Hello, everybody, and thank you for joining us during the Lytham Partners Winter 2024 Investor Select Conference. My name is Roger Weiss, and I'm a Vice President of Lytham Partners. In this discussion, we welcome Aytu BioPharma, Nasdaq ticker symbol AYTU. With us today is their Chief Executive Officer, Josh Disbrow. Before we begin, I want to remind everyone that management is available for one-on-one meetings later this week. If you've not already signed up, please send me an email at weiss@lythampartners.com or visit www.lythampartners.com/select2024 and click the One-on-One Meeting Request button. With that said, all right, Josh, let's begin. Firstly, welcome, and could you please introduce yourself and just give us a brief overview about Aytu?
Yeah. Thanks, Roger. Great to be here with you. My name's Josh Disbrow. I'm one of the co-founders and the Chief Executive Officer of Aytu BioPharma. And Aytu is a company that's in significant growth mode, and we've grown over the last several years through a series of strategic transactions, whereby we're really well-positioned in specialty pharma and specifically within the ADHD and pediatric medicines category. And we're based in Denver, Colorado. We have a nationwide infrastructure, inclusive of a sales force that calls on primarily ADHD specialists. And we are excited about the current state of the business, having just posted a couple of successful quarters here back-to-back.
Some of the changes that I know we'll be talking about that we've had underway for quite some time are starting to take hold, and so excited to share that story, excited to be with you. So, yeah, thanks for having us.
Our pleasure. Josh, Aytu is, I think, pretty close to completing its shift from, I guess what's... I'll call a three-part program focusing on specialty pharma, OTC consumer health, and, drug development, to concentrating on just its, prescription business. How's the process going, and, what are the indications so far?
Yeah, great question, Roger, and happy to share more about that. What I'll say first is, if you were to look at the company and how we were positioned, say, two years ago, you would've seen a company that was doing, you know, a little bit of a lot of things and, you might argue was sort of diversified, and not necessarily in a good way, such that we were in really our core business, which, you know, which we'll come back to, of spec pharma. We also had an OTC business that, unfortunately, was losing money, but the burn was really heightened by a very exciting, albeit very expensive, clinical development program.
So as you mentioned, it really was sort of a three-headed monster, so to speak, and it was a business that when you aggregated all of it, it was losing money, a fairly substantial cash burn. And so we made the decision, an important, albeit difficult one, to cease all clinical development, and we did that really back in, you know, essentially October, so the, the fall timeframe of calendar 2022. And we accelerated that shift when we took a look at the whole business, obviously inclusive of what then became sort of the former R&D program. We wrapped in the consumer business and looked at the spec pharma business and said: Look, what, what's making money here?
It was very clear that the spec pharma business, most notably the ADHD business, was growing, you know, essentially on a standalone basis, nearing EBITDA positivity. So we made yet another big decision strategically and decided to shut down the consumer business, which was burning in excess of $5 million of real cash annually. So if you fast-forward to where we are today, having just really made that pivot on the consumer piece about six months ago, the dividends are really starting to pay off. What you look at here in late January of 2024 is a focused prescription business that is EBITDA-positive when you look at it as a segment, and really, as you think about that as the go-forward entity.
You know, we think we're just a handful of quarters away from being able to significantly cash flow this business on the basis of just focusing on what we know can drive revenue and cash flow, what we know we do well and really is our heritage. My background is 25+ years in specialty pharmaceuticals, the prescription side of the business, and we're really, really, really hitting our stride with that part of the business. So today, no R&D, indefinitely suspended the R&D pipeline. Consumer piece is nearly wound down. We've guided folks to essentially the spring to summer timeframe of this year to get that, you know, essentially down to nothing.
We do have inventory that we're selling through, and just from a finance standpoint, it makes more sense to sell through that inventory as opposed to, you know, essentially taking a bigger cash loss. And so, that'll be wound down essentially by, you know, by mid-year, and we'll come out on the other side of that looking very focused, very streamlined, and we expect a significantly EBITDA-positive on its way to cash flowing.
