Q3 2023 Revance Therapeutics Inc Earnings Call

Speaker 1: Welcome to the ReVance Therapy Take Third Quarter, 2023 financial results and corporate update conference call. Now this time all participants are in this momentum.

Welcome to the revamped therapeutics third quarter 2023 financial results and corporate update conference call.

Time, all participants are in listen only mode.

Speaker 1: Following management prepared remarks, we will hold a question amount to session.

Management's prepared remarks, we will hold a question and answer session.

Speaker 1: To ask a question at that time, please press star followed by one on your touch phone phone. If anyone has difficulty hearing a conference call, please press star zero for operator assist.

To ask a question at that time. Please press star followed by one on your top 10 client.

If anyone has difficulty hearing the conference call. Please press star zero for operator assistance.

Speaker 1: As a reminder, this call is being recorded today, Wednesday November 8, 2023.

As a reminder, this call is being recorded today Wednesday November eight 2023.

Speaker 1: We're now like to turn the conference call over to Jessica Sarah. Head of investor relations, communications and ESG for events. Please go ahead.

I would now like to turn the conference call over to Chuck Sarah.

Investor Relations Communications and ESG for revenge. Please go ahead.

Speaker 2: Thank you, operator. Joining us on the call today from Revan of Chief Executive Officer Mark Foley, President of the Council and Chief Financial Officer Toby Schoke.

Thank you operator, joining us on the call today from Gregoire, our Chief Executive Officer, Mark Foley President.

<unk> and Chief Financial Officer, Toby Schilke.

Speaker 2: During this conference call, management will make forward-looking statements, including statements related to guidance, positive adjustment aid, Bada, adjusted growth margins, operating leverage, loss of potential, the financial impact of vocal exit, the impact of a pricing strategy on adoption, our competitive market position, our potential value creation, additional therapeutics approval.

This conference call management will make forward looking statements, including statements related to guidance positive adjusted EBITDA adjusted gross margin operating leverage blockbuster potential the financial impact of vocal exit the impact of our pricing strategy on adoption, our competitive market position our potential value creation.

Additional therapeutics approval plans related to the timing of launch and payer coverage and depth of five for several dystonia international expansion relationships with providers, a commercial success injector consumer patient preferences and behavior, the efficacy duration and safety of depth, but the benefits of our product strategy.

Speaker 2: Plans related to the timing, launch, and payer coverage of death for cervical dysdenia, international expansion, relationships with providers are commercial success, injector, consumer and patient preferences and behavior, the efficacy duration and safety of death to find the benefits of our products and strategy, our strategic partnership, shift and strategy, timeline, goals and plan operations.

Our strategic partnership shifts in strategy timeline goals and plant operations.

Speaker 2: Our actual results and the timing of events could defer materially from those anticipated in such full and looking statements as a result of risk and austerity.

Our actual results and the timing of events could differ materially from those anticipated in such forward looking statements as a result of risks and uncertainties.

Speaker 2: Factor second cause results to be different from these statements can be found in our risk factors sections of our recent SEC filings. ReVents undertakes no duty or obligation to update any form looking statements as result of new information, future events, or changes in its expectations.

Factors that could cause results to be different from these statements can be found in our risk factors sections of our recent SEC filings.

<unk> undertakes no duty or obligation to update any forward looking statements as a result of new information future events or changes in its expectations.

Speaker 2: Also on today's call, we will present both GAP and non- GAAP financial measures. The reconciliation of non-GAP to GAAP measures is included in the earnings released to the extent accessible. With that, I will turn the call over to Mark Fully, Chief Executive Officer of Revan. Mark.

Also on today's call, we will present, both GAAP and non-GAAP financial measures.

Conciliation of non-GAAP to GAAP measures is included in our earnings release.

To the extent accessible with that I will turn the call over to Mark Foley Chief Executive Officer of Romance Mark.

Speaker 3: Thank you, Jessica. Good afternoon, everyone. And thank you for joining our third quarter, 2023 Financial Results Conference call.

Thank you Jessica good afternoon, everyone and thank you for joining our third quarter 2023 financial results Conference call.

Speaker 3: Before I cover our results for the quarter, I'm pleased to announce the appointment of Erica Jordan to the position of Chief Commercial Officer, SETICS. In this role, Erica will lead our commercial efforts in the SETICS and will be focused on driving growth and synergy across both Daxifying the RHA collection, developing and executing our loyalty and engagement programs, and helping drive our international expansion strategy.

Before I cover our results for the quarter I'm pleased to announce the appointment of Eric Jordan to the position of Chief commercial officer aesthetics. In this role Erica will lead our commercial efforts in aesthetics, and we'll be focused on driving growth and synergy across both tax define the RH, a collection developing and executing our loyalty and engagement programs.

Helping drive our international expansion strategy.

Speaker 3: Air Force appointment comes at a critical time as we focus our efforts on DaxiPis launch and I look forward to working close to with her across our different strategic initiatives.

This appointment comes at a critical time as we focus our efforts on <unk> launch and I look forward to working closely with her across our different strategic initiatives Eric.

Speaker 3: Erica is an accomplished healthcare executive and her strong leadership skills combined with her extensive commercial experience will be a welcome addition to the executive team.

Erica is an accomplished healthcare executive and a strong leadership skills combined with her extensive commercial experience will be a welcome addition to the executive team.

Now turning to our results.

Speaker 3: Q3 was a pivotal quarter for revance as we saw the positive impact of our new pricing strategy on Daxify's launch, continued to drive growth in the RHA collection and made great progress with our Daxify Preview program for cervical dystonia, which was launched in September following FDA approval.

Q3 was a pivotal quarter for <unk> as we saw the positive impact of our new pricing strategy on <unk> launch continued to drive growth in the <unk> collection and made great progress with our <unk> preview program for cervical dystonia, which was launched in September following FDA approval.

Speaker 3: Also important was our $50 million drawdown of debt from Ethereum capital at a fixed rate of 8.5%, which further bolstered our cash position to $300 million as of the end of Q3.

Also important was our $50 million drawdown of debt from a theory of capital at a fixed rate of eight 5%, which further bolstered our cash position to $300 million as of the end of Q3.

Speaker 3: Product revenue for the third quarter more than doubled to $54.1 million from the same period last year primarily due to the launch of Daxify and continued growth of the RHA collection.

Product revenue for the third quarter more than doubled to $54 $1 million from the same period last year, primarily due to the launch of <unk> and continued growth of the RJ collection.

Speaker 3: As outlined at a recent investor day, we believe our progress across aesthetics and therapeutics focus on capital allocation and path to positive adjusted evadone 2025 all to mission us for long-term value creation for our stakeholders.

As outlined at our recent Investor Day, we believe our progress across the Fedex and therapeutics focus on capital allocation and path to positive adjusted EBITDA in 2025, all position us for long term value creation for our stakeholders.

Let's begin with the aesthetics.

Speaker 3: We delivered $22 million in key three DAX 5 sales and $71 million in total DAX 5 sales during the first year following FDA approval surpassing the total first year sales of all Botox cosmetic competitors combined. This is a tremendous accomplishment, particularly considering that DAX 5 has only been on the market for two-fold quarters and was launched under a measured strategy which initially focused on our existing RHA account.

We delivered $22 million in Q3, <unk> sales and $71 million in total <unk> sales during the first year following FDA approval, surpassing the total first year sales of all botox cosmetic competitors combined.

This is a tremendous tremendous accomplishment, particularly considering that <unk> has only been on the market for two full quarters and was launched under a measured strategy, which initially focused on our existing <unk> accounts.

Speaker 3: Our early progress underscores the innovation and differentiated performance profile of Daxify and the market's strong interest in a novel long-acting neuromodulator.

Our early progress underscores the innovation and differentiated performance profile of <unk> and the market is strong interest in a novel long acting neuromodulator.

Speaker 3: We knew that the early stages of launch would be an important learning opportunity and as such, designed a preview program to leverage real world clinical insights to inform our market positioning and enhance our launch efforts. Through preview, customer outreach and engagement and recent independent survey results from 225 injectors, we gained several key validations in learning.

We knew that the early stages of launch would be an important learning opportunity and as such designed to preview program to leverage real world clinical insights to inform our market positioning and enhance our launch efforts through a preview customer outreach and engagement and recent independent survey results from 225 injectors.

We gained several key validation and learnings.

Speaker 3: First, Dax-by's differentiated performance profile is clear, including its fast onset, long duration, and the appearance of improved skin quality. In fact, of the attribute surveyed, these were the top three reasons injectors cited for switching to Dax-by from their first choice short acting talks.

<unk> backed by differentiated performance profile is clear, including its fast onset long duration and the appearance of improved skin quality in fact of the attributes surveyed these were the top three reasons injector cited for switching to <unk> from their first choice short acting toxins.

Speaker 3: Second, injectors are using Daxified broadly across the face with high satisfaction rates. Based on the independent survey, more than 80% of injectors and patients were satisfied or very satisfied with their aesthetic results from Daxified.

Injectors are using jakafi broadly across the base with high satisfaction rates base.

Based on the independent survey more than 80% of injectors and patients were satisfied or very satisfied with their aesthetic results from docs defy.

Speaker 3: And lastly, based on provider feedback, there is a significant opportunity to achieve broader product adoption by reducing back-to-fies price premium.

And lastly, based on provider feedback there is a significant opportunity to achieve broader product adoption by reducing <unk> price premium.

Speaker 3: As we've learned, there is a strong linkage between price and product expectations. Dactified higher acquisition cost and accordingly higher price to the consumer has led to elevated consumer expectations, price sensitivity, and a more involved switch discussion.

As we have learned there is a strong linkage between price and product expectations.

Sacrifice higher acquisition costs, and accordingly, higher price to the consumer has led to elevated consumer expectations price sensitivity and a more involved switch discussion and.

Speaker 3: and serving our customers, we also heard that they believe that the supply is a better product, but that at a premium price challenges to deeper adoption exists.

And serving our customers. We also heard that they believe <unk> is a better product, but that are the debt at a premium price challenges to deeper adoption exist.

Speaker 3: However, many practitioners also indicated that if Daxified's price was more competitive with other toxins, they would be able to convert a larger percentage of their customers.

However, many practitioners also indicated that if the exercise price that's more competitive with other toxins they would be able to convert a larger percentage of their customers.

Speaker 3: Based on the consistency of this feedback, we made a strategic decision to adjust taxifies price.

Based on the consistency of this feedback we made the strategic decision to adjust <unk> price now.

Speaker 3: Now it's a different shade performance profile, attractive price point, and strong economic opportunity for the provider. We believe the product is positioned to provide meaningful value to both injectors and consumers.

Now with sacrifice differentiated performance profile attractive price point and strong economic opportunity for the provider. We believe the product is positioned to provide meaningful value to both injectors and consumers.

Speaker 3: Further, long-term, we continue to expect to realize an attractive US-dactify adjusted gross margin rate of what we're 80% as our business scales and as our supply chain matures.

Further long term, we continue to expect to realize an attractive use doctor by adjusted gross margin rate of over 80% as our business scales and as our supply chain matures.

Speaker 3: Since the rollout of our new pricing strategy on September 1st, the team has been focused on re-engaging with existing accounts in order to help them realize the full value of spend back in?ck drought 2015 performance at the Exit

Since the rollout of our new pricing strategy on September <unk>. The team has been focused on re engaging with existing accounts in order to help them realize the full value of <unk> and gain more experience with the product.

Speaker 3: So far, we've been encouraged by the feedback we've received from our customers on the price change and with the positive trends in purchase volumes and account reorders. Notably, the number of back to five-hours sold in Q3 increased by 10% from the prior quarter with Q3 revenue of $22 million offset by a lower average selling price.

