Q1 2020 Earnings Call
[music].
Excuse me, ladies and gentlemen, discuss the operator today's conference is scheduled to begin momentarily until that time. Your line is what I can be placed on music cold. Thank you for patients.
[music].
Excuse me, ladies and gentlemen, this is the operator today's conference is scheduled to begin momentarily.
Given time for all the participants for joining today's conference in the call will begin thank you for your patience.
[music].
Good morning, ladies and gentlemen, thank you for joining us for the Therapeutics M.D. first quarter 2020 financial results Conference call.
Following prepared remarks from the company, we will open the call for questions.
I would like to turn the conference over to our therapeutic Indeed, Vice President of Investor Relations, Nicole Elsner Nicole.
Good morning, everyone. Thank you for joining today's call to discuss our first quarter financial result in business update. This morning therapeutic frenzy issued a press release announcing our first quarter financial results. The press release is available in the company's website therapeutic FNB dotcom and investors in media.
Section.
On today's call from therapeutic Sandy, our Chief Executive Officer, Robert Sydney, Theo Chief Commercial Officer Dawn, Okay, and we feel crafting our chief strategy and performance officer due in part right, our Chief Financial Officer is not able to attend this call due to travel limitations.
I would like to remind everyone that certain statements made during this conference call maybe forward looking statements such forward looking statements are based upon current expectation and there can be no assurance that the results contemplated in the treatment will be realized actual results may differ materially from such statements.
Due to a number of factors and risks so well identified in our press release and or annual quarterly and other reports filed with the FCC. These forward looking statements or before information available to therapeutics and D. today. The company assumes no obligation to update treatment and circumstances change.
An audio recording a webcast replay for today's conference call also be available online any investors immediate section of the company's website.
For the benefit of those who maybe listening to the replay or the archive webcast. This call was held and recorded on May 620, 20 with that I'll turn the call over to Therapeutics M.D. CEO Rob Finizio.
Lexical.
Good morning, and thank you for joining todays call.
On this morning's call I will start with a strategic overview.
Did you Q1 financial results in performance metrics.
Our strategic plan to successfully navigate called the Nike in our approach to return to our pre topic I'd seen revenue trajectory.
What are you putting us on a path to reach even a breakeven in 2021.
Turning to slide three our approach the strategic it's highly focused.
And it's achievable now that we.
Now do we have patients provider and net revenue data on all three of our products. We have developed a path to reduce overall expenses and reallocating our resources.
That.
We are positioned to capitalize on the emerging market trends that have been accelerated by cold in 19 to drive growth with our retail and online distribution channels.
Last in the short term, we have adjusted our strategy to be exclusively focused on innovation.
And in fact sheet.
[laughter] turning to slide four and a bill will remain our primary focus because of the positive market reception and net revenue per unit results that are full year ahead of our internal expectations.
And that she was our second priority.
As it is gaining traction amongst the prescribing population and is now the fastest growing product and the VVA category.
To fund these initiatives, we're going to pause the majority of why did you about related promotional activities due to call. It 90.
Hi, pausing promotion and organizational supported by June, but we've been able to reduce our cost considerably and develop a plan that continues to drive our revenue trajectory.
I will cover our expected operating cost reductions for the rest of 2020 later in this presentation.
We have opened discussions with TPG six free partners around coldest impact to our revenue.
For a potential adjustment to our minimum revenue covenants.
I will cover this in more detail later in the presentation and finally, we pride ourselves on being a nimble organization that recognizes emerging trends and adapt accordingly, cobot Nike has accelerated telehealth online and retail pharmacies utilizing home delivery options.
These are areas, we've been developing relationships with the industry's leaders and emerging technology companies and therefore, we believe we are well positioned to capitalize on these accelerated trends.
In addition.
Given the job losses due to covert 19, we believe the Medicaid population will significantly expand.
As you'll see today, we have gained significant Medicaid coverage for our portfolio this year.
Well the duration of the crisis is I know I believe that therapeutic Sunday is well positioned to navigate the challenge.
