Revance Therapeutics Inc. Q1 2023 Earnings Call
Welcome to the rebound therapeutics first quarter 2023 financial results and corporate update conference call. At this time all participants are in a listen only mode. Following management's prepared remarks, we will hold a Q&A session to ask a question at that time. Please press star followed by one on your Touchtone phone.
And if anyone has difficulty hearing the conference call. Please press star zero for operator assistance as a reminder, this call is being recorded today Tuesday may <unk>.
Well read ads. Please go ahead.
Thank you operator, joining us on the call today from rebounds, our Chief Executive Officer, Mark Foley, President and stuff in Sip and Chief Financial Officer, Toby Schilke eat during this call management will make forward looking statements, including statements related to 2023 guidance cash flow breakeven operating leverage blackbird.
As your potential our ability to draw on our debt and future revenue expenses.
Before I get a breath potential our city approval and entry into the therapeutics market or potential in other therapeutics indications, our commercial success and director of consumer preferences and behavior, the efficacy and duration of the Africa by the benefits to us practices and consumers of our products and strategy our customer.
[noise] base, the supply and manufacturing of docs are by our sales team, our strategic partnerships and our strategy plant operations and commercialization plans and timing our actual results and the timing of events could differ materially from those anticipated in such forward looking statements as a result of these risks and uncertainties.
Factors that could cause results to be different from these statements include factors that the company describes in the section titled Risk factors in our annual report on Form 10-K filed with the SEC on February 28, 2023, and our quarterly report on Form 10-Q filed with the SEC today May 19 2023.
Undertakes no duty or obligation to update any forward looking statements as a result of new information future events or changes in its expectations.
Also on today's call, we will present, both GAAP and non-GAAP financial measures a reconciliation of non-GAAP to GAAP measures is included in our earnings release with that I will turn the call over to Mark Foley Chief Executive Officer of Romance Mark.
Thank you Jessica good afternoon, everyone and thank you for joining our first quarter 2023 financial results Conference call. We're very pleased to report report our first quarter results highlighted by strong execution on our <unk> launch and the continued growth of our RH a collection of dermal fillers.
Total revenue nearly doubled from last year to $49 million for the first quarter and we continued to see healthy procedure volumes and our target accounts as well as favorable trends supporting the long term growth of the facial injectables market.
With our lead asset launched and our contract manufacturer now online to produce toxify at scale. We're in a great position to continue the growth of our aesthetics franchise.
At the same time, we're excited to see our opportunity in therapeutics quickly approaching with our <unk> date for <unk> for cervical dystonia set for later this summer.
The first year of <unk> launch is an exciting time for the company and critically important from an execution standpoint, since we initiated our docs. If I early experience program in December we've continued to be encouraged by the strong level of enthusiasm and positive feedback we've received from both the aesthetic providers and consumers.
Between the <unk> preview program and recent launch we believe our performance. Thus far is indicative of a few things.
First Dr. <unk> innovative formulation and differentiated performance profile has been highly anticipated by the aesthetics market, we believe with duration being the number one unmet need for injectors and consumers sacrifice novel peptide formulation, along with its ability to enhance aesthetic outcomes without increasing.
And the amount of coronary toxin continues to drive excitement and demand while also shaping the narrative on toxins to our advantage.
Second sacrifice disruptive innovation allows us to approach the market in a way that no. Other manufacturer has before and so far we're very encouraged that our targeted and measured approach to <unk> is continuing to prove out.
Based on our prestige strategy, we're focused on going deeper into accounts versus wide just like we've done with our <unk> line of fillers.
And with our no advertise pricing policy, we are committed to partnering with practices in an effort to help moderate the commoditization of the facial injectables market and assist them and maintaining healthy margins.
Third we have an experienced and proven commercial team with a track record of success, along with an established base of customers.
Recall that this team successfully launched the IHA collection under the same strategy. Despite the operational challenges presented by the COVID-19 pandemic.
We safely conducted thousands of in person and virtual trainings to onboard our sales team and customers.
