Q2 2022 Pear Therapeutics Inc Earnings Call

August 11, 2022

Yeah.

Good afternoon, everyone welcome to the pair therapeutics second quarter 2000, and send it to your earnings Conference call. My name is spelled a lot and I'll be your operator today.

All lines have been placed on mute to prevent background noise. This call is being recorded a replay of the webcast will be available in the investors section of the company's website approximately two hours. After the completion of the call and will be archived for 30 days.

I'll now turn the call over to your host Mary Murphy Senior director of corporate Communications.

Thank you Bella welcome to our second quarter earnings call and thank you for joining us today.

With me today are acquired Mccann, our President and Chief Executive Officer, Chris <unk>, Our Chief Financial Officer, and Chief Operating Officer Here in America, as our Chief Medical Officer, Ronan O'brien, Our general Counsel and Julia Sandberg, Our Chief commercial officer will turn it over to Ryan for the Safe Harbor statement good afternoon.

Some of the statements we make on today's call may constitute forward looking statements. This includes statements concerning our future business operating results management's intentions beliefs and expectations about future results events strategies operating plans and performance or financial condition.

And statements regarding proposed federal legislation regarding PDT.

All of which are forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995 as amended.

<unk> results may differ materially from those indicated by these forward looking statements due to a variety of important factors additional information regarding these factors is included in our annual report on Form 10-K, and quarterly report on Form 10-Q filed with the SEC.

Sept as required by law Payor assumes no obligation to update or revise these forward looking statements, even if actual results or future expectations change materially with that I'll hand off to Corey.

Thanks, Ron.

And thanks, everyone for joining us today as we discuss <unk> second quarter 2022 results.

In the second quarter, we made important progress in introducing software based medicines called prescription digital therapeutics for Pdc's as a new class of medicine.

Once again, we grew revenue with 20% quarter over quarter revenue growth in Q2.

Then in July we cut costs, which extended runway during a period, where raising capital could be difficult.

As we laid out in our Investor day in June we continued to demonstrate to patients clinicians and payers that our products can improve outcomes deliver value and increase access to <unk>.

Thomas a pair and PDP is advancing through our three pronged strategy number.

Number one generating advocacy from clinicians patients and patient advocacy groups.

Number two generating access for patients by creating coverage density and finally number three generating real world data that demonstrate durable clinical outcomes and cost savings in excess of product price.

We continue advancing software as mainstream medicine.

For example, two more states are now providing access to one or more of our FDA authorized pdc's.

Another example, 14 blues plans now offer formulary access to reset and re setup.

And finally, we set out has been added as a covered benefit by a subsidiary of Intermountain healthcare.

Each of these milestones represent a step toward our long term goal of coverage density. So that all patients can count on government and commercial payers to pay for PDP.

To share more details on our commercial progress I'll turn it over to Julia.

Then <unk> will discuss the real world data for our products that are being published in peer reviewed journals.

And finally, Chris will walk through financial and operating results as well as the steps we've taken to extend runway.

Julia.

Thanks Corey.

Talk about how we're working to meet patients and providers where they are.

Demand for our products continued to grow in second quarter with more than 11000 prescriptions.

In Q2, we saw more prescriptions from existing customers and we added new customers like Coke behavioral health recovery collection centers of America Unprison muscle.

We continue to make progress across multiple payer channel.

I'll give you four examples.

First Corey mentioned, two new states providing access.

North Carolina has more than 10 million residents and an estimated 6% are suffering from substance.

Orders.

We applaud north Carolina's leaders have to allocate opioid settlement funds to create patient access for FDA authorized PDT for the treatment of <unk>.

Additionally, we have been awarded an agreement with a Midwestern states that we cannot name yet to provide patients access to reset and we set out.

Second of course, Corey also mentioned the pollutants adopting our products.

Thanks to our relationship with Prime Therapeutics Blues plans in Illinois, Florida, Kansas, Minnesota, Montana, Nebraska, New Jersey, New Mexico, North Carolina, North Dakota, Oklahoma, Rhode Island, Texas, and Wyoming, All listed reset.

And resettle on a subset of their published formulary with coverage under the pharmacy benefit.

These additions represent an important step towards coverage density in each of those dates.

Just as importantly, they may encourage other please plan to join their peers in providing access to our products.

Three.

Corey mentioned Intermountain health care, which is the 11th largest nonprofit health system in the U S.

We established established coverage with select health of Utah based non for profit health plan that is a wholly owned subsidiary of inner mountain.

Select helped it added resettle as a covered benefit for its members across Utah, Idaho and Nevada.

Finally on the Legislative front.

<unk> other PDT companies advocacy groups and trade groups.

Our securing co sponsors for the bar bipartisan bicameral federal legislation called access to prescription digital Therapeutics Act of 2022 that would establish a new benefit category at CMS for PDT.

If passed the PDT Act would require both coverage and payment for products in the category.

The PDT Act now has 18 house and Senate co sponsors from both sides of the aisle.

We continue to work with the lead sponsors to identify the appropriate opportunity to attach our bill to the right legislative vehicles.

Which would ultimately turn our bill into law.

Yeah.

Bill becomes law it would be a huge win for repair and the entire PDT category.

Now I'll turn the call over to Gary who will talk about the real world data.

That are proving to providers and payers wide PDT should become mainstream medicine.

Okay.

Thank you Julia.

At our Investor Day in June we presented our continuum of randomized controlled trials.

World clinical data and real World Health economic data.

We believe the payers want products that are safe.

<unk> secure usable and deliver value.

That's why we are providing them a wealth of peer review data to help them understand why pdt's are beneficial to patients providers and payers.

Let's look at the data we are presenting to payers.

Our data show reduced inpatient hospitalizations reduced emergency department use durable clinical effect and overall cost savings.

To highlight a few recent studies reset reduced overall hospital encounters including ER visits inpatient stays by 50% demonstrating total cost of care savings of more than $3500 for patient six months following product initiations.

He said Oh reduced overall hospital encounters such as inpatient stays by 28% in the entire cohort.

And the particularly expensive and hard to treat Medicaid population reset O demonstrated a total cost of care savings of more than $3800 per patient in 12 months falling product initiation.

<unk> reduced overall facility.

<unk> by 53% with EUR reductions of 21%.

Demonstrating a total cost of care savings of more than $2000 per patient in 24 months following product initiations.

In addition to health economic data payers are focused on removing or reducing disparities in care across underserved and minority populations. These.

These disparities have many negative consequences for payers.

