Evolus at Needham Conference: Strategic Launch of Evolisse

On Tuesday, 08 April 2025, Evolus Inc. (NASDAQ: EOLS) presented at the 24th Annual Needham Virtual Healthcare Conference, outlining both their achievements and upcoming challenges. The company highlighted the imminent launch of their new hyaluronic acid injectable gel, Evolisse, while addressing market competition and tariff impacts.

Key Takeaways

• Evolus is set to launch Evolisse in Q2, targeting existing and new accounts.
• Achieved profitability in 2024, with a revenue guidance of $345 to $355 million for 2025.
• Evolisse aims to differentiate through unique technology and marketing strategies.
• Evolus holds a 14% market share in the neurotoxin segment.
• The company is considering expanding its product line with bio-stimulatory fillers.

Financial Results

• Evolus surpassed expectations by achieving profitability in 2024, a year earlier than planned.
• The company projects 2025 revenues between $345 million and $355 million, with 8-10% attributed to Evolisse.
• A cash reserve of $87 million positions Evolus to repay debt comfortably.
• Revenue growth has consistently exceeded 30% over the past five years.

Operational Updates

• Evolisse will launch in the second quarter of 2025, with an event planned for April 18.
• The product's crosslinking technology preserves the hyaluronic acid structure, offering superior results to competitors.
• Evolus will leverage its co-branded media offerings to market Evolisse, particularly to weight loss patients using GLP-1.

Future Outlook

• Evolus plans to continue targeting millennials, emphasizing the cash-pay cosmetic market.
• The company is exploring the addition of bio-stimulatory fillers to its portfolio.
• Despite a flat filler market forecast for 2025, Evolus remains confident in its growth trajectory.

Q&A Highlights

• Jeuveau faces potential tariffs, while Evolisse is already subject to tariffs as it is imported from France.
• The company is rolling out Club Evolus, a subscription program, to enhance customer loyalty.
• Evolus's marketing strategy focuses on the resilience of toxin procedures, even during economic downturns.

For more detailed insights, readers are encouraged to refer to the full transcript below.

Full transcript - 24th Annual Needham Virtual Healthcare Conference:

Serge Belanger, Healthcare Analyst, Needham and Company: Hi. Good afternoon. I'm Serge Belanger, one of the health care analysts at, Needham and Company. Wanna welcome everybody to, day two of, the Needham Healthcare Conference. And for our next fireside chat, we're happy to have the the Evolus team with us.

And from the company, we have Sandra Beaver, the CFO, as well as Rui Avalar, who's the the company's chief medical officer. So I'll hand it over to, Sandra and Rui to give us a a quick overview of of the company before we proceed to to q and a. Just wanna highlight to the audience that we do have the capability to take questions. You can submit those on the portal that hopefully you're watching this present this fireside chat on. So with that being said, I'll hand it over to to Sandra and Rui.

We can get a kind of an overview of the company for those who aren't familiar with Evolus.

Sandra Beaver, CFO, Evolus: Thanks so much, Serge, and thank you for having us at the conference. It's a pleasure to be able to be here again this year. I'm Sandra Beaver. I'm the chief financial officer for Evolus. I've been here for about three years.

Evolus is a performance beauty company, so we are our flagship product is a neurotoxin called Jeuveau, and we're operating in the space where we sell a consumer good through a learned intermediary. We're unique in our category and that we are dedicated to cash pay cosmetic use of the neurotoxin and that we offer a differentiated way of going to market for our customers than anyone else because of that cash pay focus. So we have cobranded media offerings that we give our our our customers. We have a separate consumer loyalty program. So we've built our entire infrastructure around this cash pay advantage, and it's enabled us to get to 14% market share today on the neurotoxin.

We're excited to launch our second product in the portfolio called Evolisse, which is a hyaluronic acid injectable gel, and we'll be launching that here in the second quarter.

Serge Belanger, Healthcare Analyst, Needham and Company: Great. So maybe we'll start off with the topic du jour tariffs. I know pharmaceutical products have been exempted so far. I think there are significant expectations that that's only temporary. So just curious how, obviously, we don't know what they would look like, but if they were to, if we were to see tariffs on pharmaceutical products, what would be the exposure for for Evolus?

