Q1 2022 Novan Inc Earnings Call
Hello, and welcome to the Nova and incorporated quarterly update conference call and webcast. As a brief reminder, all participants are currently in a listen only mode. If anyone requires operator assistance during the event. Please press Star then zero on your telephone keypad.
Following the presentation there'll be a question and answer session note that this webcast is being recorded at the company's request and a replay will be made available on the company's website. Following the end of the event.
At this time I'd like to remind our listeners that remarks made during this webcast may state managements intentions beliefs expectations or future projections. These are forward looking statements and involve risks and uncertainties.
<unk> looking statements on this call are made pursuant to the safe Harbor provisions of the federal Securities laws and are based on no bands current expectations and actual results could differ materially as a result, you should not place undue reliance on any forward looking statements. Some of the factors that could cause actual results to differ materially.
Ali from these contemplated by such forward looking statements are discussed in the periodic reports no van files with the Securities and Exchange Commission. These documents are available in the investors section of the company's website and on the Securities and exchange Commission's website. We encourage you to review these documents carefully.
Additionally, certain information contained in this webcast relates to or is based on studies publications surveys and other data obtained from third party sources and the company's own estimates and research while the company believes these third party sources to be reliable it has not independently verified such information.
Joining us on today's call from the Nova and leadership team are Paula Brown, Stafford, Chairman, President and Chief Executive Officer, John a <unk> Chief operating officer of Nova and President of E. P. I health and John M Gay Chief Financial Officer, I would now like to turn the call over to Paula Brown Stafford.
Chairman President and Chief Executive Officer. Please proceed.
Thank you Howard.
Good morning, everyone and thank you for joining our corporate update including advanced financial results for the first quarter of 2022.
On March 11th we announced exciting news for new than we had closed on the acquisition of Epi health.
And therefore, we emerged as a fully integrated medical dermatology company.
This is truly a foundational leap forward for now then.
We now have marketed products and our proprietary R&D platform technology to fuel future organic growth for another man.
A great example of the value we have added as rosy a topical cream prescribed to treat ongoing facial redness associated with rosacea in adults.
Epi health acquired in 2019 and relaunched just in time for the pandemic to hit.
As dermatologist offices began to reopen in late 2020 one early 2022 we've seen a nice increase in scripts written for rose.
The quotes here are from two patients who are seeing their medical needs met.
Something that we're striving to do and no van.
It's the tangible value of new advanced products for the patients we serve.
We are now more steadfast in our belief that no van remains a compelling investment opportunity.
Our highlights can be summarized.
And easily remembered on on one hand.
We're gonna count down five product candidates in our development pipeline, all nitric oxide based formulations.
Four products promoted by our commercial team.
Three near term value creators true two priority products and one lead product candidates.
Two business units, we have an R&D engine and a commercial platform.
Finally, one NDA submission targeted before the end of 2022.
We've created a medical dermatology company that has the capabilities to discover research and develop innovative therapies.
And bring medications to patients with diseases of the skin.
Our nitrosyl technology has generated multiple nitric oxide based formulation to address multiple medical conditions with unmet needs.
We've recently completed the outfitting and launch of our small scale manufacturing facility in Durham, North Carolina, or our drug substance.
We're able to tell and experienced dermatology commercial platform from supply to engagement to sales effectiveness.
We've established health care relationships.
As well as product launch experience.
We are now well positioned to detail S. B, two O six or consult with if approved.
Integration Ah, let me talk a little bit about that were 65 days post closing of the Epi acquisition.
Many days for accounting purposes, which John will speak to shortly.
The transition has been smooth and generally on schedule and as planned we aligned our teams focusing on one culture, one set of systems and processes and leveraging our salmon synergies.
And I'm truly pleased with our progress to date.
Seamless integration enables us to focus on the execution of our growth strategy for van.
We'll now take a few minutes for John Donofrio to review not advanced commercial platform, including our promoted products as.
As you heard John is no Vance CLO and President of Epi Health I know van company.
