Q1 2024 biote Corp Earnings Call
Operator: Good day, and welcome to the BioT first quarter 2024 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask a question. You may press star then one on a touch-tone phone to withdraw your question. Please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Szymon Serowiecki, an IR representative from Advisory Partners. Please go ahead. Thank you for joining us today.
Good day and welcome to the Biogen first quarter 'twenty 'twenty four earnings conference call.
All participants will be enriched and Natalie Knight should you need assistance. Please develop conference specialist by pressing the star key followed by a threat actor today's presentation there'll be an opportunity to ask a question you May Press Star then one on attach some fun to withdraw your question. Please press Star then two.
Please note. This event is being recorded I would now like that.
Oh, that's it's fine and Sarah.
Speaker Change: A representative from Advisory partners. Please go home. Thank you for joining us today this afternoon.
Szymon Serowiecki: Thank you for joining us today. This afternoon, IDPublic will present its financial results for the quarter ended March 31st, 2024. This news release is available in the Investor Relations section of the company's website. Terry Weber, Chief Executive Officer, and Bob Peterson, Chief Financial Officer, will host today's call.
Sarah: Central and both for the quarter ended March 31 2024.
Sarah: This news release its available on the Investor Relations section of the company's website.
Sarah: Have you ever taken a officer and Bob Peterson, Chief Financial Officer will host todays call.
Robert Peterson: Before we get started I'd like to remind everyone that management will make statements. During this call that include forward looking statements regarding among other things the company's debenture results.
Szymon Serowiecki: Before we get started, I'd like to remind everyone that management will make statements during this call that include forward-looking statements regarding, among other things, the company's financial results, Future Performance and Growth Opportunities, Business Outlook, Strategies, Goals, Research and Development, Manufacturing and Commercialization Activities, Regulatory Process Operations, the Impact of Macroeconomic Conditions on Business, Types of Operations, Venture Conditions, and Other Matters. These things are not guarantees of future performance. They're subject to a variety of risks, and it's guaranteed that some of which are beyond the company's control.
Robert Peterson: Each of performance and growth opportunities business outlook strategies goals, we shouldn't development manufacturing commercialization activities regulatory past operations effective macroeconomic machines business lots of operations actual conditions and other matters.
Sarah: They are not guarantees of future performance are subject to a variety of risks and uncertainties some of which are beyond the company's control actual results could differ materially from expectations, reflecting any forward looking statements.
Szymon Serowiecki: Actual results could differ materially from expectations reflected in any forward-looking statement. These statements are subject to risks, uncertainties, and assumptions that are based on management's current expectations as of today, and IOT undertakes no obligation to update them in the future.
Sarah: These statements are subject to risks uncertainties and assumptions that are based on management's current expectations as of today.
Sarah: <unk> undertakes no obligation to update them in the future. Therefore, you've seen that should not be relied upon representing the company's views as of any subsequent date.
Szymon Serowiecki: Therefore, these statements should not be relied upon as representative of the company's use as of any subsequent date. For discussion of risks and other important factors that could affect their actual results, please refer to our SEC filings available on the SEC's website and the Investor Relations section of our website, as well as risks and other important factors discussed in the earnings release. Management also referred to adjusted EBITDA, which is a non-GAAP financial measure, to provide additional information to investors.
Sarah: Got you rich other important factors that could affect our actual results. Please refer to our SEC filings available on the excuse that site in the Investor Relations section of our website.
Sarah: Risks and other important factors discussed in the earnings release.
Sarah: And also for to adjusted EBITDA, which is a non-GAAP measure to provide additional information to investors.
Szymon Serowiecki: Reconciliation of the non-gap-to-gap measure is provided in the earnings release, with the primary differences being stock-based compensation, fair value-adjustment to certain liabilities, transaction-related expenses, and other non-operating expenses. Please refer to our first quarter 2024 earnings release for reconciliation with just an EBITDA to net income, the closest comparable gap measure. I'll now turn the call over to Teri.
Sarah: Reconciliation of non-GAAP to GAAP measure is provided in the earnings release with the primary differences being stock based compensation.
Sarah: Everybody just going to certain liabilities related expenses and other non operating expenses.
Sarah: He's the first our first quarter of 'twenty 'twenty four earnings release for reconciliation of adjusted EBITDA to net income close to comparable GAAP measures I'll now turn the call over to Terry.
Terry: Thank you Simon and thank you all for joining us on the call with me today is Bob Peterson, Our Chief Financial Officer, who will review, our financial results and discuss our outlook for 2024.
Teresa S. Weber: Thank you, Szymon, and thank you all for joining us. On the call with me today is Bob Peterson, our Chief Financial Officer, who will review our financial results and discuss our outlook for 2024. Mark Beer, our executive chairman, is also on today's call to help you answer questions during the Q&A session following our prepared remarks. BioTea generated solid financial performance in the first quarter, delivering results consistent with our expectations. Additionally, we successfully launched BioTRX, our new suite of complementary hormone and evidence-based wellness products, greatly expanding our long-term growth opportunity.
Terry: Mark Beer, our executive Chairman is also on today's call to help you answer questions during the Q&A session.
Terry: Knowing our prepared remarks.
Terry: Iot generated solid financial performance in the first quarter delivering results consistent with our expectations.
Terry: We successfully launched <unk>, our new suite of complementary hormone and evidence based wellness products.
Terry: Greatly expanding our long term growth opportunities.
Teresa S. Weber: We also closed our acquisition of Asteria Health, a strategic transaction that enhances our efficiency and strengthens our manufacturing capabilities. Shortly after the first quarter closed, we were pleased to reach a definitive settlement agreement with BioTea's founder. This settlement ends costly litigation and we believe will prove accretive to shareholder value through the planned repurchase of more than 18 million shares held by Dr. Donovitz at an average repurchase price of $4.17 per share. Bob will provide more information on the expected financial impact of this agreement in his remarks. Now, let's turn to our first quarter results.
Terry: We also closed our acquisition of Syria health, a strategic transaction that enhances our efficiency and strengthens our manufacturing capabilities.
Terry: Shortly after the first quarter close we were pleased to reach a definitive settlement agreement with biotech founder.
Sarah: This settlement as costly litigation and we believe will prove accretive to shareholder value to the planned repurchase of more than 18 million shares held by Doctor Donovan.
Sarah: On an average repurchase price of $4.17 per share.
