Q3 2022 Akili Inc Earnings Call
Greetings and welcome to Kelly third quarter 2022 conference call.
At this time all participants are in a listen only mode.
A question and answer session will follow the formal presentation.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
As a reminder, this conference is being recorded.
Now I'd like to turn the call over to Joshua Young. Thank you you may begin.
Thank you Darryl and good afternoon, and welcome to Kelly's earnings Conference call for the third quarter of 2022.
My name is Joshua young and I'm, the Vice President of Investor Relations for Kelly.
With me on today's call are <unk>, <unk>, Chief Executive Officer.
Franklin Chief operating Officer, and Santos Schoenberg, Chief Financial Officer for <unk>.
After the market closed today, we issued our earnings release, which can be accessed on the Investor Relations section of our website. Additionally, we have posted earnings slides on our IR website that we will reference during today's webcast. This call is being recorded and a replay of the teleconference will be available on our IR website at the conclusion of today's event.
On slide number two we show our forward looking statements during today's call. We will make forward looking statements regarding future events expectations plans prospects or the financial performance of the company. These forward looking statements are based upon estimates and assumptions that while considered reasonable by the comp.
<unk> management.
Certain risks and uncertainties the company's actual results may differ materially from those expressed or implied by any forward looking statements as a result of various important factors.
Is that may cause such differences include but are not limited to those risks and uncertainties set forth in our form 8-K filed on August 23rd as well as other subsequent filings with the SEC.
Information provided on today's call reflects our views only as of today November 10, and should not be relied upon as representative of our views as of any other subsequent date.
We explicitly disclaim any obligation to update or revise any forward looking statements or our outlook.
Also during today's call, we will refer to certain non-GAAP financial measures management does not intend to presentation of these non-GAAP financial measures to be considered in isolation or as a substitute for results prepared in accordance with GAAP, but is it a complement to provide greater transparency a.
A reconciliation of the non-GAAP financial measures to our GAAP financial measures is included in our earnings release and in our earnings slides.
With that I'd like to turn now please go to slide number three and I'd like to turn the call over to Eddie for his prepared remarks Eddie.
Thanks, Josh Hi, everyone. Thanks, so much for joining our first earnings call as a public company.
As you know here at <unk>, we're looking to establish a new class of CNS or central nervous system medicine.
In the third quarter I think we made meaningful progress towards this vision and we're excited to build on that momentum going into Q4.
If you turn to slide four I want to get specific for a moment on the patient need and the market opportunity that we're building into.
Very simply we need better medicine for mental and behavioral health I don't think thats up for debate anymore.
We believe patients need more precisely targeted treatments spin.
Specifically one of the largest opportunities that we see is for treatments that can directly improve cognitive functioning that things like our ability to pay attention to focus to process information across many areas of medicine cognitive impairment and disease. <unk> is now a term that's being discussed more and more with more focus.
For children. This is critical cognitive impairments can impact their school their friendships day to day quality of life, it's really important.
If you turn to slide five.
We know we're in the midst of a growing mental health crisis.
And trading conditions like ADHD has unfortunately remain the same for decades.
There is essentially two options pharmaceuticals, and behavioral therapy and neither of these options specifically target cognitive issues.
Unfortunately, it is also well known that very few families can actually afford or access behavioral therapy. So what that really means today is that for most families that are left with a single option, which is pharmaceuticals.
And we know there is a growing concern across the side about the effects and potential overuse of these pharmaceuticals, especially in children. So.
So we believe providers and patients are ready for new treatment options that are effective accessible and safe.
And we believe they want their treatments to have the possibility to bring joy instead of six.
Got it fair.
That's the need.
We believe that digital treatments that are targeting physiology in the brain represent a new pillar alongside medication and therapy and that's the positioning we're looking to establish first in ADHD and then broadening from there.
If you turn to slide six this is what we built clinically validated and published in peer reviewed journals.