Sandra Beaver, CFO, Evolus: Yeah. So as I mentioned, our flagship product is neurotoxin Jeuveau. Jeuveau is manufactured in South Korea and imported into The US. So we would be exposed to any tariffs that may come about on pharmaceuticals for that import. Although to your point, as of now, pharmaceuticals are exempt, so we have no no impact today.

We do also have our hyaluronic acid injectable gel that is imported from Europe. So it comes from France, which is currently subject to a tariff because it is not a pharmaceutical, so it is not exempted. The impact to our 2025 financials is relatively immaterial. Given that we're launching that product here in the second quarter, we don't have a meaningful exposure in our overall revenue. Right?

We've guided to 345 to 355,000,000 of revenue this year, of which eight to 10% will come from Evolise, the filler line. So we're talking a 30 to $35,000,000 of revenue at a roughly 70 percent margin. You can sort of back into that exposure there. So we're we're pretty comfortable with where we sit now. Obviously, like everyone, we're watching very closely to see what this administration does next, and and we'll manage that information as it comes.

Serge Belanger, Healthcare Analyst, Needham and Company: Okay. Maybe we'll start with the the Evolise upcoming launch. I think you talked about second quarter or early second quarter. I noticed on your website, there's kind of a some event planned for April 18. So I imagine shortly after that, that that's when product will become available.

Maybe you can just describe it and how it's differentiated among other other fillers.

Sandra Beaver, CFO, Evolus: I really can.

Rui Avalar, Chief Medical Officer, Evolus: Sure. We have a hyaluronic acid injectable. And, you know, just to kinda base set everyone, hyaluronic acids, when they're in the syringe, they just, like like a liquid or a gel, yet they can do very profoundly different things. Some can be very soft, very supple. Some can be more structural, almost create, not just volume, but structure, like lift the tissue.

You go to sleep, sleep on it, wake up in the morning, and it bounces back. And, you know, one would think, well, how does a gel, also a fluid, do that? And the underlying technology, if you will, is hyaluronic acid, which was invented by mother nature. It's a natural structure. And if I were to describe what the differentiation is in our technology versus others, it really anchors around the crosslinking step.

These hyaluronic acids, when there is a single strand, are soluble. They don't they don't create the structure I've just described. You have to crosslink them to give them these properties. And when you cross link them, you take this molecule, a cross linker. And to activate that cross linker, you have to take it to a very high pH, like twelve, thirteen.

And under that caustic condition, that natural will start to fragment. Now industry has typically used heat to facilitate that reaction. Heat meaning room temperature, 70 degrees, or more typically higher, like in the hundred degrees range. And that compounds that fragmentation. That thermal energy exacerbates the fragmentation.

What Cimatase did was they figured out how to do that cross linking step and remove all the thermal energy out of the system. In other words, they do this cross linking step at near freezing temperatures. And when you do that, you do a better job of preserving BHA structure. You actually need less BDDE to, to get that same rheological, form that you desire. And then, you know, potential benefits are, you know, maybe this withstands more, abuse, if you will.

And on the benchtop, certainly, we've shown that, through a variety of different ways. But ultimately, what happens in the clinical studies is what matters. And there, what we saw was we went against an active control, one of the gold standards. We went against Restylane lidocaine in the nasolabial folds here in The United States and in Europe. And what we showed was that our product, first hit non inferiority.

And statistically, as, you know, in in compliance and in agreement with the FDA guidance, that data also showed statistical superiority and a p value of less than point zero zero one. What's also interesting is if you look at the results and the amount of correction over the course of the year, at every single data point with form, we were able to show statistical significance. And even with smooth, that softer product, where 20% less product was used, we still showed always numerically a better number, if you will, or higher number, and it still hits statistical significance at a couple different data points. So we believe that speaks to the fact that if you preserve or do a better job preserving that natural structure, you may get a gel that's more efficient and and seems to work very well.

Serge Belanger, Healthcare Analyst, Needham and Company: Okay. And could could that impact the duration of the the effect for the product?

Rui Avalar, Chief Medical Officer, Evolus: So at every data point, we always have more responders. So by definition, that that'll be a longer duration.

Serge Belanger, Healthcare Analyst, Needham and Company: And when this becomes available, how do you think doctors will will sell this to a patient? Is does it look better, more natural look? Obviously, duration is another point, but is the natural look kind of the the selling point that they could use for this differentiation?