Our data continue to show that our products are effective across different disease states different geographies different socioeconomic status is different ethnicities.

For example, we recently presented study data at the American Psychiatric Association annual meeting that show similar engagement with reset among patients across a broad range of U S geographic regions, including urban and rural.

These data highlight the scalability of Pdt's to address underserved and minority populations and to improve health equity for those seeking recovery.

As we've discussed previously one of the great advantages of PDT is that they collect data as they treat patients. We look forward to utilizing these data to develop larger and longer datasets to strengthen our value proposition and to ultimately provide access to all patients who could benefit from a new class of medicine.

With that I'll hand, it over to Chris.

Thanks Jerry.

I'll start off by sharing our financial results and operating metrics.

Then I'll discuss our recent cost cutting measures are the implications for our business.

Lastly, I will share revisions to our guidance and then open the call for Q&A.

We reported a second quarter revenue of $3 3 million up 20% over the prior quarter and up 175% over the same quarter last year.

This growth rate was lower than our expectations.

Primarily due to the difficulty in predicting access agreement timing and elongated government sales cycles.

Nevertheless, it is a strong revenue growth and further validation of our commercial model.

Turning to our core operating metrics.

We will start with total prescriptions.

We added more than 11000 total prescriptions in Q2 in.

In line with our expectations.

Please note however that in connection with our restructuring.

We have begun making changes to narrow the focus of our commercial efforts.

These changes deep prioritize collecting data from unpaid scripts.

We prioritize.

Both revenue and data from paid scripts.

We believe this prioritization will help us improve payment rate.

It has consequences for total prescriptions.

Therefore, we are revising 2022 total prescription guidance from 50 to 60000 prescriptions to 35000.

45000 prescriptions.

Second fulfillment rate.

In Q2.

A 56% fulfillment rate.

Also in line with our expectations.

Progress we've made here as a result of efficiencies from product updates process improvements at our patient services center and improved integration into clinician workflows.

Third payment rate.

We received payment for 45% of filled prescriptions in Q2.

Lower than our expectations as I mentioned, we are refining our strategy to focus on paid scripts and we expect payment rate to be within our guidance range for the remainder of the year.

Finally AFP.

ASP in Q2 was $1323 per script.

In line with our expectations, our strong ISP is indicative of the favorable unit economics associated with our products.

To further final excuse me to further financial results to note.

One.

On June 30.

You had $107 $6 million of cash cash equivalents and short term investments on the balance sheet.

In line with our expectations.

Our operating expenses were $36 1 million in the second quarter down $1 $4 million from Q1 and in line with our expectations.

This result also is in line with our guidance on our last earnings call regarding a small decline in operating expenses each quarter. This year.

Now, let's turn to the restructuring we announced on July 25.

In response to a challenging macroeconomic environment, we have taken significant steps to adapt our operations and importantly, reduce our operating expenses in 2022 and 2023.

We made these decisions to ensure <unk> is well positioned to overcome the challenges to accessing capital.

Currently face many growth oriented life Sciences and tech companies.

Reducing expenses was in the best interest of fair.

But that did not make it any easier to reduce our workforce.

The employees, who left per helped us bring our products to patients providers and payers.

Thanks, very much for their contributions to healthcare further its mission.

In addition to reducing our workforce, we substantially reduced work on pipeline candidates discovery programs business developments and our dual platforms.

We didn't stop there.

We also narrowed our commercial efforts to focus our resources on areas of highest coverage density while de prioritizing longer term opportunities for the time being.

As a result of the restructuring.

We expect to reduce our operating expenses by approximately $28 million.

Over 18 months.

We expect to spend less in Q3 than we did in Q2.

And we expect to spend less in Q4 than we did in Q3.

We expect quarterly expenses in 2023 to be roughly in line with Q4.

We expect to incur a onetime charge of approximately $900000 in Q3 related to the reduction in force.

We expect to extend runway into 2024, and all but the most conservative revenue assumptions.

And finally, we expect the combination of lower burn rate.

And consistently growing revenue to move us closer to profitability.

Our cost reductions extend runway in a meaningful way because with payers attractive unit economics, our unit economics are driven by drug like ASD and software like contribution margin.

In Q2, we delivered revenue growth, while reducing costs.

And you will see that trend continue.

Importantly, these numbers represent a business with very limited coverage density at this stage of our maturation.

Finally, a few words on revenue guidance.

Based on where we are after Q2.

We think it's prudent to revise 2022 guidance.

$22 million to a range of $14 million to $16 million.

That assumes roughly 20% quarter over quarter growth going forward.

It also reflects the nature of our current business, where the vast majority of our revenue comes from access agreements from states.

Which rarely move as quickly as we do despite their sincere desire to use our products to fight the growing addiction crisis.

As you know payer has not provided formal revenue guidance for 2023.

We understand that there is interest in 2023 revenue guidance and we plan to provide that guidance on our November earnings call.

This is a change from 2022 revenue guidance, which we provided in March.

Our 2023 revenue guidance will be informed by our 2022 results are quarter over quarter growth rate.

And other factors and information available to us in November .

With that Bella, let's open the call for questions.

At this time, if you would like to ask a question you will need to Crestar. One one on your telephone again that is star one one on your telephone you will then hear an automated message advising your hand is spaced please.

Please turn bylaw compile the Q&A roster.

And our first question comes from the line of Judah Frommer with Credit Suisse. Your line is now open.

Yeah, Hi, guys. Thanks for taking the question a couple of financial ones.

I think maybe there was a plan for directory for 2023 versus <unk> 22 at one point there was certainly an inflection expected in sales. So can you just remind us of what the key drivers would be to get to.

Some inflection in sales between 22 and 'twenty three it seems like obviously CPT codes have been a part of that conversation and then secondarily in terms of the reduced 2022 guidance. Any particular reason you didn't do that at the same time as kind of a reorganization announcement has there anything changed since you started.

<unk> steps toward the reduction enforced thanks.

Due to thank you for your question, what I would like to suggest is when maybe break it into two parts Chris.

Chris If you wouldn't mind starting off on guidance and then I'll speak to commercial inflection points sure. So the question was why didn't we provide updated guidance when we announced the reduction enforced on restructuring.

I think the reason is there's two definitely different things going on number one is the restructuring was designed as a reaction to the macroeconomic environment and the difficulty that companies like us face today in raising capital and May face for a good part of next year. So that was.

A decision that was made entirely based on the.

