Q4 2023 Revance Therapeutics Inc Earnings Call

Operator: Welcome to the Revance Therapeutics fourth quarter and full year 2023 financial results and corporate update conference. At this time, all participants are in listen-only mode.

Welcome to the rebound therapeutics fourth quarter and full year 2023 financial results and corporate update conference call. At this time, all participants are in listen only mode.

Operator: If anyone has difficulty hearing the conference call, please press star zero. Following management's prepared remarks, we will hold a Q&A session. To ask a question at that time, please press star forward by one on your touch.

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

Following managements prepared remarks, we will hold a Q&A session to ask a question at that time. Please press star followed by one on your Touchtone phone.

Operator: To ensure that we have ample time to address everyone's questions, we would ask each person to limit themselves to one question and one follow-up. As a reminder, this call is being recorded on Wednesday, February 28. I would now like to turn the conference call over to Jessica Serra, Head of Investor Relations, Corporate Communications and ESG for Revance. Thank you, operator.

To ensure that we have ample time to address everyones questions. We would ask each person to limit themselves to one question and one follow up.

As a reminder, this call is being recorded on Wednesday February 28 2024.

I would now like to turn the conference over to Jessica Sarah head of Investor Relations Corporate Communications and ESG three events. Please go ahead.

Jessica Serra: Thank you operator, joining us on the call today from prevents our Chief Executive Officer, Mark Foley and Chief Financial Officer, Toby Schilke.

Jessica Serra: Joining us on the call today from Revance are Chief Executive Officer Mark Foley and Chief Financial Officer Toby Schilke. During this call, management will make forward-looking statements, including statements related to the impact of our pricing and strategy on DACS 5 on adoption, expectations and timing related to product adoption and reorders, our product pipeline, consumer needs, preferences and behavior, the benefits and value to us, practices and consumers of our products, including the efficacy, duration, and safety of our products, 2024 guidance, cash flow break-even, positive adjusted EBITDA, future capital expenditures, funding our business, and capital allocation plans, our strategic priorities, our anticipated success, our blockbuster growth potential, our market opportunity and expectations, provider partnerships, the wind-down of OPL, our strategy, planned operations, international expansion, strategic partnerships, and commercialization plans and timings.

Jessica Serra: During this call management will make forward looking statements, including statements related to the impact of our pricing and strategy on jakafi on adoption expectations and timing related to product adoption and reorders.

Jessica Serra: Product pipeline consumer needs preferences, and behavior, the benefits and value to us practices and consumers of our products, including the efficacy duration and safety of our products 2024 guidance cash flow breakeven positive adjusted EBITDA future capital expenditures funding our business and capital.

Jessica Serra: Allocation plans, our strategic priorities, our anticipated success, a blockbuster growth potential our market opportunity and expectations provider partnerships. The wind down of Opel our strategy plant operations International expansion strategic partnerships and commercialization plans and timing.

Jessica Serra: Our actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and concerns. Factors that could cause these results to be different from these statements include factors the company describes in the section called risk factors in our annual report on Form 10-K to be filed with SEC today, February 28th, 2024. Revance undertakes no duty or obligation to update any forward-looking statements as results of new information, future events, or changes in its expectations.

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

Jessica Serra: Factors that could cause these results to be different from these statements include factors. The company describes in the section called risk factors in our annual report on Form 10-K to be filed with the SEC. Today February 28, 2024 rebounds undertakes no duty or obligation to update any forward looking statements as a result of new information future events.

Jessica Serra: <unk> or changes in its expectations.

Jessica Serra: Also on today's call, we will present both GAAP and non-GAAP financial measures. Reconciliation of non-GAAP to GAAP measures is included in our earnings release. With that, I will turn the call over to Mark Foley, Chief Executive Officer of Revance. Thank you, Jessica. Good afternoon, everyone.

Jessica Serra: So on today's call, we will present, both GAAP and non-GAAP financial measures reconciliation of non-GAAP to GAAP measures is included in our earnings release.

Jessica Serra: With that I will turn the call over to Mark Foley, Chief Executive officer of prevents mark. Thank.

Mark J. Foley: Thank you Jessica good afternoon, everyone and thank you for joining our fourth quarter and full year 2023 financial results Conference call.

Mark J. Foley: And thank you for joining our fourth quarter and full year 2023 Financial Results Conference call. I'll first cover our overall performance in our aesthetics and therapeutics businesses before turning the call over to Toby to review our financial results in 2024 guidance. 2023 was an important year for Revance. We realized several pivotal milestones, including the launch of Daxify anesthetics and the FDA approval of Daxify for cervical dystonia, in addition to achieving record product revenue of $213 million, up 80% year over year. From a balance sheet perspective, we ended the year in a strong financial position with $254 million in cash, cash equivalents, and short-term investments.

Mark J. Foley: First cover our overall performance at our Statics and therapeutics businesses before turning the call over to Toby to review, our financial results and 2020 for guidance.

Mark J. Foley: 2023 was an important year for Readouts, we realized several pivotal milestones, including the launch of <unk> in aesthetics, and the FDA approval of <unk> for cervical dystonia. In addition to achieving record product revenue of $213 million up 80% year over year.

Mark J. Foley: From a balance sheet perspective, we ended the year at a strong financial position with $254 million in cash cash equivalents and short term investments.

Mark J. Foley: Combined with our commercial progress to date, we believe we are well positioned to deliver on our strategic priorities for 2024, which I will cover later in the call. Turning to Daxify for our aesthetics business, we generated total sales of $95 million in our first five quarters of launch, exceeding the combined sales of the last three neuromodulators to enter the market in the same launch timeframe. We also gained important real-world feedback from the early stages of our DAXify launch, which informed our updated pricing and provider engagement strategy, better positioning us for broader adoption and long-term success. As a reminder, we revised Daxify's pricing in September of last year to be more competitive and to facilitate greater trial and adoption.

Mark J. Foley: Behind with our commercial progress to date, we believe we are well positioned to deliver on our strategic priorities for 2024, which I will cover later in the call.

Mark J. Foley: Turning to <unk> for our aesthetics business, we generated total sales of $95 million in our first five quarters of launch exceeding the combined sales of the last three neuromodulators to enter the market and the same launch timeframe.

Mark J. Foley: We also gained important real world feedback from the early stages of our <unk> launch, which informed our updated pricing and provider engagement strategy better positioning us for broader adoption and long term success.

Mark J. Foley: As a reminder, we revised <unk> pricing in September of last year to be more competitive and facilitate greater trial and adoption.

Mark J. Foley: Since adapting our strategy, we began to see the desired impact with regards to usage, reorder rates, and customer perception, with that momentum continuing into Q1. From a sales volume perspective, Q4 vials sold were up 22% compared to Q3 and importantly, more than two-thirds of Q4 revenue came from existing accounts. Based on our current focus on existing customers, we believe this reflected deeper product adoption. We ended the year with over 3,000 Vaxify accounts, which is less than 10% of the total number of U.S. aesthetic accounts, and less than one half of our existing account base, underscoring our significant runway for growth. Since the rollout of our new pricing and provider engagement strategy, we have focused our efforts on existing Daxify customers since these accounts have already been trained, have experience with the product, and in most cases, are RHA customers.

Mark J. Foley: Since adapting our strategy, we began to see the desired impact with regards to usage reorder rates and customer perception with that momentum continuing into Q1.

Mark J. Foley: From a sales volume perspective, Q4, vials sold were up 22% compared to Q3, and importantly, more than two thirds of Q4 revenue came from existing accounts.

Mark J. Foley: Our current focus on existing customers. We believe this reflected deeper product adoption.

Mark J. Foley: We ended the year with over 3000 docs defy accounts, which is less than 10%. The total number of U S aesthetic accounts and less than one half of our existing account base underscoring our significant runway for growth.

Mark J. Foley: Since the rollout of our new pricing and provider engagement strategy, we have focused our efforts on existing <unk> customers. Since these accounts have already been trained have experience with the product and in most cases our customers.

Mark J. Foley: And from a reputational and foundational perspective, we believe it's important to gain their support. Previously, we indicated that we expect this re-engagement plan to take approximately two quarters before turning our focus to new account activation in the beginning of Q2. Beyond pricing, we consistently hear from customers that Daxify is a great product and offers a compelling value proposition because of its unique peptide formulation, fast onset, long duration, and ability to enhance the skin's appearance.

Mark J. Foley: And from a reputational and foundational perspective, we believe it's important to gain their support.

Mark J. Foley: Previously we indicated that we expect this re engage or planning to take approximately two quarters before turning our focus to new account activation and the beginning of Q2.

Mark J. Foley: Beyond pricing, we consistently hear from customers that <unk> is a great product and offer a compelling value proposition because of its unique peptide formulation fast onset long duration and ability to enhance the skins. The parents.

Mark J. Foley: To that end, we recently introduced new brand messaging for Daxify, which highlights the product's full range of benefits and ability to deliver an optimal overall aesthetic look. The new messaging, along with expanded sales tools and materials, was shared with our sales team at our national sales meeting in January and has been very well received. Based on feedback and in support of our new pricing strategy, we recently removed our no-advertised price policy, which was implemented in the introductory phase of our product launch.

Mark J. Foley: To that end, we recently introduced new brand messaging for <unk>, which highlights the product's full range of benefits and ability to deliver an optimal overall aesthetic look.

Mark J. Foley: The new messaging, along with expanded sales tools and materials with shared with our sales team at our National sales meeting in January and its been very well received.

Mark J. Foley: Based on feedback and in support of our new pricing strategy. We recently removed are no advertised price policy, which was implemented in introductory phase of our product launches.

