Q2 2020 Evofem Biosciences Inc Earnings Call
[music], ladies and gentlemen, thank you for standing by and welcome to the I Hope I answered the second quarter 2020 financial results Conference call.
All participants are in listen only mode. After the speakers presentation. There will be a question and answer session to ask a question. During this session you will need a press star one on your telephone. Please be advised to today's conference is being recorded if you kind of any further systems. Please press star then.
I would now like turn the conference over to your Speaker today Ms. Amy Raskopf.
Uh huh.
Eva.
Vital science head of Investor Relations Ma'am. Please go ahead.
Thank you and good morning, everyone. Welcome to be found by appliances Q2 Conference calls if you haven't done till already I encourage you to exit the Q2 2020 presentation and the press release, we issued earlier today, both of which are a little time dotcom under the industry that before we begin I would like to remind you that remarked on this call.
Will contain forward looking statements, which you made only as of today August four twentytwenty.
For a more detailed description of important risk factors that could cause our actual results could differ materially. Please refer to our annual report on form 10-K.
Most recently filed 10-Q and their current report on form 8-K filed with the FTC on June two twentytwenty with that I'll turn the call over to Sandra Pelletier I will send CEO.
Thank you Amy Hello, and thank you all for joining US today, the second quarter Mark yet another period of relentless execution. We've checked every box we delivered on every single milestones that we promised that we would achieve.
We said be would secured capital to get us through our PDUFA date, and we did despite the significant fund raising challenges posed by cobot, we secured $25 million from a private placement of convertible notes in one.
We said sexy was an approvable asset based on our successful phase three results and we were right. The FDA approved sexy on May 22nd ahead at the PDUFA date, we were candid with our expense in cash burn guidance and transparent that we needed to raise $100 million to support the successful launch of sexy and initiate the phase three.
S.T.I. trial once again, we exceeded expectations within oversubscribed underwritten public offering of common stock that brought in approximately $111 million, including the greenshoe.
As you might imagine I am thrilled with the dedication and the effort of this team and our singular focus on execution.
Our ability to secure in FTC approval and critical capital in the middle of the cobot pandemic testifies to the experience.
Strength.
Discipline and focus of the entire Evals and team.
During the time when many companies unfortunately, not able to when it's a pandemic we've executed and do we have excel.
Let me put in even finer point on these accomplishments number one less than 14% of products received FDA approval I want to see that again, 14%. So think about all the time all of the effort all would be energy all of the money and only 14% of products are actually approved.
Number two.
The $136 million, we raised this quarter was made even more difficult by changing investor landscape.
Because on May 21st the day before the FDA approval of Becsey PDL Biopharma, our largest shareholder at the time distributed 13.3 million shares of apples them as a dividend to its shareholders. This was done following PDL decision last December to liquidate and monetize all of its asset to return proceeds to add shareholder.
Then on June four which was right on the heels of our fundraising close links fund solutions sold 19 health care assets from a fund formally run by Woodbury, which included 9.1 million shares available for them to an institutional investor.
Similar to PDL the portfolio sale with on related to Abu EMS business activities.
So in the course of just two weeks.
The market absorbs 22.4 million shares about both them. In addition to the 31.7 million shares we sold in the June financing, which unfortunately put downward pressure on our stock price.
But today these overhangs and these distractions are gone.
Our balance sheet is the strongest that it has ever been.
We have a fantastic new group of investors, who believe in our story they believe in our mission and they believe in our team's ability to execute.
We are preparing to launch a disruptive new technology that women have been waiting for.
We are very very pleased that you are with us today and that you've joined us on the German rest Barron's, our chief commercial officer is going to talk more in a minute about the pre commercial activities and the launch plan that will serve as the foundation for sexy success, but first I'd like to ask her CFO Jay file to review the result ever second.
Border Jay Thank you Sandra.
The second quarter ended June Thirtyth 2020, total operating expenses were 22.4 million compared to 11.9 million for the quarter ended June 30, 29 gene.