Our <unk> technology platform represents a next generation behavioral intervention and we call. It. This because it is a behavioral targeted intervention, but it is not a strategy or behavioral therapy. It software designed to directly target the neural networks underlying cognitive functioning in this case abstention functioning and it can be delivered through enjoyable.
Software that looks and feels and players like a videogame.
If you look at slide seven we're very proud of our first product out of this platform endeavor Rx as you all know it's authorized by the FDA indicated to improve attention functioning in children eight to 12 with inattentive or combined type ADHD.
This was a product that is meant to be used as part of the treatment program that can include medication or behavioral therapy or education or other resources. So it is that new pillar of medicine that is flexible and can be used with other aspects of medicine.
We're excited that <unk> is currently being prescribed at small scale across the country and so right now at this point in time, the focus of our business is on driving efficient growth and the ADHD market.
To be very clear, we have a pretty bold goal at Kelly and Thats, where our software based treatments to become part of mainstream routine medical care like pharmaceuticals.
Haven't seen that with the digital product today, but we believe it's possible with our approach and with the specific market we're going into.
To that end youre going to hear today the team focused on metrics, primarily that we believe are leading indicators of this mainstream uptake of breath of uptake of Endeavour Rx.
For example, we're excited that today, we've seen prescriptions from all 50 states.
Similarly to date, we've seen over 2000 doctors, who have written prescriptions. So we think it's good early foundation that shows potential indicators of breath.
But right now we are looking to see consistent quarter over quarter growth and that's our focus.
If you move to slide eight.
At increasing scale, we're now hearing from families. The important role that <unk> is playing in their children's lives and you can see some of the testimonials.
Some of the quotes from patients and families. We put here on the slide.
What's really interesting is that these families have also shared with US a sense of empowerment that I believe is pretty rare in CNS medicine and to see that in children is incredibly motivating.
We realize we're creating a new category here. It takes extreme focus and we have an internal focus on execution and iteration to nail and then grow our model.
Our president and CFO , Matt Franklin joined Us in the summer with a career of launching innovative health care technologies, establishing new business models and delivering profitable growth and that's what we're aiming for as a business.
I am excited that our go to market plan is now live.
And we believe we have sufficient capital to fund our current and planned operations until mid 2024.
So if you turn to slide slide nine Im now going to pass the call over to Matt to talk through our business and go to market strategy and our business progress.
Thank you Eddie.
The third quarter marked a significant transition.
Transition point for US we moved from prelaunch activities through the first phase of our commercial launch of <unk> and we're already starting to see an impact.
Take you through that launch looks like and how we plan to scale over time I'll also walk you through the foundational pillars that are critical to achieving our goal of establishing <unk> as part of routine clinical care.
As with ADHD.
Of course, a prerequisite for commercial launch is having a fulfillment infrastructure and over the last 18 months, we built the customer infrastructure picture here on slide 10 that is simple scalable and flexible, allowing us to evolve overtime.
Resigned to enable anyone that can benefit from <unk> or any of our future products to be able to initiate treatment quickly ideally the same day the prescription is written.
Infrastructure is now built and it's working.
If you turn to slide 11, I am going to spend a while on this slide.
Our go to market strategy is focused on three core areas adoption coverage and experience I'll first walk you through our strategy in each of these areas and then I will share progress on key metrics.
First let's look at adoption.
Our strategy is to engage with health care providers with a direct sales force to increase the volume of prescriptions. In this initial phase of our commercial launch we focused on key territories prioritized by market opportunity and bounded by geography that enables us to maintain frequent provider interaction.
We brought 14 sales reps onboard in late Q3 of 2020 team they've been trained and are now engaging with clinicians in the field.
Additionally, we have a small team of inside sales reps to follow up on prescriptions that originate in territories, where we do not yet have direct representation.
The field sales reps are also supported by a medical science liaisons and integrated marketing strategy focused on expanding awareness with health care providers and caregivers.
Our reps are targeting two preliminary groups of providers integrated behavioral health centers and pediatrician they.