Sarah: Bob will provide more information on the expected financial impact of this agreement in his remarks.
Robert Peterson: Now, let's turn to our first quarter results.
Teresa S. Weber: Revenue increased 4.4%, reflecting procedure revenue growth of 6.6%, partially offset by a decrease in dietary supplement revenue of 11.3% due to an expected decline in nutraceutical sales as we transition our e-commerce business. Consistent with our expectations, procedure revenue growth remains stable compared to that of the fourth quarter of 2023. Procedure revenue was driven primarily from our top-tier clinics and included a contribution from new clinics we have added in the past 12 months.
Robert Peterson: Revenue increased four 4%, reflecting procedure revenue growth of 6.6%, partially offset by a decrease in dietary supplement revenue of 11.3%.
Robert Peterson: Due to an expected decline in nutraceutical sales as we transition our e-commerce business.
Robert Peterson: Consistent with our expectations procedure revenue growth remained stable compared to that of the fourth quarter of 2023.
Robert Peterson: Procedure revenue was driven primarily from our top tier clinics and including the contribution from new clinics. We have added in the past 12 months.
Robert Peterson: Adjusted EBITDA increased 8% outpacing revenue growth and we generated an adjusted EBITDA margin in excess of 30%.
Teresa S. Weber: Adjusted EBITDA increased 8%, outpacing revenue growth, and we generated an adjusted EBITDA margin in excess of 30%. Following the exit of one of our larger nutraceutical distributors from the market in the fourth quarter of 2023, we continued to transition a portion of our nutraceutical sales to our own online storefront. As part of this transition, we're eliminating unauthorized third-party resellers, which we anticipate will enhance the overall margin profile of our nutraceuticals business in the long run. We expect our nutraceuticals business to resume year-over-year revenue growth starting in the second half of 2024, as existing inventory is cleared from the distribution channel.
Robert Peterson: Following the exit of one of our larger nutraceutical distributors from the market in the fourth quarter of 2023, we continue to transition a portion of our nutraceutical sales to our own online storefront.
Robert Peterson: As part of this transition we are eliminating unauthorized third party resellers.
Robert Peterson: Which we anticipate will enhance the overall margin profile of our Nutraceuticals business in the long run we.
Robert Peterson: We expect our Nutraceuticals business will resume year over year revenue growth starting in the second half of 'twenty 'twenty four as the existing inventory is cleared from the distribution channel.
Bob Peterson: In February we successfully launched <unk>, our new suite of Formula and wellness therapies.
Teresa S. Weber: In February, we successfully launched BioTRX, our new suite of hormone and wellness therapies. BioTRX represents a milestone in our evolution as we build on our leadership to become the foremost provider of evidence-based healthy aging and therapeutic wellness solutions. Bio TRX addresses patient and practitioner needs in key areas, including preventative wellness, sexual health, and weight loss. It also further separates BioTE from our competitors by providing practitioners with a complete solution to promote positive health outcomes for patients.
Bob Peterson: Iot Rx represents a milestone in our evolution.
Bob Peterson: As we build on our leadership to become the foremost provider and evidence based healthy aging and therapeutic wellness solutions.
Bob Peterson: Iot Rx, the dressers patient and practitioner needs in key areas, including preventative wellness sexual health and weight loss.
Bob Peterson: It also further separates biotech from our competitors by providing practitioners with a complete solution to promote positive health outcomes for patients.
Teresa S. Weber: As we continue the phased rollout of BioTRX, we're focused on ensuring practitioners have consistent access to our expanded range of hormone and wellness therapeutics. To date, we've introduced 10 new products, including hormone formulations that provide efficacious alternatives to pellet therapy. We plan to further expand our formulary with additional hormone and therapeutic wellness products later in the year. Patient and practitioner response to our new offerings has been positive, highlighting what we believe is an attractive market opportunity for biotea in the years ahead.
Bob Peterson: As we continue the phased rollout of bio T. Rx, we're focused on ensuring practitioners have consistent access to our expanded range of formula and wellness therapeutics.
Bob Peterson: To date, we've introduced 10, new products, including hormone formulations that provide efficacious alternative to tell up therapy.
Bob Peterson: We plan to further expand our formulary with additional hormone and therapeutic wellness products later in the year.
Teresa S. Weber: Patient and practitioner response to our new offerings has been positive highlighting what we believe is an attractive market opportunity for bio T. In the years ahead.
Teresa S. Weber: For practitioners, Bio TRX will be offering valuable tools and resources, including a proprietary clinical decision support system that provides treatment recommendations formulated to individual patients' unique needs. For patients, our expanded Bio TRX formulary enables them to conveniently receive hormone and wellness treatments from a single medical provider. In addition to our successful launch of Bio TRX, we also closed our acquisition of Asteria Health, a manufacturer of compounded bioidentical hormones, in the first quarter.
Bob Peterson: For practitioners bio T Rx will be offering valuable tools and resources, including our proprietary clinical decision support system that provides treatment recommendations formulated to individual patients unique needs.
Bob Peterson: Four patients are expanded by OTR ex formulary enables them to conveniently receive hormone and wellness treatment from a single medical provider.
Bob Peterson: In addition to our successful launch in biotech Rx. We also closed our acquisition of exterior health a manufacturer of compounded bio identical hormones in the first quarter.
Teresa S. Weber: The integration of Exterior is already underway, and we remain focused on expanding exterior health licenses to additional states. We believe Asteria Health advances our strategic objectives in the following key areas. First, we are strengthening control over our supply chain, enabling us to generate product enhancements through the vertical integration of our manufacturing. As we work towards achieving full vertical integration, we are also focused on driving productivity gains in our pellet manufacturing. Second, we are gaining expertise in the manufacturing of 503B products, enabling us to provide a wide range of high quality compounded medications.
Bob Peterson: The integration of Syria is already underway and we remain focused on expanding exterior health licenses to additional states.
Teresa S. Weber: We believe the Steria health advances our strategic objectives in the following key aspects.
Teresa S. Weber: First we are strengthening control over our supply chain, enabling us to generate product enhancements to the vertical integration of our manufacturing.
Bob Peterson: As we work towards achieving full vertical integration. We are also focused on driving productivity gains in our pellet manufacturing.
Teresa S. Weber: Second we are gaining expertise in the manufacturing of 503, b products, enabling us to provide a wide range of high quality compounded medications.
