Q2 2020 Athenex Inc Earnings Call
Good morning, ladies and gentlemen, thank you for standing by welcome to your Phoenix incorporated second quarter 2020 earnings call.
This time all participants are in listen only mode. A question answer session will follow the whole presentation should you require operators. That's that's starting to conference. Please press star zero on your telephone keypad. Please note. This conference is being recorded.
Well now turn the conference over to your host Michael Ward with lifestyle advisors. Thank you you may begin.
Good morning, and thank you for joining the conference call. Today's the company provides an update on the tax it's business as well as they're doing the financial results for the second quarter at first half of 2020. The news release detailing the results crossed the wire earlier. This morning is available on the company's website. A replay of this call will also be archived on its helix is website.
During the course of today's conference call the company will be making projections or forward looking statements regarding future events, including statements about potential business Apollo milestones anticipated in fiscal year 2000.
Yeah.
Encourage you to review the company's top 10 future filings with the FCC, which identify specific factors that may cause the actual results or events to differ materially from those described in the forward looking statements.
You can find a company that you see findings on the other guard database that you see that golf or the Investor Relations section of the company's website at Phoenix Dot com.
This morning, we're joined by Dr., Johnson Lau, Chief Executive Officer, Mr., Jeff Yordan, Chief operating Officer, Dr., Rudolph Kwan, Chief Medical Officer, Mr., I don't see Chief Financial Officer, Cook Senior VP of global commercial oncology they'll all be available to answer questions. During the Q I session.
With that I'll turn the call over to Johnston French Dr. Thomas Jonsson. Please go ahead.
Thank you.
Hello and welcome.
So far.
Turning her speeding up very poor <unk> either.
We continue to make a Boston, even our two had products have been nothing on the month and oral paclitaxel.
All of which we believe.
Could be important and variable notices.
We are competing outcome much like since your infrastructure and supply chain.
Third upholstery, excluding the commercial stage biopharmaceutical company.
And it continues to strengthen our balance sheet.
Yes, yes, yes, no flexibility to exact even and maximize the value all fall pipeline.
He couldn't especially the all Scot free fall.
Regarding the empty for oral paclitaxel.
We will be picking up you seem approach as we do.
The nibbling argument.
We plan to make it up for short notice when once the far didn't actually last Friday F.D.A.
We are over here pretty soon here, what the exceptional work.
Okay, the cold and records achieved.
And the execution on both of these products.
Well look to pull why didn't I referred to update so.
Oh commercial.
Putting all the key elements in place was successful architects so launch.
Go ahead.
We have previously said.
Just to make all Petrotec. So you chemotherapy of choice for metastatic breast cancer.
And we hope to be ought to be success in this initial indication they decided to the compounding all but shouldn't use excuse you ought to Texas.
We could see cool.
Our head office marketing.
We'll go one sort of details on how commercial initiatives later on this call.
We have strengthened I bought a six who you signaled financings.
Use of proceeds we could be commercial launch Oh look like next all as well as Gordon talked warranty rather than.
It's actually infrastructure.
Hi, bigger saltwater sheets.
Did you pull why didn't the financial flexibility to do for you right. He didn't lifecycle management, all paclitaxel and additional R&D activities.
Older to maximize the potential value all fall far pipeline.
Okay Kwan will provide more details for DC shortly.
I was supposed to be pharmacist east plus all the good well.
Every quarter to date recalled for people to millions in revenue.
Mark cells he'd be second quarter.
The increase of 2% year over year.
This represents our highest quality products sales to date.
Hey, somebody's, though we're raising our product sales guidance.
So you have turned to Turkey to.
Q percentage growth year over year.
From a coupon farce minium.
Even trendy 90.
Very positively.
Oh supply chain, we things operational.
Our manufacturing facilities in troubleshooting and Dunker continue to post it on schedule.
We're building up our inventory in a confident that we will have sufficient supply for our clinical regulatory and commercial mix.
I'll now turn to go over to all Chief Medical Officer talk a little Kwan.
Look for why an overview of how critical programs.
Good morning after one.
I'm very pleased by L. Polk right on top of Nipping employment and oral packet txcell.
That's happening, but in all human hefty every real process. He is on schedule.