So far we've been encouraged by the feedback we've received from our customers on the price change and with the positive trends in purchase volumes and account reorders, notably the third the number of <unk> sold in Q3 increased by 10% from the prior quarter with Q3 revenue of $22 million offset by a lower <unk>.

Average selling price.

Speaker 3: Revenue from reordering accounts and vials sold to reordering accounts were also up 25% and 43% respectively over the prior order with the majority of the increase coming from September .

Revenue from reordering accounts and vials sold to reordering accounts were also up 25% and 43% respectively over the prior quarter with the majority of the increase coming from September <unk>.

Speaker 3: Further, revenue from reordering accounts represented approximately two-thirds of DAXify revenue for the third quarter, the majority of which came from September .

Further revenue from reordering accounts represented approximately two thirds of <unk> revenue for the third quarter. The majority of which came from September.

Speaker 3: We are still in the early stages of implementing our new pricing strategy, but are very encouraged by the momentum we are seeing. At the core, we believe that our peptide formulated toxin provides meaningful differentiation that both cups and earth injectors will come to appreciate and value with more experience.

We are still in the early stages of implementing our new pricing strategy, but are very encouraged by the momentum we are seeing.

At the core we believe that our peptide formulated toxin provides meaningful differentiation that both customers injectors will come to appreciate in value with more experience.

Speaker 3: Currently over 2,500 accounts have ordered toxify, leaving us with significant headroom for growth.

Currently over 2500 accounts have ordered <unk>, leaving us with significant headroom for growth.

Speaker 3: Turning to the RHA collection, Q3 revenues totaled $32.1 million of 23% year over year, despite softness in the broader filler market, where market research indicated that filler patient spend was down in the low teens year over year due to inflationary pressures on consumer spending. Our strong rise.

Turning to the RSA collection Q3 revenues totaled $32 1 million up 23% year over year. Despite the softness in the broader filler market, where market research indicated that filler patient spend was down in the low teens year over year due to inflationary pressures on consumer spending.

Our strong relative to performance.

Speaker 3: continues to be supported by new account growth, the introduction of Dactify, and a robust and deep engagement with customer.

<unk> to be supported by new account growth the introduction of Jakafi, and our robust and deep engagement with customers and.

Speaker 3: In Q3, we hosted several live RHA training sessions at our National Experience Center with a focus on injection technique and Salesforce training.

In Q3, we hosted several live our HLA training sessions at our Nashville experience center with a focus on injection technique and Salesforce training.

Speaker 3: Collectively, our strong efforts have allowed the RHA collection to gain the most market share in the HA filler market through Q3 of 2023, while most other brands have remained flat or have declined.

Collectively our strong efforts have allowed the rek collection to gain the most market share and the hei filler market through Q3 of 2023, while most other brands have remained flat perhaps declined.

Speaker 3: Overall, we're very pleased with our innovative and leading product portfolio opportunity for growth and position in the market where we ended the quarter with over 6,500 accounts.

Overall, we're very pleased with our innovative and leading product portfolio opportunity for growth and position in the market, where we ended the quarter with over 6500 accounts.

Speaker 3: Moving to our services offerings, as we covered it in yesterday, we made the strategic decision to exit our open payments business in order to prioritize our capital allocation.

Moving to our services offerings as we covered at Investor Day, We've made the strategic decision to exit our opal payments business in order to prioritize our capital allocation.

Speaker 3: In preparing for OPAL's wind-down by the end of Q1 2024, we have ceased R&D and reduced SG&A-related spend. As a result, we expect to free up approximately $20 million per year, which provides us with the flexibility for reinvestment or OPEX reduction.

In preparing for <unk> wind down by the end of Q1 2024, we have ceased R&D and reduced SG&A related spend as a result, we expect to free up approximately $20 million per year, which provides us with the flexibility for reinvestment or opex reduction.

Speaker 3: In summary, we are encouraged by the progress we've made and the steps we've taken to maximize our opportunity in aesthetics across our portfolio. For Daxify, we've listened to our customers and made the necessary changes to our pricing strategy to position the product for meaningful share gain over time.

In summary, we are encouraged by the progress we've made and the steps we've taken to maximize our opportunity in aesthetics across our portfolio.

<unk>, we've listened to our customers and made the necessary changes to our pricing strategy to position the product for meaningful share gains over time.

Speaker 3: For the RHA collection, we continue to drive partnership and engagement with providers, gaining share in a crowded filler market. And while we've made the decision to exit the OPL payments business, we remain committed to growing our loyalty and partnership capabilities in support of realizing Revance's blockbuster potential in the U.S. aesthetics market.

For the RJ collection, we continue to drive partnership and engagement with providers gaining share in a crowded filler market.

And while we've made the decision to exit the <unk> payments business, we remain committed to growing our loyalty and partnership capabilities in support of realizing <unk> blockbuster potential in the U S <unk> market.

Speaker 3: For the balance of the year, we remain confident in our ability to continue to drive growth as we implement our new DACCFI pricing program, deliver deeper and broader adoption of the RHA collection, and ensure robust engagement with our growing customer base. I'll now turn the call over to Dustin for an update on our therapeutics business and strategic partnerships. Dustin.

For the balance of the year, we remain confident in our ability to continue to drive growth as we implement our new <unk> pricing program deliver deeper and broader adoption of the IHA collection and ensure robust engagement with our growing customer base I'll now turn the call over to Dustin for an update on our therapeutics business and strategic partnerships Dustin.

Speaker 4: Thank you, Mark. We're pleased to have received the highly anticipated FDA approval of DAXA V for cervical dystonia in Q3, marking our first approval in the therapeutics market and the official start of our therapeutics franchise. With approval, we have the unique potential to disrupt a well-established $2.5 billion US therapeutic toxin market and to address a large patient population with significant unmet need.

Thank you Mark we're pleased to have received the highly anticipated FDA approval of Jakafi for cervical dystonia in Q3.

<unk>, our first approval in the therapeutics market and the official start of our therapeutics franchise.

With approval, we have the unique potential to disrupt a well established $2 5 billion U S therapeutic toxin market and to address a large patient population with significant unmet needs <unk>.

Speaker 4: LaVance has an opportunity to address the unmet need of the three primary stakeholders in the CD market, patients, providers, and payers.

<unk> has an opportunity to address that.

Unmet need in the three primary stakeholders in the CD market patients providers and payers.

Speaker 4: Most patients experience symptom reemergence as early as eight to ten weeks with conventional norm modulators, but cannot be treated until 12 weeks due to label and reimbursement restrictions.

Most patients experienced symptom reemergence as early as eight to 10 weeks with conventional neuromodulators, but cannot be treated until 12 week due to label and reimbursement restrictions.

Speaker 4: Providers are also known to be conservative in treating this complex condition as there are potential side effects associated with botulinum toxin treatments. For these reasons, physicians cautiously optimize toxin dosing over two to four cycles to minimize side effects.

<unk> are also known to be conservative in treating this complex condition as there are potential side effects associated with botulinum toxin treatments for these reasons physicians cautiously optimized torsion dosing over two to four cycles to minimize side effects.

Speaker 4: From payers perspective, botanian toxins are the 12th most costly medical benefit drug category and managing spend is top of mind. Our ongoing engagement with payers indicates that dexifies differentiated clinical profile and price point is especially compelling.

Some payers perspective botulinum toxins are the 12, most costly medical benefit drug category and managing spend is top of mind, our ongoing engagement with payers indicate that <unk> differentiated clinical profile and price point is especially compelling given these market dynamics, we believe that <unk> strong efficacy long duration.

Speaker 4: Given these market dynamics, we believe that the deacquified strong efficacy, long duration, favorable safety profile, particularly in key areas such as dysphagia and muscle weakness, and attractive pricing all work together to offer a strong value proposition for stakeholders.

Favorable safety profile, particularly in key areas, such as Dysphasia and muscle weakness and attractive pricing all work together to offer a strong value proposition for our stakeholders.

Speaker 4: For condition that has no cure, providers can safely enhance treatment outcomes for their patients with a novel formulation.

For a condition that has no cure providers can safely enhanced treatment outcomes for their patients with a novel formulation.

Speaker 4: Payers gain the opportunity for category cost management with a treatment that can result in lower drug costs, fewer treatments, and lower procedural costs compared to other treatment options.

Payers gain the opportunity for category cost management with a treatment that can result in lower drug costs.

Fewer treatments and lower procedural costs compared to other treatment options and most importantly patients can benefit from more days of symptom relief and potentially fewer treatments per year at a lower out of pocket costs.

Speaker 4: And most importantly, patients can benefit for more days of symptom relief and potentially fewer treatments per year at a lower out of pocket cost.

Speaker 4: For all these reasons, we are excited to see this product into the Therapeutics market, which is not seen in new neuromodulator in over 12 years.

For all these reasons, we are excited to see this product into the therapeutics market, which has not seen a new neuromodulator in over 12 years.

Speaker 4: We are pleased with our approved label, which will be key to supporting optimal treatment till I enter patients.

We are pleased with our approved label, which will be key to supporting optimal treatment plans for patients as a reminder, our Aspen clinical program study two dose groups. The 125 unit and 250 unit doses, which demonstrated a median duration of 24 weeks and $20 three weeks respectively.

Speaker 4: As a reminder, our ASPEN clinical program studied two dose groups, the 125 unit and 250 unit doses, which demonstrated a median duration of 24 weeks and 20.3 weeks respectively. In treating cervical dyspaniate, it's important to note that physicians often titrate doses to optimize outcomes for patients.

Treating cervical dystonia, it's important to note that physicians, often titrate doses to optimize outcomes for patients. That's why we're pleased to see that our proved label contains data from our Aspen Open label study, which includes individualized dose adjustments for patients with up to four treatment cycles over a 52 week period at doses higher than initial.

Speaker 4: That's our please to see that our approved label contains data from our Aspen Open Label Study, which includes individualized dose adjustments for patients with up to four treatment cycles over a 52 week period at doses higher than initial phase three study.

Phase III study.

Speaker 4: With the inclusion of this data, we believe our label gives physicians flexibility to optimize individualized treatment plans for their patients.

With the inclusion of this data we believe our label gives physicians flexibility to optimize individualized treatment plans for their patients.

Speaker 4: Following FDA approval, we launched our preview program, which will include 30 practices with the objective to treat and observe patients through two or three injection cycles in order to understand optimal dosing and treatment intervals and to optimize the integration of the product into their treatment routine.

Following FDA approval, we launched our preview program, which will include 30 practices with the objective to treat an observed patients through two years or three injection cycles in order to understand optimal dosing and treatment intervals and to optimize the integration of the product into their treatment routine.

Speaker 4: We've made great progress with the program so far. Approximately 20 practices have treated more than 150 patients. And interest has been strong on the product's potential. So far we've seen injectors switch patient to daxify from all approved neuro modulators allowing us to collect a wide range of patient and provider experience we are looking for.

We've made great progress of the program. So far approximately 20 practices have treated more than 150 patients and interest has been strong on the product's potential.

So far we've seen injector switch patients to <unk> from all approved neuromodulators, allowing us to collect a wide range of patient and provider experience. We are looking for.

Speaker 4: Initial doses have ranged from 100 to 500 units with a majority at 200 units or above. Injectors continue to share important real-world clinical insights on achieving optimal treatment plans for CD patients with DACS-5. So help inform our training and education and commercial efforts at full long.