With that introduction to the market, we look forward to deepening our relationships with our existing practice partners. While also leveraging our leading portfolio to further expand our base of customers.
Lastly, we plan to continue our focus on training and education and believe that our Nashville experience Center serves as an important platform for us to drive customer engagement. While also also showcasing our leading brands and strategy.
Commitment to training education, and patient outcomes is central to ensuring that injectors realize the full benefit of our innovative products we.
We believe this is one of the reasons why the RH a collection of fillers is the fastest growing filler line on the market.
Overall, we feel very good about our progress execution and position and a robust and resilient $3 5 billion dollar U S facial injectables market, which includes both neuromodulators and dermal fillers.
While we believe we were at the beginning of a tremendous opportunity. We recognize that these are early days with hard work ahead of us sacrifice watches our top priority and we remain very focused on successful execution.
Turning to therapeutics, our team has begun laying the groundwork for our anticipated approval of <unk> for the treatment of cervical dystonia, where C D.
Our upcoming <unk> date is August 19, and if approved we anticipate launching a preview early experience program in late 2023, followed by commercial launch in 2024.
In preparation for our entry into therapeutics, we are in the process of building out our managed care and medical affairs teams, while also putting in place the necessary commercial infrastructure to support our planned preview program part approval.
We're making great progress on all these fronts and are looking forward to the opportunity to help <unk> patients achieved sustained symptom relief with <unk> differentiated efficacy and duration profile.
Current U S cervical dystonia market size is estimated to be in excess of $300 million.
With a projected compound annual growth rate of over 7% we.
We believe that CD approval will provide us with a gateway into the $1 billion muscle movement disorders category and further highlight sacrifice potential in other therapeutic indications with that I will turn the call over to Duston duston. Thank.
Thank you Mark 2023 is setting up to be a transformational year for advanced <unk> launch is off to a strong strong start the RJ collection is continuing to grow and we continue to deepen our relationships with our providers.
I'm very proud of the team's strong execution and performance in this first quarter.
Starting with our dermal fillers are HLA sales increased 45% year over year, resulting in Q1 sales of $30 3 million on a sequential basis results were also strong despite Q1 traditionally being a seasonally slower period Fedex market.
We are pleased to see our <unk> density along with the rest of the collection, including <unk> three and four gain wider adoption given the products range of utility and ability to deliver natural looking results for patients.
We continue to be encouraged by our customers' conviction in our filler line and their excitement and adding <unk> to their product mix.
We look forward to building on our commercial success, realizing the synergies of our neuromodulator in filler combination and continuing to grow both product lines under a prestige go to market strategy, which is underpinned by our no advertising pricing policy.
Turning to densify following the conclusion of preview we were pleased to initiate our commercial launch in late Q1 and report over $15 million in <unk> revenue for the first quarter, where a majority of our sales volume came from accounts on boarded prior to launch.
Recall the preview was our early advisory and experience program that spanned from December 2022 to March of this year. Despite the face or during this phase select practices gained exclusive access access to docs about trading tens of thousands of patients and as a result gained significant firsthand experience with this innovative product.
The advisory program led to key insights and learnings that provides us invaluable guidance as we transitioned into commercial launch with a key focus on optimizing outcomes and seamless practice integration.
We continue to be very encouraged by the positive feedback, we're receiving from providers and consumers on their early experience with <unk>, five including duration onset efficacy skin quality and overall aesthetic outcomes.
Date, there's been no shortage of interest from providers as we kicked off our highly anticipated commercial launch in late March with a priority on live in person training. Additionally, we supplemented these in person training with virtual training options in order to enhance our customer engagement options.
Further our <unk> fintech platform generated $180 million of gross processing volume or <unk> for the first quarter and $690 million of <unk> for the trailing 12 months.
Overall, I'm very pleased with our strong sales results and ongoing commercial mentum ending the quarter with over 5500 accounts across our <unk> portfolio.
To support our continued aesthetic portfolio growth, we expanded our sales organization by approximately 50 reps.
Our recently expanded 150 person plus field force will be focused on two key objectives.