Rui Avalar, Chief Medical Officer, Evolus: It's an excellent point. I mean, if doctors think about using these gels and they think about clinical efficacy, how well does it work, and they think about adverse events. So if I think about it from an adverse event profile, you know, we the the study was pretty clean. It was in line with what you'd expect from a filler. If I think about the outcome, certainly, one of the consistent things that we heard is you get a very natural outcome when you use these products.

And in our label, we actually have you know, that this can be used for dynamic wrinkles and folds also. So in the areas in the face where, you know, it's moving and it's dynamic, our label also ascribes to that. And then interestingly enough, in particular in the patient labeling, we have something that's very unique. We are the first, and at this point, the only, that actually talks about being, that wrinkles that are, wrinkles that are caused by weight loss, such as GLP ones, you can use this product.

Serge Belanger, Healthcare Analyst, Needham and Company: Okay. So I'm curious with the differentiation if the the method of use or the injection procedure, will be different and if it it requires training for for the physicians.

Rui Avalar, Chief Medical Officer, Evolus: Well, I'll start with the the first part and then go to the training. The the nice thing about the these gels, and we got it pretty consistently from all the investigators, they've said that the gel is very forgiving, very forgiving in the sense that it seems to have a very low inflammatory index. So, what they're sharing with us is you can go more superficial than you would think and, and still be able to get get away with it. So if anything, you probably have more degrees of freedom using this gel because of that feedback. And then in terms of training, you know, when you look at gels, this is the kind of thing where, training and hands on experience is is really how it gets adopted.

The injectors need to try the product. They need to sample it. They need to see what it looks like on the benchtop. They need to inject it. They need to inject a select number of patients first to understand, you know, how much gel do you get and how that correlates with how much correction.

Little things like, you know, can I massage it? What can I do with it? What does that outcome look like? So they really need to experience it, and, typically, they would do it on, you know, a trusted group of patients or staff or on themselves. That's a typical cadence.

And then, we're obviously, we've invested heavily in training, and we have staff that can do it. What is somewhat differentiated from our organization and others is our medical affairs group are all clinicians. So we refer to them as medical affairs clinicians as opposed to medical affairs liaisons who tend to be scientists. Our medical affairs staff all inject. So when they come in and they actually do a training, they have a tremendous amount of credibility because they've actually used these products and know how to inject and instruct.

Serge Belanger, Healthcare Analyst, Needham and Company: And going back to the, the obesity language that's in the in the label of the the approved label, just curious if that's something you can leverage and further differentiate yourself from the other filler offerings. You know, I I think the, GLP one usage has kind of been seen as a tailwind for fillers, so I think it'd be a nice opportunity. But just curious if the language allows you to, to do something on the marketing side.

Rui Avalar, Chief Medical Officer, Evolus: Yeah. I'll turn that over to Sandra. It's probably better to speak to that.

Sandra Beaver, CFO, Evolus: Yeah. I think as you know, one of the things that differentiates us in the market in general is our cobranded media offering. Right? So the ability to offer TV campaigns, billboards, and social campaigns for practice that's branded with our product as well as the practice. This label allows us to put weight loss in those campaigns.

it will allow the So it will allow the practice to directly market to weight loss patients the Evolise product. And knowing that many of these patients, after achieving their optimal weight loss, this is the most likely next procedure that they're considering is returning that volume to their face, right, the thing that that everyone sees most. And the filler or the hyaluronic acid injectable gel is that option for them. So being able to put out a billboard or even just a counter campaign in practice that says, hey.

Did you just lose weight from GLP one? We've got a great product for you, Avalise, I think is a real benefit to the practice to start bringing those patients in and start getting that engagement on their additional products.

Serge Belanger, Healthcare Analyst, Needham and Company: Right. And then in terms of the the market opportunity for fillers, I guess, how does it compare to the toxin market in terms of, you know, the number of competitors there and where the unmet need is that I think you'll you'll try to be you'll you'll you'll be trying to fill?

Sandra Beaver, CFO, Evolus: Yes. So the the competitive set in The US for the filler and the toxin is very similar in the sense that you have much the same players and sort of the same number of players. You have five toxins, and then you have sort of five families of fillers. The makeup of the share in the markets are are a bit different, and the size of the markets are a bit different. So the toxin is about a $2,700,000,000 US market.