Teresa S. Weber: Later this year, we plan to open the BioT Lab and Innovation Processing Center, where we will develop innovative hormone and therapeutic wellness formulations, backed by our own pharmacokinetic research study. This is an exciting initiative for Biotea, which we believe will strengthen our competitive position and keep us at the forefront of innovation. Our commitment to training and continuing education remains integral to the BioT method and serves as a key competitive differentiator, especially as we evolve into a single-source provider of hormone and therapeutic wellness solutions.
Teresa S. Weber: Later this year, we plan to open a bio T lab and innovation processing Center.
Teresa S. Weber: Where we will develop innovative hormone and therapeutic wellness formulations backs.
Teresa S. Weber: Backed by our own pharmacokinetic research studies.
Teresa S. Weber: This is an exciting initiative for biotech, which we believe will strengthen our competitive position and keep us on the forefront of innovation.
Teresa S. Weber: Our commitment to training and continuing education remains integral to the biotech method and serves as a key competitive differentiator, especially as we evolve into a single source provider of hormone and therapeutic wellness solutions.
Teresa S. Weber: To optimize our growth and enhance the startup experience for our new practitioners, we recently introduced a Quick Start program designed to streamline the onboarding process. At the same time, we are laying the groundwork for more immersive and interactive didactic and advanced training for both new and existing practitioners. Through these enhancements, we aim to accelerate the revenue ramp from new clinics, improve our cost efficiency, and extend our leadership position in both training and education. I'll now turn the call over to Bob to discuss our financial results and provide our outlook for 2024.
Teresa S. Weber: To optimize our growth and enhance the startup experience for our new practitioners. We recently introduced a quick start program designed to streamline the onboarding process.
Bob: At the same time, we are laying groundwork for more immersive and interactive didactic and advanced training for both new and existing practitioners.
Bob: Through these enhancements, we aim to accelerate the revenue ramp from new clinics improve our cost efficiency and extend our leadership position in both training and education.
Teresa S. Weber: I'll now turn the call over to Bob to discuss our financial results and provide our outlook for 2024.
Bob: Thank you Terry and good afternoon, everyone.
Robert Peterson: Thank you, Terry, and good afternoon, everyone. First quarter revenue increased 4.4% year over year to $46.8 million when compared to the same quarter in 2023. Procedure revenue grew 6.6% from the prior year period, a growth rate consistent with our performance in the fourth quarter of 2023. Nutraceuticals revenue decreased by 11.3%, as we expected, primarily as a result of one of the company's larger distributors exiting the NutraCeuticals business during the fourth quarter of 2023. As I noted in last quarter's call, we expect to begin managing distribution of the products previously delivered by this distributor by the end of the second quarter of 2024.
Robert Peterson: First quarter revenue increased four 4% year over year to $46 $8 million when compared to the same quarter in 2023.
Robert Peterson: Procedure revenue grew six 6% from the prior year period, our growth rate consistent with our performance in the fourth quarter of 2023.
Robert Peterson: Nutraceuticals revenue decreased by 11, 3% as we expected.
Robert Peterson: Primarily as a result, one of the companies larger distributors exiting nutraceuticals business during the fourth quarter of 2023.
Robert Peterson: As I noted in last quarters call, we expect to begin managing distribution of the products previously delivered by this distributor by the end of the second quarter of 2024.
Robert Peterson: First quarter gross profit margin expanded by approximately 240 basis points.
Robert Peterson: First quarter gross profit margin expanded by approximately 240 basis points, to 71.4%, due to product mix and effective cost management. However, I would note that this quarter's increase in gross profit margin was favorably impacted by lower nutraceutical sales, as mentioned earlier. As nutraceutical sales resume growth in the second half, as we expect, we anticipate consolidated gross profit margin should revert to historical levels.
Robert Peterson: So 71, 4% due to product mix and effective cost management.
Robert Peterson: I would note that this quarter's increase in gross profit margin was favorably impacted by lower nutraceutical sales as mentioned earlier.
Robert Peterson: As nutraceutical sales resumed growth in the second half as we expect we anticipate consolidated gross profit margin should revert to historical levels.
Robert Peterson: Telling general and administrative costs were $23.0 million compared to $23.1 million in the first quarter of 2023. Excluding the impact of share-based compensation, litigation expenses, and settlements unrelated to ongoing business, transaction, and M&A-related expenses, and other SG&A expenses would have been $20.0 million in the first quarter of 2024. Operating income was $10.4 million compared to $7.9 million in the prior year quarter, driven by revenue growth, improved gross profit margin, and effective management of operating expenses. The net loss in the quarter was $5.8 million, inclusive of a $12.1 million loss due to a change in the fair value of the earn out liability.
Robert Peterson: Selling general and administrative costs were $23.0 million compared to $23 $1 million in the first quarter of 2023.
Robert Peterson: Excluding the impact of share based compensation litigation expenses and settlements unrelated to ongoing business transaction and M&A related expenses and other SG&A expenses would have been $20.0 million in the first quarter of 2024.
Robert Peterson: Operating income was $10 $4 million compared to $7 $9 million in the prior year quarter, driven by revenue growth improved gross profit margin.
Robert Peterson: And effective management of operating expenses.
Robert Peterson: Net loss in the quarter was $5 $8 million inclusive of a $12 $1 million loss due to a change in the fair value of the earn out liability.
Robert Peterson: This compares to a net loss of $21.4 million in the first quarter of 2023, which included a $25.4 million loss due to the net change in the fair value of the earn out liability. Adjusted EBITDA was $14.2 million, with an adjusted EBITDA margin of 30.2%. This compares to adjusted EBITDA of $13.1 million with an adjusted EBITDA margin of 29.2% in the prior year period. Adjusted EBITDA and margins increased primarily due to higher sales, product mix, and improved profitability compared to the first quarter of 2023. First quarter operating cash flow was approximately $7.4 million. The positive cash flow in Q1 of 2024 was primarily related to better margins. As Terry noted, on April 23rd,
Robert Peterson: This compares to a net loss of $21 $4 million in the first quarter of 2023, which included a $25 $4 million loss due to the net change in the fair value of the earn out liability.
Robert Peterson: Adjusted EBITDA was.
Robert Peterson: Was $14 $2 million with an adjusted EBITDA margin of 32%.
Robert Peterson: This compares to adjusted EBITDA of $13 $1 million with an adjusted EBITDA margin of 29, 2% in the prior year period.
