Q3 2019 Earnings Call
Thank you for standing by good morning, and welcome to <unk> Alimera Sciences third quarter 2019 financial results in corporate update conference call.
Operator: Good morning and welcome to Alimera Sciences' 3rd Quarter 2019 Financial Results and Corporate Update Conference Call. At this time, all participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key, followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Participants of this call are advised that the audio of this conference call is being broadcast live over the Internet and is also being recorded for playback purposes. A webcast replay of this call will be available approximately one hour after the end of the call through January 30th, 2020. I would now like to turn the conference over to Jules Abraham, Director of Public Relations for CoreIR, the company's investor relations firm. Please go ahead, sir.
At this time, all participants will be in listen only mode. So you need assistance signal corporate specialist bypassing the starkey followed by zero. After today's presentation, there will be an opportunity to actually questions. So that's a question you May press Star then one all your telephone keypad to withdraw your question. Please press Star then to participants of this call or by the audio this conference.
<unk> is being broadcast live over the Internet.
And is also being recorded for playback purposes, a webcast replay of this call will be available approximately one hour. After the end of the call through January Thirtyth 220, 20, I would now like to turn the conference over to Jules Abraham Director of public relations for core IR, The company's Investor Relations firm. Please go ahead Sir.
Thank you Chuck good morning, and thank you for participating in today's conference call joining.
Jules Abraham: Thank you Chuck, good morning and thank you for participating in today's conference call. Joining me from Alimera's leadership team today are Rick Eiswirth, President and Chief Executive Officer, and Phil Jones, Chief Financial Officer.
Joining me from our no leadership team scenario, Rick Eiswirth, President and Chief Executive Officer until Jones.
Chief Financial Officer.
Jules Abraham: During this call, management will be making forward-looking statements, including statements that address Alimera's expectations for future performance or operational results. Such forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements. For more information about these risks, please refer to the risk factors described in Alimera's most recently filed periodic reports on Form 10-K and Form 10-Q, the Form 8-K filed with the SEC today and Alimera's press release that accompanies this call, particularly the cautionary statement. Adjusted EBITDA, a non-GAAP financial measure that Alimera believes can be useful in evaluating its performance, was included in You should not consider this additional information in isolation or as a substitute for results prepared in accordance with GAAP for reconciliation of this non-GAAP financial measure to net loss.
During this call management will be making forward looking statements, including statements that address our marriage expectations for future performance or operational results.
Looking statements involve risks and other factors that may cause actual results could differ materially from downstream.
For more information about these risks please refer to the risk factors described the dollar amounts most recently cloud periodic reports on Form 10-K , and Form 10-Q on Q filed with the FCC today and I will now this press release that accompanies this call.
The cautionary statements.
Today's conference call includes adjusted EBITDA, a non-GAAP financial measure that oligopolies can be useful in evaluating its performance you should not considered this additional information in isolation or substitute poor results prepared in accordance with good.
A reconciliation of this non-GAAP financial measure to not lost its most directly comparable.
Jules Abraham: It's the most directly comparable GAAP financial measure. Please see the reconciliation table located in Alimera's earnings press release. The content of this call contains time-sensitive information that's accurate only as of today, October 30, 2019. Except as required by law, Alimera disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call. It's now my pleasure to turn the call over to Rick Eiswirth
GAAP financial measure please see the reconciliation table Lucky that Alimeras earnings press release.
Tied to this call contains time sensitive information that's accurate only as of today.
30 up 29 team [laughter], except as required by law.
Disclaims any obligation to publicly update or revise any information to reflect events or circumstances not occur. After this call.
Now my pleasure to turn the call ever to Rick Eiswirth.
Thank you Julie and good morning to everyone on this call I'm excited to speak with you today about our third quarter performance.
Richard S. Eiswirth: Thank you, Jules, and good morning to everyone on this call. I'm excited to speak with you today about our third quarter performance. During the quarter, we continued to increase the use of alluvion globally, executing our business plan to grow organically and expand geographically, with approximately 1,800 eyes being treated with alluvion in our markets during that period. We reported consolidated net revenue for the quarter of $12.9 million.
During the quarter, we can sure continue to increase the use of ILUVIEN globally executing our business plan to grow organically and expand geographically, but approximately 1800 cosby treat even though even in all markets in that period.
We reported consolidated net revenue for the quarter up $12.9 million.
Richard S. Eiswirth: This represents an increase of 16% over the third quarter of last year and sequential growth of 18% over our recent second quarter, both representing significant improvement after a disappointing top line in our second quarter. I'm extremely proud of our international employees and partners who have contributed greatly to these results, delivering a 62% increase in revenue for our international segment compared to the same period last year, with incremental growth across all of our markets. Importantly, our fully staffed U.S. sales organization has re-established a more consistent presence with physicians in the U.S. I'd like to thank everyone in our U.S. organization for the effective teamwork that was put behind it. The result was very positive, as we experienced a 6% increase in end-user demand over the recently completed second quarter.
This represents an increase of 16% over the third quarter of last year and sequential growth of 18% over our recent second quarter.
<unk>, representing significant improvement after a disappointing top line in our second quarter.
I'm extremely proud of our international employees and partners, who have contributed greatly to these results delivering 62% increase in revenue for our international segment compared to the same period last year.
With incremental growth across all of our markets.
Importantly, our fully staffed U.S. sales organization as we established a more consistent presence with physicians in the U.S.
I'd like to thank everyone in our U.S. organization pretty effective teamwork that was put behind US. The result was very positive as we experienced a 6% increase in end user demand over the recently completed second quarter.
Richard S. Eiswirth: It's clear that Elluvian is promotion sensitive, and we've taken steps to minimize the chance of the disruption in our sales force that we had in the first half of the year. At our recent U.S. sales meeting, we rolled out a revised incentive structure, which includes a long-term deferred compensation plan, a heightened employee recognition program, and greater involvement of key salespeople in strategic planning and execution.
It's clear that ILUVIEN is promotion sensitive and we've taken steps to minimize the chance for the disruption in our Salesforce that we had in the first half of the here.
And our recent U.S. sales meeting, we rolled out a revised incentive structure, which include the long term deferred compensation plan heighten employee recognition program and greater involvement of key salespeople in strategic planning and execution.
Richard S. Eiswirth: I believe our U.S. sales force is highly energized and engaged and that our team is in an even better position now going into the fourth quarter. Salesforce effectiveness, consistency, and retention are important in our international segment as well. I'm pleased to announce that during the quarter, we hired Steve Laub as our VP of International Sales to improve our sales effectiveness in our international market. Steve has over 25 years of sales and general management experience.
I believe our U.S. salesforce is highly energized and engaged and that our team is an even better position now going into the fourth quarter.
Salesforce effectiveness consistency and retention are important in our international segment as well I'm pleased to announce the during the quarter, we heard Steve Blob as our VP of international sales to improve our sales effectiveness in our international markets.
