All right. Hello everyone, and thank you all for joining us during the Lytham Partners Fall 2026 Investor Conference. Again, my name is Robert Blum, managing partner here at Lytham Partners. Up next, Josh Disbrow, Chief Executive Officer, and Ryan Selhorn, Chief Financial Officer at Aytu BioPharma, will be taking us through the company's slide presentation. As a reminder, Aytu trades under the ticker symbol AYTU on the Nasdaq. Josh, Ryan, thanks so much for your participation today. The floor is all yours.
Thank you, Robert. Great to be here and great to be speaking with some investors today. If you're hearing the story for the first time, you're certainly hearing the story about Aytu at a really important and exciting time as we just released last week some exciting results for our full year fiscal 2026 and our fiscal fourth quarter, which we'll talk about here in a little bit. At Aytu, we say we make medicines made for life, and we take that very seriously and have a portfolio of really important medications, inclusive of a new antidepressant called EXXUA that we recently launched and which is doing really well in the market. Just as a reminder, we may be making some forward-looking statements, and we may reference some non-GAAP information during the course of our presentation here. As I mentioned, we've got a portfolio of commercial products.
We are a commercial stage specialty pharmaceutical company. We specifically focus on commercializing differentiated brands in central nervous system conditions, and those brands are highlighted by EXXUA, which again is an antidepressant that we've recently launched and is really a first-in-class medication that stands apart from any other treatment on the market, and again, we'll talk about it. We also have a base business that consists of some mature ADHD brands called ADZENYS and COTEMPLA, and then a line of pediatric products. These products all in over the last 12 months, when you look at the 12 months ending June 30th, think of that as about a $57 million, $58 million portfolio of products highlighted by the ADHD brands. The ADHD brands have been de-emphasized in favor of EXXUA, which we've recently launched, as I said.
You can see some of the decline there that's attributable to both that lack of focus as well as one of the products, ADZENYS, does have a generic competitor which has been on the market for actually quite a while now, yet that competitor has only generated about 20% market share. So products are actually still holding on, still relatively sticky, and will really continue, we think, to provide a really solid foundation as we drive growth of EXXUA and get the company to profitability and cash flow. Some of that stickiness is really attributable to a program that we've developed in-house that's called Aytu RxConnect, and this is a second to none in-house developed patient access program that enables patients seamless and simple and easy access to our medications.
We put all of our medications on this platform. When physicians prescribe our products, they will typically send it to one of our preferred pharmacy partners, typically an independent pharmacy in their local area. Those pharmacies really take it from there to enable a seamless transaction and a guaranteed co-pay to, in the case of EXXUA, never exceed $50, which is also the case for ADHD medications. It is a program and a process that really enables stickiness and enables longevity. Patients come back month after month after month. These pharmacies are great at running prior authorizations. They are really good at hand-holding and really running through the process that insurance companies today require when getting branded medications prescribed and ultimately dispensed.
It provides patients and prescribers alike predictable, hassle-free, and affordable access to all of our medications. This is a program that, again, we have developed in-house from scratch. It has got a lot of bells and whistles. It is heavily back-ended through a data analytics platform. Ultimately, we are provided with fantastic insights down to the prescription level, to see pricing, to see reimbursement, and a host of other things to really give us great insight into the profitability profile of each of our prescriptions. Of course, we are able to follow on a de-identified basis, patient demographics to understand refill rates and stickiness. For sure, these patients are ultimately significantly more sticky when coming into the program and utilizing one of our pharmacies versus just a regular way retail pharmacy.
Physicians love it because it makes their lives easy. They can actually prescribe a brand and not have to worry about some of the dreaded hassles, including callbacks and so forth and so on. This is really some of the secret sauce that has enabled the success of both our legacy products as well as our newly launched product, EXXUA. To complement that infrastructure, we have got a full commercial infrastructure inclusive of about 40 territories around the country. We have recently undergone a small expansion such that we have now crept out a little bit west and have put territories in Colorado and Arizona and an additional territory or two in California. We are sort of making our way to a nationwide geographic spread and really are covering the waterfront.
We cover a significant chunk of the depression market now, given the fact that that is our focus and our chief commercial effort. We have a unique element in that we work with a contract sales organization. We are able to essentially try before we buy. We have sort of a rolling rollout with reps that come on through a contract sales organization. As those reps get up to speed and begin to get some success, we have the option, not the requirement, but the option to bring those reps on as full-time W2 Aytu employees. We have done that already with our first tranche. We are looking at our second tranche of reps and have really had some good success evaluating these reps and again, kind of a rent or try before you buy scenario.