It's dominated by Botox. Second to that is is Dysport. We're in the third position for share, only five years on the market. So we've eclipsed some of the other players that are in the the bottom sort of low percentage range, and we're at about 14% share. In the filler market, you have Restylane and Juvederm, the Galderma and AbbVie products, kind of sharing the top of the market.

So they're in this range of about 40% share each, and then you have the other few players kind of keeping that remaining less than 20% amongst them. This product with its positioning and and the rheology that Rui has outlined really has the opportunity to compete in a meaningful way. It's the next generation product of wrestling, with those top players in this market. And you don't have the same brand recognition in the filler market that you do in the toxin market where Botox is synonymous with the procedure, not just the brand. There's a lot more flexibility for the customer and for the patient in considering alternatives in the filler space.

It's about a $1,800,000,000 US market, so it is a bit smaller than than the others. When you go outside of The US, however, there's much more choice when it comes to filler in our European markets. However, it is still dominated by a few players that carry most of the share. There's over a hundred fillers available in Europe, whereas you have almost the same market on toxins.

Serge Belanger, Healthcare Analyst, Needham and Company: Got it. And then in terms of trying to build usage of of a new filler like like Evolise? Is it just a question of getting it in the hands of injectors and letting the having them gain some experience with it, or the bundling strategy is a is a big focus for for Uptake?

Sandra Beaver, CFO, Evolus: I think the predominant focus for uptake is education. Right? It's getting them confident and comfortable with the product. These products, whether you're talking about the toxin or the hyaluronic acid injectable gel, they're chosen first based on clinical patient outcomes. Right?

You want your patients coming back to your practice. You want them happy with the results that they're getting from these products, and the confidence that injectors have in giving their patients quality results is by far the first thing they consider when making a purchase decision for these products. Price is very much secondary to that. So quality, I think, will lead the decision out of the gate. But, obviously, we think about how we position ourselves competitively, and and it's not just price in our case.

Right? It's the entire value proposition that we offer. And Evolisse will drop right into the bag with Jeuveau where you're going start earning cobranded media. You're gonna get consumer loyalty. You're gonna get this suite of offering that that Evolus brings to the table that's differentiated across both products.

So that benefit will accumulate right on Evolus from the launch just like it does today on Jeuveau. And the pricing for these products, you know, Evolisse will remain at a competitive pricing to the the top of the market, and I think it will stand on its own.

Serge Belanger, Healthcare Analyst, Needham and Company: K. And I guess in terms of launch strategy, you know, how does this take place? You just add it to the bag and go back out into the field, or, you go back to existing accounts and reintroduce the introduce a new product? Just curious how what is being planned right now for for the initial launch of the product?

Sandra Beaver, CFO, Evolus: Yeah. Almost all of our customers have expressed interest in trying this product. Right? So our highest value accounts are a very obvious place for us to start with the product adoption and getting that product to them and getting them that opportunity to be trained and to get used to this product is our highest priority as the first thing to do in the launch. Having said that, this certainly does open up opportunity for us to approach accounts that maybe weren't considering Evolus because we only had one product.

Right? So we'll we'll have a team of sales reps that are dedicated to going to new accounts that are high value accounts that we could maybe get to make a switch decision on the combination of products that we couldn't get to make on the individual one. We do expect that the addition of new accounts will moderate because we will focus first on getting our existing customer base access to Evolese, And so we may add slightly less accounts than we typically have historically as we go through the rest of the year. But the opportunity is is exists in both. Right?

Whether we look at new customers or our existing customers.

Serge Belanger, Healthcare Analyst, Needham and Company: Okay. And I think in the past, the the launch of the RHA fillers by by Revance was kind of being looked at as a proxy of what Evolus could look like. Just, Chris, what what your thoughts are on that? I I know Revance was at a different stage than where Evolus is now when they launched the product, but just curious on your thoughts on that that that proxy.

Sandra Beaver, CFO, Evolus: Yeah. I mean, I think it's the only one available, so it's a very natural comparison for people to draw. There's not another, recent launch of a a filler that you can use as a proxy. What we've done is we've modeled our launch at what I'll consider a discount to the performance of RHA. So if you think about our guidance and you look at RHA based on the market in which they launched and the share that they gained in that market at their launch, our expectation is to gain less share slower than they achieved.