Steve has over 25 years of sales and general management experience, having both Andy young in the U.S. and Stephen Your now brings consistency in our sales approach and gives us the ability to leverage our messages and sales platform globally.
Richard S. Eiswirth: Having both Andy Young in the U.S. and Steve in Europe now brings consistency in our sales approach and gives us the ability to leverage our messages and sales platform globally. The addition of Steve will also enable Philip Ashman, our Chief Operating Officer in SVP Commercial Operations Europe, to focus more on our strategic direction and possible expansion. We are unique as a small ophthalmology company, having a presence both internationally and in the U.S., and our international business has contributed materially to our growth. We expect it to continue to do so. During the third quarter, we made great progress on our strategic initiatives within this international segment. Our recent expansion into France and Spain contributed greatly to our growth this quarter.
The addition of Steve will also enable Philip Asherman, our Chief operating officer, and SVP commercial operations Europe to focus more on our strategic direction and possible expansion.
We are unique as a small ophthalmology company, having a presence both internationally and in the U.S. and our international business is contributing materially to our growth we expected to continue to do so.
During the third quarter, we made great progress on our strategic initiatives within this international segment.
A recent expansion into France, and Spain contributed greatly to our growth to score those two markets are very receptive to the use of corticosteroids to treat him a and France ranked first in monthly end user demand probably going across all of our international markets in the third quarter.
Richard S. Eiswirth: Those two markets are very receptive to the use of corticosteroids to treat DME, and France ranked first in monthly end-user demand for alluvium across all of our international markets in the third quarter. Because of the strong success we've had with the launch of Alluvion in France, we announced during the quarter that we have expanded our agreement with Horace Pharma, our French distribution partner, to sell Alluvion in the three Benelux countries, Belgium, the Netherlands, and Luxembourg. Horace estimates that there are approximately 70,000 patients within these countries that suffer from DME. And Horace will begin the process of obtaining reimbursement for Elluvian early next year.
Because of the strong success, we've had with the launch of ILUVIEN in France, we announced during the quarter that we expanded our agreement with horse pharma, our French distribution partner just sell moving in the three Benelux countries, Belgium, the Netherlands and Luxembourg.
Sure. It's estimated that approximately 70000 patients within these countries the suffer from de me.
And horse will begin the process imitating reimbursement for ILUVIEN early next year.
Richard S. Eiswirth: As most of you know, we have European approval to market Alluvian for the prevention of relapse in patients with recurrent non-infectious posterior iviitis. Making Luvien available for patients suffering from uveitis is a key component of our growth strategy. We launched our commercial efforts around the syndication in Germany in late September, and we have begun to see early traction. In the UK, the government trust had up to 90 days to implement NICE guidance for the reimbursement of Illuvian for the treatment of posterior uveitis, and that period concluded on October 1st. So we expect to see a positive effect in the UK in the fourth quarter as well.
Most of you know we have European approval to market will live yet for the prevention of relapse in patients with recurrent noninfectious posterior uveitis.
Making living available for patients suffering from you guys is a key component of our growth strategy.
We launched our commercial efforts around the syndication in Germany in late September and we've begun to see early traction.
In the UK government Trust set up to 90 days to implement nice guidance for the reimbursement of ILUVIEN for the treatment of course, your you'd be honest and that parents concluded on October 1st. So we expect to see a positive effect in the UK in the fourth quarter as well.
Richard S. Eiswirth: We also announced label approval of Alluvion's posterior uveitis indication in Portugal, and now we are awaiting reimbursement authorization in that country. We expect additional countries to finalize the label for the Posterior Eubatis Indication and provide reimbursement in 2020. Physician interest in this indication has been strong thus far. You may recall that the results of the Phase III trial demonstrated a median disease-free recurrence period more than nine times greater than the control arms and that the average patient had a 68% reduction in the number of recurrences of uveitis over three years. The indication we received is directly on point with this data.
We're also announced label approval of ILUVIEN suppose jury vadis indication in Portugal, and now we are waiting reimbursement authorization that country.
We expect additional countries to finalize the label for the poster anybody syndication and provide reimbursement in 2020.
Physician interest in this indication has been strong this for.
You may recall the results of the phase three trial demonstrated a median disease free recurrence period, where the nine times greater than the controller and that the average patient had a 68% reduction on the number of recurrences of you guys over three years.
The indication we received directly on point with this data.
Richard S. Eiswirth: Our label reads for the prevention of relapse in recurrent non-infectious uveitis affecting the posterior segment of the eye. We believe that the wording of this indication speaks to the unique value that alluvium delivers in treating retina disease and leverages our message of longer-term disease control, the same message that we're emphasizing for alluvium in the treatment of DME. The true value of Alluvian is its continuous microdosing technology that is designed to offer two distinguishing benefits as the only non-acute therapy to treat DME globally and posterior uveitis in Europe. One is to consistently treat the condition, continuously delivering the drug to minimize the edema and inflammation in the retina. The other is to significantly reduce the recurrence of the disease and, therefore, the number of injections a patient must endure.
Our label rates for the prevention of relapse in recurrent non infectious uveitis affecting the post your segment of the off we believed that the wording of this indication speaks to the unique value that ILUVIEN delivers and treating retinal disease and leverages our message of longer term disease control. The same message that they were emphasizing for.
Moving in the treatment of de me.
The true value of ILUVIEN is it's continuous micro dosing technology that is designed to offer to distinguishing benefits. The only non acute therapy to treat de me globally and posterior uveitis in Europe .
One is to consistently treat the condition continues illicit continuously delivering drug to minimize the edema and inflammation in the right.
The other is to significantly reduce the recurrence or the disease and therefore, the number of injections of patient must under.
Richard S. Eiswirth: Both our clinical trials and real-world data support these two key benefits, and these benefits enable physicians to provide patients with what they want for disease management, longer-lasting vision with fewer injections. Alluvium stands out in a crowded field of acute therapies that are used to treat patients more episodically. We remain focused on driving this message to our target physician and patient audiences to continue to change the paradigm of the way DME and posterior uveitis are treated. And we believe that the discussion among clinicians demonstrates that this paradigm shift is starting to take place. In early September, at the Retina Conference in Paris, we hosted two well-attended symposia that were very well received.
Both our clinical trials and real World data support these two key benefits and these benefits enable physicians to provide patients what they want for the disease management longer lasting vision with fewer injections ILUVIEN stands out in a crowded field of acute therapies that are used to treat patients more episodically.
We remain focused on driving this message into our target physician and patient audiences to continue to change the paradigm in a way DMV and post your you'd be audits are treated and we believe the discussion among clinicians demonstrates that this paradigm shift is starting to take place.
In early September at the Retina conference in Paris, We hosted two well attendants impose either we're very roce.