Pick up where we left off in late February and emerge from this unprecedented called global health crisis to achieve our business goals of growing long term shareholder value.
Now, let's go to the metrics for the first quarter.
On slide seven.
Total net revenue for the quarter ended at 12.3 million.
Versus wall Street consensus of 11.4 million.
This is now the four consecutive quarter that we have beaten wall Street consensus.
Very proud of the team's performance this quarter as we previously guided quarterly that Robin quarterly net revenue for the first quarter is down from fourth quarter.
As a reminder, in the fourth quarter net revenue and close a build for the initial distribution advantage here as we prepared for the full scale launch.
The first quarter 2020.
We saw you that's all the patients demand doubled from the fourth quarter and this outpaced restocking into the channel for the first quarter in fact patient demand increased across all products compared to fourth quarter and outperformed on revenue expectations, even with the Industrys annual occurring insurance resets.
And the quarter heavily impacted by Cobot 19 pandemic in March for more details about the first quarter results in performance. Please refer to our press release and our full Q1 2020 10-Q, I'd now like to turn the call over to Mitch crashes.
Our Chief strategy Officer to review some key metrics.
Thank you Rob.
Like now to review key metrics for each of our brands.
Start was down a bear on slide eight.
In this quarter, we delivered net revenue of 1315 hours per unit, which was consistent with the fourth quarter.
And we had an adjudication rate.
Over possibly 100%.
Additionally, 77% of Annabel <unk> patients for pain Zillow copay.
And we had a total of 2361 prescriptions to patients in the first quarter from 1140 providers.
Please move to slide nine.
Planned launch of out of that occurred in a quarter that was interrupted by.
[noise] coping 19.
[noise] as you can see and the slides we achieved.
Total unit growth during or soft launch in January and February.
However in March we experienced restricted provider access and a lack of consumer mindshare happiness to pause the full commercial launch.
Moving to the right portion of the chart you can see how this impacted much faster than avaira to patients.
We believe the for all reception on a very received in January and February can be reserved went out of those consumer campaign and full provider engagement occur in early Q3.
Let's move on the slide 10.
Despite coded 19 is actually continue to grow during the first quarter as it has a more established base of business. Specifically is that she achieved net revenue was $6.4 million with 134000 total prescriptions filled two patients in the corner.
Calculated net revenue per unit of approximately 48 hours was slightly down from the fourth quarter due to insurance resets that impact the industry annually in the first quarter.
The overall geolocation rate for that she was 44% in.
In addition, we had 17000 providers raising into third quarter, a significant percentage of the targeted prescribing population.
As we have done since the beginning of launch we continue to focus on consumer refills for those patients who started on it that she over one year ago. They have averaged over six still since starting therapy.
In 2019 or average sales per patient was 4.2 films.
This focus on refills ensures our acquisition hours worked harder as it increases the lifetime value invitation.
Finally.
Let's move to buy Juve on slide 11.
In the first quarter, we achieved net revenue of approximately $1.1 million with total prescriptions to patients of approximately 26000 units.
This represents solid growth over the fourth quarter.
The first quarter calculated net revenue per unit was $43 a decline from the fourth quarter again caused by the impact of industry wide insurance Felicia.
The overall adjudication way for my view, though was approximately 51% with 5000 providers, writing a prescription during the quarter.
I would now like to turn the call back over to Rob. Thank you much moving to pair access on slide 13, and the first quarter 2020, and their continued its faster uptake passing in fact sheet and by did you ever progress in January 2020 with payer coverage.
Indication.
Net revenue per unit.
In addition, we are added to the department of Defense formulary and are being sold to 92 military bases and will be available for title 10 entities in early may.
Our expectation is that universities will begin to adopt and prescribed in the fall of 2020.
Finally, we continue to make progress in Medicaid, which represents 15% of the market opportunity and the contraceptive space I'm happy to say the Inavir and now has Medicaid coverage and 37 states.
We believe and if there is well positioned for growth with 76% commercial coverage.
