Q4 2019 Earnings Call
Greetings and welcome to the Baby, Oh, I fully caught up and full year 29 chain financial results cold and wet cost.
John I'll talk to students are not listen on the board. A brief question answer session will follow the formal presentation.
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As a reminder, this conference is being recorded.
There's now my pleasure to introduce your host carry clearly I see a foreign.
Thank you Terry you may begin.
[music].
Thank you and good afternoon, everyone welcome to our fourth quarter and full year 2019 earnings conference call.
Leading the call today, its homecare Chief Executive Officer, we're joined by Scott's question, President and Chief Commercial Officer.
Following our prepared remarks, we will conduct a question answer session.
Earlier today by the recites issued a press release announcing its financial results for the fourth quarter and school year 29 team.
A copy of the release can be found on the Investor Relations page of the company's website.
Before we begin I'd like to remind everyone that certain statements may be made during this call which may contain forward looking statements such forward looking statements are based upon current expectations and there can be no assurances that the results contemplated in these statements will be realized.
Actual results may differ materially from such statements due to a number of factors and risks some of which are identified in our press release, and our annual or quarterly and other reports filed with the FCC.
These forward looking statements are based on information available to Mediasite today March 12, 2020, and the company assumes no obligation to update statements as circumstances change.
An audio recording and broadcast replay for today's conference call will also be available online.
In the Investor section of the company's website.
With that I'd like to turn the call over to home cooked here huh.
Thank you very much Terry it's my pleasure to welcome everyone to medium size fourth quarter and full year 2019 earnings call.
I'm very pleased to report that our employees once again delivered another very successful quarter to cap off an outstanding year in 2019.
To persist into dedicated effort throughout the year, we've accomplished our goal of transforming the enterprise and positioning ourselves for long term sustained growth.
The quarter was characterized by continued strong execution, including achieving record levels of prescription growth.
On the Describer, an insurance coverage for BELBUCA. Some problems in addition to launching new innovative campaigns and scientific program.
Together. These efforts helped achieve the seventh straight quarter of significant growth and strong financial performance for the company.
I would like to thank our employees for their outstanding accomplishments, both during the fourth quarter and throughout all the 2019.
Moving into 2020, <unk> and we'll continue to further capitalize on the growth potential above no buker ensign problem, but building upon the successful commercial foundation, we have established.
In a moment Scott will go into more details of this next stage of a part of acceleration plan, which remains true to our pillars of optimizing salesforce customer interactions ensuring open inappropriate access to our partner.
Building medical confidence scientific knowledge and bring in voice to the patients into treatment process.
An important example of our determination to further advance assigned to the governance supporting after the branching attributes adult buca.
As the previous we are now phase one respiratory drive study, which was presented at the American Academy of Pain Medicine meeting last month.
The primary objective of the study was to evaluate the impact of BELBUCA and all the codell on respiratory drive in healthy volunteers, they measure correlated with the risk of respiratory depression.
Importantly in this study, but because effect on respiratory drive was comparable to placebo with all tested doses, which included the highest available market. It does the 900 micrograms.
This contrast that with the results Oxycodone, which experienced a dose dependent decrease in respiratory drive in the study, including being statistic, we lowered the placebo really single dose of 60 milligrams.
We believe this is important information for health care providers, and we'll be sharing more details in medical forms throughout the year.
Moving forward, we will continue to work with the medical community to identify additional clinical information. So deep understanding of BELBUCA is unique properties and usage and the management of chronic pain patients.
Finally in regard to some probably well there's more work to be done the rebound of growth trajectory during the fourth quarter and sustained shared gains to start the new year highlight the parts the control as an ideal operational complement to BELBUCA.
We've been able to successfully leverage our existing commercial infrastructure to continuously adds significant number of new prescribers every quarter for some pro and achieved record number of scripts.
With the addition of approximately 40 million commercial lives the preferred position to start one twin I'm confident we're poised for long term sustained success with some probably through its patent exclusivity, which as a reminder, last until at least 20 to 31.
To conclude the fourth quarter was once again, mark but very strong in focus performance throughout our organization in line with a vigorous trajectory established in prior quarters, we accomplished a great deal in 2019 or a crowded the value we bring to patients every day with meaningfully differentiated products. We are excited.
