Q3 2020 electroCore, Inc. Earnings Call
Greetings and welcome to Electric Corps third quarter 2020 earnings Conference call.
At this time all participants are in a listen only mode.
A question and answer session will follow the formal.
Presentation.
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As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host Hans that's true with lifestyle advisors. Thank you you may begin.
Thank you operator, and thank you all for it.
Dissipating in todays call joining me are Dan Goldberger, Chief Executive Officer, and Brian Posner, Chief Financial Officer.
Dr., Peter Stott, Cellectra course, Chief Medical officer will be available for queuing day.
Earlier today electric <unk> released results for the quarter ended September Thirtyth Twentytwenty, a copy of the press releases avail.
Well on the company's website.
Before we begin I'd like to remind you that management will make statements. During this call that include forward looking statements within the meaning of the federal Securities laws, which are made pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1995.
Any statements.
And in this call that are not statements of historical facts should be deemed to be forward looking statements.
All forward looking statements, including without limitation, our examination of the operating trends and our future financial expectations are based on the company's current estimates and various assumptions. These statements involve material.
Until risks and uncertainties that could cause actual results or events to differ materially from those anticipated or implied by these forward looking statements.
Accordingly, you should not place undue reliance on these statements for a list and description of the risks and uncertainties associated with the company's business. Please see the companys filings with the securities and exchange.
Tranche Commission.
Electric cord disclaims any intention or obligation, except as required by law to update or revise any financial projections or forward looking statements, whether because of new information future events or otherwise. This conference call contains time sensitive information that is accurate only as of the live broadcast.
Today November 12 Twentytwenty.
And with that I'll turn the call over to Dan.
Thanks, Hans Hello.
Everybody and thank you for joining us today.
We're pleased to report record revenue and ongoing reductions in operating expenses and cash burn for the quarter ended September 30.
<unk> 2020.
Brian will cover the financials in detail, but I wanted to begin with a few highlights first we generated total third quarter revenue of approximately $1.1 million.
Presenting an increase of 44% sequentially and 58% over the third.
Third quarter 2019.
We're still in the very early stages of commercializing gamma core noninvasive Vegas nerve stimulation therapy or envy Ns.
We are pleased to see a renewed ability to grow revenue against a backdrop of COVID-19, demonstrating that we are adapting successfully to the.
Normal.
During the third quarter, we saw a resumption of growth in all three of our primary revenue channels.
The Department of Veterans Affairs commercial prescriptions in the United States and in the United Kingdom.
Notably we were able to achieve these results.
While continuing to manage our spending and balance sheet aggressively.
During the third quarter, we used $4.1 million in cash to fund our operations.
We ended the third quarter with cash and cash equivalents of approximately $26 million, which we believe provides substantial runway.
The new resources to support a number of important and potentially value creating milestones.
Turning now to an operational update beginning with our COVID-19 initiatives.
Recall that in July 2020, we announced an FDA emergency use authorization.
Okay or you way.
He said again of course Sapphire TV at home or in a health care setting for the acute treatment of adult patients with known or suspected COVID-19, who are experiencing exacerbation of asthma related dyspnea and reduce their flow and for whom approved drug therapies are not.
Our rating will provide insufficient symptom relief.
Reactive airway disease was among the first areas of research for the company and prior prospective studies on the use of envy Ns to treat asthma symptoms provides strong rationale for this therapy is a cold and treatment.
Upon receiving the.
You are right, we moved quickly to establish multiple access channels for patients to procure the device for $1250 a substantial discount from the $1750 list price.
It is available by prescription throughout our V.A.D. channels to hospitals directly.
Me from the company and through our specialty pharmacy partner Premier specialty pharmacy by attaining a prescription through a patients health care provider.
Or through a tele health council powered by our Tele health partner up script LLC.
Without scripts comprehensive online Tele health platform.
Can can consult with a licensed healthcare provider in real time.
And it's a therapy as deemed appropriate have a gamma course, sapphire CV prescribed and shipped directly to his or her home.
We have set up and online portal for patients to use triple W. dot get gamma core dotcom.
We've taken a number of.
