Q3 2021 OPTIMIZERx Corp Earnings Call
[music].
Good afternoon, and thank you for joining optimize our ex corporation's third quarter fiscal 2021 earnings discussion.
With us today is the Chief Executive officer of optimize Rx William Fever. He has joined my company Chief Financial Officer at stomach, President and Chief strategy Officer Marianne Paramour.
Chief commercial officer, so Stephen so that stroke executive Vice President of Finance and accounting, Doug Baker General Counsel, and Chief compliance Officer, Maryanne, and sports and senior Vice President of corporate Finance Andrew to silver.
Before we conclude the earnings call I'll provide some important cautions regarding the forward looking statements made by management during today's call.
I would like to remind everyone that today's call is being recorded and will be made available for replay via webcast. Only instructions are included in today's press release and in the investors section of the company website.
Now I'd like to turn the call over to optimize our ex CEO William D. But Sir Please go ahead.
Thank you operator, Hello, everyone and thank you for joining us today.
As you already witnessed from our performance in an incredibly exciting year Oh Gee that includes all members of our company clients and all of you who are invested in Michigan rewarding journey we're on.
Improving patient care and adherence through technology.
I'd like to begin today's call highlighting optimize our most valuable asset our people.
We've continued to invest in our people, adding to our rank some of the best in the industry.
Can you driving strategic scalability sustainable growth.
As you know from our recent announcements.
<unk> recently joined us as our new CFO in Seattle.
It comes to us with extensive financial and operational experience at multiple public pharmaceutical companies implementing strategic initiatives, helping to grow business lines specialty medications, which is optimize our core focus.
Also very happy that does basically remains with us as executive Vice President of finance and itself.
Transition is a testament to Doug steady guidance through our first phase of significant growth, which has positioned us with a strong foundation to build the top of our accelerating momentum.
Along those lines, we recently welcomed Andy Brazil, as senior Vice President Corporate Finance, Andy has over a decade of equity research and capital markets experience and a solid track record as a top industry analysts.
He is focused on supporting our strategic growth and capital markets initiatives.
The continuity of our personnel was one of the most important elements and managing the acceleration growth.
Industry adoption of our business, while playing a pivotal role in the fulfillment of our mission, which is to create a more informed and empowered healthcare community by developing new technology solutions that help people start and stay on life impacting therapies.
This convergence between team technology and point of care.
Which is the driver of optimizer actually success and revenue growth.
Revenue this quarter grew 53%.
And with the additional members of the team that we brought on in recent quarters. We are positioning ourselves for a second strong phase of growth.
To date, we remain disciplined with regards to our operating strategy.
To focus on closing the deal at hand through the remainder of the year.
With 182 live brands on our platform up from 140 in Q2.
Can you to contribute to our customers' performance with updated average ROI of 13 two one.
As we've mentioned before this is measured by a third party that's $13 our clients make that for every dollar they spend on the optimize Rx platform.
We've also continued to enhance our technology and expand our network, particularly in core growth specialties, and recently signed a new partner that materially expanded our oncology and hematology reach to the majority of the U S specialists.
We can say without question that 2020 in 2021 had been pivotal periods that has accelerated our technology enhancement and the platforms adoption, which has been driven through the creation of innovative best in class technology solutions for life Sciences at the point of care.
And despite tracking ahead of internal expectations, we're still in the very early innings of the industry's digital transformation and their increased adoption of innovative technologies that improve patient outcomes and provide strong rois.
According to E marketer.
Fears pharma health care and pharma AD spend alone was a $9 5 billion in 2012 of them.
This really speaks to just how much white space. There is in the industry for us and is a free because we've made the strategic decision to opportunistically expand our teams with numerous high quality professionals across the entire organization.
We believe the ability to attract individuals of this caliber and a very tight labor environment is a testament to the magnitude of our market opportunity as well as our positioning within the industry.
Since I joined the company economics, and say I've never been more confident in our ability to capitalize on our mission statement and market opportunities.
When taken together, we've recently increased our focus on building optimize our access infrastructure for <unk>.
Beyond the next 12 months well.
