Q2 2022 PLx Pharma Inc Earnings Call
The conference will begin shortly to raise your hand during Q&A you can dial star one one.
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The conference will begin shortly to raise your hand during Q&A you can dial star one one.
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Yeah.
Yeah.
Hello, Ladies and gentlemen, thank you for standing by and welcome to the P. L X pharma second quarter 2022 earnings Conference call. At this time all participants are in a listen only mode. Following the presentation. There will be a question and answer session. Please be advised that today's conference call maybe recorded.
I would now like to hand, the conference over to Janet Barth P O Lexus Vice President of Investor Relations and corporate Communications. Please go ahead.
Thank you and welcome to today's conference call to discuss <unk> 2022, second quarter financial results and business update before we begin let me remind you that our 2022 second quarter earnings release can be found in the Investor Relations section of our website at Www Dot P. L X pharma dot com and Asics.
It's to the form 8-K, we filed ahead of this call.
This conference call may contain forward looking statements, including statements about or references to our outlook regarding the company's performance, our internal models and our long term objectives. All such statements are subject to risks and uncertainties that could cause actual results to differ materially from what we say during the call today.
Please refer to our most recent periodic SEC filings for more detail on these risks and uncertainties, including the risk factors section in our annual report on Form 10-K. The company undertakes no obligation to update or revise any forward looking statements. Additionally, the information we will discuss today contains certain financial measures that exclude amounts or are subject to adjustments.
The effect of excluding amounts that are included in the most directly comparable measure prepared in accordance with generally accepted accounting principles a reconciliation to the most comparable measures presented in accordance with GAAP. Please refer to the table in our earnings press release available on our website and included as an exhibit to our form 8-K filed today.
For the benefit of those who may be listening to the replay or archived webcast. This call was held and recorded on August 12, 2022. Since then <unk> may have made announcements related to the topics discussed. So please refer to the company's most recent press releases and SEC filings.
I will now turn the call over to Natasha Giordano, Alex as President and CEO .
Thank you Janet good morning, everyone and thank you for joining our call today in conjunction with our second quarter result morning, we communicated the following important.
We commenced a formal process to evaluate strategic alternatives to enhance stockholder value.
We reported positive results from our Geismar 81 milligram patient experience survey and we streamlined our sales and marketing plan significantly reducing our vascular care specialist team.
In the context of our lower than expected sales results. This quarter. We've taken these important steps to protect the value of our brands and our company.
Watching basketball or almost a year ago, we've been unwavering in our focus on driving market awareness and acceptance during the second quarter, we intensified our focus to more strongly differentiate novel art and communicate the advantages from other older aspirin formulations and Todd.
And at this message to a broader audience.
And health care professionals for HCP.
I will review some of these significant initiatives.
Few minutes.
We have also invited back Doctor.
Ali I preventative cardiology influencer in early adopter back to provide an update on his clinical experience with the product and its personal efforts to raise awareness about the efficacy and safety with his patients and his colleagues, but first I'll review of our second.
Quarter financial performance I will turn the call over to Rita O'connor, our Chief financial Officer, and head of manufacturing and supply chain.
Thank you Natasha and Hello, everyone overall, our second quarter results reflected a number of factors, including continued drawdown of retailer inventories and continued expense management on a sequential basis net sales were lower due to the timing of trade reorders, including the nonrecurring product display purchases that occurred in the.
First quarter in support of American Heart Health month in February .
Additionally, second quarter revenue included $400000 of unfavorable adjustments, which related to higher trade allowances and incremental sales return reserves.
The increased trade allowances were associated with retailer pricing programs position during the quarter and intended to promote sell through of existing retail inventory.
On a macro level the second quarter was dominated by economic pressures and weak like many businesses experienced a tough inflationary environment that created a shift in consumer spending which put pressure on the rate of acceptance of our product in the marketplace and on our commercial resources.
As has been widely reported in the media the shift in consumer shopping behavior, including shopping less spending less being more price conscious and more likely to buy store brand or generics has impacted the topline and bottomline results of many brands and retailers.
In response, many retailers have reported planned reduction in operational cost, including among other things programs to decrease inventory levels built up during supply chain challenges from previous quarters.
So what does this mean for us.
We continue to have broad distribution in more than 30000 retail stores, including the recent additions of Publix and Harris Teeter, we anticipate adjustments in the frequency of retailer category line reviews and in store resets.
