Q4 2020 TherapeuticsMD Inc Earnings Call
Ladies and gentlemen, please standby your conference call will begin momentarily once again, ladies and gentlemen, please stay on the line.
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Good morning, ladies and gentlemen, thank you for joining us for Therapeutics M D fourth quarter, 'twenty and 'twenty financial results Conference call. Following prepared remarks from the company. We will open the call for questions I would now like to turn the call for Therapeutics M D Vice President of Investor Relations, Nicole Shneur Nicole.
Thank you good morning, everyone. Thank you for joining today to discuss our fourth quarter financial results.
This morning Therapeutics and be issued a press release announcing our fourth quarter financial results. The press release is available and the company's website therapeutics and dotcom and the investors and media section.
Today's call from Therapeutics and D, Our Chief Executive Officer, Robert and easier.
<unk>, Chief Financial Officer, James Director, and Chief Commercial Officer, Don how Covid.
And Keith strategy and perform their jobs and share.
Mitchell crash and I would like to remind everyone that certain statements made during this conference call may contain forward looking statements such forward looking statements are based upon current expectations and there can be no assurance that the results contemplated in these statements will be realized.
Actual results may differ materially from such statements due to a number of factors and risks some of which are identified and our press release and our annual and quarterly and other reports filed with the SEC. These forward looking statements are based on information available to therapeutics and <unk> today.
And the company assumes no obligation to update statements as circumstances change and.
Audio recording and webcast replay for today's conference call will also be available online and the investors and media section of the company's website for the benefit of those who may be listening to the replay or archived webcast. This call was held and recorded March 2nd 'twenty 'twenty, one with that I'll turn.
The call over to Therapeutics, Sandy CEO, Robert and easy.
Good morning, and today's call, we will review, our fourth quarter and full year performance progress made on strengthening our capital structure and our commercial plan.
We delivered a strong year and a strong quarter with record total net product revenue for our company, we successfully executed on multiple priorities demonstrating operational agility, while maintaining a strict focus on commercial execution and financial discipline, we've lowered our operating expenses updated our net revenue covenants for.
For the remainder of the term of our loan and strengthened our balance sheet through equity capital raises as we reduce our debt.
Before I turn the call over to James to give you the detail on the transformative progress we've recently achieved.
I'd also like to mention that the vital care divesture process moving forward and that's multiple interested parties.
I will now turn the call over to James.
Thanks, Rob before reviewing our fourth quarter financial results I would like to discuss our balance sheet and elaborate on updates with our lender.
Turning to slide five.
We have strengthened the balance sheet by raising over $180 million and net proceeds since last November which after the recently completed offering earlier this month brought our cash balance to over $200 million.
Our strong cash position has enabled us to work with our lender to reduce our future covenant for the remaining life of the loan gain their consent on the terms on which we can divest and vital care prescription services and paid down $50 million of debt by the end of March.
Paying down debt allows us to reduce interest expense as we move forward and we believe it will also facilitate the refinancing of our remaining debt at more favorable terms and a future that will reflect the advanced stage of commercialization of our key products.
And as Rob mentioned, we have agreed with our lender to update our aggregate revenue covenants for anniversary index C and by Juba.
Our first quarter revenue Covenant is now 17 million second quarter is now 20 million third quarter is 23 million fourth quarter's 26, and a half million and for first quarter 'twenty and 'twenty two it's 30 billion.
After that time and increases $5 million per quarter.
While not formal guidance. We believe these revenue covenants have been set at minimum levels that are sufficiently below our revenue expectations given the current state of the COVID-19, pandemic and provide sufficient headroom to avoid further adjustment.
We believe our deleveraging along with our updated net revenue Covenant is transformational and we are now poised to focus solely on executing our commercialization efforts.
Let's move on to a review of our financial results and key metrics from the fourth quarter.
Turning to slide seven and our overall net revenue for the fourth quarter increased to $22 $6 million, which satisfied our fourth quarter revenue covenant.
This was a 30% increase and product net revenue from the third quarter.
This increase was driven most significantly by the 42% increase and net revenue from out of error with the average net revenue per unit remaining in line with prior quarters at 1300 $36 per unit and.
Additionally, as you can see on the chart and vaccine and by Juba also increased by 29% and 36% respectively compared to the previous quarter on a net revenue basis. The average net revenue per unit increased to $54 for index and $52 for by Juba.
As of yearend wholesaler inventory levels for our products well within normal levels of three to five weeks.