About the opportunities ahead of us and confident in our ability to successfully capitalize on them with continued focus and strong persistent execution.
Before turning the call over to Scott I like to briefly address the current cobot 19 times them.
We are very closely monitoring the rapidly evolving situation and its potential impact on our business.
We have a very strong balance sheet and a minimum of three months of finished goods on hand for all products.
Additionally, BELBUCA schedule free product allows for prescriptions to be filled over the phone and also allows for multiple refills without the need prescription.
Most importantly, as their health care company. Besides employees have an important mission and we'll continue to work hard every day to serve the patients and customers rely on us to supply or clinically meaningful products.
With that I will turn the call over to Scott to provide more details of the operational success during the fourth quarter and throughout 2019 spot.
Thank you are at some highlights of our commercial team continued to deliver record levels above you go prescriptions and revenue during the fourth quarter.
Additionally, the drug is tracking in line with expectations during January and February a period, which tend to exhibit seasonal softness the craft across branded pharmaceutical products as patients change healthcare plans and deductibles are we thought.
During Q4 2019, we reached another all time high for BELBUCA prescription of more than 96100 retail tier axis.
This represents a 71% increase in BELBUCA, Texas compared to approximately 56200 total prescriptions in the fourth quarter of last year.
The strong finish the year resulted in BELBUCA generating 331700, Trx isn't 2019, which represents an increase of approximately 104% over the previous year.
We have demonstrated a strong track record of commercial execution with BELBUCA remain calm and confident in the sustainability of back growth based upon our of several key drivers and supportive market dynamics, which I'll now discuss.
First our prescriber base for BELBUCA and the <unk> fourth quarter continue expand and grew by over 1200, new prescribers the fourth quarter in a row, where we added more than 1000, new prescribers.
With over 7300 total unique prescribers in the quarter, an increase of 37% versus the same period a year ago.
With respect to our established prescriber base or can it continuing to see a quarter over quarter increase in BELBUCA prescriptions across high medium and low that's all prescribers highlighting the broad acceptability of the Brad.
These trends also show that health care providers are able to access belviq with pure restrictions to the large improvements we've made the market access for the past two years and now into 2020.
During the fourth quarter, new to brand market share of 7.3% was down modestly versus 7.6% in Q3, but still well above total trx share of 3.3%, which indicates that there are still significant opportunity to grow total prescriptions as these mattress consider historically converge.
While we have worked to do the 3.6% Trx market share. The BELBUCA has attained in February of 2020.
Is this confidence we're moving into right direction.
We believe that the extremely successful 2019. The BELBUCA enjoyed was largely the result of four point growth plan that we put in place at the on 28 gene.
Now that we've had the results from the first stage of our growth plans and we've had time to learn more about our customers. We have initiated the second stage of our client.
We believe this next stage will build on our previous success and let me provide some specific initiatives.
First we have built a significant BELBUCA prescriber base, the productive long acting, albeit prescribers.
When analyzing many of these prescribers, we believe we can increase prescriber productivity by converting trial is to adopters, specifically within medium to high decile prescribers.
Our research indicates that reinforcing the efficacy and safety profile for BELBUCA will lead to an increase in BELBUCA adoption.
There's also an opportune to add new unique BELBUCA prescribers throughout the year. When you look to add approximately 5000 during 2020.
We have learned from our insights that messaging around BELBUCA is apathy extensive market access will allow us to continue to build its prescriber base.
Next we believe that BELBUCA sales are benefiting from the current paradigm shift in the treatment of chronic pain and the reduced use of C. Opioids.
The primary use the BELBUCA or buprenorphine price prior to failing other classes the opioids aligns with the best practices recommendations from the HHS Task Force report, which was published last night.
We believe that this is one of the reasons, we're seeing that approximately 85%. The overwhelming majority of our patients that are new to BELBUCA are switching from short acting opiates of our buca or be BELBUCA is being added to them the goal of reducing their seats you opioids.
Oxycodone IR and Hydrocodones IR account for approximately two thirds of this volume and provide a focus for us.
We will specifically look to capture market share when patients are transitioning from short acting to other long acting.
Like battle and and Oxycontin.
The share of these other long acting opioids are declining well above you could share steadily growing our market research and knowledge of our customer supports that this focus will lead to an increase in BELBUCA prescribing.