Richard S. Eiswirth: One highlighted our posterior uveitis indication, and the other addressed the benefits of alluvium for the treatment of DME under the theme, quote, breaking the cycle of recurrence, directly on point with our vision and message. We were fortunate to have the renowned Italian retina specialist, Professor Francesco Bendello, reminding attendees at the conference that, in his own words, quote, Illuvian is different and treats the disease every day. And that retina specialists need to change the paradigm and use the drug much earlier. His message was extremely consistent with the way lubing works and should be used in the treatment of DME.
One highlighted our upholstery uveitis indication and the other address the benefit of ILUVIEN for the treatment of DNA under the theme quote breaking the cycle broker.
Directly on point with our vision and messaging.
We were fortunate to have the renown Italian retina specialist professor Francesco Condello, reminding <unk> attendees at the conference that in his own words quote ILUVIEN is different and treat for the disease every day and that retina specialists quote need to change the paradigm and use the drug much earlier.
His message was extremely consistent with way and moving works and should be used in treatment you me.
Richard S. Eiswirth: We believe in the value of steroids and their ability to treat many diseases because of their broad effectiveness in addressing inflammation, and more retina physicians are understanding the need to do this as well. Both in the U.S. and internationally, the momentum behind the benefit of steroids in treating DME and posterior uveitis is growing. And Alluvian, with its low-dose, continuous delivery, is offering a differentiated and, we believe, better way to deliver this benefit. Specifically, more information is being shared on the anti-inflammatory and neuroprotective effects of steroids. Single-acting anti-VEGF treatments are targeted at the vascular changes of the disease and do not broadly address inflammation or provide neuroprotection.
We believe in the value of steroids and their ability to treat many diseases because of their broad effectiveness at addressing inflammation and more retinal physicians are understanding the need to do this as well both in the U.S. and internationally the momentum behind the benefit of steroids and treating gaming and poster you've noticed this growth and ILUVIEN with its low dose contain.
News delivery is offering differentiated and we believe it better way to deliver this benefit.
Specifically more information is being shared on the anti inflammatory and neuroprotective effect of steroids.
Single acting anti VEGF treatments are targeted to the vascular changes the disease, it do not broadly address inflammation or providing or protection.
Phil Jones: We are very pleased that Dr. Sam Merkaba joined us earlier this year as our Chief Medical Officer. Sam is a trained neurologist with experience in neuro-ophthalmology and neuro-inflammation. We believe he can help us expand the discussion on the need to treat inflammation in DME and provide neuroprotection and demonstrate the unique value of aluminum in doing so. We were in San Francisco earlier this month where we attended the American Academy of Ophthalmology conference. I was very pleased with the strong interest in Alluvion's benefits and the engagement our team had with customers. At that meeting, we invited 45 doctors who participate in our scientific advisor groups to share three-year case studies that highlighted the erratic vision and edema scene when patients were treated with acute therapy.
We're very pleased with Dr. samaras called the joined US earlier this year as our Chief Medical Officer, Sam as a train neurologist with experience in neuro ophthalmology and narrow inflammation.
We believe he can help us expand the discussion on the need treat inflammation and dnbi and provide neuroprotection and demonstrate the new unique value of ILUVIEN in doing so.
We were in San Francisco earlier, this month, where we attended the American Academy of Ophthalmology Conference I was very pleased with the strong interest in iluviens benefits and the engagement our team had with customers.
At that meeting, we invited 45 doctors, who participate in our scientific advisory groups to share through your case studies, which highlighted the erratic vision and the demas seen when patients were treated with acute therapies. They state some doctors now referred to as the chaos.
Phil Jones: They state what some doctors now refer to as the chaos, compared to the consistent management of DME after leuvene is injected, sometimes referred to as the COM. These same doctors discussed the need to treat inflammation and the potential of alluvium to provide neuroprotection. It's all about changing the paradigm in the treatment of DME and posterior uveitis, and we believe we have the right product in Alluvian and the right team at Alimera to do just that. We continue to focus on driving value for patients and for our shareholders as more patients in the U.S. and overseas experience the benefits of the lubricant. I'll now turn the call over to Phil, who will review our funding results for the quarter.
Compared to the consistent management of deeming after living is injected sometimes referred to as the call.
The same doctors discussed the need to treat inflammation and the potential even to provide neuro protection.
It's all about changing the paradigm in the treatment of gaming and poster, yes, and we believe we have the right product in ILUVIEN and the right team at Alimera to do just that we continue to focus on driving value for patients and for our shareholders as more patients in the U.S. and overseas experienced the benefits of ILUVIEN I'll now turn the call over to fill review.
Our financial results for the quarter Bill.
Phil Jones: Thanks, Rick, and hello everyone. During the third quarter of 2019, our consolidated net revenue grew 16% to $12.9 million compared to $11.1 million in the third quarter of 2018. Compared to the second quarter of 2019, our consolidated net revenue was up 18% as we reestablished certain U.S. sales territories and continued to deliver strong performance in our international segment. U.S. net revenue was approximately $8.7 million for the third quarter of 2019, up approximately 2% from $8.5 million for the same period in 2018. sequentially, U.S. net revenue was up 19% versus the second quarter of 2019. However, U.S. end-user demand, which represents units purchased by physicians and pharmacies from our distributors, was essentially flat in the third quarter of 2019, decreasing slightly to 973 units compared to 977 units from the third quarter of 2018.
Thanks, Rick and Hello, everyone. During the third quarter of 2019, our consolidated net revenue grew 16% to $12.9 million compared to $11.1 million in the third quarter 2018 sequentially or compared to second quarter of 2019, our consolidated net revenue was up 8% as we reestablished certain but.
Sales territories and continued to deliver strong performance in our international segment.
You asked net revenue was approximately $8.7 million for the third quarter of 2000 lighting approximately 2% from $8.5 billion for the same period in 2018 sequentially U.S. net revenue was up 19% versus the second quarter of 2019.
You asked end user demand, which represents units purchased by physicians and pharmacies from our distributors was essentially flat and the third quarter of 2019 decreasing slightly to two to 973 units compared to 977 units from the third quarter of 2008.
As we've previously shared our GAAP revenues in the U.S. do not always perfectly correlate with end user demand due to the time into purchases by our specialty is distributors.
Phil Jones: As we have previously shared, our gap revenues in the U.S. do not always perfectly correlate with end-user demand due to the timing of purchases by our specialty distributors. Net revenue for my international segment increased 62% to approximately $4.2 million for the third quarter of 2019, compared to approximately $2.6 million for the same period last year. This was driven by growth across all markets.
Net revenue from an international segment increased 62% to approximately $4.2 million for the third quarter of 2019 compared to approximately $2.6 million for the same period last year.
This was driven by growth across all markets.
Phil Jones: Research development and medical affairs expenses were flat at $2.8 million during the third quarters of 2018 and 2019. General and administrative expenses for the third quarter of 2019 were approximately $3.1 million compared to approximately $3.4 million for the same period last year. This decrease was primarily attributable to decreases in personnel costs.
Research development and medical Affairs expenses were flat at $2.8 million during the third quarters of 2018 and 2019.