Research and development costs decreased to 2.6 million in the second quarter of 2020, mainly driven by a 2.3 million reduction in clinical trial expenses due to the completion of the and Pervenche trial in December 2019.
Additionally for the quarter, there was an aggregate 1 billion reduction and outside services costs and payroll related expense, which was partially offset by a 500000, an increase in noncash stock based compensation.
Selling and marketing costs were 10 million for the second quarter of 2020, reflecting per preparations for the commercial launch effects in September.
Now as a reminder, with the anticipated commercial launch we started to break out selling and marketing expenses. This year in our financials. Therefore 1.3 million was reclassified from general and administrative expenses into sales and marketing expense for the second quarter of 29 teams to performed in this presentation.
As you would anticipate the majority of the 8.7 million increase during the current quarter relates to pre commercialization activities that Russ will expand linger later in the call.
General and administrative cost increased to 9.7 million for the second quarter of 2020.
The increase over the prior year quarter includes an aggregate increase of 2.1 million associated with various operational items, including the issuance of convertible debt legal costs payroll related costs due to increased headcount in other general business expenses.
Additionally, there was a 2.2 million increasing noncash stock based compensation mainly related to stock based awards granted in February 2020.
Total other expense was 30.3 million in the second quarter of 2020, and mainly included the noncash loss on issuance and subsequent change in fair value. During the period of long term convertible notes warrants to purchase rights that were issued in connection with the debt transaction that closed during the second quarter of 2020.
As a result net loss attributable to common stockholders was 52.7 million for a loss of 91 cents per share.
For the second quarter ended June Thirtyth 2020, as compared with a net loss of 35.5 million or a loss of 97 cents per share for the prior year quarter.
We closed the quarter with 123.6 million in unrestricted cash, which gives us runway into the second quarter of 2021.
This is based solely on projected expenses and I want to highlight and anticipate affects your revenues would provide upside to this and with that I'll turn it over to rush.
Thank you Jay.
Well just over a month until the launch of the first true contraceptive innovation and over two decades, our commercial organizations, putting together an extraordinary effort into laying the foundation for broad access affects the faster uptake among both providers women.
Today I want to share with you a few of the highlights and underscoring the strategic planning their hard work that has already yielded important result, and are driving momentum into watch.
First.
Market access team has been successfully making the value case for Texas unique mechanism of action and the unmet need among women for a non hormonal woman control FDA approved contraception as result of their efforts. We will soon have all the wholesale agreements in place with back in stock and ready for launch.
On September eight.
A huge when vertex is that for first state bank and many span the two major drug information compendiums that provide pricing them product information to the majority of insurance plans have granted taxi a new classification as the first and only.
<unk> ph modulator.
I can't overstate the importance of this classification and securing an accelerating payer coverage see typically payers can take up to 180 days to review and and to evaluating new drug approved for formulary coverage.
Our unique classification in these two drug pricing compendium, along with our compelling clinical presentation have helped US secure begins with all major commercial payers and obtain early formulary inclusion at zero co pay among several regional plans and local players including.
These are permitting in Washington State and Geisinger in Pennsylvania.
We remain confident that 50% to 60% of payers will have reviewed taxi by the time of launch and we expect the remaining 40% to review taxi before the end of Q4.
Now one last thing on the market access Frank.
We're working with the opposite women's health or O W age and the health resources in certain services administration, our first two.
To update their birth control tables to include sexy as a new birth control option with a unique Emily.
Because there's no specific protocol or timeline established for updating this table, it's difficult to predict we might receive a response to our request for this update but let me be clear about something that establishment of that Nike's category is a nice to have not in need to have perfect. We are not dependent upon ASEAN.
Women to have affordable access to affect.
Our co pay assistance program for those with commercial insurance is designed for women to pay approximately $3 out of pocket or less and in many cases sexy will be covered at zero out of pocket costs.
Turning now to the sales organization, we have completed the recruitment of the 70 sales representatives and regional managers, who will be responsible for engaging opioids you want in offices across the country and we expect them to be fully trained and in the field on September eight.