Maintaining broad retail distribution nationwide across mass drug and grocery channels remains a strategic imperative and we will continue to work with our trade partners to demonstrate the value without the war.
On the positive side retailers have told US appeal X is the only one in the category consistently communicating about the importance of aspirin as a foundational therapy for the secondary prevention of cardiovascular events.
On a more micro level the heart health aspirin category continued to be challenged during the second quarter. According to Nielsen data. The category has been in decline since October 21, when media reported on the draft aspirin guidelines and created confusion with both patients and health care professionals in the market.
The category took another hit in late April following media reports of the final published guidelines market data for the most recent 13 weeks ended July 16th shows the continued decline in retail consumption across all leading legacy aspirin brands within the heart health aspirin category.
Moving on to cost of sales, we recorded $800000 of expense in the second quarter, including $400000 of incremental costs for expired packaging materials and a reserve for finished goods inventory at our warehouse that is less than 12 months shelf life.
Also in cost of sales this quarter were higher cost per unit for freight stemming from shipments of our product cases versus large pallets combined fuel surcharges.
Overall operating expenses were $14 $2 million in Q2, a sequential decline of approximately 26% versus Q1 of $19 1 million reflecting.
Continued expense management and strategic reductions in spend as part of our refined sales and marketing plan that was implemented during the second quarter.
As part of that plan, we maintained a base level of advertising on network and cable news programs and shifted away from some of the high visibility television programming, we were doing in previous quarters like the NFL and college football events.
Turning to the balance sheet, our cash and cash equivalents balance as of June 30th 22 was $35 $7 million included approximately $1 3 million in net proceeds from stock sales activity in the quarter under our ATM.
Our cash burn of $16 8 million in the quarter, primarily related to those operating expenses and timing of payments made at the end of the first quarter.
As we previously communicated we have been evaluating options to bring in new sources of non dilutive capital, including business development activities. We have also explored pure financing option. However, given the biotech market dynamics in our own stock valuation, we determined it would be too costly and too dilutive to our stockholders to pursue.
Financing deal in the near term.
Therefore in efforts to extend our cash runway and in response to the macro pressures we experienced during the second quarter. We have further streamlined our sales and marketing plan, including significantly reducing our cardiovascular care specialist team this month.
We expect to see savings from this action in our fourth quarter results. Our goal now is to ensure our cash runway into the second quarter of 'twenty three.
In light of our decision to initiate a formal process to evaluate strategic alternatives. We are committed to making the investments necessary to maintain the base business, we have established for paas or including its current broad retail distribution.
The reality is given the ongoing market pressures, it's become clear to us that the uptake of vascular could be accelerated through a larger commercial organization with resources to drive a more robust commercial plan.
And we believe this product is too important for patients we serve not to be given the best chance to succeed.
We are proud of our efforts to date and establishing <unk> as a leading brand in the heart health Aspirin category. We also believe it would be a very attractive asset in the hands of another company, especially given its broad retail distribution strong patent protection and the potential for significant financial and commercial synergies as a bolt on brand.
Natasha I'll turn the call back to you.
Thank you Rena.
Many companies today, we're not immune to the challenging macroeconomic environment and we felt that the effect on our second quarter results. These macro elements, including a shift in consumer shopping behavior puts pressure on the rate of acceptance of our product in the marketplace and on our commercial resources.
We've moved quickly to further streamline our sales and marketing plan, including significantly reduced our sales floor.
Despite these market challenges, we remain as confident as ever.
For its potential to transform the standard of care of aspirin therapy for the secondary prevention of cardiovascular events and to reinvent aspirin for pain relief. Our product has been well received by early adopters and findings from those the doctors along with online refuse and results from RBC.
Patient experience surveys, which were reported earlier this morning in a separate release further validate its market acceptance.
Cause vascular 81 milligram patient experience surveys designed to gather real world data from patients regarding their experience with the product.
Compelling results from 100 respondents showed that with basketball are 97% felt theyre doing all they can to help support their heart health, 96%, So no issues with their stomach when taking either with or without food.
96%.
You'll remember that take vascular every day.
98% said basketball are easiest swallowing, 95% were satisfied with that more as their aspirin therapy of choice and 90% and 10.
These impressive real world results gathered from patients who've taken vascular 81 milligrams confirm the importance.
Right on.
Peace of mind and managing that.