General and administrative expenses for the third quarter of 2019 were possibly $3.1 billion compared to approximately $3.4 million for the same period last year. This decrease was primarily attributed the attributable to decreases and personnel costs.
Phil Jones: Sales and marketing expenses during the third quarter of 2019 were approximately $6.4 million, up 16% compared to $5.5 million for the third quarter of 2018. The increase is primarily attributable to increases in marketing costs associated with the launch of our direct-to-patient advertising program, personnel-related costs, and costs to attend and exhibit at medical conferences. Total operating expenses increased by $600,000 or 5% to $13 million for the three months ending September 30, 2019, compared to $12.4 million for the three months ending September 30, 2018. In both the third quarters of 2018 and 2019, we reported adjusted EBITDA losses of $500,000. With the rebound in our U.S. business and our continued growth in the international segment, we expect to generate break-even to positive adjusted EBITDA moving forward.
Sales and marketing expenses during the third quarter of 2019 were passed me $6.4 million up 16% compared to $5.5 million for the third quarter of 2018.
The increase was primarily attributable to increases in marketing costs associated with the launch of our direct to patient advertising program personnel related costs and cost to attend and exhibit at medical conferences.
Total operating expenses increased by $600000 or 5% to 13% $13 million to the three months into September 32019, compared to $12.4 million for the three months ended September Thirtyth 2018.
In both the third quarter 2018, and 2019, we reported adjusted EBITDA losses of $500000 with the rebound of our U.S. business and our continued growth in international segment, we expect to generate breakeven to positive adjusted EBITDA moving forward.
Phil Jones: The net loss for the three months ended September 30, 2019, was approximately $3.1 million, a decrease in comparison to the net loss of approximately $3.5 million for the three months. Our basic and diluted net loss per share for the three months ended September 30, 2019 was $0.04 per share on approximately 71 million weighted average shares outstanding. This compares to basic net income per share for the third quarter of 2018 of $0.40 per share on approximately 88 million weighted average shares outstanding, which includes approximately 17.9 million participating securities. Diluted net income per share for the third quarter of 2018 was $0.39 per share on approximately 88.5 million weighted average shares outstanding, which includes approximately 18.5 million diluted and participating securities. On September 30, 2019, we had cash and cash equivalents of approximately $7.9 million, a decrease from the $13 million in cash and cash equivalents that we reported on December 31, 2018. During the third quarter, we expended an unusually large amount of cash to fund working capital.
Net loss for the three months ended September 32019 was approximately $3.1 million a decrease in comparison to the net loss of approximately $3.5 million for three months ended September 32018.
Our basic and diluted net loss per share from the three months ended Septemberthirty 2019 was four cents per share on approximately 71 million weighted average shares outstanding. This compares to basic net income per share for the third quarter of 2018 to 40 cents per share on approximately 88 million weighted average shares outstanding which include.
It is approximately 17.9 billion participating securities diluted net income per share for the third quarter of 2018 was 39 cents per share on approximately 88.5 million weighted average shares outstanding which includes approximately 18.5 million dilutive and participating securities.
Timber 32019, we had cash and cash equivalents of approximately $7.9 million a decrease from the $13 million in cash and cash equivalents that we reported on December 31st 2018.
During the third quarter, we extended an unusually large amount of cash to fund working capital because of this seasonality of our business during the summer months and with the timing of our did grow in distributor orders. The majority of our revenue was generated during the second half of the quarter, resulting in a large receivable balance at quarter end.
Phil Jones: Because of the seasonality of our business during the summer months and with the timing of our growing distributor orders, the majority of our revenue was generated during the second half of the quarter, resulting in a large receivable balance at quarter end. We anticipate that the collection of these receivables, along with the growth of our business, will result in neutral to positive cash flow from operations over the next two quarters. Similarly, our goal is to operate the company to generate positive adjusted EBITDA and maintain cash neutrality after our debt service. We believe this is possible in 2020.
We anticipate that the collection of these receivables along with growth of our business will result in neutral to positive cash flow from operations over the next two quarters.
Prospectively, our goal is to operate the company to generate positive adjusted EBITDA and maintain cash neutrality. After our debt service. We believe this is possible in 2020.
Phil Jones: Many of you are aware that last week we announced a $20 million Common Stock Purchase Agreement with Lincoln Park Capital Fund, a Chicago-based institutional investor. Under that agreement, Lincoln Park Capital Fund purchased $1 million of our registered common stock at 50 cents per share, which represented a 35% premium to the closing market price of the stock on October 24, 2019. We are very pleased with Lincoln Park's capital commitment and the flexibility that this agreement provides if we need additional capital to efficiently fund our growth, maintain a strong balance sheet, and pursue potential strategic growth opportunities. In closing, I'd like to comment on our performance for the year to date. Our consolidated revenue for the first nine months of 2019 was $36.6 million, compared to $31.5 million for the first nine months of 2018.
Many of you are aware that last week, we announced a $20 million common stock purchase agreement with Lincoln Park Capital Fund, a Chicago based institutional Investor under that agreement Lincoln Park purchased $1 million of our registered common stock at 50 cents per share, which represented a 35% premium to the closing market price of the stock on October 10.
For 2019.
We're very pleased with Lincoln Park capital commitment and the flexibility that this agreement provides if we need additional capital to efficiently fund our growth maintained a strong balance sheet and to pursue potential strategic growth opportunities.
In closing I'd like to comment on our performance for the year to date.
Our consolidated revenue for the first nine month, or 2019 is $36.6 million compared to $31.5 million for the first nine months of 2018. This represents a growth rate of greater than 16%.
Phil Jones: This represents a growth rate of greater than 16 percent, and with our U.S. business strengthening and our continued progress internationally, we believe that we are positioned to finish this year strong. It is important to note that our fourth quarter last year included a one-time revenue benefit of $2.4 million from the Auserdex out-of-stock situation in Europe. Excluding the impact of this benefit in year-over-year comparisons, we expect our full year 2019 results to remain consistent with our year-to-date results. With that, I'll now turn the call back over to Rick to wrap up our prepared remarks.
With our U.S. business strengthening and with our continued progress internationally. We believe that we're positioned to finish. This year strong is important to note that our fourth quarter last year included a onetime revenue benefit of $2.4 million from the other tax out of stock situation in Europe , excluding the impact of this benefit and year over year comparisons.
We expect our full year 2019 to remain consistent with our year to date result.
With that I'll now turn the call back over to Rick wrap up our prepared remarks Rick.
Richard S. Eiswirth: Thank you, Phil. As I said earlier, we are very pleased with our third quarter and what we are accomplishing at Alimera. I believe what we have created at Alimera is special, and I want to share a few facts that I recently shared with our team at a sales meeting. Our product is now approved in 23 countries for DME and 17 countries for non-infectious posterior uveitis. Luvine is now commercially available for patients in 12 countries. Over 14,000 eyes have been treated in the U.S., and over 25,000 eyes have been treated globally since launch. I recently received analysis from one of our investment banks last week, which ranked us as the 10th largest ophthalmology company based on 2018 revenue. There is no one like us in the ophthalmology space, retina-only focused, and with a commercial footprint in both the U.S. and internationally.