There's some nuances between the difference of where the companies are at as well. TEOXANE had RHA available in Europe. They there was commercial experience with that product when they went into that launch. We don't have that benefit. However, we do have a an install base, so to speak, of over 15,000 customers, and they started with none.

So there's some puts and takes if you think about what the advantages are that either one of us had entering the market. But to be prudent, we've sort of taken an uptake that's a bottoms up approach like we do with all of our planning on how we would execute with high confidence the ability to achieve this guidance, and we like to leave ourselves the opportunity to to overachieve. Right? So if we were to perform consistently with RHA, that would be in excess of our guidance. Another important note is we actually did also model this at a discount to our own performance with the toxin.

And so if we were to achieve similar, adoption rates with the toxin that we did with the toxin, you would still see some upside in terms of our projections.

Serge Belanger, Healthcare Analyst, Needham and Company: Got it. Okay. So we're gonna see the The US launch of Evolese, I guess we can call it imminent now. But just curious on the you also have the European rights to the same products. They are approved.

What are your plans for the the European launch of the fillers? So,

Rui Avalar, Chief Medical Officer, Evolus: right now, in Europe, 1 of the things that we're really trying to get is some feedback in terms of how these fillers perform in the real world. They're the the full portfolio is approved. So we're starting a program there where we're going to put it into the hands of select, folks, select injectors that we know and, and and try to bring that experience then back to The United States. So it's gonna be a much more metered rollout. And if you wanna speak to the formal Yeah.

Sandra Beaver, CFO, Evolus: We'll we'll target the back half for a more formal commercial launch. The product is obviously available. Right? And it is a great opportunity for us to learn from the European market. Keep in mind, the European market is about a $600,000,000 market compared to the $1,800,000,000 US market, and it's a lot more crowded.

Right? So the market opportunity there is a bit different, and so we've prioritized The US launch for that reason. But we also have a great KOL network there that will be of high value to us in getting a better understanding of the product, and we'll be leveraging that immediately.

Serge Belanger, Healthcare Analyst, Needham and Company: Okay. So let's move on to to Juvo. I think the the bellwethers in this space, the the Avies and Galdermas have, kind of indicated they were expecting, was it, like, mid to high single digit growth for for this year and the next few years? Just curious if you think that will change given the the macro environment that has has worsened since the last couple months since they they reported those numbers.

Sandra Beaver, CFO, Evolus: I'll say our view was consistent with theirs in the sense that when we gave our guidance in early January, we anticipated a high single digit growing market, and we also anticipated a flat share from our product, Jeuveau. So at the time, we actually were projecting share right around 13%, and that's where we thought we were in the fourth quarter as well. What ended up happening after we reported our our preannouncement is we got information that from AbbVie and Galderma is they reported their own earnings that triangulated to a slower growing market in the fourth quarter than we had anticipated. And what that meant is we actually had a higher share than we expected. So we were closer to 14% when we exited 2024 as opposed in the the 13% range, and the market was growing at a much slower rate.

Right? So as we're starting to see some of that persist into 2025, and, obviously, there's some broader concerns about how the economic environment will evolve over the course of the year, We find ourselves in a in a position where we still feel very confident in our guidance, but we think we're gonna get there probably in a different way than we originally anticipated. We're already ahead of our own share, so there's this opportunity for us to continue to gain share. But the likelihood is the market won't grow at the rate that we had expected when we originally guided, and that will balance out to the the same kind of outcome from a revenue perspective as we'd originally anticipated.

Serge Belanger, Healthcare Analyst, Needham and Company: Okay. Do do you expect a more significant impact on on the filler market in this kind of microenvironment and what you typically see on the on the toxins?

Sandra Beaver, CFO, Evolus: The filler market is typically more exposed from a share of wallet decision at the consumer level, and you've seen that play out over the last year. And I think it will persist into this year, and we did contemplate that in our guidance. So we've seen a relatively flat filler market. There is certainly that opportunity for this GLP one tailwind into this market. However, we have yet to see that materialize, and it's not entirely clear when and how that will take shape on the filler market itself.