And is zero copay.
Zero dollar co pay for approximately 77% of patients even without the Ninetys category.
We continue to have positive discussions with the FDA about the 19th category.
Moving onto the met a pause portfolio on slide 14, let's start with them vaccine.
And actually access remains to 72% for the commercial book of business, we did not getting any major Medicare part D. Payer ads in Q1, but do you still expect again two of the three major providers with preferred status. In addition, we understand that cold in 19 is further delaying part D decisions, but we can.
Can you to explore options with these payers to see if we can still come to terms.
Since January.
And that she has added 21 stage unrestricted and Medicaid access with the average co pay.
$5 or less.
Well they got somebody you ever since January 1st we advance Medicaid access with 21 States now unrestricted with also a co pay a $5 or less by June of a commercial access remains at 54% unrestricted.
And we're in discussions with a few remaining top hires.
Let's turn to slide 16.
Given the impact to access the providers offices were seeing and the uncertainty around the like the coded we've adjusted our expense structure.
Our approach was to look across the organization to decrease expenses related to buy Juba and an area is not creating near term revenue.
This preserves funding for into there and is actually post Kobe 19, and lowers our operating expenses for the year keeping us on the path to EBITDA breakeven for 2021.
On slide 17.
We continue.
We believe strongly into long term trajectory of our portfolio, however, like others.
We don't have complete visibility on the impact in a short term. We have however made the filing assumptions first access to providers offices will likely continue to be limited during may and we expect to regain access to doctors offices in lock step as the state's reopened and return to a mall more normal access.
Level in the third quarter.
Second we currently plan to reactivate commercial plans early in the third quarter it including our launch of our consumer campaign called on the pilots radically and of era.
Accelerating consumer investment from vaccine and Reengagement of the Salesforce to alive model as axis opens up around the country.
In the near term.
We expect the revenue impact in Q2 due to cope with 19 and regaining our growth trajectory in early two three inline with being able to have full reengagement of our commercial plan.
Moving to slide 18.
Given the expected impact in that revenue, we have worked as mentioned to reduce our expenses for the remainder of the year.
The first quarter operating expense a 57.5 million includes a onetime expense related to preparing for the into her a launch.
We expect second quarter expenses to be 10 to 12 million lower than the first quarter through deferment of marketing spend and other measures. We took quickly to reduce costs with the additional cost cuts were making we expect operating expenses and both the third.
And the fourth quarter to be approximately $40 million or less per quarter.
We believe these actions will allow us to reduce our cash burn while still positioning us to become EBITDA breakeven in 2021.
On slide 19, due to the uncertainty created by covert 19 and its impact on our business. He actually did he has been in discussions with six three partners regarding the revenue covenants in our loan documents.
We are working with six free to defer the scheduled start of our quarterly revenue covenants for two to three quarters to reflect the impact of covert 19.
60, as expressed preliminary support and understands the importance of flexibility for our company given the pandemic.
We appreciate it for their continued support of our company.
I'd now like to turn the call over to dawn to discuss our plans for the back half a year.
Uh huh.
Talking about.
Now seen our first strong Harper our strong first quarter results and the strategic and cost changes due to cold take 19, now I would like to discuss the path forward for each of our brand and why we believe we can pick up but the growth trajectory. We shot in February the for profit 19.
Let's start with Hana there on slide 21.
We believe that once our plans are fully deployed we will see faster uptake.
Walk through the why starting with the column on the left and if there isn't a conscious caption market, which has the largest U.S. women's health category at $5 billion.
Within that $5 billion, our 500000, prescribers and 18 million women.
Date, it simply isn't market or small cherish got big game.
Moving to the Middle column, although we have had limited time with Hana there on the market proof of success was seen in Q1, given the strong reception, we had with the limited focus in January and February.
In the first quarter, we had 1140 prescribers, writing and if they're a leading to 2361 total prescriptions.
This result was with the coal that 19 impact and our sales representatives, calling on only 10 providers and limited consumer spend.