Hey, that's to generate awareness of game of course, Sapphire CV for known or suspected coated patients, but we're still in the early stages of product launch and relatively few prescriptions have been written infill.
That said it is worth noting the media coverage around our eat away has generated an increased interest.
And gamma core for a headache as well.
We've previously announced that two investigator initiated clinical studies were enrolling patients to evaluate and BNS therapy in hospitalized coded patients.
One in Valencia, Spain, and the other in Pittsburgh, Pennsylvania.
These studies known as save your one.
And save your two respectively will measure the safety and efficacy of Gamma course, Sapphire CD plus standard of care versus standard of care alone in patients hospitalized with COVID-19.
Across a broad range of clinical and laboratory endpoints enrollment in the Savior studies has been slower than anticipated. However.
However, with the increased cases around the world enrollment trends have recently accelerated.
At this point I'd like to provide an update on key operating metrics and our individual revenue channels.
During the third quarter 2881, total paid months of therapy, we utilized across our three revenue generating.
Handles versus 2407 in the second quarter.
The federal supply schedule, or FSS, which encompasses the V.A. GPO D and other government and military agencies continues to be our most important revenue channel through.
During the third quarter 68, V.A. Indio de treatment facility.
These purchased gamma core compared to 67 during the second quarter of 2020 and 48 during the third quarter of 2019.
Also during the third quarter of 2020, the company shipped 1571 paid months of therapy pursuant to VA audio d. originating prescriptions compared to 980.
Eight paid months of therapy in the second quarter of 2020 and 553 during the third quarter of 2019.
The 59% sequential increase in paid months of therapy. In Q3 is a testament to our team's ability to be nimble and to adapt to a challenging environment that continues to evolve read.
Revenue from the VA.
India again in the third quarter was $646000 as compared to $415000 for the second quarter and $279000 in the third quarter of 2019.
Also related to the VA.
In September 2020, we announced that the agency has agreed to sponsor.
And demise control clinical trial or RCT of envy Ns in mild traumatic brain injury, or MTV and post traumatic stress disorder or PTSD, but.
The trial is being sponsored by the Department of Veterans Affairs Office of research and development at the Atlanta VA Medical Center.
It will be led by Dr. Douglas Bremner staff physician at the Atlanta Veterans Clinic General mental health unit at the Atlanta, VA Medical Center, and professor of Psychiatry, and behavioral Sciences and radiology at the Emory University School of Medicine.
The study, which is expected to enroll up to 100 vendors.
Our rins is designed to assess the clinical and physiological effects of npls in patients with MTV and PTSD.
The study's primary outcome measures include assessments of the veterans clinical improvement several objective measurements of brain activity and changes in levels of the inflammatory cytokine interleukin six.
Six in response to stress.
MTV PTSD are significant concerns in the VA, particularly among veterans with both conditions.
As we indicated in our September 30 press release announcing the study it's estimated that up to 56% of MTV I patients have co morbid.
Vendor SD and 18% to veterans of the conflicts in Iraq, and Afghanistan present with co morbid MTB PTSD make.
Making the co morbid condition more common than either disorder alone.
There are already exists a body of evidence that provide a strong mechanistic.
Clinical rationale for NV Ns as a potential treatment for MTV and PTSD.
Earlier in the quarter, we announced the publication of a paper entitled Noninvasive vague on their simulation decreases brain activity during trauma scripts in the journal brain stimulation.
Bremner is.
Co author of that paper, which reports on a double blind randomized controlled trial of 90 participants who had experienced trauma do not have the diagnosis of PTSD and highlights the ability of and BNS to decrease this year associated with emotional stress.
We are eager to see the results of this study and we are hopeful that we can make.
As sort of a change in the lives of our veterans.
To further support our via video the initiatives, we announced the hiring of commanders Sylvester steel for the newly created role of Vice President and General manager of our government channels business unit.
As the title implies this role is responsible for driving continued.
He need growth and BNS therapy within the VA and DRG as well as developing new revenue opportunities within government channels come.
I understand brings a wealth of experience, creating and leading complex systems and organizations.
His background includes more than 20 years in the United States Navy, where he served with distinction in a variety of leaders.