First growing our share within the $2 billion U S neuromodulator market with focus and intention. This means driving the adoption of <unk> by going deeper within our early adopters, while also adding new accounts that best fit the profile for long term partnerships.
We believe this targeted approach aligns with our strategy and allows us to deliver the highest ROI as we scale. Our launch it is important to note that the adoption process for accounts can vary but typically follow the standard cadence of training sample trial, and then deeper adoption.
Our second objective is to continue our market penetration of the RJ collection by demonstrating its differentiated properties through continued training and education customer feedback indicates our training program has helped them realize the full benefit of the product utility supporting product adoption and optimal aesthetic outcomes through.
So our strategy, we have quickly gained market share and have significant headroom for growth with the addition of jakafi and our portfolio selling opportunities.
Turning to our operational infrastructure. We are also very pleased to have bolstered our manufacturing supply chain during the quarter in March we received the Fda's approval for our fill finish CMO at <unk> Biopharma, our RG with approval all the inventory that was produced pre approval by <unk> has been released for commercial use and we're in a gray.
Positioned support the growth of <unk>.
Before I turn the call over to Toby I'd like to provide an update on our partnership with Fosun pharma in April <unk> announced that the BLA for <unk> botulinum toxin a for injection for <unk> lines was accepted by review for China's National metal Medical products Administration, we continue to work with our partner in supporting their efforts commercialize our product in China.
Which remains our second largest market globally for Neuromodulators with that I'll turn the call over to Toby to cover our first quarter and full year financials.
Thank you Dustin total revenue for the first quarter 2023 was $49 3 million, representing a 95% increase from the same period last year due to increased sales of the <unk> collection and sales of <unk> revenue for the first quarter included $33 million of <unk>.
Hey collection revenue.
$15 $4 million of <unk> revenue $3 $6 million of service revenue and zero point $1 million of collaboration revenue.
<unk> launched an RG now approved I'd like to note a couple of items related to our cost of product revenue recall in accordance with GAAP, we had been expensing <unk> manufacturing costs incurred in our northern California facility as a period R&D item until the product was approved.
Similarly, with <unk> approval, we will begin capitalizing <unk> manufacturing costs occur incurred at the facility beginning Q2 2023.
When our diversified inventory produced prior to approval is used we expect our cost of product revenue to increase.
Turning to Opex GAAP Opex for the first quarter was $107 4 million.
Impaired to $87 5 million for the same period in 2022, excluding cost of revenue depreciation amortization and stock based compensation non-GAAP Opex was 71 $5 million for the first quarter compared to $59 9 million for the same period.
Last year.
On a year over year basis, non-GAAP operating expenses increased by 19% while revenues increased by 95%. We're pleased to see our operating leverage improve as a result of <unk> launch and our commercial growth and as we scale our operations, we expect to continue.
Senior to realize operating leverage going forward.
As we've previously stated we expect our 2023, GAAP opex to be $460 million to $480 million and non-GAAP , opex, which exclude cost of revenue depreciation amortization and stock based compensation to be $320 million to $340 million.
Our 2023, non-GAAP research and development expense is expected to be $80 million to $90 million.
Turning to our balance sheet, we ended Q1 with $273 9 million in cash cash equivalents and short term investments as we have previously indicated with our current cash position the committed additional $100 million tranche two of our note purchase agreement and our.
<unk> revenues and expenditures, we believe our U S aesthetic portfolio will be funded to breakeven.
Finally, <unk> shares of common stock outstanding as of April 28, 2023 were approximately $84 million with 92 million fully diluted shares excluding the impact of convertible debt.
And with that I'll turn the call back over to Mark.
Thank you Tobey.
In closing we are very excited about the year ahead and believe that we are well positioned to continue our growth and share gains in the facial injectable market and we look forward to expanding into the therapeutics market upon CD approval, which we anticipate later this year.
Fortunately, we believe we have the right people products and strategy that will enable us to execute on our plan and deliver on our blockbuster potential in the U S aesthetics market.