And that in the third quarter, we will see exponential growth in the number of providers. Each representative will focus on with an affair and expect to see the impact from that investment sales Representatives will call on 125 to 150 providers with Hana bear as the primary focus.
In addition, we plan to launch our consumer campaign called Unapologetically, and a fair, which isn't a tactical campaign that you quickly gained traction.
Moving to the third column over to the right. In addition to growth from our Salesforce efforts and our consumer media campaign, and if there I will go through multiple channels and partners.
First is our widespread availability to large chains, such as walgreen independent community pharmacies to our bio at night program and online pharmacies like till pack second we are ensuring product access for patients and emerging online platforms, such as the pill club and simple health that both prescribed and.
The liver birth control directly to patients Tele medicine, including these platforms is growing fast and covert 19 world and contraception isn't important category within telemedicine, we are well positioned to deliver patient access to this channel as it is a trend we shot and started working on in 2019.
Sorry, public health, which includes University threeforty be which includes title 10, Medicaid with 37 States approved and last the military and if there is available to order for women at 92 military bases.
For all of these reasons a large market early proof of success in Q1, and our plan pick up off our launch in third quarter.
Our ability to drive access and grow to multiple channels and partners I believe we will be able to regained the trajectory we saw pre covert 19th.
Turning to slide 22.
Another reason I believe we will accelerate growth is because I understand why and Ivera had a strong trajectory with limited focus it it because it is a product that is well positioned with the needs of our provider and patient base now and coach cause that 19, specifically NFL offers one years worth of protection.
It's a good substitute for elective procedures for women that are unable to get a procedure. During this time and want long lasting option or women, who do not want a procedure.
And if there are also covers you for a year, even if your insurance situation changes the majority team here out of pocket and it can be delivered to your door.
Moving to slide 23.
We recently announced the first Orange book listed patent for Anna There. The only 66 patent claims elements of the end of air label, which a generic would need to copy the issuance of this patent strengthens the intellectual property protection Fran of hair, providing Orange book listed patent protection through 2039.
As you can see on the side.
We have a multi layer patent approach that we believe will translate to robust protection to 2039.
Let's move onto in vaccine on slide 24.
As you can see on the left hand side of the chart and vaccine is the fastest growing product on the market share gains are at the expense of Premarin and we ended March with 10.8% market share of total prescriptions.
Our plan forward porn vaccine is to continue to focus on our high writers and expansion of the base a productive writers in Q1. Despite called at 19, we had no drop off in the number up writers and 10% of our new prescription came from new writers to the brand.
Support the goal the breadth and depth of writing we will continue to focus on activating the consumer to after pride of provider about in vaccine.
Our efforts have already yielded a proactive approach among women suffering from D.A. within tend to ask a healthcare professional about in vaccine now at 66%.
'cause human meaty activities will expand to support continued share gains in the back half the year.
Finally, let's turn to buy Jews on slide 25.
To that had steady quarter over quarter growth with our limited focus on Viju that we will focus on maintaining the writer banks to the remainder of 2020 supported by non personal promotion.
In addition, we will continue to support our bio isn't a partner program at compounding pharmacies report they would recommend fights you that one third of their E plus p. patients. We will continue to prepare for the potential 0.5 100 launch with internal resources in early for launch in early 2020.
One if approved I would now like to turn the call back over to Rob. Thanks, Don.
Before we answer I'd like to welcome our three newest board members Gil Naughton, Paul Bizzaro and Karen like.
There are diverse group of health care veterans that already have delivered significant value to the organization I also want to thank the team for leading to a very difficult and challenging quarter due to this pandemic and adapting quickly and creating the great results. We have discussed throughout this presentation.
To close we've had positive revenue momentum and have developed a strategic cost containment plan that will lead us to our ultimate goal profitability. We believed that our cost containment strategy, coupled with our TPG negotiations will create the optionality needed to best create long term shareholder value and reflective capital structure.
We believe the plans we haven't place will continue the trend of consist consistent growth that we've been delivering over the past four quarters, leading to our goal of EBITDA breakeven in 2021.