Thank you Phil as I said earlier, we're very pleased with our third quarter and what we're accomplishing and Alimera I believe what we have created Alimera especial I want to share a few facts that I recently shared with our team at a salesman.
Our product is now approved in 23 countries from de me and 17 countries for Noninfectious anterior uveitis, leaving is now commercially available for patients in 12 countries over 14000 eyes had been treated in the U.S. and over 25000 argument treated globally since launch.
A recent were seasonality analysis from one of our investment banks last week, which ranked us as the 10th largest ophthalmology company based on 2018 revenue.
There is no one like us and ophthalmology and the ophthalmology space retina, only focused and where the commercial footprint in both the U.S. and internationally.
Richard S. Eiswirth: And we have done this efficiently with approximately 130 employees. It's a great platform that we can continue to leverage into the future, and we have a great product that we believe still has the potential for significant utilization globally. We look forward to increasing our share on all markets through the remainder of this year and in 2020. We also intend to continue pursuing our strategy to leverage our worldwide sales infrastructure and build a leading company dedicated to retinal physicians and their patients. And with that overview, we are now ready to take questions. Operator?
And we have done this efficiently, but approximately 130 employees.
It's a great platform that we can continue to leverage into the future and we have a great product. We believe still has the potential for significant utilization globally.
We look forward to increasing share in all markets through the remainder of this year and in 2020. We also intend to continue pursuing our strategy to leverage our worldwide sales infrastructure and build a leading company dedicated to retinal physicians and their patients and with that overview, we're now ready to take questions operator.
Operator: Ladies and gentlemen, if you wish to ask a question on today's call, you will need to press the star key, then the number one on your telephone. If your question has been answered and you wish to withdraw your question, please press star then 2. If you are using a speakerphone, please pick up your handset before entering your request and speaking on the phone.
Ladies and gentlemen, if you wish to actually question on today's call you will need to press. The Star Key then the number one on your telephone.
Your question that's been answering you whats to withdraw your question.
Please press Star then too if you're using a speakerphone. Please pick up your handset before entering your request.
One moment please for the first question.
Operator: One moment, please, for the first question. And our first question will come from Andrew DeSilva of B. Reilly F.B.R. Incorporated. Please go ahead.
And our first question will come from Andrew de Silva of B. Riley FBR incorporated. Please go ahead.
Andrew DeSilva: Good morning. Congratulations on the sequential rebound and then also apologies if you can't hear me very well. We are having power outages here in California from my mobile.
Good morning, Congrats on the sequential rebound and then also apologies if you can't hear me very well, we are having power outages here in California at the moment mobile just a few quick questions for me just starting off with some quick bookkeeping once Phil if you could just let me now well cashless.
Unidentified: Q&A Q&A Q&A Q&A
Richard S. Eiswirth: Well, I think the team has continued to get stronger over the quarter. I believe at one point in the quarter, we did turn over one rep, and we have one vacant territory right now. Candidly, they were more of our underperforming territories, and so we're going to continue to have to upgrade some territories here and there.
Operations in Capex was for the quarter.
And then while you're pulling that Rick could you. Please just discussed the current status of the sales force specifically.
Well they weren't as a group when they started the third quarter and where are they are today I'm just looking for inside and out your charting their progress and that the gets development it's cool.
Richard S. Eiswirth: But I would say that the team has just continued to get stronger and build over the course of the last three months. A couple of our newer reps that joined us in 2018 are actually leading salespeople in the month of October. So it's continued to get better. Like in any sales force, I think you have a bell curve. We have some really strong performers that stand out at the top end of the bell curve. You've got the pack in the middle, and then you have some underperformers, and our team looks about like that. There's plenty of room for us to continue to improve, so I'm very, very pleased with the progress we've made over the last three to six months in rebuilding the team and the quality of people that we have on board.
Well I think yeah, I think the team has continued to get stronger over the quarter I believe.
At one point in the quarter, we turned over we did turn over one rep.
And we have one Bacon territory right now candidly if there were more of our underperforming territories and so we're going to can do they have to upgrade some territories in there, but I would say that the team has just continued to get stronger and build over the course of the last three months.
You know a couple of our newer reps that have joined us in 2018 or are actually leading sales people in the month of October so its continue to get better. Unlike in any salesforce I think you have a developer we have some really strong performers that stand out at the top end of the Bellkor you've got the pack in the Middle and then you have some some underperformers and you know out.
Our our team looks about like that so there's plenty room for for us to continue to improve but very very pleased with the progress we've made.
Over the last three to six months in in rebuilding the team and the quality people that we have on board.
Phil Jones: And Andy, to your point on the cash flow, cash flow from operations in Q3 was, we had a burn of $3.9 million, CapEx was a $110,000 spend, and just as a point of clarification, the commentary we mentioned the issue with the impact from working capital, there was a $2.8 million impact from working capital included in that $3.9 million burn.
And they need to your point on that on the cash flow cash from operations. In Q3 was a was we had a burn a $3.9 million Capex was a $110000 then and just a data point of clarification. The commentary we mentioned that the issue with the impact and working capital. There was a 2.8 million dollar impact working capital included in that.
$3.9 million burn.
Richard S. Eiswirth: Okay, okay, perfect. And then, as you know, we ran some channel checks recently. It looks like Ozerdex had shortages again. Are you seeing benefits there? And then, similar, our checks indicated some easy use of alluvium for uveitis. Is there any way to quantify the benefits in the region, or how are you at least tracking progress now that you have the label expansion?
Okay, Okay, perfect and then but as you know we ran some channel checks recently, it looks like AWS or decks that shortages again are you seeing benefits there and then similar our checks indicate it then you use of ILUVIEN for you'd be I did a is there any way that kwan.
If I had the benefit in the region or how are you at least tracking progress now that you have to label expansion.
Richard S. Eiswirth: So with respect to Osredex, Andy, we've heard the same rumors about it being either out of stock or on hold. However, we don't believe we've seen much impact from that yet. It seems to us, at least what we've been hearing from the field, that Allergan did a good job going to their larger accounts and getting some of their larger accounts to stock up. And so, for at least the month of October, it appears that those accounts have had Osredex on the shelf and have been able to use that.
Yes, just sitting so with respect to allows you to X. I'm, Andy we've heard the same rumors about it either being out of stock or on on hold. However, we don't believe we've seen much impact from that yet itself. It seems to us at least what we've been hearing from the field that Allergan did a good job go into their larger account.
And getting some their larger accounts to stock up and so for at least the month of October and it appears that those accounts have had you know objects on the shelf and have been able to use that and so we haven't seen an impact to that.