Mark J. Foley: However, as we move to broaden our share and brand awareness, it is important that we empower practices to market and promote the Revance product portfolio. During the fourth quarter and into Q1, we also expanded and augmented our marketing tools, marketing materials, salesforce training, and customer education programs. We have and will continue to increase our visibility with customers and KOLs, the advisory boards, Congresses, podium presence, media events, and thought leadership. Further, in February, we executed one of several planned promotional programs, a patient coupon program, which has been very well received and aligns with our goal of driving greater practice and consumer experience with Daxify. Turning to our filler business, the RHA Collection continues to be vital to our aesthetics franchise and foundational to the long-term growth of DAXify.

Mark J. Foley: However, as we move to broaden our share and brand awareness. It is important that we empower practices to market and promote the <unk> product portfolio.

Mark J. Foley: During the fourth quarter and into Q1, we also expanded and augmented our marketing tools marketing materials, Salesforce training and customer education programs.

Mark J. Foley: Have and will continue to increase our visibility with customers and Kols the advisory boards Congresses podium presence media events and thought leadership.

Mark J. Foley: Further in February we executed one of several planned promotional programs Ah patient coupon program, which has been very well received and aligns with our goal of driving greater practice and consumer experience with <unk>.

Mark J. Foley: Turning to our filler business. The RH a collection continues to be vital to our aesthetics franchise and foundational to the long term growth at <unk>.

Mark J. Foley: Three years into launch, the RHA collection is still the fastest-growing HA filler in the U.S., sitting at about 10 percent market share, which was largely achieved independent of a neuromodulator. We believe RHA's success can be attributed to not only our strong execution, but more importantly, its leading innovation. RHA is designed to more closely resemble the natural hyaluronic acid found in the skin, which we believe distinguishes the collection from other competitive offerings.

Three years into launch the RH a collection is still the fastest growing solar in the U S sitting at about 10% market share, which was largely achieved independent of a neuromodulator.

Mark J. Foley: We believe our <unk> success can be attributed to not only our strong execution, but more importantly, it's leading innovation.

Mark J. Foley: <unk> is designed to more closely resemble the natural higher up hyaluronic acid found in the skin, which we believe distinguishes the collection from other competitive offerings.

Mark J. Foley: Further, the collection's range of utility continues to expand with new SKUs and indications, including RHA Redensity for lip lines, RHA-4 for cannula use, and more recently, RHA-3 for lip augmentation and lip fullness. The lips are the most frequently treated area for dermal fillers and the recently approved label expansion provides us with new opportunities to train on RHA's leading innovation in injection techniques. We look forward to launching the new lip indication in Q2. In 2023, we were pleased to deliver 20% year-over-year RHA revenue growth, despite softness in the U.S. filler market, and while we launched Daxify and worked through our strategy changes. As we move into 2024, we look forward to continuing to drive healthy growth across both Daxify and the RHA product line through a combination of new account activation and deeper penetration while also beginning to unlock portfolio synergies. Across Vaxify and RHA, we ended the year with over 7,000 aesthetic accounts, up from 5,000 one year ago.

Mark J. Foley: Further the collections range of utility continues to expand with new Skus and indications, including <unk> density for lip lines <unk> four for <unk> and more recently, our <unk> III for lip augmentation and lip fullness.

Mark J. Foley: So the most frequently treated area for dermal fillers and the recently approved label expansion provides us with new opportunities to train on <unk>, leading innovation and injection techniques.

Mark J. Foley: We look forward to launching the new lip indication in Q2.

Mark J. Foley: In 2023, we were pleased to deliver a 20% year over year, our revenue growth despite softness in the U S filler market and while we launched <unk> and worked through our strategy changes as.

Mark J. Foley: As we move into 2024, we look forward to continuing to drive healthy growth across both the <unk> and the <unk> product line.

Mark J. Foley: Combination of new account activation and deeper penetration, while also beginning to unlock portfolio synergies.

Mark J. Foley: <unk> and <unk> we.

Mark J. Foley: We ended the year with over 7000 aesthetic accounts up from 5001 year ago.

Speaker Change: Now, let me turn to our compelling opportunity in therapeutics with the approval of our cervical dystonia indication.

Mark J. Foley: Now, let me turn to our compelling opportunity in therapeutics with the approval of our cervical dystonia indication. Due to Doctify's unique and differentiated profile, we look forward to addressing the unmet needs of patients, physicians, and payers in this category. Based on a published study in the Journal of Neurology, 88% of CD patients experienced symptom reemergence between injections with symptom recurrence happening as early as week eight.

Speaker Change: <unk> unique and differentiated profile, we look forward to addressing the unmet needs of patients physicians and payers in this category.

Speaker Change: Based on our published study in the journal of Neurology, 88% of CD patients experienced symptom reemergence between injections with symptom with symptom recurrence happening as early as we gate.

Mark J. Foley: Since patients can't get re-injected until 12 weeks due to label and reimbursement restrictions, this can leave CD patients with significant treatment gaps when considering both the delayed onset of action and early wear off. Based on our clinical trial data and early preview experience, we believe that Daxify has the potential to provide patients with better symptom control along with a compelling safety profile. As toxins are the twelfth most costly medical benefit drug category, payers are also motivated to find alternatives that offer both clinical value and that can lower the cost of therapy.

Speaker Change: Since patients can't get re injected until 12 weeks due to label and reimbursement restrictions. This can leave CD patients with significant treatment gaps when considering both the delayed onset of action and early wear off.

Speaker Change: Based on our clinical trial data and early preview experience. We believe that <unk> has the potential to provide patients with better symptom control along with a compelling safety profile.

Speaker Change: As toxins are the 12, most costly medical benefit drug category payers are also motivate motivated to find alternatives that offer both clinical value and that can lower the cost of therapy.

Mark J. Foley: Based on Vaxify's clinical performance, file price, and the dosing used in our clinical trial, there's an opportunity for meaningful savings to payers, which we believe is why we've seen such strong commercial coverage at such an early stage in our launch. Taken all together, we believe Daxify's strong efficacy, long duration, and favorable safety profile coupled with its attractive pricing have the potential to disrupt the current CD treatment landscape, which has remained largely unchanged for 30 years. Following FDA approval in August 2023, we subsequently launched our CD preview program to leading clinicians in order to optimize treatment outcomes for patients and to ensure smooth practice integration. To date, we have treated more than 300 patients across approximately 30 practices, which is in line with our plan. As a majority of CD patients experience symptom breakthrough, most patients treated to date in the PREVIEW program are those who are uncontrolled on their current toxin.

Speaker Change: Based on <unk> clinical performance by oil price and the dosing used in our clinical trial. There is an opportunity for meaningful savings to payers, which we believe is why we've seen such strong commercial coverage at such an early stage of our launch.

Speaker Change: Taken altogether, we believe <unk> strong efficacy long duration and favorable safety profile, coupled with its attractive pricing have the potential to disrupt the current CD treatment landscape, which has remained largely unchanged for 30 years.

Speaker Change: Following FDA approval in August 2023, we subsequently launched our CD preview program to leading clinicians in order to optimize treatment outcomes for patients and to ensure smooth practice.

Speaker Change: Integration.

To date, we have treated more than 300 patients across approximately 30 practices, which is in line with our plan.

Speaker Change: As the majority of CD patients experienced symptom breakthrough most patients treated to date in the preview program are those who are uncontrolled on their current toxin.

Mark J. Foley: In switching these patients to Daxify, physicians have reported that they are using a wide range of doses in their effort to optimize treatment outcomes. In addition, Vaxify's safety profile continues to be encouraging, even in the presence of escalating doses. To date, approximately one-third of patients have completed their first treatment cycle and are now in their second treatment cycle. As a reminder, with a new toxin, physicians tend to start patients at the lower end of the dosing range before titrating them up over subsequent treatment cycles in order to find the optimal balance between symptom control and safety.

Speaker Change: And switching these patients <unk> physicians have reported that they are using a wide range of doses and their effort to optimize treatment outcome.

Speaker Change: In addition, sacrifice safety profile continues to be encouraging even in the presence of escalating doses.

Speaker Change: To date approximately one third of patients have completed their first treatment cycle and are now in their second treatment cycle.

Speaker Change: As a reminder, with the new toxin physicians tend to start patients at the lower end of the dosing range before titrating them up over subsequent treatment cycles in order to find the optimal balance between symptom control and safety.

Mark J. Foley: Despite being early in the dose optimization journey, when surveyed, 94% of preview physicians who have been in the program since its inception indicated that they perceived Daxify to last longer than other toxins based on their first treatment cycle. In summary, we've been very encouraged to see real-world clinical results, including safety, efficacy, and duration, in line with those seen in our Aspen Clinical Program. We remain on track to initiate a targeted commercial launch midyear having received our permanent J code in early January. Importantly, we've also made significant process progress on the payer front, already securing 25 of the top 30 plans, covering over 50% of commercial lives. This impressive achievement reflects not only the team's ability to execute, but also DAXify's differentiated clinical profile and attractive economic profile for payers. Also, we recently operationalized our patient reimbursement support services to minimize potential hurdles to adoption. In addition, we have launched our patient affordability program to ensure out-of-pocket costs do not impede access to therapy.

Speaker Change: Despite being early in the dose optimization journey when surveyed 94% of preview physicians, who have been in the program since its inception indicated that they perceived <unk> to last longer than other toxins based on their first treatment cycle.

Speaker Change: In summary, we've been very encouraged to see real world clinical results, including safety efficacy and duration in line with those seen in our Aspen clinical program.

Speaker Change: We remain on track to initiate a targeted commercial launch mid year, having received a permanent J code in early January.

Speaker Change: Importantly, we've also made significant process progress on the payer front already securing 25 of the top 30 plans covering over 50% of commercial lives.

Speaker Change: This impressive achievement reflects not only the team's ability to execute but also <unk> differentiated clinical profile and attractive economic profile for payers.

Speaker Change: Also we recently operationalized, our patient reimbursement support services to minimize potential hurdles to adoption.

