Q2 2022 Aurinia Pharmaceuticals Inc Earnings Call
Greetings and welcome to Iranian Pharmaceuticals, second quarter, 2022 financial and operational results conference call.
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A question and answer session will follow the formal presentation.
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It is now my pleasure to introduce your host did each year or many as vice President of Investor Relations. Thank you you may begin.
Thank you Doug and thank you all for joining today's call and webcast to discuss <unk> second quarter 2022 financial results. Joining me. This morning to leave the call Peter Greenleaf, President and CEO and Joe Miller, Chief Financial Officer, Dr. Neil Solomons, Chief Medical Officer will also be available at the conclusion of our prepared remarks for the Q&A portion of the call.
Morning, We issued a press release announcing our financial results and recent operational highlights and filed our quarterly report on Form 10-Q for more information. Please refer to our filings with the U S. SEC, which are available on our website or begin farmer Mac dot com.
During this call we may make forward looking statements based on our current expectations. These forward looking statements are subject to a number of significant risks and uncertainties.
<unk> results may differ materially for a discussion of factors that could affect our future financial results and business. Please refer to the disclosures in our press release and our quarterly report on Form 10-Q, along with our 10-K and all of our recent filings with the SEC and Canadian Securities authorities. Please note that all statements made during today's call are current as of today.
I look towards 2022, unless otherwise noted and are based upon information currently available to us.
Hi.
As required by law, we assume no obligation to update any such statements. Let me now turn the call over to Iranian President and CEO Peter Thank you Peter.
Thanks, Steve and thanks to everyone for joining us today.
On the call today, I will start with a review of our commercial business, including Luke <unk> performance in the second quarter and the trends, we're seeing for the product entering the second half of the year.
After that I'll discuss the recent positive opinion by the <unk> of the EMA, putting hurting us on the verge of gaining approval for <unk> in Europe .
I'll also cover the additional ongoing clinical work to reinforce loop kindness benefits for patients and briefly discuss recent events related to our intellectual property.
Finally, I'll provide a quick update on our R&D pipeline and then turn the call over to Joe to provide more details on the second quarter financial results and our overall financial position.
So, let's get started with our second quarter business performance.
Total net sales were $28 2 million for the quarter with loop guidance product revenues contributing $28 1 million.
During the first quarter of this year, we saw many encouraging trends supporting the commercial performance of <unk>, the majority of which persisted into the second quarter with a number of them actually improving quarter over quarter.
There are some positive trends we saw in Q2.
Total patients on therapy grew to 274 up 19% from $1 71 at the end of Q1.
We saw notable notable improvements in refill rates and shipped the highest number of wallets in a quarter since the launch of the product.
Persistency trends in our business also remain encouraging consistent with the last quarter approximately 70% of commercial patients remain on treatment at six months.
And at nine months, approximately 60% of patients remain on treatment.
As previously discussed we will continue to update these figures as we progressed further into the launch.
Conversion rates and patient access remain robust, whether it's 30 60 or 90 day conversion rates all continue to improve and are currently at peak levels since launch.
Efforts to increase health care provider adoption of <unk> and regular practice remain consistent and positive.
Each month, we're adding new prescribers with 190, new prescribers in quarter two alone.
Prescribing rates remain balanced between both Rheumatologists and Nephrologists.
Net realizable revenue per patient for the quarter is higher than our initial guidance of 65000 per year, but as we discussed previously we continue to expect to approach. This figure on an annualized basis as more patients go on and stay on therapy over time and its persistence.
And dosing and payer mix evolve.
So while we're pleased with those positive trends, we're less pleased with our performance on PSS for the quarter in Q2, we added a total of 409 PSS, bringing our year to date total to 867 PSS as of June 30.
The updated number of prescription start forms year to date through Friday July 29 is 981.
We have been analyzing the data to further understand the trends in the market. The overall patient journey physician prescribing habits and the potential for any seasonality in the lupus nephritis community.
Over time, we want to assess and separate any annual seasonality that might exist from historic COVID-19 treatments and trends that we've seen in the marketplace.
As we know 2021 was a year of COVID-19 varying changes that drove impact on the market and our business.
In 2022, we now need to evaluate any seasonality trend differences throughout the calendar year impacting lupus and lupus treatments.