About 2022 is already shaping up to be another record year. Many of the new additions to our team had been put in place to position us for growth in 2023, and even more so in 2024 and beyond.
We're seeing a rapid paradigm shifts in where spending is being allocated that provides our company with significant long term growth opportunity.
When I think back to when we founded optimize our exiting 2016, we decided to build upon the success of our financial messaging solution to unlock the intrinsic and undervalued work of our unique network of electronic health record partners.
With that as strong as a strong foundation, we have evolved what was once one product into a sophisticated multichannel technology platform connecting our clients to the majority of the U S health care providers and millions of patients.
Our newer mission became clear.
Leverage the power and unparalleled connectivity and reach of our growing network to connect physicians and patients with the tools and resources that empowered them into managed care.
Ultimately their health.
The results, we continue delivering attest to how invaluable it's an activity of our proprietary network has proven to be to our clients.
While we've driven extraordinary growth since our refounding another point of reference, but I am extremely proud of is how quickly we were able to successfully diversify our top line that's financial messaging one for nearly all of our revenue to approximately 25% as of the last quarter, despite showing consistent growth.
Beyond successful unifying a fragmented universe of EHR. We have also expanded the reach of our network to various other digital touch points along the care journey.
Shifts in technology and digital adoption continued transforming the health care industry, our technology platform can seamlessly adapt to the rapidly evolving care journey.
And thinking about how optimize our ex came to be.
Three major underlying health care trends are fueled our strategy product and solution development and also our evolution as a company.
They are one virtualization of both patients and pharma sales rep engagement.
The personalization of patient care in order to improve patient outcomes and three the segmentation of data to enable better patient identification, while helping to expedite therapy initiation.
Our technology platform has proven to be in synchrony with each of these shifts and yet we continue pushing the limits edging out a new frontier of technology can be leveraged to British time gaps in connectivity and information to achieve better patient outcomes over.
Over the past year, we've made major strides, helping our clients achieve great success data segmentation through our real world evidence solution what sets us apart is our innovative approach, we're applying predictive analytics to critical data in real time, allowing us to design custom algorithms that enable our clients to proactively support.
Physicians as they work to identify patients who qualify for their therapy and navigate patient access complexities.
That in turn translates to getting patients started on therapy sooner.
And increasing their chances of positive outcomes, while also contributing to the life Sciences commercial success.
While still very early we keep beating the drum Navarre, our WB solution.
Because it has all the characteristics of becoming a game changer for the entire healthcare continuum and of course for the company and our shareholders.
Our solutions individually and as a whole have been purpose built to solve complex connectivity and communication challenges for our clients and we firmly believe that <unk> will be critical to the success of menu brands across many indications, particularly specialty medications.
For example, it's worth calling attention to oncology, which is the fastest growing therapy with a projected $153 billion in sales by fiscal 2026. Our pipeline is now comprised of about 20% oncology.
But beyond oncology there are many indications across specialty therapies that require a complex decision, making processes that support to identify eligible patients. So that's the appropriate course of therapy and ultimately empower people to obtain and stay on therapy. This means physicians are looking for much more.
They can as quickly as they can get it during critical and time sensitive points and the care journey in order to provide patients with the best treatment plants.
This is a big responsibility, which is why we spent so much time listening and collaborating with our customers keeping up to date on research and trends among patients and providers in order to not only to meet but stay ahead of the curve with the future needs of our clients.
That is why and how we are continuously evolving our technology and product mix to enable engagement among our stakeholders are critical junctures throughout the patient care journey.
The strategic integration of our careful technology across the points of care is what allows us to generate sustained repeat revenue from brands that we service.
So as you can tell from our oncology example, growing our revenue has been in lockstep with listening to our clients needs to support the commercial brand strategies. Our personalized approach is what has allowed us to be remain sticky embedded strategic partners to our pharma clients.
Although we are still very early stage.
Corporate journey, it's important for us to continue to take stock of the transformation that optimize Rx has experienced these last few years, especially as we gain critical mass and continue to expand beyond our origins.
Also have a strong war chest and are able to act nimbly to capitalize on opportunistic accretive strategic initiatives that complement our platform and growth strategy.
