Q2 2020 Kala Pharmaceuticals Inc Earnings Call

Good morning, and welcome to color Pharmaceuticals second quarter 2020 financial results Conference call. At this time all participants on the listen only mode. Following management's prepared remarks acuity session will be held as a reminder, this call is being recorded.

I would now like to turn the call over to Iran. John Thomas sworn senior Vice President strategy for California Citigroup. Please proceed.

Thank you operator, and thank you all for participating in today's call.

Joining me from the company are Mark I Wiki, Chairman, President and Chief Executive Officer taught days more Chief operating Officer, Merryman, Chief Financial Officer, Kim Brown, Chief Medical Officer, and I'm in Chen Chief Scientific Officer.

Today's call is being webcast live.

Webcast link it can be found in the investors in media section of our website at Www Dot call Rx Dot com.

During this call we will be referring to non-GAAP financial measures, which are not prepared in accordance with generally accepted accounting principles.

A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures is available in our press release issued today, which can also be found on our website.

This call, we will make certain comments about college future expectations plans and prospects that are forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.

These statements will include observations associated with our commercialization of in belt is statements regarding the regulatory and commercial plans for I soup is the sufficiency of our cash resources and projected revenue.

These statements are based on the beliefs and expectations of management as of this conference call.

Actual results may differ materially from our expectations. The company undertakes no obligation to revise or update any statements to reflect events or circumstances. After this conference call.

Investors should carefully read the risks and uncertainties described in today's press release as well as a risk factors, which identifies specific factors that may cause actual results or events to differ materially from those described in the forward looking statement included in the company's quarterly reports on form 10-Q, and other filings we make with the FCC.

The form 10-Q will be filed with the FCC later today and will be available on our website.

I will now turn the call over to call a CEO Mark I Ricky.

Thank you know Rajan good morning, everyone and thank you for joining US. This morning to review, our second quarter financial results and recent business highlights.

We continue to make strong progress across our business. Despite the uncertainties imposed by the ongoing pandemic.

As a reminder, we announced topline results from the stride three trial of I assume that's our product candidate for the short term treatment of the signs and symptoms related to dry eye disease in early March.

And that study I Subarus achieved statistically significant results for the primary and key secondary endpoints.

Replicating the positive results from earlier studies and addressing the only deficiency noted in the complete response letter received in August 2019.

In which the F.D.A. indicated that positive results from an additional clinical trial or needed to demonstrate efficacy. We're very pleased at less than two months later, we resubmitted, our and D.A. four I subarus to the FDA.

Which the FDA subsequently accepted and confirmed that the Resubmission is a complete class two response to the CRL issued in August 2019, and set a PDUFA goal date of October Thirtyth 2020.

We are preparing across the organization to launch I assume this before the end of the year if approved.

As we've highlighted before we believe a super says the potential to make an immediate impact to the dry eye disease treatment paradigm and become the preferred first line prescription therapy for the short term treatment of the signs and symptoms of dry eye disease.

Over 30 million people in the United States live with dry eye disease.

Which over 17 million have already been diagnosed by an eye care professionals.

Our market research suggests that 80% to 90% of these patients suffer from episodic flares rather than continue with symptoms.

Feedback from eye care professionals suggests that these players are woefully under managed by current therapies.

Based on efficacy and safety data that we have generated from over 2800 patients across four clinical trials. We believe ASU bus has the potential to address the significant unmet need providing rapid and effective relief of both the signs and symptoms of dry eye disease, while also being very well tolerated and convene.

Need to administer.

We're very excited about by service and look forward to delivering this important new option to patients and physicians if approved.

Before handing the call over to Todd to go over commercial update I want to take a moment to recognize all that our team at Carlyle has accomplished despite the ongoing challenges presented by the covert 19 pandemic as we've dealt with the situation I'm very proud of our employees, who have remained focused on the needs of eye care.

Professionals and their patients and have adapted to new ways of working.

There are perseverance has enabled us to continue to deliver on our key corporate goals for 2020, as we work to advance and deltas and lay the groundwork for a potential I assume this approval and launch.

