of EXXUA among commercial plans, and Medicaid and Medicare scripts are making up an increasing portion of the overall script load. Remains early, but many of the positive payer dynamics we have spoken about prelaunch are in fact bearing out. Third, we will continue investing in scientific engagement KOL development, peer to peer programs, and publication in medical congress activity. We believe Exua has a differentiated profile, and the more physicians understand where fits into their prescribing, the more opportunity we have to grow.

We had a significant presence at a major psychiatric conference over the weekend, the Neuroscience Education Institute Spring Congress, and as expected, interest and feedback and follow-up from the conference attendees was excellent. Finally, we will maintain commercial by aligning investment with performance and using cash flows from the legacy business to support the highest growth opportunity in the company, and that is clearly Exua. Turning now briefly to our legacy portfolios. ADHD net revenue was $9.1 million in the quarter compared to $15.4 million in the prior year period.

As expected, the decrease was primarily driven by our strategic shift in sales force focus late last summer towards EXXUA and some impact from the introduction of generic competition for Adzenys as well. Despite the overall shift in promotional priorities, the ADHD portfolio remains a very important contributor to Aytu and given the lack of commercial support currently behind the brands, we continue to view the portfolio as profitable and durable on a stand alone basis. The uptake of third of the third party generic against Adzenys has been quite low, which has been encouraging, with their only achieving about 14% market share through 4 plus months of market availability.

This tells us that the protective characteristics of the RxConnect program are proving protective. Given relatively little erosion as a percentage of the overall script written within the RxConnect ecosystem. The vast majority of the decline due to the generic is coming from outside the RxConnect ecosystem, So things are working as we had expected and as we had designed. Our pediatrics portfolio generated just under $1 million of net revenue in the quarter compared to $3.1 million in the prior year period. We continue to efficiently service our pediatric products and believe that while small, these mature products will continue to be durable sources of profitable revenue.

Overall, the legacy business continues to provide an important foundation we transition the company towards the larger CNS opportunity clearly represented by Exua. Our goal is to balance disciplined investment in Exua with continued cash generation from the existing business. And the existing base business does generate cash even at these levels and even at lower levels. In summary, we are very pleased with the first meaningful quarter of EXXUA launch activity.

We generated $2.4 million of revenue, for specifically for EXXUA, saw more than 1.3 thousand prescriptions written in the quarter, had more than 450 unique prescribers, write the product, sold more than 3.3 thousand units into the channel during the quarter, and saw great momentum and continued growth into April. With almost 1 thousand prescriptions generated. Importantly, this was achieved with only a partial quarter of full Salesforce support and with only a small percentage of our initial target universe writing prescriptions. We are still very early. I cannot emphasize that enough. There will be normal launch variability as market, payer access, prescribing, and refill dynamics all settle out, but the proof points we have in hand are encouraging.

And they reinforce our conviction that EXXUA can become a significant treatment options for patients living with major depressive disorder and a very meaningful growth driver for A2. With that, let me turn the call over to Ryan to review the financials in more detail.

Ryan J. Selhorn: Ryan? Thank you, Joshua. Let's jump right into it. Let's start on the revenue line. Net revenue for the 2026 was $12.4 million compared to $18.5 million for the prior year period. That represents a decrease of $6 million or 33% year over year. Breaking net revenue down by portfolio, Exua contributed $2.4 million in the quarter. As Josh mentioned, EXXUA was made commercially available in mid December and more formally launched in mid January after completion of Salesforce training with full Salesforce deployment occurring late in February, early March.

So while we remain very early in the launch curve, we view the initial contribution as highly encouraging, particularly given that the quarter included only a partial period of full Salesforce support. Further, remember that net revenue is based on gross unit sales, not scripts. During the quarter, there were 3.33 thousand units, consisting of 1.81 thousand 30-count units and 1.53 thousand titration units sold. This equates to >$700 per script. I wanna caution that this is better than our initial expectations and we will wait to see how the dust settles before making any changes to our long term assumptions around net selling price of EXXUA.

The ADHD portfolio generated net revenue of 9.1 million in the third quarter compared to $15.4 million in the prior year period. The decrease is primarily attributable to lower total prescriptions as we have deliberately shifted our commercial focus and sales force prioritization toward EXXUA, which is now the centerpiece of our commercial efforts. As well as the launch of a generic version of 1 of our ADHD products late in the 2026. The pediatric portfolio generated net revenue of $0.9 million for the third quarter compared to $3.1 million in the prior year period. The pediatric portfolio was negatively impacted during the quarter by payer mix which resulted in higher rebates as well as an increase in returns.