But regardless of seasonality, we are attacking points that have historically been opportunities that have been closed to us and opportunities, where we know deeper investment will have impact with the overall goal of getting back to positive prescription start form trends and improving retention for our patients.
<unk>.
We are excited with the addition of Scott Hey, Big as our Chief commercial officer to lead the commercial group following the transition from Max Colao, Scott is a seasoned industry veteran.
With the intimate knowledge of both lupus and lupus nephritis market and patient population.
Under Scott's leadership, we are intensifying our focus both with both our prescriber base and patients.
We know in the first year of the launch major medical centers that contain specialized lupus treatment programs were closed to both patients and pharmaceutical industry Representatives.
During Q2, we increased our focus and our thinking around how best to partner with major medical centers around the country that offer these specialized lucas programs.
We believe that these centers hold access to a great number of lupus patients and with the proper screening have the ability to diagnose early lupus nephritis treatment candidates.
So we look forward to reporting on our impact in these centers over the upcoming months.
In addition to those efforts, we're putting an increased emphasis on patient retention strategies. Both in terms of support and education, both nationally and locally and in terms of broad based diagnosis and patient awareness awareness driving initiatives.
With these initiatives and more.
We are moving forward to our goal of improved growth in PSS, both in Q3 and Q4.
And with an intense focus on commercial execution and our new commercial leadership in place, we remain confident and reaffirm our guidance for <unk> net sales of $115 million to $135 million for the full calendar year 2022.
Turning to Lucas Outsides due to loop guidance outside the U S.
Last month, we again achieved a major milestone for our company.
To see HMP recommended <unk> for marketing authorization to treat adults with lupus nephritis.
Based on the <unk> recommendation and decision to formally approved lube guidance by the European Commission is expected by the end of the third quarter.
Once <unk> is approved by the EMA depend.
Depending on the favorability of the approved label, we have the potential to receive a milestone payment from otsuka of up to $30 million.
In addition, we also have the potential to receive low double digit royalties on sales and supply cost recovery through a cost plus arrangement going forward.
As a reminder, our revenue guidance does not include this milestone payment royalty payments or manufacturing revenue anticipated from ex U S sales related to our licensing agreement with us sukkah to market Boquist born in the European Union and Japan.
So we look forward to continuing to report our progress outside the U S to you soon.
Shifting gears to our broader R&D efforts with regard to our development work related to loop kindness.
We had significant visibility with health care providers as we as we had a presence in two major medical conferences in the quarter.
During Q2, we presented for the first time more complete results from the Baucus born Aurora two continuation study at the 59th European Renal Association Congress.
This was quickly followed by a presentation at the 2022 European Congress of Rheumatology.
The data from this study, which we reported in December looked at patients continuing from the pivotal 12 month Aurora study for an additional 24 months of treatment.
This data reinforces the favorable risk benefit profile loop kindness over three year period with safety and efficacy comparable to that seen in the original Aurora trial.
We still plan to submit a manuscript for peer reviewed publication in the second half of 2022.
As well as abstracts for data presentations at additional medical major medical meetings throughout both 'twenty two and into 2023.
On the topic of additional development work with Blue <unk>.
Recruitment of patients and the initiation of new sites into both the focal pediatric study and the enlighten <unk> registry is continuing.
And as a reminder, we committed to the vocal study as part of our FDA approval.
We initiated the registry study to gain further knowledge about patients being treated with kindness and to help physicians and payers to improve patient treatment and care and to ensure access to therapy.
Moving on to our research pipeline, we continue to advance IND, enabling work on both AUR 200, and EUR 300, and we remain on track to submit an IND for both compounds in 2023.
These are important next steps in the build out of our pipeline to build long term sustainable growth for the company.
As announced last week, the U S patent and trade office as patent trial and appeal Board notified us of its decision to Institute trial on the Inter Park case review or IPR filed by Sun Pharmaceuticals.
Patents subject to the <unk> related to <unk> dosing protocol and extend patent protection to 2037 and <unk>.
Termination on patent ability in relative to this IPR is expected on or prior to July 26 2023.
Regardless of the final outcome of the IPR, we have filed the standard patent term extension for our existing composition of matter, which if granted when extend could extend the terms for that patent by five years to October of 2027.
We also have other patent applications underway, which if granted could offer additional intellectual property protection for <unk>.
In addition, our law suit against Sun Pharmaceuticals, where we alleged their infringement on our patent non boquist foreign and ophthalmic solution remains ongoing.