Now, let's open the call for questions.
Thank you at this time, if he would like to asking question you will need to press star one on your telephone to withdraw your question press the pound key please stand by only compiled the to enable posture.
And your first question from line of Louise Chen with Cantor Fitzgerald.
Hi, Thank you Mr. Chen for came on some of these Chen I've two questions. The first is could you give any more color regarding your revenue covenants I know you see big previously said that those were considered in the original revenue guidance I'm thinking if you're deferring it by two to three quarters does that imply the original 90 to 100.
10 million dollar revenue range that could also be reached in two to three quarters later than anticipated and then my second question is if you could give more color around your opex expectations for this year I know you mentioned the $10 million of marketing spend is delayed in the second quarter, but it looks like you expect the.
Full on trying to bear and support for index see in early third quarter, and I guess I'm wondering how that translates to total spend a $40 million or less is R&D expected to decrease as well or you know where those reductions coming from <unk>.
Sure. So I'll take the first one with a with TPG and then there's a number of facets to your second question. We'll we'll just have especially Ken So look with TPG as we discussed during the call. We're in active discussions to the further scheduled start of the quarterly revenue covance into 21.
So you know given we have an open dialogue around that we don't want to get into any more detail other than that and Oh, you know I hope you and I understand it's a good ongoing discussion so to the jump into any details is just doesn't make sense right now as far as the op ex missed you want to check.
Sure.
I see the stuff.
We currently plan to reduce our overall operating structure by approximately 20%.
She is a quick referenced the how we got there if you look at the first quarter total operating expenses.
[music] than there was about 5 billion of nonrecurring spend.
And then we look is cutting about 20% of cost through the organization to get that down or roughly that 40 million dollar number we plan on doing this by staying very focused on investee Anna barriers to lead products.
Glean some funds from by Juba, So we have ample dollars to meet our revenue.
Trajectory goals.
Great. Thanks.
I think it.
Your next question, it's in line of Stacy too with Cowen and company.
Good morning, Thanks for taking my question congratulations on the especially person. Thank you Oh I'm just just some questions on that coal that 19 and potential impact.
Based on telemedicine for your existing patients.
Okay, and kindred Calibrates Thomas.
Right.
Any commentary on exactly what are the benefit anything that you definitely expand so far.
Yeah sure I'll take some of that and dawn might want to touch base with that so so there's there's two ways. You can look at this right. We have been working as we talked about with the online partners in the prescribing space as well as the pharmacy space for a number of quarters now it's just half.
Happened to be where that's where a lot of growth is coming from since I'm actually glad you asked a question. So you know so our biz Dev team, that's a really pulled up and gotten you know pill club plush care or Amazon, which you know part Amazon a in a number of others would switch Duncan mentioned there they're all growing a then the growing really really quickly.
Into various it's done very well with them and we think this is just to start of a shift a energy action in the in the field with the physicians has become limited and places like New York in New Jersey are really really tight other areas like Arizona, South, Florida, and the stay starting to open.
Back up reps are actually having face to face interactions against doing launches, but it's not to what it was before a in those situations. You know we've been staffed up in a ready we're remote detailing a and lunches are being done.
We're a rep can host a lunch remotely.
And still get the mine share of the Doctor now, it's not as effective as face to face a but we have been again preparing for that for a long time and never expected covert ahead, but we did have the infrastructure in place to keep things going and Ah, we do from an internal expectation standpoint expect Q2.
Through the rest of May to stay pretty tight big June will start to be a warm up month, a and then re initiating our trajectory a with face to face as well as our unapologetically in a Vera and Invecture marketing campaigns in early July early Q3 does that help.
That does and then I guess, one last question focusing on there.
Yes trend.
In terms of patient starts switching from there.
So what percentage like they are naive who's coming from either rang coming from the tell I'm.
Trying to get up their understanding of labor, which is it coming from that where are you guys are not perfect traffic.