Initial doses have ranged from 100 to 500 units with the majority at 200 units or above injectors continue to share important real world clinical insights on achieving optimal treatment plans for <unk> patients with <unk>, which will help inform our training and education and commercial efforts at full launch.

Speaker 4: As we continue to make great progress at Preview, the team is also working in parallel to engaging robust discussions with the top 50 commercial payers about the clinical and economic benefits of DACSIFI. We have already secured coverage and reimbursement for approximately 70 million commercial lives, which includes the largest US payer, along with undifferentiated coverage from a top 10 payer with no dosing limitation, giving us confidence and DACSIFI's potential to disrupt the category.

As we continue to make great progress with preview. The team is also working in parallel to engage and robust discussions with the top 50 commercial payors about the clinical and economic benefits of <unk>, we have already secured coverage and reimbursement for approximately 70 million commercial lives, which includes the largest U S payer along with undifferentiated cover.

<unk> from a top 10 payer with no dosing limitation, giving us confidence in <unk> potential to disrupt the category expanded discussions have also taken place with the Medicare Max and Federal VA and department of defense channels as we seek to maximize market access for <unk>, we're making great progress on securing coverage.

Speaker 4: Spend the discussions of all the taking place with the Medicare, Max, and Federal VA in Department of Defense channels as we seek to maximize market access for the act of five. We are making great progress in securing coverage.

Speaker 4: across all payer channels and our permanent J-code will be granted by the time we launch mid-year 2024.

Across all payer channels and our permanent J code will be granted by the time, we launch mid year 2024.

Speaker 4: As we move into Q4, we've begun solidifying our therapeutic commercial infrastructure. We have planned to have the first wave of hiring completed by the end of the year and the balance during the first half of 2024. The infrastructure buildout includes our field reimbursement, medical affairs, and sales leadership teams.

As we move into Q4, we've begun solidifying our therapeutics commercial infrastructure, we have plan to have our first wave of hiring completed by the end of the year and the balance during the first half of 2020 for the infrastructure Buildout includes our field reimbursement Medical affairs and sales leadership teams in total we plan to start with about 40 people within our therapeutic.

Speaker 4: In total, we plan to start with about 40 people within our therapeutics organization. We're ready to launch stacks of five for cervical dystonia in mid-year 2024.

Organization will be ready to launch tax of $5 <unk> cervical dystonia and mid year 2024.

Speaker 4: Finally, we are pleased to see continued progress in our strategic partnerships. In July , folks in Pharma received a BLA acceptance for DACSify for cervical dystonia, which followed the BLA acceptance of DACSify for the motor line in April .

Finally, we are pleased to see continued progress in our strategic partnerships and July Fosun pharma received their BLA acceptance for <unk> five for cervical dystonia, which followed the BLA acceptance of <unk> for the Boto lives in April close and anticipate approvals both indications in China in 2024 with that I'll turn the.

Speaker 4: Both the then-sicipated approvals, both indications in China in 2024. With that, I'll turn the call over to Toby to cover our third quarter financial.

All over to Toby to cover our third quarter financials.

Speaker 5: Thank you, Dustin. Total revenue for the third quarter 2023 was $56.8 million, representing a 95.7% increase from the same period last year, driven by the launch of Daxify and increased sales of the RHA collection. Revenue for the third quarter included $54.1 million of product revenue and $2.7 million of service revenue.

Thank you Dustin total revenue for the third quarter 2023 was $56 8 million Rep.

Representing a 95, 7% increase from the same period last year, driven by the launch of <unk> and increased sales of the <unk> collection.

Revenue for the third quarter included $54 $1 million of product revenue and $2 $7 million of service revenue.

Speaker 5: Turning to OPEX, in connection with our planned exit of the Opal Payments business by the end of Q1 2024, we recorded restructuring charges of $95.2 million as of September 30th, 2023. And expect to record an additional $3 million in charges through the three months ending March 31st, 2024.

Turning to Opex in connection with our planned exit of the Opel payments business by the end of Q1 2024, we recorded restructuring charges of $95 2 million.

As of September 32023, and expect to record an additional $3 million in charges through the three months ending March 31 2024.

Speaker 5: GAP-OPEX for the third quarter was $196.1 million compared to $106.5 million for the same period in 2022. Excluding costs of revenue, depreciation, amortization, stock-based compensation, restructuring and impairment charges, non-GAP operating expenses were $69 million for the third quarter compared to $72.3 million for the same period last year.

GAAP Opex for the third quarter was $196 1 million compared to $106 5 million for the same period in 2022 <unk>.

Excluding cost of revenue depreciation amortization stock based compensation restructuring and impairment charges non-GAAP operating expenses were $69 million for the third quarter compared to $72 $3 million for the same period last year.

Speaker 5: For the nine months ended September 30th, 2023, non-GAP operating expenses were up 15% compared to the same period last year, while total product revenue more than double during the same period. Demonstrating continued operating leverage within our business.

For the nine months ended September 32023, non-GAAP operating expenses were up 15% compared to the same period last year, while total product revenue more than doubled during the same period, demonstrating continued operating leverage within our business.

Speaker 5: As noted at investor day, the restructuring and impairment charges related to the exit of the payments business resulted in our revised 2023 gap operating expense guidance of $545 to $585 million and non-gap operating expense guidance of $315 to $335 million.

As noted at Investor day, the restructuring and impairment charges related to the exit of the payments business resulted in a revised 2023, GAAP operating expense guidance of $545 million to $585 million and non-GAAP operating expense guidance of three.

<unk> hundred $15 million to $335 million.

Speaker 5: Further, we expect our 2023 non-GAP R&D expense guidance to be between $75.85 million.

Further we expect our 2023 non-GAAP R&D expense guidance to be between 75 and $85 million.

Speaker 5: As a reminder, our 2023 non-GAP OPX guidance primarily reflects increased investments in our aesthetics commercial infrastructure.

As a reminder, our 2023 non-GAAP Opex guidance, primarily reflects increased investments in our aesthetics commercial infrastructure.

Speaker 5: We ended Q3 with over $300 million in cash equivalents and short-term investments, which reflects the proceeds from the $50 million in notes issued to Ethereum capital. As Mark mentioned, we are pleased to be executing from a position of financial strength. And with our top line growth and discipline capital allocation, we are focused on delivering positive adjusted EBITDA in 2025.

We ended Q3 with over $300 million in cash cash equivalents and short term investments, which reflects the proceeds from the $50 million in notes issued to a theory capital as Mark mentioned, we are pleased to be executing from a position of financial strength and with our topline growth.

And disciplined capital allocation, we are focused on delivering positive adjusted EBITDA in 2025.

Speaker 5: Also, as outlined at our investor day, we expect to provide product revenue guidance in the first half of 2024.

Also as outlined at our Investor day, we expect to provide product revenue guidance in the first half of 2024.

Speaker 5: Finally, revances shares of common stock outstanding as of October 31st, 2023, were approximately 87.8 million with 95 million fully diluted shares, excluding the impact of convertible debt. And with that, I'll turn.

Finally, <unk> shares of common stock outstanding as of October 31, 2023 were approximately $87 8 million with 95 million fully diluted shares excluding the impact of convertible debt.

And with that I'll turn the call back over to Mark.

Speaker 3: Thank you, Toby. With the launch of Daxifiers or CUSP Priority, we've leveraged customer feedback and learnings from our early launch to remove a key barrier to broad based adoption, thereby unlocking the product's full value proposition and long-term market potential. And the early signs from our efforts have been encouraging.

Thank you Toby with the launch of <unk> is our top priority, we leverage customer feedback and learnings from our early launch to remove a key barrier to broad based adoption, thereby unlocking the product's full value proposition and long term market potential.

And the early signs from our efforts have been encouraging.

Speaker 3: We continue to be focused on executing on our launch while driving growth and synergies across our aesthetics portfolio.

We continue to be focused on executing on our launch while driving growth and synergies across our aesthetics portfolio.

Speaker 3: As we look to the balance of the year and out into 2024, we believe that there's tremendous opportunity for revance. In addition to the launch optimizations that are underway in our aesthetics business, we're also making headway in our first therapeutic opportunity as well as our strategic partnership.

As we look to the balance of the year and out into 2024, we believe that there's tremendous opportunity for <unk>. In addition to the launch optimizations that are underway in our <unk> business. We're also making headway in our first therapeutics opportunity as well as our strategic partnerships together with our disciplined capital allocation and strong financial position.

Speaker 3: Together with our discipline, capital allocation, and strong financial position, we believe we have the fundamentals in place to deliver growth and long-term value for all of our stakeholders.

<unk>, we believe we have the fundamentals in place to deliver growth and long term value for all of our stakeholders.

Speaker 3: With that, I will now open the call up for questions. Operator.

With that I will now open the call up for questions operator.

Speaker 1: Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. If you would like to withdraw your question, please press star followed by two. When preparing to ask your question, please ensure your device is unmuted to load.

Thank you if you would like to ask a question. Please press star followed by one on your telephone keypad. If you would like to withdraw your question. Please press star followed by two one.

When preparing to ask a question. Please ensure your device is on mute.

Speaker 1: Both questions come from Shamest Fernandez with Gooz and Pine Park. This your line is open.

First question comes from Seamus Fernandez with Guggenheim Partners. Your line is open.

Speaker 4: Oh, great. Thanks for the question. So this is up in you guys.

Oh, great. Thanks for the question so.

I was hoping you guys could.

Speaker 4: help frame the fourth quarter for us to some degree. And we're about halfway through the quarter at this point, but we're also about holidays coming in. That being said, this also tends to be the strongest.

To help frame the fourth quarter for us to some degree.

We're about halfway we're halfway through the quarter at this point, but we've also got holidays kind of coming in.

That being said this also tends to be the strongest quarter of the year along with the second quarter. So just trying to get a little bit about color on.

Speaker 4: quarter of the year along with the second quarter. So just trying to get a little bit of a color on, you know, should we think about that 22 million as having been...

Should we think about that 22 million.

As having been sort of operational with the price change for the full quarter basically that you.

Speaker 4: sort of operational with the price change for the full quarter, basically, that you sort of adjusted the price.

Sort of.

Adjusted the price for folks who had already purchased taxi.

Speaker 4: or folks who had already purchased DAXY. And so we're actually seeing a full quarter at the revised price.

And so we're actually seeing a full quarter.

<unk>.

At the revised price.

Speaker 4: in the third quarter and so we can actually anticipate that the price change, which should have a positive impact, will actually result in growth quarter over quarter in the fourth quarter for DAXE specifically. That's my first question.

In the third quarter and so we can actually anticipate that the price change.

Which should have a positive impact will actually result in growth quarter over quarter.

In the fourth quarter for Dachsie specifically.

That's my first question.

Speaker 3: Yeah, so thanks, James. So yeah, I mean, listen, we expect Q4 to be a seasonally up quarter as it has historically been, and we would expect to continue to see growth in our products, including Daxify, Q3 to Q4.

Yes, so thanks, Seamus so yes, I mean listen we expect Q4 to be seasonally up quarter has historically been and we would continue we would expect to continue to see growth.

In our in our products, including <unk> Q3 to Q4 as we previously said we're implementing these changes and in implementing these pricing changes were circling back up with those accounts that have been trained in some cases in a product on the shelf and that we sort of need to reengage sort of under the new strategy and we think that's the right formula to Cree.

Speaker 3: As we previously said, we're implementing these changes in and implementing these pricing changes. We're circling back up with those accounts that have been trained.

Speaker 3: in some cases that have product on the shelf and that we sort of need to re-engage sort of under the new strategy. We think that's the right.