Behavioral health centers, our multidisciplinary practices that treat a high proportion of complex ADHD cases intended to adopt innovative treatment approaches more quickly.
Pediatricians are responsible for the ongoing management of the majority of pediatric patients with ADHD.
As any shared our approach is to engage learn quickly iterate and then scale.
Firstly, we are capturing new sites refining capabilities of measuring progress and we believe that these best practices will enable us to efficiently build out our national footprint over the next 18 months.
Now, let's look at our second area of focus coverage.
It's become a part of routine clinical care endeavor be accessible to all patients of one thousands of <unk> prescriptions written today. The vast majority of families are paid out of pocket and we're committed to driving change to improve access and to reduce the current socio economic disparity, we see in treating mental health disorders, including ADHD Rs.
Our strategy is to engage with national Pbms commercial insurers and state Medicaid plans to establish coverage for endeavour.
The market access team focused on each of these stakeholders and while it's early we are seeing positive signals from these efforts.
In the third quarter high marks the fourth largest blue Cross Blue Shield organization with more than 6 million members, including <unk> medical policy for prescription Digital Therapeutics, Inc.
We expect expect leaders like high Mark may influence others to follow in their footsteps.
In addition, we are working with the prescription digital therapeutic industry truthiness legislation called the access to prescription digital Therapeutics Act to enable Medicare coverage and provide a catalyst for commercial and Medicaid coverage.
It's important to note that while families wait with interest cover and <unk>, we provide a patient assistance program for those qualified and also offer at discounted prescription for those paying out of pocket.
Finally, a third area of focus is on treatment experience.
Unlike pharmaceuticals digital therapeutics can adapt to meet evolving patient needs and because <unk> is delivered through an engaging video game format. We have many levers to enhance the product and drive engagement and compliance features such as class territory costumes and creature capture with any treatment can be modified to motivate our pediatric patients to stay engaged with game over time and our partner.
With roadblocks as a great example of the team.
Mobile gaming reward mechanism to encourage completion of treatment basis.
And Kevin the data entrusted to us by caregivers and patients to allows us to not just continuing needs our products and services, but also enables us to deliver insights to families to support their child's overall treatment plan.
These data allow us to work towards creating ongoing relationships with families and quick caregivers to have meaningful discussions with their child care team. For example, we recently introduced endeavor insights a companion app that connects caregivers to their child's endeavor ex treatment.
<unk> insight allows families to get daily snapshot of the child and gaining progress emission completion as well as to the level of effort that we're putting into the treatment.
We have found the caregiver absolutely meaningful endeavor Rx inside their child is three times more likely to complete their broker to day course of treatment with.
We continue to solicit feedback from families and claims refining <unk> based on this feedback.
Now, let's zoom out and look at <unk> metrics to date moving to slide 12 here are the categories that we're looking at as leading indicators that sort of attraction of endeavour ex <unk>.
Prescription volume.
Prescriber and caregiver behaviors and reimbursement.
Pleased to report that our performance in all three areas was strong in the third quarter of 2022.
As a reminder, the majority of our sales force was not live until the end of the third quarter.
Total number of prescriptions written in the third quarter of 2022 is more than 1300, which is 71% increase versus prior quarter, new prescriptions represented more than 80% of the total prescriptions written in the third quarter of 2022.
We're also encouraged by the 44% growth in rebuilds versus prior quarter and this initial phase of the commercial launch.
On the prescriber front, we continued to expand the prescriber universe with greater than 90% growth in the third quarter versus the second quarter and the number of prescribers, who wrote their first prescription for endeavour to.
To date as Eddie mentioned, we've had prescribers in all 50 states.
One thing, we're particularly excited about is that we can.
<unk>, adding more than 100, new prescribers every month, that's 100 prescribers every months late in their first ever prescription for a video game treatment in a small but growing number of providers write prescriptions for multiple patients.