As well as their overall tolerability and satisfaction when taking aspirin. These results are indicative of the potential uptake of the brand and its important millions of patients.
At this time I'd like to reintroduce our guest Dr. Austin Hawley, our preventative cardiologist clinical associate professor of cardiovascular medicine at the University of Texas Health Center in Houston.
Dr. <unk> has some insights from his own real world.
With that floor as well as feedback from physician colleagues.
Hum.
These departments and top institutions from his conversations around efficacy and safety of aspirin.
Welcome back Doctor Ali Thank you for joining us.
Thank you Natasha and good morning, everyone I'm happy to be here again to talk about my clinical experience with <unk>, which I called Aspen to point out.
Our efforts to wear to raise awareness and education among other health care providers colleagues.
Regarding aspirin efficacy and safety because at the end of the day, that's what we're talking about.
We note that aspirin remains the cornerstone therapy for secondary prevention.
Cardiovascular events.
And that includes heart attacks and strokes.
But for these patients every dose counts and I can't emphasize that more what was found to be less well understood.
ER physicians, who I've talked about this is that the formulation of aspirin formulation of aspirin, absolutely matters and achieving complete platelet inhibition.
For optimized prevention, so over the past several months since I've been on.
Talking with Basil lore, and utilize and get.
In my own practice I've also engaged with several dozen physician colleagues many of them chairman's of institutions around the Texas Medical center about the safety.
Save aspirin and this is sort of how the conversation goes that.
Vascular has undergone the rigors of an FDA approved process and I think that's very important.
The medications that we write for patients with strokes and heart attacks.
I'll have FDA approvals and so the question is why not the aspirin as well so.
Number two is commonly used in tier coated aspirin formulations.
Per the F D. A professional labeling labels it as erratic absorption that's very important.
Obviously absorption with conversations with my colleagues.
Obviously, you have reduced absorption you can have reduced thromboxane inhibition potentially reduced efficacy so cannot absorbing and there's concerns about.
Let's see.
And.
Bottom line, we have another option, we have an FDA approved.
Liquid filled capsule known as Basel or that's shown reliable absorption.
Especially designed to help protect the stomach as well and we have already seen this in published PK PD data, our Basel $3 25 milligrams versus enteric coated aspirin.
25 milligrams, especially in obese diabetics, showing 99% on boxing two inhibition significantly faster in vascular than enteric coated aspirin over.
A three day period.
So the feedback I have been getting for these bullet points in these conversations have been very very positive within my colleagues.
My colleagues are saying well one I did not know that I didn't know these facts number two I wanted to learn a little bit more about that.
Laura the process.
The safety and efficacy are obviously important.
To me and my patients again. This is what my colleagues are saying and I don't want the variability and the absorption of aspirin that can be seen in enteric coated aspirin.
And not only that there's something called shared decision, making the patients to need to know that they're getting the best formulation of the medications that they're receiving.
The question is why not set up our patience for aspirin therapy success off the get go by choosing a formulation that's both cardio protective and designed to help protect the stomach.
And then my own clinical practice I can speak on my own.
Utilization I'm, an early adopter of bats award because it makes sense.
Over the past six weeks alone are already recommended Basel or written Basil over 300, new patients.
<unk> hundred 81 milligrams. These came through different settings directly from the hospital, let's see patients were having heart attacks or strokes.
From the E R. The emergency rooms, where they present with acute coronary syndrome or unstable angina and for my own practice, where patients have issues with.
Heart attacks strokes and peripheral vascular disease peripheral artery disease.
I've looked at other medications these patients were taking as well and just internally into.
Interesting enough about 30% of my patients are taking some type of Gi protective medication, whether that's an <unk> blocker PPI proton pump inhibitor or an OTC, that's where I really believe that gut health issues are there.
An important unmet need.
And I plan to monitor.
Whether patients taking baths or 81 milligrams can help reduce their utilization of these gi protective medications.
No.
<unk> response to date.
One patients have been very favorable product has been well received no adverse effects from the patients.
But more importantly, there is something called shared decision, making where I'm informing patients.
Their medications, we're reviewing their medications and the patients feel assured about an FDA approved product.
Light of their aspirin being Basil or really no resistance or pushback to using the product, especially when it is explained by the doctor or their health care provider based on their own clinical experience, there's additional real world experience in my own practice and my care of patients.