The need to extend runway and at that point, that's what we wanted to make the public aware of we provide guidance four times a year on this call and today, we're talking about guidance and we're talking about the different factors driving that which directly relates to the timing of moving our access agreements forward.

It has little to nothing to do with the macroeconomic environment that faces.

Or that relates to capital raising for companies like us.

Got it.

And Judy maybe if I can just speak to catalysts for revenue growth.

We're very much focused on a concept that we would refer to as coverage density.

And that coverage density is in many ways reflective of payment rate, which is a metric that we report on quarter on quarter.

As you might imagine payment rate is really driven by two fundamental levers.

One is third party payment via access agreements and payer coverage and then the second is targeting providers in regions where that coverage exists.

Right now we're very focused on generating that coverage density and is a great example, you can now see in the state of Oklahoma.

We have a value based agreement with Oklahoma Medicaid and we also now have a coverage decision from the blues plan and the state of Oklahoma.

So that's the way that we plan to go geography by geography achieve coverage density and then target within that coverage density that's really what drives the ramp into 'twenty three.

Got it thank you.

Your next question comes from the line of Michael Cherny from Bank of America. Your line is now open.

Afternoon, and they in particular.

Okay.

And working to understand the business can I ask a question.

Okay.

Sure.

We're having a hard time hearing.

It sounds like Youre cutting out on a cell phone, possibly.

Unfortunately, I am can you hear me.

It's a little bit better now we can give this a second shot.

Okay.

I'll ask the question quickly as we learn more about your large and complicated customers. How do we get how do you get more visibility into the timing of adoption.

As you noted some of the components of really working to best penetrate these formularies.

Mike Thanks for the question than what I might do is just sort of briefly speak to where we are.

And again, our big focus is on states and state Medicaid organizations.

Now we are engaged with more than 30 of those states.

These are conversations that are in various stages of discussions and some of them are actually quite advanced to the point, where states are reaching out to Massachusetts in Oklahoma to really learn how they've turned on coverage.

What you rightly point out is this is a question of timing.

And these are states in organizations that frankly don't move quite as quickly as we would like them to but with all that said we continue to see really the population of states continue to move forward and we look forward to being able to produce some coverage wins throughout the balance of the remainder of this year.

Thank you I'll leave it there.

And your next question comes from the line of Neena <unk> Garg from Citi. Your line is now open.

Hey, guys. Thanks for taking my question I was just wondering if you could talk a little bit more about the growth rate that was assumed in the updated guidance on scripts.

It seems like you did see about a 20% quarter over quarter growth rate in scripts and Q2, but that was it.

At different points up for the restructure and kind of the strategic update in terms of thinking on.

How youre going to refocus commercial efforts. So just curious if you could talk a little bit about that and how we kind of get comfortable with that 20% growth rate can continue with the update of the strategic update.

Thanks, very much for the question I'd love to tagging, Chris to talk a bit more about script growth and the way that we're approaching scripts.

Sure So I'm going to fall a couple of things together in terms of script growth. It is in fact true that we revised our guidance down for script growth because we are going to focus on driving up that payment rate, even if that means missing out on some unpaid scripts that we previously leveraged <unk>.

Quite successfully to generate our large body of real world data that Erie often talks about so there is going to be a slowing of the growth rate in scripts.

The benefit there of course is the <unk>.

Excuse me is the payment rate, we expect that that should should go up.

I think the other part of your question relates to sort of revenue guidance revenue growth the 20% growth rate that I mentioned earlier.

Earlier in the call.

We saw a 20% growth rate Q1 to Q2.

As we acknowledged that growth rate was not consistent with our expectations. It certainly is a robust growth rate.

But it was not as steep as we expected.

That is largely because.

We are unable to make large organizations like payers and state government move as quickly as we'd like and B, we're unable to forecast that with great accuracy, which may go to Mike's question from just a moment ago.

We're working on that but we don't think we have that mastered yet.

I'm not sure we'll ever be able to master predicting the pace at which various state governments move, but we do think we're getting better at it.

So as we provide guidance for the rest of the year.

Want to try and be as transparent as we can be.

With the information that we have today.

And since we just.

Explain that we did not meet our expectations for revenue in Q2 because of the growth rate was not as steep as we anticipated we are trying to recalibrate expectations based on what we know today.

If that growth rate were to slow for any reason, we would let you know that in the next call if that growth rate picks up for any reason, we will let you know that on the next call, but today on August 11th we think it's prudent and wise to forecast growth rates consistent with the one we just saw.

Okay got it thank you.

Your next question comes from the line of Eric pressure from Nephron Research. Your line is now open.

Thank you.

Coming back to your comment about being elongated government sales cycles.

Part of the issue here that you've invested in states that you thought were going to be up and running and paying revenue and they haven't gotten there yet.

And as you dial that back does it change the algorithm for how quickly you will extract revenue as states come online.

Eric Thanks for your question.

I think as I mentioned, we've got activities that are ongoing with more than 30 states right now and so that represents a significant investment on our part.

Love to to again tagging, Chris just to add a bit more color.

Sure So Eric.

Great question Theres, a lot of things going on here. So let me just try and reduce it to a couple.

Sort of simple factors.

We need in order to drive our payment rate up we need to get payers government.

Government payers and commercial payers pbms with self insured employers all the stuff that you know very well so I won't go into great detail there.

We've had some major successes and we're proud of the successes we had in Q2, but theres a lot of work before we can imagine a world where there is universal coverage for <unk> and with our small force, we're working with as many of them to move them as quickly as we can.

It just doesn't go as fast as we'd like in almost all situations. There is a very similar dynamic that is going on with state governments. We are working with many state governments as Corey just mentioned both to get Medicaid coverage up and running and to get bulk purchases through access agreements.

<unk>.

That process.

<unk> to show.

Progress, we continue to add to our pipeline, but getting these deals closed.

Just not moving as quickly as we'd like so when you put all that together.

We are seeing is a healthy growth rate at a continuing improvement of the long term pipeline, but an inability to turn that into revenue quite as quickly as we had anticipated that's what we're talking about today.

Got it.

And.

As I look at the script number is down.

Less than the revenue growth, but I know you said that you're going to focus on revenue paying scripts in the payment rate because.

So and then part because of the shortfall this quarter or how many square the revenue being down more than the script number.

Sure, so I'm going to keep going.

So so the script volume is up quarter over quarter revenue is up quarter over quarter. They are in similar neighborhoods. If you will there is not a simple formula to explain all of that but I think <unk> seized on the fact that our payment rate.