In all cases, we had and are intending to continue to act take action to protect our intellectual property rights for Luke on us.
So before I turn the call over to Joe I want to highlight that we remain well positioned relative to many of our borrowers biopharma peer companies out there with a healthy balance sheet, including almost $400 million of cash on hand, and no significant debt obligations.
While the capital markets remain difficult and volatile we can fund our business operations for at least the next few years and remain flexible and adapt to the current market environment.
I'll now turn the call over to Joe Miller for a more detailed review of our financial results and then I'll return at the end of the call for a quick recap and to answer any questions you might have Joe. Thank you Peter and good morning, everyone. As of June 32022, we had cash cash equivalents and restricted cash and invest.
<unk> of $391 7 million compared to $466 1 million at December 31, 2020, while the decrease is primarily related to the continued investment and commercialization activities advancement of our pipeline and our payments for the achievement of a onetime milestone partially offset by an increase in cash receipts from <unk>.
Sales.
We believe that we have sufficient financial resources to fund our current operations, including funding commercial activities.
<unk> related post approval commitments manufacturing and packaging of commercial drug supply funding our infrastructure conducting planned research and development programs investing in our pipeline and operating activities for at least the next few years.
Total net revenue was $28 2 million and $6 6 million for the quarters ended June 32022, and June 32021, respectively.
Total revenue was $49 8 million and $7 5 million for the six months ended June 32022 and June 32021.
Our revenues primarily consisted of product revenue net of adjustments firmer guidance.
Revenue growth for both periods is attributed to further penetration in the lupus nephritis market, coupled with improvements in a number of our key revenue driving metrics.
Total cost of sales and operating expenses for the quarter ended June 32022 were $64 2 million in comparison to $53 8 million for the quarter ended June 32021.
Total cost of sales and operating expenses for the six months ended June 32022 were $123 7 million in comparison to $105 2 million for the six months ended June 32021 further breakdown of operating expense drivers and fluctuations will be explained in a moment.
Cost of sales were $1 6 million and 308000 for the quarter ended June 32022, and June 32021, respectively.
Cost of sales were $1 9 million and 356000 for the six months ended June 32022, and June 30 of 2021, the increase for both periods was primarily due to an increase in product revenue coupled with an increase in our safety stock reserve.
Gross margin for the three months ended June 32022, and June 30 of 2021 was approximately 94% 95%.
Gross margin for the six months ended June 32022, and June 32021 was approximately 96% and 95% respectively. We believe that gross margin will remain fairly consistent going forward.
Selling general and administrative or SG&A expenses inclusive of our share based compensation were 51, 5% and $44 three for the quarters ended June 32022, and June 32021, respectively.
SG&A expenses inclusive of share based compensation expense were $96 7 million and $84 1 million for the six months ended June 32022 at June 32021, the increase was primarily due to an increase in share based compensation as well as expenses related to corporate legal matters and investment in our infrastructure to support the <unk>.
Utilization of our guidance.
Noncash SG&A share based compensation expense for the quarters ended June 32022, and June 30 of 2021 were $8 9 million and $6 5 million respectively.
Cash SG&A share based compensation expense for the six months ended June 32022, and June 30 of 2021 was $14 9 million and $13 2 million respectively.
R&D expenses inclusive of share based compensation expense were $11 5 million and $10 1 million for the three months ended June 32022 and 2021.
For the six months ended June 32022, and June 32021, R&D expenses inclusive of share based compensation expense was $24 1 million and $19 9 million. The primary driver for the increase for both periods was due to an increase in expenses related to our EUR 200, and EUR 300 development programs now.
Noncash R&D share based compensation expense for the quarters ended June 32002, and June 32021, with $1 1 million for both periods.
Noncash R&D share based compensation expense for the six months ended June 32002, and June 32021 was $2 million and $2 2 million respectively.
For the quarters ended June 32022, <unk> recorded a net loss of $35 5 million or 25 net loss per common share as compared to a net loss of $47 million or <unk> 37, net loss per common share for the quarter ended June 32021 for the six months ended June 32022 Arena reported a net loss of $73 one.
Or 52 net loss per common share as compared to a net loss of $97 4 million or <unk> 76, net loss per common share for the six months ended June 32021.
With that I'd like to hand, the call back over to Peter for some closing remarks Peter.