From a caregiver perspective, new prescription conversion from written dispensed in the third quarter continued to be greater than 50% as it was in the second quarter of 2022, which we view as an indication that clients see value in <unk> and are willing to pay out of pocket for the treatment.
Looking at pricing our list price is $450 for a 30 day prescription our average selling price in the third quarter, excluding our patient assistance program was $111, which was similar to the second quarter as we offer patients a self pay a discounted price of $99 for a 30 day prescription.
During the course of the year, we did shift from a 90 day prescription with the $295 out of pocket costs to the current 30 day prescription with $99 out of pocket cost.
Overall, 99% of Defense group prescriptions were paid in the third quarter.
1% of the prescriptions went through our patient assistance program, which means they were provided by us at no cost to the patients in terms of reimbursement in the third quarter about 4% of <unk> prescriptions were reimbursed timeshare companies.
You may notice that we are no longer reporting covered lives.
Issues with visibility and accuracy of source data, which also fluctuates frequently we no longer believe covered lives is a reliable metric to report on an ongoing basis.
With that being said, we do plan to report large confirm covered additions like highmark as well as the percent of reimbursed prescriptions each quarter.
That wraps up our discussion of the work we're doing on the Endeavour Rx launch turning now to our pipeline pictured on slide 13, our platform.
Has the capability to address multiple potential market and this provides a sense of what you should expect to see from us over the next 18 months.
Given our desire to be capital efficient our goal is to keep our resources focused on <unk> commercialization in ADHD label expansion.
ADHD will only do the work needed to keep our pipeline programs ready for clinical activation.
To be clear we are not currently planning to allocate funds to progress. These programs outside of ADHD into the next phase of clinical development beyond the stated milestones.
As I shared we've completed the first milestone on this chart with the transition from prelaunch the launch of <unk> and we also have multiple future market opportunities beyond our initial U S pediatric label.
One future market opportunity is geographic expansion do.
We do not have current plans to launch in the EU, but we do have a CE mark that we received in 2020.
In Japan, our partner Shionogi is actively progressing clinical work towards commercialization.
<unk> initiated an ADHD pivotal trial in Japan in the third quarter and that trial is on track for data readout by the end of next year.
Another future market opportunity as ADHD age range label expansion in the U S. We have three programs here first a pivotal trial in adolescents is on track and expected to readout by the end of next year.
Our pivotal trial in adults is actively enrolling patients, but it's progressing slower than anticipated.
We're currently evaluating adjustments that need to be made to the trial, what's the timeline for achieving the data readout milestone.
Third we are partnering with <unk> on the ADHD program and three to eight year old.
We previously stated and expected first half of 2020 to start with a pilot study. However, tally has undergone a change in leadership.
And as our discussions with this new leadership team are ongoing we are not able to confirm timing for a study start in this age group at this time.
We will provide an updated timeline as soon as possible.
The final expansionary for product platform is in chronic conditions beyond ADHD, where we already have clinical data and I'm happy to confirm that we held our $2 seven meeting with FDA and autism in October 12.
We are also on track for FDA Q sub meeting milestones in multiple sclerosis in major depressive disorder.
Lastly, there are two studies of our technology being conducted by outside academic research institutions and Covid cost.
Data was slated to be read out at the end of this year and while we expect topline data from one of the studies by the end of this year. The second study is delayed by at least a quarter. We have made the choice to analyze the data from these trials together and expect to be able to share top line data from both studies in the first half of next year.
I'll now turn the call over to San Jos for the financial update.
Thank you, Matt and Hello, everyone.
Really excited about the progress that Matt just walked us through.
To remind everyone. We believe our marketed product plus near term clinical programs gives us the potential to expand to up to $8 1 million people with ADHD in the United States.
With the conservative assumptions, we had shared around market penetration that equal behavior and pricing and reimbursement.
Our prior public filings, we have multiple shots on goal to achieve our long term objective of generating at least $500 million of revenue per year within ADHD in the United States in the next five to seven years.
I will spend the next few minutes talking about our Q3 financials and our capital position.
