Q3 2020 AcelRx Pharmaceuticals Inc Earnings Call
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Welcome to the XL expert.
Operator: Welcome to the AcelRx 3rd Quarter 2020 Conference. This call is being webcast live on the events page of the investor section of AcelRx's website, www.acelrx.com. This call is the property of AcelRx, and any recording, reproduction, or transmission of this call without the express written consent of AcelRx is strictly prohibited.
Operator: And a reminder, today's call is being recorded. You may listen to a webcast replay of this call by going to the Investors section of AcelRx's website. I would now like to turn the call over to Raffi Asadorian, AcelRx's Chief Financial Officer. Thank you for joining us this afternoon.
Raffi Mark Asadorian: Earlier today, we announced our third quarter 2020 financial results in a press release. This press release and the slide presentation accompanying this call are available in the Investors section of our website. With me today are Vincent Angotti, our Chief Executive Officer, and Dr. Pam Palmer, our Chief Medical Officer. Before we begin, I'll remind listeners that during this call, we will make forward-looking statements within the meaning of the federal securities laws. These forward-looking statements involve risks and uncertainties regarding the operations and future results of AcelRx. Please refer to our press release in addition to the company's periodic, current, and annual reports filed with the Securities and Exchange Commission for a discussion of the risks associated with such forward-looking investments. I'll now turn the call over to Raffi. Thank you, Raffi, and good afternoon, everyone.
Vincent J. Angotti: I hope you and your families are remaining safe and healthy, and we appreciate you joining our call today. Last quarter, we introduced the four pillars driving our planned revenue growth strategy. Today, I'll update you on the progress made during the third quarter on each of these pillars, which was significant and encouraging to see. In fact, the third quarter was our most successful quarter since the SUVI was approved. We have momentum on all fronts, which we expect to continue as we enter into 2021. As you may recall, our first two pillars, the Department of Defense and specialty markets with partners, require minimal AcelRx commercial infrastructure to support revenue growth.
Today, we'll update you on the progress made during the third quarter on each of these pillars, which was significant and encouraging to see in fact, the third quarter was our most successful quarter since the <unk> was approved.
We have momentum on all fronts, which we expect to continue as we enter into 2021.
As you May recall, our first two pillars, the department of defense and specialty markets with partners require minimal accelerates commercial infrastructure to support revenue growth.
We expect these two pillars to drive earlier revenue growth for <unk> at the hospital and ASC customer growth continues to ramp.
Vincent J. Angotti: We expect these two pillars to drive earlier revenue growth for Dissuvia as hospital and ASC customer growth continues to ramp. Relative to Pillar 1, after about 18 months post-DySuvia approval, demonstrable progress towards military use was finally made when a positive Milestone C review was achieved in April. Since then, in September, we announced that Dysuvia was added to the Joint Deployment Formulary, and in that same month, we were also awarded a $3.6 million U.S. Army contract to purchase Dysuvia for DoD studies. As a reminder, the positive Milestone C review provided for Dysuvia to be included in all the Army sets, kits, and outfits for deployed troops effective in their new fiscal year, which began As such, we expect the initial ordering of the Subia for deployed troops in our fourth quarter.
Relative to pillar one after about 18 months post <unk> approval demonstrable progress towards military use was finally made when a positive milestone C review was achieved in April.
Since then in September we announced that <unk> was added to the joint deployment formulary and in that same months. We were also awarded a three $6 million U S Army contract to purchase to Sue there.
Dodd studying.
As a reminder of the positive milestone C review private provided for <unk> to be included in all the army Serps Kitson outfits for deployed troops effective in their new fiscal year, which began on October 1st.
As such we expect the initial ordering of the Subia for deploy troops and our fourth quarter.
We're waiting an indication from the army unexpected timing and volume of distribute purchases for their new fiscal year.
Vincent J. Angotti: We're awaiting an indication from the Army on the expected timing and volume of DeSuvia purchases for their new fiscal year, and we expect the purchases to be somewhat irregular throughout the year, which can make quarterly revenues in the early stages of the rollout somewhat uneven. The recent addition to the Joint Deployment Formulary extends DSUE's availability to all branches of the Department of Defense and was an important step forward in gaining broader awareness and acceptance as a standard for managing acute pain across the military. For reference, we estimate the Army represents about 65% of all deployed troops.