Roles, including is commanding officer, or Chief Executive officer of two warships.
USS stout and the USS the Sullivan's.
And as a senior advisor and strategic leader at US, We forces command and Naval Special Warfare Development group.
Needless to say commanders steel has the perfect skills.
Except for this role and we look forward to his contributions.
Turning now to the United Kingdom, and other OE West territories.
During the third quarter of 2020 electric core shipped approximately 1020 paid months of therapy outside of the United States as compared to 938 paid months of therapy during the second quarter of.
2020, and 828 during the third quarter of 2019.
Revenue generated outside the us was $278000 in the third quarter as compared to $247000 in the second quarter of 2020 and $188000 in the third quarter of 2019.
Patients.
Starts continue to be impacted by the cobot pandemic, but we're optimistic that we can sustain growth in both revenue and paid months of therapy in the fourth quarter and entering 2021.
Last month, we announced that gamma core would continue to be reimbursed in England under the NHS innovation and technology payment program or.
IDP for.
For the treatment of cluster headache in adults for an additional six months through March 2021.
The proposed contract includes the option to extend for up to an additional three years through March 31 2024.
The potential contract value is a three year extension option is.
Exercised could be up to approximately 3.6 million pounds or approximately $4.7 million based on the current exchange rate.
Since reimbursement commenced under this program in April 2019, we've built a steady base of users and this extension ensures their continued access to therapy.
Actually for an additional three and a half years.
More than 55000 adults in England suffer from cluster headache, a truly debilitating condition.
With few effective treatment options.
Turning to our commercial prescriptions, we previously announced that we successfully restructured our disk.
Vision channel by eliminating layers and selling through the inventory that had been placed with distributors during 2019, we.
We recognized a small amount of revenue from specialty pharmacy replenishment in June 2020, and we recognized a full three months of replenishment revenue in the quarter ended September 32020.
Commercial replenishment revenue of $112000 in Q3 was a significant contributor to our strong performance in the quarter.
Now that Weve cleaned up the channel the company can once again make investments to grow the commercial prescription business weve.
We started to call on commercial insurers that work through our existing clients.
On track with the pharmacy benefit managers like Cvs and express scripts with the goal of adding and BNS to benefit plans with more covered lives.
In parallel we are working towards providing a pathway through the medical benefit, including our pending application for a unique HCPCS code.
We should have additional.
Remained about the CMS process early next year.
Moving now to a clinical update we previously announced that the premium to trial in migraine prevention was closed early due to the pandemic in March 2020.
At that time, we had 231 patients in the intent to treat group and 113 patients.
And for the modified intent to treat group. This compares to the original enrollment targets of approximately 400 patients in the intent to treat group for a population of approximately 300 in the modified intent to treat group.
We continue to analyze data from the study and are working to present topline findings before the end of the year.
In putting is providing devices and support for several other investigator initiated trials in a variety of indications. Many of these are having difficulty recruiting patients in the short term as the world manages through the pandemic.
These studies allow for the development of novel data and possible additional indications for and BNS without a signal.
Coggan outlay of our financial resources, we will share updates on these programs as they become available.
At this point I'll turn the call over to Brian for review of our financials and other guidance items.
Thanks, Dan.
For the quarter ended September Thirtyth 2020, electrical.
Core reported net sales of $1.081 million as compared to $753000 in the second quarter. This.
This represents a sequential increase of 44% and it's consistent with the guidance that we provided in our October 13, 2020 business update.
The increase.
In revenue compared to the second quarter of 2020 was primarily driven by a rebound in months of therapy shipped to the eight facilities as well as contributions from our commercial channel and the UK that Dan alluded to earlier.
Paid monthly therapy shipped to the BA and DMD increased 50.
The 9% sequentially to 1571 in the third quarter from 988 during the second quarter 2020.
Revenue from the VA and DRG also increased 56% sequentially.
The $646000 in the third quarter from 415.
$1000 in the second quarter.
Paid months of therapy shipped outside the U.S. increased 9% to 1020 in the third quarter 2020 from 938 during the second quarter of 2020.
Revenue from outside the us increased sequentially to $278000.