Speaker 3: formula to create long-term stickiness and a good foundation to build on. We're encouraged by what we're seeing. We obviously laid out some of the metrics that we're looking at with regards to, you know, the increase in the number of miles that we saw on a quarter of a quarter basis.

<unk> long term stickiness and a good foundation to build on we're encouraged by what we're seeing we obviously laid out some of the metrics that we're looking at with regards to the increase in the number of miles that we saw on a quarter over quarter basis.

Speaker 3: The percentage of revenue that we've made up of reordering accounts in the quarter. And we continue to see that carrying through into Q4. So we would expect that you know, Q4 is going to be up Q3 over Q4, particularly for Daxify. We would expect that we'll see, you know, the seasonality in this business where Q4 is a stronger quarter. And we're going to continue our focus. We're engaging those accounts that we have a relationship with that have already been trained and continue to work our way through that as we build what we believe is the right foundation going forward.

Percentage of revenue that was made up of reordering accounts in the quarter and we continue to see that carrying through into Q4. So we would expect that Q4 is going to be up Q3 over Q4, particularly for <unk>. We would expect that we'll see the seasonality in this business, where Q4 is a stronger quarter and we're going to continue our focus.

We're engaging those accounts that we have a relationship with that have already been trained and continue to work our way through that as we build what we believe is the right foundation going forward.

Speaker 4: Great. Can you guys, can you provide us a little bit of color just in terms of where you have the sense that your market share is at this point in the overall market, Abbey makes statements from their conference call that they're not seeing much impact, but it's a little bit hard to, you know, triangulate some of the comments from competitors. So just be helpful to understand what you guys are seeing from a market share perspective and taxing markets.

Great can you guys can you provide us a little bit of color just in terms of where you have the sense that your market share is at this point in the overall market Abbvie makes statements on their conference call that theyre not seeing much impact but.

It's a little bit hard to.

Triangulate some of the comments from competitors. So just be helpful to understand what you guys are seeing from a market share perspective and toxin market.

Yeah.

Speaker 3: Yeah, so on the talks inside of it, again, we see data sources that we've got, proprietary data sorts that represent a much smaller sample size. You know, that data would show that we're kind of in the...

Yeah. So on the toxin side of it again, we see data sources that we get proprietary data towards that represent a much smaller sample size.

That data would show that we're kind of in the 2% to 3% range, but again, it's going to represent a smaller portion of that obviously you got to look at sort of how you annualize that and as we said, we're actually really pleased with how well we performed our first year of launch $71 million in the first.

Speaker 3: 2 to 3% range, but again, it's going to represent a smaller portion of that. Obviously, you got to look at sort of how you analyze that. And as we said, we're actually really pleased with how well we've performed our first year of launch, definitely $1 million in the first full 12 months. Only two of those was really full quarters of launch, which...

Full 12 months only two of those was really full quarters of launch, which outpaced all other botox competitor launches the first year combined so.

Speaker 3: outpaced all other Botox competitor launches the first year combined.

Speaker 3: So, I think it's less about where we are today and more about where we are going, but we did see that we did increase our share as we've moved into Q3 based on the number of files that were placed.

It's less about where we are today and more about where we're going but we did see that we did increase our share.

As we've moved into Q3 based on the number of vials that replacing.

Speaker 4: for any of you just one final question. As we think about the RHA filler franchise, we also kind of captured in our own surveys similar dynamics to what you were commenting on in your prepared remarks.

Great and then maybe just one final question.

As we think about the Orange a filler franchise, we also kind of captured in our own surveys similar dynamics to what you were commenting on.

In your prepared remarks, just trying to get a better understanding of.

Speaker 4: Trying to get a better understanding of the sort of filler dynamics. You're maintaining your actual sales, clearly growing share with the RHA fillers. Again, just how should we think about fourth quarter? Should we think about that as strongly sequentially up or kind of tempered by the economic impacts that we're seeing already?

The sort of similar dynamics.

You're maintaining your <unk>.

Actual sales clearly growing share.

With the <unk> fillers.

Again, just how should we think about fourth quarter should we think about that as strongly sequentially up.

Or kind of tempered by the economic impacts that we're seeing already.

Speaker 3: I mean, it's hard to know for sure. Shameless, I mean, we are hearing as we said, it's interesting, you know, toxins are proving to be pretty resilient as we've seen in prior economic downturns, fillers are a little bit more impacted because they're a little bit bigger ticket items and a little bit more on the considered side. Again, we would see, we would expect to see Q4 as a seasonally up quarter. Hard to know for sure exactly what impact the consumer will have, but, you know, as we pointed out before, we had healthy growth year over year, 23%.

Yes, I mean, it's hard to know for sure Seamus I mean, we are hearing as we said it's interesting toxins are proven to be pretty resilient as we've seen in prior economic downturns fillers are a little bit more impacted because they're a little bit bigger ticket items and a little bit more on the considered side again, we would see we would expect to see Q4 is a seasonally.

<unk> up quarter hard to know for sure exactly what impact the consumer will have but as we pointed out before we had healthy growth year over year, 23%.

Speaker 3: A lot of the competitors in this space saw little to no growth or actually decline. And so we had the leading market shared growth.

Lot of the competitors in this space.

So little to no growth, we're actually declined and so we had the leading market share growth on a year over year basis. So importantly, we feel like we're still early we estimate we'll probably in the 90%, 90%, 10% market penetration and so given that we're still only in roughly 6500 accounts, we have plenty of room and opportunity for growth.

Speaker 3: on a year over your basis. So importantly, we feel like we're still early. We have to make probably in the 90% market penetration. And so given that we're still only in roughly 6,500 accounts, we have plenty of room and opportunity for growth.

Speaker 3: And we continue to see that the RHA collection is being broadly appreciated for the value that it delivers. So we do think that we'll continue to see some consumer impact with the current economic environment, but again, we would expect to see Q4 to be up based on a seasonal basis. And we will continue to see that the RHA collection is being broadly appreciated for the value that it delivers.

And we continue to see that the <unk> collection is being broadly appreciated for the value that it delivers so we.

We do think that we'll continue to see.

Some consumer impact with the current economic.

Environment, but again, we would expect to see Q4 to be up.

Based on a seasonal basis.

Great. Thanks, guys I appreciate it.

Thank you.

Speaker 1: in our turn to Chris Supertunning with Goldman Sachs. Your line is open.

We now turn to Chris <unk> with Goldman Sachs. Your line is open.

Speaker 6: Hi, this is Roger on for Chris. Two quick questions from our end. One on the therapeutic side, can you comment on whether patients in the real world setting are also seeing longer lasting duration coupled with lower rates of side effects, such as the stage and muscle weakness?

Hi, This is Roger on for Chris too.

Two quick questions from our end one on the therapeutic side can you comment on whether patients in the real world setting are also seeing longer lasting duration, coupled with lower rates of side effects, such as the stage and muscle weakness.

Speaker 6: And then for our second question, I was wondering if you'd comment a little bit about your go-to market strategy in light of the pricing update. So I think recall, like previously you mentioned, that you will target the base of accounts you've accumulated through the RHA filler line. This quarter, you've grown by another 500 accounts. Is this level of growth expected to be more measured going forward? Or how do you think about your go-to market strategy and accelerating that level of growth?

And then for a second question I was wondering if you could comment a little bit about your go to market strategy in light of the pricing update. So I think recall previously you've mentioned that you will target the base of accounts you've accumulated through the IHA filler line. This quarter you have grown by another 500 accounts.

This level of growth expected to be more measured going forward or how do you think about your go to market strategy and accelerating that level of growth. Thanks.

Yes.

Speaker 4: Great Roger, thanks for the question. I'll have Dustin hit the first one on the derivative side. Yeah, Stephanie, it's really early Roger for us to say on the duration side as you know, we're not through that 12 to 16 weeks kind of time frame or 12 to 20 week time frame on the therapeutic side. So we'll be able to get more to information as we got to get through preview, but so far the excitement's been good. There has been semantic build all stuff around on sort of action, which we've seen that in the aesthetic side as well too. On the kind of safety side, we haven't seen anything that's concerning, but I can't say that that's comparative at this point. The majority of the patients interestingly that have been put on the product have switched because they had breakthrough, paying with or breakthrough symptoms with their other neuromodulators and so it'll be an unique opportunity for us to...

Great Roger Thanks for the question I'll have Dustin hit the first one on the therapeutic side.

It's really early Roger for us to say on the duration side as you know we're not through that 12 to 16 weeks kind of timeframe of 12 to 20 week timeframe on the therapeutic side. So we.

We will be able to get more information as we kind of get through preview, but so far the excitement has been good there has been some anecdotal stuff around onset of action, which we've seen that in the aesthetic side as well too.

And the kind of the safety side, we havent seen anything thats concerning but I cant say that thats competitive at this point the majority of the patients interestingly that have been put on the product have switched because they had breakthrough pain with a breakthrough symptoms with our other neuromodulators and so it'll be a unique opportunity for us to understand how <unk> helps them in there.

Speaker 4: to understand how to justify health sim and in those cases.

Speaker 3: Turn it back to Mark. Yeah, and on the go to market strategy with the pricing change. I mean, it's more the same. We're focused on those accounts that have already been trained on Daxify, have some experience.

Casey I'll turn it back to Mark.

The go to market strategy with the pricing change I mean, it's more of the same we're focused on those accounts that are obviously already been trained on <unk> had some experience.

Speaker 3: because they have an appreciation for what it takes to embrace the product, bring it into the practice.

Because they have an appreciation for what it takes to embrace the product to bring it into the practice.

Speaker 3: But now with this new pricing strategy, they can get a lot more experience with it.

But now with this new pricing strategy, they can get a lot more experience with it without having.

Speaker 3: without having price be a barrier to adoption. And so we'll continue to focus on those accounts that have already been trained.

<unk> be a barrier to adoption and so we will continue to focus on those accounts that have already been trained.

Speaker 3: work with them to pull through product and then there'll be a combination of continuing to go out to those RHA customers and opening some new accounts given the onboarding process where we want them to get trained, sampled, experience with the product.

Work with them to pull through product and then there'll be there'll be a combination of continuing to go out to those already J customers in opening some new accounts given the onboarding process, where we want them to get train sampled experienced with the product it will actually be a little bit more measured and again. This is all about laying the right foundation for future growth over time.

Speaker 3: It will actually be a little bit more measured. And again, this is all about laying the right foundation for future growth over time. Similar to what we've done with the RHA filler line. Here.

Similar to what we've done with the <unk> filler line.

Okay, great. Thanks, so much.

Great. Thank you our next.

Speaker 1: Our next question comes from Belagio Prasad with Barclays. Your line is open.

Our next question comes from Valencia Prasad with Barclays. Your line is open.

Speaker 7: Hi everyone, this is Michaela on Focologi. Thanks for taking our questions. Just one quick one, once we follow up, could you provide any specific color around the feedback to hearing around the two pricing strategies that were revealed in September ? Just really looking to understand what people are like some of the comments are saying. Thanks.

Hi, everyone. This is in the queue lawn fertilizer. Thanks for taking our questions. Just one quick one one quick follow up could you provide any specific color around the feedback you're hearing about around this new pricing strategy that was revealed in September just really looking to understand what people are like some of the comments there. Thanks.

Speaker 3: Sure, I mean, I think we're getting a lot of, you know, head nodding and support for it. It was actually just recently at the ASPS meeting, which is a big dermatology conference in Chicago and, you know, had an opportunity to engage with the number.

Sure I mean, I think we're getting a lot of head nodding in support for it was actually just recently at the ASD.

<unk> meeting, which is a big dermatology conference in Chicago and had an opportunity to engage with the number.