I'd like to now I'll turn it over to Todd.

Thank you Mark and good morning.

I'd like to begin with and deltas are twice daily post surgical ocular story.

The second quarter, there were approximately 21000 prescriptions have been Gulf as reported by Symphony Health, which represents a decrease of approximately 51% compared to the first quarter 2020.

This decrease was due to the impact of the ongoing clone of Iris pen done which was felt most acutely in the month of April.

Total cataract procedures in Q2, 2020 were down 50% compared to Q2 20 my team.

The market did begin to recover in late April states began to allow electric surgical procedures to read commence.

Since then total of adult us prescriptions have achieved strong growth going from 544 prescriptions written during the week ended April 17th to over 3000 prescriptions during the weekend that July 24.

Adulterous weekly prescription volumes are steadily building back towards the pre coated levels.

We are encouraged by the significant recovery, which is also reflected in the most recent month over month data and compares favorably versus the steroid market more broad.

As of July 24, and Gulf is prescriptions were up 12.8% and the most recent four weeks versus prior quarter.

Compared to the branded and generic steroid markets, which were up 4.1 and 3.4% respectively.

And prior to the onset of Coburn 19 pandemic adult is prescriptions were tracking up quarter over quarter, suggesting continued growth trends and strong demand.

We believe the strength of our recovery reflects the strong clinical profile than Gulpers positive reception to indulge us among our target eye care professionals and the effectiveness of the color sales team.

While we suspended substantially all in person interactions with our customers, including visits to physicians offices clinics and hospitals early in the pandemic.

Our salesforce continue to provide support virtually grew both telephone and web based technologies.

We continue to fall recommendations from the U.S. centers for disease control and prevention as well as federal state and local governments.

Slowly been able to return or sales representatives to the field.

As of July one all territories were cleared for in person field activities.

All our representatives had been educated on appropriate local and regional procedures have been provided personal productive equipment and we are conducting daily health screenings of our sales team to ensure both their own and our customer sake.

While we're very encouraged by these trends and believe they bode well for in belt us over the long term, we recognized that the ongoing surge or future surges in covert cadences may result in some states reinstating restrictions on electric procedures or limiting the ability of our salesforce to engage in person, which.

Could again, Empaque and Delta sales.

As we stated last quarter, we continue to expect that the ongoing pandemic will negatively affect full year end deltas revenue.

In recent months, our commercial team has also been busy with launch preparations for I suits.

As we've stated previously many of our call targets when vulcan's overlap with them as Fry service, which will enable us to launch shortly after approval lying initially on our existing 56 sales professionals to target the top drives high prescribers.

Together these prescribers represent about 70% of all dry eye prescriptions.

What we after launch and pending the status of the Cobot 19 pandemic, we will begin expanding our existing salesforce to a total of approximately 100 to 125 Representatives, which we believe will allow us to effectively covered the eye care professionals, who are responsible for about 85% of all dry eye prescriptions.

We're in the process of training our existing reps on the dry eye disease state and in parallel our count director team has begun engaging payers in dry eye disease state discussions.

We plan to leverage these payer discussions to quickly drive clinical presentations and formulary reviews of ice who this yes and when approved.

As Mark noted earlier, we believe that I supers represents a tremendous commercial opportunity what the potential between millions of patients and a total addressable market potential and excessive $8 billion annually.

As we continue to engage in market research with ophthalmologist optometrist and patients in advance of a potential launch we remain steadfast in our belief that I subarus may be suitable for the vast majority of patients with dry eye disease, including those requiring personal line prescription therapy for short term treatment.

And our market research eye care professionals report the potential to prescribed by Subaru over how all of their dry eye patients.

More than 90% of patients indicated they would ask their positions about I see this and hopes of finding a short term treatment that can provide rapid relief from the signs and symptoms of dry eye disease.

We are incredibly excited about the opportunity to deliver on the promise of I see was for these patients.

Next month, we will host a key opinion leader event to speak more specifically to the unmet need in dry eye disease and the opportunity for I assume is.

