Full Year 2020 Biofrontera AG Earnings Call
Yes, ladies and gentlemen, welcome to the conference call a feel for I'm talking about AG.
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May I now hand, you over to some of that kick that off for a bunch of relations who will lead you to this conference. Please go ahead.
Thank you.
Good morning, Good afternoon, and welcome to <unk> earnings Conference call for the financial year 2020 yesterday, we issued a press release summarizing our financial results for the 12 months ended December 31, 2020, we encourage everyone to read the press release as well as the annual report both of which are available on our website.
At Ww dance Biopharm care enough com.
Please note that certain information discussed on the call today is covered under the Safe Harbor provisions of the private Securities Litigation Reform Act.
Caution listeners.
That during this call Biopharm tariff management, moving making forward looking statements.
Actual results could differ materially from those stated or implied by these forward looking statements due to risks and uncertainties associated with the Companys business.
All risks and uncertainties are detailed in and are qualified by the cautionary statements contained in <unk> press releases and SEC filings. This conference call contains time sensitive information that is accurate only as of the date of this live broadcast today April 13th 2021.
<unk> undertakes no obligation to revise or update any forward looking statements to reflect events or circumstances. After the date of this call.
With that I would now like to turn the call over to our CEO Hermann limit.
Yeah. Thank you Pamela.
And thank you very much ladies and gentlemen for taking the time to participate in today's call.
With me today is looks like a low to our CFO.
And the other press release, a few weeks ago, we briefly introduced him and welcomed him two overhangs.
No during today's conference call. He will take the opportunity to introduce himself to you in person and explain the key financials of the past reporting period in more detail.
I would like to start with a summary of last year's business development provide.
Providing you with an update on our sales performance as well as an update on the development on the clinical side.
But challenging year lies behind us all.
The impact of the global pandemic on society politics, and the World economy was in mens and as such also had a significant impact on both of them to your house business performance.
We were able to respond promptly and flexibly to the crisis at the low value corporate offices by implementing a series of effective countermeasures.
Fixing the health of our employees and business partners for a top priority.
Total immediately initiated cost saving measures and due to the dumping tolling payment from the Japanese company mobile.
Relating to the <unk> license agreement for East Asia and Oceania.
Well as for 40, plus convertible bond in August we were able to successfully mitigate the negative effects and secure the liquidity of the company.
During 2020.
We experienced a slight decline in revenues of about three per cent compared to the previous year.
Although the actual decline in revenues from product sales was significantly higher at 22%.
Despite the pandemic.
To further expand our market share of PDT prescriptions, and all domestic German markets 262 per cent.
Compared to 57% in 2019.
We also observed in an expansion of the PTT segment for actinic keratosis treatments with <unk> being used in seven 1% of the treatments in 2020.
Compared to six 6% in 2019.
This increase of plus 5% appears low at first glance, but other states due to the size of the overall market for actinic keratosis treatments, even slight shifts can have a significant impact on our revenue development.
This growth is of course far from all the targets. It confirms that the expansion of the PTT segment is the key to Biopharma sales economic success.
As a result, we were able to achieve an increase in sales of Holland, 11% to your first one 1 million in 2020 in Germany compared to $4 6 million in 2019, despite the pandemic.
Our German sales team successfully leveraged an approval extension to the treatment of actinic keratosis on the body in extremities.
Which took place in March 2020, as well as current study results even during the causes to familiarize dermatologists with the benefits of them loose.
Vantage is of daylight PDT, which can be performed and good for us and in particular without direct contact with doctors became particularly clear dueling for summer months.
And the rest of Europe. However, the pandemic led to a decline in product sales to your $2 1 million compared to $2 6 million you all in the same period last year.
In Spain, where we saw a very positive sales development at the beginning of 2020 until the outbreak of the pandemic.
All of our business.
Almost completely collapsed due to the very strict lockdown regulations.
In the United Kingdom.