Overall, the revenue story this quarter is very much about transition. We are seeing the expected impact on the legacy portfolios as we navigate payer changes. But, again, I will remind you that the legacy portfolios do generate cash even at these levels. Gross profit margin was 61% in the 2026 compared to 69% in the same quarter last year. The decrease in gross profit percentage was impacted by a $700 thousand inventory write down recorded to cost of goods sold, primarily resulting from the shift from our Adzenys branded product to our Adzenys authorized generic. Excluding that write down, gross margin for the third quarter would have been approximately 67%.

From an EXXUA perspective, the expected unit economics remain attractive. As discussed previously, 28% royalty in addition to a true up on cost of goods sold. We continue to think about the product as having approximately 31% cost of goods sold or roughly a 69% gross contribution margin before certain fixed costs. As EXXUA scales, we expect these economics to become increasingly important to the overall model. Turning to OpEx. Operating expenses excluding amortization of intangible assets were $10.9 million in the third quarter compared to $9.5 million in the prior year period. Total operating expenses were $11.7 million compared to $10.4 million last year.

The increase is primarily a result of planned EXXUA launch investment, partially offset by improved operational efficiencies such as reduced facilities expense, I will touch more on the outlook in a moment. Interest expense decreased $0.5 million or 52% during the quarter and by $1.5 million for the year to date compared with the prior year, primarily due to the paydown of our fixed payment arrangement. We have previously discussed. For the quarter, we reported a net loss of $5.6 million or $0.53 net loss per share basic compared to a net income of $4 million or $0.65 net income per share basic in the prior year period.

The fiscal 26 third quarter results included a $1.3 million noncash derivative warrant liability loss. Compared to a $2.3 million noncash derivative warrant liability gain in the prior year period. As a reminder, these changes in noncash derivative warrant liabilities are primarily related to changes in the company's stock price. When our stock price increases, we generally incur a noncash loss on those liabilities, And when the stock price decreases, we generally recognize a noncash gain. The losses recognized during the third quarter were primarily driven by increases in our stock price.

On April 2, 2026, we filed a Form 8-K detailing warrant amendment that resolved the ambiguity that previously required certain warrants to be classified as liabilities rather than equity. As a result, we reduced our warrant liability and increased stockholders' equity by $26.4 million on March 31, 2026. We believe this should significantly reduce future noncash earnings volatility associated with warrant liability gains and losses. As of 03/31/2026, stockholders' equity was $35.1 million compared to $14.2 million on December 31, 2025. Finally, adjusted EBITDA was negative $2.8 million for the 2026 compared to a positive $3.9 million in the year ago period.

The change primarily relates to the planned investment we have made towards the launch of EXXUA combined with the broader deemphasis in marketing toward the ADHD portfolio and the impact of payer changes affecting the pediatric portfolio, both of which impacted net revenue and gross profit. Turning now to the balance sheet. Cash and cash equivalents were $26.7 million at March 31, 2026, This compares to $30 million at December 30, 2025 and $31 million at June 30, 2025. The change in cash during the quarter primarily reflects planned investments behind the EXXUA launch along with normal working capital movements. As of 03/31/2026, our revolving line of credit balance was $10.4 million.

And total debt, including the current and noncurrent portions, was approximately $11.4 million As noted earlier, the warrant amendment completed at quarter end also had meaningful positive impact on the balance sheet presentation. Reducing derivative warrant liabilities and increasing stockholders' equity. As of 03/31/2026, combining both equity classified prefunded warrants and issued and outstanding common shares there were 19.5 million shares utilized for calculating the basic weighted average shares outstanding for earnings per share purposes. Before I turn it back over to Joshua, I wanna spend a few minutes on how we are thinking about from a financial perspective now that we have the first meaningful quarter of launch activity behind us.

First, EXXUA net revenue of $2.4 million in the quarter was a strong initial result and ahead of our internal expectations. This revenue reflects the combination of prescriptions written and filled during the quarter as well as inventory channel stocking to meet prescription growth expectations from channel partners and pharmacies. Said differently, prescriptions are the closest clearest measure of physician written demand, while unit sales represent product moving into the channel. In the early stages of a launch, these 2 measures will not always move in lockstep, but both are important. Second, growth to net dynamics are still settling. During the quarter, gross to net came in materially higher than our initial launch assumption.