Robert Peterson: Adjusted EBITDA and margins increased primarily due to higher sales.
Robert Peterson: Mix and improved profitability compared to the first quarter of 2023.
Robert Peterson: First quarter operating cash flow was approximately $7 $4 million to positive cash flow in Q1 of 2024 was primarily related to better margins.
Robert Peterson: As Terry noted on April 23rd.
Robert Peterson: In 2024, BioT reached a definitive settlement in the company's litigation with Dr. Gary S. Donovitz, BioT's founder. Under the terms of the settlement, BioT has agreed to repurchase all of the 18.4 million shares beneficially owned by Dr. Donovitz at the time of the settlement at an average price of $4.17 per share, with the first tranche of shares being repurchased for $32.2 million on April 26, 20 The remaining shares will be repurchased over the next three years. Also, pursuant to the settlement, the company is canceling all 3.9 million unvested burnout shares that were beneficially owned by Dr. Donovance at the time of the settlement.
Robert Peterson: 2024, biotech reached a definitive settlement.
Robert Peterson: The company's litigation with Dr. Gary S <unk> biopsies founder.
Robert Peterson: Under the terms of the settlement.
Robert Peterson: T has agreed to repurchase all of the $18 4 million shares beneficially owned by Doctor Donovan.
Robert Peterson: At the time of the settlement at an average price of $4 17 per share.
Robert Peterson: With the first tranche of shares being repurchased for $32 $2 million.
Robert Peterson: 26 2024.
Robert Peterson: The remaining shares will be repurchased over the next three years.
Robert Peterson: Also pursuant to the settlement the company is canceling all $3 9 million Unvested earn out shares that were beneficially owned by Dr. Don That's at the time of the settlement.
Robert Peterson: Turning to our financial outlook for fiscal 2024, we reaffirm our previously reported guidance with revenue of 200 million to $204 million and adjusted EBITDA of 60 million to $63 million.
Teresa S. Weber: Turning to our financial outlook for fiscal 2024, we reaffirm previously reported guidance with revenue of $200 million to $204 million and adjusted EBITDA of $60 million to $63 million. As we look at the cadence of revenue and adjusted EBITDA for the year, we expect our financial performance to be weighted towards the second half of the year. Total revenue growth for the first half of 2024 is expected to be impacted by the transition in the nutraceuticals distribution channel and timing of seasonal promotions. Now, I'll turn the call back to Teri for her closing comments.
Teresa S. Weber: As we look at the cadence of revenue and adjusted EBITDA for the year, we expect our financial performance to be weighted towards the second half of the year.
Teresa S. Weber: Total revenue growth for the first half of 'twenty 'twenty four is expected to be impacted by the transition and the Nutraceuticals distribution channel.
Teresa S. Weber: Timing of seasonal promotions.
Teri: Now I'll turn the call back to Terry for closing comments.
Teresa S. Weber: Yes.
Teri: Thank you Bob.
Teresa S. Weber: IoT generated solid financial performance in the first quarter and achieved substantial progress against our strategic objective. With the successful launch of Bio TRX and the closure of the Asteria Health Acquisition, we are strengthening and expanding our capabilities. We remain focused on providing a comprehensive approach to aging by delivering evidence-based healthy aging and therapeutic wellness solutions to both practitioners and their patients. Now, we'd like to open the call to questions. Operator, please begin the question and answer session.
Teri: Iot generated solid financial performance in the first quarter and achieved substantial progress against our strategic objectives.
Teresa S. Weber: With the successful launch of bio T Rx and the closure of the Asterias health acquisition, we are strengthening and expanding our capabilities.
Teresa S. Weber: We remain focused on providing a comprehensive approach to aging by delivering evidence based healthy aging and therapeutic wellness solutions to both practitioners and their patients.
Speaker Change: Now I would like to open the call for questions. Operator, Please begin the question and answer session.
Speaker Change: We will now begin the question and answer session to ask a question you May press. The Star Key then one on your touch sense that if you are using a speakerphone. Please pick up the handset.
Operator: We will now begin the question-and-answer session. To ask a question, you may press the star key, then 1 on your touch-tone phone. If you are using a speakerphone, please pick up the handset to ask your question. If at any time your question has been answered and you would like to withdraw your question, please press star then 2. The first question comes from Leszek Sulewski with Truist Set.
Leszek Sulewski: Ask that question.
Operator: If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then case.
Leszek Sulewski: The first question comes from lease to S. P Richards Sac.
Leszek Sulewski: Good evening. Thank you for taking my question. Terry, could you perhaps give us a little bit more color on the 6.6 procedure growth in Q1. Can you comment, basically, on how much of that growth has contributed to new providers versus your top existing clinics? And then the second question would be on the five months of data that you now have with your ten new products that you rolled out to your first 100 clinics.
Leszek Sulewski: Good evening. Thank you for taking my question Terry if you, perhaps give us a little bit more color on the $6 six a procedure growth in Q1 can you comment, especially how much of that growth has contributed to new providers versus the your top existing clinics.
Leszek Sulewski: Perhaps give us some feedback on that, and then at what stage would you expect to roll it out to the additional clinics? And then I guess the third one would be on the Asteria acquisition, and just give us a little bit of a sense of your integration there. And then what sort of investments, capital investments, would you expect to have when you're looking to create new products from that? And is this based on preliminary feedback that you're getting from demand, or are you looking to create a new market in that space? Thank you.
Leszek Sulewski: And then second question would be on the five months of data that you now have with your 10, new products that you've rolled out to you.
Leszek Sulewski: Your first 100 clinics, perhaps give us some feedback on that and then at what stage would you expect to roll out to the additional clinics and then I guess the third one would be on the STR acquisition, and just give us a little bit of a sense of your integration there than what sort of investments capital investments would you expect.
Leszek Sulewski: To.
Leszek Sulewski: When you're looking to create new products from that and and is this based on preliminary feedback that you're getting from demand or are you looking to create a new market in that space. Thank you.
Speaker Change: Great. So I'll start with the first question talking about the procedure growth.
Teresa S. Weber: Great, so I'll start with the first question talking about procedure growth year over year. That's 6.6%. As we had talked about, the first half of 2024 was going to reflect the back half of 2023.
Teresa S. Weber: Year over year that six 6% as we had talked about.
Speaker Change: The first half of 2020 for whats going to reflect the back half of 2023. So we were pleased with that stable growth, where our ability to continue to grow and the percentage as it usually is is from existing clinics. The majority is moving those top tier clinics in country.