Speaker Change: In addition, we have launched our patient affordability program to ensure out of pocket costs do not impede access to therapy.

Speaker Change: On the commercial infrastructure side, our therapeutics team will include about 40 people across sales medical affairs market access and reimbursement. We believe we have the appropriate resources to target the concentrated CD physician population, where 70% of patients are treated by the top 20% of physicians or about one.

Mark J. Foley: On the commercial infrastructure side, our therapeutics team will include about 40 people across sales, medical affairs, market access, and reimbursement. We believe we have the appropriate resources to target the concentrated CD physician population where 70% of patients are treated by the top 20% of physicians or about 1,000 injectors. As announced earlier today, the Therapeutics Commercial Organization will be led by Dr. David Hollander, our Chief Medical Officer, who has taken on the expanded role of Global Therapeutics Franchise Lead, reporting directly to me. I'm confident that David's deep experience in all stages of the product life cycle, in addition to building strong teams, will add significant value to our therapeutics franchise. As Preview continues to advance, we look forward to presenting two posters and abstracts on our Aspen program at the American Academy of Neurology in April.

Speaker Change: <unk> thousand injectors.

Speaker Change: As announced earlier today, the therapeutics commercial organization will be led by Dr. David Hollander, Our Chief Medical Officer, who has taken on the expanded role of global Therapeutics franchise lead reporting directly to me.

Im confident that David's deep experience in all stages of the product lifecycle. In addition to building strong teams will add significant value to our therapeutics franchise.

Speaker Change: As previewed continues to advance we look forward to presenting two posters and abstracts on our Aspen program at the American Academy of Neurology in April.

Tobin C. Schilke: With that, I'll turn the call over to Toby to cover our fourth quarter and full year financials and our 2024 financial guidance. Thank you, Mark. The press release and the 10K we issued today details our financial results in full, so I will only go over the highlights on this call. Total revenue for the fourth quarter and full year 2023 were $69.8 million and $234 million up 40% and 77% respectively from the same periods last year. Total revenue for the fourth quarter included $58.5 million of product revenue, $2.3 million of service revenue, and $9 million of collaboration revenue. On the product side for Daxify, we delivered $24 million in sales in Q4 and $84 million in sales in our first full year of launch in 2023. For the RHA collection, fourth quarter and full year 2023 revenue were $34.5 million and $128.6 million. Sales were up 20% for the full year, driven by deeper and broader account penetration.

Speaker Change: With that I'll turn the call over to Toby to cover our fourth quarter and full year financials, and our 2024 financial guidance.

Tobin C. Schilke: Thank you Mark the press release and the 10-K, we issued today details of our financial results in full so.

Tobin C. Schilke: I will only go over the highlights on this call.

Tobin C. Schilke: Total revenue for the fourth quarter and full year, 2023 were $69 $8 million and $234 million up 40% and 77% respectively from the same periods last year total revenue for the fourth quarter included $58 $5 million of product revenue.

Tobin C. Schilke: $2 $3 million of service revenue and $9 million of collaboration revenue.

On the product side for <unk>, we delivered $24 million in sales in Q4 and $84 million in sales in our first full year of launch in 2023.

Tobin C. Schilke: For the IHA collection fourth quarter and full year 2023 revenue were $34 $5 million and $128 6 million sales were up 20% for the full year driven by deeper and broader account penetration.

Tobin C. Schilke: Quarterly sales were down 1% year over year, primarily due to higher than normal RHA sales recorded in Q4 of 2022. This dynamic resulted from both the introduction of the RHA Redensity SKU and the launch of DAXify, where early access to DAXify was prioritized among accounts that have ordered RHA. Regarding Opal, our services business, substantially all payment processing was stopped as of January 31st, 2024, and we are on track to complete the wind down of the business by the end of Q1, providing cost savings of approximately $20 million this year. We recognize $9 million of collaboration revenue in Q4 related to our Biosimilar to Botox program with VHF. The revenue is reflective of the progress made in our collaboration effort. Note that since the inception of the program, we have received a total of $60 million from upfront and milestone payments, which have been shown as deferred revenue on our balance sheet. The revenue was recognized primarily from the Deferred Revenue Ballot.

Tobin C. Schilke: Quarterly sales were down 1% year over year, primarily due to higher than normal <unk> sales recorded in Q4 of 2022.

Tobin C. Schilke: This dynamic resulted from both the introduction of the <unk> density SKU and the launch of <unk>. We're early access to <unk> was prioritized among accounts that have ordered <unk>.

Tobin C. Schilke: Hey.

Tobin C. Schilke: Regarding opal our services business substantially all payment processing was stopped as of January 31, 2024, and we are on track to complete the wind down of the business by the end of Q1, providing cost savings of approximately $20 million this year.

Tobin C. Schilke: We recognized $9 million of collaboration revenue in Q4 related to our Biosimilar to Botox program with <unk> the.

Tobin C. Schilke: The revenue is reflective of the progress made in our collaboration effort.

Tobin C. Schilke: Note that since the inception of the program. We have received a total of $60 million from upfront and milestone payments, which have been shown as deferred revenue on our balance sheet. The.

Tobin C. Schilke: The revenue was recognized primarily from the deferred revenue balance.

Tobin C. Schilke: Turning to OPEX, we are pleased to see our 2023 GAAP and non-GAAP operating expenses of $550.8 million and $319 million come in on the low end of our previously announced guidance, underscoring our continued efforts of disciplined capital allocation and cost control. Further, we continue to see operating leverage within our business. Full year 2023 non-GAAP operating expenses increased 19% from 2022, while total product revenue increased by 80% during the same period. On the balance sheet side, our current cash position, operating plan, and anticipated revenues provide us with multiple levers to appropriately fund our commercial growth while maintaining our path to break even positive adjusted EBITDA in 2025. Finally, Revance's shares of Common Stock Outstanding as of February 16, 2024, were approximately 88.2 million, with 97.7 million fully diluted shares, excluding the impact of convertible debt.

Tobin C. Schilke: Turning to Opex, we are pleased to see our 2023, GAAP and non-GAAP operating expenses of $558 million and $319 million come in on the low end of our previously announced guidance underscoring our continued efforts of dish.

Tobin C. Schilke: <unk> capital allocation and cost controls.

Tobin C. Schilke: Further we continue to see operating leverage within our business full year 2023, non-GAAP operating expenses increased 19% from 2022, while total product revenue increased by 80% during the same period.

Tobin C. Schilke: On the balance sheet side, our current cash position operating plan and anticipated revenues provide us with multiple levers to appropriately fund our commercial growth, while maintaining our path to breakeven and positive adjusted EBITDA in 2025.

Tobin C. Schilke: Finally, <unk> shares of common stock outstanding as of February 16th 2024, or approximately $88 2 million with 97 7 million fully diluted shares excluding the impact of convertible debt.

Tobin C. Schilke: Before I turn the call back to Mark, I'd like to review our 2024 revenue and OPEX guidance in greater detail. We recently provided our product revenue guidance, which includes sales of Daxify and RHA of at least $280 million for 2024. Our guidance assumes continued market share growth for the RHA collection and Daxify aesthetics, and modest revenue contribution for the launch of Daxify for cervical dystonia. Further, our guidance takes into consideration normal seasonality. As a reminder, the U.S. facial injectables market experiences traditional seasonality where Q1 and Q3 are typically slower periods during the year compared to Q2 and Q4. Turning to our OPEX guidance, we expect our 2024 GAAP OPEX to be between $460 million to $490 million, and our non-GAAP OPEX to be between $290 to $310 million.

Speaker Change: Before I turn the call back to Mark I would like to review, our 2020 for revenue and Opex guidance in greater detail.

Speaker Change: We recently provided our product revenue guidance, which includes sales of <unk> and <unk> of at least $280 million for 2024, our guidance assumes continued market share growth for the <unk> collection, and <unk> Fedex and modest revenue contribution for the launch.

Speaker Change: <unk> of <unk> <unk> five for cervical dystonia.

Speaker Change: Further our guidance takes into consideration normal seasonality as a reminder, the U S facial injectables market experiences traditional seasonality, where Q1 and Q3 are typically slower periods during the year compared to Q2 and Q4.

Speaker Change: Turning to our Opex guidance, we expect our 2024, GAAP opex to be between $460 million to $490 million and our non-GAAP opex to be between $290 million to $310 million.

Tobin C. Schilke: You will note that we are aiming to deliver increased year-over-year product revenue growth while at the same time decreasing our operating expense level. The midpoint of our 2024 non-GAAP operating expense guidance represents a 6% reduction from last year, driven primarily by the divestiture of our OPALS payments business, in addition to organizational streamlining and operational efficiency. Further, we expect our non-GAAP SG&A expenses to be between $240 to $255 million.

Speaker Change: You will note that we are aiming to deliver increased year over year product revenue growth while at the same time decreasing our operating expense levels.

Speaker Change: Midpoint of our 2024 non-GAAP operating expense guidance represents a 6% reduction from last year, driven primarily by the divestiture of our <unk> payments business. In addition to organizational streamlining and operational efficiencies.

Speaker Change: Further we expect our non-GAAP SG&A expenses to be between $240 million to $255 million.

Mark J. Foley: And with that, I'll turn the call back over to Mark. Thank you, Toby. Before we conclude, I'd like to review our strategic priorities for 2024. First and foremost, we will focus on delivering at least 32% growth on the top line while effectively managing spend to reach, Positive Adjusted EBITDA in 2025. To reach this goal, we plan to execute on our commercial objectives for DAXify and RHA, launch DAXify for CD mid-year, and maintain our disciplined capital allocation while continuing to drive operational efficiency. The proof points of our commercial strategy continue to provide us confidence in the trajectory of DAXify and RHA. For Daxify in particular, the ongoing positive trends in adoption and improving customer sentiment reinforces our belief and our blockbuster potential in the U.S. aesthetics market. Further, we are on a path to realizing our future growth opportunities in therapeutics, the international expansion of DAXify, and strategic partnerships with FOSUN and Viatris. Combined, these represent access to a $5 billion market opportunity outside of the $4.2 billion U.S. facial injectables market. With that, I will now open the call up for questions. Operator?