We look forward to updating you on our progress and plan to host an investor day in September of this year to provide a deeper dive into our aesthetics and therapeutics franchises and our outlook going forward.
With that I will now open the call up for questions operator.
Thank you.
I think that we will now open the lines for a question and answer session. If you would like to ask a question Press Star then the number one on your telephone keypad and wait for your name to be announced and let me draw. Your question Press Star One again, thank you.
Okay.
Okay.
It didn't have a question from the landlord of choice Fernandez from.
From Guggenheim. Please go ahead your line is open.
Great. Thanks for the questions and.
Congrats on the quarter.
Just a couple of quick questions in terms of how the and how many preview accounts there were.
Sort of prior to full launch.
Maybe you could just give us a little bit of color in terms of the expansion.
What we're talking about in terms of the potential number of accounts win.
The team is talking about.
<unk> deep.
Instead of broad and then just a second question.
Thank you.
You mentioned that.
Youre going to be operating with I think 150 reps in the field can you just maybe help us understand.
If thats sort of the fully resource field force and.
And how many accounts you would anticipate touching.
With that side of the field force.
Great. Thanks, Seamus so in terms of the number of preview accounts as we said previously preview was designed to be a one quarter plan, where we were going to get experience with a small group of advisers that we're going to use the product in a real world setting we kicked that off in December and sunset of that when we got into March.
Which is consistent what we've previously communicated and as we said on our fourth quarter and year end call. We on boarded roughly 400 accounts or so as part of the previous program and then we said in our scripted remarks that we ended up kicking off launch in March.
But that the accounts that were on boarded prior to launch comprise the majority of the sales volume in Q1, and so we're now moving into the full launch phase and we're really encouraged with how everything is tracking and evolving.
In terms of the expansion if you look at it we've been adding roughly 500 accounts per quarter, we don't have necessarily an internal target, but that's sort of what the sales force has been able to digest when they were kind of a 100 person sales force. So we start with the <unk> launch with roughly 5500 accounts, where we have a relationship across our products and services and given that we have.
Got a relationship with those folks that will be where we start with the <unk> rollout and launch we talked about prestige segment being that the group that we're going after with the big defining.
Portion there being no advertise pricing and we said that we think that's roughly 12% to 15000 accounts.
And so that will continue to be the group that we target and focus on with both our <unk> and <unk>, we launched more broadly and we also said that we believe that that group comprises more than 50% of the.
Facial injectable volume for toxins and fillers in the U S. And then with regards to the 150 sales reps, maybe I'll kick it over to Dustin to have him talk a little bit about how we think about that from a total size and number of accounts and where we're going to go from here.
I think Mark you hit it Brian the target being in that between 10 to 15000 accounts, we feel good about this being the starting point from a rep perspective, but we'll evaluate kind of productivity each year and determine what's the right time to add or or keep going with this force you have so.
We feel good about where we're at with now this kind of big kind of step up from 100 to 150. This allow us to kind of get to that next phase and then we'll evaluate it because each territory will be slightly different from a productivity perspective in terms of number of accounts that can call on.
But our focus is to continue to go as deep as we possibly can and driving that share of market within.
The accounts around <unk> and <unk>.
Great and just one clarification follow up so it sounds like the preview account alone basically took us from the 10% to $11 million that was booked in the fourth quarter of last year.
And then the.
So the incremental five was still with the sort of preview account program.
And now sort of the next leg.
We're we're full launches kind of kicking off more so from the first week of April .
Then anything is that is that an accurate assessment.
The.
Basically what we just went through.
Well its hard I don't know that I fully we're not going to get into the specifics. We tried to give directional commentary because were in the previous phase and that will move into the normal launch and will be.
Consistent with how we've talked about the <unk> launch as well, but I think what we stated was listen if you go back to December we had a lot of accounts that made meaningful purchases before they were really had any experience with the product and as we said at that time that was a pleasant surprise because most accounts will onboard a new product with a training.
Sampling trial, and then ultimately determining their adoption of the technology, there and because of the pent up demand and the fact that these are the first practices to get the product. We saw early purchasing what was encouraging to us in Q1, though is that a majority of the sales volume in Q1 was made up of <unk>.