Very good. You know, I can kind of ask you to drill down maybe a little bit deeper. You've already talked about the process now and kind of, you know, seeing the light at the end of the tunnel in terms of completing that. When the shift is complete and you're 100% specialty pharma, can you discuss the specific parts of the specialty pharma business, how you think about them, as growth drivers, and what are the challenges there for you?
... Yeah, we see tremendous growth ahead for the business and really across the entire prescription business, but particularly with the ADHD franchise. I'll remind you, we have two ADHD medicines, Adzenys XR-ODT and Cotempla XR-ODT. Adzenys is a amphetamine, it's actually FDA approved as being a bioequivalent to Adderall XR, which is the most commonly prescribed stimulant for ADHD. And we have Cotempla XR-ODT, as I mentioned, that's analogous to Concerta, which is the most prescribed methylphenidate. Our methylphenidate product, Cotempla, is more oriented towards children and adolescents. The amphetamine, Adzenys is children, but a significant percentage of the prescriptions go to adults. We compete in a very large category. So those have legs, they have a lot of growth opportunities.
They're the only orally disintegrating tablets in the category, so they're very easy to take, they work very rapidly, they last a full 12 hours, and they have great patient adherence. Then we have a pediatric franchise, which has been growing year-over-year, although it took a little bit of a step back here over the last couple of quarters. Starting to see some signs that those are rebuilding, and, you know, we'll talk through some of the specifics, but, you know, encouraged that there's an opportunity to kind of get that business back to a higher level. But all in our prescription business, think of it as about an $80 million business and growing. If you look at the ADHD products, if you look at the quarter ending December...
I'm sorry, September 30th , they grew, the revenues grew 31% year-on-year, so significant growth for that franchise. And if you look at the last six years, or six months rather, of the segment, again, for the quarter ending September 30th, which was our last reported quarter, that segment did $10.7 million in EBITDA off of, you know, off, off of call it 40-ish million dollars in net revenue. So that's a nice business. It's a business that can grow, and it's a nice business that, again, we think on the precipice of beginning to generate meaningful cash flow. And in the categories in which we compete, they're very, very big. The ADHD category is characterized by over 80 million prescriptions annually.
Multiple former blockbusters on the branded side with products like Concerta and the Adderall franchise. We just have a tiny piece of that market, and we're just continuing to chip away at it and grow. Again, we are growing that business, and it's EBITDA positive. It's on its way to cash flow.
Very good. And you know, kind of mind-boggling to me, Josh, I know we're talking about ADHD, but I can't believe it, but you know, I think now for the past two years, we've also been talking about ADHD drug shortages. And in fact, I think just a few weeks ago, there was another article in STAT about how the reporter was having trouble finding his child's drugs and what a tremendous effort it took to do something there. How are these shortages, A, still going on out there, and how do they impact your business?
Well, yeah, you bring up a good point, and it has been, you know, essentially a two-year saga. And, you know, frankly, we've been able to really capitalize on the confusion and the frustration, because we've been fortunate enough to be able to supply our ADHD products and fill that gap very nicely in circumstances where patients can't get access to their Concerta, or their Adderall, or their Focalin, or whatever the product may have been. Yeah, the shortage was initially caused by sort of production issues at one of the large manufacturer sites. That was compounded with some labor shortages coming out of the pandemic that just caused them to get behind in production.
That really sort of caused a ripple effect throughout the industry, where the other products in the category, demand for those started to increase, and ultimately it caused an intermittent disruption just on the basis of numerous manufacturers running out at various times. Some were out for months and months at a time. Some continue to have intermittent shortages, and then some companies, for various reasons, some of those financial, you know, have gotten out of the market, specifically generic manufacturers. And so it's just created an ongoing sense of, you know, I guess I'll call it disillusionment amongst patients and physicians, where they just can't count on a pharmacy any given day, having that patient's prescription.