Speaker 3: you know, different germs, some that are customers and some that are not customers and walked them through the logic and the feedback and everything that we've had and everybody completely agrees. And I think when we continue our university, people are saying, listen, I believe it's a better product. I really like the, you know, the fast on set skin quality and duration is definitely something that the patients are looking for. But some of them that had experienced were just saying they struggled a little bit with how to position it with patients, how much of a premium to charge and acknowledge that higher the premium.

Current terms some that are customers and some that are not customers and walk them through the logic and the feedback and everything that we've had and everybody completely agreed and I think what we continue your University Cooper St listen I believe it's a better product I really like the the.

Fast onset skin quality and duration is definitely something that the patients are looking for but some of them that had experienced we're just saying they struggled a little bit with how to position it with patients how much of a premium to charge and acknowledged that the higher the premium on the price the higher the expectation.

Speaker 3: the higher the expectation on the patient side to the point where it could be disconnected from the data that we've seen in the clinical trial and what's been replicated out there in the market. And so...

On the patient side to the point, where it can be disconnected from the data that we've seen in the clinical trial and what's been replicated out there in the market and so.

Speaker 3: You know, I think people are saying, this is the right strategy. It's gonna allow me to engage with the product to really understand how best to use it without having to, you know, take an economic hit and then going forward, I can then figure out where it fits in my practice, whether or not to take a premium, many of them acknowledge that their, you know, patients come in two times a year or less and so given the maximum value is something that they're also focused on.

People are saying this is the right strategy, it's going to allow me to engage with the product to really understand how best to use it without having to.

Taken economic hit and then going forward I can then figure out where it fits in my practice, whether or not to take a premium many of them acknowledged that their patients come in two times, a year or less and so given the maximum value is something that they are also focused on.

Speaker 1: Thanks for coming out on today. We now turn to David Anceland with Piper Sandler. Your line is open.

Thanks, Mikael <unk>.

We now turn to think the Thompson Lin with Piper Sandler Your line is open.

Speaker 8: Hey, thanks. So just got a couple. So first, regarding the new pricing strategy, can you talk to

Hey, Thanks, So just got a couple so first.

Regarding the new pricing strategy can you talk to.

Speaker 8: what that's done for you regarding new accounts. In other words, accounts.

What that's done for you regarding <unk>.

<unk> accounts in other words accounts that have yet to use <unk>, what's been the receptivity and what's been the levels growth.

Speaker 8: that have yet to use, backstaff, what's been the receptivity and what's been the level of growth in new accounts?

In new accounts.

Speaker 8: since you have implemented the pricing of the new pricing structure for DAX5. So that's number one. And then on the therapeutic side for DAX5, I think in the past, Mark, you alluded to a pair coverage, not by indication, but more by category. And I guess where I'm going with this is.

Since you have.

<unk> implemented the pricing the new pricing structure for that site. So that's number one and then on the therapeutic side for <unk>.

<unk> I think in the past Mark you alluded to.

Payer coverage.

Not by indication, but more by.

By category, and I guess, where I'm going with this is <unk>.

Speaker 8: How does that play out as it relates to potential off-label use of the Axify beyond cervical dystonia? Thanks.

How does that play out as it relates to potential off label use.

Of the exercise.

<unk> cervical dystonia.

Yes.

Speaker 3: Yeah, thanks David, I'll hit the first one and then it let us have a second one. So in terms of the new pricing strategy and new accounts, I mean, when we went into the market, if anything, we received a little backlash in the community because we weren't.

Yeah. Thanks, David I'll hit the first one and then ill let designate the second one so in terms of the new pricing strategy in new accounts I mean, when we went into the market. If anything we received a little backlash in the community because we werent.

Speaker 3: I'm boarding all the accounts that want to do experience to qualify. And so we had a backlog of accounts that really wanted to try to qualify.

Onboarding all the accounts that wanted to experienced gasify in so we had a backlog of accounts that really wanted to try to <unk>, but the reps were focused on initially targeting the already take customers selling RJ and doing those things and so in.

Speaker 3: But the reps were focused on initially targeting the RHA customers selling RHA and doing those things. And so in Q2 or at investor day, we talked about the fact that we had less than 2000 ordering taxify accounts. And now we're over 2,500. So we're clearly onboarding new accounts. If anything, I think this streamlines the onboarding process and the messaging for new accounts that don't have an experience. Because we can share with them the journey, hey, here was the clinical trial data, here was the market research.

In Q2 or at Investor Day, we talked about the fact that we had less than 2000 ordering gasify accounts now were over 200 2500. So we're clearly onboarding new accounts, if anything I think the streamlines the onboarding process and the messaging for new accounts that don't have an experience because we can share with them the journey here.

Here was the clinical trial data here with the market research here is sort of the initial pricing and.

Speaker 3: Here's sort of the initial pricing and how accounts roll out to patients. And here with some of the feedback. And so our suggestion to them is, you don't have an opportunity to price this on par with your other toxins.

And how accounts rolled it out to patients and here with some of the feedback and so our suggestion to them is you now have an opportunity to price. This on par with your other toxins get real world experience give ya patients more value for the same price and then you can decide over time again, whether to take premium whether to bring them back at the same frequency as the existing.

Speaker 3: Get real world experience, give your patients more value for the same price, and then you can decide over time, again, whether to take premium, whether to bring them back at the same frequency as the existing modulators and give them sort of more good days or fewer wrinkle days, or for those patients that come in two times a year or less, which is a majority, you can give them a better outcome. And so I think it's gonna really crisp the onboarding message for new accounts, and they'll benefit from the learnings of the others. And then when I hand over to Dustin more about that, we will take the next round off of for site, and can actually further deleted it.

Youre modulators and give them sort of more good days or fewer wrinkle days.

Or for those patients that come in two times, a year or less which is the majority you can give them a better outcome and so I think it's going to really Chris the onboarding message for new accounts and no benefit from the learnings of the others and then I hand over to Dustin for the therapeutics. Thanks, David So as we kind of mentioned earlier a lot of the majority of the payers in the space do cover.

Speaker 4: Thanks David, so as we kind of mentioned earlier, a lot of the majority of the the payers in the space do cover bots.

Bots across all indications once they kind of have coverage and we've seen some of that in our early conversations as we saw at one of our top 10 payers, which get even.

Speaker 4: across all indications once they approved coverage. And we've seen some of that in our early conversations as we saw one of our top 10 payers, which gave an unencumbered kind of access to daxify across all indications. So I think the payer landscape for daxify will allow for off label use as appropriate, as the provider sees the team fit. And I think in terms of the quantification of that, I think it's early to tell. I think it'll leverage the aspirin data that we have, they'll leverage some of the other data on ULS to determine what's the right thing to do, but there has been significant inbound interest from providers.

Encumbered kind of access to <unk> across all indications.

Indications, so I think the payer landscape for <unk> will allow us for off label use as appropriate as the provider seized.

And I think in terms of kind of the quantification of that I think it's early to tell I think the leverage the Aspen data that we have the leverage some of the other data on <unk> to determine what's the right thing to do but there has been significant inbound interest from providers across all indications is kind of in the neuromodulator space and so we look forward to continuing to provide the data that we can and.

Speaker 4: across all indications kind of in the neuromodulator space. So we look forward to continuing to provide the data that we can and we'll see what that entails in terms of their confidence to utilize their can other areas.

See what that entails in terms of their confidence to utilize it in other areas.

Okay helpful. Thank you.

Speaker 1: Our next question comes from Stacey Kuh with 3D Cohen. Your line is open.

Our next question comes from Stacy <unk> with J D. Cohen Your line is open.

Speaker 9: Hi, thanks so much for taking your questions. So first, just to clarify something from your preparatory mark.

Hi, Thanks, so much for taking our questions. So first just to clarify something from your prepared remarks.

Speaker 9: Seems like some practices need to work through their already existing

It seems like some practices need to work through their already existing docks by supply. So is that the right way to think about it as you're kind of going back to accounts and talking about.

Repricing.

Speaker 9: as we think about kind of the impact to sales, the first question, the clarification.

As we think about kind of the impact to sales.

First question just a clarification.

Speaker 9: The second is more of a longer term question. So some of our k-walls that have really...

Kent.

Is more of a longer term question. So some of our kols that have really already adopted jakafi. They mentioned the consumer awareness is still really low. So how can you balance kind of expansion of other accounts trying to expand <unk> adoption, but that then and if the kols that have already adopted it how can you.

Speaker 9: already adopted, doxify, they mentioned the consumer awareness is still really low. So how can you balance kind of this expansion of other

Speaker 9: trying to stand dexify adoption, but then kind of the K-AWALs that have already adopted it, how can you expand usage there? So kind of curious your thoughts there on how to balance, maybe a larger scale BTC to patients and when that might be appropriate. And then finally, this carries your thoughts on potential neurotoxin market endurance. So both longer acting and shorter acting, do expect any impact. Thank you so much.

Expand usage there so kind of just curious your thoughts there on how to balance maybe a larger scale DTC to patients and when that might be appropriate and then finally, just curious your thoughts on potential neurotoxin market entrants simple.

Simple longer acting and shorter acting do you expect any impact. Thank you so much.

Speaker 3: Thanks, Stacey. So on the dock, so you supply. So yes, that is true that, you know, for some of the counts that we are circling back up with that already have products on the shelf with a paid higher prices. We're partnered with those accounts to, you know, figure out how we...

Thanks, Stacy so on the Doctor the supply so yes. It is true that for some of the accounts that we are circling back up with that already have product on the shelf with a paid higher prices were partnered with those accounts to figure out how we.

Speaker 3: you know, can work through that inventory, get them to price it to the patients in line with their conventional toxins to get more experience and to, you know, make that an easier switch discussion. And so that is taking some time. And as you can imagine, if they have products on the shelf, then kind of figuring out what that engagement plan is, what the strategy is to pull it through and how to do that. And that's why we...

We can work through that inventory get them to price it to the patients in line with their conventional toxins to get more experience into you'll make that an easier switch discussion.

And so that is taking some time and as you can imagine it's they have product on the shelf then kind of figuring out what that engagement plan is what the strategy is to pull it through and how to do that and Thats. Why we said previously that that's a target and our focus is to go back to these accounts because they do have experienced their staff spent on boarded they've been.

Speaker 3: said previously that that's a target and a focus is to go back to these accounts because they do have experience. Their staff's been onboarded, they've gone through the messaging side of it. And so that is an ongoing focus of the reps in addition to onboarding new accounts. And for those that have already worked through product to make sure that they've implemented the new messaging.

They've gone through the messaging side of it and so that is an ongoing focus of the reps. In addition to Onboarding new accounts.

And for those that have already worked through product to make sure that they have implemented the new messaging.

Speaker 3: In terms of the KOLs and the consumer awareness, you know, we've been supporting the brand kind of more on the digital side of it, but our view is that in this early phase of launch and having such a small number of taxify accounts, we want to be thoughtful about the spend that has good ROI. So if we do nothing but activate consumers,

In terms of the.

Kols and the consumer awareness.

We've been supporting the brand kind of more on the digital side of it but our view is that in this early phase of launch and having such a small number of <unk> accounts, we wanted to be thoughtful about the spend that has good rois. So if we if we do nothing but activate consumers.

Speaker 3: And they go into practices that don't have vaccine, have it in train on vaccines, and it's not a good use of our resources and our time. So a lot of our focus and effort are focused on kind of in-office practice conversion.

And they go into practices that don't have vaccine haven't been trained on <unk> that it is not a good use of our resources and our time. So a lot of our focus and effort are focused on kind of in office practice conversion materials and.

