• Net Product Revenue: $40.2 million in the second quarter of 2024.

• Year-to-Date Net Product Revenue: $61.2 million for 2024.

• Cash, Cash Equivalents, and Marketable Securities: $522 million as of the end of the second quarter.

• Operating Expenses: Increased due to commercial activities for the US launch of OGSIVEO and anticipated launch of mirdametinib.

• Warning! GuruFocus has detected 3 Warning Signs with SWTX.

Release Date: August 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• SpringWorks Therapeutics Inc (NASDAQ:SWTX) reported $40.2 million in net product revenue for OGSIVEO in the second quarter of 2024, indicating strong demand and successful commercial execution.

• OGSIVEO has rapidly become the standard of care systemic therapy for desmoid tumors since its FDA approval, with high patient and physician satisfaction.

• The company completed its NDA submission for mirdametinib, a potential best-in-class therapy for NF1-PN, indicating progress in expanding their product portfolio.

• SpringWorks Therapeutics Inc (NASDAQ:SWTX) has a robust balance sheet with $522 million in cash, cash equivalents, and marketable securities, supporting its path to profitability.

• The company is advancing several promising pipeline projects, including a Phase 1 study of TEAD inhibitor SW-682 and expansion opportunities for mirdametinib in various settings.

Negative Points

• Operating expenses increased compared to the previous year, driven by commercial activities for the US launch of OGSIVEO and preparations for mirdametinib.

• There is a significant unmet need for NF1-PN patients, with no FDA-approved therapies for adults, highlighting a gap in current treatment options.

• The company faces challenges in expanding the adoption of OGSIVEO in community centers, despite strong uptake in centers of excellence.

• The market for NF1-PN is minimally penetrated with systemic therapies, indicating potential hurdles in market education and adoption.

• Potential seasonality effects could impact OGSIVEO sales during summer months, as seen with other products in the market.

Q & A Highlights

Q: What are you seeing from both new prescribers and repeat prescribers for OGSIVEO, and how is the wait-and-watch population responding? A: Bhavesh Ashar, Chief Commercial Officer, explained that there has been a good amount of new prescribers since the launch, with repeat prescriptions coming in regularly. The proportion of business from existing patients is increasing. The wait-and-watch population is expected to decrease over time as more patients seek active treatment with OGSIVEO, supported by treatment guidelines favoring systemic therapy.