And we expect purchases to be somewhat irregular throughout the year, which can make quarterly revenues in the early stages of the rollout somewhat uneven.
The recent addition to the joint deployment formulary extends to <unk> availability to all branches of the department of Defense and was an important step forward and gaining broader awareness and acceptance as a standard for managing acute pain across the military.
For reference we estimate the army represents about 65% of all deployed troops.
Separately as mentioned in September the duty awarded accelerates a three 6 million dollar contract for the purchase of the studio.
Vincent J. Angotti: As mentioned, in September, the DoD awarded AcelRx a $3.6 million contract for the purchase of Vesuvius. The contract covers the purchases for up to four years and will be used for studying the use of Suvia across multiple trauma situations. We're looking forward to continued work with the DoD to advance CVS training and use to become a new standard of care across the military. Our second pillar, accessing large, non-core specialty markets through partnerships, is similar to the first pillar in that it requires minimal AcelRx commercial investment.
The contract covers the purchases for up to four years will be used for studying the use of the sulya across multiple trauma situations.
We're looking forward to continued worked with a duty to advanced the Cvs training and use to become a new standard of care across the military.
Our second pillar accessing large non-core specialty markets through partnerships is similar to the first pillar in that it requires minimal accelerates commercial investment.
Vincent J. Angotti: These are large market opportunities, but they are less concentrated than hospitals and ambulatory surgery centers and will be more difficult for our small commercial infrastructure to effectively access. Therefore, we intend to collaborate with companies with larger commercial infrastructures already serving these specific markets, which will benefit both organizations and broaden the availability of DSUVIA to more health care providers. Our first partnership under this pillar was signed in July with Zimmer Biomed for the oral and dental surgery markets. This is a perfect example of how we intend to open up CVS use to other medically supervised settings outside of hospitals and ambulatory surgery centers. Denver Biomet has just completed training of their initial wave of 31 sales representatives for a soft fourth quarter launch, with a broader rollout to their 250-plus dental division sales representatives expected next year.
These are large market opportunities, but left concentrated in the hospitals and ambulatory surgery centers and will be more difficult for our small commercial infrastructure to effectively access.
Therefore, we tend to collaborate with companies with larger commercial infrastructures already serving the specific markets that will benefit both organizations and broaden the availability of the Sylvia to more healthcare providers.
Vincent J. Angotti: We're very excited for them to begin initiating sales calls to inform their customers about the benefits of the Suvia. This is a large market segment of greater than 7 million surgeries with an unmet need that Dysuvia can address. Examples of other specialty markets we believe may also have potential opportunities for partnerships are plastic surgery, emergency medical services, and ENT physicians. And similar to how we created initial demand in the oral and dental surgery market, which led to a collaboration with Zimmer Biomap. We're approaching the plastic surgery market by running a small pilot with a couple of virtual sales representatives focused on office-based plastic surgery. We've found that this market makes adoption decisions quickly, and thus far, the pilot is productive.
Well a couple of virtual sales representatives focused on office based plastic surgeries.
We have experienced this market makes adoption decisions quickly and thus far the pilot as productive will will further evaluate its expansion of collaboration opportunity based on the results.
Vincent J. Angotti: We'll further evaluate its expansion or collaboration opportunity based on the results. Meanwhile, our core focus with our internal commercial team remains on hospitals and ambulatory surgery centers. These customers have longer review cycles, and COVID has certainly had an impact on the progress that was being made. However, the third quarter represented our highest end-user demand since the launch of Vesuvio. A significant catalyst for our team has been the publication in August about the real-world use of Dissuvia in perioperative settings by Dr. Twentenstrand. If you haven't listened to our KOL webcast held on October 7th, please go to our website and listen to the archive recording. The significant benefits to patients and the hospital systems are clear. After hearing both Dr. Twenstrand and Dr. Kassebaugh explain their experience with Dysuvia from a patient care Opioid Stewardship and Pharmacoeconomic Perspectives
Our core focus with our internal commercial team remains on the hospitals and ambulatory surgery centers.
These customers have longer review cycles, and cobot has certainly had an impact on the progress that was being made however.
However, the third quarter represented our highest end user demand since the launch of the Sylvia.
A significant catalyst for our team has been the publication in August about the real world use of D'souza, and the Perry operative settings for Dr. Trenton strength.
If you haven't listened to our call webcast held on October 7th. Please go to our website listened to the archive recording.