This event will feature to dry eye expert Dr. Edward Jay Harlan The director Cornea services at Cincinnati Eye Institute and Professor of Ophthalmology at the University of Cincinnati.

And Dr., Kelly K Nichols, Dino and professor at the school of Optometry at the University of Alabama at Birmingham.

Dr Holland, and Dr. Nicholas will speak to the own experiences treating patients with dry disease as well as the need for new therapeutic options.

We will also review our clinical data supporting the potential approval by service and we look forward to sharing additional details on our ongoing launch preparations rice subarus at that time.

I'll now turn the call over to marry to discuss our financial results.

Thanks Todd.

And this discussion of our financial results I will reference certain non-GAAP financial measures. These non-GAAP financial measures exclude stock compensation depreciation and noncash interest expense.

For a full reconciliation of our GAAP to non-GAAP financial measures. Please refer to today's press release, which is available on our website.

As of June Thirtyth, we reported total cash cash equivalents in short term investments at $184.6 million compared to 85.4 million as of December 30, Onest 2018.

This increase reflects proceeds from our underwritten public offering of common stock in March 2020, as well its proceeds from sales of our common stock under our ATM program. During the first part of 2020, partially offset by cash used to fund our operating expenses in the second quarter.

We anticipate that our existing cash cash equivalents in short term investments will enable us to fund operations into at least the second quarter of 2022.

For the second quarter of 2020, we reported and helped US net revenue point $8 million compared to $2.1 million in the second quarter of 29.

Net revenues in the second quarter 2020 were impacted by a reduction in ocular surgeries due to restrictions related to cope with 19, when compared to the same period between 18.

We recognize revenue when product it shipped to distributors.

Cost of product revenues for the second quarter 20, $24.8 million compared to point 4 million for the same period in 2018.

Due to cope with 18 and the restrictions placed on elective procedures earlier this quarter cost of credit revenues for the second quarter 2020 include the reserve of 5 million related to excess inventory.

Non-GAAP cost of product revenues were point $7 million for the second quarter 2020, compared to point $3 million for the same period in 2019.

SDMA expenses for the second quarter of 2020 for $15.3 million compared to 17 million for the same period in 2019.

The decrease was primarily due to lower traveling external expenses due to covert 19 as well is in built its launch related expenses, which were incurred in the second quarter, its 2019 and not incurred during the same quarter in 2020.

Non-GAAP SGT expenses were $13.2 million for the second quarter 2020, compared to $15.1 million for the same period in 2019.

R&D expenses for the second quarter of 2020 were $6.1 million compared to $7.1 million for the same period in 2019.

Decrease is primarily due to less spending on straight Dthree. Our recently completed phase three trials by stupid as we announced topline results early this year, partially offset by an increase in cost associated with the manufacturing if I see this units prior to commercial launch.

Non-GAAP R&D expenses were $5.4 million for the quarter ended June Thirtyth 2020, compared to $6.2 million for the same period in 2018.

Loss from operations for the second quarter, 2020 was $21.3 million compared to 22.4 million for the same period in 2018.

Non-GAAP operating loss was $18.6 million for the second quarter 2020, compared to 19.6 million for the same period in 2018.

Net loss for the second quarter 2020 was $23.3 million for 42 cents per share compared to a net loss of 23.8 million were 70 cents per share for the same period in 2018.

Non-GAAP net loss was $20.1 million for the second quarter 2020, compared to $20.7 million for the same period in 2019.

Please refer to today's press release for the weighted average number of shares used in the calculation of our net loss per share for each of the quarterly periods discussed.

Well, we've been encouraged with the prescription recovery that we've experienced since the end of last quarter. We are still unable to estimate the length and severity of this pandemic and thus cannot specifically measure the impact on our financial results for the full year. So we expect that it will continue to have had a negative impact on indatus prescriptions and full year net revenue.

That concludes our prepared remarks for today I will now pass the call over to the operator for questions.

Thank you as a reminder to ask a question you will need to press Star then one on your touched on telephone to withdraw your question from the Q. Please press the pound key placed and Bible, we compile the culinary roster.

Our first question comes from Christopher Neyer with JP Morgan. Your line is now open.

