Q1 2020 Earnings Call
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I conferences will begin momentarily.
And I will leave you back on music hold one moment.
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Ladies and gentlemen.
Due to the high volume of callers.
We are experiencing a little more hold time.
Thank you for standing by.
And how place you back on music hold until we begin one moment.
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The results corporate update conference call.
This time, all participants on listen only mode.
After the speakers remarks, there'll be a question and answer session.
To ask a question during the session you will need to press star one on your telephone keypad.
If you require further assistance please press star zero.
I would not like to turn the call over to Peter bizarre.
Mr Relations representative for Thomas Pharmaceuticals. Please go ahead.
Thank you Randy good afternoon, everyone before we begin I would like to remind everyone to piss call will continue forward looking statements, which are subject to risks and uncertainties any statements regarding feature events results are expectations are forward looking statements. Please note that these forward looking statements reflect our opinions only.
As of the date. This call you undertake no obligation to revise for update these forward looking statements in light of new information or future.
Except as required by law.
<unk> certain factors that could cause actual results to different materially from those contained in or implied by such forward looking statements are disgusting greater detail in our form 10, Q. file today with the S.C.C., especially under the caption risk factors.
Altoona call over that Neil Mcfarling, Chief Executive Officer.
Thank you Peter.
Good afternoon, everyone in apologies for the delay so busy already it's called day, and we had a heavy volume of callers.
I'm pleased to be here with V.J. Shreedhar, our chief commercial officer, and Chris practice, or Chief Financial Officer first I'd like to acknowledge today is not a routine earnings call as a company industry and country. Our lives have all been impacted by the Kobe 19, pandemic and we've collectively been pursuing new ways to do the.
Overvalued in our everyday lives.
I would also like to take the opportunity to express my sincere thanks to health care workers on the front lines are extremely dedicated employees and our industry partners their diligence over the past weeks as they stayed focused on our shared admission to deliver innovative medicines that reduce the burden of neurologic diseases on patients.
Caregivers and society.
Many of our employees I've been working under challenging circumstances I'm grateful they have stepped up and continue to deliver in these conditions.
Jane Chris we'll discuss the details of R. Q1 performance in a moment before they do I'd like to take a few minutes to highlight were Adonis stands today.
How are operations may continue to evolve.
And how we will remain focused on delivering solutions to patients who rely on us.
As an organization, we've been able to rapidly embrace new ways of working.
I'm very pleased that we were able to effectively support our employees as a transition into working remotely while protecting their wellbeing and the safety of our customers as we continue to make go covering available to patients.
During the first quarter of 2020, we continue to make progress on our strategic priorities and implemented several durable tactics in the latter part of a quarter in response to the pandemic.
Moreover, we made a meaningful impact for patients delivering the highest number of total prescriptions in a quarter since launch.
Previously reported the majority of our total prescriptions support patients who are refilling go coverage.
As a national shelter at home orders were implemented we predictably observed early signs of a decrease in new patient prescriptions.
They will elaborate on that in a moment.
Regarding products supply.
We have adequate inventory of go covered to address patients needs into late 2021 without recently completed manufacturing campaign.
And our specialty pharmacy partner continues to ensure consistent supply delivering go coverage directly to patients homes.
As we progress through 2020, we intend to build on the advances the company has made over the last few quarters. The competence. We have an hour long term growth strategy for go coverage is strengthened by several factors, including the longevity of our intellectual property.
Positive feedback on the unique benefits of go covering long term data showing go coverage sustained efficacy and safety profile over a two year to year period, along with a strong patient persistence, we continue to observe.
Regarding 80, S. 51 O. two.
We continue to make progress in assessing the overall value of the multiple sclerosis walking impairment program.
We communicated previously we are conducting market research further analyzing the inroads pastry data along with the open label extension study and engaging with the F.D.A. to determine a pet for work for this program.
<unk> remain on track to complete our assessment by the end of the second quarter of this year.
The impact of Kobe 19 is presenting unique challenges and we are monitoring the situation closely to understand the ongoing impact to our business.
