Q1 2022 Jaguar Health Inc Earnings Call
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Before I turn the call over to management I'd like to remind you that the man that management may make forward looking statements relating to such matters as continued growth prospects for the company uncertainties regarding market acceptance of products the impact of competitive products and pricing industry.
<unk> and product initiatives, including products in the development stage, which may not achieve scientific objectives or meet stringent regulatory requirements are forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward looking statements. These statements are based on currently available information.
And management's current assumptions expectations and projections about future events, while management believes that the assumptions expectations and projections are reasonable in view of currently available information you are cautioned not to place undue reliance on these forward looking statements. The company's actual results may differ materially from those discussed during this.
Webcast for a variety of reasons, including those described in the forward looking statements and risk factors sections of the company's Form 10-K for the year 2021, which was filed March 11th 2022, and its other filings with the SEC, which are available on the Investor Relations section of Jaguar's website X.
As required by law Jaguar undertakes no obligation to update or revise any forward looking statements contained in this presentation to reflect new information future events or otherwise.
Please note that the company's supplements its condensed consolidated financial statements presented on a GAAP basis by providing gross sales non-GAAP EBITDA and non-GAAP recurring EBITDA Jaguar believes that the disclosure items of these non-GAAP measures provide investors with additional information that reflects the basis.
Upon which company management assesses and operates the business. These non-GAAP financial measures should not be viewed in isolation or as substitutes for GAAP net sales and GAAP net loss and are not substitutes for or superior to measures of financial performance in conformity with GAAP Today's conference.
It is being recorded at this time, it's my pleasure to turn the call over to Lisa Conte Jaguar Health's, founder President and Chief Executive Officer, Lisa the floor is yours.
Thank you.
Mary.
So I'd like to welcome all of you just heard my name is Lisa Conte.
I am the founder President and CEO , I Love Jaguar Health and our wholly owned subsidiary in the United States Napa, Oklahoma Physicals.
Also the chairman of the Board example, Therapeutics The Corporation, we established in Milan, Italy last year, too, which we granted an exclusive license to cross selling there in the European territory.
Specifically <unk> is initially pursuing our rare disease business model based on the orphan designation of cross selling or for short balancing which I'm gonna referred to as S. E. S. Throughout this time.
Where is the majority shareholder of Snapple, Sarah providing equity interest value to Jaguar as well as the typical license terms, which we'll talk about at the moment I'm going to begin today with a few brief update.
And then you can realize that Jaguars, Chief financial Officer will provide a recap of key financial results for the first quarter of 2022.
You'll hear from Carol.
And I'm so pleased to steal her thunder at the moment, we are reporting my Kathy net revenue of approximately $2.6 million in the first quarter of 2022 reps.
Representing an approximate 24% increase over my testing revenue in the fourth quarter of 2021, which was approximately $2 $1 million in it.
<unk> hundred and 12% increase over my tests, the net revenue in the first quarter of 2021, which was approximately $1 $2 million.
These increases largely represent important and continuing realization of the benefits from both a financial perspective, and so importantly from the standpoint of improved patient access of the transition Jaguar completed this past January to distributing Mike Hussey who were closed.
With our specialty pharmacies, rather than to wholesalers that resell the product to retail pharmacies.
The transition that has decreased our distribution costs and increased our gross to net ratio.
76%.
In this first quarter of 2021, an improvement from Oh from approximately 27% in the first quarter of 2021, so having the net and the growth track much more closely together in Q1 2022.
After Carol.
Just under I, just though we'll hear from Ian Wendt, Thiago as Chief commercial officer about several new my taxi related commercial initiative that we're very excited about including a telehealth initiatives to continue to educate and third the HIV community.
And about commercial efforts underway for candidly, we see a one or a prescription drugs.
So the treatment induced diarrhea, which I'm gonna referred to as C. I D.
I'm a therapy induced diarrhea in dogs that received and the product received conditional approval from the FDA. This past December and became commercially available to veterinarians and their clients in the U S to provide comfort and relief to their canine patients at the end of April 2022.
Last month.
An estimated 9 million dogs were acquired by the U S households, during the pandemic. According to the American Pet products Association, bringing the total number of dogs in the United States too.
Hundred and $8 million.