Good morning, Thanks for the questions our personal gone the plan Salesforce expansion for.

Potential I see this watch.

Our corporate related disruptions limitations on face to face interactions with eye care professionals impacting the size of the timing of your plans to add sales reps if at all and more broadly for the existing Salesforce. How are you thinking about productivity levels the incentives.

After the virtual interaction versus the traditional in person face to face visits.

And secondly on upcoming analyst and Investor Day could you maybe touch on how did the it came down pretty event in the key topics are helping to address ahead of the potential I see this launch thanks so much.

Todd you won't take the first part of that question, maybe interaction you can take the second part.

Sure happy to do so and good morning, Chris. So you know the way I would describe our Salesforce plan is we've built a very flexible and adaptable plan in order to be able to respond to any going on with a pandemic on as we head into the fall and winter flu season.

As you know we've got an existing sales for specialty sales force of 56, ophthalmologists Ophthalmology representatives that are highly experienced and we've actually already begun their disease state training.

So that they are coming up to speed on dry eyes, we will be in a position to launch soon after approval that existing sales force.

The currently covers about 7000 is 7500 eye care professionals of which nearly 100% of them are very important dry eye targets. So we'll be in a position to launch.

I see was pretty quickly to the eye care professionals that represent about 70% of all dry eye prescriptions.

We then as we have stated have a plan to ultimately grow the salesforce to somewhere between 100 125, representing the sum total we're still finalizing those members who work do salesforce sizing and structure and we've got plans that could be everything from look at the Pandemics really bad this winter and weren't another shutdown.

We could initially launched with just the 56, including if they have to launch the product virtual promotion.

We could take a phased approach depending if we had some offices opened in summer close where maybe we don't go straight to the 101 25, but.

Maybe we goes you know some portion of the way the era that bring on the remaining salesforce once things start to clear up a bit or things are in really good shape as they are right now and we have access to most of our offices, we have the ability to higher all the representatives at once and have them in place I would think of.

Got it sort of late this year early next.

So one of flexibility in the playing Chris depending on the situation that we're dealing marcus going into the fall and winter.

But your second question I think was in relation to perhaps ability to promote virtually if I understood correctly.

We have a full suite of virtual tactics in place for adult us during the shutdowns that occurred this spring.

The team continues to investigate best practices that we've seen across industry for additional potential tactics.

These include everything from Salesforce interactions with eye care professionals to peer to peer programming.

To virtual sample and so we feel really confident about our abilities to promote.

Virtually as we expect that will likely be from portion of the overall promotional mix is launching I suit us in the fall.

And then Roger you want to talk a little bit about the care all of that.

Absolutely. So the morning, Chris So we will be hosting it came relevant on September 17, and as Todd mentioned, we ought to be top.

Dry experts in the country.

Offering their views of.

That need.

On how I see which fits into that unmet need and how it could potentially change the treatment paradigm for dry eye disease today.

Also in the mid teen is conducting.

A lot of work right now that's specific thoughts is anyone looking right now the background to.

Planning for the launch of I assume business. So we'll have an update on that.

Thank you very much.

Thank you. Our next question comes from Kent Mall with Jefferies. Your line is now open.

Hi, This is kit on on Colombia things so much for taking my question.

I actually have several questions. If I may my first question is I'm wondering if you have any pay it discussions for IC this and what kind of feedback that you get some dare.

My second question is what kind of rebate rate do you expect from I see this would it be similar to Infat us.

Oh and my last question is regarding status.

Is there currently any off label use of that is enjoying I think.

Hi, Good morning, I'm not just Oh this is Todd I'm happy to jump in.

So.

You're not sure I heard your second question, if you could repeat that when again, the seismic truck and go through all of them for you.

Sure.

Second question is regarding the rebate wait.

For I see this.

Similar to Yep Yep. Thank you so to answer your first question, we have begun payer discussions.

That we're having disease state discussions right now for our account directors on obviously no product discussions ahead of an approval.

And so those conversations are going quite well is.

