Akebia Therapeutics Reports Strong Vafseo Launch Success

Akebia Therapeutics ((AKBA)) has held its Q1 earnings call. Read on for the main highlights of the call.

Akebia Therapeutics’ recent earnings call painted a picture of strong early success, particularly with the launch of Vafseo, which exceeded expectations. The sentiment was largely positive, with promising trends in prescriptions and financial performance. However, there were some concerns about potential generic competition for Auryxia and slower integration with large dialysis organizations. Overall, the company’s performance and future prospects appear encouraging.

Strong Vafseo Launch

Vafseo’s US net product revenues reached an impressive $12 million, surpassing the guidance range of $10 million to $11 million. This launch is considered one of the strongest in the dialysis market, with nearly full coverage from commercial contracts with dialysis organizations, highlighting the product’s robust market entry.

Increased Prescriber Base

The number of prescribers for Vafseo saw a significant increase of nearly 25% compared to February, ending the quarter with over 640 prescribers. This growth indicates a widening acceptance and trust in the product among healthcare providers.

Positive Refill and Prescription Trends

Refills accounted for about one-third of all prescriptions in the first quarter, suggesting strong patient retention. Additionally, prescriptions per provider increased from nearly eight to approximately 12, reflecting enhanced engagement with the product.

Financial Performance

Akebia’s total revenues surged to $57.3 million in Q1 2025, up from $32.6 million in Q1 2024. This growth was driven by Vafseo’s success and a 43% increase in Auryxia sales, showcasing the company’s strong financial health.

Reduced Cost of Goods Sold

Despite higher sales, the cost of goods sold decreased to $7.6 million from $11.6 million, benefiting from the elimination of a $9 million non-cash amortization charge. This reduction contributes positively to the company’s profitability.

Strong Cash Position

The company ended the first quarter with a solid cash position of $113.4 million, bolstered by a public offering that raised over $46 million. This financial strength provides a cushion for future investments and growth.

Progress in Clinical Studies

Significant progress was reported in clinical studies, with the VOICE study 75% enrolled and the Phase III VALOR trial for non-dialysis patients on track to begin in the second half of 2025. These developments are crucial for the company’s long-term growth strategy.

Auryxia Generic Competition

Auryxia’s loss of IP exclusivity in March has led to the entry of an authorized generic into the market. This development raises uncertainties about future sales levels due to potential additional generic competition.

Challenges with Large Dialysis Organizations

While the top five dialysis organizations have ordered Vafseo, revenue primarily comes from small to mid-sized organizations. Integration with large organizations is progressing slower, with one planning a pilot in Q3, highlighting a challenge in scaling up.

Forward-Looking Guidance

Akebia exceeded its US net product revenue guidance for Vafseo, reporting $12 million compared to the expected $10-$11 million. The company expressed confidence in achieving profitability based on the current operating plan, supported by strong financial performance and a solid cash position. The ongoing clinical studies and plans for the Phase III VALOR trial are expected to bolster future growth.

In summary, Akebia Therapeutics’ earnings call reflected a positive outlook with strong performance from Vafseo and promising financial results. While challenges such as generic competition for Auryxia and integration with large dialysis organizations exist, the company’s strategic initiatives and solid cash position provide a strong foundation for future growth.