For the third quarter of 2020 from $247000 in the second quarter of 2020.
Net revenue from the commercial channel was $112000 for the third quarter 2020, as compared to $60000 in the second quarter 2020.
Tony.
Operating expenses for the third quarter of 2020 were approximately 5.2 million down.
Down approximately 54% compared to $11.2 million in the comparable period in 2019.
SGN a expenses declined approximately 43% to $4.6 million in the third quarter of 2012.
From approximately $8.1 million for the comparable period in 2019.
Research and development expenses decreased by approximately 1.7 million or 74% to $600000 in the third quarter of 2020 from $2.3 million in the year ago period.
This reduction is consistent with the company's strategy of significantly reducing its near term investment in R&D.
GAAP net loss for the third quarter of 2020 was $4.5 million.
To a GAAP net loss of $10.7 million in the third quarter of 2019.
Adjusted EBITDA net loss for the third quarter of 2020 was a loss of $3.3 million as compared to an adjusted EBITDA net loss of $8.7 million for the same period in 2019.
The company defines adjusted EBITDA net loss as a GAAP net loss.
Depreciation and amortization income tax benefit.
Stock compensation expense restructuring and other severance related charges.
Legal fees associated with stockholders litigation and total other income and expense.
A reconciliation of GAAP net loss.
Non-GAAP adjusted EBITDA net loss has been provided in the financial statement tables included in our press release this afternoon.
Cash and cash equivalents and marketable securities at September Thirtyth, 2020 totaled approximately $26 million as compared to approximately 24 point.
Good million dollars at December 31, 2019.
Our September Thirtyth 2020 cash balance includes an additional $11.2 million raised in Q3 through our previously announced stock purchase agreement with Lincoln Park capital.
Net cash used for the quarter ended sept.
One of the Thirtyth 2020 was approximately $4.1 billion, excluding proceeds from sales of stock to Lincoln Park capital.
This represents a decrease of $1.1 million or 21%.
From $5.2 million in the second quarter of this year and a decrease of three point.
Tim I million or 46% from $7.6 million in the third quarter of 2019.
The second quarter number excludes cash received from the sale of New Jersey, and all wells and financing activities.
Looking ahead.
For the full year 2020, we expect net revenue to be.
In the range of $3.3 million to $3.5 million, a fourth quarter net cash consumption to be approximately $4 million.
And now I will turn the call back over to Dan.
Thanks, Brian.
We're pleased with our performance during the quarter.
And we achieved all of the milestones that we outlined back in August.
These include one a return to revenue growth in both the DRD annual us channels as well as increased revenue contribution from our us commercial channel.
Two publication of a peer reviewed manuscript exploring envy Ns in new indications.
Such as PTSD in traumatic brain injury.
And three the launch of gamma core Sapphire CV for known or suspected COVID-19 patients.
Looking out over the next 12 months, we're approaching several important data events, including topline data from the premium to trial enrollment updates from both.
Our favorite trials uncovered 19 patients and topline data from the acute stroke trials progressing in Europe.
I also want to point out that our cash balance and runway remain healthy.
With $26 million on the balance sheet and a substantially reduced burn rate. We believe we have the cash runway to achieve.
These milestones and more.
Finally, I want to recognize our dedicated staff for working steadfastly through all of the pandemic disruptions and to thank the healthcare professionals that prescribed gamma core and their patients for their loyal support of gamma core therapy.
So.
We are aware of the untimely passing of Tali Tali zuniga.
Holly passed away in the early hours Sunday October four.
He has been a valued member of our electrical core team since August of 2012.
Our thoughts and prayers are with the family and we greatly appreciate.
Appreciate the support of the electric core community.
At this point I'll.
Ill ask the operator to open the line for questions.
Thank you, ladies and gentlemen, we will now be conducting a question and answer session.
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Our first question comes from the line of Ryan Zimmerman with BTI. Jay. Please proceed with your question.
Hi, good evening and congrats on all the progress in turning the company around.
Maybe if I could start with guidance for a second you are guiding to $3.4 million of mid point.
Implies a sequential step down in revenue in the fourth quarter and Im just wondering what you're seeing is this.