So considering that the way we contemplated our guidance was a flat filler market. Keep in mind, we're launching a new product into this market. So the performance of our revenue is not really going to correlate with the performance of the overall market and or the seasonality of the market, which will make it a little bit harder for us to get a good read on exactly how that market is reacting to the sort of macroeconomics. So we are projecting it to be flat, and it certainly is a little more exposed. The toxin market in particular tends to be relatively resilient in the face of recession.

So even in the o eight, o nine recession, you did not see that market contract. It still grew. And the toxin procedure is relatively recession resilient. It's the highest value procedure in practice in the sense that it's the most affordable for the consumer, and it's the highest volume in that the consumer is heavily incented to come back with frequency because they know when their toxin wears off. And this has really become a routine part of people's beauty regimen to come in and get their toxin.

So although we may see, to your point, some pressure on that toxin market, we still have reason to believe it will remain relatively healthy.

Serge Belanger, Healthcare Analyst, Needham and Company: Got it. And with the launch of Evolise, you know, how could that impact the sales trajectory of, of Juvo? Is there a potential for a halo effect? Or

Sandra Beaver, CFO, Evolus: It's certainly not something we put into our guidance. So as you think about those factors that could enable us to get shared, this is certainly one of them. It there's definitely an opportunity to unlock more share in the practices in which we currently sell that are maybe limited in what they're buying for Jeuveau because of some pricing considerations on their filler from other providers. And so as we give them the opportunity to get their filler from us, it could unlock more share. So the conversation we had earlier also provides us opportunity to approach accounts that maybe weren't interested in trying a a product that we only had one product in the bag and give us that opportunity to to get into accounts that we weren't previously getting into.

So we certainly see that halo effect as a upside opportunity for us on Jeuveau, but it's not something we've currently factored into our guidance.

Serge Belanger, Healthcare Analyst, Needham and Company: And I think in the last quarterly update, you you mentioned you're now at about 15,000 ordering accounts, so about half of the overall US market. Is there anything that distinguishes the the first fifteen thousand accounts from the the second half that you you'll now be targeting?

Sandra Beaver, CFO, Evolus: I mean, I say we're slightly over indexed on revenue. So let's just say we're in roughly 50% of the volume of accounts. We're in probably closer to 60 of the available revenue in the market. So as you might expect, we, you know, approach the higher value accounts with priority and so that we find ourselves slightly over indexed. And, certainly, we'll continue to look for those high value accounts now that we have the portfolio to add, and there is a bit of a long tail in this market.

Right? We don't see any reason we can't, over time, be in all 30,000 accounts. However, the pace at which we add accounts will be thoughtful and prudent given that we will need to ensure that our existing customer base gets a high quality experience with Evolise and gets that opportunity to interact with Evolise, that will take a little bit of the the time and focus into those existing customers. We still expect to add a healthy amount of new accounts, but probably a bit less than we have over the last couple of years.

Serge Belanger, Healthcare Analyst, Needham and Company: And then the assumptions for your guidance, just curious what you're assuming for on the competitive side and what impact it could have on pricing levels.

Sandra Beaver, CFO, Evolus: Specific to the toxin?

Serge Belanger, Healthcare Analyst, Needham and Company: Yeah. Sorry. To the toxin. Oh,

Sandra Beaver, CFO, Evolus: why don't you go first? So we know that there's a new entrant in commercially available this year. It's Lativo. It's a product that's sold by a company called Hugel. Our expectation is that it will come in as a price player.

It's relatively early days for them in their commercial launch. They are partnered with a company called Benev who does not have experience in this space and is still doesn't have a full Salesforce. So they're they're having a contractor based Salesforce in the early days of their launch. We do expect them to be a price player in the market. We did anticipate that when we built our guidance that they would be entering the market this year.

So that is factored into our guidance, and our expectation is they'll be competing against the other sort of meaningful price players for that bottom tier of the market, whereas we compete at the more premium tier of the market at the top end. And maybe we can tell you a little bit about the the product itself and sort of our understanding of its performance characteristics.

Rui Avalar, Chief Medical Officer, Evolus: Sure. So from a performance perspective, as you probably know, when you come to market with the toxin in The United States, you have to do two identical phase three trials. And the reason is the FDA is looking for consistency. So it's two trials. You do it in different centers, different investigators, and the the feedback that we've been getting is that the placebo product really has some variability in its performance.