We intend to adjust how we operate while keeping the welfare of patients employees and the healthcare community at the heart of what we do.
We will continue to be disciplined with operating expenses and dynamically reallocate resources as future operating conditions warrant to support the growth of our business.
I'm pleased with how we've adapted thus far and remain competent and the resiliency of our employees to continue to deliver in the future.
Oh now turned the call over two B.J.D.J.
Thank you kneel and good afternoon, everyone.
I'm pleased to be speaking with you today.
I will begin with an overview of our performance in Q1, and then briefly comment on the impact of the pandemic on our commercial activities.
And how we have responded to this challenge while continuing to drive our business forward.
Starting to performance Q1, total go called repaid prescriptions or T. Rex.
That exclude product from the free trial program, where 7200 and pet our highest ever since launch and consistent with the strong results in Q. for 2019.
Representing a 24% increase over to one last year.
This yeah wrecks performance. Despite the typical Q1 impact would insurance plan reset.
Tend to lead quarter changes due to cope with 19 I liked the positive demand momentum.
Before the recent disruption.
We see this momentum as strong validation of our strategic plans <unk> rooted in our diagnosis the business in early two three last year.
There were 500, you paid prescriptions at all racks, and 6710 recurring paid prescription or or X. in the corridor.
As we stated on our two 420 19 call.
We have transition from you patient starts which was a patient first dispense either for your paid to interacts which is a patient first paid dispense as a metric, which we believe that the most meaningful measure going forward.
Persistence remains strong and study at 45 to 50 per cent at 12 months.
Continuing to highlight the value of recovery is bringing to patients.
Conversion rates from free trial.
Two paid prescriptions remained steady at between 50 and 55% in the quarter.
I'd also like to make you aware that the F.D.A. recently updated the good coby prescribing information.
State that quote good <unk> is not interchangeable with other amantadine immediate or extended release products and cool.
We believe this edition significantly strengthens <unk> clinical differentiation and value.
Since the last two weeks of March we have seen widespread closure of neurology clinics cancellation or rescheduling of patient appointments.
Or the switching from routine to tell the medicine visits.
As a result of shelter at home orders.
This has been combined with restriction of access to sales representatives in some institutions and an abrupt transition to virtual details.
One thing in disruption to the neurology market.
As you mentioned, we have rapidly your dive into this scenario to minimize the impact on prescribers ability to get new patients started on good coverage.
Within three days off the first shelter at home orders, we fully transitioned our sales force to virtual interactions with health care providers.
These include H.C.P. engagements as well as speaker programs delivered by your opinion leaders on our speaker beautiful.
The first few weeks of Q2, we have seen good execution of virtual detailed and participation in virtual speaker programs.
We are pleased that in April we achieved approximately half of the pre pandemic sales force activity level.
To supplement this we have increased our digital campaigns to ensure that we continue to provide brand information to prescribers I'd have continued to provide them with resources through the group called free care coordinators to ensure access issues are not intensified during this difficult period.
Our team in collaboration with our specialty distribution partner rapidly created new ways for H.C. piece to submit prescriptions for appropriate patients such asked by phone and E. prescribing platforms given to logistical challenges affecting prescription forms in the tele medicine environment.
We have enhanced communications from go Kobe onboard the clinics as well as to patients carefully tracking the status of the refill ship and to ensure our current patients do not experience any additional burden in refilling their prescriptions.
It's previously stated the majority of our business comes from the refill prescriptions from current to patients with limited impact to date.
We are encouraged that patients ongoing called <unk> state on <unk>.
Given the overall demographic of patients we serve and the chronic non life threatening nature of Parkinson's disease. It is not surprising that we've seen a market decline in patient visits to clinics and consequently early signs of a decrease in you prescriptions for good coverage.
Despite this we do see we couldn't we do continue to see you prescriptions coming in with physicians utilizing the newly implemented weights of submitting prescriptions for good coverage.
While we are leaning into this I'm certain situation and adopting rapidly we're consciously creating flexible solutions and building tools that can be leveraged in scale for success longer term, you know future, which will no doubt continue to be shaped and changed by just pandemic.