The significant benefits to the patients and the hospital systems are clear after.
After hearing both Dr. twin strand, and Dr. Casanova explain their experience with the Sylvia from a patient care.
Opioid stewardship and Pharmacoeconomic perspective.
Our commercial team has continued to receive positive feedback from physicians as this data has been introduced to them and even more importantly, as they begin to use to Sylvia.
Vincent J. Angotti: Our commercial team has continued to receive positive feedback from physicians as this data has been introduced to them, and even more importantly, as they begin to use Dysuvia. We see this data as a true momentum changer and are awaiting the release of data from other similar studies, including Dr. Kassabaugh's manuscript that has been submitted for publication. As shared on the KOL call, the results of Dr. Kassabaugh's study are very similar to that of Dr. Twente's study, demonstrating the consistency of Dysuvia's perioperative impact on IV opioid utilization and PACU throughput. Also, we expect data from two investigator-initiated trials at prestigious institutions. Cleveland Clinic and Brigham and Women's Hospital will further support the benefits of Dyslevia compared to the current standards of care.
We see this data as a true momentum changer and are awaiting the release of data from other similar studies, including Dr. Kassebaum's manuscript that has been submitted for publication.
I shared on the capital call. The results of Dr. cast of our study are very similar to that of Dr. twin strands.
Demonstrating the consistency of the Cvs Perry operative impact on Ivy opioid utilization and pack you throughput.
Also we expect data from two investigator initiated trials at prestigious institutions, Cleveland clinic, and Brigham and Women's Hospital will further support the benefits of this year compared to the current standards of care.
Realizing this really is a paradigm shift away from typical IB opioids. We believe continued generation of real world data will be the foundation for distributors adoption.
Vincent J. Angotti: Realizing DSHUVI is a paradigm shift away from typical IV opioids, we believe continued generation of real-world data will be the foundation for DSHUVI's adoption. To that end, we continue to receive strong interest for investigator-initiated trials, including proposed studies, for example, in sickle cell patients presenting to the emergency department, retinal surgery in the elderly, and distubious application in emergency medical services settings. Now, with COVID's impact on the health care system, including delayed formula reviews during the second and third quarters, we shifted our commercial team's focus to a count that had already reviewed and approved Dysuvia for use. To that end, in 3Q, 73% of commercial customers were reordering customers, and greater than 90% of the commercial doses shipped were reorders as well. Both metrics indicate growing comfort with Suvia's use.
To that end, we continue to receive strong interest for investigator initiated trials.
Including proposed studies for example in sickle cell patients presenting to the emergency department retinal surgery, and the idled in the elderly and distributes application and emergency medical services settings.
Now with Covance impact on health care system, including delayed formulary reviews during the second and third quarters, we shifted our commercial team focus to account for that already reviewed and approved distributor for use.
To that end in Threeq Q, 73% of commercial customers were reordering customers and greater than 90% of the commercial doses shipped were reorders as well.
Both metrics indicate growing comfort with distributors use in fact September was our highest end user demand month to date.
Also supporting the growth within the hospital and assay pillar is our recently restructured co promotion agreement with lawyer Pharmaceuticals, we've.
We have a great for low Hoyt, a focus on nine separate and distinct territories, which they will promote the Sylvia.
Notably these nine territories are occupied by La Hoya reps, who were previously trained under the prior Copromotion agreement and do not overlap existing accelerates territories.
Vincent J. Angotti: In fact, September was our highest end-user demand month to date. Also supporting the growth within the hospital and ASC pillar is our recently restructured co-promotion agreement with La Jolla Pharmaceuticals. We've agreed for La Jolla to focus on nine separate and distinct territories in which they'll promote the SUVIA. Notably, these nine territories are occupied by La Jolla reps who were previously trained under the prior co-promotion agreement and do not overlap existing AcelRx territories.
Our fourth and final pillar for revenue growth is business development and we continue to aggressively explore the addition of products to add to our portfolio to support the productivity of our commercial resources.
I'll now hand, the call over to Rafi to take you through the financials.
Thank you Vince we continue to remain prudent with our cash as we launch to Sylvia we.
We ended the third quarter with $43 million in cash and short term investments, which is consistent with the second quarter.
Third quarter was our best product sales quarter since to Sylvia's launch revenues for the third quarter of 2020 or $1.4 million, driven primarily by product sales of $1.3 million.