Covert related headwinds is it.
Some conservatism maybe you can just help us think through kind of your guidance and what's giving you kind of that apprehension.
Yes. It is.
It's conservative.
We are seeing coal did ramp up around the country around the world for that matter.
And the.
Through the facilities that are the backbone of our business.
Our be acted as well as just seasonality.
A large portion of our business runs through.
The federal supply systems.
Their year end September Thirtyth and so.
[laughter] that's heights.
A nice tailwind from the year ending in the federal system.
We don't have a whole lot of experience going through the calendar year end holidays, and so Brian and I are.
Just want to be conservative.
The momentum of the business right.
Now halfway through the quarter is faster than that.
But we've got to be realistic about going into this November December holiday.
And what could possibly happen to our headache business, so optimistic about upside, but we want to make sure that.
That we get the right number at.
At this point.
I'm.
Yes, Thats understandable and appreciate the color there.
Turning to the commercial channel, it's kind of this burgeoning business for you guys and so.
[music].
Appreciate you've worked through the inventory now you're starting to calling commercial insurers. What do you think you need to start to.
Get covered lives.
And is that in the commercial channels and what have you heard from the payers.
That will get them comfortable with with pain for the therapy. Thank you.
Again, we need we need to get back to some normal season that the payers will we'll take our meetings. That's it that's a big challenge in this.
Kurt run.
We've got a large and growing database of success in the UK with the Nic E publication last December.
The sheer number of patients.
That we've been able to treat successfully in the United Kingdom with good tracking is going to lead to additional medic.
Sure Economics data similarly in the United States or through our growing headache business in the VA system, we're able to track some some medical that come out there so.
I continue to be optimistic but.
But short run.
Tend to make it difficult to proceed and have the conversation.
Sure.
[noise] understood I'll hop back in cumulative as question. Thank you.
Our next question comes on the line of Dave Turkaly with JMP Securities. Please proceed with your question.
Oh, great. Thanks, maybe just a follow up on Ryan his questions.
Given that the three businesses were up sequentially.
Understanding some of the challenges the fourth quarter, but sort of as we look ahead.
I would imagine there's no reason to think that the some of the sequential improvements could continue.
Now into 2021, maybe even as we work through the year.
Or.
Hi, <unk> any thoughts you know as you look at the three why that wouldn't be the case.
As we try to model out next year.
Yes. So you know look at this is as you know we look we're processing prescriptions every day, if the quarter, it's a quarter ended today.
And we look at our daily.
On rate then we.
We'd be doing better than the third quarter.
That said, we are going into the Thanksgiving holiday, we're going into the end of year holidays.
We just want to be careful that.
Sure about what the number of working days are and whether or.
Right there is going to be a drop off in the rate of prescriptions.
So just trying to be.
Honestly conservative about what could happen at the end of the year, but you're absolutely right. It's our current run rate was just extrapolate into the second half of the back half of the quarter will be shout from the rooftops again.
Not.
Got it and then.
Obviously, opex a lot lower and I know you've been working on that I guess from a headcount standpoint do you think your Oh you Rightsize now do you have the the number of folks that you need to.
Yes continue the momentum that you're seeing in this quarter yeah.
Yes.
So we're very comfortable with where we are on head count as we roll into 2021.
If the revenue growth is where we think it should be then we'll be looking at additional investments in sales head count.
As we roll into 2021 and as that business starts to scale.
Great. Thanks, a lot.
Our next question comes from the line of Swayampakula Ramakanth with HC Wainwright. Please proceed with your question.
Thank you this is OK from head to and.
Good good evening, Dan Hi.
Yes, I certainly understand.
You know whether that comes over to.
Look into the Q4, but at the same time when I look at the 59% increase in paid months of therapy.
In Ah, it's just there's just some encouraging.
So if.
If you can help us understand what was some of the driving force behind that.
And Oh, so you know.
What what could help you know.
I'm just trying to understand what are the pushes and pulls.
For.
You know you are being a little bit more conservative than what people were I've talked [noise].
Sure so so.
So look in the quarter that ended September 30 it.
We had a we had some pent up demand coming from the depressed levels of the second quarter. We also.