We are proud of our teams for adopting so quickly and creatively and continuing to execute with a focus on serving patients.
I will not turn it over to Chris to provide an overview of our financial performance.
Thanks, B.J. and good afternoon, everyone.
Please refer to our press release issued earlier today for a summary of our financial results for the first quarter 2020.
First quarter 2020 product sales were 14.5 million.
24% increase over the same quarter last year.
Consistent with our historical experience and the comments, we made last quarter the gross to not in the first quarter is significantly higher than the fourth quarter driven by our paramax.
We expect the gross to that percentage to follow a similar pattern at the prior year and decline quarter over a quarter end to end the year in the mid teens.
R. and D. expenses were 2.5 million for the first quarter 2020, compared to 5.2 million in the prior quarter and 10.2 million in the first quarter 2019.
Q1, 2020, R. and D. expenses were focused on the close out of our inroads trial as well as the open label extension study, which is planning to continue through the end of the year.
During the first quarter 2020, S.G.N.A. expenses were 24.6 million compared to 30.3 million in the fourth quarter of 2019, and 27.7 million in the first quarter of prior year.
[noise] R.S.G.N.A. expenses represent our continued investment and go coverage with fluctuations from prior quarters, primarily driven by the timing of administrative costs.
Cash investments as of March 31st 2020, where approximately 115 million.
Overall cash burned for the first quarter was 17 million consistent with the prior quarter, which was approximately 18 million.
We continued to evaluate our plans investments in the business and reallocate resources as appropriate.
As a result of this process. We have adjusted are 2020, S.G.N.A. expense guidance to be 105 to 115 million from our previous range of 110 to 120 million.
This range include stock based compensation of 9 million.
Our guidance for 2020, R. and D. expenses is unchanged, we continue to expect R. and D. expenses for 2020 to be in the range of 10 to 15 million.
Which includes 1 million of stock based compensation.
In summary, we expect total operating expenses for 2020 it'd be in the range of 115 to 130 million compared to the previous range of 122 135 million with 10 million other spend related sock based compensation.
We believe we are making the appropriate investments in the business to position go cover you for long term success.
We take the appropriate cost containment steps to manage through the current uncertainty.
Just concluded that prepared remarks with that I will open the line for questions and I'll ask you to be a little patient as we take the questions from multiple locations.
Operator.
And as a reminder to ask a question.
Please press star one on your telephone keypad.
My first question from Josh Schemer with Apple Corps.
In fact had taken the question just trying to maybe get a little bit better granularity on prescriptions over the course of the quarter and into April it it looks like fairly modest growth.
<unk>, which I guess and enter it could be explained by.
Pandemic, but did you know did did the your start well 10 strong and then tell off and and to what extent have you been able to see some.
Recovery any any additional granularity on that would be much appreciate thanks.
[noise]. Thanks, Josh you came over a little digitally but I think we got the gist of your question, let let me start by saying that we did have continued coral recorder gross going into the Q1 seasonality.
A along with the end of the quarter impact from the slow down as we mentioned in our prepared remarks, I would feel pretty good that it. It further strengthens our you know diagnosis of the business and the strategy moving forward, but to get into some of the details L.S.B.J. to comment a little bit more.
[noise]. So that's exactly right Josh we had a good start to the year, we had a good momentum going in carried forward from Q. for we were tracking to ensure that patients on go clubbing queue for continued to remain on go read Q1, and we're proud of what we achieved there as as I mentioned the majority bar scripts are refill.
And we don't see any impact on that as we transition from March into April in this in this pandemic a season, but where we are seeing some impact is on the new patient scripts coming in.
I think it's early days right now for US to know you know what the trends there are likely to be but what we are excited about is that we are evolving our tactics and we're making a lot of inroads with the new tactics, especially with the activity, which is the leading indicator what is to come so that's where a that's where I I I.
We'll let read radar optimism.
Maybe I can try to be a little bit more specific so in.
The fourth quarter of last year, you grew prescriptions by about 500 and had been steadily increasing quarter of recorder it looks like.