Raffi Mark Asadorian: Our fourth and final pillar for revenue growth is business development, and we continue to aggressively explore the addition of products to add to our portfolio to support the productivity of our commercial resources. I'll now hand the call over to Raffi to take you through the financials. Thank you, Vince. We continue to remain prudent with our cash as we launch Dissuvia. We ended the third quarter with $43 million in cash and short-term investments, which is consistent with the second quarter.
This compares to zero point $3 million of product sales in the second quarter of this year.
Gross profit was negative for the quarter, primarily as a result of the revenues not exceeding our fixed overhead costs, plus zero point $2 million of a reserve.
Short dated inventory that was produced for development purposes prior to approval.
Importantly, once the high volume packaging line is installed and running commercial batches, we will realize a close to 60% reduction in unit costs.
As an update the factory acceptance test of this equipment began in Germany. This week.
Raffi Mark Asadorian: The third quarter was our best product sales quarter since Dissuvia's launch. Revenues for the third quarter of 2020 were $1.4 million, driven primarily by product sales of $1.3 million. This compares to $0.3 million of product sales in the second quarter of this year. Gross profit was negative for the quarter, primarily as a result of revenues not exceeding our fixed overhead costs, plus $0.2 million of a reserve per short-dated inventory that was produced for development purposes prior to approval.
Pending cobot related restrictions our current estimate is for installation at our contract manufacturer to occur at the beginning of next year.
With first commercial batches. After all approvals are received beginning in the first quarter of 2022.
We are continuing to evaluate alternatives to accelerate timing to ensure we are able to meet future demand needs from the DRD and other customers.
Our cash operating expenses or combined R&D and SGN may excluding stock based compensation and depreciation in the third quarter of 2020 was $7.3 million compared with $7.3 million in the second quarter.
We expect the fourth quarter cash operating expenses to remain in the seven and a half to $8 million range.
We continue to focus on investing in the areas that will have the most positive impact on the launch and remain prudent in our overall cash spending.
Raffi Mark Asadorian: Importantly, once the high-volume packaging line is installed and running commercial batches, we will realize a close to 60% reduction in unit costs. As an update, the factory acceptance test of this equipment began in Germany this week. Pending COVID-related restrictions, our current estimate is for installation at our contract manufacturer to occur at the beginning of next year, with first commercial batches after all approvals are received beginning in the first quarter of 2022. We are continuing to evaluate alternatives to accelerate timing to ensure we are able to meet future demand needs from the DoD and other customers. Cash Operating Expenses, or combined R&D and SG&A, excluding stock-based compensation and depreciation, in the third quarter of 2020 was $7.3 million, compared with $7.3 million in the second quarter. We expect the fourth quarter cash operating expenses to remain in the $7.5 million to $8 million range.
With that let me turn the call back over to Vince.
Thanks, Rafi, it's certainly been a very productive third quarter laying the foundation for future success.
I'd now like to open the lineup for any questions you might have.
Operator.
We will now begin the question and answer session.
I ask a question you May press is star then one on your telephone keypad.
Are you seeing speakerphone, please pick up your handset before pressing the keys.
Charlie Your question. Please press Star then two.
At this time, we will pause momentarily to assemble our roster.
Our first question comes from Michael Higgins from Ladenburg.
Thanks, Thanks, guys. Thanks for taking my questions first one comes from the and there you had mentioned the manufacturing of the started now.
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Just trying to get a sense for how the supply is matching up with the potential ordering and the deal the it looks like you'll have.
Vincent J. Angotti: We continue to focus on investing in the areas that will have the most positive impact on the launch and remain prudent in our overall cash fund. With that, I will turn the call back over to Vincent. Thanks Raffi. It's certainly been a very productive third quarter, laying the foundation for future success. And I'd like to open the line up for any questions you might have. Operator? We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you are using a speaker...
Greater economies of scale than shipping to the customers in Q2 might that affect the ordering and shipments or do you think you have enough product to meet the needs of the beauty in the next six months or so.
Okay.
Yes, Michael.
And this add in but we do have enough product on hand, and are able to produce sufficient amount.
Of products on a monthly basis to meet what we expect the demand to be again, we are still waiting for.
Operator: Please pick up your handset before pressing. To withdraw your question, please press star then... At this time, we'll pause momentarily to assemble our... Our first question comes from Michael Higgins. Let them burn.