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

Mark J. Foley: Thank you Toby before we conclude I would like to review our strategic priorities for 2024 <unk>.

Mark J. Foley: First and foremost we will focus on delivering at least 32% growth on the topline while effectively managing spend to reach <unk>.

Positive adjusted EBITDA in 2025.

Mark J. Foley: To reach this goal we plan to execute on our commercial objectives for <unk> are launched.

Mark J. Foley: <unk> <unk> five per CD mid year, and maintain our disciplined capital allocation, while continuing to drive operational efficiencies.

Mark J. Foley: The proof points of our commercial strategy continue to provide us confidence in the trajectory of <unk> and <unk>.

Mark J. Foley: <unk> in particular, the ongoing positive trends in adoption and improving customer sentiment reinforces our belief in our blockbuster potential in the U S aesthetics market.

Mark J. Foley: Further we are on a path to realizing our future growth opportunities and therapeutics, the international expansion of <unk> and strategic partnerships with Fosun and VHS.

Mark J. Foley: Combined these represent access to a $5 billion market opportunity outside of the $4 $2 billion U S facial injectables market with that I will now open the call up for questions operator.

Operator: Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad now. If you change your mind and would like to remove your question, please press star followed by 2. When preparing to ask your question, please ensure that your phone is unmuted.

Speaker Change: Thank you if you would like to ask a question. Please press star followed by one on your telephone keypad now.

Speaker Change: If you change your mind I would like to remove your question. Please press star followed by two men preparing to ask your questions. Please ensure that youll phone is on mute locally.

Speaker Change: And our first question today is from the line of David <unk> of Sandler David Your line is now.

Speaker Change: Thanks.

David Hollander: A couple so first wanted to drill down more on the top line guidance and.

David A. Amsellem: And our first question today is from the line of David Amsellem of Piper Sandler. David, your line. Thanks, just have a couple.

Speaker Change: I guess I'll just add.

David Hollander: I ask it plainly.

David A. Amsellem: So first wanted to drill down more on the top line guidance, and I guess I'll just ask it plainly. How realistic do you think the implied assumptions regarding DAXIFI are for 24? There's clearly expectation here that there's going to be aggressive expansion of the sales footprint. I just wanted to get your thoughts on what gives you that level of confidence. Is it a greater footprint among significantly greater footprint among newer accounts? Is it deeper penetration within existing accounts? How are you thinking about that mix and just your overall level of confidence? That's number one.

David Hollander: How realistic do you think.

David Hollander: The implied assumptions regarding the exercise.

David Hollander: Our.

David Hollander: For 2004.

David Hollander: There is clearly.

David Hollander: Expectation here that theres going to be aggressive.

David Hollander: Expansion of the sales footprint I just wanted to get your thoughts on what gives you that level of confidence is it.

David Hollander: A greater.

David Hollander: Footprint among <unk>.

David Hollander: Significantly greater footprint among newer accounts.

David Hollander: Is it deeper penetration within existing accounts, how are you thinking about that mix and just your overall level of confidence that's number one and then secondly on on the sellers.

Mark J. Foley: And then secondly, on the fillers and RHA, it's more of a long term question, but how are you thinking about competitive dynamics with Avaliss looking to enter the market? Less about this here and more about the long term dynamics in the context of a potentially more crowded space. Thank you. Yeah, thanks, David. This is Mark.

David Hollander: Alright.

Speaker Change: More of a long term question, but how are you thinking about competitive dynamics.

Speaker Change: Nevertheless, looking to enter the market.

Speaker Change: Less about this year and more about the long term dynamics in the context of a potentially more crowded space. Thank you.

Speaker Change: Yeah. Thanks, David This is mark.

Mark J. Foley: You know, in the top line growth, we obviously feel very good about the $280 million guidance that we put out there for top line. As we stated on our, you know, JP Morgan pre announcement that, you know, we'd expect a little more of that to come from RHA and a little bit less to come from DAXify. And so we feel very good.

On the top line growth, we obviously feel very good about the $280 million guidance guidance that we put out there for top line.

Mark J. Foley: As we stated on our Jpmorgan pre announcement that we would expect a little more of that to come from our <unk> and a little bit less to come from <unk>.

Mark J. Foley: And so we feel very good I mean, if you look at where we are in our launch.

Mark J. Foley: I mean, if you look at where we are in our launch, you know, last year, the back half where we made some of the strategy changes in the pivots, you know, we didn't see the normal launch trajectory because we were doubling back to those existing accounts to cement the relationship and, you know, try and address kind of what their concerns and issues were. As we saw going into Q4, we were getting really good feedback from accounts that the pricing change removed an important barrier to adoption. And, you know, with the way that we've leaned in, and, you know, are prioritizing some of the other engagement strategies, you know, we feel very good about the way that that is going. You know, we have stated that we would expect to see normal seasonality in this business, but our growth will come from a combination of new account ads, along with ongoing reorders. And as we noted in Q4, you know, more than two thirds of our revenue came from reordering accounts, which I think points to the stickiness of the product in those accounts where we're able to secure. So we feel very good about where we are. And again, particularly with how early we are in the DAXify side.

Last year, the back half, where we made some of the strategy changes in the pivots.

Mark J. Foley: See the normal launch trajectory, because we were doubling back to those existing accounts to cement the relationship and try and address kind of what their concerns and issues were.

As we saw going into Q4, we were getting really good feedback from accounts that the pricing change removed an important barrier to adoption.

Mark J. Foley: With the way that we've leaned in.

Mark J. Foley: And are prioritizing some of the other engagement strategies.

Mark J. Foley: We feel very good about the way that that is going we have stated that we would expect to see normal seasonality in this business, but our growth will come from a combination of new account adds along with ongoing reorders and as we noted in Q4 more than two thirds of our revenue came from reordering accounts, which I think points to the stick.

Mark J. Foley: <unk> of the product in those accounts, where we're able to secure so we feel very good about where we are and again, particularly with how early we are in the <unk> side I would also note that we mentioned that we're in about 3000 <unk> accounts at the end of the year and we have an account base of 7000 account. So even before we go outside of our <unk>.

Mark J. Foley: I would also note that we mentioned that we're in about 3000 DAXify accounts at the end of the year, and we have an account base of 7000 accounts. So even before we go outside of our existing account base, we have a number of accounts that we've got relationships with that we can broaden. And there will be opportunity for bundling and cross selling to as we move forward. On the filler dynamic side, you know, the nice thing about the Teoxane partnership is that, you know, we were able to bring into market the sort of the latest innovation in filler technology, but one that has, you know, years and years of experience.

Mark J. Foley: <unk> account base, we have a number of accounts that we've got relationships with that we can broaden and there will be opportunity for bundling and cross selling to as we move forward on.

Mark J. Foley: On the filler dynamics side, the nice thing about the <unk> partnership is that we were able to bring into market the sort of the.

Mark J. Foley: The latest innovation in filler technology, but one that has years and years of experience and so we feel very good about if you look at how our HCA and <unk> has performed internationally in a very competitive market, how they've been able to continue to take share and to grow it.

Mark J. Foley: And so, you know, we feel very good about if you look at how our RHA and Teoxane has performed internationally in a very competitive market, how they've been able to continue to take share and to grow it. And, you know, with our expanded portfolio of different RHA filler lines and the expanded indications, we feel very good about how we're positioned in the market. You know, also given where we are in our journey, we have plenty of opportunity to continue to grow our share. And we've been the, you know, fastest growing share taker over the last three years. And we feel very good about the technology and where we're positioned in the market. Helpful.

Mark J. Foley: And with our expanded portfolio of.

Mark J. Foley: A different RH ha filler lines and the expanded indications we feel very good about how we're positioned in the market.

Mark J. Foley: Also given where we are in our journey, we have plenty of opportunity to continue to grow our share and we've been the fastest growing share taker over the last three years and we feel very good about the technology and where we're positioned in the market.

Speaker Change: Okay helpful. Thank you.

David A. Amsellem: Thank you. Our next question today is from the line. Stacy, your line is... Thanks so much for taking our questions. We did have a few.

Speaker Change: Thanks.

Speaker Change: Our next question today is from the line of Stacy <unk> of TD Cowen.

Speaker Change: Stacy your line is nowhere, but if you'd like to proceed.

Thanks, so much for taking our questions. We did have a few so.

Stacy Ku: So just first. Bradley, for Q2, a little bit of a follow up on the last question. Do you have a sense, as you broaden out, what kind of clinicians or accounts you're hoping to target? Are they going to be the RHA existing accounts? Just characterize your plans a bit more. And I'm curious if you expect the Salesforce will have the ability to go beyond 500 accounts, roughly, per quarter. So, just curious if you're targeting the same amount of training that you've kind of focused on recently. And I have a follow up. Sure, Stacy.

Speaker Change: First.

Stacy: And finally for Q2, a little bit of a follow up on the last question give a sense as you broaden out what kind of clinicians or accounts youre, hoping to target are they going to be the RSA existing accounts just characterize your plan to put more and I'm curious if you expect the sales force will have the ability to go beyond 500 accounts roughly prequel.

Stacy: So targeting.

Targeting the same amount of training that youth is kind of focused on recently and I have a follow up.

Speaker Change: Sure Stacy so on the number of accounts as we kind of look at Q2, and where we're going to go we frankly give a lot of latitude to the sales managers and the sales reps. Obviously the market continues to grow and expand and there is a wide range of different providers.