But again, it is still very early. Will continue to refine our assumptions as payer mix, RxConnect utilization, pharmacy ordering patterns, and patient access programs mature. The first few months of any launch include noise. And that is especially true for a product like EXXUA where our strategy is intentionally designed to remove early access barriers for patients and prescribers. As we discussed last quarter, through RxConnect, we have deliberately reduced early access friction by offering a no-cost 14-day titration pack. For commercially insured patients, we are also guaranteeing coverage of both month 1 and month 2 of therapy regardless of the insurance outcome, which is intended to ensure patients can remain on treatment through dose optimization without interruption.

That strategy is important clinically and commercially, but it also means that scripts can grow ahead of net revenue in the early going. As patients transition into month 3 refills and beyond, we expect the revenue model to begin normalizing more closely with ongoing utilization. Although we will continue to see some variability as the launch matures. Third, the launch investment framework remains disciplined. We made planned investments during the quarter across sales and marketing, service costs, and launch infrastructure, but we continue to manage those investments and align the incremental spend with launch performance and cash flow. Our objective is to support the Exu opportunity appropriately without losing the operating discipline that has been central to the company's progress.

In the fourth quarter of this fiscal year, we are launching our online promotional campaigns, including paid search, programmatic displays, and social media advertising to drive awareness and incremental adoption and should result in an increase in overall sales and marketing spend by $1 to $2 million, depending on their breadth and overall impact. Additionally, we have increased our speaker program events spending, medical education content, and conferences involvement which will likely increase our G&A spending by $200 thousand to $300 thousand. in the upcoming quarter.

Depending on the success of these programs, we currently anticipate ongoing sales and marketing quarterly spend to range from $6 million to $7 million and G&A to range from $5 million to $5.3 million going forward. Finally, the financial model continues to be straightforward. We expect Exua to have attractive gross contribution margin We expect launch related expenses to be managed against demand and on investment, and we expect the legacy portfolios to continue to providing an important foundation as Exuas scales. While we are not providing formal guidance today, the general framework we discussed previously remains the right way to think about the business.

Mid to high 60% gross margins over time a disciplined operating expense base, and the near term path to profitability as EXXUA revenue builds on top of the existing platform. As always, I am happy to go over any details during Q&A. And with that, let me turn it back over to you, Joshua.

Joshua R. Disbrow: Thanks, Ryan. So as we look ahead, I want to reemphasize again what we are seeing with Exua. While we are still in the very early stages of product launch, the initial traction has been highly encouraging. With more than 1.3 thousand prescriptions written during the quarter by over 450 unique prescribers and continued growth in titration packs and early refill activity, we believe prescribers are increasingly recognizing Exua's differentiated role in the treatment of major depressive disorder. And, with April posting over 900 prescriptions and over 1.3 thousand unit shipments, we are seeing continued month over month over month increases in prescription and unit demand.

Importantly, this momentum was achieved with only a partial quarter of full sales force support, which reinforces our confidence in both the market opportunity and the disciplined efficient commercial strategy we put in place. EXXUA gives Aytu access to a very large MDD market with a meaningful unmet need attractive unit economics, and a clear opportunity to build long term value. We remain extremely excited about the path ahead and look forward to updating you as the launch continues to scale. As always, I want to thank everyone participating on today's call. We will now be happy to answer any questions. Operator?

Operator: Thank you. At this time, we will be conducting a question and answer session. You may press *2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, that will be *1 on your phone at this time. If you wish to ask a question. 1 moment, please, while we pull for questions. First question today is coming from Thomas Flaten from Lake Street. Thomas, your line is live.

Analyst (Thomas Flaten): Hey, good afternoon, guys. Thanks for taking the question. Hey, Ryan, just doing some back of the envelope math I kind of figured about $1.5 million in, quote, unquote, stocking revenue in the EXXUA number for the quarter. Is that is that a reasonable assumption?

Ryan J. Selhorn: Sorry. Yeah. That is a pretty accurate calculation.

Analyst (Thomas Flaten): Okay. And then, Joshua, you mentioned some efficacy anecdotes in the prepared remarks, but I was curious what you have heard back specifically related to weight gain and sexual side effects if the physicians have provided you with any feedback on that?

Joshua R. Disbrow: Yeah. I will take weight gain first, which is that will always be quite a while before that develops just because of the time it takes for someone to gain weight. What I will say is we are certainly not hearing anything unexpected there. But, again, you would not necessarily expect in the first 2 weeks much weight gain 1 way or the other. On the sexual side effects, I will say that is where things like life changing and never felt so good in my life, those anecdotes sort of come from. Even having heard from them personally from some select physicians in my area where I have had conversations.