Which is roughly one dog for every three unions in the country.
25% of dogs will deal with the tumor at some point, 50% of dogs over 10 years of age will be diagnosed with cancer and addressing C. I E E.
<unk> canine survivability from cancer as.
As well as supporting dog owners in the decision to see cancer care for their dog.
Dogs are remarkably predictive of and similar to the human T. I D situations.
As with human cancer patients dogs go off their disease modifying chemotherapy approximately 40% of the time due to diarrhea, mainly.
These dogs cannot complete their therapeutic dose of chemotherapy because the diarrhea.
Extremely relevant in the dog market, though is the comfort factor for the dog.
A key factor influencing a dog parents' decision about whether to treat the dogs cancer.
And the quality of life for the whole family is a key factor as well.
A dog, losing control on the rug bed count is an important consideration for the family household.
Well, we do not provide guidance, we do feel the total addressable dog civ market could be about the size of the total addressable market for the human HIV specialty market and provides much greater predictability of those gross to net ratios since dog parents are typically paying out of pocket.
For treatment and medication. So we don't have the variability and with charge backs as you have in the union situation.
Education about the devastating impact to the patient of diarrhea in cancer therapy builds awareness, regardless, whether the patient is a human or a dog.
And while we're on the topic of keen on cancer I wanted to take a moment to invite all of you to.
Do the in person special media event and performance in New York City on Monday May 23rd from 12, 30 to 230 eastern time.
Celebrate the launch of the Jaguar health canine cancer take charge initiatives charge is an acronym for canine health and registry exchange. The goal is to establish the first ever U S. Canine cancer National Registry and cancer care index to assess the prevalence and incidence.
Cancer in dogs.
Mission is important because protecting dogs from cancer begins with knowing its impact by greed by type by age by gender and geography location.
We will be revealing data events in the first nationwide Gallup survey of pet owners, which is an important media hook addressing their experience with Cana and cancer as well as the registry itself that is based on the analysis of thousands of canine Medical records anonymous.
Canine Medical records.
Peter.
Let me also provide insights to help better understand cancer in humans and the importance of managing side effects in humans.
In human cancer.
Therapy, you can RSVP online. So this increase in outdoor event on the events and presentations page of the investors section of Jaguar's website or you can RSVP by sending an email to take charge, our SPP at Togo run dotcom.
T O G O R U N dot com if.
If you're not able to join us in person in New York on May 23rd virtual access will of course be available.
This is an event for all interested parties dog owners that marion's veterinary oncologists investors the media anyone who is concerned about addressing and managing cancer in our four legged best friends.
And the event is taking place on the first annual National Canine Kernis canine cancer awareness day national canine kidney cancer awareness day.
Even in Doggie treats will be served in the event will feature presentations by Jaguar.
By collaborating partner Togo run a wonderful PR firm that is supporting this effort.
By Gallup.
Leading survey organization that conducted or National poll, a dog owners debate about canine cancer and from Doctor Sue the famous cancer that who has enormous online and offline following.
And very Excitingly.
<unk> charged launch event will also feature performances by a truly amazing lineup of Broadway stars, who are also dog lovers and want to bring up the awareness to this activity a lineup that we expect to include Academy Award nominated actor and playwright Chad's commentary actress and produce a G on apartments.
Gary his wife actor director and producer Richard Blake Grammy, winning and Tony nominated actress Gen. Colella recently, Tony nominated actress as of yesterday, just shine a bean Broadway after and singer Bobby Conti, who happens to be my son, Tony nominated actress singer and songwriter offer her why her hull.
And Tony nominated actor and singer Andy Carl.
And Broadway after singing rooms on producer menu Maryanne maryanne.
We're very excited about this event it'll be educational it'll be entertaining and we'd be thrilled to have you attend 2022 is jaguar XE or the dog.
Praying for good weather on the 23rd.
As a reminder, cross selling or under the trade name and Tennessee.
Is a plant that is FDA approved anti diarrheal drug indicated for the symptomatic relief of non infectious diarrhea in adult patients with HIV AIDS on anti retroviral therapy. This is the current indications.
So summer is also the.
Our focus for human pipeline indications on the clinical development front.