Teresa S. Weber: So we were pleased with that stable growth, our ability to continue to grow, and the percentage, as it usually is, is from existing clinics. The majority are moving those top-tier clinics and continuing to grow their practices, and then looking at indexing to grow that second tier of clinics into the top tier. And then we did have, as we've talked about before, we are very encouraged by those new clinics. We've continued to onboard them at a higher rate.
Teresa S. Weber: Continuing to grow their practices and then looking at indexing to grow that second tier of clinics into the top tier and then we did have is as we've talked about before we're very encouraged by those new clinics. We've continued to onboard them at a higher rate we have highly qualified well.
Teresa S. Weber: We have highly qualified, well-indexed practitioners that are coming to that training. And that Quick Start program I referred to in my remarks is performing better than it has since I've been here, since 2019, to really give us a quick start to those practitioners as they end up giving hormone optimization as they go back from training. So, solid performance this quarter, and we're pleased to have it on balance and consistent with our expectations.
Teresa S. Weber: Index practitioners that are coming to that training and our quick start program I referred to in my remarks is performing better than it has since I've been here.
Teresa S. Weber: 219 to get really give us a quick start to those practitioners as they end up giving hormone optimization as they go back from training. So solid performance this quarter and we're pleased to have it on balance and consistent with our expectations.
Teresa S. Weber: The second question that you had was about BioTRX. So those 10 new products were launched in mid-February with those 100 initial providers, and the response has been very positive from both the providers and the patients. They really like the fact that they can have both the hormone products from us, not just the pelleting, but other additional products and have access to them with quick delivery and very consistent results.
Teresa S. Weber: The second question that you had was on bio T. Rx. So those 10, new products were launched it in February mid February with those hundred initial providers and the response has been very positive from both the providers and the patients. They really liked the fact that they can have both a hormone products from us not just the colony.
Teresa S. Weber: But other than the additional products and had access with quick delivery and very consistent results. So to that that the first hundred onboarding well with good response on the products.
Teresa S. Weber: So that first 100 onboarded well with good response to the products. We had a large provider meeting, well over 600 plus people in attendance to really look at then the launch of the second phase of BioTRX at this training meeting. So we then ended up focusing on 500 new providers that will roll out in this second phase, looking at those 10 new products, and they're being very positively responded to. So, as you know, we've got over 7,100 providers.
Teresa S. Weber: We had a large a provider leading you know well over 600 plus.
Teresa S. Weber: People in attendance to really look at then the launching of the second phase of bio T. Our exit this training meeting. So that we then ended up focusing on 500, new providers that will rollout in the second phase looking at those 10, new products and they're being very positive we responded too so.
Teresa S. Weber: As you know we've got over 7100 providers. So this rollout will be systematic to 'twenty for ensuring that we have consistent access, especially for those really popular products like G. L. P ones.
Teresa S. Weber: So this rollout will be systematic through 24, ensuring that we have consistent access, especially for those really popular products like GLP-1. And then I will give the Assyria questions over to Bob. Hey Leigh, I'm looking at Asperia.
Teresa S. Weber: And then I will give the a series of questions over to Bob.
Robert Peterson: Looking at Asteria, thinking about the investments that we put in, I don't see us as a capital-light operation, and I don't see us spending a significant amount of capital to get this operation up and running in the interim. When we look at the strategic nature of the operation, I think expanding a little bit of capabilities from a machinery and a design perspective is going to be the primary investments that we make. So I think that's really the focus that we have at Asteria.
Bob: Hey, Lee I'm looking.
Robert Peterson: Looking at Asterias and thinking about the investments that we put in I don't see where capital light operation and I don't see us spending a significant amount of capital to get this this operation up and running.
Robert Peterson: In the interim.
Robert Peterson: When we look at the strategic nature of the of the of the operation I think.
Robert Peterson: Expanding a little bit of capabilities from our machinery in our.
Robert Peterson: Design perspective is going to be the primary.
Robert Peterson: Our primary investments that we take so I think that's really the focus that we have at the fed or Syria.
Robert Peterson: Great.
Robert Peterson: Your next question comes from John Kim with TD Colin.
Jungwon Kim: Your next question comes from Jonah Kim with TD Cowan. Thank you for taking my questions seriously.
Jungwon Kim: Thank you for taking my question just curious.
Jungwon Kim: Yeah.
Jungwon Kim: Outside of your core markets at this point.
Jungwon Kim: And also any color around your pipeline and how long it typically takes to get new products in that market that would be helpful. Thank you so much.
Operator: So I missed the first part of your question, Joan. Could you repeat that, because it gapped out?
Jungwon Kim: So I missed the first part of your question could you repeat that 'cause it gapped out.
Jungwon Kim: Yes, sure. I was just asking about the pace of expansion outside of your core markets at this point, how fast we should expect that on an annual basis, and then another question about R&D and innovation. Thank you.
Jungwon Kim: Yes sure.
Jungwon Kim: Just asking about.
Jungwon Kim: How the pace of expansion outside of your core markets at this point on how fast should we expect that on an annual basis.
Speaker Change: Yeah. The second question was on around R&D and innovation. Thank you.
Teresa S. Weber: The first question is geographic...
Teresa S. Weber: The first question: our geographic expansion is going very well, so we've seen real pockets of good uptake among the new providers that we're bringing to training and their ability to really go into those new markets and start a practice. So you know we've got a highly experienced sales force, the best in hormone optimization, certainly in the U.S., and they've really been able to identify those providers that would be capable of having very successful hormone practices.
Jungwon Kim: The first question our geographic expansion is going very well so we've seen real pockets of good good uptake on the new providers that we're bringing to training and their ability to really go into those new markets and started a practice. So you know we've got a highly experienced sales force the best in hormone opt.
Teresa S. Weber: <unk> certainly in the U S and they've really been able to index those providers that would be capable of having very successful hormone practices. So the expansion geographically is going well and we expect it to go well do the rest of the year and you'll be able to see those results second half of 'twenty four.
Teresa S. Weber: So the expansion geographically is going well, and we expect it to go well through the rest of the year, and you'll be able to see those results in the second half of 24 and into 25 as those new markets develop. And I'll try to give some more color as we go on in the year on some of those new markets.
Teresa S. Weber: And into 'twenty five as those new markets develop and I'll try to give some more color as we go on in the year on some of those new markets.