Some of these reps in real time have come on board and become some of our higher-performing in-house reps. We intend to do that. It's a great way to cut the risk, minimize the expense, and ultimately identify the very best reps before you bring them on board on a full-time basis as an Aytu employee. Now really moving to what is and will continue to be the centerpiece of our commercial efforts, and that's EXXUA. It truly is an entirely new way to treat major depressive disorder. It's a first-in-class product. It is not a selective serotonin reuptake inhibitor, so it's not an SSRI like a Lexapro or like a Prozac. It is what's called a 5-HT1A agonist.
It does truly stand alone in that it is the first and only 5-HT1A agonist ever approved for the treatment of major depressive disorder or depression. It's got strong efficacy in multiple clinical studies, inclusive of course, two phase III pivotal studies done with hundreds of patients each, and thousands of patients studied over the course of the development of this product over many years. It's ultimately a product that works differently than anything else on the market. It does not broadly inhibit serotonin reuptake. It activates a single serotonin receptor, the 5-HT1A, or more simply the 1A.
By virtue of only targeting that 1A receptor and agonizing it both presynaptically and postsynaptically, it turns on the key mood centers in the brain without having any of the off-target effects, and most notably, it does not cause any sexual side effects, and it does not cause any statistically significant weight gain. Those are two of the most problematic side effects associated with antidepressants today, and the fact that EXXUA causes neither really makes it stand apart. It's this novel mechanism of action that really has gotten physicians and patients excited about having something new for the first time in many years and something that really does work differently. Importantly, this is a huge market, $22 billion, 21 million patients annually. Almost 350 million prescriptions of antidepressants prescribed in the U.S. alone every single year. It's a big market. It continues to grow.
This is a product that's patented through at least 2030 with the opportunity for additional indications and additional IP. Really unique in this market, a handful of markets in the U.S. really have mandated coverage from the government through the Medicare Modernization Act. Patients that are treated for major depressive disorder essentially have open access on government plans. That's Medicaid, Medicare, TRICARE, et cetera. That's a significant chunk of this market. 30%-40% of the depression market is covered by government payer plans. That has an opportunity to really help us and buoy what we call gross-to-nets or our net selling price.
When you think about the opportunity from a commercial perspective, if you lay side by side our ADHD portfolio with this product, EXXUA, you are talking about pricing power five to seven times higher in this category, specifically with EXXUA. Really a unique opportunity from a commercial perspective. By the way, we are seeing that reimbursement come in very, very strong. We are seeing approval rates on both the commercial and the government side come in well. A lot of positive things to talk about with respect to EXXUA, and most notably the fact that when you are talking about a product like this, it is not a product that treats a small niche of patients. When patients are interviewed and when you look at clinical studies, up to 72% of patients complain of treatment-emergent sexual side effects.
That means sexual side effects or sexual dysfunction caused by their antidepressant, and that is a huge number. Within the top five of almost every psychiatrist list of issues with the SSRIs, sexual dysfunction is in that top five, as is weight gain, and 65% of patients will complain of weight gain, and that is seen broadly across multiple studies. There is also a component of anxiety that accompanies depression. Because of this unique mechanism of action, it agonizes or upregulates the 5-HT1A serotonin receptor that also has impact on relieving anxiety symptoms. In fact, the only other 5-HT1A approved by the FDA historically is an anti-anxiety agent, but it never demonstrated efficacy in major depressive disorder.
When we bring this mechanism of action up with psychiatrists all over the country, they very often get the connection that, okay, I see that it is indicated for major depressive disorder, but why would not it also hit some of the anxiety symptoms as well? The answer is, it does when you look at those subscales and when you look at standalone anxiety as well. Really important that you potentially get a one-two punch with this product that again, it is indicated for MDD in adults, but has some impact elsewhere, most notably on some of the anxiety components of the disease. Clearly, this product had to demonstrate efficacy, as was seen in two randomized placebo-controlled studies conducted all over the U.S. at some major centers. These studies were actually conducted many years ago, but it is important to note that you get early separation from placebo.