Each expected to create transformative value for Jaguar and the next 12 to 15 months and this includes prophylaxis of cancer therapy related diarrhea.
And short bowel syndrome, Sps, which is a catastrophic health situations for which <unk> has received orphan drug designation in the U S and the European.
Yeah.
Fulfillment is also the active ingredients by the way and kind of leave you see a one dog product.
Enrollment is continuing for the on target study, our phase III trial of cross selling or for CTD cancer therapy related diarrhea in humans.
We're aiming to complete 256 patient enrollment by the first half of 2023.
As I mentioned during the last web cast on March 14th we are in the process of adding additional clinical trial sites, both in the United States and outside the U S to help insurer patient enrollment despite COVID-19 related restrictions and global unrest and the diversity of the tumor types in the patients.
The successful completion of this pivotal trial will result in a supplemental new drug application filings for the same formulation as the currently commercialized copolymer My Tessie.
The test is of course already approved for chronic use in people with HIV AIDS and has a full FDA compliant supply chain in place from the rainforest to our specialty pharmacy distribution network across the U S.
As a reminder.
And manufacturing are the two most common reasons.
While new drug applications fell hence we spent much care and communication with the FDA in the design and execution of this final clinical and regulatory step two greensville celebrated cancer patients suffering with diarrhea.
It is the most common side effect of cancer patients.
Mentioned, an estimated 40% of patients with CTD.
Can you their chemotherapy or their targeted therapy, they're life saving cancer treatments.
Constant diarrhea.
And this is not your garden variety traveler's diarrhea patients are often hospitalized CTD forgot dehydration.
Electrolyte imbalance and organ failure and some patients have you been died from the impact of the diarrhea during clinical investigation by targeted therapy manufacturers.
Our second core development focus for cross selling them in 2022 is the orphan designated disease Fcs.
We expect an investigator initiated proof of concept studies for cross selling or for SBS and congenital diarrheal disorders C. D D. A rare inherited disease, causing a lifelong intestinal failure.
We expect these investigator proof of concept studies to be completed.
In 2022, and others continuing into 2023.
At sites in the Middle East and Europe .
Supporting the potential for expanded patient access in 2023 to 2023, new programs in Europe for these devastating and catastrophic diseases and health situations for these patients expanded patient access is a reimbursed program throughout Europe .
Sps and CVD clinical development efforts are being led by the skilled focussed and rare disease experience Snapple Therapeutics management team in Italy, Our leadership team comprised of managing director Chief Medical Officer and head of regulatory.
And quality.
As another reminder, we established Snapple therapeutics in Europe , because the European Medicines agency, the EMA committed too.
Equivalent to the FDA in the United States.
Is committed to enabling reimbursed early access to new medicines with orphan drug status.
Underscoring the important unmet medical need.
Patients through early access programs.
Participation in early access program would potentially provide patients with access to <unk> as early as 2023.
And thereby potentially impacting in a positive way theyre morbidity mortality.
And the cost of care for this chronic indication Sps that has no good therapeutic options.
Both CVD in Sba's patients with intestinal failure typically require parental nutrition up to 20 hours a day seven days a week to survive.
Tremendous cost with tremendous accompanying medical complications huge impact on any sort of quality of life.
The ability to decrease the parental nutrition requirement, but even 20%.
It would provide a huge medical and quality of life and proven.
In a typical rare disease business model.
These substantial benefits are highly valued for a relatively small patient population.
Global SBS market of an estimated 40 to 60000 patients worldwide is expected to reach $4 $6 billion by 2027. According to a third party report.
Vision research reports.
Snapple, Sarah operates under an exclusive license to copolymer from Jaguar.
For which Jaguar receives typical license payments, including an upfront payment milestone payments royalties and transfer pricing of cross selling there.
Doug will also receive <unk>.
<unk> of the clinical data generated by Napa Sarah in this case for SBS.
Re cyclically Naples, there ever sees the value and the ability to utilize the CPE the cancer phase III data Jaguar is developing.
Hence the parallel complementary and geographically focused development efforts of <unk>.
These two core indications CTD cancer in SBS with bowel syndrome are progressing simultaneously and collaboratively with dedicated teams, respectively and again, a key advantage of Indianapolis their effort to Jaguar is that Napa there is well over majority owned by <unk>.