In the U.S. had ended the fiscal year.
Activity pulling forward some business.
Just because of the end of the fiscal year and how some of the DRD, but work big.
Bigger picture, a pre pandemic eyewear.
So the a channel with growing 30% sequentially pretty reliably.
In <unk> and that's I believe I I feel very strongly that we're going to return were going to normalize to that.
Percent sequential growth in the United.
Kingdom pre pandemic, we were growing solidly.
Or rather reliably at 10% sequentially.
I see us returning to that 10%.
Sequential growth.
Under the ATP program and as we negotiate the larger.
A three year, three and a half year contract with NHS when that goes into effect.
In the first half of next year.
Then we should be able to grow well, we should be able to accelerate growth in a in the United Kingdom. So.
Lots of reasons to be excited about our momentum going into 2021 that Brian and I just want to be repeating.
Repeating myself.
I apologize but.
Going into Thanksgiving and the end of year holidays, we're very cognizant that things could slow down just because of the holiday season and the patterns in that among the prescribers.
Yep Yep, well they understandable, that's that's absolutely fine.
But as your touch.
Touched up on day and it shows potential here. So what are what is your confidence you know regarding getting that three year extension from as much as regarding RTP program.
So we are 100% confident.
The question.
The uncertainty is around timing.
Timing, it's a relatively new process for NHS and there's the Brexit distraction, that's going on there and so.
We've been told a first quarter of 2021, but.
Again, we want.
Want to be sober about what can really happen with the with that government bureaucracy with the Brexit situation overhang.
Okay and.
And then just just to touch upon a little bit on the COVID-19 indication or programs.
Are you.
Portable that with your current strategy regarding commercialization and.
What do you think has been.
Helpful and what worked what else needs to be done you know so that you can.
Impose a commercialization for that for that particular indication.
So you know where we are monitoring that situation very carefully.
Peter starts our Chief Medical Officer is very active with a variety of Ah investigators.
There was an article and.
I am earlier this week talking about the need for additional therapies, both for outpatient and inpatient cobot sufferers.
And.
No.
It's a complicated Uh huh.
Integration on the ground so.
I'm, sorry, I can't give you more color than that I think you will see.
Some some announcements in coming months about progress using our game of course is a separate CV therapy.
But it's still very small numbers at this point.
Okay.
Just a last question from me is on the commercial payers.
Thanks for that date, but what are your thoughts regarding.
Reimbursement and how does the success in that relate to revenue growth in this channel.
Yes look.
Okay. So.
The both express scripts and Cvs in on the pharmacy benefit side.
Make gamma core therapy available for a reasonable out of pocket Kobe co pay.
The challenge for us.
Is.
Getting additional covered lives and that's going to require a meeting with you know the national and regional insurers and getting.
Getting onto a larger number of their benefit plans.
There are also some some insurers that are directing gamma court through the medical benefit.
Benefit pathway.
And that's great and the work, we're doing with CMS towards getting a unique code will will certainly help the medical benefit pathway and that the challenge there as you well know.
His how patients manage their deductibles and and what their actual out of pocket is going.
Could be.
Uh huh.
[noise], depending on where they are in the calendar and where they are in the deductibles. So wish I could give you more specificity than that but.
As I just mentioned with one of the earlier questions. It's been very difficult to actually have the Conversely.
Collections with the with the payers.
They are hiding behind that.
Cobot restrictions for this for the time being very frustrating.
Yes.
Got it. Thank you. Thanks for this color I'm talking.
Talk to you soon.
Very good thank you.
Our next question comes from the line.
Hey, Jeremy Perlman with Maxim Group. Please proceed with your question.
Dan This is Jeremy I'm on auction one for Anthony Vendetti. So a couple of questions number one if you could speak about maybe some trends you're seeing as doctors offices hospitals I know we are hearing over surgeons, but they have been starting to open they've been over the last.
A couple of weeks months have you seen in the VA system, you're via channel specifically between your Tele health capability as an actual in person visits have you see are you starting to see a shift back to more in person meetings or is your tele health still predominantly what's driving the growth.
So are we.
