OptiNose Reports 24% Revenue Growth to $18.5 Million in Q1 2025 Amid Increased Losses

OptiNose, Inc. reported its financial results for the first quarter of 2025, revealing a net product revenue of $18.5 million, a 24% increase from $14.9 million in the same period last year. The growth in revenue is attributed primarily to the recent FDA approval of XHANCE for the treatment of chronic rhinosinusitis without nasal polyps, which has expanded the market potential for the product. Despite the increase in revenue, the company reported a net loss of $22.4 million, compared to a loss of $14.1 million in the first quarter of 2024. This increase in losses is largely due to higher selling, general, and administrative expenses, which rose to $23.6 million from $20.5 million, driven by costs associated with the product launch and legal fees related to ongoing merger litigation.

In terms of operational metrics, OptiNose reported approximately 71,300 prescriptions for XHANCE in the first quarter of 2025, marking a 9% increase from 65,500 prescriptions in the first quarter of 2024. The company also noted a 14% increase in average net product revenues per prescription, which rose to $260 from $227 year-over-year. The total number of physicians prescribing XHANCE increased by 4% to 8,767, with a notable 24% increase in the number of physicians who had more than 15 prescriptions filled by their patients.

Strategically, OptiNose is in the process of merging with Paratek Pharmaceuticals, with a special stockholder meeting scheduled for May 16, 2025, to vote on the merger agreement. Under the terms of the merger, shareholders will receive $9.00 in cash per share, along with contingent value rights tied to future sales of XHANCE. The merger is expected to close around May 21, 2025, pending stockholder approval. Additionally, the company has implemented a central intake pharmacy model to enhance patient support and streamline prescription fulfillment, transitioning a significant portion of its business from a preferred pharmacy network to this new model.

Financially, as of March 31, 2025, OptiNose had cash and cash equivalents of $72.9 million, down from $84.5 million at the end of 2024. The company has a working capital deficit of $63 million and is subject to various financial covenants under its debt agreements. Management has expressed concerns about its ability to maintain compliance with these covenants, particularly regarding minimum trailing twelve-month consolidated XHANCE net sales and liquidity requirements. The company anticipates needing additional capital to fund operations and meet its obligations, raising substantial doubt about its ability to continue as a going concern beyond the first quarter of 2026.

Looking ahead, OptiNose plans to enhance its commercial performance to drive revenue growth and is exploring partnerships to expand the market for XHANCE. The company is also required to conduct clinical trials for XHANCE in adolescent patients as part of its FDA approval conditions. The management remains focused on optimizing its operations and addressing the challenges posed by market conditions and regulatory requirements to ensure the long-term viability of the business.