On average this team has 15 years of pharmaceutical sales experience half of which has been in women's health.
I told my team there we have to strive to be koby prove this is what I mean by that I plan to succeed in the context of the new business rules Cobot has created.
Now the surveys we've seen and there are many of them indicate offices are likely to see those with whom they already have a relationship. This is a critical distinction we understood what the key factor in today's environment. So by design. We have recruited people who have continued to have HCP access and will enable them to.
Watch sexy and the most successful manner possible.
Next the the commercial team has been laser focused on the development of our consumer awareness program as we build out our sexy cost two years' experience, our comprehensive tele medicine platform to facilitate women's access just taxi from a comp or their own moment, that's what they would like.
As part of our coming soon activities, we've launched the initial HCP facing website www dot sexy dot com and you can expect the consumer page to be Livewatch. We're also preparing to initiate the sexy digital media channels in mid August recognizing the heightens use of.
Social media during this covert 19 environment, we continue to refine our tactical plan using an artificial intelligence approach to ensure that we target and consistently engage with our key target segments, both women and HCP. The taxi contours experience is evolving to facilitate women's.
Access affecting through a digital experience from the comfort of their own home.
While woman can still follow the traditional path and visiting her personal HCP to discuss taxi our comprehensive online services provide an alternative a modern path to contribution contraceptive access if you will.
Within a few minutes she come quickly learn about fixing complete and asynchronous survey that will enable her to chat online or speak with one of over 10000 HCP. There are tele health partners Tele Medicine network and ultimately gain a prescription for teksid differ and her HCP agreed that taxi is.
Right for her.
The Becky contours experience does not stop there.
It won't be able to provide her insurance information for co pay and prior authorization support she can connect with her local retail pharmacy and or or she could have reflects these ships right to her door and it will also provide for her refill reminders and support so she never run data protection. This first class access model is.
One of the many examples of how Evo Pam is investing to improve the reproductive health and wellbeing of women.
Now for something I'm really proud of.
I want to share with you at peak sneak up the final sexy packaging and individual applicator for wells, which reflects the brands unique value proposition now I realize I'm biased, but I absolutely love the way this creative design toward that end market research women responded enthusiastically about the work and the feel of the specs he package.
Yeah.
In summary, we are firing on all cylinders heading into our final days before launch with Becsey differentiated profile and strong commercial and clinical presentation. It is now a unique classification in two of the most important drug pricing compendiums saw.
Headway with payers reinforcements, our competence that we will have 50% to 60% of commercial review and coverage of decks at launch with the remainder expected by the end of fourth quarter and effect to social media channels will be launched by mid August finally.
The introduction of the sexy conch years' experience for women seeking a non hormonal option and the recruitment of a best in class sales organization with a specific emphasis on women's health care experience.
Let me say, but with a lot of blood sweat and tears of Joy, we are ready to launch specs on September eight.
With that I'll turn the call over to doctored, Kelly Caldwell, our Chief Medical Officer.
Thank you Ross.
The medical and clinical teams have been equally bit busy building, a robust and comprehensive publication and presentation strategy and continuing the development of Ebo 100 for the prevention of urogenital, Chlamydia and gonorrhea and when.
We began in April with three datasets from the pivotal phase three and power clinical trial, which were accepted for presentation at the annual meeting of the American College of Obstetricians and Gynecologists and published any associations prestigious Green Journal supplement.
This was followed by publication of the full Mpower manuscript in the peer reviewed journal contraception in July.
Simultaneously, we have been advancing the scientific presentation of data from the phase to be an prevents trial evaluating you'd be a 100 for the prevention of your general Chlamydia and gonorrhea.
First up is the poster presentation at the U.S. centers for disease control interventions virtual 2020, FTD Prevention conference in September. We are also working to secure publication of the full manuscript at this landmark clinical trial in a peer reviewed publication in the next few months.