We've been able to step in and fill that gap very nicely, particularly given the fact that our product, again, is bioequivalent to Adderall XR. So we're able to go to physicians and say, "If you're looking for a reasonable alternative to something that maybe you're having a hard time getting, we have an ODT version of Adderall," if you will, "and it's easy to take, well-tolerated. Patients tend to like it." One of the things that's really been important for us is we've shown physicians and patients that there really is a better way. First of all, you don't have to chase your prescription all around town by calling a neighborhood, a chain store, CVS or Walgreens, for example, and asking if they have it.
Invariably they say, "Well, we do have it," and then by the time you get there to pick it up, it's gone. And that's a cycle that was repeated hundreds of thousands of times over the last couple of years. And what we do to really squelch that pain, if you will, for the patient and the physician and, many times the patient's parents, we have a program that I know we'll talk about here that really cuts to the root of the problem, which is unpredictability.
And in this market, it's really not just that it's unpredictable whether or not you can get the product, Adderall XR, for example, it's also if you have the product and perhaps it's being substituted for a different manufacturer's generic, is that product going to work for you the same as, say, the brand would have, or the other generic that you were on would have? And then compounding that further is if, if that product that you were switched to because of lack of availability of your first option, is it gonna be at a price that you can afford? And so it just has created such a monumental issue for patients... and it has now sort of bitten patients and physicians to such a degree that they, that they're wondering sort of when will this happen again?
Even in the face of the, at least on the amphetamine side, some of that shortage starting to get better. Again, they've been sort of bitten once, and, you know, and they're concerned about, you know, when's it gonna happen again. We're now seeing it continue with the methylphenidate category, and we're able to come in and sort of offer a really nice solution that I know we'll talk about here, and it's enabling us to grow our business tremendously. Really enables a great opportunity to get introduced to new physicians, get new patients on therapy, and being able to give them, you know, more or less a guarantee that, look, we're small, but, you know, we've never had a shortage, even as our products continue to grow. And as I mentioned, they're up 30% year-over-year.
We're able to keep up with that demand. We're able to go to the DEA and increase our quota and get the raw materials that we need. And so we're able to give them a consistent product, a consistent experience, and it's good that we're able to sort of step in and fill that gap because it's been a tremendous headache for people for, you know, coming up on a couple of years.
And as I remember, we've talked about this a little bit. When you get a new doctor to prescribe you, and you get new underlying patients, it's a fairly sticky business. You know, when they're satisfied with the drug and how it works for them, they tend not to then go off and try somebody else's drug, you know? Would that be your kind of view of the world?
Yeah, it really is, and in this category, even more so. You know, ADHD is a, it's a complex condition. It's a condition that it takes you, in many cases, months and months to really refine the diagnosis of. It sometimes takes months to get patients titrated to the right dose, the dose that they're responding well to, that they tolerate well. And then sometimes you've got to move them onto something new. So it's really, it's quite, quite dynamic, and just that patients are, in many cases, looking for new alternatives or, you know, I need to tweak my dose. Some patients will go off and then come back on, and they, they're having a different experience, or they're having side effects.
And so it takes a while to sort of reacclimate to those, or in some cases, sort of pass through those side effects. So it's quite complex. And so when you get a patient on a therapy that's working for them, and when you get them in a program that we have where you've got this high level of predictability, they're using it, they're getting it at a pharmacy that's consistent every month. They know that they have it. We, by the way, essentially lock in the pricing, so they know what the co-payment's gonna be, or at least what their maximum out-of-pocket's going to be any given month. It really enables us to hold on to those patients.
So I'd like to think that we do an even better job than the incumbent products of not just having a good product, but having a good program, so to speak, to wrap around the product, to really enable that experience. And that, for us, is obviously what enables that sticky patient and that long-term annuity value.
Very good. I would be remiss at this point in time, because we've certainly talked about the demand side. On the supply side, number one, when we're talking about ADHD drugs, these are Schedule II drugs. Is there any problems in terms of supply chain or in getting new quota from the DEA in terms of, basically supplying your needs as you continue to grow?