Sequentially now be increases only 50, so maybe it could dress a little bit the kittens of new patients starts that led to such a traumatic.
Cordover quarter declined them, whether there other seasonal factors that might have driven mad that change that killed.
Metric is true.
Yeah, Josh So let me, let me <unk> the metric that were compared where we're slightly different right. So in Q4, we looked at new patients starts which were a combination of free trial patients and those that received paid prescription for the first time in that quarter, we try.
<unk>, we announced starting in this in this earnings call, we're talking about purely new page scripts or in Iraq's where patients. So we're we're comparing two different metrics a little bit so I want to make sure make sure that we're aware that we are continuing to add new patients at about the same ace. So we feel good about that.
Okay.
And our next question.
It's from Mark Goodman with.
Leerink.
Operator, we we're not hearing the question.
Mm.
One moment, we're having difficulty.
Hello, Okay me.
Yes, we can hear you.
Oh good.
So how to pay questions. So can provide more color on the retail program and occurrence environments and is there any impact ronko, we 19 on the timing and <unk> the program.
<unk>.
Yeah. Thank you for the question the the pieces of feedback that we here in the corporate environment from physicians.
Is broadly that they appreciate the ability to get a patients started.
With a a bottle of good coby being directly sent to their home and then being allowed to try the drug while the paperwork for pay or access is worked out for them to to get on the drug as paid patients right. So the free tried program is being particularly celebrate.
That this time as one that allows patients quick access to the drug.
The place where we have now had to make changes is as we create new vehicles for positions just sending their scripts in by phone and by East scripts. We have now made the free trial program available for accessible patients who scripts come in through that vehicle other than that we believe that the fruit job program is a great vehicle.
Cool for allowing trial off the drug among a a month physicians who have not had clinical trial, yet all all the drugs for experience with their patients and for patients to get started on a and experienced the benefits as there as their prescriptions are being evaluated by pairs. So we remain committed to the program.
Maybe I'll add just one quick thing to that you know we we it's the right thing to do for patients were able to once a position makes a commitment to put a patient on product, we're able to get that product to the patient within a few days and and go Coventry you know within a few weeks you'll have an understanding if it's making an impact for you in terms of your.
Here.
<unk> impact so we we continue to utilize it as that'd be j. said to ease the burden of access for patients.
And did you notice any change on the human process.
We we have seen continued a efficiency in the fulfillment process. If your question is particularly with relation to Kobe and we have not seen it change or destruction to our fulfillment process as a result of cold it yet I know, it's still early days, yet, but we have not.
Seen a change as a result of the pandemic, but overall before the pandemic we were continuing to make good progress in terms of tightening the various aspects of our fulfillment process.
Right that's very helpful thing.
And our next question.
From the line of.
<unk> <unk> with H.C. Wayne right.
Hi, This is Blair telling on Iran. A couple of questions for you have you observed.
Impact the long term partner attention need the pandemic so to what extent.
I'm, sorry could you repeat that question.
Back to long triangle.
Yeah have you observe impact to long term Pat retention due to the pandemic and if so to what extent.
I I'm sorry, I. It is your comment in regards to patent it's coming across a little long-term Patton. We we are you taking I or do we hear inconsistency.
Oh patents <unk> no patting to retention.
[noise] no. We we have seen no issues with with with patent the tensions as we may have mentioned.
Previously I and I'm not sure I'm answering your question, but as we mentioned previously we settled are are <unk> sandos earlier this year that that gave us.
Them, they actually say gave them the opportunity to come in in March of 2030 or soon or under certain circumstances.
I'm Gonna stop there and see if you can maybe ask your question again, because we're having a hard time between the four locations that were in seeing if that was <unk> regarding persistency for patients.
Or intellectual probably not.
No that was sufficient. Thank you. Another question are you find you do any internal cost cutting measures.
[noise], Yeah, maybe I can take that one so.
We certainly did revise R.S.G.N.A. guidance down and brought arranged down by 5 million. So we are looking at both internal and external spend productions as we think about the rest of the year, but we have not instituted any furloughs or or layoffs at this point.
And what about with regards to R. and D.