Richard S. Eiswirth: And so we haven't seen an impact of that. With respect to UVITAS, the UVITAS syndication, as we said, was launched in late September in Germany, and we do think we're seeing an impact there. We're seeing an improvement in sales in October. In the UK, NICE guidance, or the trusts, had until October 1st to implement NICE guidance for reimbursement. And so we do believe we're seeing an impact in October. However, we don't believe that UVITAS impacted the third quarter materially at all. It's very, very difficult for us to, though, identify specifically where a unit is going because we don't see individual prescriptions. So we don't know when a unit goes out the door, whether it's going to a UVITAS patient or a DV patient. But we are seeing a bump in sales as we start the fourth quarter, so we do think it's having an impact.
With respect to uveitis Uveitis you guys Syndications, We said was launched in late Germany late September in Germany, and we do think we're seeing an impact there and we're seeing you know and improvement in sales.
In the in October .
In the UK, the nice guidance or the trust had until October 1st to implement a nice guidance for reimbursement I mean, so we do believe we're seeing an impact in October we don't believe that you'd be obvious impact in the third quarter materially at all it's very very difficult for us to though identify specifically where units going you know because we don't.
We don't see individual prescriptions. So we don't know when a unit goes out the door, whether it's gone your uveitis patients niemi patient, but we are seeing you know a bump in sales as we start the fourth quarter. So we do think it's having an impact.
Richard S. Eiswirth: Okay, okay, good to hear. And then, this is my last question.
Okay. Okay. Good to hear and then just my last question I believe.
Richard S. Eiswirth: I just believe certain regions like Portugal, and then you referenced France, that historically had, you know, very strong per capita basis, at least, utilization of corticosteroids. I was wondering if any upcoming regions like Belgium, the Netherlands, or Luxembourg, or even Canada, and it's been about a year since you obtained approval there, are any of these new target regions similar in their corticosteroid utilization?
Certain regions like Portugal, and then Youve referenced France. They historically had a very strong per capita basis at least.
Utilization of corticosteroid I was wondering if any upcoming regions like Belgium, the Netherlands, or Luxembourg, or even Canada.
It's been about a year. Thank you obtained approval there or any of these new target region similar from they're corticosteroid utilization.
Richard S. Eiswirth: Yes, Andy, I would say, no, I mean, there's nothing that is material out there, you know, as it is in southern Europe, you know, both because of the size of the countries, the size of the populations, and the way they use steroids. However, I would say that as we go into some of these newer markets like, you know, Belgium and the Netherlands and Luxembourg and, you know, and other countries, we are... launching the drug from a much, much better position, right? You know, as I've said before on some of these calls, unfortunately, I think the way the drug was launched both in Europe and the US a few years ago was geared much more toward refractory patients and as a three-year alternative to anti-VEGFs.
Yes, I any I'd say.
No I mean, there's nothing that is material out there you know as it is in southern Europe , both because of the size of the countries on the side of the populations in the way they use steroids. However, I would say that as we go into some of these newer markets like you know, Belgium, the Netherlands in Luxembourg and in other countries that we are low.
Launching the drug from a much much better position right you know as a as I've said before on some of these calls you know Unfortunately, I think the way the drug was launched both in Europe and the U.S. a few years ago. It was launched much more toward refractory patients and being a three year alternatives to anti but just and with the stress around this is this should be used earlier treated.
Richard S. Eiswirth: And with the stress around, you know, this should be used earlier, it treats the disease consistently every day, and it does something that acute therapies don't do. I think we're positioning the drug much better for these launches. And so I think, frankly, our partner in France, Horace, has done an outstanding job of launching it, you know, under that theme and that position, and I think that has contributed greatly to their launch as well. So the hope is that our positioning is better every time we interact.
Disease consistently every day it does something the acute therapies don't do I think we're positioning the drug much better for these launches and so I think.
Frankly, I think our partner in France horse has done an outstanding job of watching it onto that theme that positioning and I think that has contributed greatly to their launch as well. So the hope is that our positioning is better every time, we enter new market now.
Richard S. Eiswirth: Okay, great. And in Canada? Any sort of update there?
Okay, Great and in Canada is any sort of update there.
Richard S. Eiswirth: Canada, the Canadian partner is still working on pricing and reimbursement there, you know they don't expect to have anything well into next year at best. That's often an 18 month process at least, so I think it'll be a while before we hear more.
Canada, the Canadian partner is still working on pricing and reimbursement. There you know they don't expect to have anything well into the next year at best.
It's often an 18 month process at least so I think it'll be a while you're more in Canada.
Andrew DeSilva: Okay, awesome. Okay, guys. Hey, thank you very much for taking the questions and good luck closing out 2019.
Okay Awesome, Okay, guys, Hey, Thank you very much for taking the questions and good luck wasn't out tween I can.
Richard S. Eiswirth: Thank you for your comments, Andy. We appreciate them.
Thank you for your comments and we appreciate it.
Our next question will come from Alex Nowak.
Operator: Our next question will come from Alex Nowak of Craighalem Capital Group. Please go ahead.
Craig Hallum Capital Group. Please go ahead.
Alexander David Nowak: Hey, good morning everyone. I want to dive into the recent financing decisions So, just given that you guided to cash flow break even here in the next, you know over the next couple quarters, and you have sufficient cash today, the financing agreement It's got to imply to us that you're planning to go out here and purchase an asset So I was just hoping we could potentially get some color there, you know What sort of asset do you plan to target? Is the 20 million in capital even going to be sufficient to cover that? Will this be a commercial asset or a late-stage one? Pipeline product, and just how would an acquisition impact the cash flow break even projections?
Good morning, everyone I wanted to dive into the recent financing decisions. So just given you guided to cash flow breakeven here in the next you know over the next couple of quarters and you have sufficient cash today, you know the financing agreement, it's got to imply otherwise, but your that you're planning to go out here and purchase an asset. So I was just hoping we could potentially get some color. There you know what's.
Out of asset do you plan to target is the 20 million in capital even going to be sufficient to cover that would just be a commercial asset or late stage pipeline product and just how would an acquisition impact the cash flow breakeven projections.
Richard S. Eiswirth: Well, Alex, a couple of points there. I mean, the facility that we put in place is, you know, we think it's good housekeeping, right because I think there's a lot of uncertainty over the next 12 months about what's going to happen with the capital markets and the ability to raise money in those capital markets, you know, with the election and other factors contributing to that. So we wanted to make sure we had access to capital over a period of time if we needed it. You're right on point that one of the reasons we would like to have more capital, you know, is to look for other things to tuck into this organization.
Well, so so Alex a couple of points, there and I think the credit facility that we put in place right is we think is good housekeeping right because I think there's a lot of uncertainty over the next 12 months on what's going to happen with the capital markets and the ability to raise money in those capital markets you know what the election and other other factors contributing to that so.
We wanted to make sure we had access to capital over a period of time, if we needed it you're right on point that one of the reasons, we would like to have more capital is to look for other things to talk into this organization.