Providing potential equity accretion value to Jaguar shareholders and stakeholders, which we believe is unrecognized at this time.
So once again these are the two core pipeline events transforming crossover from pipeline to what we believe will be tangible value in the next 12 to 15 months.
An additional key clinical milestones for 2022 is the filing of an investigational new drug I N D investigational new drug application with the FDA in the midyear of 2022 this year for symptomatic relief of diarrhea from cholera.
And this is for our second generation anti secrets, Corey called Luxembourg.
<unk> is a different chemical election of pro Anthos antigens extracted from the proton, let's Loo tree.
Which is the same tree from which we get cross selling right.
And which we believe defines leftwinger as a distinct product from profiling or under FDA botanical guidance and by the way.
Or has a lower manufacturing cost and cross selling them.
<unk> works by the same novel anti secret <unk> mechanism of action as cross selling or we're planning to initiate a phase one study in the second half of 2022, four as I mentioned, the symptomatic relief of diarrhea from cholera in support of this clinical activity we received comprehend.
So the animal toxicity preclinical services supported by the National Institute of allergy and infectious diseases, and I E. I D. NIH basically four four preclinical studies, which have been completed.
We plan to pursue a tropical disease priority review voucher for luck when they're under the Fda's financial incentive program to develop drugs for tropical diseases, such as cholera.
Good evening doctors are transferable.
In past transactions like other companies have sold for prices ranging from $67 million to $350 million.
And this therefore provides a potential immediate return on investment upon approval of the product <unk> for the symptomatic relief of diarrhea from Colorado.
On the business development front as previously announced.
This year, we entered an agreement at the end of Q1 with Quadri pharma.
Grants quasi pharma exclusive promotional commercialization and distribution rights for specified human indications of copolymer in Bahrain, Kuwait, Qatar, Saudi Arabia.
And UAE.
And Oman, following regulatory approval to market cross sell them or in these countries for the specified indications, including the indication currently approved in the United States for HIV related diarrhea.
In cancer therapy related diarrhea.
For which copolymer is currently as I mentioned in the pivotal phase III trial.
In addition, the agreement grants Quadri pharma exclusive rights to distribute kusama in these countries in the immediate future.
Underneath patient programs.
Quandary has knowledge and experience in the distribution of pharmaceutical products throughout the middle east, including the servicing of requests for particular medicine in markets, where that medicine does not yet have marketing approval such as requests related to a named patient program, which provides revenue.
Generating products approved in a major market countries, such as the United States to individual named pay.
Patients through physician requests in a country, where marketing approval has not yet been granted.
According to <unk> 2020 Global report the HIV epidemic is growing in the middle East and North Africa referred to as the Mena region with an estimated 20000, new infections in 2019 or 25% increase over infections in 2010.
And an estimated 170000 to 400000 adults and children in the region.
Who lived with HIV in 2019.
This is a revenue sharing relationship for HIV related diarrhea in Bahrain, Kuwait, Qatar, Saudi Arabia, UAE, and Oman, and the agreement terms provide jaguar with an increase in the revenue sharing percentage for sales in these countries of newly approved indications which will occur.
<unk> to the CTD.
And ultimately inflammatory bowel diseases indications for cross selling or upon marketing approval.
Dr. Karen Bronchi, Jaguar very experienced and capable executive vice president of corporate and business development orchestrated our relationship with quasi pharma.
This collaboration is a welcome and important step towards making <unk> novel mechanism of action available to patients in need in global markets.
Karen is hard at work continuing hard at work pursuing additional business development opportunities for cross selling or.
Which again, we consider a pipeline within a product for multiple potential indications in other key markets outside the United States.
Lastly, I would like to wish you all participating because they know that we will have a brief Q&A segment at the end of this webcast to address questions. If any submitted in writing as we normally do questions can be submitted via the webcast link for today's event that appears on the events and presentations page of the <unk>.
Mr Relations section of Jaguar's website.
Earl for Jaguar's website is Jaguar Dot Hill.
I would also like to point out that the.
The list of analyst coverage.
A jaguar.
Can also be found on the Investor Relations section of Jaguar's website and includes a New addition, this week we are now being covered and it isn't initiation is expected this week.