Mark J. Foley: So on the, you know, the number of accounts as we kind of look at Q2 and where we're going to go, you know, we frankly give a lot of latitude to the sales managers and the sales reps. Obviously, the market continues to grow and expand, and there's a wide range of different providers. Obviously, those that we have a relationship are a natural starting point for us because we know the accounts and they know us. And so we would expect that that would be the initial priority. But having said that, we also know from the RHA launch, there were a number of accounts that were certainly intrigued by Daxify, but for whatever reason, weren't willing to engage with RHA at the time. And, you know, we think that that's going to be a great entry point for us, for some of these accounts that are excited to offer, you know, Daxify and the, you know, innovation that it offers in the market. So I think it'll be a mix, and I think you'll see some variability across geographies.

Speaker Change: Obviously, those that we have a relationship or a natural starting point for us because we know the accounts and they know us and so we would expect that that would be the initial priority, but having said that we also know from the <unk> launch there were a number of accounts that were certainly intrigued by <unk>, but for whatever reason weren't willing to engage with <unk> at the time.

Speaker Change: And we think that that's going to be a great entry point for us for some of these accounts that are excited to offer <unk> and the innovation that is that it offers in the market. So I think it'll be it'll be a mix and I think you'll see some variability across geographies. As you know we started more with kind of a prestige strategy that which really tailored and targeted.

Mark J. Foley: You know, as you know, we started more with kind of a prestige strategy that was really tailored and targeted to the top third of accounts. But I think now that we've adjusted our pricing to be more in line, it's, if anything, it's opened up a broader aperture and a broader account opportunity for us. So, you know, it's really about qualifying those accounts that are willing to lean in with us, that see the value, that are going to, you know, promote and support the product. And again, given sort of the number of accounts that we still have to go, we feel good about it. In terms of the sales force and the training and the number of accounts, again, I think that, you know, if you look back, we never had to target, for example, with the RHA filler line to open up 500 new accounts per quarter. It just turned out that was sort of what the field force could digest between continuing to support existing accounts and try and go deeper, along with opening up new accounts.

Speaker Change: The top third of accounts, but I think now that we've <unk>.

Speaker Change: Adjusted our pricing to be more in line if anything it's opened up a broader aperture and a broader account opportunity for us. So it's really about qualifying those accounts that are willing to lean in with us that see the value that are going to.

Speaker Change: Promote and support the product and again given sort of the number of accounts that we still have to go.

Speaker Change: So good about it in terms of the sales force and the training and the number of accounts again I think that if you look back we never had to target for example, with RH a filler line to open up 500, new accounts per quarter. It just turned out that was sort of what the field force could digest between continuing to support existing accounts and try and go deeper.

Speaker Change: Along with opening up new accounts and then obviously, we believe very strongly in medical education, and training and given the profile of our products and sort of the innovative innovation that underlines them. We believe that the best way to for people to get the full value is through training and education. So that will be an important part of it and so I think it really hard.

Mark J. Foley: And then obviously, we believe very strongly in medical education and training. And given the profile of our products and sort of the innovation that underlines them, you know, we believe that the best way for people to get the full value is through training and education. So that will be an important part of it. And so it's, I think, really hard right now to say for sure exactly what that account ramp is going to look like, partly because we have existing relationships, too, that we're going to go into. But, you know, when we've done the roll-up and put together our plan, we feel very good about the guidance that we've put out there. Understood.

Speaker Change: Right now to say for sure exactly what that account ramp is going to look like partly because we have existing relationships to that we're going to go into but when we've done the roll up and put together our plan we feel very good about the guidance that we put out there.

Speaker Change: Understood and then just briefly on kind of the ongoing relationship repair with these accounts are you willing to discuss in more detail, what's working where we see these accounts are increasing order, especially as maybe that rusty.

Mark J. Foley: And then just briefly on kind of the ongoing relationship repair with these accounts, are you willing to discuss in more detail what's working where we see these accounts are increasing orders versus maybe that roughly one third or so of accounts where there's a little bit more reticence? So just trying to understand where we are and if we're seeing any early signals and kind of the repair overall. Thank you. Thanks. Yeah, I mean, we like the signals and the signs that we're seeing.

Speaker Change: Roughly one third or so of accounts, where there's a little bit more reticence to just trying to understand where we are foreseeing any early signals.

Speaker Change: The repair overall thank you.

Speaker Change: Yes, I mean, we like the signals and the signs that we're seeing again, we've talked about the percentage of revenue in Q4 that came from reordering accounts, which we think is a good indicator for people leaning in seeing the value in the strategy appreciating the adjustment in pricing and frankly appreciating that were listening in making actionable.

Mark J. Foley: Again, we've talked about the percentage of revenue in Q4 that came from reordering accounts, which we think is a good indicator for people leaning in, seeing the value in the strategy, appreciating the adjustment in price, and frankly, appreciating that we're listening and making actionable changes to it. And so it's early. We'll continue to provide metrics and data that we think are representative of trends, not just points in time. And so as we move forward, we'll continue to share things that we think are helpful, but again, reflect what we're seeing. But, you know, we're encouraged by what we continue to see as we've moved into the new year. Okay, very helpful. Thank you. Unknown Speaker Thank you.

Speaker Change: Changes to it and so.

Speaker Change: It's early we will continue to provide metrics and data that we think are representative of trends not just point in time and so as we move forward. We will continue to share things that we think are helpful. But again reflect what we're seeing but we were encouraged by what we continue to see as we've moved into the new year.

Speaker Change: Okay very helpful. Thank you.

Speaker Change: Thank you.

Balaji V. Prasad: Our next question today is from the line of Balaji Prasad of Barclays. Please go ahead. Balaji Prasad from Barclays, your line is now open if you'd like to proceed with your question. I'm afraid we're getting no audio from Balaji's line, so I'm afraid we'll have to move on. Unknown Speaker. Chris Shibutani.

Barclays: Our next question today is from the line of a larger percent of Barclays. Please go ahead. Your line is open.

Larger percent: Larger percent from Barclays. Your line is now open if you'd like to proceed with your question.

Barclays: From a freight with casino audio from the largest lines. So maybe we'll have to move on to.

Krish Kutani: Krish kutani from Goldman Sachs.

Chris Shibutani: I'm Brett Honeroy from Goldman Sachs. Chris, your line will be open now. Hi, good afternoon. Krishma on for Chris Shibutani.

Krish Kutani: Chris showed ought to be up to now if you would like to proceed.

Krish Kutani: Hi, Good afternoon, Chris Schmidt on for Chris Jakubik, Tony. Thank you for taking my question I was wondering if you could help us frame the discussion around cervical dystonia, how should we think about the positioning of the product in regards to payers and the impact of the permanent J code on the ramp of revenue generation and the adoption curve. Thank you.

Krishma: Thank you for taking our question. I was wondering if you could help us frame the discussion around cervical dystonia. How should we think about the positioning of the product in regards to payers and the impact of the permanent J code on the ramp of revenue generation and the adoption curve? Thank you. Sure, well, in the cervical dystonia market, you know, in the US, it's about a $340 million market. You know, most of these patients are existing patients. So a lot of the patients that we have seen in our preview program and that we expect to convert over to Daxify are going to be switch patients. What's interesting for cervical dystonia, there's no cure.

Speaker Change: Sure well on the cervical dystonia market in the U S.

Speaker Change: It's about a $340 million market.

Speaker Change: Most of these patients are existing patients. So a lot of the patients that we have seen in our preview program and that we expect to convert over to Dax, if I were going to be switch patients. What's interesting for cervical dystonia. There is no cure and so it's really a management of the symptoms and toxins are really the frontline therapy to manage it interestingly.

Mark J. Foley: And so it's really a management of the symptoms. And toxins are really the frontline therapy to manage it. Interestingly, as we pointed out in our prepared remarks, is that over 80% of these patients see symptom reemergence before they can get re-injected prior to week 12. And so given the data that we generated in our Aspen clinical program, you know, our ability to potentially give them, you know, many more symptom-free days, both from an early onset of action, along with a good duration profile has been incredibly well received by both clinicians and payers. And so we're trying to go forward in a measured way, because, you know, within the neurology community, they tend to be conservative.

Speaker Change: As we pointed out in our prepared remarks is that over 80% of these patients see symptom reemergence before they can get re injected prior to week 12, and so given the data that we generated in our Aspen clinical program.

Speaker Change: Our ability to potentially give them.

Speaker Change: Many more symptom free days both.

Speaker Change: An early onset of action along with good duration profile has been incredibly well received by both clinicians and payers and so we're trying to go forward in a measured way because within the neurology community. They tend to be conservative we're going to start low on the dosing and then theyre going to dose them up over time.

Mark J. Foley: They're going to start low on the dosing, and then they're going to dose them up over time. But as we mentioned in our prepared remarks, that, you know, when asked, when asking our preview physicians what they thought of the duration profile, their perception of duration profile of Daxify, you know, 94% of them felt that it was longer lasting. And so we have an opportunity to be the first really truly novel therapy in CD in over 30 years. On the payer side, what makes that interesting for payers is that based on the dosing ranges that we saw in our cervical dystonia clinical program is that we were seeing more one-to-one dosing with other toxins. And based on the current vial price that we have, when you do one-to-one dosing, you know, there's a material discount for these payers. And so the payers are looking at this saying, wow, this is a product that can deliver results that are similar to or better than conventional toxins, and there's that type of price break.

Speaker Change: But as we mentioned in our prepared remarks that when asked.

Speaker Change: When asking our preview physicians, what they thought of the duration profile of their perception of duration profile of <unk> <unk>.

Speaker Change: 84% of them felt that it was longer lasting and.

Speaker Change: And so we have an opportunity to be the first really truly novel therapy in CD and over 30 years on the payer side what makes it interesting for payers is that based on the dosing ranges that we saw in our cervical dystonia cervical dystonia clinical program is that we are seeing more one to one dosing with other toxins and based on the current vial price that we have.