Richard S. Eiswirth: I can't comment specifically on any transaction or product that we were looking at or would look at, although I will tell you, just in general, obviously, the priority would be something pharmaceutical, right? We would love to get another pharmaceutical asset for the retina space. The closer to commercialization it is, the better, because it's the best leverage for, you know, what we want to do. At the same time, we are also open to looking at devices in the retina space, because retina physicians, unlike other areas where you typically keep pharma and retina separate, are doing surgery one or two or three days a week in addition to treating in the office. And we've talked to physicians about that, and we think, you know, if we could find the right thing there, it could give us the opportunity for a longer, more quality call with that physician as well, because you get more time in a surgical arena than in the office. So, we're very open, but the focus is, you know, something that serves the retina doctor and their patients.
I can't comment specifically on any you know transaction or product you know that we were looking out are we look at although I will tell you just in general obviously the price the priority would be something pharmaceutical right, we would love to get another pharmaceutical.
Asset for the retina space the closer to commercialization that is the better because it's the best leverage for.
You know what we want to do at the same time. We're also open to looking at devices in the written space because retinal physicians.
Unlike other areas, where you typically Q farm in retina separate retinal physicians are doing surgery, one or two or three days a week. In addition to treating the office and we've talked to physicians about that and we think we could find the right thing there it could give us the opportunity for longer more quality call would that position as well because you get more time of surgical arena and then the office so.
We're very open but the focus is something that serves the rep physician and their patients.
Okay, understood and but but I guess, what where I get distracted buying an asset right now instead of putting the heads down refocusing on ILUVIEN Cafe in my opinion I think ILUVIEN has been is undervalued asset that you've had and I think there's still a potential left in there and I'm just.
Richard S. Eiswirth: Okay, understood. But I guess, why get distracted by buying an asset right now instead of, you know, putting the heads down, and refocusing on Alluvion? Because, in my opinion, I think Alluvion has just been this undervalued asset that you've had, and I think there's still a lot of potential left in there. And I just, why get distracted from that, is, I guess, the question.
Why why do I get distracted from that is I guess the question.
Richard S. Eiswirth: Well, so I wouldn't necessarily call it a distraction. Look, I think strategically, we have a job to continue to grow this company for the long haul and deliver value. I think from an operational perspective, every day we are focused on Elluvian, and I think we're getting a lot better at what we're doing at Elluvian by doing that. I think strategically at the executive level, we've got to evaluate ways to make this company bigger and stronger because it's been viewed as a single product company, and I think that's contributed to some of the pressure on our stock price over time. But at the same time, I agree with you. We've got to find the right asset that's not a distraction, and frankly, although we've been pursuing this strategy, it's why we don't have a second asset on hand right now because we will be picky, and we will make sure we find the right thing that can be leveraged by our team and is accretive to the story, not dilutive in the form of a distraction.
Well, so I wouldn't necessary Calder distraction look I think strategically you know we havent job to continue to grow this company for the long haul right and deliver value I think from an operational perspective everyday we are focused on ILUVIEN and I think we're getting a lot better what we're doing it the living in doing that I think strategically executive level, we've got to evaluate ways to make this come.
Any bigger and stronger because it's been viewed as a single product company and I think that's contributed to some of the you know some of the pressure on our stock price every time, but at the same time I agree with you we've got to find the right asset that's not a distraction and frankly, although we've been pursuing the strategy. It's why we don't have a a second asset on.
Hand, right now because we will be picky, and we will make sure. We find the right thing that can be leveraged by our team and is accretive to the story not dilutive in the form of a distraction.
Okay understood you just kind of switching over to international it's been one of the bright spots here over the last couple of quarters. You know what was the reason for for the management change over here on the international segment.
Richard S. Eiswirth: Okay, understood. You're just kind of switching over to international. It's been one of the bright spots here over the last couple quarters. What was the reason for the management change over here in the international segment?
There was not I mean, there was no change in the in the international segment at all it was the it we added to it. So we did not have a VP of sales over there and what we've done as we've hired a VP of sales to parallel when Andy Young's doing here.
Richard S. Eiswirth: There was no change in the international segment at all; we just added to it. So we did not have a VP of sales over there, and what we've done is we've hired a VP of sales to parallel what Andy Young is doing here. So Steve Lobb has been sort of inserted in the middle between Philip Ashman and the country managers over there to just provide more control and more consistency over the sales effort and work closely with Andy Young. We operate sort of functionally in Europe, so we have a VP of marketing, we have a VP of medical affairs, and we now have a VP of sales to manage all the functions across the countries and ensure consistency across Europe.
So Steve Lob has been sort of inserted into the middle between Philip Asherman and the country managers over there to just provide more control more consistency over the sales effort and work closely with Andy Young.
You know, we operate sort of functionally in Europe . So we have a VP of marketing we have a VP of medical affairs, and we now have a VP of sales to manage all the functions across the countries and get consistency across Europe .
Richard S. Eiswirth: Got it, okay. And what is the new consistent, you know, international run rate here as you look forward per quarter? Is 4 to 5 million, you know, a good target here?
Got it okay, and what does the new consistent you know international run rate here as you look forward per quarter is that as a four to 5 million or you know a good target here of the next couple of quarters.
Richard S. Eiswirth: I think we're getting close to that $4 million rate. I think our direct business is somewhere in the $3 million range and getting stronger, and we will continue to have distributor income that's a little bit more inconsistent quarter to quarter. But I think a $4 million rate is a pretty good run rate at the moment.
Yeah, I mean, I think I think you know, we're getting close to that $4 million rate I mean, I think our direct business is somewhere in the $3 million range and getting stronger and we will continue to have distributor income.
Thats, a little bit more in consistent quarter to quarter, but I think $4 million rate is a pretty good run rate at the moment.
Alexander David Nowak: Okay, I understand. Thank you.
Okay understood. Thank you.
[noise] and our next question will come from James Malloy of Alliance Global Partners. Please go ahead.
Operator: And our next question will come from James Molloy of Alliance Global Partners. Please go ahead.
Hey, guys. Thanks, taking my question I suppose.
James Francis Molloy: Hey guys, thanks for taking my question. I have some more on Alex's question on acquisitions. Can you speak a little bit to what you're seeing in the space? Is it more of a buyer's market? Are there, you know, 10 opportunities you're able to look at, or one or two? And then any potential guidance you're able to give us on potential timing of an acquisition would be great.
Some more on Alex's question on the acquisitions can you speak a little bit too.
As seen in the space is it more a buyers market other 10 opportunities you're able to look at or weren't too and then any potential guys, who does it give us on on potential timing of an acquisition to great.
Richard S. Eiswirth: Jim, I can't. I can't really give you any more color than that. I can't speak, you know, about any specific acquisition. I will tell you that there are limited opportunities that are near-commercial in the space, so we also need to look at things that are a little bit earlier in the pipeline. You know, our goal was to do something in the 6- to 18-month time range from when I came on board. And as I said, we're still in the middle of that, and we are still pushing for that. As I responded to Alex's question earlier, at the same time, we're not going to take a risk on the wrong asset to add this as well because we think alluvium is extremely underutilized, and there's a lot of potential to grow revenue with that. So we'll be opportunistic, but we're going to be very smart and prudent about it as well.