Sales for them and at a low level for almost the entire year due to them for that mix and sales through our distribution partners also contributed.
A very small share to total sales.
As in the previous year.
The USA.
An important growth driver for Biopharma today, along with a slightly lower share of 55% of total sales in 2020 due to the pandemic.
The subdued sales development in the reporting period for clearly affected by iPhone sales on the revenue side.
For the full year 2020, Biopharma tell a general interest revenues of approximately $16 6 million jewels in the U S representing a decrease in revenues of approximately 29% compared to 2019.
Following the reorganization of the operational management of the subsidiaries Biopharma, Inc. At the beginning of the reporting period, all important key positions in the U S fulfilled locally and to set up both for sales talk just for sort of the advanced in 2020.
Our U S sales and marketing team currently consists of approximately 40 employees per.
For sales force is supported by our medical consulting team or a market access and a customer service team.
We have sold well over 50 million or so both of them are loose in the U S. Since its launch, though thus establishing the product on the U S market and propelling it fulfills alcohols.
Compared to all domestic market Germany.
The U S. PDT market did not do that and I'll tell you about the drilling the pandemic.
The other share of all PDT prescriptions, among all actinic keratosis treatments decreased from two 1% in 2019 to one 8% in 2020.
Patients attendance times in doctors offices related to PDT treatment.
He played a decisive role here and led to U S dermatologists being more reluctance to opt for PDT for.
For the mall.
Lucius is so called buy and build the book.
Which means that it is initially purchased for the physician on its own accounts and subsequently bits to the patients or the patients insurance when used for.
And that makes an accompanying lockdown restrictions.
Weighted much more difficult for dermatologists to plan financially for us.
Other compounding the negative impacts on the PDT market.
At the same time however.
The share of our maloof prescriptions within the <unk> segment has extended from 22, 6% previously in 2019 to $24 five per cent now in 2020, meaning.
Meaning that while the pandemic has impacted the use of PDT is a form of therapy.
<unk> has been able to secure a slightly larger market share in PDT prescriptions.
Meaning that it has come through the pandemic at least somewhat better than the competitor product.
And the reporting periods seppi or new antibiotics generated only marginal sales, which we believe is due to the still very low level of awareness, which necessitates a high frequency of visits for the sales force for prescriptions from new customers.
This is something we are working on in the current year.
<unk> accounted for one 3 million of sales compared to $2 6 million in the previous year.
We launched to improve the positioning of <unk> is being targeted for the second half of 2021.
In the meantime, all major private payers have committed to unrestricted reimbursement of zippy.
About half of the residents in the U S have unrestricted access to accept.
This together with a new co payment program that we launched on April 1st in 2020 provides a strong foundation for the future commercialization of IP.
The fact that pay us are willing to cover the higher price of CIP compared to its generic competitors without restrictions confirms the tremendous benefits and growth potential of this book.
The licensing deal with <unk>.
S and able to flow of until you're allowed to enter another sales region in East Asia and Oceania under the agreement for all who can develop I'm a lose for all indications.
Prove it in these countries and marketed.
Microphone Taylor can use the necessary clinical studies for the rest of the vote free of charge.
Until other provide more for some of loose at cost plus 25 per cent overhead.
And received an upfront payment of 6 million yours, when the agreement was signed and further milestone payments and royalties on sales later on.
And joint development meetings, Mohl, who regularly in films by the phone tell us about the progress of the development.
In Europe, we have signed a marketing agreement with <unk> Nikko.
So I'm gonna lose would soon be available again in Scandinavia.
Because of the pandemic it has not yet been possible to finalize the planned agreement with Murdoch G M B H.
The marketing of loose in Poland.
Regarding research and development.
We were able to announce another other pool with the extension for them to you in March 2020, whereby I'm a loose PTT may also be used on extremities and the Tango index.
In October 2020, the pharmacokinetics studies for the use of free tubes of them loose on larger multiple surfaces was completed in the USA.
In February 2020 for corresponding application to amend the product information was submitted to the FDA. This.