Speaker Change: When you do one to one dosing.

Speaker Change: There is a material discount for.

Speaker Change: These payers and so the payers are looking at this saying Wow. This is a product that can deliver results that are similar to or better than conventional toxins. In there is that there is that type of price break we love It which is why we think we've seen such robust.

Mark J. Foley: We love it, which is why we think we've seen such robust adoption in the commercialized coverage. So we're already over 50% coverage on commercialized before we even get started into the launch side of it. You know, we do want to be measured because we know as we move into the full launch, what's going to regulate this is the way that physicians treat these patients, which is they will start low. These are switch patients. They'll monitor them through their first 12-week cycle, and then if the symptoms are managed, they won't go up any further.

Speaker Change: Adoption in the commercial lives covered so we're already over 50% coverage on commercial lives before we even get started into the launch side of it.

Speaker Change: We don't want to be measured because we know as we move into the full launch whats going to regulate this is the way that physicians treat these patients which is they will start low these are switch patients.

Speaker Change: Monitor them through their first 12 week cycle and then if the symptoms are managed.

Speaker Change: Go up any further if not we'll continue to up the dose.

Mark J. Foley: If not, they'll continue to up the dose. And so we just want to give time for that learning process to take place over multiple cycles. But we think that this is, you know, really an encouraging gateway for us into the broader therapeutics market, and we really like where we're positioned. Thank you, that was really helpful.

Speaker Change: And so we just want to give time for that learning process to take place over multiple cycles, but we think that this is.

Speaker Change: Really an encouraging gateway for us into the broader therapeutics market and we really like where we're positioned.

Speaker Change: Thank you that was really helpful.

Speaker Change: Thank you.

Krishma: Our next question today is from the line of Annabel Samimy of Stiefel. Annabel, your line is now open. Hi, this is Jack On for Annabel.

Speaker Change: Our next question today is from the line of I'm, sorry, Annabel <unk> of Stifel on <unk>. Your line is now open. Please go ahead.

Speaker Change: Hi, This is Jack on for Annabel, Thanks for taking our question.

Annabel Eva Samimy: Thanks for taking our question. So could you provide a little bit more color on how you're changing your communications with physicians, so that they're fully aware of your new price changes? Have you only really been circling back to the accounts that you have an existing relationship with?

Jack: So could you provide a little bit more color on how you are changing your communications with physicians. So that they are fully aware of your new price changes have you only really been circling back to the accounts that you have an existing relationship with or have you kind of broaden that message such that new accounts you kind of gave some increased brand awareness.

Mark J. Foley: Or have you kind of broadened that message such that new accounts can kind of gain some increased brand awareness? Yeah, so on the pricing change, given our focus on existing accounts, we've really allowed that to happen much more through the rep side of it, because again, our primary goal in these first two quarters were to solidify the foundation with many of these accounts that are existing customers on the RHA side, went through training, know how to inject the product, but you know, had feedback for us on how we could improve things. And in some cases, they've got product on the shelf that needs to be worked through before they turn into a reordering account.

Jack: Yes, so on the pricing changed given our focus on existing accounts, we've really allowed that to happen much more through the rep side of it because again our primary goal in these first two quarters were to solidify the foundation with many of these accounts that are existing customers on the <unk> side went through training knowhow to inject the product.

Jack: But had feedback for us on how we could improve things and in some cases, they've got product on the shelf that needs to be worked through before they turn into a reordering account and so rather than blast out the pricing to everybody. We thought it was best to allow those reps to go back in to Reengage to explain the rationale and work with these accounts on the different pull through.

Mark J. Foley: And so rather than blast out the pricing to everybody, we thought it was best to allow those reps to go back in to re-engage to explain the rationale and work with these accounts on the different pull through. As we start to move forward and go to more of a new account activation in Q2, you know, then we'll be much more forward leaning on the pricing. And it's not to say that we aren't open about the pricing, but given the strategy, it's been more driven at the rep level and their ability to get back into these accounts and re-engage.

Jack: As we start to move forward and go to more of a new account activation in Q2.

Jack: And then we will be much more forward leaning on the pricing and it's not to say that we aren't open about the pricing, but given the strategy. It's been more driven at the rep level and their ability to get back into these accounts and Reengage and then as we go forward, we'll be able to.

Mark J. Foley: And then as we go forward, we'll be able to, you know, more broadly disseminate that information. Great, thanks, www.thevenusproject.com, Our next question today is from the line of Alana Lalo of Guggenheim. Rana Jolanda, Hey there, thanks for taking the question. Just quick ones.

Jack: More broadly disseminate that information.

Speaker Change: Great. Thanks.

Speaker Change: Great.

Speaker Change: Our next question today is from the line of Elena <unk> of Guggenheim.

Speaker Change: Understood.

Elena: Hey, there thanks for taking my question.

Elena: Quick ones first one.

Mark J. Foley: First on regarding the patient coupon program, just wondering if you can provide any color and kind of what that looks like and any metrics that you can share so far on how that has driven increased patient interest in DAXI. And then with the removal of the no-advertise price policy, again, any impact you're seeing from that yet and any metrics that you can share from that angle? Sure, well, it's probably premature to share any metrics. I think it's something we can share in more detail on our Q1 earnings call, but the patient coupon is basically a $75 off for the consumer that was redeemable through the practice.

Elena: The patient Couponing program just wondering if you can provide any color on kind of what that looks like and any metrics that you can share. So far on how that has been increased interest in <unk> and then with the removal of the no advertised price policy.

Elena: Again, any impact you're seeing from that yet and any metrics that you can share from that angle.

Speaker Change: Sure well it's.

Speaker Change: Probably premature to say are any share any metrics I think it's something we can share in more detail on our Q1 earnings call, but the patient coupon is basically a $75 off or the consumer that was redeemable through the practice and so with purchases. The practice received a number of those coupons that they can use in all of this is designed.

Mark J. Foley: And so with purchases, the practice received a number of those coupons that they can use. And all this is designed to stimulate trial use and experience with our belief that the more injectors get comfortable with the product and the more that patients experience the look that there's gonna be a bias and a desire to continue to get retreated with Daxify. You know, and as we've said in the past, we're gonna continue to pilot a number of these different initiatives. You know, we've had different types of programs like this in the past, whether it's, you know, for people to qualify for, you know, one of our guru trainings or different influencer events or other types of programs. And so these are fairly common in the industry and we're gonna pilot a number of these, but we've been very pleased to see the receptivity of this, both at the account level and on the patient level. And it's having the desired effect of generating more trial usage and experience. In terms of the removal of NAP, our new advertised pricing policy, this has also been very well received. Obviously, in a B2B, B2C business, it's important that practices are able to drive awareness in a way that's linked to their practice.

Speaker Change: To stimulate trial use and experience with our belief that the more injectors get comfortable with the product and the more that patients experience. The look that theres going to be a bias and a desire to continue to get retreated with <unk>.

Speaker Change: And as we've said in the past we're going to continue to pilot a number of these different initiatives we have.

Speaker Change: Different types of programs like this in the past, whether it's for People's us to qualify for one of our Google trainings or different influencer events or other types of programs and so these are fairly common in the industry and we're going to pilot a number of these but we've been very pleased to see the receptivity of this.

Speaker Change: Both at the account level and on the patient level and it's having the desired effect of generating more trial usage and experience in terms of the removal of nap or new advertised pricing policy. This has also been very well received.

Speaker Change: Obviously in a b to B b to C business. It's important that practices are able to drive awareness in a way that's linked to their practice.

Mark J. Foley: And so by removing this, this allows practices to more actively promote sort of the range of Revance product lines across RHA and Daxify. And we, you know, gotten a lot of kudos from accounts who sort of felt like, geez, I want to do a better job of promoting this. I'm excited about the product. And I'd like to be able to tell more customers about it. If I'm limited in some cases to in office advertising only, then I feel I'm missing out on opportunities to drive more awareness.

Speaker Change: So by removing this this allows practices to more.

Speaker Change: We're actively promote sort of the range of revamped product lines across our <unk> and <unk>.

Speaker Change: And.

Speaker Change: We've gotten a lot of kudos from our accounts you sort of felt like these I want to do a better job of promoting this I'm excited about the product and I would like to be able to tell more customers about it if I'm limited in some cases to in office advertising. Only then I feel are missing out on opportunities to drive more awareness and so.

Mark J. Foley: And so, you know, again, it aligns with the pricing change that we've made. And we've been encouraged by what we're seeing so far there. Great, thank you so much. Our next question is from the line of Tim Lugo of William Blair. Hi team, this is John on for Tim. Thanks so much for taking our question. Just one from us.

Speaker Change: Again, it aligns with the pricing change that we've made.

Speaker Change: And we've been encouraged by what we're seeing so far there.

Speaker Change: Great. Thank you so much.

Speaker Change: Thank you.

Speaker Change: Our next question is from the line of Tim Lugo of William Blair. Tim Your line is now open.

Speaker Change: Hi team. This is John on for Ken. Thanks, So much for taking our question just one from US. So I was just wondering if the team could provide commentary on the comfort level with the current debt structure. Thanks.

Timothy Francis Lugo: So I was just wondering if the team could provide commentary on the comfort level with the current debt structure. Thanks. Sure. Toby, you want to hit that one?

Speaker Change: Sure Tobey you won't hit that one comfort level on the current debt structure, Oh, yeah, sorry about that I didn't hear the question yet.

Tobin C. Schilke: Comfort level on the current debt structure. Oh, yeah. Sorry about that. I didn't hear the question.