In the meantime preparations for our pivotal phase three trial of L. 100 are advancing right on track we have selected our clinical research organization iPhone, who is also the CRL for answer that.
Based on on our initial discussion with the FDA in May we are planning to move forward with the randomized placebo controlled phase three clinical trial that is similar to and progress. This trial will enroll women who have recently been successfully treated for prior infection with either chlamydia or gonorrhea and women who are at risk for future infection.
Our type C meeting with the FDA scheduled for August 19th and we expect to enroll our first subject in the fourth quarter of 21.
Given the increasing instead of comedian gonorrhea, which has now exceeded more than 2 million cases reported annually and the absence of any FDIC approved products to prevent their transmission. We believed the need any opportunity for easy a 100 is significant.
We are eager to undertake what we expect will be the first clinical trial to enable regulatory filings me U.S. and that you for the prevention of these to comment and dangerous S.T.I.s.
And with that operator, we'd like to open the call for questions.
Thank you ladies and gentlemen, if you have a question at this time. Please press Star then the number one on your Touchtone telephone. If your question has been ancillary wish to remove yourself from the Kim. Please press the package to prevent any background noise. We ask that you. Please place your line on mute. Once your question has been stated our first question comes from the line of Stephen Amsellem lift.
Hi for Sandler Your line is open. Please go ahead.
Thanks, and just sort of a few questions here first.
This is a question for Ross just on on first the decision about a 19th category can you just walk us through kind of mechanically how we should think about the next few months and timing of that I know you emphasized that it's nice to have not a need to have but still think it would be helpful to understand.
The process, there and so they said you'd get that.
Category implications.
For reimbursement so that's that's number one.
And then secondly had a question about telemedicine and I know you talked about this previously Vicki just remind us.
<unk>.
What you're.
Thinking is regarding.
I'm, not just salesforce sizing, but your ability to reach.
Target.
Target physicians virtually and how you think that will impact the.
The initial rollout of sexy, one way or another and I have a couple of follow us, but I'll stop there for now.
Great. Thanks, David I appreciate those questions and I'll try to be sent a brief on those for you.
While other companies really have message how important the Nike category is for them, what we really kind of stayed at because of where we're at we've seen from the payer environment already that nearly everyone is putting us on be even before they reviewed embraced the a coverage either Steve there even if it's in a non preferred position.
So in those particular cases, when you start looking at at that and you say what the woman's for example in a non preferred position had a $75 a co pay.
We paid basically $45 of that we can get her down to a place where she is not out of pocket any more than what we have looked at and market research as an acceptable amount of money and that's still leaves us.
Very healthy.
Opportunity in terms of our margins on on it with with that respect. So that's why we say for us it isn't the.
Absolutely have to have yeah.
But it is a nice to have and we are working towards that we are still and communications with her so and the office Women's Health, then and we do have confidence based upon what we saw when we presented that same data to the compendiums the way they viewed it was that it wasn't.
Back that unique demo a and put it into that Bachelet ph modulator class. So we actually believe that's going to going to be door benefit, but we're not we're not forced in a situation where we get to launch if we don't have that established at that point that will really impact us in a in a tremendous way.
Clearly, we would like to see that happened because we are about making sure that all women have access and that there are no barriers to them receiving that and and that 19 category could help us just to facilitate that into a greater weight in terms of our of our Salesforce and how we believe that we've been able to as I've said to my team tried to be somewhat cobot.
[laughter].
One of the things that we had to side when we moved that most people remember initially before covered we were planning on 125 is we've taken a pretty good look at that based on some of the data that's been coming out from organizations. Like guide you via that have represented where businesses is starting to open in how it's happening one of the things that.
Many of the.
Managers that were in the hiring process did was go to those people who have expressed interest in joining us that have experience and they were able to really understand that they would have access that maybe other people wouldn't have we've also put together and we'll habit launched later in the summer.
Which is quickly coming to an end.
A a portal that health care providers can go to that give them all the details they need to know about becsey because we have the the good fortune of having a really clean safety profile.