<unk> became necessary in order to be able to remove for reimbursement with frictions are on the loose.
I'll come onto pool for the only allows to use of one two per treatment.
This creates a significant disadvantage compared to the competitor product, which is also reimbursed for the use of up to sleep packs per treatment.
Likewise.
In response to the preferred treatment of larger Alice and the USA via phone until I developed a novel highly adaptable PDT lamp that provides for a total of five value illumination panelists.
So you see year development period, we were able to submit the application for approval to the FDA.
At the end of March this year.
In addition, we are preparing studies in the USA to allow the treatment of actinic keratosis also in the periphery.
The approvals that are currently only covers the head on Scott.
In this case, the FDA required additional clinical studies.
Planning to start patient recruitment before the end of 2021.
Our submission for label expansion puts them be made in 2020 to 2020 sleep.
Because if we go out to the possible approval extension for I'm, a lose lose Fox news in the U S. Biopharma sales of histone up corresponding development plan and receive feedback from the FDA on the design also the quest clinical trials.
The study program is also scheduled to begin in the second half of 2021 with a face to be twice that.
Aiming to further increase or growth opportunities in the U S. A U S market in.
In the medium term we are currently running a phase III clinical trial for the treatment of superficial basal cell carcinoma in the United States.
Since September 2018, we have been working intensively on patient recruitment, which is taking a considerable amount of time due to the extremely demanding study protocol, which is so as stipulated by the F. D. A.
We therefore do not expect this title.
Results until later in 2022.
Following successful FDA approval.
What would be the one you're talking to the U S for the treatment of superficial BCC.
A tumor indication with PDT.
Clinical development processes are generally cost intensive complex and lengthy in nature.
As such they must be strategically weighted play power for the long term, especially if they ought to be initiated in a way that preserves liquidity.
Our flagship product on the news we are still a pipeline in a product company that develops and expense markets, but broadening the label of loose does.
The growing importance of excipient in the future.
This means that as the product matures.
Necessarily to plan precisely, which indication extensions are feasible and financially viable in order to achieve the desired result, namely the best possible support for sales to expand market share.
In Germany, we have already achieved significant success with this strategy and.
In particular through the introduction of daylight PDT, we have consolidated market leadership for them. The PTT sector in all domestic market as already explained and extend it to shelf PDT among the therapy options available.
Certainly we will test wished for one or the other steps have been taken earlier and foster them.
But we have to live member that Biopharma as a specialty pharmaceutical company that operates in a highly regulated market segment and has very little financial leeway, but for international standards.
However, we are convinced that the chosen business strategy and corporate development have to be consistently per suite, even during the pandemic. If we are to secure the company's goals and the longer term.
Consequently, we are now also pursuing this path in the USA, our largest market in order to improve the positioning of our product in line with market requirements and patient needs.
I would now like to hand over to our CFO will take root zone.
We'll take the opportunity to introduce himself to you and then present or financial she goes for the past year.
It provides you with a forecast for the current fiscal year.
Yeah.
Thank you Herman and thank you all for joining us here today in this call.
I would like to now give you an overview of the financial results of last year and an outlook for 2021.
Given that this is my first conference call as CFO Bae from Tara I would like to briefly introduce myself before we move on to the business part.
As you probably already know I've been chief financial Officer of Biopharm Tara since March one of this year, which is just under six weeks before that after completing my studies in the U S. I was CFO at within India, HRS, Storrow, which was acquired by Sofa.
And also two publicly listed companies in the shop Communications AG and poet Holdings, Inc. The letter like bio for Terra was lifted in Germany as well as in the U S.
So my capital market experience, therefore spans both sides of the Atlantic, which I will also be bringing to brio from Sara.
I must admit that I could hardly have chosen a better time to be appointed CFO.
CFO is not delighted to start a company and a company where it Kevin increase has just been successfully completed and the financing of the corporate strategies secured for the time being.
Turning now to the key financial figures.