We're talking to payers about near the knee pretty short term treatment as there are currently no left in your prove short term treatment for the signs and symptoms of dry eye disease.

We've also been a lot of market researcher payers and have received very positive feedback about the product profile.

I see there's been about its place in therapy.

So we feel really really good about that.

Bars pricing in Rebating, we've not provided any guidance on that those conversations are actually still ongoing and we're doing our work determine ultimately what the list price in rebates required will be.

What I would tell you is more to come on that in the future.

And is there another question there.

Regarding in South Africa, or can it be use for off label.

Right.

The vast majority of use for adult this is all for her post aka the surgery remember we have a broad label that covers although our phase three studies were done in cataract surgery. The label is broad and covers all.

Those documents surgery treatment of pain and inflammation.

We believe from from the data that we look at that 80, 590% of all prescriptions for adults are being used for that specific indication.

The maybe a little bit of off label use put very very little.

Got it thank you.

Thank you. Our next question comes from Yi Chen with H.C. Wainwright. Your line is now open.

Thank you and good morning.

Could you. Please come about the current geographic distribution of Arcadis surgery volumes and Colby 19 cost.

So just in Copenhagen, hospice, such as California, Texas, and Florida versus.

Yes, there is that on the longer hot spots, such as New York State.

Hey, this is Todd I'm happy to answer that question look certainly, we do see sort of fluctuations in procedures and prescription volumes uncertain.

Regions based on if they become hot spots or you see a spike.

Most of those areas don't have not shut down elective procedures. There are few areas that have done.

But even the hot spots, where we're seeing.

Like in the number of reported are diagnosed cases of coated.

At this point most of them have continued to allow the electric procedures to occur.

In summary varies maybe patients are choosing not to have the procedure conducted at this time.

And like I said, it is causing some small fluctuations.

But for the most part.

The markets look like they are continuing to recover the biggest impact obviously would be.

Local governments got to a point in certain regions of the country that they chose to defer elective procedures or not or not or cannot allow those elective procedures to continue to occur for some period of time, but for the most part that is not currently the case.

Thank you and do you believe ophthalmologists offices have had established protocols to remain open in the upcoming fall winter season, if a second wave hits.

Yes, Jim you would I would say is I think that's going to be largely driven by decisions made by local state governments right.

Yes.

Well I believe from what we're hearing that if the ophthalmologists offices are allowed to remain open then that's their plan a new continued to conduct.

These archivists surgeries, if they are forced to shutdown oh here at that point.

They would not be open for some period of time, we did see what the shutdowns that occurred this past spring that there was a large number of these surgeries and it will quickly rescheduled once they were allowed to recommence.

Surgical procedures.

So a big growth in the market for both adult us as well as all the other post talking about products.

Got it my last question is was to commercialized products on the market is there a plan to add additional pipeline candidates.

Hey, it's mark.

We we are continuing to advance some early stage programs that are in our own pipeline as well as you know thinking about additional products that.

Could become either part of the product pipeline or.

Promoted products. So we are continually.

Looking at options on the outside that would be a good strategic fit for us long term.

Okay got it thank you.

Thank you. Our next question comes from France, While Brazil ball with Oppenheimer. Your line is now open.

Hey, Thanks for taking the questions just wondering with the cobot situation right now is it possible that docs more than ever be more interested with products that they are little more used to like envelop this versus newer products that might be.

Different.

Method of views kinda like an implant or whatnot.

Kim don't really.

Yeah go ahead.

This is Todd I'll jump in on just what we're hearing from our interactions with customers and then in the perhaps Kim can can chime in as well.

You know, it's a really good thought.

We have not fall this closely what's going on this past quarter with some of the other insert products.

I will tell you is not young adult US is continues to be very very well received.

And we have seen in deltas has the growth to them deltas has shown sense. These procedure elective procedures have been allowed to recommence has outpaced all what the products in the markets. So you know we do know that we get very positive feedback on the product profile can belkacem and eye care professionals report, having really really good.

Results in their patients and I think as elective procedures have been allowed to recommend to the U.S. the growth rate that we've seen with which in Gulf is prescriptions come back had been indicative of that.