Moving on to slide eight let's review some key financial statement items.
Our product gross margin of 75% and the fourth quarter decreased six percentage points over the third quarter, our fourth quarter gross margin was adversely affected by write offs of finished goods inventory for anniversary of 800000, and 500000, each for and vaccine and by Juba, which were attributable to the <unk>.
And downtick.
The results of our previously announced cost savings initiatives and are focused on strict cost discipline allowed us to reduce operating expenses and to achieve our goal of $80 million $80 billion and opex for the second half of 'twenty and 'twenty.
Excluding noncash items and a performance incentive of 6 million to enhance employee retention across the organization.
Net cash used in operating activities decreased by $3 7 million from 34 million for the third quarter to $30 3 million for the fourth quarter, while we plan to maintain and efficient cost base that can be leveraged as revenue grows we expect to make investments this year to improve our supply chain enhanced <unk>.
Getting and strength and digital capabilities related to commercial initiatives.
With these investments we expect our cash opex per quarter to average 45 to 48.002 million 21.
Turning to slide done.
In conclusion, I have been pleased with our financial and operational accomplishments over the previous two quarters since I joined T X M D.
Over this short time, we have reduced operating expenses and cash burn by successfully meeting our goal of $80 million and cash opex for the second half of 'twenty and 'twenty string.
Strengthen our balance sheet by raising 180 million in cash and committing to pay down $50 million and debt.
Revised our revenue covenants to what we believe our minimum levels given the current state of the COVID-19 pandemic.
We believe we are well positioned to execute on our commercial plans and poised for continued growth in 'twenty and 'twenty. One I'd now like to turn the call over to Don to discuss our payer progress and commercial plans.
Thanks, James I will start with a quick overview of payer status and then review the performance fee and across our product portfolio and this quarter, let's start with payer access and upgrades on slide 11, we have maintained all major players across the product portfolio improvement and promotional unrestricted coverage and <unk> to 70.
And next day to 76 per cent and by June <unk> 75 per cent.
Let's move to and if there are performance on slide 13.
Quarterly total prescription sales by patients and so on the left hand side as you can see and apparent and continue to grow the total prescription increasing 15% over the third quarter coming in and approximately 6000 total prescriptions for the fourth quarter net revenue per unit remain strong at 13, 36 and net revenue.
Grew 42% quarter over quarter.
Turning to slide 14.
To provide a bit more understanding of our progress, let's look at leading indicators and across that fiber and consumer metrics I'll start with prescribers growth and the prescriber base for Ana Vera is a key lever for launch trajectory Ashley's mentioned for fiber access has been limited during COVID-19, but we are navigating this and continue to see growth and.
And the total number of prescribers, writing as indicated by the green bars and growth and depth of prescribing as seen by the total prescription shown on the Blue line going faster and the total number of writers.
Turning to slide 15.
We have leaned into consumer activities, given that 60 per cent of birth control decisions are made by the consumer in December we launched our celebrity spokesperson portion of the consumer campaign with Whitney coming the program I'll, just say for China. The interest has been significant for $2 7 billion impressions generated and places.
And multiple significant media outlet as shown in the column on the left.
In addition, and the early impact results are encouraging click through rates from our advertising to the website are above industry norms.
Capex for the website is growing with over 10000 visits to the website, a day and and lives cash on multiple platforms. After seeing our advertising and tend to request and of ore rises significantly to 60% and now.
Other words, all leading indicators show the consumer strategy and just working and we believe it will increase the trajectory of antibiotic prescriptions and 2021.
Turning to slide 17.
And you can see we have figured out how to affordably attract consumer interest and Anna bear what do we need to improve and create the next step is converting this consumer interest to fill prescriptions. This progression from interest and conversion is a typical learning profit and kind of launch and we believe we are on the right track to improve the conversion over the next months and.
Flares.
Turning to slide 17.
Now I would like to talk about the value of each patient for an error each woman on therapy creates a significant amount of revenue value for T X M D. Because of full year revenue and 13 cycles and as earned when the product is defense and.
You can see by the slide the cumulative value of an Advair continues to grow with almost 16000 women on therapy. In addition, we believe our strong refill rate of approximately 50% will create strong compounded future revenue opportunity.
Now, let's move to the larger future opportunity for Ana Vera on slide 18.
And a per fills a void in the marketplace and we believe it can create a new segment and birth control.
And is well understood that iuds, and implants and not for everyone and close to half of women and reject the offer of and Ied and her and plants because they do not want to undergo a procedure and addition of capital D C Y and don't do.