Herman just.
As already discussed the revenue developments, our key market in our key markets and the pandemic year 2020 to better understand the full extent of the impact of the pandemic and thus our financial results, let me reiterate in more detail.
As you've just heard the Corona crisis has led to a declining number of treatments and thus to sharp declines in sales, particularly in our key sales market the United States on.
On March 20 of last year I E. Shortly after the pandemic spread of the virus became known the company announced that it was taking comprehensive preventative measures to reduce to reduce and control costs.
As such short time work was introduced for all employees in Germany until the end of July of 2020, similar measures were implemented in the subsidiaries in Spain and the UK.
If you add subsidiary <unk>, Inc.
<unk> also initiated significant cost cutting measures there.
Force was significantly reduced and a furlough program program was introduced under which all employees were required to take temporary.
Unpaid leave.
In addition to members of the management Board and the Supervisory Board a bar for Integra AG the parent.
And the management of buyer for Terra Inc. Voluntarily waived part of their compensation. Furthermore.
Among other things costs in non essential training and continued education were reduced.
In the reporting year.
While these cost saving measures were in effect. The company was able to still ensure full compliance with all legal requirements and medical and capital market regulatory respects without interruption as well as meeting.
<unk> disclosure disclosure obligations.
Due to COVID-19 crisis. The continued challenging business environment has impacted the valuation of some of the company's assets and liabilities during the crisis. The sales strategy in the U S market is focused on our flagship product revenues.
The targeted relaunch to improve the positioning of our in licensed product that had been delayed.
The reduced sales of Debbie led to a reassessment of the medium term business and earnings prospects for therapy, and thus to an impairment of debt. After zappy license in the first quarter of 2020.
To a minor extent inventory were written down as of December 31, 2020.
With an anticipated exploration of surf life shelf life.
Beyond this no significant risks have arisen in relation to financial instruments, particularly no extraordinary write downs of receivables.
So what does it actually mean for our results on the cost side, especially for G&A expenses as well as sales expenses, we saw a significant reduction compared to the previous year due to cost saving measures introduced in the current.
COVID-19 pandemic.
<unk> expenses amounted to $9 2 million euro in fiscal 2020 compared to $16 three in the previous year.
This was mainly due to the aforementioned cost saving measures as well as lower legal and consulting expenses.
Just under 2 million euros compared to $6 9 billion in 2019.
Sales and marketing expenses amounted to $20 5 million, a significant reduction compared to previous year's figure of $28 9 million euros.
The effects of the cost cutting measures implemented were offset by a non cash impairment of zapping for of the <unk> license.
And the amount of 2 million euros.
It's for.
For $8 million in research and development cost, which also includes expenses for maintaining regulatory regulatory approvals. We are the only item of expenditure in the reporting period that was slightly above the previous year's level of $4 6 million euros.
At $7 6 million in 2020, or a loss from operating activities improved by $15 8 million euros compared to previous year losses.
$23 4 million, mainly as a result of cost cutting measure and the effect from the first time consolidation of cutaneous included in the previous in previous year's figure.
What is particularly encouraging and I'd like to point your attention to is that we have reached the operating breakeven point at group level for the first time in the fourth quarter of 2020.
Other income and expenses totaled.
$2 4 million in the reporting period compared to the previous year income of $21 2 million whereby again the previous year figures includes onetime effects from the acquisition of 15 year Life Sciences, Inc. Amounting to 21 million euros.
In 2020 translation expenses of $3 6 million euros were included compared to a currency translation gain of <unk> 3 million in 2019.
As a result, our loss before tax for 2020 was $2 $12 6 million compared to a loss of $4 8 million in 2019.
I would now like to turn briefly to the current development of our business, which I'm pleased to report it's showing for the first time a positive trend in the first quarter of 2021 based on the preliminary sales figures.
Thereafter, I will turn to the guidance for the current year.
As already reported last Thursday.