Input from the DMD on what the expected purchases will be this year.
But in our semi automated process, we believe that we'll be able to to meet that demand.
Unnamed Speaker: Thanks. Thanks, guys. Thanks for taking the questions. The first one comes from V. And there, Raffi, you had mentioned the manufacturing that was starting up. Just trying to get a sense for how the supply is matching up with the potential orders from the DoD. It looks like you'll have greater economies of scale and shipping to the customers in Q2. Might that affect the ordering and shipment, or do you think you have enough product to meet the needs of the DoD in the next six months? Yeah, Michael.
And just to add I mean, we've we've encountered delays in.
From Covidien to getting that equipment end, but we've we've been able to get get that testing done just just this week it started which we've accelerated.
And hopefully we can continue to to find ways to get that accelerate and get it into the contract manufacturer.
And start producing commercial batches at a significantly reduced cost.
Yes sounds like it.
And then second question if I could is on.
Unnamed Speaker: But we do have enough product on hand and are able to produce a sufficient amount of product on a monthly basis to meet what we expect the demand to be. Again, we are still waiting for input from the DoD on what the expected purchases will be this year. But in our semi-automated process, we believe that we'll be able to meet that demand. And just to add, I mean, we've encountered delays from COVID in getting that equipment in, but we've been able to get that testing done. Just this week it started, which we've accelerated.
How do you decide.
Outside the hospitals.
Actually.
Rephrase that inside the hospitals, Macy's, how do you pick, which T.I.s, which investigators to go with your you've mentioned plastic surgery input.
Which.
Which toxin with hospitals to Green light.
Around some more Pharmacoeconomic studies.
Well I think it's important for the.
Investigator initiated trials the investigator actually comes to us.
Unnamed Speaker: And hopefully, we can continue to find ways to accelerate that, get it into the contract manufacturer, and start producing commercial batches at a significantly reduced cost. Yeah, sounds like it.
So a lot of them.
You will hear about it is from a colleague.
For their own personal insulin you'll get an idea for a novel way to study it or to use it and then Neal approaches for any sort of investigator initiated trials.
Unnamed Speaker: And then the second question, if I could, is how you decide, you know, outside the AFB and hospitals? Actually, let me rephrase that. Inside the hospitals and AACs, how do you pick which... PIs, which investigators to go with? You've mentioned plastic surgery, but you know, which doctors and which hospitals would you agree to run some more pharmacoeconomic studies with?
I think it's something we'd realize that are over.
Our first couple I mean, these are clearly high profile institutions that approached us in Cleveland clinic in Brigham and women's based off their interest in distributor.
Right any update for us on timing as to when we may see.
More studies in more feedback was we had this summer.
Thanks.
You know I think.
Unnamed Speaker: Well, I think it's important for the investigator-initiated trials; the investigator actually comes to us. So, a lot of them, you know, we hear about the suit they've used from a colleague or their own personal use, and then they get an idea for a novel way to study it or use it, and then they'll approach us for any sort of investigator-initiated trial. I think it's important to realize that of our first couple, I mean, these are clearly high-profile institutions that approached us at the Cleveland Clinic and Brigham and Women's based on their interest in Dysuvia. Right. Any update for us on timing as to when we may see more studies and more feedback like we had this summer? I think COVID has hit some of the manuscripts and the journals a bit hard, so we're hoping to get a couple more papers coming out in the next few months. But it seems like there's been a little bit of a slowdown with COVID, but we are excited about some upcoming manuscripts. That was good. I appreciate it. I'll just get back in the queue.
Thanks, Colby just hit some of that manuscripts in the journal is a bit hard. So we are hoping to get.
Well just a couple of more papers coming out in the next few months, but there is it seems like there has been a little bit of a slowdown.
With with Kobe, but we are excited about.
Upcoming manuscripts.
Understood I appreciate it ill jump back in the queue. Thanks, guys.
Thanks, Mike.
Our next question comes from Steven Hi from Credit Suisse.
Unnamed Speaker: Thanks, guys. Thanks, Mike. Our next question comes from Steven Seidlman from Credit. Hey, guys. Thank you for taking the questions. So.