And that's for teachers, and therefore are in need of a long acting option to provide their patients the solution to both of these issues and Dana there.
Turning to slide 19.
Our growth trend in the marketplace and procedure free at home solution. One successful example of this is cologuard a procedure free at home solution for colorectal cancer screening it removes the barriers to entry for many people reluctant to undergo a procedure and fact of the 3 million people screened with Cologuard.
Car half of them had net happens and had been previously untested, we believe and <unk> can expand the long acting segment for the birth control category and the same way, we're moving the barrier to entry for those that want a long acting product, but are reluctant to undergo a procedure.
Turning to slide 20.
Let's look at the contraceptive continuum and <unk>.
Left hand side of the chart, our daily and monthly options and our procedure free, but short acting and declining and on the right are options that provide the benefit of long acting, but require and medical procedure and our growing and.
And our Vera for the left at the long acting segment sales and market void of a long acting product that does not require procedure.
And still and that market boy, we believe and available credit and your segment and birth control and Cologuard game for colorectal cancer screening.
Turning to slide 21.
And the evidence for <unk> to become a new segment and the marketplace is and the data on the left hand side of the chart are the main segments at birth control.
Moving to the Middle column here, you see actual patient data from Vita cure and which birth control women were on prior to switching to anniversary.
Moving to the right hand column. This is survey data and where prescribers claim they switch patients from given the multiple benefits and Ana era and.
And they take away from both sets of data sales.
And over half of prescriptions are coming from products that are not neutral range as the benefits of an affair and more than the birth control for them.
Moving to slide 22.
Before closing on the <unk>, let's spend a few minutes grounding us and Novartis for financial opportunity birth control is a large market with 18 million women and 28 million new prescriptions annually.
To put and <unk> opportunity and perspective, traditionally leading products and this category overtime have achieved for 2% to 5% market share and he.
And he and the middle column Lo Loestrin and launch and 2011 and achieved the share and approximately four years.
<unk>, which is in a different market, but offers the prestige of free at home benefit.
Keep the same share of five per cent of the screening market and five years and a Vera achieved this level of success seen in the column on the right. It would mean approximately 720000 prescriptions annually.
Now, let's review our menopausal products.
Turning to slide 24.
And is that a quarterly total prescriptions filled by patients is on the left hand side total prescriptions decreased five 6% for approximately 123000 are result of interacts decline and previous quarters, which was attributable to the pandemic and good news, new prescriptions and began to recover and increase.
2.5% for the fourth quarter over the third quarter net revenue per unit improved to $54 and net revenue improved 29% Q4 over Q3.
Moving to slide 25.
Our primary goal for and vaccine in 'twenty and 'twenty, one is to improve the gross to net.
To support net revenue per unit growth effective January 1st our cash pay program and high deductible patient co pay increase from 50 to $75. The expected positive impact and vaccines gross to net is significant.
The cash they program change was expected to put pressure on volume, but at the same time, we rolled out the cash pay program change. We also gained preferred status for and vaccine with a top P. B and that covers approximately 20 per cent of lives to counterbalance and January the P. B and then the key branded competitors, including Premarin, which currently.
17% total prescription market share. In addition, we are continuing to focus on patient adherence to retail partnerships to drive higher refill rates across distribution channels.
Turning to slide 26.
Performance in January and based on the combination of changes is as expected in January we saw a short term impact on volume. However, early indicators for February show that volume and beginning to recover.
In addition, we are seeing improvement and adjudication rate net revenue and net revenue per unit.
<unk> and approximately $17 improvement and cost per sale is being realized for those who use the co pay program.
Turning to slide 27, and finally, a driver of growth as consumer demand during the first quarter, we launched patient testimonials to help them and better understand that symptoms of menopause are common and normal moving into the second quarter, we plan to launch and new consumer campaign grounded and self care that is designed to educate and.
And a parcel of women and their overall vaginal health and encourage them to take charge doing new life stage with and vaccine.
Moving to slide 29.
I'd like to quickly touch on by Jesus, even with our decision to deemphasize by Japan, and with almost seven sales representatives promoting by Jews and appeal, we continue to see slight growth and Trs for the quarter at three 3%, while maintaining and Iraq for the fourth quarter net revenue per unit improved to $52 and net revenue.
<unk> increased 36% over the prior quarter.
I'd now like to turn it over to Rob for closing remarks, Thanks, Sean let's move to slide 30, we've transformed our capital structure.