He has given me the confidence just in the last six week of prescribing Batchelor to my patients and are recommending Bachelor.
Our peers. Thank you so much and back to you Natasha.
Thank you Doctor Ali.
We value your insights and analytics.
As you are treating patients that risk each and every day, we're excited and encouraged by the consistency of your patient feedback our own patient survey results and from the feedback that you're getting from other physicians and your effort to educate and inform them about aspirin.
And safety.
A key priority of our second quarter was implementing a refined marketing plan to drive market awareness and acceptance of Bangalore across a broader audience of consumers and <unk>.
Perfect.
To do this we used cost efficient marketing tools, including digital and virtual offerings.
Let me give you some examples.
First in a recent health care professional email campaign, we expanded distribution to include advanced practice provider.
Lee North nurse practitioners and physicians assistants with the addition of these specialties trust the cardiologist and the pharmacists on our original target, we could reach and more efficiently cross.
For both bright house and some.
More than 500000 health care professionals.
They'll open rates across all target audience performed at more than three times the industry benchmarks on average, indicating a keen interest in our new innovative apps.
Second on social media, we've enhanced our presence with value.
Advertising on Facebook and company related news on Twitter and Linkedin.
Our Facebook and occasionally target heart health and pain relief.
Audiences.
Product messaging that highlights consumer's experience with valves a lot in that regard we're excited to feature legendary professional baseball pitcher John small experience using that two or 325 milligrams himself for SaaS.
Pain relief.
Third and medical Communications, we're also driving our differentiated messaging through thought leader less programs such as the series of educational Webinars that were held in June led by unconventional cardiologists and thought leader, Dr. Michael Gibson consultant Boston clinical need.
Sure.
The program was titled Secondary prevention with aspirin.
About the latest FDA approved aspirin formulation.
These virtual programs provided health care professionals and others are for them to learn about the differences in available aspirin formulations, including that tour.
Filled aspirin capsule and the importance of aspirin therapy in the treatment of secondary prevention.
We've adjusted our tactics to strengthen our brand offering and value proposition for basketball to both consumers and health care.
And we remain as confident as ever in <unk>.
<unk> potential to transform the standard of care standard of aspirin therapy for secondary prevention of cardiovascular events and to reinvent aspirin for pain relief.
For us the patient is central to everything we do and vascular is an important lifesaving option in the treatment of secondary prevention of cardiovascular events with that in mind to ensure the future success of the brand and be able to grow that to the next level. We believe it would require further.
Capital investment to support our broader marketing efforts.
We've been evaluating options.
New sources of capital, including financing deals as well as business development activity.
After initial discussion with several major companies over the past few months external interests and broaden and we together decided to.
Engaged financial advisor Raymond James to commenced a formal process to help us evaluate strategic alternatives to enhance stockholder value.
We believe vascular would benefit from a larger organization with resources to drive a more robust commercial plan.
This crowd of it's too important for the patients we serve not to be given the best chance to succeed importantly, we believe vascular would add significant value as a bolt on brand. It is the only FDA approved liquid filled aspirin capsule onto market and has established national reach.
Failed distribution, including 30000 stores. It has a large addressable over the counter market. It has a novel drug delivery platform with potential for additional product candidates and has strong global.
Action until 2032, and it provides potential for significant financial and commercial synergies.
We look forward to working with Raymond James in this process to enhance stockholder value.
In the meantime, we remain committed to advancing the outdoor market.
Values for our company.
We can now open the call for questions.
Certainly as a reminder to ask a question you will need to press star one one on your telephone.
Again to ask a question. Please press star one one please standby, while we compile the Q&A roster.
One moment.
Our first question.
Will come from Jason Butler of JMP Securities. Your line is open.
Hi, Thanks for taking my question for first question for Doctor Ali can you maybe walk us through how you are helping your physician colleagues.
Navigate through the price sensitivity question when it comes up given the broader economic backgrounds.
Absolutely so.
I will point out and I didn't point out aren't doing my conversation.
We are trading some strategies.
Around some colleagues in fact one.
I won't be able to mention the name of the institution major institution, that's looking at a what we call it our.
Amidst a bed type of.
Thanks.
Answering your question if you have a patient who comes in with a stroke or heart attack.
Save something because I just find it so interesting when we have these conversations about pricing.
The cost.
Typical patient that has a heart attack will leave the hospital on a least five medications five new medications.