When we published the preliminary unaudited revenue numbers for Q1 revenue in the first quarter of this year has not yet reached the levels of the previous period and was approximately $5 6 million compared to $6 5 million euros in 2019.
While revenues in Germany maintained relative maintained remained relatively stable compared to the previous year revenue in the U S. In January and February were still significantly lower than last year.
The pandemic became noticeable in our revenues from the second half of March 2020 onwards, and from this point on the significant upturn was evident in the U S. This year compared to 2020 and March we were able to increase our sales by approximately 46% year on year, indicating a significant risk.
<unk> of the situation in the U S, which is probably also for the hydrogen destination.
We're confident in the continued and the continued recovery and look forward to the coming year, even more than in the fall of last year, if for the positive clinical results of the Corona vaccines.
Turning now to the outlook and guidance for our key financial indicators first of all I would like to emphasize that even after a year of exposure to the Corona virus crisis is still difficult to assess global business developments during the day pandemic the.
Our forecast for the full year 2021 reflects our assessment of the timing and speed of recovery from the pandemic.
We expect.
That's due to the vaccination program for pandemic slowly subside and our most important markets, allowing growth momentum to become apparent and show results in the second half of 2021.
At group level, we expect revenue from product sales of between 25% to $32 million in fiscal 2021.
I would like to emphasize once again that our sales and therefore business activities are highly dependent on the for the course of infections and the associated easing of containment measures.
I would also like to point out that starting with 2021 reporting year EBITDA and EBIT will be introduced key performance indicators in our reported.
Both have been established internationally as target metrics and will replace the previously reported kpis results from operation activities.
As a reminder.
Group EBITDA includes earnings before interest taxes depreciation of tangible amortization of intangible assets, even includes earnings before interest and taxes.
These kpis indicators are suitable for describing and comparing operating performance as nonoperating fluctuation variable for example, valuation adjustments and amortization of acquired assets are not included.
Based on the assumptions as mentioned above we expect an EBITDA loss between 11% and $14 million for roads, and an EBIT loss between 13 and $16 million at group level for 2021.
And all of the last key indicator liquidity.
From today's perspective, considering the earnings expectations with a cash and cash equivalents of $16 5 million as of December 31, 2020, and the capital increase carried out in February of 2021 with gross proceeds of around $24 7 million euros.
The group is sufficiently funded for the coming 12 months at least.
That's pretty much sums it up for my part and at this point I'd like to hand over back to Hermann for some concluding remarks.
Thank you Ludwig.
Before we turn to questions I would like to comment briefly on the status of the value of slow suits.
Two social law suit is ongoing and unfortunately, we were not able to reach an agreement. So the next step will be to enter into the debt. So tires off the case in front of us usually.
For Cold has already set a preliminary date for this truly tile, which is scheduled to begin at the end of November 2021.
This may be further delayed.
We take for the clear position that these lawsuits are without merit and intend to.
Defend ourselves vigorously.
Of course, this does not guarantee that we will be successful in doing so.
That goes to the request for an injunction to stop our sales activities as already been largely rejected by the court but.
With the call commodity, stating that powerful until I might not use any documents or inflammation day life form documents that originate from do so.
Contrary to German conventions legal costs in the U S. So generally not borne by the losing side. So that biopharma sales I'm must continue to expect substantial legal costs in the coming year, which will not be reimbursed to the company, even if the outcome of the tireless positive for biopharm tail.
On the other hand, we dropped our own lawsuit against to sell last year.
<unk> business practices for largely discontinued baidu. So following an investigation of the department of Justice and the legal costs incurred for not.
Therefore have been disciplined pitch.
Towards the added value.
The holding of the Cologne higher regional court regarding the action for an element felt by the volatile group.
Hence the resolutions of the 2017 and Joe General meeting was set aside for the Federal Court of Justice referred back to the credit on IL Regional court for a new healing and decision.
The decision on the action for non meant against the resolutions of the 2019 annual General meeting is still pending.