Finally during Q4, we announced that we'll be adding up to 14 million lives covered in either preferred.
Verdicts was position through a leading national PBM.
Never the plans utilizing the PBM made this formally changing in Q4, but the majority of the implementations are occurring in 2020.
Encouraged by the early results were seeing within this DPM when as our share with has reached a high a 4.7%.
What does the dish and there are now nearly 105 million patients will prefer commercial coverage or close to 60% of lives.
This recent win is important to our growth and we believe there remains a significant opportunity to grow our business what the other previous payer.
Our our confidence with the long term outlook for some product continues to grow now that we've completed our second full quarter of promotion.
As previously stated <unk> is a good complementary second position detailed product to BELBUCA allows us to leverage our high performing salesforce amongst our pain specialists targets.
We're still in the early innings of the parks relaunch of work to do here as well and saw improved growth during Q4 and Q key metric so far in 2020 support our continued momentum.
Q4 retail prescriptions for some pork reached over 16500, which is a new high and a 36% increase year over year compared to Q4 2018.
We also reached a new high an interaction of over 9500 for the quarter.
During Q4 2019, we generated a 12.7 and our next year and 11.2 trx share representing the highest market share of 29 team.
We expect continued trx and revenue growth for some product as it enteric share has consistently exceeded trx share since may 2019, and is running above 13% so far in Q1.
To assure we accomplished this goal we are initiating additional marketing efforts it seeks to increase prescriber uptake.
Since we are still in relaunch mode for some product is crucial that we build our prescriber base.
In the fourth quarter, we successfully added 920, new prescribers for some corporate which helped the brand reach another new quarterly high of over 4800 prescribers.
Importantly, as we anticipated our current BELBUCA prescribers provided 80% of the growth that we saw for support during the quarter.
A key growth driver for some color will be the enhanced market access for up to 404, sorry, 40 million commercial lives that we announced recently.
We are encouraged that within the PBM that was part of that announcement, we've already seen approximately 25% increase and for more market share with continued opportunity for growth.
We are intensely focused on our BELBUCA second stage growth plan, which will expand our prescriber base.
Increased prescriber productivity and maximize pull through of our market access wins.
Since the program will continue to leverage our existing relationship with payers and prescribers and we'll strive to maximize the impact of recently improved access.
We are confident in our ability to execute commercially and believe that our teams customer relationships and focus will continue to deliver clinical value for patients.
With that ill turn the call over to Terry the cover the financials in more detail Jerry.
Thank you Scott It's Herman Scott discussed, we're very excited to report outstanding fourth quarter and full year results.
Many 19 with a transformational here from a financial perspective, as we leveraged our significant top line growth improved our gross margins and improved our debt position, which reduced our cash interest payments, culminating in closing the year with $64 million of cash on hand, and a very strong balance sheet.
Total company net revenue for the full year 2019 at $111.4 million exceeded our 2019 revenue guidance of $105 million to $110 million.
Total revenues for 2019 were up by 100% when compared to $55.6 million for full year 2018.
The increase in 2019 is principally driven by BELBUCA, which accounted for 88% of total sales for the year end. This successful ambition of some product to our commercial portfolio in the second quarter of 29 team.
Full year 2019, net sales for BELBUCA, what's $97.5 million up 112% or more than double the $46 million in 2018.
And probably has been an ideal complimentary product for media side, as we were able to effectively integrate it into our product portfolio and take advantage of the substantial overlap in the target prescriber base.
Acquiring the U.S. commercial rights to some pro assumption. Okay. In April 2019, we had booked net sales of approximately $8.1 million in the last three quarters of 2019.
Total company gross margin for full year, 2019 was 81% a meaningful improvement as compared to 72% in the prior year.
Excluding the onetime impact of approximately $3.8 million and costs associated with the plan discontinuation of marketing of Universal announced in March of this year. The full year 2019 gross margin for the company would've been 82%.
So bugher gross margins improved 100 basis points year over year to 86% of net sales, reflecting continued improvements in manufacturing costs associated with both scale and process improvements.
Total operating expenses for the full year 2019 were $86.1 million compared to $63.5 million for 2018.
Year over year increase is primarily driven by the impact of the expanded salesforce and market access team.