1 gentleman who had been on, quote, everything under the sun was switched to EXXUA and immediately, restored his libido. So we are hearing very, very good positive anecdotes, way more than just those handful. that is just a couple that I put into the prepared remarks. And, again, 1 I experienced myself directly from a prescriber here in Colorado.

Analyst (Thomas Flaten): And then just 1 last 1, if I might. You mentioned something like 10-ish percent of your customers had written EXXUA, but what is been the writing activity of non customers, so to speak, people that you have not called on? Is that is there any of that?

Joshua R. Disbrow: Yeah. Highly encouraging as well. You know, when you look at the amount of white space we have around the lower 48, it is fairly significant as any of those you follow us closely know. We really cover the Eastern Seaboard, call it from Connecticut down to Miami out to Florida, and then some dots in kind of flyover country. We have gotten significant prescribing from states where we have no physical presence. it is been extremely encouraging. Finding their ways to the product without any promotion, We have had inbound calls. We have had significant prescribing in places where, again, there is been no presence at all. So it is been highly encouraging.

I wanna say we have had prescriptions in 41 or 42 states at this point. Obviously, we do not physically have presence in nearly that many, so it is been very encouraging. Greg. Appreciate that. Thank you.

Operator: Thank you. Thank you. The next question will be from Nazibur Rahman from Maxim Group. Naz, your line is live.

Analyst (Nazibur Rahman): Hi, everyone. Congrats on the progress, and thanks for taking my questions. I only have 2. The first 1 is on reimbursement I understand it is very early in the launch process, but in terms of, like, those prior authorizations, you provide some color on, I guess, how many of those or what percentage of those prior authorizations are getting approved on the first pass versus how many or what percentage you have to have a back and forth through prior to getting reimbursed?

Joshua R. Disbrow: Yep. Good question. So I will take the I will separate it into commercial as well as CMS, Medicaid, Medicare. Medicaid, Medicare is highly variable. Down to the individual patient, down to the individual state. What I will say is what we are seeing early on is it fits well. Prescribing Exua fits well within what they currently do, which is to say, in the state of Colorado, you need to demonstrate that you failed 2, quote, preferred agents, which are really nothing more than just generic established therapies like SSRIs, and then prior authorization goes through. We have seen that already in real time happening in numerous states and so that is going through smoothly and as expected.

In some places where there are mandates, to allow for psychiatric prescribers specifically to essentially be waived of any prior authorization requirement. that is happening also in the states that we expected it to, so that is all encouraging. Medicare, relatively small numbers on Medicare, but those prescriptions are going through as well. Highly variable from plan to plan in terms of what is required. Most patients will have to meet a deductible and then the benefit from their Medicare provider, for example, like AARP, will start to kick in.

On the commercial side, because we have got this unique setup, and I will bifurcate that a bit as well, because we have prescriptions going to the RxConnect network, and that is the vast majority. But to Thomas's previous question around prescriptions that are being dispensed and prescribers outside of our outside of our footprint, those too are going through. And so they are completing any prior authorizations, and we are actually seeing a relatively high rate of well covered claims in places, again, where we have no coverage. Within the RxConnect network, we are seeing prior authorizations go through with good success.

We are seeing of the numbers that we are doing, and it is still relatively small, over 70% of those are getting approved. And so we are seeing a very high rate. Obviously, approved claims means better for everyone. A lower co pay for the patient and a higher net selling price to us And so that is highly encouraging. But even I will remind you. Even in cases when prior authorizations either are not done or are not going through, that we in the initial going in that first for that first trial period, we are essentially covering those prescriptions for either $0 or potentially $50.

But I will say just as an overarching statement as it relates to reimbursement and coverage, The approval rates continue to improve month on month, and the dollars in terms of net selling price when you aggregate government and commercial are materially higher than we initially budgeted. But to reiterate what Ryan said, we will caution against extrapolating that out too far because things are still settling out. But I am extremely pleased, and I think we all are collectively here on the team with what we are seeing with respect to reimbursement. And, frankly, the relative ease some of these prescriptions are going through with. So, very pleased.

Analyst (Nazibur Rahman): That was very helpful. And just kind of on that point, for these patients, do you know, I guess, what line of therapy they are on by the time they get to well, it sounds like in Colorado, these are third-line patients. Do you have an idea of, like, how many of these patients are second-line versus third or fourth?

Joshua R. Disbrow: Yeah. that is a good question. And it is still very early, and it is very We have everything from second-line all the way to very late-line, who have kind of tried everything, so to speak. What I will say is we have good data that we know in the 60-plus-percent range,