Purchases from the accounts that we had onboard a prior to launch and so we're now in a launch phase, which we kicked off in March.
That said, how many accounts those are although we did have a bias and a preference towards onboard towards in person training here in Nashville, and now as we get going into kind of a more hitting our stride in Q2 and the launch we would expect that those accounts will go through a more traditional onboarding, where they will again get trained well sample.
They'll do trial and then they will figure out sort of their adoption curve as they move forward, but again encouraging in Q1 based on the Reorders and the support that we had from the previous group.
Next question.
You.
Your next question comes from the line of <unk> Prasad from Barclays. Please go ahead. Your line is open.
Hi, good afternoon, thanks for the questions couple.
Firstly mark of what changes if any are being made from previous phase III commercial launch phase based on any specific feedback that they got from physicians on users.
Secondly, I also would love to get a sense on what feedback you out on the pricing and.
Do you have any <unk>.
Enough information to do.
You decided on pricing for the rest of the year.
And also you commented on.
On most harder than in Q1, <unk> being the Reorders from the ones you onboard in December can you just give them a more accurate split between new orders was on reorder. Thank you.
Sure.
So in terms of what we learned from preview given that taxi had only been used in clinical trials and primarily in the upper face. We were interested in really two main things as part of the preview program. One was clinical performance of the product and the second one was practice integration reconstitution pricing.
They position the product to customers and so we learned an awful lot from this early preview group.
The advisory work that we did along this journey and so what we've seen is that the practices are using the product consistent with other neurotoxins, we've seen a range in terms of how they approach it from re constitution levels.
And we've seen a range in terms of how they are approaching some other areas, but at a high level. We've been very encouraged by their ability to treat their patients very similarly, with how they would do with other neurotoxins, while still getting the benefit of our differentiated performance profile and so we've wrapped all that up and as provided forums.
For sharing that information.
Those that you mentioned is pricing. So we had at the outset of preview some that were charging two times their current neurotoxin. Some that were charging one three to one five and I think in every given practice theyre trying to figure out what do they think that right balances both for their consumers and from the profitability that they're targeting and as you can imagine there is a variety.
Different prices that people pay in the market that's out there I would say.
Or more on average the pricing settling into probably more of that one five times conventional neurotoxin on average, but again you will see a range and so we just learned an awful lot through this early phase and it continues to reinforce it that was the right program and we are right to be discipline, and allowing a little bit of time for a smaller group to really get some experience in.
And as we are now going through the next the Onboarding phase of the launch.
We feel that we've been able to Chris the messaging and everything up around that side of it.
In terms of the pricing going forward, we continue to feel just like with our <unk> that we have the right strategy for now where there are a couple of different price points that customers pay based on the volume that they part that they that they buy at any given point in time of course longer term, we'll continue to evaluate whether or not from a bundling standpoint or other things.
<unk>.
Improvements are optimizations that we want to make with pricing, but we really feel like we're being a good partner right now where we are not obligating people to contractual minimums or anything else and they can buy the products when they want at the volume they want to get whatever price that they think is best for them and so we think thats certainly the right strategy for now and it's proven to be the right strategy.
For RH as sellers in terms of the Reorders, we're not going to get net level of granularity. It's very early but again I come back to we're just we're very encouraged by how the early launches going the feedback that we're getting from the consumers and from the injectors.
And it continues to reinforce our strategy going forward.
Thanks <unk> next question. Thank you.
And your next question comes from the line of Chris Shean Battani from Goldman Sachs. Please go ahead. Your line is open.
Greg can you just clarify something in terms of when you record the revenues, presumably the volume of orders across the different clinicians is varying so to be included within say the first quarter. It sounds as if there was very little in the way of expanded accounts at the end of March there.
Again, when do you actually recognize the revenues on that and then a question in terms of the therapeutic opportunity there.