Definitely saw a return to inpatient increase in consultation in over the summer into September Thirtyth quarter.
Unfortunately, as you roll into from October into November that trend appears to have reversed and as you know.
You see the same headlines that we do.
The the the individual facilities are responding to.
To more cobot patients to having two we assign.
Their physicians to the pandemic so it's.
It was going in the right direction.
We didn't and it's unfortunately feels like it has reversed again.
Okay. Thank you then and that's another question just back to the commercial channel I know you mentioned on the on your coal or oil I'm, sorry, if I missed it you think of a pending application for unique visitors that this effort CMS code.
Yeah for an HCPCS code from CMS.
And is there do you have any sort of anyway, a timeline for that or it's it's too far to give anymore. Mitch. We we thought we did we thought it was on track for a January decision, but a there was a vague or.
Everything is on hold because of coded.
Announcement.
That two weeks ago. So we're not sure what the process in CMS is going to be given that big announcement.
And then that's it pending you do get a quote us a unique code what do you think that what doors that open up here.
So bad or that opens up not just the ability to negotiate.
<unk> reimbursement.
With the regional Medicare payers, but as well as a dramatically simplifies the coding system.
System for all of the other payers that are going to run gamma course therapy through the medical benefit pathway.
So it's a big win for us.
If and when it happens.
Okay and then just last question I know this is really far off but this new depending study with the department of veteran Affairs do you think you know if the if that so again. This is far off if that goes well. The trial. You know shows positive results is that going to open up do you have plans for that to be another.
Revenue channel.
So absolutely we are optimistic that we're going to be able to show.
Efficacy in concussion traumatic brain injury and in PTSD and ultimately get label extensions into all of those indications.
Okay, all right great. Thank you.
Back in the queue.
As a reminder, it is star one to ask a question. Our next question comes from the line of Ted you with Zacks small cap research. Please proceed with your question.
Good afternoon. This is Ted you from Zacks small cap research I'm sitting in for John Vandermosten today.
Congratulations on a solid quarter and.
Just a couple of questions here so I.
AH you previously explained it in the call and we we've touched on it a few times the.
The Q and eight but I just wanted to clarify so when you. Thanks.
Expressed that they were a few prescriptions that were written then filled was that just through upstream or is that kind of expressive of the of all of the channels for.
For SAP RCB and the healing in general.
Yeah. So yeah. Thank you for the opportunity to clarify so so gamma course sapphire see.
For known or suspected coded patients is available.
By prescription for my health care professionals through Premier specialty pharmacy.
The ups scripts platform.
Is a way for a consumer.
Patient.
To go online with Tele health platform and get a prescription specifically for Gamma course, CB, if they don't have a primary care physician.
It's also available.
Through hospital channels and certainly it's available through the the idea of D who are established channels there. So.
Lots of different ways to gain access to the therapy.
Okay. Thank you for that clarification, and also kind of an option here.
Of the sales into the VA.
How do you rank the scripts by indication.
I'm sorry.
I'm not sure I understood. The question, how do we rank.
Right correct to rephrase it.
Canaccord Sapphire is indicated for both acute and prophylactic treatment of both leaving Mr. Headache, and just curious about what.
What the prescriptions are looking like.
In terms of numbers in terms of indications into the BA yeah.
Yeah. So.
So actually we have four indications for for headache for again of course Sapphire.
Treatment and prevention of cluster headache, and treatment and prevention of migraine.
We generally don't.
Hi, good visibility on one indication or another.
We get a prescription from.
The preset ex department of the VA and it won't specify what the condition is.
What the specific indication is where the specific condition of that patient.
We don't we just don't have visibility.
Okay, great. Thank you very much that's all for me.
There are no further questions in the queue I'd like to hand, the call back to management for closing remarks.
Great. Thank you everybody for your for your kind attention.
Please be safe and healthy out there is a is this pandemic ramps up.
Electric core had a fantastic so.
September thirtyth quarter measured both by our financial results as well as advancing on a variety of.
Clinical.
Scientific areas and we look forward to talking to you again after the new year. Thanks, everybody.
Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation you may disconnect. Your lines at this time and have a wonderful day.
Okay.