Were not being covered by Lautenberg Cantor Fitzgerald and just this week. The initiation is expected from CW IC equity solutions in conjunction with tag T. A G investment bankers.
We'll now move along to key financial results for the first quarter of 2022, and I'll turn it over to Carol.
Thank you Lisa and thank you all for joining our webcast today.
I'll begin my review of our financials for the first quarter of 2022.
Mike Hussey net revenue during the first quarter of 'twenty two.
It is approximately $2.6 million.
And approximately $2 1 million in the fourth quarter of 2021.
Increase of approximately 500000 or approximately 24% quarter over quarter.
And an increase of approximately 112% over my Tessie net revenue in the first quarter of 2021, which totaled approximately $1 2 million.
The transition to a close network of specialty pharmacies, which was completed this past January .
It resulted in a meaningful reduction in my testing distribution costs.
At a higher average net price.
As part of the process of transitioning to the coast specialty pharmacy network.
The third and fourth quarters of 2021.
Were significantly impacted by the inventory drawdown of approximately 1300 bottles of my testing across the Companys third party logistics warehouse.
Dealers distributors and retail stores.
My taxi prescription volume.
The company believes to be the best indicator of growth in patient demand.
Increased 14, 6% in the first quarter of 2022.
Over the fourth quarter of 2021.
Prescription volume differs from invoice sales volume, which reflects among other factors.
But buying patterns among specialty pharmacies in the cold stacked work as they manage their inventory levels.
Mike Hussey gross revenue a non-GAAP measure was approximately $3 4 million.
In the first quarter of 2022 and.
And $3 million in the fourth quarter of 2021.
Representing an increase of approximately 400000 or 13, 4% quarter over quarter.
A decrease of approximately 25, 5%.
Over my test revenue gross revenue that is in the first quarter of 2021.
Which was approximately $4 6 million.
The increase in my taxi gross revenue in the first quarter of 2022.
Over the fourth quarter of 2021 is due largely to the fact that infrastructure required to complete the transition to a closed network of specialty pharmacies was not fully in place in the fourth quarter of 2021.
And the loosening of Covid related travel restrictions in the first quarter of 2022.
Allowed by Tuffy sales personnel to visit more health care providers.
The decrease in my taxi gross revenue in the first quarter of 2022.
Compared to the same quarter in the prior year.
It was due to the process of transitioning to distributing my coffee through a closed network of specialty pharmacies settled through wholesalers that we sell the product to retail pharmacy.
For the first quarter of 2022.
The loss from operations was 11 $8 million.
Compared to a loss of $8 8 million in the first quarter of 2021.
An increase of $3 million quarter over quarter, largely due to the increased clinical trial activities related to the company's on targets phase three Oscar Selma.
Prophylaxis of cancer therapy related diarrhea.
Or what we call CTV.
As well as development efforts for other indications.
For the first quarter of 2022.
Net loss attributable to common shareholders was approximately $18 million.
Compared to a loss of $12 million.
In the first quarter of 2021.
An increase of $6 million quarter over quarter.
In addition to the loss from operations.
Interest expense increased $2 3 million from $1 9 million.
In the three.
Once ended March 31 2021.
The $4 2 million for the same period in 2022.
Primarily due to interest from the royalty and note agreement.
The increase in the loss on extinguishment of debt from 753000 in the three months ended March 31 2021.
$2 8 million in the same period in 2022 is due to the $2 8 million extinguishment loss from the exchange of the outstanding balance of one of the royalty agreements for shares of the company's common stock.
Also change in fair value of financial instruments, and hybrid instruments designated at fair value option or F O losses decreased.
400000 from a loss of 600000 industry months ended March 31 2021.
The 200000 for the same period in 2022 designated F O b or <unk> I should say.
Other income increased by 800000 from 10000 in the three months ended March 31 2021.
Two 800000 for the same period in 2022 due to the foreign currency transactions.
non-GAAP EBITDA.
The first quarter of 2022, and the first quarter of 2021 was a net loss of $9 4 million.
And $6 8 million respectively.
That concludes my recap of high level financials for the first quarter of 2022.
I will now hand, the discussion over to Ian Webber.
Chief commercial officer.
Ian.