Our lawsuit against the volatile group and Mr. Sue Us in New York.
Currently suspended due to the mediation process between the two parties.
The ruling of the Cologne Regional court regarding the action for an argument.
<unk>.
By the volatile group.
Sure.
And the second in the.
In the mediation process with the Deutsche Balaton Globe, we asked the U S Gulf playing by mutual agreement for a further extension until the end of August 2021, which was gone to it moving.
Moving to the annual General meeting to August is already a result of these discussions.
<unk>, but also the uncertainties surrounding all other shareholders talk show did not do our share plus any good to.
Despite the successfully completed significantly oversubscribed capital measures the chefs pause has not yet been able to discover sustainably.
However, we would like to solicit or confidence that we have strategically positioned <unk> as the best possible way to generate sustainable growth.
<unk> has suddenly hit us hard on the sales side in the USA. So that we have not yet achieved the planned sales goals and thus also the financial independence of bio for Taylor. However.
However, we have not abandoned the path to this goal.
Now you have to slow down the pace. So that we remain fully convinced bolt of all products and of the sales activities that aim to tap the enormous potential.
We expect to significantly coupled of the channel that economic situation in the course of this year.
And subsequently we want to continue our steep growth from 2016 to 2019 in a seamless manner.
Finally, we would like to express our sincere thanks to our employees, our supervisory board and our shareholders for their commitment their support and loyalty to the company.
I would now like to open the line for questions. Thank you.
Thank you Tim book will now begin the question and answer session.
You have a question for us.
Yes. Please.
Zero and one on your telephone keypad now Tim for the team.
What's your name has been announced you can ask a question.
Just trying to your question is answer just yet.
You can down the road and to call for your questions.
If you are using speaker equipment today.
Thank you for.
For Nexgen.
Zelman please for the first question.
And we proceed to Jeff's question that is from Jeff.
Jackson of the benchmark company. Your line is now open. Please go ahead.
Hello, and thank you for taking my question I'd like to start with the United States marketing strategy. Originally the idea was to go out and capture more share within the photodynamic therapy market and and then trying to make some inroads against climate there.
Is that still the general idea.
Yes.
These two ways 222 goals are visiting us suddenly not exclusive and to an extent.
Both followed up at the same time however.
The major focus is.
Indicators on getting additional market share within the BDC sector, and then growing the.
PTT sector.
Into the into the larger AK space.
So basically go after the low hanging free and then.
You need to expand with best in class therapy.
Exactly.
Yes.
And then a follow up question if I may on the.
The approval for the use of <unk> in our labelled when do you expect to get the FDA labeling and debt. After that do you have to go back to the key payers to get the clinical policies updated.
Hum.
We hope to get the FDA labeling in the course of this year.
Hum.
And then with the with the changed plus clubbing inflammation. We will have in principle, we will have to go back to the payoffs. However.
However, while the FDA process is ongoing we do plan to initiate discussions with the with the pay us basically in parallel to the FDA process.
Okay, great. Thank you very much for taking my questions.
Thank you for us.
Thank you for your next question is from Thomas Flaten with Lake Street capital markets.
Please go ahead.
Great. Thank you for taking the questions I just wondered if you could qualitatively and perhaps even quantitatively explain what are the factors that would drive the guidance towards the lower end versus the higher end, obviously, an easing of the pandemic, but more specifically what are some other factors youre looking for and zero debt.
Timing associated with that I know you said second half, but I was just wondering if you could give us some more color on that on that guidance range.
I mean, it's quite obvious that the lower end of the of the guidance.
As close to last year.
The higher end is close to 2019 prior to the pandemic. So it's.
Clearly our hopes up.
In the course of the year.
We'll be able to get back to where we would be for the entire pandemic started and then continue the growth comes out in a similar way that we go.
In earlier years.
And all of the driving factors.
We usually.
The way in which our first of all the.
The immunization and vaccination program in the U S. Most importantly in the U S for us.
[noise] continues.