You know, we've been very fortunate and have maintained a really good working relationship with the DEA. And, while we may not always initially get what we require in terms of active pharmaceutical ingredient, or API, we, you know, eventually are able to get that. It sometimes takes some back-and-forth volleying with DEA to demonstrate that, "Hey, here's our increasing demand. While maybe the last 12 months looked this way, here's what our future-looking 12 months forecast looks like." And so we're able to sort of get them to, you know, collaborate with us and, and we sometimes, I would say, are the beneficiary of being small in that.
You know, when we, if we do request quota, let's say we request 10 kilos, and they, you know, they get back to us and say, "Well, here's 8 kilos," that's a very different story than a large manufacturer like Teva, for example, that's requesting many, many multiples of that. And if they get shorted by the same percentages, you know, as I say, 10%, that could be 10, 12, 30 kilos different. That's a big number. So we benefit kind of by being a little bit smaller, and we also can be very nimble. And while we are getting out of our manufacturing facility in favor of moving to a contract manufacturer, that contract manufacturer is also fairly small and nimble. And so we're able to be very reactive to when we get the increased API in the facility.
We're able to get that manufactured very quickly. Some of the larger manufacturers, you know, they're big tanker ships. You know, it takes them a while to be responsive and move, and if they get shorted, it may, you know, materially disrupt their production schedule, whereas, you know, we're focused on these products, and we're able to be very nimble and responsive. And so, as I said earlier, not in the history of Aytu or at the predecessor company that we acquired, Neos, have we run out of supply. And so, you know, I should knock on some wood here and hope that that continues.
But we've been able to consistently meet this growing demand, mostly by virtue of the fact that we are nimble and small, and that because we are able to be responsive and because, you know, having less than 1% of the market, even if we grow to 3%, 4%, 5%, first of all, that'd be a very large revenue number if you look at where these products sit today. But in the scheme of things, it would still be a relatively small piece of the overall stimulant ecosystem, and we, to some degree, can benefit from that. And I will say the DEA has done a good job of being responsive over, you know, the last few months, and they're starting to communicate more openly. And, you know, we've got good dialogue with them.
They've moved to a new quota system of allocating quota quarterly as opposed to annually, to enable them to be more responsive to market disruptions as we've experienced. And, you know, while some would say, "Well, isn't that going to benefit everyone?" It certainly will, but it's gonna benefit those that are more nimble, that can be responsive to these more on-the-fly changes in quotas. You know, if you're a large manufacturer, you've got your manufacturing schedule, you know, out six, nine, 12 months, many times even longer than that. And yet they have, you know, 18, 20, 30, 100+ products that could be manufacturing. Even with a contract manufacturer, while they do have other clients, they have smaller clients, and one of the things they pride themselves on as being nimble.
Of course, as long as we're still manufacturing at the Texas facility, we can continue to be very nimble and responsive as well.
Very good. You kind of touched on it a little bit, but we've in the past talked about the Aytu Connect operation. Could you just briefly describe again, what is it, and how does it fit into how you market the prescription medications? And also, how does it differentiate your operations from your competitors?
Yeah, Connect is really an elegant program that we stand behind and are really proud of. You know, first what I'll say is, you know, many manufacturers of pharmaceuticals do have patient support programs, but we go much farther than any of those others do, to our knowledge. We simply haven't found anything in the public domain that suggests that anyone has a more comprehensive solution for the problems that affect patients in accessing their drugs affordably.
And so what we have with Connect is a program, and we essentially go to our physicians through our sales force or through indirect promotional efforts, and tell them that if you'll prescribe our products, ADHD products or our pediatric products, particularly our multivitamins, and prescribe those and send them to a pharmacy that we have comfort and familiarity with, that works really within our, I'll call it a network, your patients will get the benefit of all the things they're not getting the benefit of if they're going to a big-box store. They will get predictability of price, predictability of availability, and they'll get the same product every single time.