There is a away for them to be able to do that on it as I call asynchronous level that will give them the information they need to feel confident to prescribe the product and then on me on the telemedicine side.
We are continuing to.
Partner with people, who will go all the way down to helping women navigate through that doing their insurance form while they're going out the asynchronous surveys and making sure. So that really within a weve time. This out five to 15 minute period of time, they could be on the phone get there.
Or on their computer and get their prescription Don and ready and habit Center then with the next 24 to $40.
Okay. That's helpful. If I may just sneak in a quick a quick follow up here you know as as as the product ramps and can you just talked about the extent to which you'd.
Consider expanding the salesforce.
Over time and in or is this is this sort of a paradigm over time, where you could see yourself.
Even targeting certain general practitioners.
As I understand your longer term thinking regarding the commercial infrastructure.
One of the things I'd ask Jay specifically in Saundra's to give me the flexibility to have the rapid redeployment of resources and put them, where they need to be put based on how the environment switches and turns around us. So one of the things for example, I kind of said if we see the general environment around.
Health care offices open it up to a broader access we would probably look to see about and increasing that number come the first quarter of next year. After we have some traction and see what we were at but I think the critical thing David that I have really focused on is to say, we will allocate our reach.
Sources into those channels that make the most sense and that as Sondra had said earlier in her presentation I think differentiates us from a lot of other companies.
First of all that we don't have this cumbersome.
Infrastructure already established that we have to try to work around but secondly that we are willing and able to allocate where we need to go. So if we see channel is opening up in that in the digital realm that are really flourishing and we will put our assets there.
But we do think Theres, a nice synergy here between that and even in the PR part, which I do I talked about where we where we see those social influencers beginning to drive the conversation will put the assets where they need to go.
Okay. That's helpful. Thank you.
Thank you and our next question comes from the line of Leland Gershell.
Hi, My your line is open. Please go ahead.
Hey, good morning, Thanks for taking my question to answer your questions, Chris regulatory just with regard to this type C meeting.
Coming up any particular shoes that you'd like to highlight before heading into the STR trial and then a couple of financial questions first in terms of the guidance you've given as we think about the run rate for 2021 with for Q costing between 40 to 44 million in cash.
Should we use that kind of as a benchmark more or less for the run rate heading to 21 and then my my third question as you know should we see a return of the much heavier outbreaks of Cobot 19 later this year and a return to shut downs, how should we think about you know if it sounds approach to either redeployment or furloughing of steel for.
As for heavier spending perhaps on online virtual activities, how should we think about that thank you.
Sure says his Kelly highly lent I'll take the first question regarding regulatory so because of our fast track status and QIDP designation for the chlamydia and gonorrhea indications, respectively. We have the opportunity for more interactions with the agency then that would otherwise be possible and so this type C meeting actually.
As our opportunity to present, our whole protocol to the division and ask for their feedback specifically around you know the strategies that we may need to employ in a koby environment.
Specifically around the way that we're defining our endpoint et cetera. So that we can have full agreement before our anticipated first station in at the end of the here.
Hi, good Lewis.
Okay. Thank you.
Perfect.
I'll go in next.
Yes, so as far as that runway goes not necessarily does the Q3 Q4 spend to mirror and anyway. What we will then start off the year. So I would not use that as an if youre your proxy moving forward.
We still are anticipating in assessing when we will start giving more guidance beyond the end of year, we do assess that probably Q1 would be the first time that we might give some additional guidance.
Probably includes revenue at that time as well, but.
I would not use Q4 has with the basis, it's going forward into Q1 that would that would be a little low.
And then Leland et cetera.
No go ahead sorry.
I don't know the thing you know, it's an unfair world where in obviously in wanting to see what thought you'd given to you know kind of what contingency plans you may have.
The direction depend doesn't make sense.
Yeah, No look I think it's really.
Critical question and thank you by the way and I hope everybody on the call has hurt the unbelievable exuberance in excitement from Russia [laughter], we could barely contain have we are making him where we needed to be so excited but to your point.