Teresa S. Weber: And then the second question you had was on innovation products. So I think we have a real need in this country for these therapeutic wellness teas wellness products on healthy aging.
Teresa S. Weber: And then the second question you had was about innovative products. So I think we have a real need in this country for these therapeutic wellness, these wellness products for healthy aging. So we are developing those products. We've got a wonderful Dr. Doreen Satil, a very excellent functional medicine doctor and formulator, and we are looking at providing those new products in those categories I discussed. And I think that the innovation process is going well.
Teresa S. Weber: We are developing those products, we've got a wonderful doctor Doreen flat heal very excellent functional medicine doctrine Formula later, and we are looking at providing those new products in those categories I discussed and I think that innovation process is going well what we have to ensure is that we have.
Teresa S. Weber: What we have to ensure is that we have access to those products in all 50 states, and certainly where or where available, some of the states like California are more limited, but getting that access and consistent delivery on those new products. So we're encouraged, and it's moving effectively. It's not overnight.
Teresa S. Weber: <unk> access to those products in all 50 states, and certainly where or where available some states like California, more limited, but I'm getting that access and consistent delivery on those new products. So we're encouraged and it's moving effectively it's not overnight.
Speaker Change: Alright, thank you.
Speaker Change: Your next question comes from Continental Glamour Gela with Jefferies.
Kaumil S. Gajrawala: Your next question comes from Kaumil Gajrawala, with Jeffreys.
Kaumil S. Gajrawala: I have maybe a follow-up on one of the earlier questions on procedure growth, just to make sure that I heard you correctly: is the primary driver of the growth the existing clinics, or have you ever broken out, or could you give me a sense of how much of the growth has come from new ones?
Kaumil S. Gajrawala: Do you have maybe a follow up on one of the one of the earlier questions on procedure growth.
Kaumil S. Gajrawala: To make sure that I heard was the.
Kaumil S. Gajrawala: Is the primary driver of the growth of the existing clinics or have you ever broken out or could you give me a sense of how.
Kaumil S. Gajrawala: Much of the growth has come from new ones.
Kaumil S. Gajrawala: So the primary growth in that procedure that 6.6 and euro.
Teresa S. Weber: So the primary growth in that procedure, that 6.6 year-over-year procedure growth, is in our existing clinics. And I would say there are two categories.
Teresa S. Weber: Year over year procedure growth is in our existing clinics and I would say there are two categories. One is that top tier clinic, we're continuing to expand their business and their increased amount of hormone optimization. The second is targeting that second tier clinics to move them into a top tier and then always as we've said those.
Teresa S. Weber: One is that top-tier clinic. We're continuing to expand their business and their increased amount of hormone optimization. The second is targeting those second-tier clinics to move them into the top tier. And then, as we've said, those new clinics provide, and I don't give the exact numbers, but they provide that base to build over the next 18 months. So we're bringing more clinics to training quicker, and you'll see that acceleration in the second half of the year as that quick-start program really gets them engaged in increasing their procedures in that first 90 days. So you'll see, but three-quarters, or the greater one, is from our existing clinics and really working with them to grow their business. And then, to a lesser degree, on those new clinics that they're performing well.
Teresa S. Weber: New clinics provide them and I don't give the exact numbers, but they provide that base to build over the next 18 months. So we're bringing more clinics to training quicker and youll see that acceleration in the second half of the year as that quick start program really gets them engaged in <unk>.
Teresa S. Weber: Creasing their procedures in that first 90 days, so you'll see but three quarters or you know the greater one is from our existing clinics and really working with them to grow their business and then to a lesser degree on those new clinics, but theyre performing well.
Robert Peterson: Okay, got it. How were the new clinic ads this quarter versus in the past? I don't think you should give a number, but you know, better or worse at the same pace. We typically, as you know, typically don't give specifics on new customer ads. But one thing I can tell you, as we look at new customer growth, and as Terry said a little bit earlier, no one's better than BioT in bringing in new customers into the home run business.
Speaker Change: Okay got it how is the new clinic adds this quarter versus in the past.
Robert Peterson: I don't think you can give a number but getting better worse same pace. We typically as you know we typically don't give specific.
Robert Peterson: Pacific on the new customer adds but one thing I can tell you as.
Robert Peterson: As we look at the new customer growth.
Robert Peterson: As Terry said, a little bit earlier, no one's better than biotech and bringing in new customers into the hormone business and I can say that as.
Robert Peterson: And I can say that as we start to see, we're seeing higher quality new customers coming in the door. And I can tell you that we've never been more focused on who we're targeting and how we're indexing. So I can tell you, we're coming up with one of our best years since 2018.
Robert Peterson: As we start to see we're seeing a higher quality.
Robert Peterson: New customer coming in the door and I can tell you that we've never been more focused on who we're targeting and how we're how we're indexing. So I can tell you we're coming up with one of our best years since 2018.
Kaumil S. Gajrawala: From an onboarding perspective, new customers, and as Terry said, a big contributor to that is our quick start program, which is proving to be pretty effective. Okay, great.
Kaumil S. Gajrawala: From an onboarding perspective of new customers and as Terry said, a big contributor to that is our is our quick start program, which is proving to be pretty effective.
Kaumil S. Gajrawala: Okay great.
Teresa S. Weber: And maybe longer term, as your business is evolving with biotRx and such, what should the, is there a different margin structure? How should we think about how the business might look? Actually, there are two big ones, between the vertical integration and with the addition of new products. How should we just be thinking about what the P&L will look like?
Teresa S. Weber: Maybe the longer term the as your business is evolving with bio.
Teresa S. Weber: Bio T Rx and such.
Teresa S. Weber: Is there a different margin structure, how should we think about how the business might look actually there's two big you know between the vertical integration and with the addition of new products. How should we just be thinking about what the P&L will look like over time.
Teresa S. Weber: I'll talk about the new products, and then I'll pass it to Bob to talk about the margins in Arsteria. I think if you look at 2024, I would look at it as a very nominal contribution to those new products in that we're getting a transaction fee. We're not actually manufacturing those products yet. So we have acquired a 503B, which will be in our future, but at this point, it's a transaction fee.
Speaker Change: Hello, Good afternoon, yeah, the new products, and then I'll pass it to Bob to talk about the margins in our Styria I think if you look at 'twenty 'twenty four I would look at it a very nominal contribution on those new products in that we're getting a transaction fee, we're not actually manufacturing those products yet.