Was not quite as high as we expected this quarter.

Thank you.

Thanks Art.

Your next question comes from the line of Rahul Keith from Lifesize Capital. Your line is now open.

Hey, guys. Thanks for taking the questions.

So I know you've kind of touched on a few times and he noted that payers do seem to be pretty receptive, but I was hoping you could tell us a little bit more about the impact that the clinical and real world data has had.

On payers' willingness to provide access I guess in my mind.

A pretty extensive portfolio. So I'm just trying to ascertain whether there were any lingering questions on the payers and and if so.

What can those questions kind of refocused on that data has already covered.

Yes.

Rahul Thanks for your question and very briefly I wouldn't say that there are lingering questions I think as we mentioned our products demonstrate durable cost savings in excess of product price, which was exactly what payers are looking to see.

With that headline I'd love to turn it over to Europe , and maybe speak just a bit more to some of the detail.

Yes.

Corey and thanks for the question I think is as highlighted earlier in the call.

The evidence and value is a really critical question.

That providers as well as payers and formulary decision makers are asking about.

And as we outlined in the Investor day.

And I'd just summarize some recent studies, we're bringing additional data to bear and so as Corey mentioned, we now have not only our randomized clinical trial data, but we also have real world clinical outcomes and real World health economic outcomes across all three products.

The thing now is bringing that to bear to those payer conversations and just as an example, we recently updated our AMC P dos gains, which are standard dossiers esports most drugs.

All three of our commercial products, which highlight this expanded evidence of clinical and economic outcomes and we have seen in the past both payers and providers being highly receptive to our data. So we're working to use this new data the six month data for reset the 12 month data for <unk>.

And the 24 month data for <unk> to open up access for additional patients.

Got it okay I really appreciate that.

And then sorry, just switching gears, a little bit swung prescribing dynamics I'm wondering if you could touch a little bit on the repo rates that you're seeing.

You see patients are you seeing kind of coming to a steady state or are you seeing certain use cases, where patients are using it over and over and really benefiting from it.

Trends.

Key takeaways that you can speak to.

So rahul thanks for the question as you probably know refill rate is not a metric on which we currently report or provide guidance.

That said.

As I'm sure you are aware, we have disclosed some public data looking at the health economic and clinical outcomes impact of multiple prescriptions. There does seem to be a positive correlation between the number of prescriptions.

The aggregate clinical outcome. So we view that all is very positive and just as a bit of a teaser that scenario, where you could imagine we might be collecting additional data and putting forth additional publications.

Got it yes.

Colorado looking for I really appreciate it thank you guys.

Thanks Rommel.

Your next question comes from the line of Cana Cai from Chardan. Your line is now open.

Thank you.

Within geographies, where you have coverage.

Sales and marketing efforts are you finding our most successful in getting.

Scripts written.

Okay. Thanks for the question. It's a good one I think as we've discussed previously we.

We have a hybrid effort, which includes both boots on the ground who are converting.

Prescribers at a clinic by clinic level, so really coming in and instituting the product seen very much. The same way that you would expect to see for an enterprise software solution as opposed to a.

Clinician by clinician detail like you might assume from a pharma product.

In addition to that we've put up what our tele prescribing capabilities and you saw in Q2, our work with groups like pursue care and quick MD to be able to provide remote and directly targeted bowl scripts going into these different areas of coverage density and.

I would just lay the guidance that you should expect US you should expect to see us continue to enact that playbook I think the the demand that we're seeing is strong the data that we're seeing is strong and we are turning payer coverage on I think as Chris mentioned, it's just a question of bringing those two things together and the timing around <unk>.

And those two things together.

Okay and separately for summer Qual.

Qualitatively can you speak about where youre trying.

Trying to establish coverage for that.

Okay, we haven't broken out product by product guidance.

What we can say is that some receipts earlier in the process, then reset or we set up.

So, whereas with reset and reset Oh, we've got significant prescribing across most states.

We've got robust bodies of real world and clinical trial data.

You may have seen actually yesterday, we just put out the first real world and health economic data for Sunquest. So we've certainly seen that playbook of advocacy.

Demand and data be effective for reset and reset out and you can think about <unk> as being much earlier in that playbook.

And that essentially will be running the same playbook for some risks.

Alright. Thanks.

Your next question comes from the line of Marie Thibault from BPI.

Hi, Thank you for taking the questions. This afternoon I wanted to follow up here on and perhaps I missed it but I wanted to hear a little bit more about the strategy you have to.

Focus on the paid scripts and your confidence in payment rates remaining within that guidance range that you've given us.

Just wanted to hear a little bit more about that and whether payment rates have affected prescriber reactions whether it's.

Swayed them to continue or not continue prescribing if that's a factor at all for that.

Thanks for the question and.

Italian Chris to really highlight the transition that we're making from spend to grow to grow to spend.

Sounds good and then prescriber reactions, maybe I'll, Australia tag in on that but I will handle the strategy to deemphasize unpaid scripts. So we don't provide all of our competitive playbook on calls like this but at a high level.

Want to make sure we try and articulate is that last quarter, we introduced a new metric called payment rate because we thought it was important and.

When we provided guidance for it that was consistent with our experience in Q1, and then we expect it to be consistent with our experience for the rest of the year.

As we acknowledged earlier in this call we were below our guidance.

That is primarily a function of.

Not being able to move access agreements forward as quickly as we as we had anticipated.

So what we're going to continue to do is focus on moving access agreements forward.

Focus on moving scripts through in those limited areas that we have moderate coverage sensitive we are not going to put as much emphasis on trying to bring up new sites, where there's no coverage density where we would generate a lot of unpaid scripts that would be quite huge.

Full in terms of continuing to generate more data for Uri to analyze but would not bring in revenue.

So the point here is we're at the point now where we have enough scripts, where we can get the data we need from paid scripts and we don't need to work so hard to generate unpaid scripts in order to get.

That data.

Does that makes sense.

Yes that makes a lot of sense would love to hear the prescriber reaction to what Youre hearing from that early early days of the strategy.

Okay.

Thanks much for the question.

Hi, Chris.

Prescriber reaction.

Is.

It's positive to make sure that we are focusing on bringing prescription.

Patients that utilize and subsequently get we get paid for them.

Then it add confidence to the prescriber base.

We communicated to them again that their patients will be covered for our products.

No not.

Positive early days.

As we continue to facilitate the strategy.

Okay. That's really helpful. Thank you both for that and then maybe I can use my follow up here on the physician fee schedule proposal.