We really have been very disciplined around trying to make the entire organization, but particularly the commercial footprint coping proof and we really mean that and so for example, we've anticipated the worst I mean, we really have and so what I mean by that is that we when we talk about the focus we've had identifying the sales team.
As an example, Manhattan, there's a high number of contraception prescribers, there, but obviously when you look at what's happening with the pandemic right. It's an incredible hotspot. However, we purposely identified in recruiting people not only had these long standing careers and women's health had relationships with these offices were trust was already established.
And the kind of trust, where these offices and providers are still seeing went in in a variety of different ways. So I guess, what I wanted to say to create the confidence that we're very mindful that this could continue where you can get worse and the people in the places we've selected not only are going to be able to help our launch trajectory because of prescription.
Based on prescribers, but they're still going to have access and we ensured that they would they literally most of these people checked and identified all of these offices are going to be calling on even while the around the interview process. So we could ensure that these aren't timid little kittens that are going to say Oh, My goodness I can't go out and continue to make an effort we.
We purposely made sure that we had the right people with the relationship so.
I don't think its two competent to tell you that I think we've already.
Identified what could be the worse and that's why we've selected this handful of people do you agree with that right, yes, no I really doing and Leland just of the pick up vinyl little note on that is you know we put a lot of pressure testing on this because there is no desire and our part whatsoever to fertile people. So we've really made sure that we not only put people in positions.
There yesterday.
They have access by one of the things that we've done is we have we have eliminated what we call the traditional territories and we move these into regional business units in the sense it saying they as a region will figure out how to work through that and make sure that they're successful using.
Whatever is necessary some offices literally are saying, we'll be doing the parking lot and and there and they're fine with doing that kind of thing.
Thank you.
Thank you and again, ladies and gentlemen, if you wish to ask a question at this time. Please press Star then one on your Touchtone telephone.
Our next question comes from the line of Ram Selvaraju Barbara.
H.C. Wainwright. Your line is open. Please go ahead.
Hi, Thanks, very much for taking my questions. Just two quick ones on the commercialization for sexy if I may I wanted to ask about sort of more traditional promotional channel and what role. If any you expect goes to play with regard to the overall marketing campaign and how those based.
Like we said into you know sort of the more new fangled techniques that people are using nowadays, whether its digital and social media, but give us a sense of what extent the traditional avenues, whether that's radio or whatnot are actually relevance here and then I also wanted to ask a if you could provide us a little bit more granular.
Parity around.
The competitive environment for Salesforce hiring how you're feeling that playing out and if you feel that you're effectively being able to get sort of the pick up the letter as far as you know salespeople are concerned and then I had a couple of other questions regarding clinical development, but maybe we could start with those two.
Thanks, Rob, Yes, so I'll be quick on this this to simply say we aren't we're utilizing many of the traditional channels that Weve you would typically have no preparing for HCP is in respect to journal advertising and those kinds of things one of the things we have ramped up a little bit is what is often referred to as non personal permit.
Motion and those are methods, where you would send emails or faxes or even on.
Mailings to them one of the things that we have discovered is that.
Healthcare providers are still same pretty clearly we want to find out, especially about new drug approvals and they're much more willing to to use some of those traditional method that maybe in the past it started becoming.
Going by the wayside. So as an example of the open rate that's that some of the company's that use non personal promotion for emailing has started to increase because they're not seen people in person. So we are continuing to use that and one of the things that we didn't talk about but as you know we just recently.
Video video to a.
A user experience from someone who is in the Mpower trial as well as one of the clinical trial Accordant investigators and so those types of things will begin to to be used promotionally, both for healthcare providers and for women as we move forward, we think that those mediums really worked well for for us because.
We were already pretty well geared toward a digital mentality and so that really played in really well for us in that respect.
Okay.
Does that answer for you wrong.
No that's very granular. Thank you I also wanted to just quickly asks about the clinical development side of things, particularly with regard to the yet.