Bob: So we have acquired a final III b that will be in our future, but at this point its a transaction fee. So what it does though it gives us that one stop shop.
Teresa S. Weber: So what it does, though, it gives us that one-stop shop. Our providers are doing GLP-1s, and they are doing hormone optimization. As a matter of fact, at a new training last Friday, 100 providers, I asked how many were doing GLP-1s, and well over a third were already doing GLP-1s. So how testosterone, in our core business, works with that side effect of GLP-1s and the loss of lean muscle mass, we really believe testosterone will be core to that conversation over the next few years.
Teresa S. Weber: Our providers are doing G. L P ones and they are doing hormone optimization as a matter of fact, it a new training last Friday 100 providers I asked how many we're doing G. L. P. One well over a third we're already doing G. L. P. One cell, how testosterone and our core business works with that.
Teresa S. Weber: The side effect of the G. L. P. One and a loss of lean muscle mass, we really believe testosterone will be core to that conversation over the next few years, so that bio T. Rx becomes critical in what we educate on how we teach those providers to use both sets of products right. So I think this therapy.
Teresa S. Weber: So that bio TRX becomes critical in what we educate on how we teach those providers to use both sets of products, right? So I think this therapeutic wellness category is only going to expand, and you're not going to see the same type of provider as you did two years ago. Your family practice provider, all of the OBGYNs, everyone's expected to understand how to navigate these products and their side effects.
Teresa S. Weber: Wellness category is only going to expand and you're not going to see the same type of a provider issue did two years ago. Your family practice provider. They all have the obgyn, everyone expected to understand how to navigate these products and their side effects and Thats, where biotech really comes in and then I'll let.
Teresa S. Weber: And that's where BioT really comes in. And then I'll let Bob comment on the integration. Yeah, and I think, Teri, you hit on it. I think right now.
Teresa S. Weber: Bob from an R&D integration, Yeah, and I think Terry you hit on it I think right now.
Robert Peterson: Yeah, and I think, Terry, you hit on it. I think right now, when we look at the transaction fee and the, you know, how it isn't going to be material to our year, when you think longer term, it would be great at some point to have to do what we're doing with hysteria to be fully integrated. But at this point, we don't really have a line of sight into executing that plan as yet.
Robert Peterson: When we look at the transaction fee and the like.
Robert Peterson: It isn't going to be material to our year when you think longer term.
Robert Peterson: It would be great at some point to have.
Robert Peterson: To do what we're doing with our with this theory is to be fully integrated but at this point, we don't really have line of sight into and to executing that plan as of yet.
Speaker Change: Got it thank you.
George Arthur Kelly: Your next question comes from George Kelly with Roth M.K.M.
Robert Peterson: Your next question comes from George Kelly with Ralph M can.
George Arthur Kelly: Hey everybody, thanks for taking my questions. So maybe to start with, Esteria, just to follow up on some of the questions that have already been asked, but I'm curious how quickly you expect to shift your core hormone pellet production to that facility.
George Arthur Kelly: Hey, everybody thanks for taking my questions.
George Arthur Kelly: So maybe to start with a stereo just to follow up on some of the questions that have already been asked but I'm curious how quickly you expect to shift here core.
George Arthur Kelly: Hormone pellet.
George Arthur Kelly: Production to that facility.
Robert Peterson: Now it's a really good question you know when you see when we executed the closing date obviously we've been working quite quite diligently to get all the strategic parts up and running and I would just tell you we are we may be seeing a little bit slower uptake in in the q2 range as we have talked about in the past we really want to hit the ground going and hit the ground running I still think we are on a strong pace to deliver in the second half and I I think everything is starting to line up in place I think just the late start for based on the closing has caused a little bit of a of a slowdown in the beginning of q2 Does that answer your question, George?
Speaker Change: No. It's a really good question when you see when we executed the closing date.
Robert Peterson: Obviously, you've been working quite quite diligently to get all of the strategic parts up and running and I would just tell you. We are we may be seeing a little bit slower uptake in our in the Q2 range as we've talked about in the past, we really want to hit the ground going against the ground running I'd still think we're on a strong pace to.
Robert Peterson: Deliver in the second half.
Speaker Change: And I.
Robert Peterson: I think everything is starting to lineup in place I think just a late start.
Robert Peterson: For based on the closing has caused a little bit of a slowdown in the beginning of Q2.
Robert Peterson: Does that answer your question, Georgia.
Robert Peterson: Is it fair to say that by year-end the vast majority of your pellet business will be produced internally?
Robert Peterson: Is it fair to say by year end the vast majority of your pellet business will be produced internally.
Robert Peterson: Okay.
Teresa S. Weber: I think what we're talking about, and what Bob is trying to say is that, you know, when we're looking at state licenses, yes, I'd say the vast majority by the end of the year, George, but the only thing we don't control is the state licenses from California or some of the other states that mandate their own timing and schedule as you convert licenses, and another thing.
Speaker Change: What we're talking about what Bob is trying to say is that you know we're always looking at state licenses, yes, I'd say the vast majority by the end of the year George but the only thing we don't control is the state licensed from California, or some of the other states that mandate their own timing and schedule as you convert licenses.
Robert Peterson: And another thing, George, just to keep you, oh, sorry, go ahead.
Speaker Change: And another thing George just to keep Oh, sorry go ahead.
Teresa S. Weber: Nope. Go ahead, Bob. I interrupted.
Speaker Change: No go ahead, Bob I interrupted.
Robert Peterson: No, no, no. The only other thing I would say is that as we start the conversion process, there will be a little bit of a lag due to the bleed-down of existing inventory within the clinic. So, as Terry mentioned, very clear on how we obtain state licensure, but there could be that slight delay for people who maybe are overindexed on inventory as they bleed down when they start to take on new inventory. That will be another factor we'll have to watch closely. Okay.
Bob: No no no. The only other thing I would say is as we start the converting conversion process, there will be a little bit of a lag also.
Robert Peterson: Due to the bleed down of inventory existing inventory within clinic, so as Terry mentioned.
Robert Peterson: Very clear on the on how we are to.
Robert Peterson: To obtain state licensure, but there could be that slight delay for people, who maybe have are over indexed on inventory as they bleed down when they start to take on new inventory that will be another factor will have to watch closely.