Thank you Carol and good morning Joel.
As Carl stated my total your total prescription volume.
We believe to be the best indicator of patient demand increased 14, 6% in the first quarter of 2022 over the fourth quarter of 2021.
Obviously announced the transition to a closed network of specialty pharmacies.
And in a meaningful reduction in my chassis distribution costs as well as a higher average net price in fact, I am very pleased to report that we significantly outperformed the industry gross to net average in the first quarter of 2022.
And the fourth quarter of 2021 for sales of our human prescription product.
As a result of our transition to the closed network of specialty pharmacies.
A key component of the company's market access strategy.
To transition toward a closed network of specialty pharmacies is intended to help remove access barriers for patients prescribed might Jesse that include services, such as a higher level of support.
Prior authorizations, and appeals adherence counseling and home delivery options for patients often visit retail pharmacies for short term.
Uncomplicated medical needs specialty pharmacies focused primarily on serving patients with complex and chronic medical conditions.
JV.
Importantly, this transition has also allowed us to begin utilizing sales and prescription data.
Directly provided by our network.
Pharmacies to more accurately track prescription volume.
Patient journey, rather than relying on a third party provider of estimated data for these important performance metrics and assist in the preparation of our U S commercial distribution network for potential future indication expansion of fulfill them or other populations.
<unk> of patients with complex medical needs, such as CTV and SBS.
I'm also pleased to report that we have rolled out new innovative programs that further support identifying appropriate patients and connecting them to care and medication access services.
The first program is a telehealth initiative, which went live just this past Friday.
That enables patients seeking help with their HIV related diarrhea to be linked immediately to a provider for assistance with their medical needs.
This new capability prevents patients from having to wait until their next scheduled doctor visit to get help with an urgent problem.
Our second new program delivers digital Mike Jesse and disease State education directly into our providers of electronic health records or EHR system.
So that they learn about my Jesse at the moment they are seeing their HIV patients. This technology allows us to intelligently deliver ads to a provider based on the profile of the patient they're seeing in their exam room.
This is strictly a one way communication, we do not actually receive any protected health information around this program.
Both of these programs are designed to drive incremental brand awareness among prescribers, who have not written from HFC previously and I'm on patients who have not been able to receive immediate care for their HIV related diarrhea.
Now turning to the animal health side of our business. We are thrilled as Lisa mentioned the <unk> one our FDA conditionally approved treatment for chemotherapy induced diarrhea CIB in dogs became commercially available to veterinarians across the United States at the end of last month.
<unk> is an important prescription drug introduction for the veterinary community.
A dog's experienced in CIB.
As Lisa commented dogs as with humans go off their disease modifying chemotherapy approximately 40% of the time due to diarrhea.
You see one can help support the comfort and quality of.
Dogs, while being treated with chemotherapy, which may help them remain compliant with their life saving treatments.
<unk> of <unk>, one among general practice beds, and veterinary oncologists, who have learned about the product has been extremely positive.
Launch activities for <unk>, one remain underway.
Product was the focus of Jaguar <unk> exhibit booth at the recent in April Veterinary Cancer Society mid year conference, which took place in Mexico.
Mexico. The company also held in Williston to dinner event.
Veterinary oncologists about CIB and dogs at this conference Jaguar Animal health will be also be exhibiting at the 2022 American College of veterinary internal Medicine <unk> Forum in Austin from June 20.
To the 25th.
As announced we expect that Gen <unk> could.
Additionally, receive FDA conditional approval under the name can leave yes, two for the treatment of exercise induced diarrhea.
And what is termed E I'd and.
<unk> in the fourth quarter of 2022, which would be a very fitting way to finish up what we're referring to as Jaguars here Doug.
Concludes my comments. Thank you for your time today I'll now pass the conversation back to Lisa.
Thank you and thank you Karol nicely done we at Jaguar NAPCO and note. There are energized about all of the important initiatives underway in 2022 and in particular the expectation for what we feel will be transformative value creation in the next 12 to 15 months.
We focus on supporting the realization of the value of our profile in their pipeline.
Now open the floor to written questions that have come in and I will start to pull them up right now.
Oh.
Oh.
Okay.
Okay.
My connection to the questions just disappeared, but it's coming back.