We take it a step further in offering savings to patients and guarantee that on the ADHD medicines, they pay no more than $50 on a monthly co-pay. That applies even during the high-deductible period, which we're in now, and we do that really to ensure that patients and physicians get a pain-free experience. Because right now, in 2024 and going forward, it will continue to be this way, the experience and the price that patients pay at the pharmacy is highly variable, and it's very frustrating. Patients sometimes could pay a $35 co-pay, but then they move back into having to satisfy their deductible, because over half of Americans now are on a high-deductible plan.
Just by virtue of how PBMs work, they're pushing more and more of the costs onto patients, keeping more and more of the profits themselves, by the way, and that's affecting patients, notably, as you might expect. It's in December, for example, a patient might be able to get a generic for $10 or $12, or a brand for $50. Then all of a sudden, the calendar changes to January 1st, 2024. They go to pick up their January prescription for their son or daughter, and it's $450, and they're sticker shock. And while they intellectually understand that they're on a high-deductible plan, emotionally, that doesn't sometimes always sink in, and so there's a high level of frustration.
For the patients, many of these patients that have young families, $400+ for a prescription may be way too much to handle. For us, while we do have brand pricing, really our net pricing enables us to meet that patient where they are and essentially guarantee a co-pay of no more than $50. It really enables us to ingratiate ourselves with the physician. I should say, by the way, through Rx Connect, we service the physicians, in that we're able to sort of help them with prior authorizations along the way. We're able to help the pharmacies if they need to troubleshoot a claim, and it really becomes a win, win, win, win.
That's four wins, and if you'll follow the bouncing ball, it's a win for the physician, of course, because they're able to predictably prescribe and know that their patient's going to get the medication. It's a win for the patient, because, again, they know that they'll actually get it. They know that they'll get it at a predictable price, upfront, you know, upfront pricing, if you will. It's good for the pharmacy because this pharmacy is now bringing in a patient and potentially that patient's family, filling that family's prescriptions. They're able to compete with these larger retailers. And it's a win for us because what we see is patient adherence goes up.
We actually get a higher margin when we run prescriptions through our network versus through non-network pharmacies, and so we benefit from improved profitability and increased refill rates through adherence. The patients win, the physicians win, pharmacies win, and so it really has been an excellent program and one that every time we put a product into the program, we see it grow. We saw this with the multivitamins when we put those into the program. The ADHD meds had been on the program, and I should say, and really give credit to the Neos team and our commercial team that really crafted this program from the ground up. It's organic, it's homemade, if you will, and it works like a charm and really is a competitive advantage. You asked how it separates us from the competition.
Wrapping our arms around the patient and really managing every aspect of this patient journey is something very few, if any, other companies do, and it's, it's a really, really unique differentiator for us.
It sounds like not only something that helps the patient, but the doc and, you know, it just keeps everybody happy. So very-
Yeah, it really does. It really does.
Um-
And it's dynamic. It changes in response to market needs. It changes in response to various situations with payers, whether they're covering or not covering, to what degree they are. And we have exquisite access to data and mine it actively, have multiple employees. Their entire job is really focusing on this program to ensure it's working very well for the benefit of all, all the patients that we're trying to help.
You also, a little while ago, touched base on contract manufacturer, and you have already publicly announced that you've received approvals from the FDA to move the drugs over. You have started working with the contract manufacturer. Basically, could you give us an update on where you sit right now and what kind of margin expectations you have as this shift to outsourcing kicks in for you, and I guess both for the ADHD drugs and for the overall corporate P&L?
Yeah, it's been an express objective of the company for several years now to transition these products and ultimately trying to solve for improved profit margin to improve the overall health of the company. We've made good progress. As you mentioned, we've gotten FDA approval for both products to transition from our current manufacturing facility in Grand Prairie, Texas, to a contract manufacturer in New Jersey. And now we're at the point of purchase orders sort of being processed at the manufacturer and ultimately beginning the stage of sort of winding down operations and personnel in the Texas facility. We do expect margin improvement.