There was mention of creating four new <unk> G codes wanted to hear a little bit about what that means for.

2023, Medicare coverage on on some of those codes and.

How it aligns with sort of your expectations or your strategy going forward. Thanks again for taking my questions.

Yes, Mark Thanks for the question and I think in brief our assumptions for Medicare coverage run through the federal legislation.

That's really a place where the new benefit category is.

As required in order to turn on a fee for service Medicare reimbursement.

That said, we did provide comments on the hix picks code.

And in our testimony, we reinforced our position that we believe that discrete Hicks <unk> codes should be assigned.

And I think this is reflective of the diversity of different PDT modalities and Pdt's that are out there as opposed to just a single PDT modality or PDT.

We definitely don't think that a single <unk> fixed code is sufficient to cover the array of fit similar pdt's, but it start and we'll continue to work with CMS to really refine that position.

Thank you.

And I see no further questions at the queue I would now like to turn the conference back to Dr.

<unk> codes should be assigned.

And I think this is reflective of the diversity of different PDT modalities and Pdt's that are out there as opposed to just a single PDT modality or PDT.

We definitely don't think that a single fixed fixed code is sufficient to cover the array of fifth similar pdt's splits start and we'll continue to work with CMS to really refine that position.

Thank you.

And more cost savings.

We started the third quarter by pausing, many projects and reducing our workforce.

We're confident that reducing our burn rate was the right thing to do in these unusual times and we believe that reducing costs. While revenue growth is the right thing prepare at this point in its evolution.

That's because it accelerates our march towards becoming a sustainable business.

Look forward to reporting our progress in November .

Thanks to everyone for your time today.

Always please reach out to Meara Murphy, our head of corporate communications. If you have any new growth is the right thing preparing.

That concludes today's call Goodnight.

The conference will begin shortly.

As Johan during Q&A, you can dial star one one.

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Good afternoon, everyone welcome to the Pier Therapeutics second quarter 2000, and send it to your earnings Conference call. My name is Phil.

And I will be your operator today.

All lines have been placed on mute to prevent background noise. This call is being recorded.

Replay of the webcast will be available in the investors section of the company's website approximately two hours. After the completion of the call and will be archived for 30 days.

Now turn the call over to your host Meara Murphy senior director of corporate Communications.

Thank you Bella welcome to our second quarter earnings call and thank you for joining US today with me today are Brian Mccann, our President and Chief Executive Officer, Chris <unk>, Our Chief Financial Officer, and Chief Operating Officer, Gary <unk>, Our Chief Medical Officer, Brendan O'brien, our general.

Paul and Julia Sandberg, our Chief commercial officer, I'll turn it over to Robyn for the Safe Harbor statement good afternoon.

Some of the statements we make in today's call may constitute forward looking statements. This includes statements concerning our future business operating results management's intentions beliefs and expectations about future results events strategies operating plans and performance or financial condition and statements regarding proposed federal.

Legislation regarding PDT.

All of which are forward looking statements within the meaning of the private Securities Litigation Reform Act of 995 as amended.

Thanks, Ron.

And thanks, everyone for joining us today as we discuss <unk> second quarter 2022 results.

In the second quarter, we made important progress in introducing software based medicines called prescription digital therapeutics for Pdc's as a new class of medicine.

Once again, we grew revenue with 20% quarter over quarter revenue growth in Q2.

Then in July we cut costs, which extended runway during a period, where raising capital could be difficult.

As we laid out in our Investor day in June we continued to demonstrate to patients clinicians and payers that our products can improve outcomes deliver value and increase access to <unk>.

Thomas appear and PDT is advancing through our three pronged strategy by number one generating advocacy from clinicians patients and patient advocacy groups.

Number two generating access for patients by creating coverage density.

Finally number three generating real world data that demonstrate durable clinical outcomes and cost savings in excess of product price.

We continue advancing software as mainstream medicine.

For example, two more states are now providing access to one or more of our FDA authorized pdc's.

Another example, 14 blues plans now offer formulary access to reset and re setup.

And finally <unk> has been added as a covered benefit by a subsidiary of Intermountain healthcare.

Each of these milestones represent a step toward our long term goal of coverage density. So that all patients can count on government and commercial payers to pay for Pdt's.

To share more details on our commercial progress I'll turn it over to Julia.

Then <unk> will discuss the real world data for our products that are being published in peer reviewed journals.

And finally, Chris will walk through financial and operating results as well as the steps we've taken to extend runway.

Julia.

Thanks, Corey So let's talk about how we're working to meet patients and providers where they are.

Demand for our products continued to grow in second quarter with more than 11000 prescriptions.

In Q2, we saw more prescriptions from existing customers and we added new customers like Coke behavioral health recovery connection centers of America and Prisma health.

We continue to make progress across multiple payer channel I'll give you four examples.

First Corey mentioned, two new states providing access.

North Carolina has more than 10 million residents and an estimated 6% are suffering from substance use disorders.

We applaud north Carolina's leaders have to allocate opioid settlement funds to create patient access for FDA authorized PDT for the treatment of <unk>.

Additionally, we have been awarded and an agreement with a Midwestern states that we cannot name yet to provide patients access to read that and write that out.

Second of course, Corey also mentioned the blues adopting our products.

Thanks to our relationship with Prime Therapeutics.

As planned in Illinois, Florida, Kansas, Minnesota, Montana, Nebraska, New Jersey, New Mexico, North Carolina, North Dakota, Oklahoma, Rhode Island, Texas, and Wyoming, All listed reset and resettle on a subset of their public.

Formulary with coverage under the pharmacy benefit.

These additions represent an important step toward coverage density in each of those dates.

Just as importantly, they may encourage other blue plans to join their peers in providing access to our products.

Yeah.

Three Corey mentioned Intermountain health care, which is the 11th largest nonprofit health system in the U S. We.

We established established coverage with blackout.

<unk> base non for profit health plan that is a fully owned subsidiary of inner mountain.

Select help with added reset Oh as a covered benefit for members across Utah, Idaho and Nevada.

Finally on the Legislative front.

Third other PDT companies advocacy groups and trade groups.

If passed the PDT Act would require both coverage and payment for products in the category.

The PDT Act now has 18 house and Senate co sponsors from both sides of the aisle.

We continue to work with the lead sponsors to identify the appropriate opportunity to attach our bill to the right legislative vehicles.

Which would ultimately turn our bill into law.

Yes.

Bill becomes law it would be a huge win prepare and the entire PDP category.