Well as the establishment of the medical Affairs and MSL team together with the introduction of can probably into the portfolio.
We expect a 2020 will contain a full year of these additional resources, which were gradually implemented throughout 2019. In addition, some further investments supporting patient outreach and additional clinical trials and medical education behind BELBUCA.
GAAP net loss for the full year 2019 was $15.3 million or a net loss of 18 cents per share compared to GAAP net loss of $46.4 million, which included in 2018, which included a 12.5 million dollar loss from the beneficial conversion feature of preferred stock 20.
18, GAAP net loss, excluding the beneficial conversion feature of preferred stock was $33.9 million.
2019, full year, EBITDA was $12.5 million or 11.2% of net sales as compared to negative EBITDA of $17.5 million or negative 31.4% of net sales in 2018.
And non-GAAP net income for full year, 2019 was $13.2 million or 11.8% of net sales and reflects GAAP net income excluding stock based compensation noncash amortization of intangible assets and warrant discounts the nonrecurring costs of the debt refinancing which closed in May 2019.
And the nonrecurring financial impact related to the skin discontinuation of the marketing of the Annabel.
Let's turn to the fourth quarter 2019.
For the quarter financial results exceeded both the third quarter of 29 team and the prior year quarter.
Total net revenue for the fourth quarter 2019 was $31.6 million, an increase of 75% compared to $18 million in the fourth quarter of 2018.
In addition, total revenues in this fourth quarter increased by 4% compared to $30.3 million in the third quarter of 2019.
BELBUCA net sales in the fourth quarter were $28.3 million, an increase of 78% compared to $15.9 million in the fourth quarter of 2018, the net sales growth of 7% in the first fourth quarter versus the third quarter was primarily driven by the continuing growth in prescriptions, which Scott shared as Greg.
And that deductions that 51% remained relatively flat quarter over quarter.
And probably net sales in the fourth quarter were $2.7 million can products net sales increased 25% versus the third quarter, mostly driven by our ability to leverage our high performing salesforce.
Royalty revenues for ex us sales of pain, Killen breakout totaled $1.2 million for the three months ended December 31st 2019 inline with the royalty revenues during the fourth quarter 2018, and an increase of $500000 compared to the third quarter of 2019.
Total gross margin for the quarter was 77% as compared to 78% in the fourth quarter of 2018.
Excluding the onetime 3.8 million dollar impact of the beauty of L. discontinuation costs. The overall company gross margin in the fourth quarter of 2019 would've been 883%.
Total operating expenses in the fourth quarter of 2019 were $23.8 million compared to $18.5 million in the fourth quarter of 2018 and $23.4 million in the third quarter of 2019.
The drivers of the year over year increased in the quarter are consistent with what I shared regarding the full year increase in operating expenses.
GAAP net loss for the fourth quarter was $700000 or a net loss of one cents per share compared to GAAP net loss of $7 million in the fourth quarter of 2018 or net loss of 10 cents per share.
The fourth quarters net loss reflects our overall revenue growth coupled with improving gross margins as well as our improving operational efficiency. These factors were partially offset by nonrecurring costs of approximately $3.8 million associated with the announcement this amounts to discontinue marketing of universal in 2020.
EBITDA in the fourth quarter of 2019 was $4.1 million or 13% of net sales compared with negative $3 million in the fourth quarter 2018.
And $3.5 million or 11.7% in the third quarter of 29 team.
This is our fourth consecutive quarter and first full year of being EBITDA positive, which highlights the company's commercial success and operational efficiency.
Non-GAAP net income for the fourth quarter was $6.4 million and reflects GAAP net income excluding stock based compensation noncash amortization of intangible assets and the nonrecurring financial impact related to the the discontinuation of the marketing of the Annabel.
At December 31st 2019 media side had cash cash equivalents of approximately $63.9 million. This compares to cash and cash equivalents of approximately $55.9 million at September Thirtyth 2019.
Operating cash flow in the fourth quarter was $16.9 million compared to negative $5.8 million in the fourth quarter of 2018.
Your operating cash flow was $11.1 million.
As I indicated earlier, we're pleased to end 2019, with a healthy balance sheet and strong overall financial position.
We're very proud of our accomplishments over the past year I look forward to continuing to bring meaningful clinical value to our patient.