Now, I will say we've had significant margin improvement along the way as we've increased volume and have been able to more efficiently manufacture some of the costs in Grand Prairie. While they're fixed, you can obviously spread those fixed costs over a larger number of units and drop your cost of goods that way. So inherently, we've improved our margins just by virtue of the volume, but would expect further margin improvement on the business as we get fully transitioned to the CMO. And, you know, that should happen, you know, in the 2024 timeframe, calendar 2024 timeframe. And if you harken back to what I said earlier in terms of the RX segment's EBITDA, again, over the six months ending in September 30, it was almost an $11 million EBITDA margin.
You know, we've said publicly, you know, we would expect once we're in full flight, you know, an additional $5-$8 million, maybe even more in margin. So if you say, "Look, this is a company that, you know, from a standing start, if you look at the September quarter, is sort of annualizing, you know, in the $20 million EBITDA range," and you think you could expand that margin, you know, another $5-$8 million. Again, once we're in full flight, not necessarily this year, you can see how a company, you know, sort of dramatically improves its financial performance. And so that's the objective here, and we're happy with the progress. Still, you know, several things that need to be tied down. Tech transfers are inherently complex.
These are complex products, just by, just by their very nature, and you need to balance things like quota and all the things that you have to deal with from a regulatory perspective. And, so some threading of the needle, and so we'll see a little bit of noisiness in the P&L just because the margin has already improved. So we're not necessarily suggesting that, for example, with the March quarter, you'll see some, you know, dramatic improvement in, in COGS coming down. It'll be a gradual improvement, and again, once we're in full flight, fully out of the Texas facility and fully up and running and producing, 100% of our product at the CMO, I think people will see that improved margin.
But even where we sit today, we're quite pleased with how the margins have improved just by how we're executing on the... And the more we sell, obviously, the lower it goes because we're amortizing over a larger number of units. And that's gonna happen irrespective of whether we were to stay in Texas or whether we, you know, were to transition to the, to the CMO.
We understand. If I could just take that a step forward, forward a little bit. The company has already done just a tremendous job, and is now, or has demonstrated, generating positive adjusted EBITDA. How would you think about your next fiscal year, so fiscal 2025, and do you think there's a chance we might see free cash flow generation and potentially net income generation?
Yeah, great question, Roger, and we don't guide publicly, but what we have consistently pointed to is the fact that, look, we're gonna go from a significant cash burning situation, which is really where we were a couple of years ago, up until almost, you know, really a year and a half ago, to a company that's EBITDA positive, at least sporadically, to a company that's EBITDA positive consistently. And of course, you know, following that, you would think, you know, net income positive and cash flow.
And so again, you know, over $10 million in EBITDA for the RX segment, which you really should think about as the go-forward entity once consumer's wound down, call it the middle of this calendar year, and a little bit further out, you'll be fully wound down out of the, out of the Texas manufacturing facility. And again, you can, you can use the, use the math that I used earlier of, say, look, annualizing in the $20 million EBITDA range, and then improvement in margin on top of that on the basis of the tech transfer, and then just good old-fashioned top-line growth on top of that.
And that all sort of, you know, snowballs to, to yield, obviously, as volumes grow, gross to nets improve, gross margins improve, and these- this growth is all happening off of, you know, essentially static G&A, static sales and marketing. We don't need to add significant scale to grow these products just based on really how we operate through our RxConnect program. And so, what I'll say, without giving anything specific, is we don't think we're too terribly far away from positive net income and, and cash flowing. And the company, by the way, sits on, you know, a healthy cash, cash balance of, you know, over, you know, near $20 million when you look at our September, our September balance sheet. So very, very well-positioned.
And even with, you know, we had a little bit of a drawback on our pediatric products, and that, you know, the revenues took a hit based on some channel factors and some payer issues, which we're working through and, you know, encouraged by the most recent sort of numbers. Even with that sort of, I guess, bottoming out, so to speak, we're in a really, really good spot from a bottom line perspective and expect that we can get growth really across the portfolio from where we sit today. So yeah, really excited about what these next 12-18 months look like for us.
Very good. Besides what we're seeing in very nice and strong organic sales growth, is there any place in your thinking for potential acquisitions? And, you know, if so, what kind of acquisitions would you look for? And obviously, how might you pay for some, you know, such an acquisition?
