Aytu BioPharma's Q2 2025: Unraveling Contradictions on Medicaid, ADHD Revenue, and Pediatric Strategy

These are the key contradictions discussed in Aytu BioPharma's latest 2025Q2 earnings call, specifically including: Medicaid coverage and reimbursement levels, product licensing opportunities, revenue expectations for the ADHD franchise, and strategic vision for the pediatric business:



ADHD Franchise Performance:
- The ADHD portfolio's scripts were slightly over 99,000, marking a sequential increase from just under 99,000 in the previous quarter and compared to 111,000 in Q2 of last year.
- ADHD net revenue was $13.8 million in Q2, up 16% sequentially, excluding a one-time payer resolution.
- This positive trend was attributed to market normalization after stimulant shortages and improved gross-to-net margins.

Pediatric Portfolio Recovery:
- Pediatric portfolio net revenue increased by 86% sequentially, with scripts showing material growth.
- This rebound was driven by improved payer coverage, expanded state Medicaid plans, and a shift in sales force focus to pediatric products.

Operational Efficiency and Cost Savings:
- Aytu BioPharma reported its seventh consecutive quarter of positive adjusted EBITDA and second consecutive quarter of net income.
- The company expects an additional $2 million in annual cost savings, mainly from G&A reductions and operational efficiencies.
- These savings are a result of strategic changes and optimization initiatives.

Commercial and Operational Strategies:
- The company's strategic focus is on its profitable prescription business, leveraging its Aytu RxConnect platform, and pursuing additional in-licensed or acquired products.
- These strategies aim to drive growth, improve patient access, and leverage the benefits of RxConnect for physicians, patients, and pharmacies.

ADHD and Pediatric Market Dynamics:
- The ADHD stimulant market has normalized, with Aytu's supply unaffected by shortages experienced by competitors.
- The Pediatric portfolio's recovery was driven by diversifying prescriber bases, improved payer coverage, and increased distribut