On Slide 15, you can see our GAAP financial performance, we generated $82000 in revenue in the third quarter compared to $64000.
Second quarter of this year and $155000 in the third quarter of last year.
Note that the third quarter of last year included $98000 of revenue associated with the milestone payments from the Sanofi collaboration.
We are reporting a GAAP net income of approximately $53 million in the third quarter of 2022.
Our GAAP financials were positively affected by the earn out shares associated with the leaseback process reliability related to these earn out shares was significantly lower due to a pullback in the TV share price.
Since the liability is based on the Mark to market accounting approach, we recorded a noncash gain of approximately $78 million on the P&L.
Turning to slide 16, we show our non-GAAP performance for the quarter.
This represents the key metrics that management uses to run the business.
These non-GAAP adjusted figures exclude stock based compensation transaction cost allocated to earn out shares and the mark to market change in the fair market value of the earn out liability.
A reconciliation of non-GAAP adjusted financial measures directly comparable to GAAP financial measures is provided in our earnings release as well as at the end of the site presentation.
In the third quarter of this year, we incurred $18 3 million in non-GAAP operating expenses, a decrease of 10% compared to the second quarter of the year.
This decrease was primarily due to the timing of discretionary marketing expenses related to the launch of <unk>.
We expect an acceleration of the discretionary marketing spend in Q4 now that we are in the initial phase of our commercial launch and we are building out our sales force.
From a capital perspective, we ended the quarter with $156 4 million of cash cash equivalents and short term investments. This includes a $132 8 million in net proceeds we received from the business combination.
Now as Mac mentioned, our goal is to keep the vast majority of our focus and resources on the commercialization of endeavor robotics and on ADHD label expansion.
With this capital efficient plan, we believe that we have sufficient cash to fund current and planned operations until mid 2024.
With that I'll hand, it over back to Josh So we can take your questions.
Thank you very much Darrell please assemble the Q&A roster.
Thank you we will now be conducting a question and answer session I would like to ask a question. Please press star one on your telephone keypad.
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Moment, please while we poll for your questions.
Okay.
Our first questions come from the line of Charles <unk> with Cowen. Please proceed with your questions.
Thank you for taking the questions and congratulations everyone on the on your first quarter here.
Eddie.
Wanted to talk a little bit about.
Your thoughts so far on where.
You are in terms of gaining more coverage I know you don't want to talk about covered lives per se, but obviously the high mark.
Coverage decision is interesting now can you give us a little bit more details there.
Is that just mean that endeavors on formulary.
And if so who is it available too.
Is it their fully insured or is it available to all their members and.
And then.
Are you interested more about where where things stands with state Medicaid agencies.
Okay.
Sure Charles Thanks for the question.
So hi, Mark I do view as an important moment for four utility for endeavour, our acts in a bit for this broader category.
So to get more specific on that in your questions Hi, Mark did create a policy, which is medical policy, which is that prescription digital therapeutics, including endeavor, our axon that policy.
When prescribed by a doctor on label is considered medically necessary and so that is a very clean policy.
No prior offs are essentially prior off to label.
And so I think at this point in time, that's really important because it's giving at both access to patients, but it's also creating a framework because to your question about the broader.
Momentum if you will in the payer world. We are seeing engagement, we're seeing continued engagement from payers.
We're seeing more and more payer groups get deeper into discussions, but I do think for Endeavour X. Given this is a category that hasn't existed before there is hesitation on logistically how to create.
Policies, how to put a policy out there that is simple that gives access to patients. So I think high mark gives that blueprint.
I can't say exactly how much that decision will influence others, but.
I am hopeful that that is the type of policy that laser roadmap, our blueprint for others and then certainly it got a lot of press in play in the in the public world and in the.
In the press.
Hi.
In terms of Medicaid. It's a good question that is a focus of ours, we do have a team.
There is focus and discussions with state Medicaid, we have not announced any contracts yet with Medicaid, but this is an area of focus for us and so we do anticipate as we go into 2023. This is an area that we will continue to focus on and it's important.