... Yeah, great question. We're always evaluating various opportunities, and we'll look for things that, first of all, don't require any or significant cash upfront. We would look to bring in products like one we've brought in recently, whereby we would pay no upfront, do a supply, a transfer price or a supply deal, and then a royalty on sales. And we do have a product launch planned in the late fiscal 2024 timeframe. And it's an ADHD med. It's complementary. It's something we think will work very well through the network, offering some of the same advantages of predictability, of price and availability and so forth. And so we'll look for things that we can tuck into the network. We'll look for things that align to our therapeutic area of focus, which is psychiatry and pediatrics.
That's the areas that we compete in. Our sales force calls on ADHD specialists, many of whom are psychiatrists. They also call in pediatricians. So, we'll always be open to evaluating things that fit within that, and you can maximize your opportunities while you're in those physician offices. And having been a drug rep back many moons ago, you know, you could always talk two or three products in it, you know, at any given time, and so to have more than just the ADHD meds, and when more than just the pediatric multivitamins or antihistamine. So, so there's an opportunity for that. But we won't look for things that take meaningful dollars off the balance sheet.
We'll look for things that can be very efficiently tucked in, and we think this, this is the right time for us to, you know, potentially more assertively be looking for those types of things, you know, as we're on the brink of, you know, cash flowing the company.
Very good. I see we're starting to, like, close to the end of our allotted time. So if I can ask you one more question or kind of a couple of questions. How do you think about the current state of where the company sits, its future? What are the biggest value drivers here for Aytu? And, what really excites you the most about, you know, what we may see out of Aytu over the next couple of years?
There's a lot of things that excite me, Roger. I'd say most notably, just this turning of the corner from a financial standpoint, to think about where we were a couple of years ago in a significant cash burn mode, you know, always needing to raise capital, to now being so solid and so stabilized and, and in such strong growth mode, and with an eye towards cash flowing here in the near term. It's exciting to me to think that, you know, we're done relying upon the capital markets. You know, we're done with dilution, and we're able just to focus on driving the business forward, which clearly is, is being driven forward, particularly when you look at the ADHD meds.
I get really excited about obviously, the net effect of that, which in our business, if you are doing well financially, that means you're doing well to get those products into the hands of patients who need it. And so we're helping more and more patients by the day, and we're helping them through, you know, some frustrating times when they're not able to get their hands on the meds they've been on for potentially years, in many cases, years. And to be able to experience a new experience, not just a new product, but a new way of getting access to your medication, that's not a headache and a hassle, and it comes with a lot of predictability.
So the more that we can sort of spread that good news around, the better that is for the patients, the more patients we can help, and of course, the better we do. And you know, it's fulfilling to see, and we're not all the way through, but you know, I think we're sufficiently more than halfway through this metamorphosis. It's very fulfilling to look back on where we were and what we said we would do, and do those things. You fast-forward this thing another few quarters and to see it really fully get baked and presented to shareholders and stakeholders, that all right, here's a company that really has done what they said. They've transformed.
They've come out the other end really strong, really focused, and I just, you know, I like where things are positioned today. And it's a good time to be taking a look at Aytu just because, you know, if you look at sort of how we are positioned in the last couple of quarters and where we think that can go, from here, we think there's probably opportunity for people to realize real value as they, you know, start to evaluate investing in the company.
Well, Josh, thank you very much. I see our time is pretty much up. So I just wanted to thank you very much for taking the time to speak with us today. We greatly appreciate it, and it does sound like there's some phenomenal things that you guys are doing at Aytu. So thank you. And also, I just have to throw the commercial part in here. To anyone out there listening who has not already signed up for an Aytu one-on-one, please send me an email at weiss@lythampartners.com, or again, visit us at www.lythampartners.com/select2024, and click the One-on-One Meeting Request button, and we hope you all have a good time at the conference. Thank you.
Thanks, Roger, for having us. Appreciate your time.