Unnamed Speaker: I'm looking at kind of opportunities outside of the hospital, outside of the Army. I know you're working with Zimmer Biomed for a... Any other kind of spaces where you could work? I hope that this interview would be best suited to you. And then when you think about profitability and how the trajectory of your P&L looks... When do we start to see profitability? I guess, what level of revenue do you need to see to kind of outpace your expenses? And are you on track for that to happen maybe next year? Or is it something later on?
Pamela Pierce Palmer: Thanks, Evan. I'm going to turn the first part over to Pam on which types of segments we think outside of hospitals and ASCs might be most appropriate. We mentioned plastics, and we mentioned D&T, but Pam can elaborate further as to why this cascade as things are moving from hospitals and ASCs to these office-based surgeries. Yeah, so I mean, as we've seen over the past, you know, 20 years, there's been a huge shift from hospital-based operations to ASCs. So now we know total hips, total knees, spine surgeries, etc. are all being done in ASCs. The more minor procedures that were occurring in the ASCs are now being pushed into procedural suites, and specifically, plastic surgery is one of them.
William Liposuction for example done in a plastic surgeons office in his procedural sweet because there's not met exec team, there's not a panty decision, making team there it's literally one physician.
We found that that adoption there is occurring much more rapidly. So that's one area. We're excited about similarly E N T surgeon, so ear nose and throat surgeons.
Also have minor procedures that they do that they are now starting to do more and more in their own procedural office also the certain get paid more money in fact, they have a higher profiles on when they do this in their office versus when they're doing it in ASC.
Pamela Pierce Palmer: That's for a couple of reasons. Number one, because they can be safely done there, but also because it's much less expensive. This is often a cash-paying population, so if they only have to pay as a patient for the surgery and not for the expensive surgery center and an anesthesiologist, they would rather have their low-volume liposuction, for example, done in a plastic surgeon's office in his procedural suite. Because there's not a med exec team, there's not a P&T decision-making It's literally one physician. We found that adoption there is occurring much more rapidly, so that's one area we're excited about. Similarly, ENT surgeons, so ear, nose, and throat surgeons, also have minor procedures that they do that they're now starting to do more and more in their own procedural offices.
Pamela Pierce Palmer: Also, the surgeons get paid more money, in fact. They have higher professional fees when they do this in their office versus when they're doing it in an ASC. So these are just two examples. Oral surgery, we've already talked about with Zimmer. All of these are procedures that are done in procedural suites, usually outside of an ASC, where they really find pain management a challenge, and that's where Dysubia comes into
Vincent J. Angotti: And I'll just add one comment, that they'll all qualify under REMS, so we'll continue to evaluate each of those. From the finance perspective, Raffi? Yeah.
Raffi Mark Asadorian: Hi Alan. In terms of, we've not given sales guidance, as you know, in terms of the break, yeah, in terms of trying to get to like a positive EBITDA and the timing there, you can take, you know, our $7.5 to $8 million of cash operating expenses, and we don't expect significant increases on that in the near term. You know, maybe as new territories get opened up, as new hospital systems come online a little bit, but, you know, that's probably going to work probably, and we haven't given all that guidance, but you can use that $7.5 to $8 million as a proxy. As we also bring on the high-volume line and first quarter of 2022, we hope we're running commercial batches under that, that the cost, the margin, and the cost In terms of cashflow break-even, we've said publicly that by Q4, 2022, we will be cashflow positive on that, including debt service and everything. Okay, cool.
This concludes our question and answer session I would like to turn the conference back over to Vincent Gardy for any closing remarks.
Yeah. Thank you all for joining us on the call today and for your continued support of accelerates with.
Our four pillar diversified revenue strategy, we feel we're really well positioned for future growth, while being again mindful of expenses as Rafi just mentioned.
So we look forward to sharing more developments in the future. Please stay safe and take care.
Unnamed Speaker: Thank you for the call, Arb. Thanks, everyone. This concludes our question and answer session. I would like to turn it over to you. Go over to Vincent Angotti for any clothing...
Vincent J. Angotti: Thank you all for joining us on the call today and for your continued support of AcelRx. With our four-pillar diversified revenue strategy, we feel we're really well positioned for future growth while being, again, mindful of expenses, as Raffi just mentioned. So we look forward to sharing more developments in the future. Please stay safe and take care. The conference has now concluded. Thank you for attending today's presentation. You may disconnect your... The Bulletproof Executive 2013, [inaudible] The Ultimate Parody Site!