We have not made any revisions were really focused on closing out our inroads trial as well to be open label trial that goes through the end of the year.
Okay Perfect Soccer me. Thank you.
Right I'm on I'm going to jump in here, we're in a lot of different locations or appreciate everyone's patience and I I think that that we want to add to that question in regards to internal and external comments. We we've made the appropriate and I think rightful you know determinations internally to be able to the degree decrease our guidance.
Both internally and externally to keep sufficient capital to deliver on our growth strategy for the business.
So maybe I'll stop there and see if we can move forward to the next question.
And our next question is from David <unk> with Piper Sandler.
Hi, everyone. This is that on for David. Thank you for taking my question sort of building offer a previous question. We were wondering you might need clowning on maybe subsidize the patient out of pocket cost more aggressively or sampling more aggressively yeah. Because then the economic.
Reverberations from the current pandemic.
Thank you.
Oh.
Thanks.
I'll hand that one over two V.J.
You know, we are committed to making <unk> as broadly available to patients as possible and that is something that is very important to us. So appreciate the question from a commercial side, we are able to ensure that our patients have an out of pocket cost with no greater than $20 a month.
We have delivered on that consists leads and consistently for our patients How'd you know from our Medicare side. We are limited in what we can do but we do try to provide as much assistance is possible to patients.
Oh, we do have a free trial program that we think is perfectly designed for serving patients because it keeps them four weeks of trial and our clinical trials have shown you know benefit can be seen within that period of time and it allows plenty of time for the physician to be able to process.
Pear here approvals for the patient and we're now started to supplement that free trial program that you ship directly to the patients home with trials through physical sample bottles in select physician offices in large volume Parkinson street him centres to be able to offer them.
That option to get patients started as well. So we are doing everything possible to get patients started <unk> broadly available.
Okay I think that's helpful.
[noise] [noise] and our next question is from care sorry can.
[noise] TCR touring with Cohen.
It's definitely a tough name I'm paying you did a good job guys a cup couple quick.
Quick questions. Just first just wondering I didn't know it's early days with Tele medicine from these pretties clinicians, but how difficult or the clinicians telling you to to to diagnose or discuss lid via tele medicine. So so what what are you hearing from them and in terms of being able to diagnosing and even get the process going and then on the the.
Persistence persistency rate I'm still in my head, having a hard time, whether it's really good or or not so I was hoping if you could frame for us what we see for other Parkinson's add on therapies, just how how does this compare in you know when you get feedback is it is it tolerability or is it just off the lack of advocacy when you're.
Seeing patients that they roll off and then lastly, and Neil don't Laugh at me at this question then cause I, obviously, you're talking about boring spending, but you know it looks like we have a really good drug here. That's helpful to patients at what point as D.T.C. makes sense for you is that we're just simply capital constraint or does this product not lend itself.
Start getting the word out a little bit brought or we just don't feel like we have enough clinicians train to accept if we were kind of trying to drive patients and and I know right now we're on a pause with the pandemic, but how how do you feel about when we could turn on and really try to light up go <unk>, a little bit more for folks. Thank you.
That things can and we're not laughing at your questions I think they're all good ones.
Well, let me start off a little bit in regards to the H.C.P.T.'s that are out there are continuing to practice and as we mentioned in the prepared remarks. There are a number of folks who are not seeing patients at all there are some who are seen still a very high volume of patients. We've we've heard as high as 85% of the patient.
<unk> movement disorders move up certain movement disorders specialist are still seen those patients.
And and I think it's really early for us to understand what the impact is via tell a health or do I can't tell you that D.J.L. handed over to B.J. here in a minute he and his team have seen a lot of creativity. When it comes to taking care of patience and there is an element through tele medicine, where patients who wouldn't normally pre medicate them sell.
I was for a doctor's visit.
To be at their best if you will when they go to the Doctor's office that are being seen in their in natural environment or in their home environment actually allows a position to see them potentially with disk in Asia and or off and more you know real world setting if.