Kim I don't know if you would add anything else, yes, yes, I think you know what our discussions with the.

I care professionals about the profile of by service in particular.

The safety in the efficacy results I had been very.

Impressed by that and very open to using that so I don't think when we come to market with the IC bus that there will be significant reluctance, we will be the first product yet the indications short term.

Use.

The treatment of dry and will be the first corticosteroid gets approved.

And that drives space. So I don't sets that there's going to be a great deal of reluctance because of the cold situation the trying trialing and eventually using.

I see this on a regular basis.

Okay, great evolve thinking Oh, sorry go ahead.

I'm just going to say I think we've also heard that.

Some of the things that are happening now with telemedicine and eye care professionals is that dry eye is one of those conditions that lends itself to a bit more to kind of hello or remote medicine.

That's interesting.

Andy in terms of your market research can you remind us where you think you might get the most patients is it at a population here for dry is so big but do you think most of them are the patients there might be just using over the counter products or is it more of a trend that transitioning idea of using this.

Acute therapy before going into maybe a chronic therapy has stepped through.

Yeah, I think we'll probably get business across the board, which may be a matter of time right I think in the short term there a lot of patients out there that have tried.

Otcs, many times and had been in and out of various eye care professionals offices. So I think like a lot of products that come on to the market in a reasonably established condition will probably get some more of those.

Moderate to severe patients that have already been treated with other things in.

The Doctor will try I subarus, there or not care professional I should say, which I assume this as well as new patients coming in that.

They maybe have been on those otcs.

We really believe the profile lines up well as kind of a first line prescription therapy.

To treat the episodes in the more mild to moderate patients have these episodes rather than typically showing up with significant continue or symptoms and we know that the profile.

Lines up well for eye care professionals, who works very quickly treat signs and symptoms and she meaningful corneal healing.

Within the first couple of weeks so.

I think largely over time.

We'll probably get more and more kind of first line patients coming off otcs, but certainly as we launch you know we're likely to get some either treatment failures or or patients that had been in I kept professional offices for quite awhile.

Okay, Great and then just lastly, if I could ask one more here in terms of the sales reps.

And the launch efforts I know, there's a lot of moving parts right now with everything that's going on but from the existing 56, when you're thinking about adding on to get to 101 25 is this something that you're looking at hiring now and it's kind of like a higher pending on approval or is this something that you will go into.

Trying to hire.

Well it after the approval and one's kind of at least you give an extra product in the bag at the current 56 reps yet.

It's a great question we have.

In saying that.

We'll do some of the preparation work. So it's possible that you know in the next couple of months, we may start to interview for positions.

But I think right now, where we said we're likely to.

I'm, not actually higher or bring on the new sales representatives.

Until you know we have.

The approval.

So I think when do a lot of the work.

We intend to higher really experienced sales professionals and believe that on the on the back side of hiring training and ramp up will be reasonably.

Quick so.

Yeah, we're getting close but for us it just seems prudent to to make sure we security approval.

Okay, great. Thank you look forward to the K will be.

Hi.

Thank you and as a reminder to ask a question you will need to press Star then one on your touched on telephone to withdraw your question from the Q. Please press the pound key.

Our next question comes from to Zeena model with Bank of America. Your line is now open.

Hi, a couple of questions for Todd if I may.

Hi can you just give us an idea is starting to your market Theater research.

Okay. Thank you guys know throw all came home.

Well, we've also possible.

Yes sure. Good morning is in no. So from our market research. We believed that the these patients are visiting their eye care professionals on average two or three times a year.

The frequency of visits seem to be tied somewhat to the corrector Piper correctly lands. The patient has if it weren't corrective lenses. So for example during contacts you visit your eye care professional more often can be up to three times per year.

Also interesting from our research about 42% of the office visits are tied to a dry cooling or so it may not only being the primary reason for the offices it.

But while that patients in there.

Flare up of their dry eye disease is one of these issues, it's being discussed the eye care professionals and that's really why we feel strongly that we're not going to need a bit direct to consumer campaign launching the product certainly we'll have a presence online with what I would call sort of more direct to patient efforts when patients are seeking information for dry but we.