We'd now like to open the lines for questions operator.
Thank you we will now be conducting a question and I'll just session.
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Your first question comes from Brandon Folkes of Cantor Fitzgerald. Please go ahead.
Hi, Thanks for taking my question again, congratulations and all the progress this year.
Firstly can you talk about any feedback you've received and physician on their willingness to rock BELBUCA prescriptions have been it's fine.
It seems to be yet another potential significant advantage and just trying to get a sense of how we should think about this pull through in practice and maybe give any change if the patient actually aware that they can get a prescription this way. Thank you.
Hey, Brandon it's Scott. Thank you for the question.
Timely.
We we actually are making sure the physician level that the words do this but we see this quite commonly theres. Obviously, you prescribing is more and more common as time, but it has become more comments time gone all have gone on but it is an advantage to have a C where you basically can have a hard script.
Or call. It and then also ultimately AD recall stood as well up to five months.
And then on the patient side, I know theres that awareness on that side.
I do think that.
We really havent.
That's something we're only pursue that the patient level.
I just.
Uh huh.
I'm, sorry, but I was just could add will sell thing, though that you're absolutely right in.
And I do think it's an opportunity and I think it's something that.
We're going to be taking a very close look at right here in the very near term.
Great. Thanks, very much and then maybe just shifting tuscon, probably Sam looks like I did start to Twentytwenty. How could you just maybe I'm not a right and change the gross drive ins. We should expect Trentwood 20 is it going to be increased access to.
Do you expect more win just any additional color Dave. Thank you.
No again brand. This is Scott, yes, the the market access ones or are going to be I think critical for growth. So adding 40 million preferred lives is substantial it's taken us to almost 60%.
Preferred coverage there as well so we'd open up those lives where they were not covered previously.
One of one of the lives were co preferred within CBS.
Within Prime we've seen a as I had mentioned in the script, we've seen a jump in the market you're already from about 20% to little bit over 45%.
In February so still a lot of more work to do there, but we're seeing some really nice pull through.
Great. Thank you very much.
Thank you.
Next question comes from David and some of Piper Jaffray. Please.
Please go ahead.
Thanks, So I'm just building on on the first question.
Maybe it's too early to to assess this but are you.
Are you in a position to talk about the extent to which doctors are.
Writing.
New prescriptions for a given brands pain product like BELBUCA, and our or our paring back.
There are appointments with patients. So that's number one maybe too early to really assess that budgets, but I'd give it to try to ask.
And then secondly, what's your goal regarding.
Percent covered a percent of commercialized and Medicare part D lives.
Do you ultimately think.
We will have preferred access to two belt, Luke and I mean, what should we think in terms of steady state for both on the commercial front.
And the Medicare.
Part D front in terms of preferred access thanks.
Hi, David Scott again, so regarding the offices and their prescribing seeing patients we are hearing some sporadic.
Situation.
I think it's really early.
I understand any kind of impact at this point in time, so probably.
Wouldnt be responsible to comment on it.
Obviously, we are monitoring closely and looking at how we can.
Mitigate anything that went to or would it would occur.
And then HM.
Thanks, Good luck, guys and with regard to our ambition with.
Open access for the product as we've been saying all along we believe that Dubuque is a very important differentiated opportunity for physicians and their honored to him and the management of this patient population and we'd like to see all patients have opened an appropriate access to the product and as Scott mentioned, we've done a tremendous job international side will we have.
Well over 90% open at certain 60% of that being preferred.
We're going to continue to chip away to increase that deferred coverage I think the vast majority of that now is really more of the original plan.
On the team worked very hard to to open up that's the preferred level and then the Medicare thousands and sing a long it's been a lot stickier.
Certainly have been disappointed by the the challenges with the opening that up to the Medicare patients, but we continue to have a very constructive discussions we're absolutely committed to that.
And we believe that we'll get to a very meaningful level of Medicare coverage I believe you that probably more of a 2021.
Spansion play just given the timing of out that again, we were very pleased by the the trajectory. The discussions are meeting a soon we look forward in the future to updating accordingly.
Okay. Thanks.
Thank you.
Your next question comes from Gregg Gilbert of Suntrust. Please go ahead [noise].
Thanks.
I'm, sorry, I got on the minute late so I may have missed this but.