It's freeze dried, so we're not, surprised to hear that. And if you look at the public domain, even the primary endpoints of those studies are drastically different. They they did three phase three studies, and you can see almost 40% variability in that primary endpoint. And then fundamentally, why we believe they they will stay kind of at the tier that Sandra described is it's freeze dried, and they cause antibodies. Obviously, no one wants to cause antibodies in their patients.

That's, you know, bad for the patients, bad for business, it's bad for the whole sector. We if you look at ours, ours is vacuum dried. We had no antibody production. Interestingly enough, as we were transitioning that product, we do did do one study with freeze dried because it was a stepped fashion that we did it. And, sure enough, we also showed antibodies in that freeze dried formulation.

Again, to be clear, we do not commercialize freeze dried. We are very aware of that. So our product is, vacuum dried. So the variability of the antibody production, we think, may have an impact on how widely it gets adapted, and we currently compete against that product right now in, Australia and The UK. We do pretty well against them.

Serge Belanger, Healthcare Analyst, Needham and Company: Okay. So so in the is

Sandra Beaver, CFO, Evolus: sorry. The reality is in this market, you can't overcome performance with just price.

Serge Belanger, Healthcare Analyst, Needham and Company: Right. Well, put. So in The US, is this an aesthetic only product, or will they also do you know if they're they'll be targeting some therapeutic uses?

Rui Avalar, Chief Medical Officer, Evolus: We don't know what their inside discussion is, but, from what we see right now, it's aesthetic only.

Serge Belanger, Healthcare Analyst, Needham and Company: Got it. Okay. And then regarding your commercialization and marketing strategy, I think, you know, the Evolus approach has kind of been to, to target the younger segments, the millennials, Gen z. Just curious how that is changing as as they age and and begin to gray like like the rest of us.

Sandra Beaver, CFO, Evolus: Yeah. I think that with our strategy, right, you see our branding. You see how we position ourselves. We're very much a beauty company. We're not pharma, and we we are very intentional about that.

And the millennial is the single largest new user of these procedures in the category. So they are fueling the growth of the category. They are twice as likely as their predecessors to consider a procedure like this. And so there's the and the adoption rate of these procedures continues to move down in age. Right?

So the millennial, believe it or not, is already approaching into their early forties. And so you see them actually becoming more loyal patients of these products when you get them adopted on them relatively early. They are relatively brand loyal. And so the lifetime value of these patients is is of high value to us. So we continue to see them adopting in younger and younger.

We continue to see our brand positioning very well targeted towards these audiences. And as they start to use these products, they tend to continue to use these products, so the value of that consumer grows over time.

Rui Avalar, Chief Medical Officer, Evolus: The the only thing I'll add, and it's it's easy to miss, you know, from a strategical perspective, the toxo market obviously existed before we entered. And, strategically, instead of coming in and trying to, you know, take market share away from others, we very intentionally try to expand that market and Bringing in and investing in the millennial, getting their interest in, helped us expand the market. So everyone benefits from that. The obviously, we'll grow as our millennials grow. We grow with them.

So that's we're in sync with that step. And the the last part I'll add is we'll have to remember that millennial, not only, you know, all the attributes that Sandra brought up, but the millennial is a pretty powerful group because it was the first generation that can actually influence up. So there was an established toxin, but when a millennial says to their parents, hey. You should try this, that actually has impact. There was a generation where there's no way you could ever tell your parents what to do.

The millennial, the first generation that can actually do that.

Serge Belanger, Healthcare Analyst, Needham and Company: Okay. Interesting. Regarding your loyalty program in club was it Club Evolus, the the newly launched program in the last fall? Just curious. Well, first of your loyalty program differs from some of the other programs that are available, and I think Club just Club Evolus just kinda stands on its own.

I think it's a unique program. Right?

Sandra Beaver, CFO, Evolus: Yeah. It is. So our loyalty program is a very low friction, text based program. It's a $40 off every treatment, every single time you come in. From the first time you get treated, you can access that $40 off.

So it's a consistent benefit, and it's very easy to access for our our customers to give to our consumers. Club is a a new offering. You know, we did a pilot internally to try and understand that how a subscription program may operate in this space. And based on the results of that pilot, we made the decision to commercially launch this program. We are rolling it out relatively slowly.

Right? A subscription program plays out over time. Right? It's about a year of operating that program that you start to see good data back on the frequency of visit, the volume of product that the consumers are taking in. Right?