Our corporate profile is certainly evolving as is our commercial team strategy and this is something that we will continue to ramp up over time in the near term the corporate planning process for 2022 has begun and we look forward to continued growth and innovation across solutions partnerships and strategies.
Ed will delve into the quarter I want to remind everyone on the call that we remained cash flow positive from operations for the first nine months of fiscal 2021.
Customer traction continues to be strong and our clients are seeing an average ROI of 13 to one with some clients exploring much higher.
With that I'd like to turn the call over to our CFO, Ed Stelmach, who will walk us through the financial details for Q3.
Ed.
Thanks will and good afternoon, everyone as with all of our calls a press release was issued with the results of our third quarter ended September 32021.
He is available for viewing and may be downloaded from the Investor Relations section of our website.
We also filed our 10-Q today.
Turning to our financial results for the third quarter period ended September 32021.
Our reported revenue for the period was $16 1 million, an increase of 50% over the $10 5 million from the same period in 2020.
The increased revenue resulted from growth in sales across all of our solutions gross margin for the quarter slightly decreased from 57% in the year ago period.
The 6% and a growing period.
This is a result of solution mix.
In general there has been an increase in the percentage of activity.
Going through our higher cost channels compared with a year ago.
This was offset by the launch of our <unk> solution.
Our <unk> solution.
Much higher percentage of program design, which carries a higher margin than the.
The liberty of actual messages.
We expect our gross margin to remain relatively constant for the balance of the year.
Operating expenses increased to approximately 9 million in the third quarter.
Year 2021.
Baird to approximately $6 2 million in the same year ago period.
The increase in operating expenses related to salaries wages and benefits and other human resources related costs.
Due to the expansion of our team to support future growth.
Through the end of September would have had very few new people. This year largely in areas focused on increasing revenue.
This increase is partly offset by the decrease in contractors and consultants as we can.
Both functions in house that were previously outsourced.
As we have demonstrated over the last five years, we're very good at knowing when to spend on people.
Rab growth.
The board the service, our clients and partners and acquire.
And be in the market with innovative solutions to solve significant problems.
We delivered net income of 40000 in the third quarter of fiscal 2020 one.
<unk> to a net loss of approximately 300000 during the same period in 2020.
For further details you can refer to the MD&A section of our published 10-Q.
Overall, the net income for the third quarter of 2021 and.
And decrease the loss for the nine months period resulted from the increased margin generated by our higher revenues.
Partially offset by the increased.
Operating expenses.
On a non-GAAP basis net income for the third quarter of 2021.
Approximately $1 6 million or nine cents per basic and fully diluted share.
As compared to non-GAAP net income of approximately $1 1 million or seven cents per basic and fully diluted share.
The year ago period.
Now turning to our balance sheet.
Cash and cash equivalents totaled.
<unk> 5 million.
September 30 of 2021.
As compared to his viewpoint amendment as of June 32021.
Within that anticipated the need to raise additional capital in the short or long term for operating purposes or to fund our organic growth plans.
We're focused on growing our revenue and partner network.
However, as a company in the market that is active with merger and acquisition activity.
We may have opportunities such as for acquisitions or strategic partner relationships.
Which may require additional capital.
We will assess those opportunities as they arise with a view of maximizing shareholder value.
This wraps up the discussion of our financial results and now I'd like to turn the call back over to will.
Sure.
Thanks, Ed.
I just wanted to say that it's an honor and a huge responsibility for our team at optimize Rx to play such a critical role in connecting health care stakeholders by leveraging technology and innovative ways.
We believe that our technology platform and solutions are not just significant for our clients' ROI, but meaningful to stakeholders affected by our platforms on an everyday basis, including providers and patients.
We are committed to remaining true partners to our clients continuing to evolve and mature our solutions to drive commercial performance over the medium and long term in line with the major Digitization paradigm shift across health care.
We're also fortunate that our business continues to operate outside of the current macro headwinds that are impacting the labor market and the supply chain to many industries, which positions us to maintain a strong growth trajectory in Q4, 'twenty, one and into 2022.
With that we'd like to open the call to your questions operator.