Two quick clarification Torrey point, there I was wondering when specifically in the fourth quarter. You believe it's most likely that enrollment would get underway underway in that study and then also if you could give me a sense of.
Whether you feel that enrollment is likely to be fielded from any future potential impact from the pandemic.
Yes, just give us a sense of to what extent that trial program is likely to remain unaffected by pandemic related prescription. Thanks.
Yes. Thank you very much. So you know we haven't given specific guidance on when in the fourth quarter, we anticipate enrollment, but we do think it will be earlier rather than later in the fourth quarter and so hopefully that's helpful and as soon as we have more information probably.
Get ready to take screener first patient will be able to provide more granularity there, but we do anticipate earlier in the fourth quarter.
With regards to co bid potentially impacting our.
Program.
We do have several different contingency plans in place in terms of our ability to continue the program during the cobot environment, we know that a lot of healthcare providers and particularly the clinics, where we anticipate enrolling a lot of our patients have successfully incorporate telemedicine into their practice is particularly around.
Excellent it's hard to tell the great news is is that our primary endpoint is driven on the.
Chlamydia and gonorrhea rates, which actually can be achieved through self swabs sell fashionable swabs from home. So I mean, we have confirmed that our central laboratory can in fact accommodate women are clicking tell swaps and mailing goes swapped in Amin. So that's an example of something that were going to confirm again this time.
I see meeting would be acceptable at the measurement for our primary endpoint should it be necessary using its great about our program is we have no real safety concerns we've had multiple pivotal large pivotal trials that have conducted regular gynecologic examinations of women using our product and so because of that if we needed Stewart.
Visit either for even enrollment or.
That is during the course of the trial the monthly visits during the trial that wouldn't be a problem because we don't necessarily have to have those monthly physical examination to confirm safety our product.
So we're pretty good position and we also have working with icon and they have a lot as I told the disposal as well, especially around hit the compliance telemedicine.
Opportunities to conduct remote visits.
Okay, Okay, perfect Thats really really helpful can be somewhat.
Sure.
Thank you and this concludes our question and answer period, and I would like to turn the conference back over to us on drip Pelletier for any closing remarks.
Great. Thank you.
I'd like to thank everybody for joining us today understanding with ever fan as we move forward. We ahead with the launch of sexy.
As you know we are going to be bringing the only hormone free wanting controlled contraceptive product to millions of women with needs has gone unmet.
Arch mom.
We have been very thoughtful and deliberate about hiring our sales organization. So that we could have sales specialists in areas, where they have access to key providers, even during the cold material dispensing period and that as I said before to Leland question that many of the people. We hired were asked to go and check with.
Their health care providers to ensure.
That they would continue to have access should they be given the opportunity to work with that with that.
We are confident that we have the right team. We're confident that we have the right strategy and the right tactics in place to successfully execute on the launch affecting.
We have repeatedly said that what we think to be true is that in order to have a game changing company you need to have four things.
We need to have a true innovation.
And for US sexy is exactly that with no hormones and on demand usage by women. It makes it completely game changing you need to have an unmet need and we have said repeatedly that there are 17 million women right now there are beyond.
We'd have the capital in order to move your program forward, we have secured that and finally, you need to have the team and the strategy to execute and I hope that what you have seen is that we have that team and we're really excited to be here. Today. We've always received a lot of wonderful comments that we are incredibly positive on these calls.
I can tell you it's not because we have not met obstacles and challenges, but it is because we know that the future of this organization and the future of sexy is going to be far more than bright and you also heard it even in this pandemic situation contraception is the fastest growing there.
Our two unique area through telemedicine and Tele health. So we remain very very confident and we're excited about the future potential Appleton biased sciences, we're thrilled to happy with us on the journey, we look forward to sharing more information with you on our next call. So had a great restive today. Thanks.
Ladies and gentlemen, thank you for participating in today's conference call. This does conclude the program and you may all disconnect everyone have a great day.
[music].