Now I'll turn the call over to Gary who will talk about the real world data that are proving to providers and payers, while GDP should become mainstream medicine.

Alright. Thanks.

Thank you Julia.

At our Investor Day in June we presented our continuum of randomized controlled trials.

World clinical data and real World Health economic data.

We believe that payers want products that are safe.

<unk> secure usable and deliver value.

That's why we are providing them a wealth of peer review data to help them understand why pdt's are beneficial to patients providers and payers.

Let's look at the data we are presenting to payers.

Our data show reduced inpatient hospitalizations reduced emergency department use durable clinical effect and overall cost savings.

To highlight a few recent studies.

<unk> reduced overall hospital encounters, including ER visits and inpatient stays by 50% demonstrating total cost of care savings of more than $3500 per patient in six months following product initiation.

Reset Oh reduced overall hospital encounters such as inpatient stays by 28% and the entire cohort.

And the particularly expensive and hard to treat Medicaid population reset <unk> demonstrated a total cost of care savings of more than $3800 per patient in 12 months falling product initiation.

Some risk reduced overall facility.

<unk> by 53% with EUR reductions of 21%.

Demonstrating a total cost of care savings of more than $2000 per patient in 24 months following product initiations.

In addition to health economic data payers are focused on removing or reducing disparities in care across underserved and minority populations.

These disparities have many negative consequences for payers.

Our data continue to show that our products are effective across different disease states different geographies different socioeconomic status is.

Current ethnicities.

These data highlight the scalability of Pdt's to address underserved and minority populations and to improve health equity for those seeking recovery.

With that I'll hand, it over to Chris.

Thanks Jerry.

I'll start off by sharing our financial results and operating metrics.

I'll discuss our recent cost cutting measures are the implications for our business.

Lee I'll share revisions to our guidance and then open the call for Q&A.

We reported a second quarter revenue of $3 3 million up 20% over the prior quarter and up 175% over the same quarter last year.

This growth rate was lower than our expectations.

Primarily due to the difficulty in predicting access agreement timing and elongated government sales cycles.

Nevertheless, it is a strong revenue growth and further validation of our commercial model.

Turning to our four operating metrics.

We'll start with total prescriptions.

We had more than 11000 total prescriptions in Q2 in.

In line with our expectations.

Please note however that in connection with our restructuring.

We have begun making changes to narrow the focus of our commercial efforts.

These changes de prioritize collecting data from unpaid scripts.

We prioritize.

Both revenue and data from paid scripts.

We believe this prioritization will help us improve payment rate.

It has consequences for total prescriptions.

Therefore, we are revising 2022 total prescription guidance from 50 to 60000 prescriptions to $35000.

45000 prescriptions.

Second fulfillment rate.

In Q2.

A 56% fulfillment rate.

Also in line with our expectations for.

The progress we've made here as a result of efficiencies from product updates.

<unk> improvements at our patient services center and improved integration into clinician workflows.

Third payment rate.

We received payment for 45% of filled prescriptions in Q2.

Lower than our expectations as I mentioned, we are refining our strategy to focus on paid scripts and we expect payment rate to be within our guidance range for the remainder of the year.

Finally AFP.

Our ASP in Q2 was one $323 per script again in line with our expectations. Our strong ISP is indicative of the favorable unit economics associated with our products.

To further final excuse me to further financial results to note.

One.

On June 30, we had $107 $6 million of cash cash equivalents and short term investments on the balance sheet.

In line with our expectations.

Our operating expenses were $36 1 million in the second quarter down $1 4 million from Q1 and in line with our expectations.

This result also is in line with our guidance on our last earnings call regarding a small decline in operating expenses each quarter. This year.

Now, let's turn to the restructuring we announced on July 25.

In response to a challenging macroeconomic environment, we have taken significant steps to adapt our operations and importantly, reduce our operating expenses in 2022 and 2023.

We made these decisions to ensure <unk> is well positioned to overcome the challenges to accessing capital that currently face many growth oriented life Sciences and tech companies.

Reducing expenses within the best interest of fair.

But that did not make it any easier to reduce our workforce.

The employees, who left payer helped us bring our products to patients providers and payers.

We thank him very much for their contributions to help payor further its mission.

In addition to reducing our workforce, we substantially reduced work on pipeline candidates discovery programs business developments and our dual platforms.

We didn't stop there.

We also narrowed our commercial efforts to focus our resources on areas of highest coverage density while de prioritizing longer term opportunities for the time being.

As a result of the restructuring.

We expect to reduce our operating expenses by approximately $28 million over 18 months.

We expect to spend less in Q3 than we did in Q2.

And we expect to spend less in Q4 than we did in Q3.

We expect quarterly expenses in 2023 to be roughly in line with Q4.

We expect to incur a onetime charge of approximately $900000 in Q3 related to the reduction in force.

We expect to extend runway into 2024, and all but the most conservative revenue assumptions.

And finally, we expect the combination of lower burn rate.

Consistently growing revenue to move us closer to profitability.

Our cost reductions extend runway in a meaningful way.

With payers attractive unit economics, our unit economics are driven by drug like ASD and software like contribution margin.

In Q2, we delivered revenue growth, while reducing costs and.

And you will see that trend continue.

Importantly, these numbers represent a business with very limited coverage density at this stage of our maturation.

Finally, a few words on revenue guidance.

Based on where we are after Q2.

We think it's prudent to revise 2022 guidance.

$22 million to a range of $14 million to $16 million.

That assumes a roughly 20% quarter over quarter growth going forward.

It also reflects the nature of our current business, where the vast majority of our revenue comes from access agreements from states.

Which rarely move as quickly as we do despite their sincere desire to use our products to fight the growing addiction crisis.

As you know payer has not provided formal revenue guidance for 2023.

We understand that there is interest in 2023 revenue guidance and we plan to provide that guidance on our November earnings call.

This is a change from 2022 revenue guidance, which we provided in March.

Our 2023 revenue guidance will be informed by our 2022 results are quarter over quarter growth rate.

And other factors and information available to us in November .

With that Bella, let's open the call for questions.

At this time, if you would like to ask a question you will need to press star one on your telephone again that is star one one on your telephone you will then hear an automated message advising you had his wrist.

Please standby will compile the Q&A roster.

And our first question comes from the line of Judah Frommer with Credit Suisse. Your line is now open.

Yeah, Hi, guys. Thanks for taking the question a couple of financial ones.