Sure Hi, Stacy its Don So and you know essentially and all we are early on with Hana Vera as you know the pill is the largest segment and so we certainly are seeing that trend, where we're getting some people from hills less that are naive we always knew that it.
Is going to be people switching from other products likely than their first form by early on and we're also seeing actually that I'm sure and health care professionals on that there are quite a few that are writing new virena that are adopting this you know more quickly given you know their comfort with the ring form so.
We're taking advantage of all those opportunities.
Great. Thanks much.
Your next question to mine up Annabel Samimy what stifle.
Hi, Thanks for taking my question so at about <unk>.
How are you I am I'm trying to understand I guess, how some of these cuts.
Hamper your ability to sell I know, you're ledge leveraging alternate distribution channels true held pack crush parents tetra could this potentially be a new model going forward on is the cost structure different for accessing these channels and.
Can you just help us understand how you might leverage that kind of have some pollock.
Yeah, sure I think it'd be a hybrid between dawn and I'd answer to under one of the for sure I mean, maybe first I will and go to the Salesforce side. So first thing I wanted him to mention Annabel if that these other channels you know exist a with the salesforce.
Right. So it's just another way for patients to access.
Their medication so our only goal right now is to get to profitability and Anna there and actually our best way to get that so with that with the salesforce will be going back to as your mind or we were talking about viju, the having its own salesforce back in the fourth quarter. So we're gonna go back to one.
Salesforce focus on an American vaccine, which allows a average size of about 130, which gets us just some of that cost effectiveness, we've been talking about.
Well said in so so annabel look at it as by pausing Viju the that creates resources to create this operating cost reduction and still fully funds and vecsey. It in an era. So not just the salesforce, but a lot of the other cost to support that goes with.
It around by June of Oh, There's also been paused or so so that that by itself is giving us the resources. We need now the tradeoff is a until we turn that back on the out years like your two in year, three where baidu, but would really pick up we're not going to have that until we turn it back on.
But look it'll still be there on a year, we've definitely driving towards profitability or even a breakeven in 2021 and this plan allows us to lower all of those up operating expenses costs and doesn't really affect revenue trajectory a in the first year or so so we see.
Although you know what's the best of both worlds it'll get us to profitability as fast as possible.
Okay, Great and then can you talk about any coverage changes you've had I'm sorry, I missed the comments earlier I don't know he made any progress with Medicare has there been any changes to coverage there and if everything is status quo or improving versus status quo and decline.
Yeah. So.
Everything is improving so we've done a lot so starting with end of era, a were up to 76% coverage and 77% of those patients have a zero co pack. So it's just it's just fit it's just great right.
The gross 15% of the market, which is given the size of the birth control market, 15% of that market is Medicaid.
And within a barrel, we're going straight out that we think that Medicaid market due to colder than all the job layoffs is gonna grow.
So we have picked up since we spoke last 37 states.
In the Medicaid environment. So its its full force ahead or within a fair there when you get to invest seat or we did not add any part D pairs for industry in the party category, yet Ur cobot as you know really slow that process or focus there down.
We still feel good about two of the three.
Payors are being very positive for us when when they do start adding again.
And are very very clearly waiting for that to happen and though but we are we are behind on the part D or four in vaccine.
As far as the Medicaid access formed actually in by Juba. We've added 21 states at a co pay a $5 or less we've also added a number of smaller players no no big names that you probably know Oh, so so look nothing's going backwards everything's moving forward and we feel good about our progress we really do.
Okay, great. Thanks, I'll get back in Q.
No problem. Thank you.
Once again, if you would like to African audio question. Please press star followed by the number one.
Your next question, it's one point of Douglas deal with H.C. Wainwright.
Hi, good morning, Thanks for taking the questions just.
You know maybe Rob could you maybe talk a little bit about from the dynamics that you're seeing and the ring market. Just obviously given covered 19.
Which I would think would enhance some of the characteristics of that type of product, but also just given the launch of the generics for new version at the end of last year, and how that is potentially affecting the landscape.
Yeah, Doug. Thanks, So the RIN market will specifically the end of Vera around covered and then around the overall market, including the generics of Newberry.