Well, so I think it it's on both sides. One side is the the fact that patients are not being able to be seen in their Ah Ah doctors' offices, and the others that it may be some benefit so let me handed over to B.J. and he'll talk a little bit about the persistency in our continued persistency.
And the other topics, including D.T.C. yeah. Thanks for the questions can I think the really good quest I would say from a tele medicine perspective, the early signs of what we see or a range of responses. Among physicians right. There are those who are still struggling with trends forming their practices to adjust to tell the medicine.
There are those that are already seeing 80% to 90% of their patients from a tele medicine platform either from home or from also so I think it it spans the gamut, but everybody is adopting rapidly and moving towards the latter part of seeing all their patients way very effectively the other aspect that it's spans the gamut.
There are positions who's Tele medicine appointments quote unquote represent telephone calls where it is very difficult to diagnose the patient and it involves supplementation, where the patient door caregivers, sending them or emailing them videos of what they are experiencing but that's a few and far between all the way to the other end of the range, where there's a successful video.
I will call, whereas somebody can't actually watch so and then opinions there are all over the place in terms of how effective tele medicine can be I know that some of the major a physician organizations are now starting to order offer a movement disorder diagnosis training. So we're looking at those as well to see if we can partner with them in terms of.
Providing that education. So we're excited about that from a tele medicine perspective from up Persistency perspective, you know it's a great question. We've we've we've addressed this before but you know our best example that received from an add on therapy address angeline well tolerated it provide symptomatic relief.
And and they're the persistency is is about it is comparable to where we are at the one year Mark it's about the the 50 per cent range, which is where we are so we're we're pretty we're pretty satisfying to end the feedback that we get from positions Ah and we'd practice cohort after cohort with the new patients starting the drugs through our especially pharmacy.
It's gone, namely consistent of what we see all the way through in in in terms of Ah patients who are there at a six month in the 12 month Mark reasons for why they why 50% of the patients drop off very widely depends a time of a year, where they start it could be the beginning to your plan reset.
Which is by going back to the first question that was asked were excited about the momentum with because with the plan resets moving from <unk>. The fact that the majority the patient stayed.
On the drug it's a good reason so that's that's usually the reason that that we get for why why patients attrition off after a while in terms of your question about D.T.C. and when would we doubled down.
Communicating directly to patients, let me expand that into a more of a when is our marketing starting to evolve more towards communicating with patients and their caregivers and I would say that there's already a and the the different ranges of what we we can do to communicate with patients.
It does not always have to be a television commercial which is expensive and capital intensive as <unk>. As you pointed out we have ways of reaching social media networks, where Parkinson's patients and their caregivers are quite active we have ways of directly communicating with patients in D.T.P. marketing initiatives that are half.
<unk> within a sites of care as well as what's happening digitally in platforms, where they're quite interactive. So there's a lot of effort on to start reaching them. There <unk> with the intention of expanding it out to D.D.C. as we've seen inflection from that perspective. So so I hope we address your question on that.
You did that too.
My next question.
It's from.
G.M.P. Securities his name is Jason Butler.
Hi, Thanks for taking question.
I'm, just wondering obviously with with the low down in Hey should visit we we have heard the docks appear more willing than than normal to engage in education activities, including peer to peer activity.
Wondering if you thought about renting any any of those efforts virtual peer to peer activities or you know any additional efforts to to take in feedback over the you know on the on the marketing strategies you put in place of the last year or so like.
Yeah, <unk>, thanks, chasing I'll I'll ask these eight at comment on some of the activities that have ramped up and and we're really proud of of of how we've been able to pull that together we j.
I think the up I would say that's pretty astute that you've heard that already that is exactly what we see here. Our sales force has done a phenomenal job of executing virtual programs with physicians able to talk directly to their peers and take the recovery message to them we have seen a.
I a successful transition to virtual speaker programs and also <unk>. Good Ram <unk> over week in terms of how many programs are being planned executed and attended by a physician. So we're seeing very good momentum there.
Great helpful. Thank you.
And our next question.
Is from.
Jason Butler with J.M.P. Securities.
Coming back for more Jason.
[noise] [noise] operator that was Jason that spoke previously I'm not sure. If he has a follow up question.