The least expensive of which of.
Of these five medications would be an aspirin or basel or as we're changing prescription behavior.
What's extremely important and this even came from Dr. Gibson's.
One process of thinking through <unk> is we wanted to set up patients for success. After a heart catheterization. For example, if he puts in a stent the most important point of.
The follow up on these patients is wanted to make sure that the stent.
Was placed and is working.
For it to work, we have to onboard certain medications and one of the most important is aspirin.
It's paramount that.
The least expensive at these medications out of those five medications as aspirin. The most expensive could be 500 plus per month. So we're talking about pennies versus hundreds of dollars of medications that are onboard it for secondary prevention. After a patient has a heart attack or a stroke.
So the conversation even in a major institution for midst of beds is we want to protect the patient as much as possible have the best efficacy best safety best absorption that we can get.
The least expensive of all of the medications that we're talking about is.
Aspirin and <unk> in this case.
Great very helpful. And then for the company I guess two questions number one can you talk to us about what.
What you would be looking for in a potential partner.
The attributes that you think that would be valuable to help grow the brand and then secondly.
The.
The effort to.
Increased focus on the pain benefits of aspirin and can you just talk a little bit more about how you're you're.
Messaging that to physicians. Thank you.
Yeah sure.
Sure Jason.
Morning, Thank you for your question.
So I'll take the first one.
What would we be looking for in a partner.
Listen we're in a small industry.
We're looking at companies that have the resources that have the expertise that have grown and Brian .
Over over the years very very successfully and you could think about you right off the bat there could be consumer companies they could be RF company, given the way that aspirin.
Aspirin is a foundational therapy in the treatment of secondary prevention. It's also as a class <unk> guideline not only.
On the vascular disease, but also in peripheral artery disease.
There's a lot of usage for for aspirin.
That area.
So we really are looking for a company and a partner that believes in the product certainly but that has the the knowhow experience.
Resource.
Accelerate the brand grows I think what we've done is established a very strong base, we can see in our data that.
That's the basis is growing we're growing new users.
Every month.
That's important for us in establishing that strong base and foundation of a patient and that would be valuable to.
Potential partner.
Interestingly about aspirin in pain, we have.
Really reacted to the feedback from consumers.
Not only online but anecdotally.
Certainly through our position.
Consumers are telling us that they take a bag or one 325 milligram dose and it acts.
Very very quickly, whether you have food or not and it doesn't give them any.
Stomach issues.
Those are anecdotal their online reviews, and as we started getting more and more of them we thought wow. This.
<unk> could reinvent the category the aspirin category for paint and our retail partners are also find that to be very very interesting and as we started to explore we came upon John smelt using vascular did.
Minor aches and pains I, just yesterday, and it's really working very well for him as he plays in itself had a golf these days so.
We think there's a lot of opportunity. We've included the pain focused in our digital program and our Facebook approach and strategy, we're looking to show the market and to other consumers testimonials from.
Yes.
Well, yes.
Just small so we have some really interesting plans to start to increase.
The usage of that war and pain.
Okay, Great I appreciate the color thanks for taking my questions.
Thanks, Jason.
One moment.
And our next question.
Will come from Leland <unk> of Oppenheimer. Your line is open Leland.
Yes, hi, good morning.
Thanks for the update and predicting my questions.
You don't want to ask I mean, given.
Given the more challenging environment.
These dates for the for the retail consumer.
Again, given inflation and.
Everything involving cost of living.
Going up and the price differential adviser Lawrence versus other Aspen just wondering.
How should we think you could comment on the extent to which you may proceed.
The price premium is being a hurdle for the consumer and what sensitivity around that.
You know is such that you could could possibly produce the price and still maintain favorable economics for <unk>.
You could bring in a greater scope.
Uh huh and user buyers.
In this current environment. Thank you.
Yeah, Yeah, you're.
You're right.
The last few.
A few quarters now.
Scenario and the economic issues, sorry, president consumer behavior.
Yes.
People are thinking about how to spend their cash and we're in a spot now you have food you have gas in Europe .
You know where where should I put.
My dollar and so that consumer is making that decision.
Off the shelf and that's why all of our digital media.
Around consumer as well very strongly to differentiate why they should person.
Sure.
And so there certainly is some impact there, but we've tried some programs. They are also where we've done it temporary price reductions and.
I'm not sure that that's the answer either because we actually brought the price back up after a few months.