About at least a third of lives in ADHD.
Fall on Medicaid for Pediatrics, so certainly a level of focus for us and we hope to.
Continue that work and turnover some wins there.
Thanks, that's really helpful. If I could just follow up on the high Mark decision.
That would that would indicate that endeavors covered under the medical benefit and not the pharmacy benefit and do you think that that is that's right.
Is that the path forward do you think for a lot of health plans.
Or have you had discussions with the pharmacy team too.
More of a regular way prescription.
Yes, it's a good question Charles I think it's too early to tell in terms of long term for Endeavour Rx, where what the distribution will look like pharmacy versus medical.
We have done the work and are continuing to work to enable both for endeavour, our acts and so we've been pretty public about flexibility being important given it's a new class.
And so you are right high Mark was medical policy.
I do think this is my opinion is that whereas high market has shown a pretty.
A pretty clear path to put as a medical policy I would expect others to see that as a viable path, but in our discussions with payers there it depends on the payer and there is interest from both so I think there will be a distribution, but in terms of exactly what that distribution will look like I think too early to tell.
Thanks, and maybe just last just squeezing.
Did they indicate why they chose medical policy to put on it.
The medical benefit versus pharmacy.
No and I can't speak for high Mark there they've been public about some of their decision processes, but no I think that's a level of information that we don't have.
Okay. Thanks, a lot and congratulations.
Thanks Charles.
Thank you. Our next question is coming from the line of Judah Frommer with credit Suisse. Please proceed with your questions.
Yeah, Hi, guys. Thanks for taking the questions and congrats on the progress here just wanted to start out with a couple of questions on kind of the initial marketing and sales force effort. So can you give us some idea of where the sales folks are coming from maybe what their their backgrounds are the decision to go relatively broad in a relatively short.
Timeframe, if youre going to expand nationally as opposed to growing I guess with.
More more targeted sales territories and going deeper within those territories and then it does sound like the marketing effort is largely focused on physicians.
What's being done to target caregivers it.
It just seems to us like non pharmacological spend is really driven by the caregivers here.
Okay.
Yes. Thanks, Sheila this is Matt I'll address that so as far as our Salesforce.
I'm actually really excited about the set of diverse backgrounds, yet deep experience that they bring rehab.
Folks that have classic pharmaceutical background prescriptions as Youll therapeutics as well as medical device and diagnostics. So each of them bring something unique to.
<unk> Kelley as far as your comment on going broad quickly as indicated we are starting with this first wave of sales reps, we've on boarded <unk> focused on high priority.
Territories, we are using this opportunity to really learn to collect those best practices and then we can use those best practices to expand over the next 18 months and we.
We do expect to or plan to target a roughly 70 geographic targets across the U S.
In terms of marketing support as I mentioned these sales rep. The.
Our sales reps in the field today are supported by an integrated marketing integrated marketing plan, focusing on bolt hep's as well as caregivers, so caregiver engagement through channels like social media.
It's a critical part of our strategy, we have done that in the past year. We will continue to do that going forward and with all of our programs, we will monitor the effectiveness and adjust the marketing mix as we as we learn.
Okay, Great. That's helpful and then just.
Following up on on the price change can you just give us a little bit of background on.
Kind of what drove the change in in out of pocket pricing.
How do you see this $99.
Missing do you see it as being introductory do you see it is sticking around for an extended period of time and then any insights you can give even if it's anecdotal on on refills are they coming relatively soon after the first script is there.
GAAP in time or anything other anything else you can give us on refill dynamics would be helpful.
Yeah, absolutely. So first on the price change so the move from 90 days to 30 day prescription and the price change were really based on direct feedback from our stakeholders from payers providers from the care Givers, Italy that 30 day prescription aligns better with their practices today, so really trying to.
<unk> gone to that.
As far as how long will we keep the price at the $99.
As a new category of medicine, we're constantly monitoring the market.