We've improved our balance sheet updated our revenue covenants and have the framework in place to accelerate both and of ore and a vaccine adoption throughout 2021.
And last but not least our vital care divesture is moving forward and we believe we're very well positioned to continue our growth to anticipated EBITDA breakeven and the first half of 2022.
Thank you all for joining the call today, and we'll now open up the call for questions.
Ladies and gentlemen, if you have a question or a common at this time. Please press. The Star then the one key on your Touchtone telephone. If your question has been answered or you wish to move yourself for Mchugh. Please press the pound key.
Our first question comes from Louise Chen Cantor.
Hi, congratulations on the quarter and thanks for taking my questions. Here. So first question I had for you is on vital care any update about how you think about valuation you had given us some thoughts before and then the timing of the sales could we see something this year or is that what is anticipated.
And then the second thing is how should we think about gross margins in 'twenty and 'twenty, one and you gave us some good metrics for sales and Opex and then last thing is how much of an impact do you anticipate COVID-19 to have in 'twenty and 'twenty, one and the reason I ask is as we think about 'twenty and 'twenty two should we expect a step up in sales and thank you.
Yep, Hey, Luis just Rob so as far as body care goes.
Absolutely I would expect something this year.
Assuming the diverse which we have multiple parties interested in.
And things are progressing very nicely there I would definitely expect it this year.
As far as gross margins go we tried to put out at the JP and presentation very clear.
And expectations around net.
For the first time, even including and vaccine.
So what we did with and Vera as we had 10 and 15 to 1200.
And that was based on the back half of the year the government channels opening up and additional.
Additional rebates related to government or commercial related to <unk> and that's obviously, assuming COVID-19 lifts I know we stayed ahead and in 2000 and 'twenty I know, we were going down to about 1200, we closed the year at 13 36. So again, it's that government channel is starting to open up Medicaid D O D and places like that.
I think for and vaccine, we put a clear quarterly progression out there and then by July and think we gave a little bit of color as well as far as Covid goes we actually put a step up and scale, where the first half of the year is vaccines begin to take hold there is certainly a headwind for our sales force.
Force and getting it to new offices that we believe and the back half of the year will start to lift and B you know getting whatever the new normal will be in 2022. So we expect strong revenue growth throughout this year and next year.
And we think it will accelerate quarter over quarter with Covid lifting, but the other big thing and it and I'll turn it over to Don you know this this procedure free long acting product as you can see we have over 10 and two quarters ago. We were just starting to learn but now the marketing department is over 10000 women coming to anniversary a day.
And the ability to get you know a lot of volume moving at low cost with interest debt.
They've just knocked it out of the park. The next step is the conversion initiatives that she's working on and.
And that also will bring a strong revenue stream with it that we're just starting on right now.
And anything that yeah, and maybe I'll just.
Maybe I'll just add about the Covid impact I mean, I think what's really interesting here is that you know what we're seeing despite COVID-19 is anova are growing quarter over quarter at 15% and.
And our net revenue, increasing 42% quarter over quarter, and you know, what's really nice about an <unk> and if we could go to slide 17 is that you know during this environment. What's fantastic is that the value of every script and realize value with every script for Ann.
And there are and the aggregate amount of women on therapy quite a lot of value for us for TX MD, which is really nice and this COVID-19 environment as we navigate it. So essentially you know weren't annual products living and this monthly data world and for what that means is that every time of prescriptions written for an event that we receive a full year of revenue.
And versus the one month of revenue for other monthly product. So every time and CNN and their prescription and it's actually 13 and again and that's really helpful. For us during this time and as Rob said in terms of how are we going to accelerate growth with COVID-19, what's the impact Rob already mentioned and the first part when Covid.
The sales force access for normalized.
We'll NAV naturally help us accelerate and then because we've generated the significant interest and anniversary and I'll tell you that the procedure free long acting message resonate and resonate with prescribers and resonates with consumers right. Now we're just focused on conversion and we can reach consumers.
Digitally in a in a COVID-19 world and so that's going to be really helpful. But ultimately we believe that the access restrictions lift and the back half for the year that will allow us to accelerate.
Okay.
Thank you that answer your question.
Yes. It does thank you.
Thanks Luis.
Our next question comes from Annabel Sammy with Stifel.
Hi, guys. Thanks for taking my question I had.
For something pretty simple.
Simple math here, if you just take your prescriptions and multiply it by the net price debt.