Yeah, Jim I can't I, I can't really give any more color, Matt I couldn't speak about any specific acquisition I will tell you that there's there's limited opportunities that are near commercial in the space. You know so we also need to look at things that are little bit earlier in the pipeline.
Our goal, we said was to do something in the in the six to 18 month time ranged from when I came on board.
As I said, we're still in the middle of that.
And we are still pushing for that but as I responded to alexs question earlier at the same time, we're not going to take a risk on the wrong asset to add this as well because we think ILUVIEN is extremely underutilized and there's a lot of potential to grow the revenue with that so we'll be opportunistic, but we're going to be very smart and prudent about it as well.
Richard S. Eiswirth: I agree, getting another opportunity in the bag for salespeople makes a ton of sense. Could you speak a little bit about the guidance for the fourth quarter, which I think was said to be consistent with what you've seen? So should we be looking in the, you know, 13, the 11 to 13 range for the fourth quarter, 19, or what sort of a range you should be looking for there? And then, I guess, the last question, too, on the retreatments have been a big question, Mark, one of the three-year retreatments coming back, anything you've seen in the quarter for those coming back and how that might look going forward?
Hi, good getting another another opportunity that back for salespeople makes kind of sense I can speak a little bit too.
I guess the to get the guidance for the fourth quarter. I think was just said to be consistent with what you've seen so should we look in.
And 13 that 11 to 13 range for the fourth COVID-19 or.
What sort of at what sort of range, you're looking for there and then.
I guess, one last question too on the on a Retreatments has been a big Big question Mark one of the three year, Richard just come back and I think you've seen in the quarter to those coming back in and how that might look going forward.
Richard S. Eiswirth: Yeah, so a couple things. I think what Phil's comments were characterized there is that he referenced 16% year-to-growth and that we feel like we'll be consistent with that level of growth absent the OSRDEX revenue last year. Does that make sense?
Yes, so a couple things that make what what Phil's comments were characterize their as he referenced 16% year to growth and.
And that we feel like will be consistent with that level of growth absent. The odds are decks revenue last year.
That makes sense.
One when I'm sorry.
Richard S. Eiswirth: One more time? I'm sorry.
Richard S. Eiswirth: So what Phil referenced in his comments when he was giving you some guidance toward the end of the fourth quarter was saying year-to-date we've been about 16%, and he thinks that 16% will hold true absent the one-time Ozidex revenue last year.
So what what Phil referenced in his comments when he was giving you some guidance towards the end of the fourth quarter were saying year to date, we've been about 16% and he thinks that 16% will hold true absent the onetime objects revenue last year.
Okay, Great and then the commentary on AWS would actually had earlier in the call is that foreshadowing, perhaps another reason I think there might be another.
Richard S. Eiswirth: Okay, great. And then the commentary on Ozidex you had earlier in the call, is that foreshadowing perhaps another, is there any reason to think there might be another shortfall for Ozidex in the fourth quarter?
Shortfall for how that works in the fourth quarter. Yeah. This is something that from an inherent.
Richard S. Eiswirth: Yeah. Is there some sort of proof inherent in that?
Richard S. Eiswirth: Yeah, so we would say, I mean, I would say that that's possible, but it's nothing that we are counting on at this point. What we had heard, and some of the rumors out there, is that Azuredex was going to be out of stock or unable to ship in October in a couple of markets. We heard about it in France, in the U.S., and in Germany, maybe. However, as we've been out there talking to accounts, it appears, as I said earlier, that Allergan really got a lot of their larger accounts, and frankly, a lot of the accounts that we're in as well, to stock up on Azuredex prior to the shortage, and that they've been able to use what's in their inventory So we have not seen an impact of it yet, and if they're able to start shipping again in early November, as we've heard, there probably won't be any one-time impact from that this coming month.
So we would say I mean, I would say that that's possible, but nothing that we're counting on at this point, what we had heard and some of the rumors out there is that objects was going to be out of stock are unable to ship in October and a couple of markets. We heard in I believe we heard in France, I'm in the U.S. and in Germany, maybe however.
As we've been out there talking to accounts. It appears as I said earlier that Allergan really got a lot of their larger accounts.
And frankly, a lot of accounts that were going as well to stock in ALS your decks prior to the shortage and that they've been able to use what's on in their inventory in the month of October . So we have not seen an impact of yet.
And if they're able to start shipping again in early November is that as we've heard there probably won't be any onetime impact from that this quarter.
Got it. Thanks, just last question on on the NASDAQ listing to speak a little bit about the current thinking on getting that squared away.
Richard S. Eiswirth: Last question, on the NASDAQ listing, can you speak a little bit about the current thinking on getting that squared away?
Richard S. Eiswirth: Yeah, so we, you know, we have a prospectus on file, and we've got a shareholder vote on a reverse stock split next Monday. So our plan is to address that, you know, before the end of the month of November.
Yes, so we we have a prospectus on file and we've got a shareholder vote on a reverse stock split next Monday. So our plan is to address that before the end of the month of November .
James Francis Molloy: Great, thank you for taking the question. Sure.
Great. Thanks for taking the questions.
Sure.
And our next question will come from each of H.C. Wainwright. Please go ahead.
Operator: And our next question will come from Yi Chen of HC Wainwright. Please go ahead.
[noise]. Thank you for taking my question just to confirm that the current shares outstanding is 74.4 million roughly.
Yi Chen: Thank you for taking my question.
Yi Chen: That would be correct, roughly.
Yi Chen: What would be the 40 dollar issues?
Yi Chen: The fully diluted shears would do so
Phil Jones: Yeah, 107.
That would be correct roughly.
Phil Jones: Yeah, 107. 107, and that would include, again, all the preferreds and the insider participation shares for options and stuff. 107, Yes, 107 million. Okay, got it. Thank you.
After the a after the take down from Lincoln Park capital.
I will repeat the fully diluted shares currently.
The fully diluted shares would the.
Oh, Yes, 100, 707 that and that would include again all of the preferred and ER and the the inside of participation shares for options and stuff.
107.
100, yes 107 million.
Okay got it thank you.
This concludes our question and answer session.
Richard S. Eiswirth: This concludes our question and answer session. I would like to turn the conference back over to Rick Eiswirth for any closing remarks. Please go ahead, sir.
I'd like to turn the conference back over so Rick Eiswirth for any closing remarks. Please go ahead Sir.
Operator: I want to thank all of you for participating in today's call and for your interest in Alimera Sciences. We do look forward to sharing our progress on our next quarterly conference call when we report our fourth quarter results for 2020 in early 2020. Thanks, and have a good day.
I want to thank all of you for participating on today's call and for your interest in Alimera Sciences, We do look forward to sharing our progress on our next quarterly conference call. When we report our fourth quarter results for 2020 for early 2020.
Thanks and have a good day.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.