Thank you if you wish to ask a question. Please press star one on your telephone and wait for your name to be announced.
If you wish to cancel your request please press star two.
If you're on a speakerphone please pick up your handset to ask your question.
Your first question comes from Ryan Daniels with William Blair. Please go ahead.
Yeah. Good evening. This is Jared haase in for Ryan Thanks for taking the questions and congrats on another good growth quarter.
Just wanted to ask one just around any updates you can share on the size of the pipeline at this point Im curious if theres any color you can share either on the number of enterprise deals in the pipe or anything around HCV or the sort of close our win rate in the quarter.
Hey, Jared thanks, Thanks for calling in.
Yeah, obviously still early in that in Q4 in the RFP process, but let me hand, it over to Steve Sylvester, Our Chief commercial officer, who Mcs that entire effort Steve.
Thanks, well, Hey, Julien how are you. Thanks for the question.
The pipeline side continued growth as you know we share a pipeline that's a rolling 18 month pipeline, but we did see growth from $1 40 to $2 18, which was very encouraging.
Through the period.
In spite of the execution. So we continue to execute well and the pipeline continues to grow.
The close rate, we've seen is as consistent between that $35 50 that we've been seeing throughout the year in parts of last year.
And then on the enterprise side, obviously, you know we announced we closed an additional 11 deals so it's.
It continues to be a focus of both the commercial team as well as the product team.
And you heard will cite earlier, a really healthy 13 to one ROI that is being driven by the increase in enterprise engagements, where we've got multiple solutions on the platform, helping provide better outcomes on the patient side and ultimately better results for our clients.
Got it yeah. Thanks for that and maybe could you just clarify I think I heard you did you say the pipeline is that to 18 now it's up from $1, 40% did I hear that right.
That's correct.
Okay.
Gareth.
It was about 100, Jeremy was $140 million as of last year. This time, so it's up to 218.
About 50% increase year over year.
Perfect that makes sense.
Yes, thanks for that color.
And then if I may I just wanted to sneak in another another follow up here.
I think you've touched a couple of times in the prepared remarks about some of the hiring that you guys have done on the operational front.
Just two quick ones on that theme.
I would appreciate any commentary you can share just about your own internal efforts sort of around culture.
<unk>, an attractive place to bring in talent, obviously, we're hearing from a lot of companies in the space about challenges challenges with hiring and some companies are having issues filling positions and things like that so we just would love to hear any any sort of efforts that you guys have done internally to help bring in that talent and then secondly related.
To that point should we expect to see a little bit of an uptick still in Q4 from an Opex standpoint, you are there still more hires to go just trying to get a sense of how to think about sort of a good run rate, but when we think about 2022 at this point.
Yes, Sara so culture, it's an art not a science right and.
It really is focused on it since we founded this company six years ago and that is.
Based on a couple of principles, one everyone's an owner and so if you want to be here, it's going to take a ton of work.
Early days, you get to work harder and be paid less and if it works it'll it'll work out boy is it worked out for a lot of us.
So I think what you what you find is that that we attract people.
From other People's networks, because everyone here is part of it as an owner in the business and I think that makes a material difference. Okay. So that's that's sort of a foundational issues that we started early and we've been consistent with that.
The second is the.
Our industry, we're one of the fastest growing company.
So that will attract people who are competitive and like to be where people are winning and so you put the network with the combination.
And then we've really not a micro manager in any way from a meter.
Leaders who could.
Many of them could just take my job if they needed to if the company need to do and as a result, a higher leaders leaders always hired leaders and so we've got a real leader culture going on here and as we talked about it in this market where there are a lot of options. There are hundreds of new public companies that are.
Trying to become companies grabbing people.
We have not had an issue a matter of factory, we've had to be selective and I think that will will show a really big impact in the out years relative to Q4.
I think you've seen our sort of our new state.
It's remarkable, but obviously I've spoken to a lot of investors over the last six months.
Most all of them have said.
If the if you're so early in the opportunity is so big don't hold back on three particular on the commercial side. So we will continue to do that obviously as you actually execute against that you've got to make sure you're you're servicing it.
Good news is we still have a technology platform, that's highly Leverages Bowl.