Scott I imagine there hasn't been are certainly will be some disruption in the field forces ability to interact with prescribers.
Given the kroner buyer should situation can you offer any context around that what you're seeing real time and.
Actions for the forecast worst, it's just premature to comment a in any specific way.
Yeah, Greg.
Really at this point it is premature.
It's really early as I said, we're going to monitor it we're continually speaking with the management team and the Robson.
Doing everything we can on the back end to prepare if there isn't changes.
I would rather just add to that point, Scott, you're absolutely right and I think as you pointed out it isn't schedule food product I think it has some logistically very differentiated opportunities.
As we spend under revolving we'll have to wait and see it is an impressive set of circumstances is very difficult at this point you know exactly the timing what's going to transpire, but also the this is obviously a very debilitating critical disease where patients.
Thank you good loans, Dan I need to have continued access to their product. So I do think it's so really we are monitoring very closely and well see how the situation you've all these unprecedented servicer.
And Herman is there anything worth noting about the supply chain again I'm sorry, if you covered that proactively early on but is there anything we should know about how many months worth of product you have or are confident having regardless of what happened.
Geographically yep.
Absolutely Greg No no no worries that all we do have on hand more than three months.
Finished good products for old for both of them dosage strength of BELBUCA as well as for simple.
And we also are working very closely with our third party manufacturers that are here in the United States.
And and working hard to ensure that we have all the materials that we need to continue to supply the product well into the second half of the year. So we are very confident of where we aren't then and.
Look forward to continue to work with their manufacturers, but we think we're in good shape in that regard.
Okay, Great and then I'll just ask one longer term question, hoping to have these near term matters.
Passion enough.
As you have off the company I'm curious, what you're thinking about flash looking at.
From a big step standpoint, I know that you're you and team have a philosophical view that you know two products growing two products with the sales team. This is optimal but how are you thinking about evolving the company from I.P.D. standpoint, whether its later this year in the years that follow what's what are your criteria that you're thinking about thanks.
Oh, thanks, so much of the questions burden, you're absolutely right. We've got a very strong organization with a very strong balance sheet and instruct trajectory of growth with the product. We have in hand, we're going to continue to leverage our capital capability to further invest in first and foremost continued flawless execution the organic growth of our product.
We did hire a new head of business development early this year and we certainly look forward to building that next chapter of the company, but we don't have a burning bridge. We have some time, we're gonna be thoughtful injudicious.
As you think about how to probably scale the company, but I think that's more in front of us and.
And as those events unfold, we look forward to comes back and ensuring updates accordingly.
Thank you for your question.
Thank you.
Next question comes from as to home of Janney.
Please go ahead.
Hi, Thanks for taking my question so on a little bit different question. So can you remind us of the data from the recently completed a respiratory depression study.
How is the date of deep bite decisions to you. We just small data sets. So I do you plan on a conducting a little bit have a bigger trial. Thanks.
Oh, yes, they're having you don't think it's a much for the question, yes, certainly so far I think it's very early as the.
I was just recently presented.
At the ATM few weeks ago, and obviously I think with all the a more rapidly happening on pandemic situation.
The early season.
But certainly at the conference is up and there was lot of HRD positive energy.
And a greater appreciation for the data that is presented in as I said during my opening remarks, I think what's really important.
Is it the data from both UK.
I was comparable to placebo into three different doses that were tested for 900 600 9900 micro brand.
Versus the results for the oral Conan which were two different doses are 30, 50 milligram, which showed a dose dependent.
Sorry.
In flow through rate.
Was just the green different from placebo as a 60 milligram dose so again I think the.
Information that we believe and given the appreciated differentiated profile with regard to respiratory depression of bookings over schedule to opioids that this is just another data point.
The thing is important for physicians.
Well, let's move on more about.
Consideration of the optimal treatment of the list benefited of what's in their home and telling him to treat this.
Series debilitating disease.
Thank you.
Thank you. Thank you so much better Nixon.
Your next question comes from Matt Kaplan of London, Doug. Please go ahead.
Hi, Good afternoon, guys I'm, just wanted to focusing on and BELBUCA, a little bit I guess, what what do you think couldn't really drive a true inflection point and BELBUCA utilization.