We know that directly committee process healthy Specking, CMC and kimco size is proceeding well.
And so far no farm for 83 have been issued.
The pet due for a date for these tropical at Pinnacle Telesats product if December that tier.
<unk> oral paclitaxel and cyclical.
Directly to the process is ongoing and we intend to provide an update upon F.D. acceptance of fighting off the application.
Calls at 19 is changing the way oncology you've got a usage.
As mentioned last quarter, the national comprehensive cancer network for NCCN had issued a guy life. The encourage switching cancer patients from infusion based therapies to oral oncology tick.
There is an active washing away there both in that oral formulation.
We believe that if approved oral paclitaxel, what also provide an important alternative to patients who prefer to receive treatment in the safety update on home.
Im also happy we made one up the cornerstone FFELP oncology treatment and packet Txcell is a widely used chemotherapy agent indicate the fall where is still not type and the backbone to Mandy combination treatment.
We believe we have a very important druck and I'll go is to bring oral paclitaxel to us many cancer patients in need as possible.
We end the process of exploring a number of lifecycle management and label expansion studies for Rhopressa taxable.
Including various combination therapies as well as no indication.
As soon as they have been finalized we expect to make the important announcements.
A recent development on this front, what's our presentation of interim data from our ongoing phase two study in I'm respectable cutaneous and Joe sarcoma at the ASCO 20, Burchill scientific program in May.
The data we're seeing from this study continues to be very encouraging and further highlight the potential brought utility of all Rhopressa tech so.
We showed an overall kinda cope benefit right off 100% in the 22, you edible patients receiving all real paclitaxel treatment.
The race fault complete responses.
Possehl responses.
And stable disease.
27.3%.
72.7% and 50% respectively.
Oh 22 patients experienced a reduction into my side.
And oral Paclitaxel has been generally well tolerated in display dominant need elderly population.
Days, a high unmet medical need in angiosarcoma. They are no F.D. approved drugs to treat these rare aggressively ses and we have been granted orphan drug designations for oral paclitaxel in the U.S. and Europe.
Well I'll earliest stage product candidates.
Like the majority of out P.S. in the industry, we have experience slowed and Roman that's a lot of temporary suspension in out clinical trials, that's health care resources I wanted to address dependent that make.
Our anticipated timeline follow later stage product candidate, however remained largely unaffected by he called that my team.
I'd now turn the call it over the Timco for the commercial uptake.
<unk>.
Thank you Rudolph and good morning, everyone.
Commercial preparations for oral Paclitaxel launch right in advance stage. It is our number one priority to ensure that our team is prepared to enter the field as soon as we got that's the approval.
[noise] hiring is progressing on schedule.
Last quarter, we added <unk> and that's LTV and this quarter, we have hired our head of sales.
Recruitment efforts are still underway for the account directors, who will call on payers and corporate customers as well as our lead with that.
We have adopted to the new cobot environment and are preparing to have both in person detailing and virtual promotion tactics in place where our launch.
With respect that person propulsion, we've completed our territory alignments and constructed our position target list.
Additionally, virtual detailing systems are in place where sales reps medical science liaison.
And other members of the marketing team to provide us with additional flexibility.
Our plan is still the higher 25 territory reps upon approval to cover 70% of the harvest prescribers and then a handful of in house salespeople, calling the remaining 30% position.
Additionally, we will employ a team of oncology nurse educators, who will be focused on targeting nurses nurse practitioners and pharmacies to provide support on patient education, new patient starts and managing side effects.
These that we hired in Q4.
Well Paclitaxel is an exciting drop but has the potential to be practice changing.
We have shown in our phase three study a superior response rate and also survival.
As well as lower and the Rocky.
Our team is excited by the clinical results either further driven by the encouraging feedback from mostly U.S. clinical experts that we spoke to you the clinical data.
The market opportunity is compelling.
Our market research shows that oral pack whats absolute will be prescribed mostly for breast cancer patients, who are hormone positive or negative or who are triple negative.
This represents approximately 70000 patients anyway the U.S.
We also know that in metastatic breast cancer chemotherapy use mostly after CDK foursix increased therapy and single agent chemotherapy is preferred.
So we're very enthusiastic about the commercial prospects.