John over to you.
Thank you Paula and good morning, everybody.
Paul mentioned, we are now a fully integrated medical dermatology company with a strong leadership team proven execution with both an R&D engine and now a commercial platform.
I'm going to start to spend some time this morning to discuss three key areas first our commercial capabilities.
I like to provide background on a promoted product portfolio in therapeutic areas that serve our patients and close with an update on our Q1 prescription performance.
Paul mentioned, the rationale and benefits of acquiring Epi health along with our product portfolio was our commercial platform. We have an established commercial presence across the medical dermatology community with the ability to reach over 7000 health care practitioners.
When you think of our commercial platform, we start with supply chain management of our third party suppliers, along with an optimized demand management process, we have built our distribution capabilities to both wholesalers and direct network pharmacies.
We enhanced our managed care capabilities with the payers and patient affordability programs to ensure patients have affordable access to all our medications. Our sales organization consists of four regions and 42 territories and has more than doubled over the past three years. We've also upgraded our sales training and our field sales or.
Support organizations.
Our team is either launched or we launched four products in the last four years and we believe that experience will provide a solid foundation for potential future launches.
We have a brand marketing team focused on the product and disease state messaging and education throughout our portfolio and lastly, we built strong professional relations engagement with our health care practitioners and key opinion leaders across the country.
When we look at our commercial capabilities, what differentiates us is our dedicated employees and our focus on execution data and performance we have complemented our commercial capabilities with strong financial management analytics and are reporting platform that focuses on clear alignment of our financial and.
Data and metrics.
When we step back we look at this as one platform that is aligned on a common set of objectives. We are also in the process of integrating the legacy novae and commercial organization into a platform to make it even stronger as we prepare our company for potential future launches.
Our commercial platform is focused on field readiness high engagement with our customers employees, along with our strong performance management across our organization to ensure we deliver value to our shareholders and the patients that we serve.
Yeah.
There are multiple channels in dermatology space.
Medical prescription device statics procedures O T C.
Here at Nova and we are solely focused on providing a portfolio of prescription dermatology products across multiple disease states and not just one product and not just one disease state over.
Over the past four years, we specifically focus our efforts on the unmet needs and for key disease States and medical dermatology, we compete and provide our patients innovative solutions in psoriasis, rosacea, and acne and atopic dermatitis.
We have a demonstrated commitment to the medical dermatology community not only with our current promoted products, but with our strong development pipeline.
When thinking about our pipeline our commercial platform is built to expand disease states within medical dermatology and to call on the other specialties like pediatrics.
I would like to now provide an overview of a divorce product promoted product portfolio.
In psoriasis, we launched one Saar cream last summer for the treatment of plaque psoriasis. This is a combination of Cal separate train and better Mesothelin deck propionate and works on both players and maintenance of the disease.
When Saar delivers on three key attributes to the patient efficacy safety and inherent in a novel cream formulation using an innovative pad technology.
For Rosacea Brocade is a topical prescription medication indicated for the treatment of persistent facial erythema <unk>.
P F E or specifically redness.
The majority of rosacea products address the inflammation of rosacea and there was an unmet need in addressing the red and rotate has become a market leader in the P. F E category.
For acne middle layer is the oral antibiotic treatment with the active ingredient of minutes cycling middle ear. It provides our patients with innovative technology approach to ensure consistent delivery of the active ingredient limiting variability and potential side effects to our patients lastly closure programs that known steroid with a 40 year Trust.
History with health care practitioners for patients with dermatosis.
As mentioned our products are promoted over 7000 health care practitioners across the country by our existing field sales force of 42 territories.
So now let's talk performance.
We shared with you the fundamentals of our commercial platform.
He states, we serve our patients and our diverse product portfolio now.
Now, let's discuss how our team performed in the first quarter of 2022.
I am pleased to report significant growth in three of our four promoted products.
Gaining with quota prescriptions were slightly down over the last year and flat over previous quarter inline with expectations of adding a fourth product within our sales team call cycle, when we launched <unk> Saar.