And we we did run our pilot for that time frame. So we did just commercially launch this in the fourth quarter. We have close to a hundred customers who are now offering Club Evolus. They're certainly getting used to having that subscription as an offering for consumers, and we're really gonna learn a lot through this commercial launch about how to start to scale that program more broadly. It's not gonna fit for every customer, but it's a high value program for all of the people involved in it in the sense that it's very unique and that everybody's better off.

Evolus is better off. The customer being the HCP is better off, and the consumer is better off. And it comes down to the consumer really increasing their frequency of visit and and use of the products and doing it in a more economical way for them because they're getting better pricing on the subscription, but also providing that higher frequency of visit and higher value proposition to our customers, and it's good economics for Evolus as well. So it's very hard to sort of create a program that I call a win win win program, but Club Evolus really is that.

Serge Belanger, Healthcare Analyst, Needham and Company: Within the the last couple earnings calls, the the topic of BD has has come up a few times. So maybe if you can talk about the the appetite for adding additional products, services, and maybe what could be a good fit for for your current setup.

Sandra Beaver, CFO, Evolus: Yeah. I'd say the great thing about having Evolise is that we do have a pipeline for that product already. Right? So we're launching the first two indications this year. We'll have Sculpt coming next year, which we're very excited about that opportunity for us.

We believe it's the first product that can meaningfully compete with Voluma in that space, and then we will have lips coming thereafter. So we're always active in thinking about developing our pipeline and expanding the offering that we give to our customers. And so within the filler space, we've been very open about the fact that we're considering looking at bio stimulatory fillers. They're a very interesting sort of additional pipeline asset to our filler portfolio. That's a a relatively small portion of the market today, but it's growing at a very healthy rate.

So that would be something that would be of interest to us. Know, we try to stay in the things that are most sort of tangential to the products that we have that fit most nicely into that portfolio, and we'll continue to look for the right sort of tuck in asset opportunities to build out that pipeline over time.

Serge Belanger, Healthcare Analyst, Needham and Company: Okay. Can we describe this as a a near term opportunity, or it's more medium to long term?

Sandra Beaver, CFO, Evolus: I'd say we're always looking. Right? And it it's about finding the right thing. I think if our our deal with Cimates told you anything, we're very thoughtful about what we put in our portfolio, and the quality of that asset is exceptional. And the economics that we share with Cimates was an incredibly capital efficient arrangement and a really good opportunity for both of us.

Right? So we're very prudent about how we make these decisions, and we won't make any of them lightly. And that means that we'll we'll always be active, and we'll we'll pick the right thing at the right time.

Serge Belanger, Healthcare Analyst, Needham and Company: Yeah. We only got we only have a couple minutes left. So maybe, Sandra, if you can give us an overview of financials where cash balance is and, I think, your profitability timelines.

Sandra Beaver, CFO, Evolus: Sure. Yes. So we're the fastest growing neurotoxin in the market for four years in a row. For the last five years, we've exceeded 30% revenue growth, and we expect to do so again this year with the launch of Evolese. So guiding to 345 to 355,000,000 of revenue.

We delivered profitability a year ahead of our own expectations. So we had originally anticipated full year profitability for 2025. We actually achieved that in 2024, and we do fully expect to deliver that in a meaningful way again here in 2025. That profitability will be really weighted into the fourth quarter of the year given the timing of the launch of Evolisse and the timing of our launch investments on Evolisse. We won't turn to cash flow profitability or cash flow generation until 2026.

It's a moment in time where we really get an inflection in our operating leverage because we'll lap some of the investments we're making to launch the filler lines. As we've exited 2024, we have 87,000,000 of cash on our balance sheet. That will fully fund us to that cash generation as well as the repayment of our existing debt facility, which starts maturing in the beginning of twenty twenty six through the end of twenty twenty seven. So we're very confident in this business' capacity to function and operate, the team's ability to execute, and our ability to generate cash in a meaningful way in 2026.

Serge Belanger, Healthcare Analyst, Needham and Company: Alright. I think we can end here. We're, just about out of time. So wanna thank you both for, spending time with us this afternoon and giving us an update on Evolus. We appreciate it.

Rui Avalar, Chief Medical Officer, Evolus: And thanks your time, Serge.

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