Speaker 3: And increasingly we're looking at ways that we can better support those accounts that have to actify so that we can amplify, you know, their voice and drive more consumers into practices that have to actify on board. And that will be a continued area of focus, but I think you should expect in the near term it's going to be more targeted and linked to those accounts that we have a relationship with versus just broad-based DTC.

And increasingly we're looking at ways that we can better support those accounts that have <unk>. So that we can amplify.

Their voice and drive more consumers into practices that have toxify onboard and that will be a continued area of focus but I think you should expect in the near term, it's going to be more targeted and linked to those accounts that we have a relationship with versus just broad based DTC.

Speaker 3: And then, you know, after your question on the overall competitive market, to your point, there's

And then lastly, your question on the overall competitive market to your point. There is there are a couple of new entrants out there you've got another sort of.

Speaker 3: A couple of new entrants out there, you've got another Korean toxin that's looking to come into the market depending on what happens with their pedophidate. We believe that they'll compete effectively in the short acting category. And so I would say that that probably has less of an impact on us and perhaps more of an impact on others.

Korean toxin, that's looking to come into the market depending on what happens with.

Their <unk> date.

We believe that they will compete effectively in the short acting category and so I would say that that probably has less of an impact on us and perhaps more of an impact on others.

Speaker 3: And then there's QM 1114 that's out there that's got a long-acting liquid formulation. We think actually having more awareness in the market about the importance of duration and long-acting makes sense and will be helpful. They've received a CRL, so it's a TBD in terms of what their next steps are, what their path is. But we continue to see a very robust market that continues to grow.

And then there is <unk> $11 14, Thats out there Thats got a long acting liquid formulation, we think actually having more awareness in the market about the importance of duration and long acting makes sense and will be helpful.

They received a CRM so it's a TBD in terms of kind of what their next steps are what their path is but.

We continue to see a very robust market that continues to grow and based on where we are in our launch evolution and journey. We continue to feel that we've got plenty of room to run.

Speaker 3: based on where we are in our launch evolution and journey, we continue to feel that we've got plenty of room to run.

Thank you very helpful.

Speaker 1: Thank you. Next question, from Annabelle Simee, with C-4. Your line is open.

Thank you. Our next question comes from Annabel <unk> with Stifel. Your line is open.

Speaker 10: Hi, thanks for taking my questions. Just following on your communication strategy with...

Hi, Thanks for taking my questions.

Just following on your communication strategy with with.

Speaker 10: injectors about the pricing strategy doesn't seem like all are aware of it. So do you have a sense how many

<unk>.

Injectors by the pricing strategy. It doesn't seem like all are aware of it. So do you have a sense how many.

Speaker 10: accounts you've been able to double back on and how many you have left. What percent of your former accounts have you double back on and again how many how has it changed adoption of the new accounts and then secondly the R&D day you had several

Accounts, you've been able to double back on and how many you have left what percent of former <unk> double back on and.

And again have any.

How has it changed adoption of the new accounts and then secondly at the R&D day, you had several early adopting injectors that sort.

Speaker 10: early adopting injectors that sort of adapted to the DAX-5 profile and started getting more optimal responses. Where do you feel you are in that process with other injectors and adopters and have newer adopters been having different experiences than the original adopters just with word of mouth and I guess.

Sort of adapted to the Jakafi profile started getting more optimal responses.

Where do you feel you are in that process with other <unk>.

Sectors, and adopters and have newer adopters that having different experiences.

Than the original adopters, just with word of mouth, and I guess, maybe peer to peer.

Speaker 10: maybe peer to peer. So maybe you can just come out and that as well.

So maybe you can just comment on that as well.

Speaker 3: Yeah, so I think Annabelle is hard to really know how...

Yes, so I think annabel its hard to really know how what percent of those that we've on boarded and that have tried taxi that we successfully introduced new pricing program and that have re engaged I think it's going to vary by territory and probably by rep on that side of it I would like to hope that most of them.

Speaker 3: What percent of those that we've onboarded and that have tried to actually that we've successfully introduced a new pricing program and that have re-engaged? I think it's gonna vary by territory and probably by rep on that side of it. I would like to hope that most of them are aware and that if they aren't, that it'll be, a near-time priority for the field force. It's hard to know, but that is a priority and that's obviously where we think the greatest return's gonna be in the near term.

Are aware and that if they arent that it'll be a.

Our near term priority for it for the field force, it's hard to know, but that is a priority and that's obviously, where we think the greatest return is going to be in the near term in terms of kind of where we are onboarding new accounts that didnt have a DAC that don't have <unk> experience.

Speaker 3: You know, in terms of, you know, kind of where we are in some onboarding new accounts that didn't have a DAC, that don't have a DAC-to-file experience.

Speaker 3: So far and it's really, I think that that onboarding process is more streamlined because that messaging is very crisp, it's easy to understand. I think it's easier for, you know, when we talk about practice integration, how do the people in the staff talk about it? It's a very different switch discussion if you're saying, I've got a product that has...

So far and it's early I think that that Onboarding process is more streamlined because that messaging is very crisp, it's easy to understand I think it's easier for when we talk about practice integration how does the people and the staff talk about it. It's a very different switch discussion. If you are saying hey, listen I have got a product that has these attributes and features.

Speaker 3: these attribution features, but I'm an offer to it a price that's in line with what you're used to paying. I think that that is a, you know, again, much easier and we've heard that from the practices that that talk track makes a ton of sense. And so again, while it's early.

I have an opportunity at a price thats in line with what you are used to paying I think that that is a much.

Much easier and we've heard that from the practices that that talk track makes a ton of sense and so again, while it's early.

Speaker 3: You know, we like what we're saying. We talked about in our prepared remarks that

We like what we're seeing we talked about in our prepared remarks, the percentage of revenue made up from reordering accounts, an increase in the number of hours that we saw on a quarter over quarter basis. So again, we continue to have high competence based on the ongoing discussions that we're having with existing and potential new customers about this change and the excite.

Speaker 3: percentage of revenue made up from reordering accounts and increase in the number of outs that we saw in a quarter of a quarter basis. So again, we continue to have high confidence based on the ongoing discussions that we're having with.

Speaker 3: existing and potential new customers about this change and the excitement about really trying and experiencing Daxi.

Been about really trying and experiencing doxy.

Okay, and if I could just.

Speaker 10: have a follow up on the therapeutic side. I mean, I guess, how should we think about the adoption court? I know initially you're doing this selective training of physicians, but...

Have a follow up on the therapeutic side.

How should we think about the adoption curve I know initially you are doing in selective training.

Sure.

Our physicians, but.

Speaker 10: You know, barn reimbursement delays, which I don't think you should have any with the J-code, which is, you know, the schedules are pretty established. Do you think that there could be less hesitation for physicians to use this? Given that it's not so much of an aesthetics or an art on someone's face as opposed to a real clinical outcome that patients can feel. So how do you think that adoption curve would sort of compare to what you see in the aesthetics adoption?

Barring reimbursement delays, which I don't think you should happening with the J code, which is the schedules are pretty established do you think that there could be less hesitation.

For physicians to use.

Just given that it's not so much a in aesthetics or an art on someone's face as opposed to <unk>.

Real clinical outcome that patients can feel so how do you think that adoption curve, which sort of compare to what <unk> seen steady adoption.

Speaker 4: Thanks, Annabelle. This is tough. And I think when we thought a lot about that in terms of adoption curves, and you see so many different things that go into it on the aesthetic side, I think you do see some of those things in the therapeutic side, but a little bit less as relates to kind of different toggles in that journey. I think it'll determine how quickly our reps can get into those offices.

Thanks, Annabel this is stuff that I think when we thought a lot about that in terms of adoption curves and you see so many different.

Things that go into it on the aesthetic side I think you do see some of those things and the therapeutic side, but a little bit less as it relates to kind of different.

Toggles are in that journey I think it will determine how quickly our reps can get into those offices.

How they can can work them through as you know getting the prior authorization all bonds stayed prior authorization regardless of coverage and so I think it will just be how quickly does that uptake.

Early providers in our <unk> program have been excited to use it.

I think on a variety of different patients. So we anticipate when we get our field force hired others will be able to drive that but typically the adoption curves are slower here in cervical dystonia, then what you would see in aesthetics, but now in the aesthetics, you've got so many different variables and so.

Speaker 11: field force hired others will be able to drive that. But typically the adoption curves are slower here in service with Estonia than what you would see in aesthetics. But now in aesthetics, you've got so many different variables. So we will continue to analyze that and look forward to getting this data back in preview to then be able to provide what we think will be the right adoption metrics on the therapy effect. Great. Thank you. Next. Next question comes from Tim Lugo with William Blair. Your line is open. This is Wachon onto Tim. Thanks for taking the questions. I guess first just Toby, it looks like you're sort of being pretty disciplined on the.

We will continue to kind of analyze that and look forward to getting this data back from preview to then be able to provide what we think will be the right kind of adoption metrics on the therapeutic side.

Speaker 12: Great, thank you.

Okay, great. Thank you.

Excellent.

Speaker 1: Our next question comes from Tim Lugo with William Blair, your line is open.

Our next question comes from Tim Lugo with William Blair. Your line is open.

Speaker 11: This is Walkwell onto Tim. Thanks for taking the questions. I guess first just...

Hi, This is <unk> on for Tim Thanks for taking my questions I guess first just tobey it looks like Joseph.

Speaker 11: Toby, it looks like you're sort of being pretty disciplined on the expense side, but you've obviously got the restructuring and then you're ramping up a CD launch. So should we be thinking about the Q3 numbers as reasonable run rate for the next few quarters or they're more changes to expect there? And then on the therapeutic side, I think you said out about 150 patients. I know you mentioned your targeting 30 practices. Did you have a target patient number in mind? I believe in you.

One on the expense side, but you've obviously got the restructuring and then wrapping up with the CD launch so should we be thinking about the Q3 numbers as reasonable run rate for the next few quarters or are there more changes to expect.

And then on the therapeutic side I think you said that about 150 patients I know you mentioned, you're targeting 70 practices did you have a target patient number in mind that to you.

Speaker 11: sort of generating revenue from these patients through insurance during the preview program.

We're generating revenue from these patients through insurance the previous program.

Speaker 5: Thanks, this is Toby. I'll take your first question and turn it over to Mark.

Thanks. This is Toby I'll take your first question then.

I'll turn it over to Mark Mark Dustin So.

Speaker 5: Mark Dustin. So on the expense side of things and the guidance, we provided annual guidance of 315 to 335 from a non-gap perspective for the course of 2023. And obviously.

On the <unk>.

Expense side of things in the guidance.

We provided annual guidance.

315 to $3 35 from a non-GAAP perspective for the course of 2023 and.

Obviously, then that that is.

Speaker 5: That is the extent of our guidance right now. However, as Mark and I have said on a prepare remarks, the exit from the Opal Business provides us some optionality with the $20 million that we're annually investing in the Opal Business. So more to come.

None of our guidance right now however, as Mark and I have said on our prepared remarks.

The exit from the <unk> business provides us some optionality with the $20 million that were annually investing in the <unk> business. So.

More to come on that one.

Speaker 4: This is up on your second point. We treated more than 150 now. You mentioned revenue from the patients. I want to be clear that these are patients that have been sampled. The goal of this program is not to generate.

This is Doug on your second point.

Treated more than 150 now you mentioned revenue from the patients I want to be clear that these are these are patients that have been sample. The goal of this program is not to generate.

Speaker 4: revenues potentially through this channel or in the early phases. Now, we'll come of these providers begin to start testing when we have that permanent J code and others utilization, kind of in a non sample setting. We do think that will happen in...