Speaking of blank door, when Saar, which was launched in mid 2021 has shown consistent growth month over month and quarter over quarter since launch.
For Rose we're excited to have closed the quarter with the strongest quarter in the history of the brand with over 37000 prescription nearly 50% above last prior year and 14% over its previous all time high quarter team.
Team did a fantastic job.
Speaking of fantastic job Middle layer also had growth.
Had strong growth quarter, with almost 50% above Q1, 2021, and 14% over previous quarter.
In summary, we're extremely pleased with this performance in a quarter that historically is lower or flat to Q4 due to end of year seasonality and feel that demonstrates our commercial platforms ability to execute and deliver building board.
I'll now hand, it back over to you John and thank you very much.
Alright Super Thanks, John .
I think your next question, maybe well what are you doing to keep those go on or make it even better well our commercial organization will be focused on seven key growth drivers to expand our promoted products.
Continued expansion of our sales force size and structure.
With a national sales leader, starting this week and planned expansion of our 42 territories in the second half of this year.
Both the company's Snowman and Epi health has established a good coverage at industry conferences and meetings and now as a combined company we plan to expand that presence at the national regional and even local levels will continue the momentum of our promoted products with a heightened level of focus with our key opinion.
Leaders in our current disease state as well as or potential future disease States along with the continued sales force execution.
And promotional marketing programs that continue to drive growth across the portfolio.
Lastly, we have an excellent opportunity to add potential value to our shareholders by perhaps licensing <unk> outside the U S.
So it's been an exciting time for our commercial organization with the announcement of our combined R&D and commercial company strong integration of our culture and our strong quarter one prescription.
Growth across the portfolio.
So from a commercial perspective, we have our key areas of focus and we're extremely excited as we look to our future.
I'll now spend.
Some time on our development pipeline, our R&D engine. It provides a near term opportunity to leverage our platform technology to fuel our pipeline and ultimately provide new commercial opportunities.
Each product candidate has its own compelling addressable market globally and domestically with.
With no vans pending solutions meeting different current medical needs for diseases of the skin and others.
So just quickly for those new to the new the new Van story, our Nitrosyl technology enables us to create N C east that store large amounts of nitric oxide gas and a stable solid form.
The advantage of our technology includes tuna ability stability high storage capacity and targeted delivery, we believe that our ability to deploy nitric oxide in a solid form on demand and localized formulations allow us the potential to improve patient outcomes in a variety.
City of diseases.
See here, we've treated nearly 4000 patients with the active ingredient RASM or sodium waste.
We've seen a compelling safety profile in the clinic across the platform, thus far and we have a solid patent protection with formulation and indication specific IP out to 2035.
Our lead product candidate is S. B two O six which is <unk> gel 10, 3%.
Potential topical prescription treatment for molluscum contagiosum in 2020, one we reported what I've referred to as robustly positive efficacy results from our pivotal phase III study.
Alaska is a highly contagious condition prevalent primarily in children, aged one to 14 for which there is no FDA approved prescription treatment.
Dermatologists and pediatricians remain concerned with the Tolerability of the currently thought office based procedures.
Our pivotal phase III study known as the simple four demonstrated clinical and statistical evidence of efficacy with our primary and secondary end points.
So you may ask what's next well we are now preparing our NDA submission.
It's normal course of business, we've had our pre NDA meetings with the agency in March and then received written minutes from the agency in April .
This confirms what we need to complete before submitting our NDA package and part of that is completing customary stability testing of our <unk> of.
GMP batches of our drug substance and drug product.
Importantly, we remain on track to meet our targeted submission date before the end of the year.
We've been planning towards the potential launch of SB, two O six or console us if approved first for some time now we identified a path.
First and most compelling path that delivers value and that was to acquire an established business E. P. I help.
That commercial platform will promote S. B two O six if approved and in the meantime, we have key activities ongoing to prepare for a potential launch.
These include our commercial scale manufacturing capability, which is up and running.