The synergies line up pretty well.
If you lose your job and lose your insurance and you don't want to pay for the pill. Every month you can get into Vera most patients got it for nothing for free or with our insurance and now the Medicaid market as well [laughter] $5 last and then last throughout a year for doctors that can't do elective surgeries and they want to put patients on something.
With that as long acting.
It fits very well so the trends are certainly, indiana various favor with Cowen.
The generic ring a neighboring.
We really don't she has an impact everywhere. We go people really look at this is a long acting option that last for 13 cycles as opposed to lashing for three weeks.
And that seems to be where physicians and women now that we have a lot more data it really resonates with them. It's the control they have without having to add a surgical procedure that other rings, just don't offer because their disposable and short cycle. So Ah. We we've got a number of nuvaring users that have come in.
And as well as I, you D and which are surprised the number of pill users that are switching over we didn't expect in the next quarter or so to have a much stronger amount of data for the street on the user types the user experience and what is drawing them to try and Vera and then as we go for.
Further out the continuation rate.
And then maybe Rob just.
As a follow up you know just given sort of some of those things that you spoke about and you know how you know this product is really works for calendar <unk> telemedicine model.
Why necessarily sort of pause some of the consumer outreach for consumer marketing plans why not I'm sort of press ahead on that front and maybe pull back in some other areas of business.
Yes, two things so myself and Donald will answer that one so great great point. So what we found early on from our spend from the company's spend standpoint getting mindshare during the pandemic when the death rate was going up wasn't in our best interest at the time right because it's very expensive, but our partners you know.
There's a number of them pill care.
Bill Club.
Plush care Oh pack they are definitely spending money there definitely advertising in the user base is going way off and there's others as well I want to leave anybody left out here that our partners and what they spend to promote either our product for others is for their model and their company and it doesn't hit our bottom line.
So it's a real synergy for us to onto one or anything I think the only thing to add is that you know when when all of this first started and we mentioned here we didn't have complete visibility into the length of time. It was gonna laugh and we wanted to make sure that the money we put out there. The spend was put out there would be consistent and so as Rob said given that we knew the mindshare with.
Elsewhere, given that we knew very little about at a couple of months ago. We made the decision to pause and be able to continue a volume to some of these other partners. It was a better use of spend and when we do put it out there and it will be what the other commercial levers, including the Salesforce being able to go back to life model and that will just work harder for us.
[music].
Okay, great. Thank you so much.
Thanks, Doug.
Your next question some of my aunt about who denier with noble capital.
Good morning team. Thank you very much for taking my question I. Congrats on the progress I have two questions first one if you could provide some color on the technique hard it has been called trajectory as we've seen that larger impact with the call that restrictions and my second question is on a 10 I had type.
How much active users deal has he did he said we'll call it 10, but what I'd expectations going forward.
Yeah, Oh. This is Rob Thank you and I'm glad you asked a question. So as you can see or by the clarity we put out on the monthly data of our volumes. We you know we be guidance with coated but had covered not happened. If you look at the reception for Anna there.
In January and February was straight up I want to remind everybody you only had each sales rep, calling on up to 10 doctors and their territories in March where we're going to launch our full campaign of advertisement for the first time for both in fact sheet and in an era and have each rep call on all hundred 35 to Hunter.
50, doctors and their territory, we if we think that the reception would've gone straight up we would've had even a stronger quarter. We had should we can't spend the money twice. So when we saw the coven fear, taking mindshare and the offices closing it exactly right. After [laughter] right. After the national sales training, which was.
The last week the February so by the second week of March a the offices most offices were closed and only doing remote visits and dropping samples. So we had to put the pause on in a Vera so when this opens up which our expectation is early July we can turn all of these back on and pick up that drove growth trajectory.
With all these additional resources that we left off in February work again, each rep was only calling on 10 dockers and the marketing channels really hadn't started up and maybe I'll take that as a Keller health that portion of that question until couple of things. There first of all of them are talking Tele medicine, Rob mentioned the number of partners that were working.