<unk>.
You walk though is it's.
Allow readout to talk a little bit more and give some more color on track.
Consumer behavior at the retailer shelf.
Yeah. Thanks, <unk>, So remember what Dr. Charlie said you know the interesting thing is what did you say, 30% 35% of his patients are taking a PPI.
Some of the branded PPI starts almost 80 cents a day themselves.
So and keep in mind no. Most of those are five medicines that Doctor Ali mentioned.
Are they are paying their co pay which is about $25 a month already so ours is actually under that so as he said we're still the cheapest medication that this person is on and no. It should save their life. So it's a.
Certainly a priority for them, but you know if they're already on a PPI hopefully we can save them some money.
Okay. Thanks, Thank you and with respect to the.
Exploration of strategic alternatives do you have a.
Kind of a goal in mind with respect to the structure that that may take in terms of what would be a partnership.
With the company would you look to sort of an outbreak.
Sale and I'm wondering if you could give us a flavor of the types of companies.
After that have taken an interest in desert Laura in the franchise and you know them.
Sure.
Things, but.
The types of entities that.
That may be most interested in the product.
Sure.
Our primary goal is to increase the value for our stockholders. So as we navigate the discussions that we've had with some companies there are different opportunities. So it will come down to management and our board.
Which is the most valuable for folgers and it comes in a variety of looks honestly it could be licensing it could be partnerships that could be investment and it could be asset sale or or or in M&A.
We right now in the early stages.
As far as discussions.
<unk> are open to discuss so that we can find where is the most premium value for our shareholders. So that's what guides US right. Now we are encouraged at the interest and I think partnering with a financial adviser Raymond James.
Who knows us very very well.
Is there is the right thing to do and will help accelerate that process.
Okay, great. Thanks, very much for taking my questions.
Thank you Leland.
And our next question will come from Elliot Wilbur of Raymond James Your line is open Elliot.
Okay.
Thank you good morning.
Wanted to direct a couple of questions initially to read it.
Respect to some.
From channel.
<unk> first could you give us a sense of the amount of.
That inventory is still in the.
The retail trade.
And then with respect to all the retailers that participated in the <unk>.
Initial launch in retailers that you've subsequently.
And on to stock the product how many of those are still carry in Basra lore and sort of what is the.
Current.
Shelf space allocation versus maybe what we saw at at launch.
Great I'll take the second question first so that no kind of give you an idea about your first question. So I'm actually pleased to report that we have both doses still in all of those 30000 stores now they're re looking at some of the trial Skus. You know we had a 12 count trials SKU, which we had said.
That it would start to phase out once people would try it and then they would start to phase it out and move towards the 30, count which is more like a subscription model.
But we are pleased to say that they are in all those stores, we added Publix and Harris Teeter.
It's another 500 stores there. So we're pleased to report they're still keeping it they do have inventory out there I won't quantify how much it's a little difficult to say however, based on their reorders you can kind of tell.
We had done some displays and in January so, they're still working that inventory down.
But our goals are to really do some promotions to pull that through for the rest of the year. So we had said that the second half of the year should be bigger the difficult thing is now with the pressures on the retailers themselves I mean, some of the big guys have announced their own pricing pressures the consumers are spending less.
And they also are deeply discounting their inventory. So I don't know if you've been at the shelf recently, but its pretty amazing because they had ordered so much because they couldn't get products now they are trying to give it away because they have so much and don't want it to expire on their shelves. So we will experience those pressures because of their.
Our own economic pressures.
So it'll be a wait and see to see how much reorders, but they are reordering, especially in there in.
In the stores in the southeast region, we're seeing those start to reorder, but I'm, hoping that.
This pull through they'll reorder later this year.
Okay. Thanks, Rita and then question for you I know last call you had talked about the programs you were exploring with respect to some large health care systems in and maybe an amped up strategy in terms of.
Placement of the product and the long term care channel just any.
Any updates that you could provide there and then I wanted to.
Get back to.
And initially I think we've talked about a couple of times a last couple of years in terms of.
In terms of.
The best Avenue for distribution of this product because it's really a clinical shell and I guess, just kind of given where things currently stand.
Is the company reconsidering.
The possibility or considering the possibility I guess.
More of a.
Direct clinical approach more of a managed care shell.
Let me take you.
First a.
Question on on studies.