Pricing and reimbursement strategy, which is in progress.
Outreach to Kols through our medical team, which is ongoing.
And Salesforce preparedness, which is really to come.
I wouldn't know van as you know we've said it many times before we plan for success in a product launch is no different.
Nobody can also has a full technology platform poised to fuel potential future growth for the company.
In addition to our lead product candidate we have two other priority product candidate S. V. Two O four for acne Vulgaris and S. B O. One nine for infectious diseases, specifically sort of ascribe to the progression of both programs is dependent upon additional funding.
Our next milestone for S. P. Two of four is to initiate one final phase III study.
And for S. P O one nine.
We are awaiting FDA feedback on our pre IND submission before commencing down the phase one path.
Based on a series of in vitro and in vivo assessments, and 'twenty 2020 'twenty, one with <unk> or sodium we then submitted our pre I N D. In April of this year.
In addition to our priority dermatology platform, we have several other product candidates in the wings with potential future value.
All product candidates provide no van the opportunity to collaborate.
In the U S and potentially outside the U S.
So to report on our first quarter results now I'll turn it the call.
Now over to John Gay.
Thank you Paula and good morning.
Due to the timing of the acquisition of Epi Health on March 11th we only had 20 days of commercial activity reflected in our three months ended March 31 financials. However, based on the trends of script activity for the complete first quarter, which John touched on earlier, we are bullish on the future of our promoted product portfolio.
Before I touch on some of the key data points for this quarter I would like to let our participants know that while we are excited for the past set before US we are still in the process of fully integrating our new company, our personnel and our operations as such we are not yet in a position to provide guidance as it relates to 2022 revenues or EBITDA.
However, as John noted, we certainly see opportunities for growth and our promoted product portfolio.
For the first quarter ended March 31, 2022, our commercial operations segment reported total revenue of 1.2 million again. This represents only 20 days of consolidated activity for this business segment, which represents the legacy Epi health business our.
Our commercial operations segment included net product revenues from sales of our commercial portfolio, a point 7 million driven primarily by rotate which was <unk> 8 million for the 20 days ended March 31.
Net revenues from the sale of mineral lira, and Clos Durham totaled $1 million for the 20 days ended March 31.
In addition to these positive trends for our products. We did have a reduction in revenue of approximately <unk> 2 million for certain adjustments, including those that moved those products not currently promoted and also relating to certain accruals that were assumed as of the acquisition date.
In addition, our commercial operations segment also generated <unk> 5 million of license and collaboration revenues primarily related to our agreement with <unk> therapeutics for Zara totaling <unk> 4 million.
This amount includes not only the commercialization fee, we receive as part of that arrangement, but also the reimbursement of certain covered expenses.
Our research and development operations segment, which is comprised of the legacy <unk> business reported total revenue of <unk> 7 million for the three months ended March 31 2022.
For the three months ended March 31, 2021, R&D operation segment generated <unk> 8 million of revenue.
Our license and collaboration agreement with <unk> Pharmaceuticals comprise the majority of this revenue. In addition during the first quarter of 2022, we received the Tom based milestone payment of $4 3 million related to this agreement.
Now turning to our operating expenses.
Our research and development operation segment incurred R&D expenses of $4 8 million for the three months ended March 31, 2022, compared to $6 4 million for the three months ended March 31, 2021. The decrease is primarily related to the SP to a six program based on the timing of the visa before trial.
SG&A expenses were 10 million for the three months ended March 31, 2022, compared to $2 7 million for the three months ended March 31, 2021. This increase of approximately $7 3 million was primarily due to.
$4 million of nonrecurring transaction related expenditures incurred in connection with the Epi health acquisition $1 6 million of expenses incurred to support the conduct of EPS health commercial sales operations during the quarter.
<unk> 8 million increase in support costs related to the S. P. Two O six prelaunch strategy and commercial preparation.
Finally, a point 9 million increase in other G&A costs.