No that 17 million these patients already diagnosed.

Visit their eye care professional two to three times, a year and nearly half the time that they're in their you're discussing a flare up of their dry eye disease. So.

Okay.

Okay. So.

Well I'm wondering theme, though.

Rather than.

Of course, all the acquisitions, although control all the big we all have gone down more or law and one other.

Well the idle.

No I don't believe so on a proportion.

Sort of proportionately, obviously overall office visits were down across therapeutic areas and across specialties. During the dependent shutdown interestingly enough and what Mark said earlier is that we've heard from eye care professionals that the biggest use one of the biggest uses a telemedicine. They had was in fact for dry eye disease, and we certainly have had a number.

Provide care professionals, particularly the ophthalmologists, who feel like Tele medicine can continue to play very important role in the future.

For their patients who dry.

And we'll be able bodied no.

Meaning when you include.

Well.

Kupol medicine.

During the one.

Yes, it's a really good question I don't know about new diagnosis, but again there are 17 million currently diagnosed patients and yes, we know that a big part of the discussions.

They're dry eye discussions with the user telemedicine was about flare ups that the patients were experiencing.

And again that comes from freight feedback from a number of advisory boards that we've done virtual advisory boards during the pandemic.

Okay, well located on occasion calls, we'll manage all across multiple.

Homology.

No.

I don't know when a patient basis I know on a prescription basis.

Probably about 55% of all dry eye prescriptions are generated by ophthalmologist and around 45% by optometrist.

So not quite a even split but close to.

And well off almost T mobile popcorn, which will enable pool.

On call. Many formula business, you know on ophthalmology Col. One woman has you know storefronts in the then you know we're within you know I care centers when I'm. All for example, and I'm just wondering.

Geographically.

There's been any kind of observation, we enable about apartments.

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Yes, I would say that are optometrists to have large dry eye practice. This they certainly are using tele medicine.

You know often the sort of optometry practice that you're describing storefronts in a mall or not really the big dry eye optometrist, they're mostly their businesses, mostly corrective lenses.

There's a group of optometrist and so think of it theres no tens of thousands of optometrist and the in the U.S., but it's probably.

Well less than 10000 that actually have what I would describe a significant dry eye practices.

I would stress is one of the biggest if not the biggest components of their practice.

As I said those that have trying to kind of businesses. Many have opened up dry eye clinics.

Certainly also using telemedicine the way the ophthalmologist star.

Great. Thank you Paul.

Sure. Thank you.

Thank you and our next question comes from Liana Moussatos with Wedbush Securities.

Your line is now open.

Good morning, guys. This is andreas improve liana among most of our questions for and Gulf Coast reserves have been asked.

So just maybe you can provide some color on.

He be the pipeline TPR threefive in retinal diseases, where do you guys going to provide.

Some color.

For the development. Thank you.

Can you want to take that.

Sure, where you know we're doing ongoing studies, both with that and with our new anti inflammatory programming.

Well now that we're.

Okay.

Having filed the India and getting preparation for launch we're going to be having a sort of a comprehensive.

Evaluation of our pipeline and have a move forward and looking at both our internal pipeline products and some BD opportunities that we'd look look at so we don't have an update today, but we hope to in the coming months.

No no.

Yeah, I get about indication.

You guys might be going after you never goes back.

Yes.

And you know if it is still a logical approach for treating those diseases.

It is likely would be the main indication should we go forward be one of those two.

Okay excellent. Thank you guys okay.

Thank you and I'm showing no further questions in the queue at this time.

I'd like to turn the call back to Mark Iwaki.

For closing remarks.

Well, thanks to everyone for participating this morning, we continue to be very pleased.

With the progress that we're able to make given the situation with coded having prescriptions begin rebounded significantly with in Beltre sand, we look forward to.

Hopefully an approval of I assume this soon and.

We will update everyone as soon as we have more information. So thank you very much for your time today.

Ladies and gentlemen, thank you for your participation on today's conference. This does conclude your program and you may now disconnect.

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