And you've laid out and your press release for not getting to the numbers. So are there any other variables that we need to be thinking about and when we think about debt where are the variables that we should think about going forward. When you talk about net price ranges for both and are there and sexy.
And.
And I guess the next question is if theres any update on discussion between us and them and FDA regarding hormone therapy and clock back by two very much credit as COVID-19 lifts and as things stabilize for it and the other franchises.
Are you going to plan on re initiating marketing there. Thanks.
On the question about the difference between gross to net and the units and the channel our demand and the channel for the quarter was very strong and illustrations Symphony does not pick up all of the sales from certain channels, where our patients to fill their prescriptions, resulting and underreporting of units.
Second we maintained better than expected net revenue per unit for all of our products and we accomplished this growth and sales was accomplished while maintaining and typical inventory levels of approximately four weeks and the channel.
Does that answer that piece of it.
I mean, the net net price of your listing and I and the prescriptions that you reported.
Are you, saying that there are other prescriptions and the channel that you're reporting revenues on a reported revenues non rather.
What we're saying is there's a mismatch between the numbers reported by Symphony and the units into the channel versus what our sales are.
And if you take our next time the units you get the revenue that's reported.
The reason and that's her so highest we think Sip and he is reporting low.
Okay do you have a sense of the percent that they are reporting low.
It's hard because there's so many new channels and that's something we're really working on.
It's hard to say at this point.
And I'd hate to guests and be wrong, but we're working on that one.
With them.
How how do you record your revenues than you are.
Gasoline for under reported.
And the channel.
You take care and you take your revenue, let me turn it over to finance, Scott, Yes, Hi, Annabel.
So I think what you're what you're hitting a part is as you know our revenues are I got on a GAAP basis and so that's why we felt onward to wholesalers and I think the numbers that you were looking at.
You were you were trying to take like scripts that you see being dispensed to patients and multiplying that by.
The average out 13, and 36 right and that is that what you were intending on doing.
Well, let me and that's just for reporting and what you reported and the press release I imagine that would be the accurate number but I mean, we can take that offline.
You know I guess, if that's the case and how should we think about you know net price and applying that going forward.
If there's if there's variables that are unknown.
And you know how should we think about that.
So I mean, the thing is is that there's a difference between you know the scripts that are dispensed and what we sell what we sell the ex factory right for us to wholesale or so.
You know that there's always going to be ebbs and flows and wholesaler buying patterns and so forth. So that they will never exactly match up one for one.
But just in terms of and overall framework of of doing it.
You know for Us I think.
You know I think you assume that that kind of normalizes.
Overtime.
And that and that's the way I think you would go about doing it if you wanted to model that way.
Okay. Well then maybe we can just moving on to the next question regarding NASA and and any.
Progress there in terms of their discussions with FDA, and and and compounding and what Youre doing it by true though.
Yeah. So our goal is to get to EBITDA breakeven first half of 'twenty. Two we're on track for doing that and at that point, we can reevaluate baidu vote also you know you're right the COVID-19.
Overcast can certainly a great tailwind or headwinds as it lifts our moves forward and then we'll see what the FDA does with nature I'm on top of that so we got to wait and see how it's card flips over but certainly it's a great product and are you, saying, we only have seven people behind it and it's moving it's moving upwards. So theres definitely.
And a market there, it's a matter of resources for us and and shareholder golf.
So we'll get it going up.
Alright, great. Thank you thank.
Thank you.
Again, ladies and gentlemen, if you have a question or comment at this time. Please press the star of and the one key on your Touchtone telephone.
Our next question comes from Douglas Tsao with H C Wainwright.
Hi, good morning, Thanks for taking the questions just on the balance sheet. Just curious you know, yes, and it sounds like it took them and be more like a when youre able to diverse the body care business will you plan on paying down more debt is at and option for you or you know what are your thoughts in terms of.
Use of proceeds and thank you.
Yeah. Thanks for the question.
Yeah. So.
You know when I first.
I first started we had.
The venture debt here, who is covenant package was yeah, we set long before COVID-19.
Pay down debt that we digested, Doug really creates optionality to keep our current debt structure or allow us to.
Pursue lower cost debt and the future as market conditions allow.
Now whether or not we do further pay downs.
That's subject to a bunch of different analysis here, but we like the optionality that that we have.
Additionally.
Now with that that consent to sell Vida cat, which what you brought up that improves our focus and.
It allows the vital care visits to maximize its value and which we plan to retain and interest. So so I really like the setup here that we now have and I think we're in a much better position balance sheet wise.