Just making sure as we get into the second wave of growth that we referenced we've got the right team in place, we really feel like we do.
So Q4 is mostly focused on getting the year close.
Prepping for another great year.
Got it thanks will appreciate all the color and I'll hop back in the queue.
Yeah.
Sure.
Your next question comes from Sean Dodge with RBC capital markets.
Thanks, Good afternoon, and congratulations on another great quarter.
Maybe just start Steve the new Enterprise deal you referenced you said closed 11 more of those during the quarter can you share what the annual contract value is it just those 11, you had I think $57 million of those signed coming into the quarter, where do you stand now.
Hey, Sean Thanks for the question.
Be glad to report the ACD has gone up from $1. One previously reported to 1.3 as an average ACB on these agreements. So we're starting to we're continuing to trend in the right direction would be on the enterprise deals.
Okay and then.
I guess, if we look ahead to the fourth quarter is there anything you can give us around the visibility you have right now when it comes to the buy ups I know last year. It seems like it was a little bit of an unusual year when it came to that type of activity.
Do you have good visibility on that yet is there anything youre seeing that would point to this being another unusual year, maybe you could just give us some sense of how you see that kind of unfolding.
As we kind of entered December here.
On gross margin.
Yeah, Shaun it's so.
A R. W. E solution still entails the delivery of a message like and we have a solid rock sure without partners on that.
Any kind of architectural work does not get where we're early days on that I believe over time. It will have a you know anywhere from a 1% to 2% improvement on an annual basis, it could be higher but but remember. This is this is the using the network to deliver.
A message or just doing it using AI. So still has a rough share just some.
The setup revenue is not is higher margin revenue for us.
Okay.
That's a very helpful. Thanks, and congratulations again.
Thanks shop.
Our next question comes from Act Matinees, even like state.
Congrats on the revenue if I had one thing to pick out in Q3, though it would be on the expense side and I know you guys don't get guidance, but I misfired by about 1 million Bucks can you give me either.
Or will the head count exiting June and then the head count exiting September.
Hey, Eric.
So I'm going to pass that went over to Andy He's been cover on that for us.
[noise], yeah, so [noise].
[laughter].
Opex increase roughly 17.3% or $1.3 million sequentially.
And that's really driven again by increased hiring that took place during the year. So on a net basis, we added 16 new employees.
From the start of the second quarter until the end of the third quarter and that accounted for when taking the account stock based comp roughly 62% of the overall increase in opex. The other parts of the SG&A that increased or really tied to teeny, we opened up for travel.
And also part of that was tied to increase this office related expenses as we brought in new hires. So if you're looking at how we think about the fourth quarter, excluding stock based compensation I would figure that looking somewhere between 700000 to a million dollars.
And increased Opex, and that's really going to be the fully baked and impact of new hires during the third quarter and then some of the additional hires that we made in the fourth quarter, which includes Ed.
Okay and the.
The.
It started a second to end it Sir what is what was our headcount either end of September end of October what's the latest head count.
[noise] 90 strongly.
Yes it.
It was like 86 to 93 or something like that yeah.
Yeah.
Yeah, that's a good a good good data points to think about is you're thinking about that the increase our revenue per head.
It's up there with the top 20 technology companies so.
We really looked at it obviously, we're hiring for growth not for maintenance [laughter]. So.
We opportunistically took advantage of the market our position in the market. The culture, we have and we were able to bring on just a spectacular people. So really excited about that.
I feel like the the.
The investors will to us as we continue to build in the out years.
Okay.
I'm Gonna run with 93 since I Undershot last time.
Trying to be a little more conservative this time, so that was backward looking.
Wanted to focus on queue for I know one of the cars.
Cars.
Had some questions regarding.
Four Q4, I was going to come at it a little bit differently a year.
Your ago, we saw about it nearly 6 million step up between Q3 revenue in queue for revenue.
You are to date your growth has been terrific you are running at 52%.
Year on year, but obviously, the account's got a little bit tougher here with Q4, So just directionally from 16 million base in Q3.
Looking at a 21 million consensus number for Q4 is that in the ballpark with what we would expect and what happened last year and given the demand now.