Total net loss on a consolidated basis was $13 4 million for the first quarter of 2022 as compared to $9 million for 2021.
As of March 31, 2022, we had a total cash balance of $35.5 million, we believe that our existing cash balance plus expected receipts associated with product sales from our commercial portfolio will provide us with adequate liquidity to fund our planned operating needs into the early fourth quarter.
2022.
I will refer you to our Form 10-Q filed this morning for additional detail regarding managements projections and planned operating development and commercial activities for the remainder of the year with that I'll turn it back to Pablo.
Great. Thanks, John .
Just back on that that 56% growth in promoted products of.
The prescriptions from the first quarter of 'twenty, one it's quite quite the growth as John mentioned earlier as well.
So we are pleased with no vans foundational leap forward in quarter one.
If the strength of scripts in the first quarter is any indication we have a commercial organization poised for growth.
We continue to advance our efforts toward an NDA submission in 2022, having received FDA feedback and marching forward with our to do list.
We are planning for success and preparing ourselves for potential potential product launch of console us if approved.
We continue to pursue evaluate and consider collaborations that could expand our existing commercial products.
And we continue to explore our proprietary development pipeline for future growth opportunities.
So in closing even with the challenges that we all see in the stock market the interest rate environment and the geopolitical landscape.
We didn't know van remained energetic focus and excited for the future based on our integration activities this quarter.
The evolution of our company with the addition of Epi health.
So thank you and operator I'd like to turn the call back to you to facilitate our Q&A session.
Ladies and gentlemen, if you have a question or comment at this time. Please press Star then one on your telephone keypad. If your question has been answered or you wish to remove yourself from the queue simply press the pound key.
Again, if you have a question my comment at this time. Please press Star then one on your telephone keypad.
Yeah.
Our first question or comment comes from the line of Jennifer Kim from Cantor Fitzgerald. Your line is open.
Thanks for taking my questions I have two to start off maybe Oh, I know that you're not providing guidance yet, but do you believe that the epi health business is positioned to grow year over year on a full year basis.
I think in the 2021 operating revenues is around $17 6 million and you know in the first quarter was only 20 operating days, but on a full year basis. Do you believe you can grow off of that and then my second question is I think previously you said that you expect to increase the number of U S territories covered from 42 to 50 this year.
I'm wondering is that the is that still the plan and what is the general timing on that through the of course the bigger.
<unk>.
Thank you Jennifer appreciate your questions I'm going to ask John gay to take the first one on the growth and then I'll ask John Donofrio to provide you the update on our plan regarding the reps.
Thanks, Paul and good morning, Jennifer Thanks for your question with respect to the first part of that do.
Do we expect year over year growth, yes, based upon what Johns and Oprah was able to articulate earlier in the prepared remarks, I will say this though and it got to the point in my comments.
On a full year basis.
Which is the metrics that we will use to compare keep in mind that we only have half.
Our consolidated results.
March 11th going forward so.
Just keep it to keep that in mind, but on a totality basis as it relates to the operations of the legacy <unk> business, Yes, we see year over year growth.
Thanks, John .
Yes in regards to sales force expansion, yes, we are still planning on.
Expanding from 42 territories to 50, we plan that to start that in Q3 of 2022 and when you think about it just quickly you know we'll be going from four to seven regions and so we will be reorganizing the regions and then it will take time to bring in the managers and then they respect.
Representatives accordingly, so we expect to be complete in early Q4.
It's about a two to three months process.
Okay, Great. That's helpful and maybe one more question here I think I saw that your cash runway extended a bit into the fourth quarter and I'm wondering what were the main drivers of being able to extend that.
Yes, sure Jennifer with respect to that obviously with the acquisition of the strong performance of rotate in Q1 with respect to the level of sales that increase kind of our cash collection as it relates to that activity.
So that's certainly part of the equation as it relates to extending the runway into people.
Okay, great. Thanks, everyone.
Thank you operator next.
Thank you. Our next question or comment comes from the line of kept Oliver from Brookline Capital. Your line is open.