Yeah, Doug I don't I don't think we'll be paying down any more debt and the near future.
The current expectation to answer your questions.
Okay, and then just in terms of the gross and that's we're obviously seeing some improvement especially for.
And Betsy.
You know, sometimes things get a little squirrelly and the first quarter with just deductible resets and you see greater utilization of plans, but I know you've made some changes and so should we see further improvements and the first quarter or will that come perhaps later in the year just trying to make sure we get everything straight took for our model and standpoint. Thanks.
So I'll turn it over to Dan and Mitch but.
And the copay card and the up the increase and the cash pay price was an immediate impact. The next piece that you would see unfold during the year would be the high deductible plans and things meeting their goals and more insurance coverage kicking in.
So I don't I would expect it to continue throughout the year okay.
Net which Anthony and I would when looking at debt I would really look at quarter over quarter. So first quarter of 2021 versus first quarter of 2020 and from that regard typically you see a decrease in and the cost of net revenue and we may see one this year, but we don't think the impact will.
Would be a significant given the changes we made with insurance and co pay card.
So pretty positive.
Great. Thank you.
Our next question comes from David claims with Guggenheim Partners.
Hi, This is devin on for Dana Flanders I just had two quick questions. One was just regarding the new preferred P b and position for and ovarian and Betsy just wondering how I guess share gains are tracking I know it and now it's early and the year, but you guys and they got it to about 10 to 20 per cent share gains.
Back in January so just seeing if you would still expect that to be a tailwind into 2021 nice to have an additional follow up.
Yeah, we absolutely do I'll turn it over to Don so far.
It's early to track that but we are as we showed in the slides.
And I had a pace. So when we wrote when we raised the cash pay from 50 to $75. We expected a falloff as we said back at J P. M.
Through February and then to return and March took back to growth.
That fall off kind of stopped at the end of January and we've kind of returned to growth about two or three weeks sooner than we thought so we that is trending well, we expect that to accelerate with that contract throughout the year for sure.
And feel good about that yeah, hi, Devin and and the only thing to add is that as Rob said, it's early what we would expect to see.
And the second quarter and power, but as Rob said given that we're not seeing as much of an impact from especially with and actually with their co pay change we're confident that some of our some of that is because of the of their preferred coverage at P. B and also.
Okay, great. Thank you and I just had one additional one I know there's been I guess, it and more recent launch of <unk>.
And nuvaring generic at the latter half of 'twenty 'twenty, one and I know there's also.
And your generic launch of a new lane, just seeing a how you guys expect that to kind of impacts wishes for and ovarian and in 2021.
Yeah. So you know as you can see on slide 21 that.
If we see you actually positioned two thirds of the scripts aren't coming for Nuvaring and if you go to the patient.
40% 44 per cent or coming from Nuvaring and so we're just not seeing the impact.
So what really what what what and Vera was developed to be was not nuvaring. Two pointed out with the population Council wanted was a long acting product that was procedure free that last for a full year and absent something for women that didn't want or couldn't have iuds or implants.
A lot like Dawn mentioned Cologuard right. They removed the procedure aspect of colon cancer screening and it worked very very well well and Vera does the same thing for iuds and implants and removes the need for a procedure and were seeing that and the data so.
As much supply that comes out there is we need I think you'll see the nuvaring contribution our previous nuvaring users contribution to our overall.
Revenue shrink not grow I think you'll see other sources continue to grow because what we're finding is the way we're positioning at the way the doctors see the void and the market and the board and the market that we are currently filling and that's where all of this web interest and web traffic come from with women.
And that we've been impressed by is truly that long acting procedure free with the pop council developed it to be so so I don't think supply to answer your question of Nuvaring is going to impact and a bearish trajectory at all there is always going to be a subset of bring users.
That and the long run probably 33% to 24% of the overall.
Whether you are looking at their market share our ultimate market share. So we expect these numbers of Nuvaring users to go down not up and we'll continue to track them.
Okay.
Okay, great. Thank you very much.
You got it thanks for thanks for the questions.
Yeah.
And I'm not showing any further questions at this terminal I turn the call back to Rob for any closing remarks.
Thank you everybody for joining the call today I'm really excited about how we're positioned for the future with the new revenue covenants.
Strength in the balance sheet, our progress and the <unk>.
<unk> share situation moving forward and progressing.
So thank you all will see you all next quarter and thank you for your interest.
Ladies and gentlemen, this does conclude today's presentation. You may now disconnect and have a wonderful day.