Like like Steve said, so a little early to predict by ups, but I'd say just based on our core business, we feel really good about business, where it is marble deliver.
The last year was just strange right no one knew the year was going to hit us the way it is in.
In terms of our clients this year going in.
Plan for it although no one planned for it to be as disruptive this late year.
So.
If I put all that together I am going to say there's probably.
There's probably excess budget out there too early to call a error, but we feel good just the core business by itself.
Okay.
And lastly, and maybe this is Steve but I'm curious.
I don't have a great track record of understanding sort of the sales cycle around real world evidence versus and affordability sales cycle of this.
Does it does it come out in an RFP form factor.
The difference between a financial messaging sales cycle in a real world evidence sales cycle is there a lot to talk about their or is it kind of pretty similar.
[noise], hey, or a Google forward you to hear your voice.
Thanks will.
It's a little bit of a it's a little bit of a faster sales cycle, Eric it's not dependent on RFP.
But it is a little bit longer than execution cycle because of the modeling that takes place at the initial the onset of the program launch so the speed to revenue was roughly the same even though the sales cycle is a little bit shorter because you do have to architect a solution before implementing it.
Okay and then the the the manpower that we've talked about here in Q3 are you guys.
If that manpower expense for an R. W. A is that part of our cost of revenue.
On the Opex site that part of the Opex around.
[noise], yes that would be part of that happening.
Yes, yes.
The majority of that will be in SG&A.
Gotcha.
Thanks for taking my questions and good luck in queue for.
Thanks, Sir.
Once again, if you wish to ask a question. Please pastime one on your telephone and wait for your name.
Your next question comes from Mark Clattenburg would be badly securities.
Thank you good afternoon.
As the data landscape continues to evolve I'm wondering if you could talk about the company's ability to incorporate both structured and unstructured data and how you linked the multiple datasets to provide insight for your stakeholders.
Yeah, Hey, Mark.
I hear Ya.
It's interesting when we first.
Started realizing the value of this platforms.
We really didn't.
Drive a lot of the decisions with data right. It was the ability to connect it addressed a huge challenge for our clients and.
And we had a great network partners, but as we've grown and invested in the business and organized.
All the transactions, we facilitated over the years and then obviously brought it in great people and it all comes down to great people.
With different perspectives within the health World. It was clear that we could use data on lots of fronts, one to build business cases for our clients.
To to measure return on investment and our clients.
And then and then as we really got sophisticated and I'm going to hand, it over to Steve because he's been the architect with a few other people on this is we could actually see a way of using data to enable a real time.
Action at point of care, which has never been able to pinpoint and very powerful and I'm going to ask Steve also just to.
Answer your question a little bit continue what I'm, saying, but also give a specific example, an oncology, which I think will be meaningful to.
The group.
Hey, Mark Thanks will.
Yeah, I think it's an excellent question Mark and Super Astute I think what we're trying to do now is leveraged the interoperability that we've created between these disparate data ecosystems to.
To be able to help physicians identify early juran patients that would qualify for therapy and then obviously, we have the tools already in place to Hell onboard those patients with affordability and adherence and all the other stuff that we've traditionally done.
In the oncology arena specifically.
We've got a.
A program running for Triple negative breast cancer that is is not it's an ill defined indication. So there's no code inside of most of these systems that would identify a patient as a triple negative breast cancer patients and so we've worked with some with the manufacturing partner to be able to create a criteria.
And algorithms to be able to search the ecosystem of patients to help find those patients and then notify the physician that these got a potential patient that would qualify for those therapies.
Rhythms the rigor.
That they have and the platform allows us to essentially surf network or ecosystem of data.
An individual patient level, which is unique.
And then taken action immediately with the physician to a disposition and helping the patient and I think that's what we're most excited about in the case of this specific therapies.
It's six to 12 months improvement and the patients overall survival, which is a massively meaningful achievement and the license of cancer patients. So it's something we're really passionate about very proud of.
Definitely more to come Mark but early days.
Really exciting.
Okay.
Very well thank you all right.
Two more for me.
What percent of the brand that you are currently working with do you think are ideal for your real world offering and then within the pipeline can you provide any insight into.