Yes, we have made some progress actually with several institutions that are very interested in doing some study what's most important to the health care piece.
Okay perfect.
He is.
Hearings and tolerance than even the Fda's focus is on how patients feel when they take their <unk>.
So that they stay on drug that is the most important thing, especially for the millions of people that are suffering.
And they have enough of a heart attack or stroke.
Several institutions that are already too to implement those those programs our real world evidence study.
The issue of course for us right as resources so.
One of the analysts to ask what kind of partner, we're looking for we need.
To be able to partner and we can implement this study right away.
Well known practicing cardiologists and interventional list that are advocating for that or so yes, that's absolutely in our in the plan for us and we think that that would be a successful.
Graham and as well as and LTC approach.
For sure yes.
Your second question, Yes, there absolutely is a clinical component here, but what we've seen in the last year with these.
This macro environment with this.
Thanks.
The consumer is really key to consumer comes to the store orders online we need to capture their heart.
That's why we did this.
<unk> sure if that was the basis of our survey it was to gain acceptance by a number of consumers about 130.
They're in.
And endorsement of how they feel on Bachelor and the focus on it wasn't that the war against another product it was to show the benefit of that.
That patient who is at risk for having us.
Throat and that the results are really compelling.
I'll start such that those patients will go back over 90% will go back and purchase vascular because of how they feel about the long and how confident.
Confident they are.
They are protecting their heart health and having a peace of mind, but most importantly that they would correct.
So the consumer is extremely bad.
I think we are.
And what we're implementing is a broader stronger H D T communication through.
One of the.
Alright, Gary.
Highly respected thought leaders like Doctor Ali like Dr. Gibson, and we have many more that are on it.
With us and that's how we are going to continue to build the base business.
Yeah.
Okay.
Yes.
Yes.
Okay. I did have a follow up question I did have a question for Dr. Lee as well Natasha you cut out there I'm not sure.
It concluded your sponsor.
Just had a technical difficulties, but throughout my question for for Dr. Ali Here I believe in your conversations with colleagues regarding.
As a war.
You get the sense that there's just a lack of awareness of the relative benefits of the product itself or lack of.
Awareness about the limitations of enteric coated aspirin or is there just a general sense that the data on <unk> as it currently stands isn't compelling enough to recommend usage of the product given the incremental costs associated with.
This.
Okay. So great question. Thank you for the question so.
I, absolutely believe kisses and education and awareness campaign.
I will tell you.
And you know.
I'll just tell you that.
Even the very bright.
Cardiology colleagues.
Had no idea that.
Aspirin had not gone through the Viggers of FDA.
I don't think I've met one cardiologists, because we just assume.
The data.
Utilization of the medications that we've had in the past.
Kind of carried through but what you found out is FDA, saying look.
There was a lot of consensus statements made in the past.
And now we want to make sure that every medications patients are taking.
Gone through.
Sort of processes. So I think this is an education and awareness campaign.
And if.
If you ask.
The cardiologists that I'm talking to.
I didn't know.
There was no FDA approval for Aspen, well, yes, there is a new FDA approved aspirin that came out it's called Bachelor Okay.
This whole concept I want to make this very clear of PK PD modeling right, we're talking about absorption and how fast that absorbs and how well you know medications absorb this is not a new story for us.
Ford medications. This has already been played out in marketing campaigns and no acts.
Our novel oral anticoagulation therapies for things like atrial fibrillation pulmonary embolism and DVT.
That that conversation up absorption is not new what is new is that my colleagues, including myself.
And the same.
Arena here did.
<unk> did not know about.
The variability and the erratic absorption again, the Fda's words about aspirin.
And this is a cornerstone therapy, so I will tell the physicians as well as patients alight.
It is called shared decision, making we have to explain to patients what youre, taking and what is the best formulation of the medications and what your options are.
And so it goes back to Ajay education awareness of the patient and the doctors to say what is the best tool that we can use to save a life.
And that's the bottom line.
Yeah.
Okay. Thank you for taking the question.
Thank you Elliot.
Thank you I'm showing no further questions I'd now like to turn the conference back to Janet Barth for closing remarks.
Thank you Latonia and thank you all for participating in our call today. Please feel free to contact me with any additional follow up questions have a great day.
And this concludes today's conference. Thank you for your participation you may now disconnect.
The conference will begin shortly to raise your hand during Q&A you can dial star one one.
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