You see within really two weeks of initiation and really one week post titration initiation, you are getting substantial reduction in major depressive disorder symptoms, and that is obviously sustained throughout the full three-week study, and so really important to see. Importantly as well, when you look at the anxiety components, you see separation even earlier at about one week, which is essentially as titration is still underway. You are getting great benefit with respect to symptomatic improvement, and you are getting it relatively quickly, which is something that physicians do not necessarily expect in the context of major depressive disorder treatments. Again, very important that this is the only product in the category that does not carry a warning around the risk of sexual dysfunction and demonstrates no significant weight gain. That is really important. A very good tolerability profile with only 7% of patients discontinuing treatments.
When you look at things that are noteworthy in the PI, like nausea and dizziness, a very, very small percentage withdrew from the studies as a result of those. So really not problematic, demonstrating that they are very mild and transient in nature, which is exactly what we are seeing in the real world. It is really important. To sum up EXXUA, it has a very clear profile, a very clear position in the market, and very clear differentiation in that it is truly one of the only products out there that is novel. Again, it is not an SSRI. It does not bathe the brain in serotonin and numb the body. Again, no impact on sexual function, weight neutral, once daily dosing, which is favorable to one of the competitors that has recently launched over the last few years called Auvelity.
It really does stand apart, has a really nice market position, and we are really seeing the evidence of that as we look at prescriptions as well as factory shipments. Both of these are important because we base our revenue off of shipments, and so it is important that we note those to lead investors to a more logical conclusion in terms of what potential revenue is. Really, what we look at on a day-to-day basis is underlying demand, which is prescription demand. You can see since launching the product in mid to late December, really, really nice trajectory and a nice uptick here in August, which really tends to be a slow month as we sort of enter the dog days of summer. I will say, we are really looking at a nice September with prescriptions, almost reaching 400 prescriptions for the week ending September 4th.
As we are speaking here today, some of the most recent data that we have seen demonstrating an even continued climb, and that has really been with some re-optimization of our sales force, which we spoke to on our earnings call last week. Real quickly before I hand it to Ryan, also have a legacy portfolio. These are products that have been stable, relatively speaking, and really think can continue to really drive significant revenue and support the business as we launch and grow EXXUA. You can see, even with us pulling promotion of the entire portfolio, particularly on the ADHD side, have remained relatively stable. Yes, prescriptions are down, but really demonstrating the stickiness that is afforded by the Aytu RxConnect platform, and so it is something that excites us to know that both TRx are hanging on, relatively speaking, and pricing actually has held on very, very well.
With that, let me hand it over to Ryan, and we can wrap things up. Ryan?
Thanks, Josh. Returning to our financial performance, fiscal 2026 net revenue was approximately $57.6 million, reflecting our contributions from our established ADHD and pediatric portfolios, as well as the initial launch of EXXUA. While revenue was lower than prior years as we navigated generic competition in ADHD and invested in the EXXUA launch, we believe these investments position the company for future growth. On the profitability side, adjusted EBITDA was a loss of $3.7 million in fiscal 2026. This result reflects deliberate investments in the commercialization of EXXUA, including salesforce expansion, market access initiatives, promotional activities designed to establish the brand in the large and growing MDD market. As we move forward, our objective is to leverage our existing commercial infrastructure that drive the continued EXXUA prescription growth and improve operating leverage across the organization.
We believe the combination of a growing EXXUA franchise and a disciplined expense management creates a compelling path towards enhanced financial performance over time. Looking at our balance sheet, we ended fiscal 2026 with $26.3 million in cash and cash equivalents and $61.8 million in total current assets. Our total liabilities were approximately $69.7 million, including $17 million of borrowings comprised of our term debt, which is amortized monthly, and a revolving credit facility with availability of up to $14 million.
Overall, we believe our balance sheet provides the resources necessary to support the continued commercial expansion of EXXUA while maintaining financial flexibility and disciplined capital allocation. Our focus remains on maximizing the value of our existing portfolio, driving EXXUA growth, and creating long-term value for shareholders. I would like to thank everyone for their interest in Aytu, and at this time, I am going to turn it back over to Robert.
Fantastic, guys. Thanks so much for your participation. Thank you, of course, to everybody for watching here. If you would like to schedule a meeting with Aytu, either throughout the conference or here thereafterwards, shoot me an email. That is blum@lythampartners.com. Of course, to learn more about Lytham, make sure to visit our website, stay connected with us on LinkedIn, and subscribe on YouTube, so you can stay apprised on future events such as the recording here with Aytu. We hope you all enjoy the rest of the conference. Have a great day. Josh, Ryan, thanks so much for participating.