Peter if you're online can you see the questions can you read them out to me.
Alright. Thank you if I can read them out to you.
The first question.
Sure.
Is there a place for an upcoming IPO.
So of course, we're a public company that must be referring to novel Therapeutics.
And Napa Therapeutics.
<unk> has indicated that it would seek liquidity.
After.
What we're looking for and they're looking for the value transformative event of.
Completing the proof of concept studies that are published that could support expanded patient access. So that liquidity then could take many different forms but of course Jaguar is already public and well over the majority of Snapple Sarah is held in equity in Jaguar.
So last year.
Congrats congrats on the quarter, we saw the statement on the 10-Q regarding your current capital one way to know more about your strategy.
One way can you provide more color here.
So that's some carvey high carvey, Okay, I can see the questions out here.
So we.
Money is fungible money lose money, but we do our best to match the expense of our clinical initiatives to non dilutive dollars. So for example, the SBS of course is being run by the funds that are in Nappo Sarah in Napa, Sarah has additional fundraising activities going on now.
And our cancer program.
We match.
Two the royalty deal that we have where we have royalties.
Based on the revenues that are coming in semi test for HIV HIV, a royalty funding program.
And with some of the business activities that we're planning in 2022 that are initiatives and discussions that had started months if not years ago. We're looking to continue to bring in non dilutive dollars to fund our clinical programs. At this moment. There are no plans to do any extra equity raise or a structured way.
At this stock price.
Okay.
Will we see a big P. O for can leave you for Mars Pet company this year.
So Mars, which for people don't know Mars Mars Company, the Candy Bar company, they own VCA and in a couple of other <unk>.
Major corporate ownership of many clinics and Ian can you probably know what the number of clinics are throughout the United States and even outside the United States I'll, let you jump in in a moment here. So they are absolutely a customer and many of the veterinarians who work and do clinical trials in that network has participated.
In the presentations that we have done with the education and promotion of <unk>.
Yeah, we expect that there will be sales into the Mars network.
And Ian do you know what the number of vet clinics isn't the Mars network is.
Yes, I know in the specialty clinic space I think they have about 90 to 100 and those would be clinics that include oncology care. The primary care clinics or general practice clinics number into the many hundreds in fact I think it might even be approaching 1000, especially with all the recent acquisitions that they've made they've bought up.
A number of large clinic chains or medium to large clinic change. So there are a huge customer of ours, they actually reach out to us to kick off commercial.
Discussions because they were very interested in stocking candidly be in adding to their formulary.
We're certainly expecting them to be.
Large customer.
Terrific.
And these days more and more dogs are being treated for cancer at their general veterinary practice and not just a specialty clinics, although the specialty research and awareness and education.
Oncology specialty clinics is really are the organizations that are cutting edge and a focus of our initial efforts to kind of leave your education and promotion and you wanted to just wanted to go back one question to Harvey.
Also I believe everyone is aware that we do have an ATM in place and so that does provide great flexibility for a company like ours. If at some point, we feel concerned about cash because.
Excess time or if it's a suspense for example in our clinical trials, we can always utilize the ATM.
Could you talk a bit more about the named patient program.
So how does it work what's the impact it can have on topline in the near medium term named patient program is terrific. It's fantastic for patients around the world in countries, where there's not FDA approval, I'm, sorry, where theres not clinical approval regulatory approval in their particular country, but where our major countries like the United States has FDA approval.
Obviously for us its for the HIV indications physicians, who become aware of my Tessie can.
Specifically name Ah patients for which the product can be imported and prescribed and paid for it. So it is at our WAC price and in the case of Quadri. It's based on the revenue sharing model that we talked about and so it can provide immediate relief to these patients.
<unk> as the physicians become aware of my Tessie and the need in certain patients well.
Regulatory process is continuing in the different countries in the Mena region.
And I don't see any other questions Peter do you see any other questions.
Do not what you said I think we're good on that front.
Okay I.
I think we're good. Thank you all for participating and we're very excited about this quarter's results that were very excited about the continual performance of my tests, he kind of linear in 2022 and of course, the Sps in the ATV.
<unk> in the future probably wonderful day. Thank you all.
And this concludes today's webcast. We thank you again for your participation you may now disconnect.
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