Again can you give us a sense for perhaps the relative scaling of how you go from I can understand the aesthetic side, having a bit of a prestige segment I'm less familiar with how that would go in terms of the therapeutic aspect some dimensions and sizing of what the cadence of training and ultimate expansion.
Unless it's possible, but given that cervical dystonia is is a condition, where typically injector start low on the dosing side and then increased dosing overtime based on how well the toxin works.
We will get into that more in our Investor day in September , but there will be some subtleties and differences there, but we believe that we're putting the right infrastructure and to make sure that our preview program focuses on high volume injectors that we get the necessary information that we need to lay the foundation for a successful launch.
Thanks, Chris next question.
And your next question comes from the line of <unk> <unk>.
<unk>. Please go ahead your line is Nathan.
Hi, Thanks tried taking your questions and congratulations on a nice progress.
First just a fact.
Question.
And can you discuss in more detail how that original training from the previous program is now in for me Uhm, specifically the messaging to the product punishing grip. So any additional nuances about verifying that those particular in other areas of the face and messaging up expectations to patients would be appreciated you spoke previously but.
Any update that to be would be very helpful. And then based on your commentary it seems like the different pricing tiers and incentives do include situations, where the practice might be able to profit even more on Dr. <unk>. So how should we be thinking about those higher Buckingham order orders as you think about the <unk>.
[noise] practices is that a possibility for the majority of these 5000 accounts as we think about the longterm Uhm is it fair to assume overtime that you already have accounts will ultimately be in that high volume of tier did you get that 10 per cent premium pricing is he talking about deepening the account Uhm and then last question protesting.
Discuss the potential of T T C and the second half this year with the butter lunch. So can you just talk about the balance of leaving it to the individual clinicians and practices to communicate expectations regarding sacrificed attic profile versus some of the other maybe type of other messaging with key learnings from your <unk>. Thank you so much.
Sure. So if they still have the first two and then the third one over to Dustin on the D. T. C. So in terms of the original training and what we learn for preview and you know how we've incorporated that in alright. One for example on the pricing side of it again, it's hard to know for sure in terms of what others are paying so we say on average we think we're going to be about.
10% to 40% more expensive to the practice then then the market leader out there and so then it really depends on what.
Much they buy from us because they'll get their pricing from us will depend on how much they buy at any given point in time and that that can sort of vary by 20% based on whether they buy the least amount for the greatest amount of product and we haven't publicly published it. Although obviously all the different providers have have that information so anytime they make or buy from us they'll have to me.
Pick a decision on how much product that they want to purchase based on what pricing tiered that they want to fall into.
One of the things that we have shared for example in the full launch is the learning that we have from pricing, where we said originally practices were pricing at a variety ranges from <unk> 1.2 to two time, if their cost of their current toxin and instead, what we're finding is most are settling into that one and a half times range and so it's a lot of things like that.
Where we talk about some of those learnings on the practice integration side, we're able what we what we think to make the onboarding of the next round of accounts more efficient and more effective based on a learning from that original group.
And so on the pricing tiers in the high volume you know you ask do we think that the practices that were selling into are gonna fall into the the higher price tears I assume you're meaning on our side again that will depend on typically how they buy some frankly will care less about buying the highest here to get the best price and would rather only by.
Product when they need it so that they don't put as much inventory on the shelf others will try to optimize it will buy more and might be comfortable by once a quarter for example, and so again right now on our pricing tiers. We think they are the right tiers for us to have at this stage and again, they don't obligate practices to make any long term commitment to it's very similar to the R. H a side and then.
I'll turn it over to Dustin on the DTC side, well first of all I can say on the consumer side, we've been very happy and pleased with what we're hearing around the social channels and how patients are are like in your treatment with the extra five I've also been in market testing some messaging as it relates to our.
Novel peptide formulation in in those messages that resonate best with that consumers. So we feel good about coming out of those message testing that will likely provide our sales organization as well as our accounts for digital marketing assets more direct to consumer assets that can be augmented both be in the practice, but also outside to provide that awareness.