This develops across quite positively as we all know.
Hum.
And then as a consequence of that how fast the society.
Those back to talk to them to be much more open again similar to where it was before.
Before we.
If I had to put that mix.
Hum.
And particularly the second part is a little bit of an unknown because so many of psychological effect us.
Included in that.
To which extent for instance people, who <unk> just feel safe.
So I think all the data suggests that they should feel safe, but that doesn't necessarily mean that they do.
So we have some some unknowns here that could delay.
The society from getting back to normal volume.
Certain time at this time of cost kind of half of them.
Quite some influence on our oil sales in the course of the year.
It won't have an influence in the long term development of the company, but particularly this year.
It could shift.
Could shift sales to.
Towards the higher auto policy.
Low end of the of the forecast.
Okay. I appreciate that thank you and then with respect to March you you mentioned in your release last week as well as on the call today that there was a significant uptick in margin, particularly in the second half.
I was wondering if that was was that just sales that came in.
It is a surprise but.
For those sales associated with increased rep access or what are you hearing anything qualitatively from from the sales reps about physicians driving more patients and I'm. Just curious if you could provide some color around what the factors were that drove March the way that the way that it successfully came through.
Yes March.
So for growth in March is already an indication of them.
The society opening up.
When we look at the at the sales in March they all saw.
Certainly better than they were last year, we published by anybody.
Compared to last year, a 46% growth.
So they were not as good to us in 2019, so there's still room for growth.
Got it and what are you hearing from your sales reps with respect to access have they have they started getting back into offices more than they might have been at the beginning of the year.
Hum.
Absolutely yes.
We see we see an opening of the offices.
Again.
Not back to 100%, but compounds two in January and February uncertainty certainly last year.
We do already see an improvement.
I appreciate you taking the questions. Thank you.
Thank you.
Thank you. This is just a follow up question of Bruce Jackson. Your line is net income Scott.
Hi, Thank you for the follow up question I wanted to talk about Zappy briefly which is a.
For you well differentiated drug, but the first time.
That came onto the market there were some issues with the way, it's the reimbursement with structured so in the course of the upcoming relaunch.
Have you have you made any changes to the.
Matt the structure to make sure that the drug is readily available.
Yes.
Well first of all.
Achieved agreements with.
Basically all the Lanzhou pilot.
Payoffs in the in the U S system.
Such that about half the U S population Nuggets.
Access to.
To.
Took cepheid.
On the restricted means there isn't any kind of pre approval process.
Of the.
For two to tie up at Oxford.
However, there still.
They can do you still have coal payment by the patients.
To alleviate that we have introduced a copay cards.
Such that the financial burden on the other patients.
Hum.
As.
I think not value highest for the patients the patients pay $35.
So I think thats acceptable, we'd be acceptable to most patients.
First of all the the reimbursement by the private pay us plus on the co pay card.
That should allow you to actually growth.
The problems that we see with <unk>.
This is a result of.
Hum.
Market Research studies that we did.
It is.
For the.
The awareness of <unk> within the medical community is still very low.
Which is good.
Good news actually.
Because because it's something that we can book.
It's much better for that and.
The result being debt.
Any problems that doctors see with low Doc.
Just a lack of a wellness that's probably the best the best things other marketing group can actually.
Got it as a starting point.
Alright.
That's helpful. Thank you.
And then just one last question not to belabor the point on the market recovery Bye.
When do you think you might return to the 2019 sales levels.
What we do certainly hope that the.
Until the middle of the year.
The major impact of that.
The pandemic is over.
The second half of the year would be back to that.
Alright, Thank you very much.
For good.
Thank you.
Other questions I would like index.
Thank you everyone for joining today's call.
And.
Enjoy the rest of your day.
Thank you all very good margin for.
For taking the time.
And talk to you next time.
Alright. Thank.
Thanks for everybody.
Ladies and gentlemen, thank you for your attendance. This call has been concluded you may disconnect.
Okay.
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