Which would be different than what we're seeing now in terms of slow steady growth that you're that you're able to achieve.
Again, I gained significant market share in the opiate opioid market given its you know preferable characteristics, obviously, the schedule three and less respiratory depression. When do you think needs to happen to really have tried that inflection.
Hi, Thanks, so much further question greatly appreciate it and you're right I mean, both you've got.
Growth trajectory has been a very appreciative and continues to grow these dumping done tremendous Jonathan execution perspective, given the results that we've just shared for both the fourth quarter 2019.
Well as full year 2019, but also very importantly, what we're seeing in January February of this year, which we always known as Steve mentioned are always.
It's in the lease industry wide you kind of the soft this month of the year, but some.
So results that were in line with expectation continued market share increased and there's really been saying all along that no. This is going to be a continuous growth trajectory for very long time getting physicians to change behavior that had been green for very long period of time.
And given the complexity of the disease and the transition to physician that patients are making from their uses a short acting opioid different levels of potency and different problems in combination products. Moving this we're talking about you go we're going to be a continuous John overtime, and so far that's proven to be true.
Maybe to take your question as to what could be additional accelerating to counter was above and beyond the healthy growth trajectory, but the brand has been on I think it's on the things that we've shared in the path and we continue to work on.
They range from no significant policy initiatives and again, we've been very pleased over the last year plus of the continued growth.
Momentum in energy and wind behind our sales that were seeing in Washington.
And it's only continues that trend will continue over time.
If we see some major policy initiatives with regard to further clarifying the benefit differentiation profile others schedule reverse is scheduled to opioids as we saw in the in the pain interdisciplinary Taskforce report was issued in May of last year, I think that could certainly be.
Example of the type of acceleration that could change very positively the trajectory that that we've been on.
And also as we mentioned books God and myself and the team are extremely committed to opening up a Medicare completely and again, we're we're committed to doing that.
We are pleased by the discourse that we've been having a and we certainly anticipate as I mentioned over time that we will further open a Medicare and I think but that will also potentially serve as another accelerant to the trajectory that had been on given the fact that the market is split.
Other than Medicaid roughly 50 50 between the commercial side of Ledger and Medicare So.
We've been growing very well in Medicare, but certainly if you open up for life with Medicare that would be we believe another potential accelerant to the growth trajectory entitled.
Okay. That's helpful. Thank you and then and then some krulik how that you have a couple of quarters under your belt can you can you give a sense in terms of the competitive landscape and and and how you're you're detailing the product and differentiating between other products out there and multi asset.
Et cetera, and and and once you're seeing in terms of being able to gain gainshare there.
Yeah, Matt. Thank you for the question no we've been very healthy very excited about the receptance of the drug.
Actually it's in line with what we felt we would here when we did due diligence and purchase the product.
Seems to resonate that there's very strong.
Phase two data I'm sorry.
Secondary endpoints with the.
With the product things like spontaneous bowel movements and complete bowel movement.
Resonating with HCP is also the AG a provides guidelines and treatment, although I see and in fact, some public has the highest rating of all the more as within that class and that is resumes also with payers as well and I think more importantly, there's more and more prescribers and more and more experience occurring and one.
They actually utilize it in their patients are seeing good result, so we're seeing that clinically as well which is the real true. So so we're we're early were early stages here.
We it was kind of flat first quarter, we had it but that we expect that with the product being transitioned to us.
And now we have it on a better growth trajectory, we're seeing our share growth or and direct share growth. So we're a we've a lot of work to do but we're confident we'll get there.
And our their pricing dynamics in the space that that you can take advantage of.
I don't know that there's a clear differentiation there. So we're very close to where movantik is priced.
Well its store is priced considerably more than both of us.
At this point in time.
Due to different contracts and and whatnot.
You know were.
We're probably looking to realize some on the five 5% range going forward I think we pumped up that publicly in the past him.
I think that will be consistent going forward as well.
Right.
Thank you ever changing debate.
Yeah that the other change all that is right now I think you may be aware about movantik.
As announced being acquired by another company. So anytime there's disruption will look to try to take advantage as well.
Great great.
Thank you.
You're welcome. Thank you. Thanks.
There are no further questions at this time and this concludes todays teleconference. You may now disconnect. Your lines at this time. Thank you for your participation.
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