Thanks, Joel as you heard throughout the call. We remain focused on driving will move kindness and capitalizing on the work we've done throughout the first half of the year beyond the U S are showing results. We are quickly moving towards approval and Europe , triggering the potential for additional milestones as well as moving closer to IAA each physician.
The fiber.
<unk> hundred three.
We continue to operate with a healthy balance sheet will enable us to execute on our long term strategy.
We look forward to updating you on these items as the year progresses.
Thank you everybody for joining us on the call.
With that we'll now open the call for questions operator.
Yeah.
Thank you.
And gentlemen at this time, we'll begin dark during our question and answer session.
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Our first question comes from the line of Maury Raycroft with Jefferies. Please proceed with your question Hi.
Hi, Good morning, this is zane on for Maury.
So what are some of the strategic changes heading into the second half with that Scott.
Scott in place now for example, like one of the major issues of course, if they use a generic CNI.
Like how do you think about that.
Yes, so just to clarify and to repeat the question. The question was what additional strategies are we looking at under new leadership in the commercial organization in the back half of the year I answer to that would be listen outside of taking a refreshed look at basic.
Blocking and tackling everything from.
Rep level impact to deployment against our top targets to our penetration in both high potential targets, and then sort of a more dispersed lower potential targets.
There really are the two larger initiatives that I mentioned on the call. One we know for the last couple of years because of Covid. The major tertiary care centers or major medical centers had been fairly close to us not only have they been closed to us have been close to our lupus patients we know that.
During 2021, the majority if not all of these major medical centers, we're not having regular lupus clinics. So we put renewed energy and interest around these major medical centers not only because access has become more open there, but also because I think it takes a different approach everything.
From formulary adoption.
To purchasing patterns in these major medical centers purchased brought up to how our redox and medical affairs and everyone interact within these centers so.
We remain really optimistic about the potential to generate new patient flow out of these major medical centers.
The second is that our business is driven in two ways, it's acquiring new patients and then keeping those patients over time and we've put a renewed effort on down on.
Patient retention patient education to ensure that.
Whether it be.
90 day six months, one year retention continues to improve over time and that patients receive their prescriptions.
By working on these areas, we feel confident that.
That will continue to get back on a growth trajectory here and achieve our guidance for the year.
Yeah.
Got it and then one follow up like are you seeing more discontinuation.
Our academic setting.
I'm sorry can you repeat the question.
<unk> discontinuation rate is dropping from six to nine months. So are you seeing more discontinuation seen community our academic settings.
Unique insights from the prescribers.
Since the majority of our patients right now are coming from the community setting.
Those patients are coming out of a community not the academic center I think when we think about persistency across the board that we got to look at that whether it be in the academic center to the community.
Thank you.
Our next question comes from the line of Joseph Schwartz with <unk> Securities. Please proceed with your question.
Hi, all this is will on for Joe. Thank you for taking our question today.
So one for us on patient start forms could you provide any other insight into the dynamics at play here other than the seasonality impact.
Given us as a factor last year, but the quarter numbers are still a bit lower than what we saw last year. So other than seasonality kind of could you help us contextualize this a bit and how should we be thinking about these these numbers as we progress into the back half of the year. Thank you.
Yes so.
But the broad seasonality depth definition is one that we're looking at.
So a little bit deeper into that as we look at both the summertime and then Christmas and Thanksgiving holiday. Those are two areas that we're starting to look at.
Not just lupus nephritis trends, but more generally lupus trends.
I mean, even if you look at.
The numbers just reported by by GSK on Ben list.
They are an Rx growth and this is lupus and lupus nephritis combined obviously.
<unk> was very low single digit which was lower than where they were in terms of then rx growth in the first quarter.
So we know that.
There is less engagement from patients into offices and potentially offices.
<unk> connection with those patients themselves so.
So we're watching because last year in both of those time periods. We had the delta variance last year in this time period, and then we add the omicron variant at the end of the year, while we don't have those this year and we're seeing a similar trend as we entered this quarter and into third quarter. So.
We're watching it and all I can tell you is it would appear that there is less engagement in the office and it's reflected in other lupus products outside of just stars as well.
The initiatives, we're putting behind it what I can tell you is everything from driving focused messaging and incentives in our sales force programs. During this period too.
As I mentioned the renewed tactics in certain areas.