Tobin C. Schilke: Yeah. You know, I think when you take a look at what we've been trying to achieve over time and the operating leverage that we're generating through 2023, decisions we've taken to streamline our business with the reduction of OPL and kind of moving towards a profitability that we feel is in sight with the guidance we've given both from a top line perspective and the OPEX perspective of having EBITDA positive in 2025. I feel like that really unlocks a lot of options with sort of our capital staff. Clearly, we'll always take prudent measures to finance the business and manage our maturities.

Speaker Change: I think when you take a look at what we've been trying to achieve over time and the operating leverage that we are generating through.

Speaker Change: Through 2023 decisions, we've taken to streamline our business.

Speaker Change: With the reduction of Opal.

Speaker Change: And kind of moving towards a profitability that we feel is insight with the guidance. We've given both from a top line perspective, and the Opex perspective, having EBIT positive in 2025, you'll like that really unlocks a lot of options with sort of our capital stack.

Speaker Change: Clearly, we will always take prudent measures to finance the business and manage our maturities, but we feel like the first thing to do is prove out the business model continue the track record of success that we've had growing <unk> with a cost structure that we've outlined here and that will unlock continued operator opportunities.

Tobin C. Schilke: But we feel like the first thing to do is prove out the business model, continue the track record of success that we've had growing DAXify RHA with the cost structure that we've outlined here. And that will unlock continued opportunities through either organic or sort of other finance. Very helpful, thanks. Our next question today is from the line of Terence Flynn of Morgan Stanley. Terence, your line is open.

Speaker Change: Through either organic or sort of other financing alternatives.

Speaker Change: Very helpful. Thanks.

Speaker Change: Our next question today is from the line of Terence Flynn of Morgan Stanley's potential line is now open.

Speaker Change: Okay.

Terence C. Flynn: Great. Thanks for taking the question maybe a two part for me on <unk>.

Terence C. Flynn: Great. Thanks for taking the question. Maybe a two part for me on on DAXify.

Terence C. Flynn: I know earlier this year, you talked about, you know, one of the things you guys were working through was the, you know, trying to help practices with some of the prior inventory at a higher cost. And so just, you know, maybe talk us through where you are in that process. And then the second question is, I think during your prior remarks, Mark, you mentioned bundling, I think that's the first time we've heard about the potential to bundle DAXie and RHA. So just wondering, you know, is that something that's currently out there in the marketplace? Or is that something that's being contemplated?

Terence C. Flynn: I know earlier this year you had talked about one of the things you guys were working through was the trying to help practices with some of the prior inventory at a higher cost and so just maybe talk us through where you are in that process and then the second question is I think during your prior remarks, Mark you mentioned bundling I think thats. The first time we.

Terence C. Flynn: Heard about potential to bundle taxi and.

Terence C. Flynn: So just wondering.

Terence C. Flynn: Is that something Thats currently out there in the marketplace or is that something thats being contemplated and then how would that how would that work I guess effectively and how do you think about the impact of that on this year's revenues. Thank you.

Mark J. Foley: And then how would that how would that work, I guess, effectively? And how do you think about the impact of that on this year's revenues? Thank you. Sure.

Terence C. Flynn: Sure.

Mark J. Foley: So first in terms of, you know, working with those customers and, you know, some that had made perhaps product on the shelf at higher cost, you know, that's why, again, we focused these two quarters on going back to those existing accounts. I would say we're a good way through that, majority of the way through that, partly because, you know, the reps were incentivized to go and engage with those accounts, figure out how we can get them back on track and, you know, work with them to develop a strategy to remove some of the barriers and obstacles to getting back on board. So I feel we've made a really good, you know, really good progress there and that's why I think when we go into Q2, hopefully we've sort of worked our way through those accounts that were existing users, those that are going to get on board with us.

Terence C. Flynn: So first in terms of working with those customers and some that had made perhaps product on the shelf at higher cost.

Terence C. Flynn: Again, we focused on these two quarters on going back to those existing accounts I would say we are we're a good way through that majority of the way through that partly because the reps were incentivized to go and engage with those accounts figure out how we can get them back on track and work with them to develop a strategy.

Terence C. Flynn: To remove some of the barriers and obstacles to getting back on board. So I think we've made a really good.

Terence C. Flynn: Really good progress there and Thats why I think when we go into Q2, hopefully we'd sort of worked our way through those accounts that were existing users those that are going to get on board with US we've had an opportunity to re engage them and then we can start moving forward with a clean slate.

Mark J. Foley: We've had an opportunity to reengage them and then we can start moving forward sort of with a clean slate. On the bundling side of it, you know, both with RHA and with Daxify, we wanted those products to stand on their own. It doesn't help to try and put together bundling programs until people are sort of fully bought into both individual products. You know, we don't want, you know, the incentive for them to try a product is just, you know, because of discounting, we want them to buy into the product because they believe in the value and they see the value.

Terence C. Flynn: On the bundling side of it.

Terence C. Flynn: Both with <unk> and with <unk>, we wanted those products to stand on their own. It does it help to try and put together bundling programs until people are sort of fully bought into both individual products. We don't want the incentive for them to try our product is just because of the discounting we want them to buy into the products because they believe in the value and they see the value and then what we.

Mark J. Foley: And then what we can do is look to, you know, how do we create additional incentives for these accounts to go deeper and broader with us once they're embedded. So to your question, we really haven't done anything yet on the bundling side, but that is something that we do plan to kick off as we move throughout the year where there will be additional incentives for practices, whether it's, you know, different benefits that they get or pricing when we link the two together and they're willing to give us, you know, a greater share of their business in return for some additional value. And so we just want to make sure that we're establishing the products based on their own merit first and then can find ways to unlock that.

Terence C. Flynn: Can do is look to how do we create additional incentives for these accounts to go deeper and broader with us.

Terence C. Flynn: Once they're embedded so to your question, we really haven't done anything yet on the bundling side, but that is something that we do plan to kick off as we move throughout the year, where there will be additional incentives for practices, whether it's different benefits that they get or pricing.

Terence C. Flynn: When we linked the two together and they are willing to give us a greater share of their business in return for some additional value and so we just want to make sure that we're establishing the products based on their own Merit first and then can find ways to unlock that and we do think that that will be a source of.

Mark J. Foley: And we do think that that will be a source of. You know, future opportunity for us is we take those accounts that might be RHA accounts only or DAXify accounts only and figure out how we can create, you know, mutual line with those accounts to grow our share. Thank you. Our next question today is from the line of Navann Thai of BNP Paribas. Hi, everyone.

Terence C. Flynn: Future opportunity for us as we take those accounts that might be our HPA accounts, only or densify accounts only and figure out how we can create mutual align with those accounts to grow our share.

Speaker Change: Thank you. Our next question today is from the line of Nevada.

Speaker Change: BNP parallel your line to somebody please go ahead.

Speaker Change: Yes.

Speaker Change: Hi.

Navann Thai: Thanks for taking my question. A follow up to the previous one. Can could you clarify on what is left to do on the account re-engagement?

Nevada: Everyone. Thanks for taking my questions.

Nevada: Just wanted to ask Tom to the previous one Ken could you clarify on what is left to do.

Speaker Change: On the account re engagement.

Navann Thai: And maybe you can touch base on the priorities and if we would see any strategy tweaks with the new chief commercial officer and the global therapeutics franchise lead. Thank you. Sure.

Speaker Change: And maybe if you can touch base on the priorities and.

Speaker Change: We would see any strategy tweaks.

Speaker Change: With the new Chief commercial officer, and global Therapeutics franchise Lee. Thank you.

Speaker Change: Sure.

Mark J. Foley: So I think you were asking kind of where we are and kind of the re-engagement strategy. And so, you know, that's something we said is, you know, going to be a priority up and through the end of Q1 before we kick off sort of more traditional launch dynamics where new account activation will, you know, be an important part. Not that it isn't today, but it will take much more of a prominent role going forward. And so we're, you know, given where we are now at the end of February, we've made really good progress through that. And you'll see us, again, move to a more normal launch cadence as we get into Q2.

Speaker Change: So I think youre, asking kind of where we are in kind of the re engagement strategy and so that's something we said is going to be a priority up and through the end of Q1 before we kick off sort of more traditional launch dynamics, where new account activation will.

Speaker Change: Be an important part not that it is at today, but it will take much more of a prominent role going forward and so where we are.

Speaker Change: Given where we are now at the end of February we've made really good progress through that and Youll see us again move to a more normal launch cadences as we get into Q2.

Mark J. Foley: On the leadership side, you know, as we previously announced, we promoted Erika Jordan into the Chief Commercial Officer role over therapeutics. Erika joined the organization in sort of the spring of last year and was doing a lot of strategic workforce on the commercial side. So she has, you know, spent a lot of time with the organization, understanding its strategic priorities, work streams and stuff. And so we feel very fortunate to have her leading our aesthetic efforts. And she's doing a great job and, you know, has really been intimately involved with a lot of the streamlining efforts that we have made.

Speaker Change: On the leadership side as we previously announced we promoted Erika Jordan into the Chief commercial officer role over Therapeutics Erika joined the organization in the spring of last year and was doing a lot of strategic workforce on the commercial side. So she has spent a lot of time with the organization understand its.

Speaker Change: <unk> priorities work streams and stuff and so we feel very fortunate to have her leading our aesthetic efforts and she's doing a great job and has really been intimately involved with a lot of the streamlining efforts that we have made and we think her background is uniquely suited to help us get to where we need to go on the aesthetic side on the therapeutic side as.

Mark J. Foley: And we think her background is uniquely suited to help us get to where we need to go on the aesthetic side. On the therapeutic side, as we announced, we added the additional responsibility to Dr. David Hollander, our Chief Medical Officer of, you know, global franchise head for the therapeutics group. And I think given his background and experience being an MD, particularly within the neurology community, we think that, you know, not only does he have the gravitas from a leadership and skill set, but we think being an MD and with our targeted launch, he's going to really help ensure that we, physicians think the right way, that we're understanding the subtleties around, you know, how physicians are using it and how best to position ourselves for the future growth. And so, you know, David's always been close to the program, but more on the medical side.