Revenue potential through this channel are in the early phases now well some of these providers begin to start testing when we have that permanent J code in others.

Utilization kind of in a non sample setting we do do think that'll happen in.

Speaker 4: first part of next year, but ultimately that will be relatively slow because it is those 30 providers. I think as we start unlocking larger channels like federal and others, we'll be able to provide some more input as it relates to what that adoption looks like. But from an overall preview perspective, we didn't anticipate anywhere between 200 and 250 or so patients that are going to be utilized.

First part of next year, but ultimately that will be relatively slow because it is those 30 providers I think as we start unlocking larger channels like federal and others will be able to provide some some more kind of input as it relates to kind of what that adoption looks like but from an overall premium perspective, we would anticipate anywhere between 200 and 250 or so patients that are going to be utilized.

Speaker 4: through this program. And remember, it's not just to push patients to the first start, but it's really insurable to still need to get them to experience a couple different treatments.

Through this program and remember, it's not just to push patients to the first start but it's really in several of the selling to get them to experience a couple of different treatments because of that titration that typically happens in a lot of these patients that are actually being put on <unk> have already been titrated at significantly higher doses and theyre starting dose of other neuromodulators and so they're coming back in.

Speaker 4: because of that titration that typically happens. A lot of these patients that are actually being put on to daxify have already been titrated to significantly higher doses than they're starting dose of other neuromodulators. And so they're coming back in now at the axify with a dose that's potentially different than what they are on now today with some of the neuromodulators. And so it'll be understanding that trajectory over a couple cycles, not just first starts like we saw on the aesthetic side.

Now it is <unk> with a dose that potentially is different than what they.

They are on now today with some of the Neuromodulators and so it'll be understanding that trajectory over a couple of cycles not just first starts like we saw in aesthetic side.

Alright. Thanks.

Speaker 1: Thank you. Now turn to your ear with a machuho. Your line is open.

Thank you Mark.

With Mizuho your line is open.

Speaker 13: You guys, thanks for taking my question. Can you talk a bit about, on the patient's level, whether the new pricing strategy is being passed on to the patients, and at what level I just wanted to get a better sense? That's my first question. And I guess, and in this quarter, it seems that you've increased about...

Hey, guys. Thanks for taking my question can.

Can you talk a bit about.

And on the patient level, whether the new pricing strategy.

Being passed on to the patients and at what level, we just wanted to get a better sense.

This is my first question and then I guess.

This quarter on <unk>.

It seems like you've increased about.

Speaker 13: 500 at Tounce and he was wondering if that's driven primarily by RHA or more or by Daxify.

500 accounts.

I was wondering if.

And that's driven primarily by R&D more or buy them <unk>.

Thanks.

Okay.

Speaker 3: You know, we, um, so first on the pricing program and whether or not that that's being passed on to the patients, I mean, that's our expectation and that's the positioning that we're taking and the whole justification and rationale for the price change that we took based on feedback, which was, hey, I like the product.

Yes.

So first on the pricing.

Program, and whether or not that that's being passed onto the patients I mean, that's our expectation and thats. The positioning that we're taking in the whole justification and rationale for the price change that we took based on feedback which was hey, I like the product.

Speaker 3: As I started patching a premium, it makes her a longer and more involved switch discussion and then sometimes expectations. And so when we onboard new accounts, so where we go back to existing accounts, we let them know that we've really adjusted this price.

As I start attaching a premium it makes for a longer and more involved switch discussion and then sometimes expectations and so when we get when we onboard new accounts. So when we go back to existing accounts, we let to know that we've really adjusted this price. So that you can price it to patients at the same level as your current toxins.

Speaker 3: so that you can price it two patients at the same level as your current toxins.

Speaker 3: and get familiarity and experience and get more comfort with it. So that is the hope. I'm sure not all accounts follow that. Some perhaps take maybe a lot of premium or whatever, but that's the whole reason that we made the change. And I would say, you know, the majority of them are doing that. And we think that that's the right way to get a lot more familiar in experience with the product. Because they're gonna be subtleties with all these products that they need to, you know, sort of really optically work our way through. And then the second question.

And get familiarity and experience and get more comfort with it. So that is the hope I'm sure not all accounts followed that.

Perhaps maybe a modest.

Premium or whatever but that's the whole reason that we made the change and I would say a majority of them are doing that and we think that that's the right way to get a lot more familiar and experienced with the product because theyre going to be subtleties with all these products that they need to sort of really optimally work our way through and then the second question.

Speaker 13: I always just wanted to know the account increase in the quarter, whether that was driven more by RHA.

I just wanted to know.

The account increasing in the quarter, whether that was driven.

More by R. J.

Speaker 3: Yeah, we said, you know, last quarter we said we were at around 6,000 accounts. Now we're at 5,500 accounts, that's total. And then we said on an earnings investor day that, you know, we had less than 2,000, daxify ordering accounts. And then this quarter where, you know, 2,500. So I think you're seeing, you know, good growth in the daxify accounts. So that's going to probably represent, you know, a lot of the growth in the quarter.

Yes, we said last quarter. We said we were at around 6000 accounts now we're at 6500 accounts Thats total and then we said at earnings Investor Day that we had less than 2000 docs defy ordering accounts and then this quarter. We're 2500, so I think youre seeing good growth in the docks.

Defy accounts, so thats going to probably represent.

A lot of the growth in the quarter.

Okay. Thank you.

Okay. Thank you.

Speaker 1: Now turn to search for Lange with Needham and Company. Your line is open.

Now to answer your search for longer with Needham <unk> Company. Your line is open.

Speaker 14: Good afternoon, and thanks for taking my questions. First one, can you talk about how the third quarter was trending in terms of vile volumes? Thank you.

Good afternoon, and thanks for taking my questions.

First one can you talk about how the third quarter was trending in terms of file volumes.

Ahead of the price change.

Speaker 14: And then secondly, when you launch this product, you launch it with a CAT-GDTC advertising of breaking up with Botox. I think emphasizing the switch opportunity for DACC.

And then secondly.

When you launched this product.

You're launching with a catchy DTC advertising.

Breaking up with Botox.

I think emphasizing the switch opportunity for <unk>.

Speaker 14: curious now with the lower price, whether you think you're better positioned to catch the new patients coming into...

Curious now with the lower price, whether you think you're better positioned to catch.

New patients coming into the aesthetic market. Thanks.

Okay.

Speaker 3: Thanks, sir. Maybe I'll take the second one first, in terms of kind of how will position in the marketplace with this price change and what does that mean for adoption and the DTC program that we did?

Yeah. Thanks, Serge maybe I'll take the second one first in terms of kind of how we're positioned in the marketplace with this price change and what does that mean for adoption in the DTC program that we did.

Speaker 3: You know, as I mentioned earlier, we believe that the best way to, you know, to switch a patient is at the practice level. If the practice is bought into...

<unk> mentioned earlier, we believe that the best way to to switch a patient is at the practice level as the practices bought into.

Speaker 3: I like this product. I believe it's something that I want to offer my patients because I think there's value that I can provide to them that they're not currently getting out of their conventional neurotoxin. We believe that the credibility that the injector-

This product I believe it's something that I want to offer my patients because I think there's value that I can provide to them that they are not currently getting out of their conventional neurotoxin. We believe that the credibility that the injector has.

Speaker 3: Far and away is more valuable than a consumer coming in and asking about something that is new. So we spent a lot of our time and effort.

Far and away is more valuable than a consumer coming in and asking about something that is new so we spent a lot of our time and effort arming sort of that the entire staff with materials about this new product and then the value for the injector as they see that I can give my patients something that they don't have today most of them are trying to figure out how.

Speaker 3: arming sort of the entire staff with materials about this new product.

Speaker 3: And then the value for the ejector is they see that, hey, I can give my patients something that they don't have today.

Do I give them the best value for the dollar and then over time it will give them. Another option in terms of something that you can either charge a premium for once they have experience and feedback from patients or you will give them more value knowing that most of them come in less than two times a year. So.

Speaker 3: or give them more value knowing that most of them come in less than two times a year. So we're gonna continue to lean in at the practice level to make sure that they have the right tools in the switch and we think that the pricing lever was a biggie in terms of facilitating that switch. And so it's less about trying to capture new and more about allowing them, or give them the right tools to switch it, the patient's over. In terms of third quarter volumes and where we're tracking, I mean, most quarters are gonna be back and loaded to the third month of the quarter anyways. That's just the way that this business is.

We're going to continue to lean in at the practice level to make sure that they have the right tools and the switch and we think that the pricing lever with the BD in terms of facilitating that switch and so it's less about trying to capture new and more about allowing them, giving them the right tools switch.

Patients over in terms of third quarter volumes, and we're tracking I mean, most quarters are going to be backend loaded to the third month of the quarter anyways. That's just the way that this business is.

Speaker 3: In terms of third quarter volumes, and where we're tracking, I mean, most quarters are going to be back and loaded to the third month of the quarter anyways. That's just the way that this business is.

Speaker 3: Obviously we talked about the fact that September made up a majority of the

Obviously, we talked about the fact that.

September made up the majority of the.

Speaker 3: you know, the reorder revenue, both in terms of the vials and the dollars on that side of it and reordering accounts made up roughly two thirds of the revenues. So, we saw what we believe are really good early signs, particularly when we compared it to June , which was the third month in Q2. And so we like what we saw in terms of the impact of that. And so, we believe based on the feedback that we received that this was the right move and we made the right move what we believe was the right time based on having enough information to influence that. But, you know, again, we like what we're seeing out there.

The reorder revenue both in terms of the vials and the dollars on that side of it and reordering accounts made up roughly two thirds of the revenue. So we saw what we believe are really good early signs, particularly when we compared it to June which was the third month in Q2, and so we like what we saw in terms of the impact of that and so we.

We believe based on the feedback that we received it was the right move and we made the right move what we believe was the right time based on having enough information to influence that.

But again, we like what we're seeing out there.

Speaker 14: Maybe I'll sneak in one more. Fourth quarter is a big quarter for aesthetics.

Okay, maybe I'll sneak in one more.

Fourth quarters.

A big quarter for aesthetics, and Theres, a few neurotoxin players.

Speaker 14: there's a few neurotoxin players that have...

It has.

Speaker 14: prominent product days during the quarter just curious if there's a complaining to have a a daxi day

Prominent product days during the quarter just curious if there is through planning to have.

Taxi days during the quarter.

Speaker 3: Yeah, you know, these sort of these days that competitors use to try and incentivize sort of patient couponing in both purchasing from accounts that have been around for a while. And obviously we...

Yes.

These <unk>.

Days that competitors used to try and incentivize sort of patient couponing and bulk purchasing from accounts that had been around for a while and obviously, we've weathered add on the resi solar side over the last several years and that's not been a cornerstone of our strategy, we've tended to lean in with product differentiation.

Training and education, and we continue to feel that that's the right way to go so I wouldn't expect anything from us in Q4 in terms of the Dachsie day.

Speaker 1: right way to go. So I wouldn't expect anything from us in Q4 in terms of the Daxie Day. You know we're going to continue to really focus on getting accounts onboarded with this new pricing strategy allowing them to get their patients the experience that we think they're going to love once they get more familiarity with the product and so that's really what we're focused on in Q4. Thank you. Great. Thanks, Erdogan. .

We're going to continue to really focus on getting accounts on board with this new pricing strategy, allowing them to give their patients. The experience that we think theyre going to love once they get more familiarity with the product and so that's really what we're focused on in Q4.

Speaker 15: Thank you.

Thank you.

Great. Thanks.