That providers will want for consumers walking and talking about the extra files. So we'll be looking doing more of that in the back half of the year. The great thing is that for the first time, we now have a message that's different than any other neuromodulator. The marketplace. We feel like there's an opportunity to leverage that uniqueness today and look forward to sharing more of that I'd be giving you the back half of the year.
Next question.
Thank you and your next question comes from the line of David <unk> from reasons Therapeutics. Please go ahead. Your line is open.
Actually I work at Piper Sandler and how not read events.
[laughter] yeah.
Maybe I'm moving up in the world. So a couple a couple of questions. A couple of things I wanted to clarify in case I missed the first can you talk about how many accounts at present.
Above and beyond the preview that you've trained.
I don't know if I miss that or if you're disclosing that and then secondly in terms of the the training over time, how much of it do you think will be a natural vs versus at the practitioner site and how will that <unk> mix of all as the year progresses, and then lastly.
Just an R. H a question taking a step back I mean, the product obviously have a nice for him and I think in Europe shares something around 10% or so so how are you thinking about overall picture for China, and the United States just latest thoughts there would be helpful. Thank you.
Sure.
So in terms of the number of accounts, we have not disclosed how many total accounts. We've now trained between preview in the launch and Martin.
I don't expect that that's something that we will give at least for a little while going forward. We'll talk just like we have with <unk> and with our oboe platform or a total number of accounts and there's two reasons for that one as competitive reasons and number two as you are aware we <unk>.
We're not able to roll the product out to everybody all at once and so we do have some accounts that obviously are anxious to get the product and we've not been able to onboard them, yet and so we won't be disclosing that and we didn't disclose that at this point, but.
If if you look at higher level in terms of our ability to onboard accounts.
He said, there's several steps that you wanted to go through to ultimately result in reporters and Reorders. That's training as step one sampling is step two trialling of the product and bringing patients back in getting for whatever comfort level. The practice laws and then that turns into orders reorders an adoption.
So yeah, we we would expect that the group of accounts that were now onboarding is going to behave more traditionally in that fashion versus what we saw from the preview group, where we saw big bulbous orders out of the gate without having any experience with the product because of the excitement and the patients that they had and so we would expect that to continue to be the predominant way that.
People onboard overtime in terms of the the mix between in person and virtual listen we want to provide flexibility for our customers to engage them in the most appropriate way possible and virtual will be also key.
For training additional folks within an account. So you might have somebody that came here in person to Nashville to get trained but then they have other injectors are they want other people in the practice to get trained and having a virtual option will be important we will continue to prioritize Nashville experienced center because we just think that we can provide a better experience and can.
Provide a more focused dedicated period of time, where we think the onboarding process is likely to be more effective having said that we we recognize that in order to meet the pace of onboarding that we want them to to get access to all the different injectors that we want that did the virtual piece of it makes a lotta sense. So.
[noise] front, and we think it's going to be more waited in person, but you know in fairness properties. We go out over time virtual will probably take on a more predominant role of that and unless it I'm <unk>. My guess is we'll probably have follow up in version twos of trainings too once people have had it for awhile in terms of your tips.
Tips and tricks and things that people have learned out there just like what we've done with with our H, a and I would think that both formats will be effective at allowing us to do that in terms of our H a you're right. When we license then R. H a line of fillers from kiosk, saying, we did say that they had at that time for the 9% a call at 10% market share and the <unk>.
Five E markets, and we sort of set aspirational that that's a good goal for us if you look at where we exited Q4 and where we are in queue want we're kind of right up on that right now and we continue to see that we've got a lot of room to run.
Talked about the prestige segment, we're going after which is 12 to 15000 accounts and we've been able to kind of get there with the call at 5500 accounts that would clearly those groups that are leaning with US first are are probably the ones, where it's gonna be.
More straightforward Toxify will definitely open up some doors for us now that we're out in the market.
So I don't know that it's.
At a point, where we're comfortable giving guidance around peak sure, but we definitely feel like there's still a lot more room to run with the <unk> collection.
Next question please.
Hello next question.
We can hear you mark.
Okay.
Let's wait for operator.
My apologies.