I think maybe there was a plan for directory for 'twenty two 'twenty three versus 22 at one point there was certainly an inflection expected in sales. So can you just remind us of what the key drivers would be to get to.

Some inflection in sales between 22 and 'twenty three it seems like obviously CPT codes have been a part of that conversation and then secondarily in terms of the reduced 2022 guidance. Any particular reason you didn't do that at the same time as kind of the reorganization announcement has there anything changed since you started.

<unk> steps toward the reduction enforced.

Yeah.

Due to thank you for your question what I'd like to suggest is when maybe break it into two parts Chris.

That was.

A decision that was made entirely based on the.

And has little to nothing to do with the macroeconomic environment that faces.

Or that relates to capital raising for companies like us.

Got it.

And Judy maybe if I can just speak to catalysts for revenue growth.

We're very much focused on a concept that we will refer to as coverage density.

And that coverage density is in many ways reflective of payment rate, which is a metric that we report on quarter on quarter.

As you might imagine payment rate is really driven by two fundamental levers.

One is third party payment via access agreements and payer coverage and then the second is targeting providers in regions where that coverage exists.

Right now we're very focused on generating that coverage density and is a great example, you can now see in the state of Oklahoma.

We have a value based agreement with Oklahoma Medicaid and we also now have a coverage decision from the blues plan and the state of Oklahoma.

So that's the way that we plan to go geography by geography achieve coverage density and then target within that coverage density that's really what drives the ramp into 'twenty three.

Got it thank you.

Your next question comes from the line of Michael Cherny from Bank of America. Your line is now open.

Afternoon.

Business.

Great.

And working to understand the business and can I ask a question.

Okay.

Yeah.

We're having a hard time hearing.

It sounds like Youre cutting out on a cell phone, possibly.

Hi.

Fortunately Ann can you hear me.

It's a little bit better now we can give us a second shot.

Okay.

I'll ask the question quickly as we learn more about your large and complicated customers. How do we get how do you get more visibility into the timing of adoption.

As you noted some of the components of really working to best penetrate these formularies.

Mike Thanks for the question than what I might do is just sort of briefly speak to where we are.

And again, our big focus is on that states and state Medicaid organizations.

Right now we are engaged with more than 30 of those states.

Think what you rightly point out is this is a question of timing.

Thank you I'll leave it there.

And your next question comes from the line of Neena <unk> Garg from Citi. Your line is now open.

Hey, guys. Thanks for taking my question I was just wondering if you could talk a little bit more about the growth rate that was assumed in the updated guidance on scripts.

It seems like you did see about a 20% quarter over quarter growth rate in scripts in Q2, but that was because it opens up for the restructure and kind of the strategic update in terms of thinking on.

Thanks, very much for the question I'd love to tagging, Chris to talk a bit more about script growth and the way that we're approaching scripts.

<unk> successfully to generate our large body of real world data that Yuri often talks about so there is going to be a slowing of the growth rate in scripts.

The benefit there of course is the <unk>.

Excuse me is the payment rate, we expect that that should should go up.

I think the other part of your question relates to sort of revenue guidance revenue growth, the 20% growth rate that I mentioned.

Earlier in the call.

We saw a 20% growth rate Q1 to Q2.

As we acknowledged that growth rate was not consistent with our expectations. It certainly is a robust growth rate.

But it was not as steep as we expected.

That is largely because.

We are unable to make large organizations like payers and state government move as quickly as we'd like and B, we're unable to forecast that with great accuracy, which may go to mikes question from just a moment ago.

We're working on that but we don't think we have that mastered yet.

I'm not sure if we'll ever be able to master predicting the pace at which various state governments move, but we do think we're getting better at it.

So as we provide guidance for the rest of the year.

Want to try and be as transparent as we can be.

With the information that we have today.

And since we just.

Explain that we did not meet our expectations for revenue in Q2 because of the growth rate was not as steep as we anticipated we are trying to recalibrate expectations based on what we know today.

Okay got it thank you.

Your next question comes from the line of Eric pressure from Nephron Research. Your line is now open.

Thank you.

Coming back to your comment about being elongated government sales cycles.

Part of the issue here that you've invested in states that you thought were going to be up and running and paying revenue and they haven't gotten there yet.

And as you dial that back does it change the algorithm for how quickly you will extract revenue as states come online.

Eric Thanks for your question.

I think as I mentioned, we've got activities that are ongoing with more than 30 states right now and so that represents a significant investment on our part.

Love to to again tagging, Chris just to add a bit more color.

Sure So Eric.

Great question Theres, a lot of things going on here. So let me just try and reduce it to a couple.

Sort of simple factors.

We need in order to drive our payment rate up we need to get payers government.

Government payers and commercial payers pbms and self insured employers all the stuff that you know very well so I won't go into great detail there.

It just doesn't go as fast as we'd life in almost all situations. There is a very similar dynamic that is going on with state governments. We are working with many state governments as Corey just mentioned both to get Medicaid coverage up and running and to get bulk purchases through access agreements.

<unk>.

That process.

Tenuous to show.

Progress, we continue to add to our pipeline, but getting these deals closed.

Just not moving as quickly as we'd like so when you put all that together.

We are seeing is a healthy growth rate at a continuing improvement over the long term pipeline, but an inability to turn that into revenue quite as quickly as we had anticipated that's what we're talking about today.

Got it.

And.

As I look at the script number is down.

Less than the revenue growth, but I know you said that you're going to focus on revenue paying scripts in the payment rates cause.

So and then part because of the shortfall this quarter or how many square the revenue being down more than the script number.

Sure. So you want me to just keep going.

Was not quite as high as we expected this quarter.

Thank you.

Thanks, Eric.

Your next question comes from the line of Rahul Keith from Lifesize Capital. Your line is now open.

Hey, guys. Thanks for taking the questions.

So I know you've kind of touch on a few times and as noted that payers do seem to be pretty receptive, but I was hoping you could talk a little bit more about the impact that the clinical and real world data has had on.

On payers' willingness to provide access I guess in my mind.

A pretty extensive portfolio. So I'm just trying to ascertain whether there are any lingering questions on the payers and in <unk>.

What can those questions kind of refocused on that data.

Already covered.

Yes.

Well. Thanks for your question and very briefly I wouldn't say that there are lingering questions I think as we mentioned our products demonstrate durable cost savings in excess of product price, which is exactly what payers are looking to see.

With that headline I'd love to turn it over to Yuri to maybe speak just a bit more to some of the detail.

Yes.

Corey and thanks for the question I think is as highlighted earlier in the call.