What percentage are looking to leverage the world World evidence and and have you expand how can you proactively expand that universe.
Yeah. So.
It's a good question obviously, we've got a lot of brands we've looked at the obviously segment them before we even go after them and so first off all our brands are highly relevant all have significant.
Marketing budgets and meet real needs of patients.
Secondly.
It's it's really critical that.
There is a clear ability to find an additional prescriber or is it.
Just described bring.
Bring a patient to the surface of that decision.
And.
I would I would normally not say all our branch.
Given the pandemic in the amount of disruption that has happened with just the connectivity between the manufacturers and hcp's patients.
There really isn't a brand that doesn't need help finding and highlighting these things doctors are busy they are on their computers or dislocated people were wearing masks.
Chaotic so I really think we've got the ability to bring it up now at scope and scale. They're all relative some are not complex and some are very complex, but Steve you want to add anything to that.
Feels like there is a role a little bit for our delivery and everything but.
Obviously different levels.
Yeah.
Yeah, well I think that's exactly right Mark I think as you you think about the.
Curation of our pipeline and some of the stuff, we've already said sort of opening around the 20% of it being oncology.
A good portion of it moving towards specialty ultimately what that means is that there are higher degrees of complexity in both identifying the patient as well as onboarding them getting them on the right therapy, and then driving adherence to make sure the proper outcome.
And so all of those complexities lend themselves to a real world evidence inculcation.
In the in the program.
And so I think as well said, we wouldn't say, it's every single program, but the vast majority of the programs that we're looking at and as we continue on.
Focusing more on specialty in oncology I think you'll you'll continue to see that are dubuque follow suit because it's necessary to.
To drive the Roy that the clients will be looking for and more importantly, it's necessary to be able to help find the correct patients.
Which is the is the biggest challenge right, it's the clocking of it.
Especially oncology where.
Every minute counts talent for patients.
Sure sure very helpful color and then just the final one as we're moving through the Delta Serge I'm wondering if your discussions with customers.
And they're talking about and their allocation of resources between digital and more legacy channels has changed at all and then along those lines Ed before coming to optimize our X you are on the other side of the table at a life Sciences company. So I'm wondering how your perception of the companies change now that you are able to see behind the curtain. Thank you.
Yeah, actually I'm going to pass the whole set of questions over to Ed I think Kiki has it really fresh perspective can speak to otsuka put I think in the market again, and then let him speak for himself.
Thank you thank.
Thank you.
Mark how are Ya.
Yeah, I would say generally speaking.
Over the last two years that have been quite a shift and how far more exiting engages in the commercial space as well as R&D.
Rebel.
The first thing Vigital is no longer just going to be some great.
The new way of doing business in.
From my perspective.
I think that's kind of going to be here for the long term.
Secondly, farmer typically comes out a strong core capability herself working really win.
Technology is gardening has not been that area.
So in my view as we move forward with a digital adoption.
Aquila recently that adoption I think farmers willing to partner up with those.
Or more.
Capable of providing that kind of service and that kind of technology technological insight to drive their upbringing muddle.
Forward.
And third I would see scale and going to matter.
I'm going to buy.
You can imagine.
Doesn't have the ability to buy.
Technology and digital.
It is and it's more bits and pieces with going to want to go through.
Kind of a month's stop shop, where you can buy a lot of people.
Abilities.
Kind of discredit open.
So those companies that can scale and the speed.
The long term winners.
I think in this new way of doing business.
And in front of my perception is concerned I would see all my expectations, except so far been macro exceeded.
I think if it really innovative company with a very interesting.
Competitive position that there's going to be quite attractive requirement.
The new operating model emerges.
Okay well.
Well, thank you for that and.
It does thank you perhaps on a good quarter.
Thanks Mark.
Like that.
We are showing no further questions at this time I will now hand back the closing remarks.
Well. Thank you everyone and we look forward to seeing you on our next earnings call I'll be talking to many of you through the industrial conferences inside a Q4.
Stay tuned and we appreciate your time and belief in us as a team take care.
Alright that concludes our conference for today. Thank you for participating in my math disconnect.
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