Thank you. Your next question comes from the line of animals.
Thanks for your line is open.
Hi, This is Stacey call again for Annabel Congrats on the great corner and Uhm just a few questions on our end against following up on a previous question Uhm. Realizing that you didn't trained physician in January or February at preview did you train any virtually during that time and how rapidly the training pick.
Up in March as you fully launched and are you now in a position to restart that therapeutically clinical trials such as movie upper limb forward into phase three or are you considering other indications or waiting for approval of C. D. In the initial stages of commercial launch.
Thank you.
Sure. Thanks, Stacey so on the previous side as we've indicated preview with a one quarter program really designed to roll the product out to a limited number with the focus on kind of here's the.
Early thoughts that we have here is the the messaging and letting them get experience. So we talked about the numbers that we onboarded as part of that we.
We did have some virtual training that we had again to help educate and train some additional injectors that were in practices, where they had attended on site, but really now that we're rolling into the launch in March.
The priority there was in person training, but we did onboard some accounts in march of virtually as well and so we'll continue to evaluate the right balance there, but feel again that the priority is going to be an in person.
In terms of clinical trials for other therapeutic indications what we've indicated is.
Even that we wrapped up the phase two program and <unk> and have clarity from the agency in terms of the phase III program, we've indicated that we'd like to get into the market with CD to better understand our ability to drive adoption and penetration in a therapeutic category with the differentiated performance proud for profile of our product.
And how that informs additional therapeutic.
Indications and strategy and again, we will get into that more in our September investor date, as well, but that's the current thinking at this time.
Amazing. Thank you that's very helpful.
Thank you.
Next question and your next question.
Comes from the line of transplant from Morgan Stanley . Please go ahead. Your line is open.
Great. Thanks, so much for taking my questions. Maybe a couple for me I was just wondering if you can comment at all about April trends versus March in terms of what you're seeing at this point and then any early insight on the durability I know you made some comments there mark during your prepared remarks, but just wander.
If what you're seeing is in line with the clinical profile or maybe better <unk>.
Comment at all about that and then Toby just remind us how you're thinking about a revenue guidance is that something we should expect 2024 or is it possible at some point later this year. Thank you.
Thanks, Terrance in terms of April trends as you know, there's always seasonality and the aesthetics business.
Q1, and Q3 being the slower quarters, Q2, Q for being stronger quarters.
At least in the lens that we have in the accounts that were calling on we're not seeing any weakness in terms of procedure trends in volumes and so we continued to be encouraged by the procedure volumes that we're seeing in the accounts that were calling on and and we are now in launch mode and encouraged by the ongoing interest and.
Support for <unk> as we work our way through the launch phase. So it's early but we would expect that will continue to see those aesthetic.
Static trends were Q2 will be a stronger quarter then Q1.
The duration yeah, we're right now the results that we're seeing in the feedback that we're hearing is very consistent with what we expected and what we've seen in our.
<unk> a program, where the medium durations six months and you're saying, we're not far enough out to see how far patients go out, but with median duration you're going to see some they get less than six months in some they get more than six months, which is gonna be the same with other neurotoxins, where you see a little bit of a range around those so thus far we're encouraged.
With what we're hearing out there in terms of duration profile being very consistent and then Toby off road over to you in terms of the revenue guidance.
Yeah, I think we have said at the beginning of the year that we're gonna put a pause on giving revenue guidance at this juncture just given the interplay between R. A J collection and <unk> and you know the the the dynamic of launching a brand new long lasting neuromodulator in the U S market you know I think we've shown on a repaired remarks.
That we would provide a little bit more outlook in our September investor.
Investor Day that we were planning on how his thing and then from there will continue to give guidance.
Consider giving when to give guidance.
Great.
Next question.
Operator next question.
Thank you so much at this time they are a nice set of questions and Nicky I would like to hand back to speak is.
Alright. Thank you everyone for your time, and we look forward to interacting with you in the upcoming months ahead. Thank you very much.
Goodbye. Thank you.
Hello.
It's called <unk>.
[music].