George Arthur Kelly: Okay, that's helpful. And then the next topic I wanted to cover relates to your guidance and commentary about your sort of one-half versus two-half expectations for procedure revenue growth. I'm curious, the 6.6% growth now that you've reported for two consecutive quarters, do you think that's the bottom? And then, as you look to the acceleration that you've talked about in the back half, is that mostly driven by new products? Or is it really just the core business kind of starting to find its momentum again, and new products are more of a 25 and beyond kind of story?
Speaker Change: Okay. That's helpful and then.
George Arthur Kelly: Next topic I wanted to cover as relates to your your guidance and commentary about your sort of one half versus two half expectations on procedure revenue growth.
George Arthur Kelly: I'm curious the six 6% growth now that you've reported for two consecutive quarters do you think that's the bottom.
George Arthur Kelly: And then as you look to the acceleration that you've talked to in the back half.
George Arthur Kelly: Is that mostly driven by new products or is it really just the core business kind of starting to find its momentum again.
George Arthur Kelly: And new products are more of a 25 and beyond kind of story.
Speaker Change: I think we can kind of answer that multiple ways. George so definitely that that Q1 performance was consistent with our expectations and we feel is that we understand our providers that we understand the competitive market and I feel that we're very confident in where those are procedure revenue growth is going to come from.
Teresa S. Weber: I think we can kind of answer that in multiple ways, George. Definitely, that Q1 performance was consistent with our expectations. And we feel as if we understand our providers and we understand the competitive market. And I feel that we're very confident in where that procedure revenue growth is gonna come from in Q2, as well as Q3 and four. So, although we point you to Q3 and four, and we've got solid plans in place and are really looking at the formulas and very comfortable with them for Q3 and Q4, and I'll have Bob talk a little bit about some of the individual programs.
Teresa S. Weber: In Q2, as well as Q3 and four so although we point you to Q3 and four and we got.
Teresa S. Weber: Solid.
Teresa S. Weber: Plans are in place and really looking at that our formulas and very comfortable with them for that Q3, and Q4 and I'll have Bob talk a little bit about some of the individual programs yeah sure.
Teresa S. Weber: Yeah, sure, and George, good question, and we factored the following kinds of pieces into our guidance. I would say that the two big pieces, one is on the procedure side, and I'll just hit the high points, and I can dive into any of them in more depth, but you heard from Terry, you heard from me earlier, the heightened focus on our top-tier growth is absolutely mission-critical for us. We are seeing these performing well, and we expect to have that play through in the second half.
Bob: George Good question and we've factored.
Teresa S. Weber: The following kind of a piece.
Teresa S. Weber: Piece parts into our guidance I would say that the two big pieces. One is on the procedure side and I'll just hit the high points and then I can dive into any of them in more depth, but you heard from Perry you heard from me earlier, the heightened focus on our top tier growth is absolutely mission critical for us.
Teresa S. Weber: We are seeing these performing well and we expect to have that.
Teresa S. Weber: Play through in the second half. Additionally, as I, just mentioned and I won't go into this too much because I've already commented, but we need to be growing new customers and we've seen with the quick starts and the other items that we've mentioned.
Robert Peterson: Additionally, as I just mentioned, and I won't go into this too much because I've already commented, but we need to be growing new customers, and we've seen with the Quick Starts and the other items that we've mentioned, pretty solid uptick there. One that I think is, we didn't dive into too much, but it's how do we drive those existing customers. That may be newer or in the middle of their journey, of their life cycle with us.
Robert Peterson: Solid uptick there one that I think is.
Robert Peterson: Didnt dive into too much but it's how do we drive those existing customers.
Robert Peterson: That may be newer or in the middle of their journey of their lifecycle with us how do we start to drive them.
Robert Peterson: How do we start to drive them, leveraging our sales force and internal data to drive opportunities to really expand within our portfolio? And I think that's a real key for us because the more people we can get into our top tiers, the better we'll perform. And Terry mentioned it earlier, and I would just echo it. We do have a really great sales force that's really battle-tested in this area. And I think that's key to mention. And the only other side of the equation that I would bring up is when we look at neutrals.
Robert Peterson: Leveraging our sales force and internal data to drive opportunities to really expand.
Robert Peterson: Within our portfolio.
Robert Peterson: And I think that's a that's a real key for us because the more people, we can get into our top tiers.
Robert Peterson: The better well performance and Terry mentioned, it earlier and I, just I would just echo what the we do have a really great salesforce, it's really battle tested in this area and I think that's a key dimension and the only other side of the equation that I would bring up is as we look at neutrals.
Robert Peterson: We need to continue to expand Nutris into our existing customer base, continue to make good penetrations, especially among those newer customers and even some of the older customers that may not be acclimated to Nutris. And that's a real focus of our sales force, and we're seeing good uptake there. And then finally, as you know, and we talked about on the prior call, is that conversion from Amazon and from a prior distributor and seeing that growth. Because if we can get that up and running, which we're on pace to do in the second half, that will be very accretive.
Robert Peterson: We need to continue to expand neutrals into our existing customer base.
Robert Peterson: You need to make good penetration, especially in those newer customers and even some of the older customers that may not.
Robert Peterson: Be acclimated to New Jersey, and that's a real focus of our sales force and we're seeing good.
George Arthur Kelly: Okay, that was all helpful info. Thank you.
George Arthur Kelly: Good uptake there and then finally as you know and we've talked about.
George Arthur Kelly: On the prior calls that conversion from Amazon and from our prior distributor and seeing that growth because that should if we can get that up and running which we're on pace to do in the second half that would be.
George Arthur Kelly: Very accretive.
George Arthur Kelly: Okay that was all hopeful for thank you.
Speaker Change: Thank you.
Speaker Change: Is that question session I'd like to turn the conference over back for any closing remarks.
Operator: I would like to turn the conference over back to the audience for any closing remarks.
Speaker Change: We'd like to say, thank you to all of you for joining US we look forward to updating you as the year goes on and on our therapeutic wellness and the.
Teresa S. Weber: We'd like to say thank you to all of you for joining us. We look forward to updating you as the year goes on on our therapeutic wellness and the real positive impact we're seeing on hormone optimization in interest throughout the US. So, looking forward to our next call. Thank you.
Teresa S. Weber: We will positive impact, we're seeing on hormone optimization and the interest throughout the U S. So I'm looking forward to our next call. Thank you. Thank you.
Teresa S. Weber: Yeah.
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