Speaker 1: Our next question comes from Cougalist style with HD Wainwright. Your line is open.

Our next question comes from Douglas Tsao with H C. Wainwright Your line is open.

Speaker 16: I could afternoon and thanks for taking the questions. Mark, I think you've said it, but I just want to make sure it's clear in terms of what you saw in September after the price change. From a total revenue basis, did you see sufficient or sort of increase in units to offset the lower price that you were adding? I think.

Hi, good afternoon, and thanks for taking the questions.

Mark I think you said it.

But I just want to make sure it's clear in.

In terms of what you saw in September.

After the price change so from a total revenue basis did you see sufficient or sort of increase.

In units to offset the lower price that you were getting.

Speaker 3: Yeah, I think as we showed, you know, in our press release too, we saw units increase 10% on a quarter of a quarter basis. And, you know, revenue came in at 22 million versus 226. So, we saw a night's healthy up tick of, you know, an increase of 10% units, but that was offset by the price adjustment that we made. You know, those $70, they lost.

Yes, I think as we as we showed.

Our press release too we saw units increased 10% on a quarter over quarter basis.

And revenue came in at $22 million versus 22 six.

We saw a nice healthy uptick of an increase of 10% units, but that was offset by the price adjustments that we made.

Well I guess I'm trying to understand what's your thoughts <unk>.

Speaker 16: So, in to temper onions, think you granted it out. But, that came in to ... So, into 1050g of meat. If you come to payicking with your business ...

So in September I mean until September on with your business.

Go ahead, but we're going to say mark.

Speaker 16: I was just going to say so specific to some of our, did you see that increase in units to make it sort of a better month from a absolute revenue standpoint, or was it ultimately, and was it maturely higher than what you saw for the most part?

I, just can say specific to Houston.

Did you did.

Did you see that increase in.

In units to make it sort of a better month from a absolute revenue standpoint or was it ultimately.

And was it materially higher than what you saw for the most part.

Speaker 3: You know what I mean, we, as I mentioned, September tends to be a fifth year of month, so it's really hard to know in a vacuum. Exactly what it would be since we born to the market September last year. We did look at June as a proxy for September to say that's the third month of another quarter. And again, we liked the trends that we saw. Most of our reorder revenue and our reorder vile sold did come in September . And so, you know,

Yes, I mean, we.

As I mentioned September tends to be a busier months. So it's really hard to know in a vacuum exactly what it would be since we weren't in the market September of last year. We did look at June as a proxy for September to say Thats. The third month of another quarter and again, we like the trends that we saw most of our reorder revenue in a reorder.

<unk> vials sold did come in September and so.

Speaker 3: We were attributing that to the price adjustment and how customers embrace that change.

We are attributing that to the price adjustment and how customers embrace that change.

Speaker 16: Okay. And maybe I'm parsing words a little bit, but you know, I'm an equity research analyst, so that's what we do. In terms of your commentary about needing to reengage or re-engaging with customers. I'm just curious, were you having...

Okay.

And maybe I'm parsing words, a little bit, but I'm, an equity research analyst. So that's what we do.

In terms of your commentary about needing to re engage re engaging with customers I'm just curious when you having.

Speaker 16: a trouble, you know, sort of having, or the dialogue somewhat cut off after people had some experience or perhaps, you know, we're having some frustrations with that spine, nearly going.

Trouble sort of having the dialogue somewhat cut off after people had some experience or perhaps we're having some frustration with that spy in the early going.

Speaker 3: Yeah, so I mean, I think we definitely have some accounts where, you know, we have some that leaned in heavily where Daxi is majority share of wallet. They've figured out the product, they love the look that they get, their patients love it, even the premiums work and then they're really happy with it. So we've got, you know, a number of those accounts where that's working. But we definitely have some accounts that trial the product, treated sort of a select number.

Yes, so I mean, I think we definitely had some accounts where.

We had some that lean in heavily where taxi is majority share of wallet. They figured out the product they love to look that they get their patients love it even the premiums working and they're really happy with it. So we've got a number of those accounts, where that's working but we definitely have some accounts that trial the products treated sort of a select number of patients had some come back.

Speaker 3: had some come back that expressed, I'm not sure that the performance profile is worth it for the cost. And then for practices, if they didn't dose them right, if they didn't set the right expectations, if they didn't take before pictures so that they could compare the baseline.

At Express K I'm not sure.

The performance profile is worth it for the cost and then for practices that they didnt dose them right. If they didn't set the right expectations. If they didn't take before pictures, so that they can compared to baseline.

Speaker 3: That hit a point where they just said, you know, this is hard. And now I've got to spend extra time kind of educating the patients or taking...

That hit a point, where they just said you know this is hard and now I've got to spend extra time kind of educating the patients were taking them up and so as we've gone back into this account that sort of hit this point of I like it I think it's a better product, but the practice integration piece of it is more challenging this is where we got the feedback and it really resonated with.

Speaker 3: And so as we've gone back into the accounts, it sort of hit this point of, I like it. I think it's a better product, but the practice integration piece of it is more challenging. This is where we got the feedback and it really resonated with them, where that re-engagement is okay. If I can price it in line with the other toxins.

Them, where that Reengagement is okay. If I can price it in line with the other toxins and your price to me is such where I'm not having to eat margin than I'm willing to lean in and get experience. So that I can figure out where the steps and so that set reengagement piece and in some of these accounts that had sort of stalled a little bit or reserved it for specific subsets of.

Speaker 3: And your price to me is such where I'm not having to eat margin, then I'm willing to lean in and get experience so that I can figure out where this fits. And so that's that re-engagement piece. And in some of these accounts that it sort of...

Speaker 3: Stalled a little bit or reserved it for specific subsets of patients. Our goal is obviously to get broader adoption. And that's that re-engaging piece. And if they had some product on the shelf, then they would work through, uh, okay, let's talk about how we pull that through. Let's talk about how many patients we treat. Let's talk about making sure that you've got message consistency, all those things. Okay. Great.

<unk> our goal is obviously to get broader adoption and that's that reengagement piece and if they had some product on the shelf and they would work through.

Okay, let's talk about how we pull that through let's talk about how many patients we treat let's talk about making sure that you've got message consistency all those things.

Okay, great. Thank you so much that's helpful.

Great. Thanks, Doug.

Speaker 1: We now turn to Terence Flynn with Morgan Stanley . Your line is open.

We now turn to Terence Flynn with Morgan Stanley. Your line is open.

Speaker 17: Hi, thanks for taking the question. I guess too, probably for Toby, is just, you know, any more clarity on timing of how you're thinking about the revenue guidance for 2024, is that early January event? Is it in conjunction with fourth quarter results, or is it later in the year? And then how should we think about the daxified gross margin progression, as we had into 24? resources to offer a share payment. Not for far seventy five hours, simplify dubbing system,

Hi, Thanks for taking the question.

Two probably for Tobey is just.

Any more clarity on timing.

How youre thinking about the revenue guidance for 2024 is that fair.

Early January event is it in conjunction with fourth quarter results or is it later in the year and then how should we think about the jakafi gross margin progression as we head into 'twenty four thank you.

Speaker 5: Good question, Terrence. So we haven't been specific on the timing of our guidance right now except for the first half of 2024.

Okay, great questions. Terence So we haven't been specific on the timing of our guidance right now except for the first half of 2024 and right now we think that that's the appropriate guidance to give on that on that particular timing.

Speaker 5: Right now I think that's the appropriate guidance to give on that particular timing.

Speaker 5: Regarding the gross margin profile, if you were to look at our gap, gross margin profile, it was reported in Q1, Q2, Q3.

Regarding regarding sort of the gross margin profile. If you were to look at sort of our GAAP gross margin profile. It was reported in Q1 Q2 Q3 <unk>.

Speaker 5: Revances gap growth margin has been pretty consistent about 73, 68, 60 and 70-ish percent over the past several quarters.

<unk> GAAP gross margin has been pretty consistent about $73 68, and 70 ish percent over the past several quarters.

Speaker 5: And again, that's largely been, you know, the Q3, obviously, you know, the mix between Q2 and Q3 of RHA and Daxpai was relatively the same Q2 versus Q3.

And again, that's largely been.

The Q3, obviously the mix between Q2, and Q3 of <unk> and <unk> was relatively the same Q2 versus Q3.

<unk>.

Speaker 5: So we had lower prices for DACs if I starting in September , but we were able to offset that with efficiencies that we were found through the supply chain to maintain that gross margin profile.

So we had lower prices reduction probably starting in September, but we were able to offset that with efficiencies that we were filing through the supply chain to maintain our gross margin profile.

Speaker 5: You know, one of the things that as we as we start to

One of the things that.

As we start to.

Speaker 5: utilize the prior approved product, the product that was expensed versus capitalized.

Utilize.

The prior approved product the product that was expensed versus capitalized we expect there will be some flux upwards on are on sort of the cost of goods sold for <unk>. However that will be partially offset by going into RG and other manufacturers that are.

Speaker 5: We expect there will be some flux upwards on sort of the cost of good sold for the axe and gentry.

Speaker 5: However, that will be partially offset by going into algae and other manufacturers that are actually much cheaper on a unit economic perspective. So we expect some fluctuation around the margin, but generally trying to offset those and the larger thing is making sure a stabilizing...

That are actually much cheaper on a unit economic perspective, so we expect some fluctuation.

Or on the margin, but generally trying to offset those.

The larger thing is making sure stabilizing prices.

Thank you.

Speaker 1: All loss question comes from the Van Tai with B&P Paraba. Your line is open.

Our last question comes from Noah <unk> with BNP Paribas. Your line is open.

Okay.

Speaker 18: Hi, good evening, thanks for taking my question and thanks for the call. I'm so far on the right-stained. Just an additional, some additional ones from me. Do you have an estimate on how long it will take for itself to re-engage on pricing with the existing accounts that have been trained and have experienced, or what percentage of existing accounts have been re-engage with your target?

Hi, Good evening, Thanks, Tom taking my question and thanks a lot.

Thanks James.

Im just.

In addition, some additional one time do you have an estimate on how long it will take.

Four two.

Gains on pricing with the existing accounts that have been trained and have experience.

Presentation with existing accounts have been.

We engaged with your targets.

Thank you.

Speaker 3: Thanks, Amanda. I don't necessarily have a great number again. If you look at through the end of Q2, we said we were less than 2000 accounts. So I'm hoping that a number of these accounts have been contacted by the reps to inform them of the new price change to reengage. And then...

Thanks Daniel.

I don't necessarily have a great number again, if you look at through the end of Q2.

We are less than 2000 accounts, so I'm, hoping that.

A number of these accounts have been contacted by the reps to inform them of the new price change to Reengage and then.

Speaker 3: You know, as we said before, that re-engagement process and a given territory can take a little while as they work through each of their different accounts. And listen, I'm sure there's some that may not be sort of, you know, in a position to re-engage. They might say, hey, you know, come back in a little bit, but I would say most of the accounts that we've onboarded have been contacted and then the question is where they are and that re-engage the process and I just don't know.

<unk> said before that Reengagement process in a given territory can take a little while as they worked through each of their different accounts and listen I'm sure. There are some that may not be sort of.

In a position to re engage that might say hey come back in a little bit.

But I would say most of the accounts that we have onboard it had been contacted and then the question is where they are and that re re engage the process and that's still known.

Thank you Damian.

Speaker 1: Ladies and gentlemen, this concludes our Q&A and today's conference call. We'd like to thank your participation. You may now disconnect your line.

Ladies and gentlemen, this concludes our Q&A and today's conference call.

For your participation you may now disconnect your lines.

Yeah.

Speaker 19: St.