The evidence and value is a really critical question.

That providers as well as payers and formulary decision makers are asking about.

And as we outlined in the Investor day.

The thing now is bringing that to bear to those payer conversations and just as an example, we recently updated our AMC P dos <unk>, which are standard dossiers esports most drugs.

And the 24 month data for <unk> to open up access for additional patients.

Got it okay I really appreciate that.

<unk>.

And then sorry, just switching gears a little bit of just one on prescribing dynamic I was wondering if you could touch a little bit on the repo rates that youre seeing.

You see patients are you seeing it kind of come to a steady state or are you seeing certain use cases, where patients who are using it over and over and really benefiting from it.

Trends.

Key takeaways that you can speak to.

Rahul Thanks for the question as you probably know refill rate is not a metric on which we currently report or provide guidance.

That said.

Got it yes.

Colorado looking forward really appreciate it thank you guys.

Thanks Rommel.

Your next question comes from the line of Cana Cai from Chardan. Your line is now open.

Thank you.

Within geographies, where you have coverage.

Sales and marketing efforts are you finding our most successful in getting.

Scripts written.

Okay. Thanks for the question.

Good one I think as we've discussed previously we.

We have a hybrid effort, which includes both boots on the ground who are converting.

Prescribers at a clinic by clinic level, so really coming in and instituting the product seen very much. The same way that you would expect to see for an enterprise software solution as opposed to a.

Condition by clinician detail like you might assume pro forma product.

In addition to that we've put up what our tele prescribing capabilities and you saw in Q2, our work with groups like pursuit care and quick MD to be able to provide remote and directly target a bowl scripts going into these different areas of coverage density.

I would just lay the guidance that you should expect US you should expect to see us continue to enact that playbook I think the the demand that we're seeing is strong the data that we're seeing is strong and we are turning payer coverage on I think as Chris mentioned is just a question of putting those two things together and the <unk>.

<unk> around bringing those two things together.

Okay.

Okay and separately for summer.

Relatively can you speak about where you are at.

Trying to establish coverage for that.

Okay, we haven't broken out product by product guidance.

What we can say is that some receipts earlier in the process, then reset or re setup.

So, whereas with reset on recent Oh, we've got significant prescribing across most states.

We've got robust body of real world and clinical trial data.

You may have seen actually yesterday, we just put out the first real world and health economic data for southwest. So we've certainly seen that playbook of advocacy.

Demand and data be effective for reset and reset out and you can think about some risk as being much earlier in that playbook.

And that essentially will be running the same playbook for some risks.

Alright. Thanks.

Your next question comes from the line of Marie Thibault from BPI.

Hi, Thank you for taking the questions. This afternoon I wanted to follow up here and perhaps I missed it but I wanted to hear a little bit more about the strategy you have to fill.

<unk> focus on the paid scripts and your confidence in payment rates remaining within that guidance range that you've given us.

Just wanted to hear a little bit more about that and whether payment rates have affected prescriber reactions whether it's.

Swayed them to continue or not continue prescribing is that a factor at all for that.

Thanks for the question.

Italian Chris to really highlight the transition that we're making from spend to grow to grow to spend.

Sounds good and then prescriber reaction is maybe I'll ask Julian to tag in on that but I will handle the strategy to deemphasize unpaid scripts. So we don't provide all of our competitive playbook on calls like this but at a high level.

Want to make sure we try and articulate is that last quarter, we introduced a new metric called payment rate because we thought it was important and we provided guidance for us that was consistent with our experienced in Q1, and then we expect it to be consistent with our experience for the rest of the year.

As we acknowledged earlier in this call we were below our guidance.

That is primarily a function of.

Not being able to move access agreements forward as quickly as we as we had anticipated.

So what we're going to continue to do is focus on moving access agreements forward.

Focus on moving scripts through in those limited areas that we have moderate.

Coverage density we are not going to put as much emphasis on trying to bring up new sites, where there's no coverage density where we would generate a lot of unpaid scripts that would be quite useful in terms of continuing to generate more data for uri to analyze but would not bring in revenue.

So the point here is we are at the point now where we have enough scripts, where we can get the data we need from paid scripts and we don't need to work so hard to generate unpaid scripts in order to get.

That data.

Does that makes sense.

Yes that makes a lot of sense would love to hear the prescriber reaction to what Youre hearing from that early early days of the strategy.

Okay.

Thanks much for the question.

Hi, Chris.

Prescriber reaction.

<unk>.

It's positive to make sure that we are focusing on bringing prescription.

Two patients that utilize and subsequently get we get paid for them.

Then it add confidence to the prescriber base.

As we communicated to them again that their patients will be covered for our products.

So not.

Positive early days.

As we continue to facilitate the strategy.

Okay. That's really helpful. Thank you both for that and then maybe I can use my follow up here on the physician fee schedule proposal.

There was mention of creating four new <unk> G codes wanted to hear a little bit about what that means for.

2023, Medicare coverage on on some of those codes.

How it aligns with sort of your expectations or your strategy going forward. Thanks again for taking the questions.

Yes, Maury thanks for the question and I think in brief our assumptions for Medicare coverage run through the federal legislation.

That's really a play.

<unk>, where the new benefit category is.

As required in order to turn on fee for service Medicare reimbursement.

That said, we did provide comments on the hix picks code.

And in our testimony we.

Reinforced our position that we believe that discrete Hicks <unk> codes should be assigned.

And I think this is reflective of the diversity of different PDT modalities and Pdt's that are out there as opposed to just a single PDT modality or PDT.

We definitely don't think that a single fixed fixed code is sufficient to cover the array of fifth similar pdt's, but it start and we'll continue to work with CMS to really refine that position.

Thank you.

And I see no further questions at the queue I would now like to turn the conference back to Dr. Kerr Mcgee picks codes should be assigned.

And I think this is reflective of the diversity of different PDT modality and <unk> that are out there as opposed to just a single PDT modality or PDT.

Definitely don't think that a single X fixed code is sufficient to cover the array of dissimilar PDT splits start and we'll continue to work with CMS to really refine that position.

Thank you.

And more cost savings.

In the third quarter by pausing, many projects and reducing our workforce.

Because it accelerates our march toward becoming a sustainable business.

We look forward to reporting our progress in November .

Thanks to everyone for your time today as always please reach out to Meara Murphy, our head of corporate communications. If you have any new growth is the right thing preparing.

That concludes today's call Tonight.

Q2 2022 Pear Therapeutics Inc Earnings Call

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