On June 13th and 14th we participated in a virtual metastatic breast cancer conference sponsored by living beyond breast cancer.
Oh eating breast cancer advocacy organization.
Opinions had a virtual booth at the conference to promote its basic metastatic breast cancer together program and digital application.
This program targets, social isolation metastatic breast cancer patients and provides patients with a digital tool to create an online list of ways that friends can help.
The Booth was the number one visited booth at the conference and we managed to increase the company social media presence and the number of media impressions.
We continue to monitor the commercial landscape in oncology and note that the total number of cancer details is back to pre coded levels.
But the mix about with each is now 85% virtual.
And 15% in person.
One interesting observation is that we're on couple of weeks are favorably impacted by corporate 19 and are trending 5% to 10% ahead of where they work before cobot 19, and there's continued increase in demand for keeping patients at home.
Now I'll turn the call over to Jeff Gordon our COO.
Thank you Tim.
Let me give you an update on current developments with our infrastructure and supply chain and also on the existing commercial business.
Our strategy as you know.
Just to build an oncology company that is vertically integrated.
We have taken what we believe to be very thoughtful and proactive approach to investing in our commercial and manufacturing infrastructure.
Adding resilience to our business model.
We are confident that all elements of our supply chain are prepared for clinical studies and more importantly, the launch of oral paclitaxel.
We recognize the importance of this encountering maximum value.
Once we launch our proprietary products.
As we have set on last call.
This puts us in a stronger position to handle the challenges that have resulted from call. Good my team.
Our Thai hot facility in chunks, saying, which is where we manufacture the raw material for oral paclitaxel resumed operations in March and is able to supply product for launch and also from planned clinical trials.
Our new and larger Apiay facility is also on track to commence operations later this year.
As a backup we have the secondary raw material supplier, which would allow us to substitute freely while maintaining the same high quality and the same cost.
On our facility in Dunkirk, our plan is to dedicate part of Dunkirk to manufacturing or fiber three brands. This could allow us to increase the five or three d. business, which has been constrained because of our limited manufacturing capacity.
Additionally, we also plan to manufacture our injectable products at the facility as well as proprietary products in the future.
As strategy, you mentioned were reported our highest ever quarterly product sales of 40.2 million.
This increase was mainly due to a significant increase in specialty product sales as result of increased demand for certain drugs that are used to treat patients that have been hospitalized cope with 19.
And our ability to supply brothers, which rami ft a shortage.
These include Azithromycin, the Dallas, Atlanta, Pitarrilla, and Pip pursuant has tobacco.
Future afternoon.
Fear will obviously depend on Reagan cobot infections.
Given our track record we believe we are in a decent position to well capitalize on these opportunities.
Okay next pharmaceutical position currently markets 30 products with 56, skews and the Phoenix pharma solution markets six products and 18 stages.
We will continue to introduce new products this year.
I'll now turn the ball over who ran.
To discuss the financials.
Thank you Chad.
Revenue from product out increased to 40 to 40.2 Mevion screen month ended June 30 2020.
Her with 22 million in pure last year, and increasing 82% year over year.
Hopefully products increased significantly primarily due to increased demand what it used to treat coking Nike patient.
We experienced an increase in purchase it from our existing customers as well as obtaining large nonrecurring orders.
Actually products from new customers.
Called themselves for the second quarter totaled 33 million, an increase all 16.1 million on 95%.
Compared to 16.9 million same period last year.
Cost of specialty products out increased in line with the increase in Robyn.
We continue to incurred call it by the decreased production at our <unk>, yes.
R&D expenses for the second quarter totaled 22, New me at compared to 18.5 million in the same period last year.
This was primarily due to an increase in records recall R&D related compensation pretty good cooperation and drug liking thing.
SGN expenses for the second quarter totaled 17.5 million at compared to 17.2 million in same period and 29.
Oh, no low the EBIT line, Rebecca like 7.2 million loss.
Related to the termination of the perceptive senior secure long in the second quarter, but did not incur expenses.
Mother nature, and the same period and 29.
As a result before doing that long actually beautiful Phoenix 40.5 million up 50 cents per diluted share in Q2 20 point.
Compared with 32 minute 44 cents per diluted share in Q2 2019.