Speaker Change: We announced we.

Speaker Change: Added the additional responsibility to David Dr. David Holland, Our Chief Medical Officer of Global franchise head for the Therapeutics group and I think given his background and experience being an MD, particularly with within the neurology community. We think that not only does he have the gravitas from a leadership and skill set.

Speaker Change: But we think being an M D and with our targeted launch he is going to really help ensure that we position thing the right way that we are understanding the subtleties around.

Speaker Change: How physicians are using it and how best to position ourselves for the future growth and so David has always been close to the program, but more on the medical side and now in sort of the leadership side, we feel.

Mark J. Foley: And now in sort of the leadership side, we feel, you know, really good to have him in that role. As we said, it's going to be a targeted launch. We'll start with about 40 commercial folks across sales, reimbursement, market access, and medical affairs. And, you know, we've got a lot of the leaders already in place in that functional area that David's already had a chance to work with.

Speaker Change: Really good to have him in that role because we said it's going to be a targeted launch will start with about 40 commercial folks across sales reimbursement and market access and medical affairs.

Speaker Change: And we've got a lot of the leaders already in place in that functional area that David has already had a chance to work with and so we.

Mark J. Foley: And so, we feel that we've got the right infrastructure in place to execute on our plan. And this is helpful. Thank you. Thank you. Our next question today is from the line of Serge Balanger of Needham & Company. Please go ahead, your line is open. Hi, good afternoon.

Speaker Change: We feel that we've got the right infrastructure in place to execute on our plan.

Speaker Change: This is helpful. Thank you.

Speaker Change: Thank you.

Speaker Change: Our next question today is from the line of Serge Belanger of Needham <unk> Company. Please go ahead. Your line is open.

Serge D. Belanger: Hi, good afternoon.

Serge D. Belanger: A couple of questions on the.

Serge D. Belanger: A couple questions on the upcoming DAXI launch in cervical dystonia. Looks like you've made some significant, Securing coverage, at least on the commercial side, maybe just talk about the nature of that coverage, how it compares to the other neurotoxins, whether it'll impede usage outside of cervical dystonia, and maybe just cover also your plans and timelines for Medicare coverage. Thanks. Sure. So on the coverage side of it, if you look at the, you know, the commercial category within CD, it's about, you know, 60% of the overall CD lives. We're over 50% already.

Serge D. Belanger: Upcoming taxi launched in cervical dystonia, it looks like you've made some significant.

Serge D. Belanger:

Serge D. Belanger: Securing coverage at least on the commercial side, maybe just talk about the nature of that coverage how it compares to the other neurotoxins.

Serge D. Belanger: Whether it will impede usage outside of cervical dystonia.

Serge D. Belanger: And maybe just cover also your plans and timelines for Medicare coverage.

Speaker Change: Sure. So on the covered side of it if you look at the the commercial category within CD, it's about 60% of the overall CD lives.

Speaker Change: Over 50% already.

Mark J. Foley: And within that, you know, about almost, you know, two-thirds of that coverage is going to be first-line therapy. So we feel like at least in CD coming into the market, we've got a really strong position within the commercial payer community in terms of our ability to compete effectively and not have any step edits or limits. Within the commercial category, maybe, you know, 14% will have a step at it. And so we'll continue to work to knock that down with additional payer data. Right now, we don't have a lot of payer data to go back to those. And so we really like sort of the response that we've gotten in the adoption. And, you know, we've made great progress with a lot of the top groups there. On the Medicare side, we already have 100% coverage. On the Medicare side, that's about 20% of the market. And then, you know, same thing on the federal side.

Speaker Change: And within that about.

Serge D. Belanger: Almost two thirds of that coverage is going to be first line therapy. So we feel like at least in CD coming into the market. We've got a really strong position within the commercial payer community in terms of our ability to compete effectively and not have any step edits or limits.

Serge D. Belanger: Within the commercial category, maybe 14% will have a step at it and.

Serge D. Belanger: And so we'll continue to work to knock that down with additional payer data right. Now we don't have a lot of payer data to go back to those.

Serge D. Belanger: And so we really like sort of the response that we've gotten and the adoption and we've made great product progress with a lot of the top groups. There on the Medicare side, we already have 100% coverage on the Medicare side, that's about 20% of the market.

Serge D. Belanger: And then same thing on the federal side, and we have a little bit more work to do on the Medicaid side of it but all in all the team has made tremendous progress.

Mark J. Foley: We have a little bit more work to do on the Medicaid side of it. But all in all, the team's made, you know, tremendous progress in terms of the overall coverage side of it. You know, with respect to spontaneous use, obviously, we can only promote for CD. But there are a number of the coverage policies which are agnostic to the toxins. So you have some that will look at toxins as sort of a general category. And if you get toxin coverage within that payer network, then they leave it up to the physicians to ultimately use the product, you know, in a way that they see fit.

Serge D. Belanger: In terms of the overall coverage side of it with respect to spontaneous use obviously, we can only promote for CD, but there are a number of the coverage policies, which are agnostic to the toxin. So you have some that we will look at toxins as a.

Serge D. Belanger: Sort of a general category in if you get oxygen coverage within that payer network than they leave it up to the physicians to ultimately.

Serge D. Belanger: Use the product.

Serge D. Belanger: In a way that they that they see fit others.

Mark J. Foley: Others will allow for coverage of other indications with additional data. It doesn't need to be indication data. It could be additional data. And then some are very rigid in terms of only covering those indications where you have an FDA approval.

Serge D. Belanger: We'll allow for coverage of other indications with additional data it.

Serge D. Belanger: It doesn't need to be indication data can be additional data and then some are very rigid in terms of only covering those indications where you have an FDA approval. So.

Mark J. Foley: So, you know, we feel like we're really well positioned in cervical dystonia. And we're also encouraged by some of the payers that are looking at this as sort of a generic category where the approval of Daxify will allow the payers to ultimately manage the category the way that they think makes the most sense along with the clinicians. Thanks, Mark. Thank you. As a reminder, if you'd like to ask any further questions, please ask star one now. And our next question is from the line of Uy Ear of Mizuho. Hi, thanks for taking my question. This is Charles Anferoy.

Mark J. Foley: We feel like we're really well positioned in cervical dystonia and we're also encouraged by some of the payers that are looking at this as sort of a generic category, where the approval of <unk> will allow the payers to ultimately manage the category the way that they think makes the most sense along with the clinicians.

Speaker Change: Thanks, Mike.

Mike: Thank you.

Speaker Change: As a reminder, if you would like to ask any further questions. Please call star one now and our next.

Uy Sieng Ear: Is from the line of.

Speaker Change: Your line is now open. Please go ahead.

Mike: Hi, Thanks for taking my question. This is Charles on for oil.

Uy Sieng Ear: I guess I had a question about the expanded label for the RH3 launch. And just do you think that's going to be a modest contribution to the sales in this year? here.

Charles: I guess I had a question about the expanded label for the <unk> III launch and just do you think thats going to be a modest contribution to the sales.

Mark J. Foley: Well, I mean, The nice thing about the indication is you can teach, train, market, promote to it. And given that LIPS is the most commonly performed HA filler procedure, having that ability to directly target, promote, teach, train, and go after it definitely helps. And so, you know, it's another thing to talk about, and I think it speaks to the ongoing innovation pipeline that Teoxane is bringing forward in the RHA line. And so it's just yet another thing for us to get in front of customers to talk about. It allows us to get behind it from a promotional standpoint. So listen, I don't think it's the kind of thing that's going to create step function difference in the growth, but it does all help and contribute to the ability for us to have something else to talk to customers about and to, you know, get trial perhaps in accounts that maybe have not yet leaned in. And it fits also really well with Redensity, which is used for peri-oral lines. And so it's a nice combination of using RHA-3 for lip fullness and then using RHA Redensity for the areas kind of around the lips.

Mike: This year thanks.

Mike: Yes.

Mike: Sure.

Mike: The nice thing about the indication as you can teach train market promote to it and given that lips is the most commonly performed.

Mark J. Foley: Hey filler procedure.

Mike: Having that ability to directly target promote teach train and go after it definitely helps and.

Mike: And so it's another thing to talk about and I think it speaks to the ongoing innovation pipeline that <unk> is bringing forward in the <unk> line and so it's just yet another thing for us to get in front of customers to talk about it allows us to get behind it from a promotional standpoint, so listen I don't think its the kind of thing thats going to create step function difference.

Mike: In the the growth, but it does all help and contribute to the ability for us to have something else to talk to customers about and to get trial, perhaps in accounts that maybe have not yet leaned in and it fits also really well with <unk>, which is used for Perry oral lines and so it's a nice combination of using our <unk> III.

Mike: For lip fullness, and then using our <unk> for the areas kind of around the lips and so just again gives us yet more to talk about with our customers more reason to engage in more reason to get trial.

Mark J. Foley: And so, you know, it just, again, gives us yet, you know, more to talk about with our customers, more reason to engage, and more reason to get trial. Thanks, Farrell. Thank you. Thank you and this will conclude the Revance Therapeutics fourth quarter and fourth year 2023 financial results and corporate updates. Thank you all for joining. You may now disconnect. ?? ?? ?? ??

Mark J. Foley: Thanks very helpful.

Speaker Change: Thank you.

Mark J. Foley: Thank you and this will conclude the rebound therapeutics fourth quarter and full year.

Mark J. Foley: 2023 financial results and corporate update conference call.

Mark J. Foley: Thank you all for joining you may now disconnect your lines.

Mark J. Foley: [music].

Mike: Okay.

Mike: [music].

Speaker Change: Thank you.

Mike: [music].

Mark J. Foley: Okay.

Mark J. Foley: Yes.

Mark J. Foley: Okay.