Great Thanks, and good morning.
Just quickly.
The accounts receivable on the books or roughly 20 million, which is a pretty large number for a business of this size.
It does appear from the Q that there are some offsetting.
Payables, but John could you just walk through how that number's going to show up on the income statement going forward.
Certainly Ken good morning.
Well I mean on your balance sheet, sorry, I'm about yes, certainly so as it relates to the acquisition what came over from the acquisition date.
It was roughly $20 million of receivable and obviously, we've collected down that to get to the 331 balance. So you know a couple of key drivers that we saw from a cash perspective was the collection.
Of those they are balances again, driven by the rebate activity.
Activity during the first quarter and also again I've touched on the sort of payment. So that was kind of a flux. If you will from a balance sheet perspective, though the E R.
Your question too you know, what you're going to lie going forward I mean, obviously, it's going to be highly dependent upon the level of sales, but you know keep in mind that those accounts receivables are directly related to the gross.
Amounts that the company gets in as part of the gross to net adjustments.
The amount that we get versus what there's an offsetting liability that will have to play it against in the future.
Okay that makes a lot of sense.
Second question relates to the Windsor revenue.
Is what you're booking essentially strictly for in period revenue.
On an ongoing basis.
Yes, so the so for that the revenue is two pieces to commercialization fee that we get as part of that but also the reimbursement of certain expenses, so with our distribution agreement and commercialization agreement with empty to they cover certain expenses. So the revenues is comprised of two pieces of the fee and also the.
Recoupment of those expenses that are funded.
Okay.
And then finally with regard to the sales force reorganization it coming ahead.
And again, you're not giving guidance, but when.
When I hear so salesforce reorganization I think the there usually short term bumps associated with those.
Is that something we should take into consideration when we look at the second half of the year.
So on the note Brad do you want to address that because I would say yeah.
Anyway, I'll, let rod comment, yes, I'll be glad to thanks, and great question, we look at it more as an expansion.
Reorganization. So I think your point is spot on and in historical reorganizations, when you change a lot of stuff.
This is kind of been in the plant for over a year territories have already been targeted where we'll go and and so and the fact that we're doing it over.
Three months kind of period, we feel strong that our implementation and our strict targeting we'll we'll keep the momentum going forward.
As we continue to move forward, so do not see it to be a hindrance, but more of an opportunity going forward.
Great. Thanks Sundar.
Alright, Thanks, Kim operator.
Thank you. Our next question or comment comes from the line of Jon Bock vendor most in from Zacks. Your line is open.
Yes.
Good morning, just one for me on the cash flow statement. It looked like you had where you had positive cash from operations, but the net loss was.
$13 million, but can you explain the difference there and if that will reverse in the second quarter.
Sure. Thanks, John Good morning, Yeah. So keep in mind the cash flow statement is a little bit complex this quarter because of the acquired balances and the way that it flows through.
The Arkansas at end of Q1 cash flow statement, but yet youre correct as it relates to the activity for the acquisition balances and what we had.
For the 20 day stub period as we've been calling it we.
We did have you know.
<unk> provided cash about one 8 million.
And that that will be subject.
Two continued activity on the P&L and you know we can expect for that to change based upon our our net loss and the amount of sales that we are able to.
Execute upon.
Okay. Thanks, John can you update us on the number of employees you have.
Right now after the acquisition.
So after the acquisition is roughly 100.
So that includes all the all of the EPA health folks in the blood as he know van but on a consolidated basis is roughly 100.
Alright, Thank you guys.
Thank you. Our next question or comment comes from the line of Jonathan Ashcroft from Roth Capital Partners. Your line is open.
Thanks. Good morning, I was wondering can you guys help us understand your best competitive edge against I guess similarly sized dermatological companies you know, even if you just kind of restrict that answer to Windsor and rofin.
Yeah I think thanks. Thank you. Thank you Jonathan I think John that I could probably answer that first.
Yeah. Good morning, John how are you.