Excluding the onetime that extinguishment basis up 7.2, more not long after beautiful unit in Q2, 2020, or 33.2 minute or what do you want that puts our leadership.
In terms of product that we're raising our guidance what will your 2020 year over year growth I leave me <unk> percentage versus the mid single digit growth that we communicated credit.
From 85 million in 2019.
It takes into account outperforming your debate, that's well at our outlook for the remainder of the year.
Our problem makes me continued to increase products are used to treat called the patient.
No we do not beauty driving its recurring in nature.
As a reminder, our guidance only include product.
We do not provide guidance partnership revenue Muslim payment.
As of June 30, 21.
Hi, crush and classic Clubland hunger and why on mine that.
It's it's a catch up 11 million.
Turning Bachman 10.4 million.
You are also keep our entered production I want covered.
On June nine to enter into near quite agreement, but okay.
Which allow us to blow up to 225 minutes.
Function on the maturity date, you might be on that.
The first tranche of a condominium what's gone down hierarchy June on June 30.1.
54.1 million hope you impart to be paid with outstanding loan me under the credit Green.
Good.
In addition, afford that truncate totaling 125 minutes will be available borrowing from time to time subject to our achievement certain regulatory and commercial milestones.
Second of all we announced this morning, we have entrench Iraqiya Internet financing Green Bank, our healthcare royalty partners.
This agreement provides us with 50 million comparable upon FDA approval or a pocket axle, what tremendous metastatic breast cancer.
In exchange for funding the top selling cycle, where we keep a mid single digit Robert T worldwide myself.
Although pocket pack, so up to find I agreed upon total payment.
Based on our current operating plan.
We expect our cash cash equivalents restricted cash and structure in Boston adds up to 30 2020.
Other with cash to be generated from our operating activities.
And the non diluted common made available treatments that enable us to fund our operations into 2022.
Additionally, detached including financial results for the six month and June 32020, it's well at the detailed on the Oak tree in fact, our transaction.
<unk> form 10-Q to be filed with the asking.
I'll now turn the call back to Johnson for closing remarks.
Thank you window.
Before we open the call two questions and two more recent announcements I want to highlight.
Your first is the appointment of Dr., Robert Spiegel, two out of directors.
Oh, sorry go it's a very experienced pharma industry executives and he brings a strong track record of evaluation is successful in the approvals at botch kept pharma and biotech.
He was previously Chief Medical officer at certain cloud.
His responsibilities did include chairing the oncology drumming team for over 10 years and overseeing more than 30.
So do truck applications.
We welcome Robin.
Very on that he has agreed to join the board.
We also want to choose express out deep appreciation to Mr., John Coke for his contributions and surface well now bought and wish him well if you step style.
Second.
Recently announced at the promotion or should we sit back to general counsel. Please see the white stresses and I'm ministration.
Theresa I speak with Phoenix since 2015.
She has been evolving actually aspect of this and has already separate yourself as a key members of the teams here.
I want to congratulate Theresa and beautiful, but you have continued contribution in this expanded role.
Finally, I want to think the clinical and regulatory.
He pinnacle.
Yes, she and supply chain teams.
Solid execution.
What has been a challenging environment for everyone.
The ongoing work by our commercial Peeps also exceeded expectations.
This was an exceptionally strong Paul Toms Upsells and all commercial infrastructure, you snow and it Avanci LP tiredness.
Mike Koban 19th.
We will now open up call two questions. Operator. Please go ahead.
Thank you at this time, we will be conducting a question and answer session. If he would like to ask your question. Please press star one on your telephone keypad a confirmation tomo indicate your line is in the question Q. If at any time you wish to remove your question from the Q. Please press star to for participants using speaker equipment and maybe this is there.
Got it pick up your handset before pressing the star keys, one moment, please wholly poll for questions.
Our first question is from Robyn Karnauskas, what's your securities.
Hi, guys. Thanks for taking my question I'm, just wondering personally you're not going to comment on when you filed but maybe you can give us is that.
If the right in general any surprises in the <unk> or where they as you expected.
And then second question if you talk a lot about how there's a push towards you know really angry he said oral pill drink co bed, but you know what do you think steps are once you get approval.
