Assertio Therapeutics ((ASRT)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Assertio Therapeutics’ latest earnings call revealed a generally positive sentiment, driven by significant growth in Rolvedon sales and market share, alongside strategic product advancements. The company showcased a strong financial position, although challenges such as declining Indocin sales due to generic competition and temporary cash flow impacts from sales pull-forwards were acknowledged. Additionally, costs related to the decommercialization of Otrexup were noted as impacting the financials.
Rolvedon Sales Surge
Rolvedon net product sales surged to $38.6 million for the third quarter of 2025, a substantial increase from $15 million in the previous year. This impressive growth, attributed to the pull-forward of two quarters of sales, significantly contributed to an adjusted EBITDA of $20.9 million, up from $4.4 million in the prior year quarter.
Sympazan Sales Growth
Sympazan also experienced sales growth, with net product sales reaching $2.8 million for the third quarter of 2025, compared to $2.6 million in the prior year. This growth was primarily driven by higher volume, indicating increased demand for the product.
Strong Financial Position
Assertio reported a GAAP net income of $11.4 million for the third quarter, a significant turnaround from a loss of $3 million in the prior year. The company’s cash, cash equivalents, and short-term investments totaled $93.4 million as of September 30, 2025, underscoring its robust financial health.
Market Share and Demand Growth
The company achieved a 43% market share in the clinic Medicare Part B segment for Rolvedon during the third quarter, with a 42% year-to-date demand growth compared to the same period in 2024. This highlights Assertio’s successful market penetration and growing demand for its products.
Indocin Sales Decline
Indocin sales declined to $4.8 million in the third quarter, down from $5.7 million in the prior year. This decrease reflects the impact of generic competition, which has posed a challenge to maintaining sales levels.
Temporary Cash Flow Decrease
The pull-forward of Rolvedon sales is expected to lead to a temporary decrease in operating cash flow in the fourth quarter of 2025 and the first quarter of 2026. This strategic decision was made to ensure continuous patient supply during Rolvedon’s transition to a consolidated commercial labeler.
Decommercialization of Otrexup
The decommercialization of Otrexup negatively impacted the company, contributing to nonrecurring costs in SG&A expenses. This move reflects Assertio’s strategic adjustments in its product portfolio.
Forward-Looking Guidance
Assertio provided updated guidance for the full year 2025, narrowing its expectations for product sales to between $110 million and $112 million and adjusted EBITDA to between $14 million and $16 million. These projections take into account the pull-forward of Rolvedon sales and the impact of generic competition on Indocin.
In summary, Assertio Therapeutics’ earnings call highlighted a positive trajectory with significant growth in Rolvedon sales and a strong financial position. While challenges such as Indocin’s sales decline and temporary cash flow impacts were noted, the company’s strategic advancements and market share growth paint an optimistic picture for the future.