[noise], Okay [noise].
[noise] [noise] I'll go ahead and release them then.
[noise]. Our next question is from.
Again.
David Aslam with Piper Sandler.
[noise] operate our.
David May have a already asked his his questions.
Okay.
So now we have.
Again with H.C. Wayne right.
Maybe we agree on site, yeah, maybe a duplication I understand that Tim Lugo from William Blair, maybe trying to tie man, we can find him that'd be great.
Okay, we'll do.
Yeah.
Oh.
Yeah.
Yeah.
Okay operator.
We may be ready to rock and roll here.
If there are no further questions, let's get people back to their day and I can make some closing remarks.
Tim is trying to answer ask a question.
Oh.
[noise].
[noise] Yeah, Andy if you could try to find 10 logo that would be great.
Otherwise, we'll go to meals closing remarks.
Yeah.
Oh.
I'm fine we do have 10, Louisville with William Blair Open.
Oh.
Thank you for a squeeze in the in there and and they give me out of the kids.
<unk> earlier, but yeah with the opposite side, Yeah 5 million how much about represents yeah. It's bank last expenses occurred due to cold and you know quite a bit.
Obviously, taking a larger portion of q. too well that'd be yeah.
Can we expect Hmm <unk>, Oh, well I guess what are they trained.
Or.
Yeah. Thanks, Thanks to M-.
<unk>.
I'm going to ask Chris to a dive in there on our disciplined investment.
Approach.
Appreciate your patience and getting a question and Tim. Thanks. It really is a combination of the two so that there's some certainly some natural cost savings that's occurring right now as you know the team isn't traveling as you know we've moved speaker programs from lives to virtual there's natural savings that are occurring there were also looking at all of our.
<unk> throughout the remainder or the year and just making sure. We're putting every dollar where we should so it's really a combination of the two as we continue to examine and and figure out the length of time that this pandemic impacts. The business. Then obviously will continue to adjust further if we need to but where we are right. Now. We think this is the appropriate place for us.
I still fully investing go covering it's long term success.
Okay fair enough and yeah I played from some other companies that they're expecting I've returned to normal sometime this summer is that the expectation for the adamantine as well and you know what doesn't return to normal also for Jack.
Maybe spend a lot more new star Yeah, I know, obviously q. windows impacted isn't that completely understandable.
Yeah.
<unk>.
I I would I would take us back to the mix a business that we have right. So I think we have the majority of our business coming from a turning scripts. We feel good there are we all reaching out to our patience and we're keeping them on drug me feel very good about that in the new patients portion of our business. We have seen a little depth and I think it's early days yet we're watching.
Day after day week after week in terms of bringing that back on board be feel very good about the tactics. We've put in place in the speed with which are team has adopted to them and is executing on them.
And these are leading indicators of of demand to calm yeah. I think it's a little early for us to comment on.
When when we may see impacts to our overall business in in the in the in the coming quarters due to your queue for what we are double <unk> doubling down on on our very confident about is the fact that the the three strategic pillars be focused on which is creating the urgency to talk about this <unk> off time, and and and differentiating go <unk>.
The F.D., a just added a feather as well as ensuring our full twin process is is extremely robust and customer friendly is what we're confident in and we're doubling down on always feel good about it.
Okay. Thank you for the question.
Operator.
And as a reminder, if you would like to ask a question. Please press star one on your telephone keypad.
Yeah.
Yeah.
There are no no further questions.
Okay. Thank you Andy and and appreciate a your patience is we've dealt with some of the technical different difficulties you know over the last few months of uncertainty.
We're showing a great resilience as an organization I I am eternally grateful to our employees for adapting to new ways of working.
For them continuing to stay safe and continue to make an impact for patients looking ahead.
We remain carpet in the opportunity for go covering and the progress we've made to strategically positioned our business for long term growth will look forward to contain the dialogue and providing updates on upcoming quarterly results calls me sick. Thank you.
Ladies and gentlemen at this time, it's concludes today's conference call.
Thank you for <unk> for your participation.
May now disconnect.
[laughter].
[laughter].