But also what you what you need to understand is all doctors right now are using tele health and so the fact that Anna there I can be prescribe virtually can be delivered here door. So it's driving a lot of our volume now why can't tell you. The exact amount right now that's going through these new emerging technology companies I can tell you that we model.
Sure. It we got a week and that the volume has been increasing and so it's definitely gaining traction you look at every industry report out there and Tele medicine, which was already moving its certainly a wave that we'll continue to grow.
Yeah.
Hi, Thank you very much.
Thank you.
Next question from a line of Dana Flanders with Guggenheim.
And then a pie.
Hey, Rob. Thank you very much further questions I have a couple my first one and apologies if I missed this but just on mbeki can you elaborate a little bit on just what the what the reason is the delay on on part D is that in vaccines specific or are you seeing other drugs get impacted on on on timing for display.
And as well my second question is on did you just you know kind of whats the deciding factor for when you decide to turn back the focus on on that product is that when you reach you know kind of overall profitability is that when you see more progress and bio night and just how do you balance what's good you know for profitability nearer term.
Versus what's good for the products long term outlook and then my third one maybe you can just update us on how you're thinking about the durability of in vaccines and animal there I know you just had an orange book patent what should for enter Vera and I was a little surprised to see a generic parlor on him and vaccine. So maybe you can just discuss kind of how you're thinking about the over.
All patent estate and durability of both those franchises. Thank you.
You got a day and it was sure well so for the part D.
I would tell you the with the folks were confident in two or three major ones that we feel good about.
I would tell you is covered related from an extra Jim perspective for the class I haven't seen in the answer might have been non estrogen adds but I don't see any estrogen changes at all.
So it's not specific to invest C or T X Sandy and it's not it is in my belief or having to deal with Covidien focus. It's just hard to get these plans to focus on something given all of the extreme circumstances that are out there right now, but that'll that'll that'll loosen up.
As I think as the offices open up and we feel good are confident that we will get two of the three major part D. Players. We have no reason not to think that as far as by Juba goes in the pause. So it sounds like it makes sense to your why we did it and what the value that that's creating.
When we turn it back on Theres a couple of factors. So the first factor is the second dose which has a PDUFA date in November November 16th I believe that's the 0.5 100, but also the growth trajectory and you know how fast we go and how long it takes us to get there, but we're confident.
With that in a Vera can pick up right, where it left off and at putting these additional resources in essence reps, calling on their entire territory as well as the marketing campaigns that go with this we say could drive significant growth. If the growth is overwhelming and we have the resources to.
To EPS, we certainly would launch by Juba sooner.
If that go slower it could take a little bit longer but EBITDA breakeven is the only goal in 2021.
We've got a clear path for these two products you Gotta Sir.
As far as durability and that's the IP a ran that protects our asset for Anna Vera and in vaccines and a Vera.
Had its first Orange book listed patent that gave us a exclusive exclusivity under the Orange book protection until 2039, or the one thing I want to stay on that Dana it's not just about that single patent that protects the label Oh, we have another six Orange book was slow patents filed for an additional utility pen.
Those are all already are working here with patent office on so so there's a lot of protection. So I think that's a very healthy situation and we like that or for the durability of an affair Sars and actually goes look I think I can't speak on any litigating matter at all.
Yeah, and there is a paragraph four are filed on its actually well look it's just a great products I mean, if I can just leave it at that that's that's that's where that comes so quickly I think people outside of just the T X a de family and investors see the value of that and I think that is a clear demonstration of the value of industry.
Someone would spend the money to try to overturn the patents.
And create a generic.
Okay. Thank you.
Yeah. Thank you.
Thank you and at this time there no further questions I'll turn the call back over to Rob.
I want to thank everybody for the team for great work, there very difficult quarter, and Ah I hope everyone out there stay safe during this challenging time, and we will get through it and we're hoping things warm up here in the summer. Thank you.
Thank you. This does conclude today's meeting you may now disconnect.