Which would include on the patient side, even calling patients trying to ensure that ones that have opted into our renting alliance program are getting proactive calls from or any alliance to ensure that they are seeing their physicians and that there were filling their prescriptions. So I think we're doing everything that we have in our control.
To try to sort of bend the trend on where the psf numbers came in for the quarter is the last point.
As we look at Q3 and Q4, we got to get the trend growth back and it will be a mix between growing PSS and retention and ensuring that we get maximized prescriptions on every week and every month and as you saw in this quarter with a combination of both retention and new patients.
We were able to achieve the quarter and that's why we're confident we can achieve Q3 and Q4 and come into our guidance range of $1 15 to $1 35.
Great. Thank you.
Okay.
Our next question comes from the line of Ed Arce with H C. Wainwright. Please proceed with your question.
Hi, good morning, and congrats on a solid quarter despite the headwinds.
Just one question for me.
Peter if you could.
No.
The IPR process is top of mind with a lot of investors now just wondering if you could give us.
Some sense of.
Your confidence in the strength of the <unk> six patent.
And just general thoughts there.
As this process unfolds over the next.
Year or so thanks.
Thanks, Ed and obviously we.
Have a high degree of confidence in our patents and we have every intention to.
Fully prosecute the patents we have been we have been issued I can't talk a lot about sort of the legal strategy as it pertains to IPR.
But I can tell you we will utilize all the tools, we have in our control to to ensure the longevity of our business and longevity of the patents.
Don't mean to.
Be fairly open ended with the answer but obviously since we are in active litigation, there's not a ton I can say about our defense outside of.
We will and have previously.
Made sure to enforce the patents we've been given.
Okay fair enough.
One follow up.
For for Joe just on the Cogs gross margins noticed that.
Gross margin went down this quarter to 94% from about 99% in the first quarter. Just wondering if there are some dynamics, we should think about going forward or I think you said earlier.
It looks to be stable so around what what level should we expect going forward, yes, I think it should remain fairly consistent with what you saw kind of year to date Joe.
I'm sorry <unk>.
Yes highlighted within the quarter, we had a kind of a one time reserve for our safety stock levels.
Dated back to some of the validation batches and quick launch inventory that we had on hand from.
2019 and beyond.
So if you kind of strip that out you will see that the numbers remain fairly consistent.
Okay fantastic. Thanks.
Our next question comes from the line of Justin Kim with Oppenheimer. Please proceed with your question.
Hi, good morning, and thanks for taking our question.
Maybe just wanted to switch gears, a little bit as you think about sort of long term retention with with patients and so that those numbers up to 912.
Sean.
One of the things we've been hearing has been an interest in biopsy data, presumably from Aurora. Two just wondering if you had any updates there in terms of what might be come available coming.
Six to 12 months.
Yes, two things first off and I know you all do this Justin but if you benchmark our retention.
Number six to nine months versus others that report there.
Their persistency looks like whether biologics and small molecule products in different diseases.
Sure.
Sure.
In terms of percentage percentage numbers, but.
We aspire to entertain.
Percentages to euro and we have strategies in place to try to enact at bolt with the individual patient.
Rod based patient education, and everything down to our own Arena Alliance work in terms of biopsy data as I've said previously there was a subset of patients that we looked at near Aura study.
And Neil you should jump in here too if I Miss anything.
But that that biopsy data continues to be something that because of the way. The way. It has to be scrutinized continues to be reviewed and as I think both deal and I've always said there is a small end here to look at so we should all.
When and if we have this data ready for prime time, just reflect that it's probably going to be of a small end of patients Neil what would you add to that.
No.
That's exactly right Peter.
A small fusion.
Patients had to repeat biopsies.
So as Nolan histology is being able to put those also some samples have been send to way some.
Procurements growth because <unk> be interesting.
But when we get more data on that.
Okay, great great. Thanks, and just a follow up to a prior question.
In terms of the patient scripts.
And thinking about guidance is the right way to think about the low end of guidance assuming.
What <unk> was and kind of like that stable level of scripts is that is that the <unk>.
Going assumption there.
Makes you comfortable.
With maybe no change in guidance that you would sort of revert back to that kind of.
Could you qualitatively sort of Tau.
About how what it takes to to sort of reach that maybe that low end.
Yes, so the first I would say we wouldn't have reaffirmed guidance. If we felt we couldnt couldnt hit in our range and.