Instantly getting feedback and evaluating changes to critical items pricing is one so we're evaluating where that price should go over time, we don't have.
We don't have any.
No information to share at this time it is important to note, though that our risk price did stay consistent at $450 per 30 day prescription.
Okay.
No.
Yeah, sorry, so on retails early data with the launch and having made a number of business changes.
Over the course of the past year.
We'll continue to monitor refills, but our focus right now is on driving awareness the prescriber growth. The prescription growth rebuilds are critical for US we will have more information to share on results and detailed data.
In 2023.
Okay, great. Thanks, a lot and congrats again.
Okay.
Thank you.
Thank you. Our next question comes from the line of Rahul Racket with lifestyle capital. Please proceed with your questions.
Yes.
Hey, guys. Thanks for taking the questions.
I know you guys are driving a lot to sell a lot of new scripts through salespeople, but also externally.
To hear a little bit about whether you're seeing some new patients coming through the.
Telemedicine visits there'll be facilitated by your website I see pretty decent traffic coming from that end.
Yes. Thanks for the question, it's Matt again, yes, there are three ways that.
We see prescriptions come in one.
Initiated by our sales force one is key to telemedicine, the others, some sort of organic demand in those territories, where we don't yet have direct salesforce telemedicine has been consistent contributor for US we haven't broken out the percentage of prescriptions by those different channels.
It's been a consistent performer, it's important for us to offer going forward, but.
But we haven't shared.
Details on that channel yet.
Sure sure.
I appreciate that.
Yes, I think just thinking about providers.
Still early but I was wonder if you could just tell me a little bit about should be providers, who have been writing scripts for more than a quarter.
Seeing these doctors get more comfortable with prescribing <unk> and offering into new patients I think any kind of commentary on how those script volumes are growing from the existing base of providers would be pretty helpful.
Yes, I think.
Thanks for the question again early days.
We haven't we haven't had.
An extensive time with sales force in the field. So we haven't provided additional.
<unk> or forecast around.
<unk> prescription growth of growth.
Okay.
With that said now with Salesforce in the field and our plans to expand geographically over time, we do anticipate continued growth quarter over quarter and year over year growth going forward, but.
But again, we haven't broken out or provided details yet at this point.
Got it.
Alright, and then if I could squeeze one more in.
The results from the election haven't been finalized yet, but based on the changes that we've seen up to this point I guess, how are you guys thinking about how the likelihood of passing the legislation for this Medicare benefit category. It's.
It's changed.
Yes, great question. Thanks Rommel.
I think that the there is a piece of legislation that we definitely support to create a category four.
Prescription digital therapeutics I think just like other FDA approved therapeutic categories. We are still very much behind that.
I think my perspective is that this is something that crosses party lines frankly.
This is not really in the political sphere. This is touching constituents, meaning the lack of the lack of good treatment options is touching constituents across the aisles.
Both sides and so we continue to push and continue to.
Stay the course with our legislation here.
Got it that's helpful. Thank you guys.
Thanks.
Thank you that is all the time, we have allotted for todays call I would now like to hand, the call back to Eddie Martucci for any closing comments.
Thank you.
Thanks, So much everybody in closing we're pleased with our progress there are some highlights captured on slide 17 in short we believe we have the capital to fund the early growth in <unk> and the team to do it.
I am excited about the opportunity ahead of us we've talked about that a bit and the early success signals that we're starting to see.
Right now as you can hopefully tell from our prepared comments and our answers we're focused on quickly adapting in the market to hone our business and our business model to be as efficient as possible and set the foundation for profitable growth as we scale in the future.
So that's what we're doing that's what we'll be updating on and we hope to see quarter over quarter progress. Thank you all for your attention I look forward to continuing to transparently update you on our progress on <unk>.
Hopefully as we help more and more patients with cognitive issues improve their lives.
See that reflected in the business as well so thank you all for your attention.
This does conclude today's teleconference. We appreciate your participation you may disconnect your lines at this time.
The rest of your day.