What do you what needs to be got you have to get on the hospital formulary for is there such an unmet need for using oral drug do you think you'll have immediate use by certain hospitals or certain community basis, maybe just give us some color regarding that and what that actually mean for uptick for a new drugs is being lines. Thank you.
Thank you.
You have two questions arching, how can I say go first question and people can I say second question. Thank you.
Well done.
Hey, Robyn.
The.
As you say when we're not commenting on out fighting we follow to cooperate policy all announcing the acceptance of fighting.
Your questions regarding how we anticipating any set prices from the FDA.
I would come and that when I follow what the at EEI speed announcing recently, what they approve thing recently that the a FPL call achieve direct that's off the process has publicly announced that.
Yep is focusing on oil.
Anti cancer treatment and they will be because they have a major role to play in the call that might seem to keeping patients at state that home and also.
Keeping the helps provide.
No what the than so those are varied.
Encouraging public announcements from the FDA. So I would anticipate I'd be surprised us those will be the upside surprise us we'd be looking for.
Jim you want that you asked a that the second question.
Certainly thank robin for the question I, but the first that really in terms of gaining access.
Is to engage the payers or through the pre approval information Exchange Act. That's a programs in place that allows us to engage population decision makers.
Prior to approval and so that as I mentioned in my opening comments. We're currently recruiting that payer team and we anticipate having in in place you're likely this quarter. They will then began engaging payers with the information. So that there are prepared to cover the product quickly after approval the second step.
It's really these large community based practices, but the majority of our business will come from private practice.
And they are able to dispense in many cases themselves and so there's very little requirements that will be in place in those particular offices and we actually began a consulting with those practices already three with some of their heads of pharmacy et cetera, and then the last that will be formulary in in the large IDN and.
And that again, our corporate account directors will be engaging them immediately upon approval.
To gain access to be formulary et cetera. So we feel like we have that the primary three areas covered and laid out and the feedback that we're getting from payers that we've engaged is pretty encouraging based on our target product profile in the data that we've shared a they see this is an important product in the treatment of metastatic breast cancer, especially.
In the environment there we're in right now.
Great. Thank you so much.
Our next question comes from Kevin Mackie with RBC.
Hi, good morning, and thanks for taking my question. So the press release.
Noted that the rock salt filing was.
On track and on track at least for the guidance that was previously issued list for you to submission I know that you're not going to comment on almost until the accepted but to new really help with my math being that we should do about this by the end of the month of this was submitted.
And so you're too or thinking about sort of a 60 day timelines associated with an acceptance of a filing is that.
Correct way to think about this.
Uh huh.
Right right.
As I said, you'll hear from us when we see Oh from DFT about EPS up since other fighting.
I don't think it'll be a right for me to come in on the expectation or timing at this time point, so stay tuned and you'll hear.
Oh, so are there any sort of coal clock stoppages within that sort of 60 does.
Notice period of acceptance, but I'm not thinking about that maybe we should be thinking about it I think we're all sort of holding our breath or for the filing and again I mean.
The contracts would be really helpful.
Absolutely I said that the probably needs to.
Can you hold your breath.
The yes, absolutely the right that Chen Euro a roof days, both 60 days do announce the whether the findings upset that or not and ER and that is what we are the time that blue amongst that the file has been accepted.
That's what I think you feel more color is that we have been very good executing according Chihuahua timelines and that that is how policy that we only comment when we have for.
So somebody apply something like 58, so I couldn't got either way address your question I don't think competing but you know we could give you some indications already.
Okay got it and again, just just going back to the line in the press release. The filings are on track should should we interpret that the back on track with with prior guidance.
Ah we affirmed this all cadence and we have not <unk> any information or any sheets, which we got to that that if that you're not seeing with guidance.
All right, thanks, very much and that's on the progress.
Thank you. Thank you.
Our next question comes from Kevin Degeeter with Oppenheimer.
Hey, guys. Thanks for taking the question, yeah, I'm not going to kind of go further into the regulatory I guess, maybe go different direction.
And just talk a little bit about you know cap structure here yeah.
Yeah, you're taking on what's potentially significant amount of dad here when you looked at.