I am fine.
Yeah.
Great. Thank you very much I think from from a competition perspective, we look at first of all are you know we have a full product portfolio across four disease state. So we look at it we felt was an epi health company.
And when you look at ROE Fe, specifically, we see if they.
The basically the acceptance of the trading persistently chemo differentiates us significantly we only have one competitor in that space and have over 90% of the market share and P. F E for redness and we have exciting new data that's come out on the medical front. It shows using wrote paid once a day ever.
Good day makes a significant difference in the patient's treatment regiment them. So.
So we're excited about that we also feel comfortable and the launch of Windsor Aura.
We've we've taken about 20% of the share of the combination.
Topical market with the goal of companion to expand that market and taking share and also addressing the the larger steroid single steroid market and the ability to expand our Windsor is a real advantage over potent steroids. So we feel like in those two categories and then we'll use that just through the seven you know kind of capability.
Is that Pollo went through and when we think about our field execution and expansion with.
We've demonstrated that now we also feel like the data that we have in the information the medical education and promotion of these products, including sampling well will help us as we continue to grow and go forward and then as we mentioned just a robust presence at conferences medical education awareness and also just a professional relations and key opinion leader.
Chip relationships has only expanded over the last few years and we figure as the combined company will be even better. So all of those areas combined is just not one we feel like position us well against the competition going forward.
Thank you very much for that answer I'm back on April 26, when you had a presentation.
You know you were talking about companies interested in you for one reason or another so what is the balance of interested sellers and interested buyers. Currently you know talking to you guys as everyone's trying to sell you something do deserve them.
Want to buy the new know then what kind of a balance there.
Thanks, Thanks, Jonathan for being on and for that question I would say that.
Yeah to be fair.
Right.
Most interested a lot of people wanting us to buy things.
Partner with them interested.
Like the platform and what we're doing and so there is some interest interest there.
Will continue as I said to evaluate opportunities and with the focus on ourselves getting hopefully S. P. Two O six approved and making sure that as a priority for us.
Uh huh.
And just sort of a little follow up to that.
Are any of them, who wished to sell you a product to wishing to sell you themselves and maybe that comes with some cash as well or is it really just you know.
By this product.
Yeah, I really cant share any any a detail on that you know Jonathan and it's.
Too early to even you know and and to summarize any of the interest. So I. Appreciate the question, but I don't think I can answer it.
Okay, and lastly, and maybe you've mentioned this many times can you remind us of what stock somebody with severe acne using an approved consoles given that both or 10, 3% topical formulations.
Yeah S P to us so they are the same API, which is where it asthma sodium but theres a different volume and there's a different proton donor source. So the it's a jewel administration and they are very different and molluscum SB two O six as a spot treatment. So it's just being applied to each lesion, but.
For acne it would be a field treatments I've put on the whole face. So there are two very different formulations and amounts of N O being applied so.
It should not be used when for any other.
No that sounds prohibits have enough. Thank you guys.
Thanks for that.
Later, I know we have I got a text we have another analysts trying to get onto the call. So I don't know if there is another one waiting.
I'm showing no additional questions in the queue at this time.
Okay.
No way, okay, well, we will speak to them offline then and thank.
Thank you I'll, let me just summarize if there are no other questions operator, right I don't know, whether that's correct ma'am.
Alright, let me just summarize quarter one it's been a foundational leap forward for November and we thank our shareholders. The acquisition of API help has propelled us into that fully integrated dermatology company. So not only do we have our proprietary nitrosyl technology, which we know has the potential of gen.
Writing N C Eve, we we have our first.
Class sales team.
And our supporting commercial infrastructure to propel us forward.
Two key products in the bag with rotating wins, Ora and a watchful eye toward a potential approval and launch of SP to six it is a very exciting time for another down her know van count down 54321.
And we're ready to go so thank you all for attending this morning and have a great week.
Ladies and gentlemen, thank you for participating in today's conference. This concludes the program you may now disconnect everyone have a wonderful day.
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