We get there is one.
Prescription star forms need to get back to a growth trajectory and that's not important for just Q3 and Q4, but for 2023 and beyond.
And second that we continue to see these types of intention that we've seen up to this date and see potentially slight improvements in that alongside of what our net price has been and what we assume it will adjust students for a fully annualized basis. So it's all of those components Justin.
Okay, great. Thanks, Thanks, so much.
Our next question comes from the line of Olivia Brayer with Cantor Fitzgerald. Please proceed with your question.
Hey, good morning, and thanks for the question I wanted to ask a follow up on on patient start forms. It looks like you had about 111 in July which is obviously trending lower than second quarter. I know you guys mentioned earlier that you think you can get growth back in third quarter and fourth quarter. So can you just help us with when youre expecting to see that growth.
And then I've got a follow up on my team.
Yes.
Listen the growth.
We're expecting.
In order to see throughout the quarter.
Sure.
The initiatives, we are driving with our sales organization the intensity, we're putting down on this as we sort of cleared through August and in December in September October we need to see these numbers get back to an increased trend.
So.
I would say now all the way through Q3 until the end of the year.
So I mean thats.
That's the short answer.
Want to reoccurring before said, it's a combination of not just PSS growth trend because you have to add that on top of that you have to have a very solid net price and you have to have solid patient retention. So without so they all have to be working together and that should be evidenced through the quarter. We just we just reported.
Okay got it and then on IP can you remind us what other levers you guys have to pull in additional patents that could extend your IP beyond that 2027 composition of matter.
And also when we could get updates on those thank you.
Well the first it's already been issued is the one that's in question relative to the IPR Challenge, which is R. O 306 patent that.
You all know.
It was a patent that was issued a couple of years ago by the U S. PTO based upon the observation we saw on both of them.
The aura and Aurora.
When dose adjusting downwards based on Egfr response, we actually saw improvement in terms of patient response in terms of they are.
They are lowering of proteinuria. So that patent goes all the way to 2037. In addition to that patent we have additional filings on file with the U S. PTO that we'll talk more about as we get closer as these these patents issue, but I would think of these more as ring fencing strategies around the patents.
The current pad currently have.
So.
Constantly looking at where we might be able to either through the data we've generated towards the generation of new data bolt on.
Different unique patents were able to file and of course, looking and exploring different formulations et cetera that could help bolster that but we can only talk about when it becomes real.
Those conversations as well as active patent filings are the.
Files are in motion or in conversation at this stage.
So we intend to continue to see the IPR through.
And we will keep all options open as we as we execute on our strategy and defend our defend our.
IP.
Okay, great. Thanks very much.
Absolutely.
Our next question comes from the line of Soho Durango with RBC. Please proceed with your question.
Hi, This is oftentimes go forward Doug me.
Thank you for taking our questions could.
Could you please comment on the recent grads.
I understand it was slow in Q1 because of for Micron in Q2 myself.
<unk>.
It might have improved.
So quarter to date is there any improvement in the refill rates versus Q2.
Improvement I'm, sorry, I didn't get the improvement and what I am sorry <unk>.
Our refill rates.
Yes.
Listen I and Joe you can I don't know if theres anything trend wise, we can we can comment on our retail rates were better and I think that.
An example of word.
Drawing this business has multiple parameters right, it's bringing in new patients, yes, and then it's retaining the patients that we have in ensuring that they stay on.
The right dose of the product so I think thats.
Good education of our patients.
Do we have to continue to do that I think we need to follow up with these patients through both the <unk> Alliance and through the physician office and in the six Sigma sort of way of ensuring that we have.
Tackle points of driving new prescriptions and trying to ensure retention of the patients that we've got Joe can you add any more color on retail rates.
Yes, as we mentioned we shipped the highest number of wallets to date this past quarter. So.
I think from a number of wallets per patient on average we're seeing those rates are still pretty good we haven't seen kind of dose adjustments coming into play too often.
So our refill rates are strong per patient and youre seeing that kind of bleed through in the average number of wallets, we are shipping per patient per month.
Thank you so much that's one.
There are no further questions in the queue I'd like to hand, the call back to management for closing remarks.
I want to thank everyone for joining us today, we look forward to updating you in the upcoming months and next quarter. Thank you very much.
Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation you may have.
Disconnect your lines at this time and have a wonderful day.