Other sort of comparable development stage, you know biotech companies with a similar potential level that you know what do you sort of call out as a good benchmark as you know sort of your peer companies that have been able to handle the kind of that you're potentially taking on here and is one thinks about.
You know leverage ratios here or sort of decisions on whether or not to make future draws.
Are there any particular balance sheet parameters that you'll look to that'll help inform that decision.
Ah Randall.
Yep, they get cabinets or question, Yeah, actually you know or through other pockets. You know we saw you know we've always been evaluating different kinds of you know financings instruments.
Oh, I guess, maybe I can take the opportunity to if you give more color as to what we think of these two recent financings that we completed a just so that you know you know neither of these cheap financing are putting any sort of significant Britain financially distressed when the company and.
One thing that because like take you know the Oaktree senior.
The Cuda as an example, you know they actually have very limited financial covenants, Oh, what we're looking at a.
A minimum liquidity covenant and arranged minimum total company revenue targets that we believe you know we should be able to you or you know cheap.
And ER and coming back to you know the coupon rate. If you look at the not to press release that we put out are there today I think you know probably were looking at are actually pretty sure friendly. We're talking about you know 11% fixed per annum.
And not with regard to the stack are rapidly interests financing that we checked and train two Oh you know earlier. This week, it's actually pretty are again, a favorable structure for us and the reason why thing that is because you know Oh, we're actually looking at 5% of Iraq. So nextel.
The payment a and in terms of cash outflow, we believe it's actually pretty modest.
And the other thing I'd like to comment on as a you know or it is actually interesting to note that you know that east you Oh, yeah. The combination up there, but anything that we've done a it actually the first Rick transaction.
Eat it that could create that with the larger <unk> senior and.
So the way we look at it and you know we don't just look at the leverage ratio or some of the numbers I think you know they've been paid to highlight it throughout the process I think it the way, we evaluate E financing options or funny thing avenues.
We want to be a you know they stayed away.
In the last couple months I would have to pay no. We're very excited to be able to pondering a with both oaktree and cycle. It because you know you don't we don't view them as just you know financial partner or capital partner I think through at a process. They actually it demonstrates yard that you know they shared the same vision, that's the company and they truly believe.
And our assets so.
<unk>.
Regarding the long term business partner, so hopefully that addresses your question.
Got it lot of data so maybe on a different no can you talk a little bit about and it is for it off.
Yeah. Additional studies that you may look to potentially kick off perhaps in the second half a year with oral hack attacks on to build on the strong data you have.
Yes to answer your particularly of various combination studies that.
Could be of interest to company to further expand a potential clinical utility of oral paclitaxel.
Absolutely cabin.
Now that we know directly to the process on track for both our products I'm turning into focusing on how we can help the company and team income cellphone lifecycle management strategy. So basically we are met.
No the directions, we have been saying all along in more details and once we got them map out we will communicate as you.
Here from me in the Pos that refocusing some additional indications.
To in essence.
Tap into the standard of care, where I'd be petrotec. So is widely used and also we look forward to combination therapies very much in the immunotherapy combination area. So you will hear a lot from us and now that we have the.
Hi to look into supporting teams team, we will be Africa. They didn't that once we have that met you will.
You'll see that will go through a very rigorous process looked at the a market assessment the return on investment and come up with a very thoughtful plan.
Favorite appreciate that thank you so much.
It doesn't have any I also have Hawaiian it did not fit back for your question with regard to debt I think that one can do it. This way just we believe that somebody that's just consider that we do we do have a try this overhang and not a good part is that we are at a stage that we can both to I looked at.
Non Dod this financing.
The actual context is helpful. I appreciate that Johnson. Thank you, yes. Thank you.
Okay.
Once again to ask a question. Please press star one our next question is from Chad Messer with Needham.
Great. Thanks. Good morning, Thanks for taking my question [noise] <unk> very exciting times here with a.
One up due to date looming later this year in and hopefully another one being assigned soon.
Yeah Tim.
Through some of the.
Pre launch awareness activities that you're you're doing for Iraq. So I was wondering if you just comment on.
Where do you think you guys are with awareness with this product I missed this this could be really big I think we all appreciate that.
You know I, either anecdotally or you are if you have any you know numbers are figures from surveys.
