Aytu BioPharma (NASDAQ:AYTU) reported a wider loss for its fiscal third quarter as the company shifted commercial resources toward the launch of EXXUA, its treatment for major depressive disorder, while revenue from its legacy ADHD and pediatric portfolios declined.
On the company’s fiscal 2026 third-quarter earnings call, Chief Executive Officer Josh Disbrow said Aytu is still in the early stages of the EXXUA launch but described initial prescribing trends as “highly encouraging.” Chief Financial Officer Ryan Selhorn said EXXUA contributed $2.4 million in net revenue during the quarter ended March 31, 2026, ahead of the company’s internal expectations.
EXXUA Launch Shows Early Prescription Growth
EXXUA, which Disbrow described as the first and only selective serotonin 5-HT1A receptor agonist approved by the FDA for the treatment of major depressive disorder in adults, generated more than 1,300 prescriptions during the quarter. Monthly prescription volume increased from about 200 in January to about 400 in February and more than 700 in March. Disbrow said the momentum continued into April, when more than 920 prescriptions were written, representing 26% sequential growth from March.
The company also reported more than 1,300 units shipped in April, which Disbrow said represented 51% sequential growth and exceeded prescriptions generated during the entire fiscal third quarter.
During the quarter, more than 450 unique prescribers wrote EXXUA prescriptions. Disbrow said Aytu’s initial target universe includes approximately 3,500 to 4,000 prescribers, meaning 10% to 13% of that target group had written the product at this early stage.
Gross unit sales for EXXUA totaled 3,335 units during the third quarter, including 1,807 30-count units and 1,528 titration units. Since launch, total gross unit sales were 3,881 units, including 1,991 30-count bottles and 1,890 titration units.
Company Highlights Access Strategy and Early Feedback
Disbrow said Aytu is focusing its EXXUA launch on high-prescribing psychiatry practices rather than broad promotion. The company is using its Aytu RxConnect platform to support patient access, including a no-cost 14-day titration pack and guaranteed access through the early treatment period for commercially insured patients.
Disbrow said early signs on coverage and reimbursement were “extremely positive” across commercial and government payer channels. In response to an analyst question, he said prior authorizations in the Aytu RxConnect network were being approved at a rate of more than 70%, though he cautioned that the numbers remain small and early.
The CEO also said Medicaid and Medicare prescriptions are becoming a larger portion of overall prescription volume, though coverage requirements vary by state and plan. He said Aytu has seen prescriptions in 41 or 42 states, including some where the company does not have a physical sales presence.
Management also pointed to early refill activity as an encouraging sign, although it did not provide a specific refill rate. In the question-and-answer session, Disbrow said the company is “very” pleased with the percentage of patients moving from titration packs to full 30-day supplies, but said it is too early to provide longer-term conversion expectations.
Quarterly Revenue Falls as Legacy Portfolios Decline
Total net revenue for the fiscal third quarter was $12.4 million, down from $18.5 million in the prior-year period, a decline of $6 million, or 33%.
- EXXUA: $2.4 million in net revenue.
- ADHD portfolio: $9.1 million in net revenue, compared with $15.4 million a year earlier.
- Pediatric portfolio: $0.9 million in net revenue, compared with $3.1 million a year earlier.
Disbrow said the ADHD decline was driven primarily by the company’s strategic shift in sales force focus toward EXXUA and some impact from generic competition for Adzenys. He said uptake of the third-party generic has been “quite low,” reaching about 14% market share after more than four months of availability.
Selhorn said the pediatric portfolio was negatively affected by payer mix, which led to higher rebates, as well as increased returns. Both executives said the legacy portfolios continue to generate cash and provide a foundation as Aytu invests in EXXUA.
Loss Widens Amid Launch Spending
Gross margin was 61% in the fiscal third quarter, compared with 69% in the same quarter last year. Selhorn said the quarter included a $700,000 inventory write-down recorded to cost of goods sold, primarily tied to the shift from branded Adzenys to an authorized generic. Excluding the write-down, gross margin would have been approximately 67%.
Operating expenses excluding amortization of intangible assets were $10.9 million, up from $9.5 million a year earlier. Total operating expenses were $11.7 million, compared with $10.4 million last year. Selhorn said the increase reflected planned EXXUA launch investments, partially offset by operational efficiencies including lower facilities expense.
Aytu reported a net loss of $5.6 million, or $0.53 per basic share, compared with net income of $4 million, or $0.65 per basic share, in the prior-year period. The latest quarter included a $1.3 million non-cash derivative warrant liability loss, while the prior-year quarter included a $2.3 million non-cash derivative warrant liability gain.
Adjusted EBITDA was negative $2.8 million, compared with positive $3.9 million in the year-ago period. Selhorn attributed the change mainly to planned EXXUA launch investments, lower revenue and gross profit from the ADHD portfolio, and payer-related pressure on the pediatric portfolio.
Cash Position and Spending Outlook
Aytu ended the quarter with $26.7 million in cash and cash equivalents, compared with $30 million at Dec. 31, 2025, and $31 million at June 30, 2025. The company had a revolving line of credit balance of $10.4 million and total debt of approximately $11.4 million as of March 31.
Selhorn said Aytu amended certain warrants at quarter-end, which reduced warrant liabilities and increased stockholders’ equity by $26.4 million. Stockholders’ equity was $35.1 million at March 31, up from $14.2 million at Dec. 31.
Looking ahead, Selhorn said Aytu plans to launch online promotional campaigns in the fiscal fourth quarter, including paid search, programmatic display and social media advertising. He said those efforts could increase sales and marketing spending by $1 million to $2 million depending on scope and impact. The company also expects higher spending on speaker programs, medical education content and conferences, which could raise general and administrative spending by $200,000 to $300,000 in the upcoming quarter.
Aytu did not provide formal guidance. Selhorn said the company continues to view mid- to high-60% gross margins over time, disciplined operating expenses and a path to profitability as EXXUA revenue builds on the existing platform as the appropriate framework for the business.
About Aytu BioPharma (NASDAQ:AYTU)
Aytu BioPharma, Inc is a specialty pharmaceutical company focused on the development, licensing and commercialization of novel therapeutics to address underserved medical needs. Headquartered in Englewood, Colorado, Aytu pursues a strategy of acquiring late-stage or approved products in areas such as urology, endocrinology, women’s health, pediatric care and supportive therapies. The company leverages in-house commercialization capabilities and targeted business development to build a diversified portfolio of prescription medicines and diagnostics.
Aytu’s marketed portfolio includes Natesto, a nasal testosterone gel for treatment of male hypogonadism; ZolpiMist, a zolpidem tartrate lingual spray for the short-term treatment of insomnia; and Tuzistra XR, an extended-release cough syrup formulation indicated for relief of cough and upper respiratory symptoms.