Where do you think you are with with awareness to our are the you know key opinion leaders and and other doctors as aware as they need to be a that that this is a potential product on the horizon.
Okay. Thanks, Yeah. Thanks for the question. Yeah. You know we have spent a lot of time focused in focusing its one of our critical success factors to make sure that by the time, we gain approval that there's high awareness of this product into the Phoenix quite frankly.
And so since San Antonio we've conducted 150, a unique one on one discussions with clinical experts in breast cancer most of them in the U.S., but some of them global and the awareness we've seen dramatically increase from the first round of interviews, we did to the second round, which we just completed.
And the things are pretty common their impressed with our overall efficacy profile. The response rates and the overall survival. They are impressed with the significant decrease in neuropathies, something that really to them as incomprehensible that they can use attaching without under opportunities.
And use it for a long period of time excuse me.
And they see the our toxicity profiles being manageable.
So the overall feedback has been very positive and we actually did earlier this year do a surveyed into a broader element of the marketplace and we've seen our awareness really go from zero up to about 70% across the board of both the product or paclitaxel as well as well as a Phoenix. So we feel like where we are at this point in time still quite a bit.
Head of launch that we've made real progress a core across positions with overall awareness and then, particularly when we drill down on the clinical experts, we've seen a real improvement and their perception of the product hope that answers your question.
It doesn't and.
Thank you.
Very very helpful.
Our next question from Yale, Tim with Laidlaw <unk> company.
Good morning, and thanks for taking the question.
The first question is little bit housekeeping that ER R&D Ben.
Kansas on the second quarter was a jump from the prior quarters. So should we consider for the remaining off the second half of this year that will be a benchmark.
Quarterly or that gets the onetime thing.
Thank you now offer a question yet I think you can use that our Q2 number at the benchmark.
For the rest of the year that sign up I wish there safe assumption.
Okay, great and Oh, sorry into product sales the second quarter, obviously is a great news and given that Oh, the cold stacking it seems to be with us for a while you're not alone while you guided about.
Amid a double digit teen growth that roughly.
My estimate is that the for the second half of that each quarter, so roughly get back to the level of first quarter.
South is that a more conservative measurement or you feel there's an additional thing that Oh, you can talk about.
Yeah, that's the guidance.
Yeah.
Earlier on the call actually takes into account you know the performance year to date and also our outlook for the remainder of the year.
And the reason why are we gave out that Scott.
Oh, I get the basis for us to give our that that it obviously you know Oh, we have looked at stake the numbers and you know in July However, I would say or some of these <unk>.
Oh coal that related opportunities are oh, yeah, as I mentioned they are nonrecurring in nature. So we want to set the expectation right. Obviously you know if there is the upside surprise, we will be able to come back and provide an update.
Yeah in November but for now.
The next.
Nicotine year over year growth will be a fair assumption on welfare estimate for our two year in a part of south number.
Okay, Great maybe to ask question tag on here is that I know the focus is to put our APAC, though is for the U.S. filing.
Could you guys talk a little bit about the strategy in other part of the world.
For instance, in Europe, or maybe you you may want to talk a lot about in China and thanks.
[noise] reduction.
Yes.
Yes of course.
Our focus so fast in the U.S. and we of course, keeping an eye on the rest of the well and expect to the yes, Youre right dimension Europe is a major markets. So we have activity initiating there and we will be reporting soon as soon as we here.
Our plans up being finalized in the European area in China, certainly we have a piece licensing listen shape and we are actively discussing with them recapping the China registration.
Our strategy I think they are exciting developments in the China ft, a new regulations and we certainly would want to exploit anyone that they that we can apply a certainty.
We will expect to communicate once we finalize our strategies with our partner.
Okay, Great and we'll keep on waiting thanks.
Thank you yeah.
Ladies and gentlemen, we have reached the end of a question answer session I like to turn the call back to Dr. allow for closing remarks.
Oh, Thank you everyone for joining us this morning.
We're pleased with the execution this quarter and look for up to for watching jewel with suffered updates severe soon.
Please contact us if you have any further questions thinking thank you for joining us in our quarterly earnings call. This morning.
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Thank you. This concludes today's conference. He thank you for your participation you may disconnect your lines at this time.