Q1 2024 Verona Pharma PLC Earnings Call
Hello, and welcome to Verona pharma as first quarter 'twenty 'twenty four financial results and operating highlights conference call. At this time, all participants are in a listen only mode.
Earlier this morning for M. A farm Verona pharma issued a press release announcing its financial results for the three months ended March 31st 2024, a copy can be found in the Investor Relations tab on the corporate website Www Dot Verona pharma dotcom.
Before we begin I'd like to remind you that during today's call statements about the company's future expectations plans and prospects are forward looking statements. These forward looking statements are based on management's current expectations. These statements are neither promises nor guarantees and involve known and unknown risks.
Uncertainties and other important factors that may cause our actual results performance or achievements to be materially different from our expectations expressed or implied by the forward looking statements.
Any such forward looking statements represent managements estimates as of the date of this conference call. While the company may elect to update such forward looking statements at some point in the future. It disclaims any obligation to do so even if subsequent events cause its views to change either.
As a reminder, this call is being recorded and will remain available for 90 days.
Speaker Change: I would now like to turn the call over to Dr. David Zucker Delhi, Chief Executive Officer. Please go ahead.
Speaker Change: Thank you and welcome everyone to today's call.
Speaker Change: With me today are Mark Hahn, our Chief Financial Officer Dr.
Speaker Change: Dr. Kathy Ricard, our Chief Medical Officer.
Speaker Change: Chris Martin our Chief commercial officer.
Speaker Change: And Doctor care row, our Chief Development Officer.
Speaker Change: In the first quarter, we continued to make excellent progress on preparations for the planned commercialization.
Speaker Change: <unk> for the maintenance treatment of COPD.
Speaker Change: As you know the F D. A signed up with a target action date for N P. Pentron.
Speaker Change: 26.
Speaker Change: And has indicated they are not planning to hold an advisory Committee meeting.
Speaker Change: We are finalizing our activities for a potential U S launch of benzene pension in the third quarter of this year and look forward to continuing our work with the FDA during the review.
Speaker Change: If approved and the pension is expected to be the first novel inhaled mechanism available for the maintenance treatment of COPD in over 20 years.
Speaker Change: We believe its dual mechanism, providing bronchodilator and non stroy it'll anti inflammatory effects has the potential to change the treatment paradigm for C. O P D.
Speaker Change: Currently more than 319 million patients suffer from COPD worldwide.
Speaker Change: It is the third leading cause of death globally.
Speaker Change: Despite the availability of existing COPD treatments in the U S.
Speaker Change: Approximately 50% of the $8 6 million maintenance treated patients experienced persistent symptom or more than 24 days per month.
Speaker Change: In addition, approximately 60% of patients who could be considered maximally treated on dual bronchodilator or triple therapy are dissatisfied with their treatment.
Speaker Change: Highlight health care providers continued need for new and effective COPD therapies to provide relief to patients.
Speaker Change: We continue to make excellent progress on our commercial launch preparation.
Speaker Change: And are now finalizing key aspects, including sales force deployment strategy.
Speaker Change: Pricing distribution.
Speaker Change: Services programs health care professional and patient engagement plan.
Speaker Change: And strengthening our internal data infrastructure capabilities to enable quick and actionable insights during lunch.
Speaker Change: We have also advanced our disease awareness campaign Unspoken C O P D.
Speaker Change: This campaign is actively highlighting the severe impact of C. O P. D on patients' lives and encourages H C piece to engage patients and better dialogue to help optimize their care.
Speaker Change: Through the first quarter of this year.
Speaker Change: Spoken C O P. D reached 85% of targeted H C piece and over 2000 H C. P is engaged with the campaign website.
Speaker Change: In summary, we are in a strong position to successfully launch empty pantry pending approval in June.
Speaker Change: Our confidence is based on the novel profile of that country.
Speaker Change: The significant unmet need in COPD are extensive commercial preparations and the deep experience and capabilities of the Verona team.
Speaker Change: As announced last week, we will present pooled analysis from the enhance phase III study in eight posters, including two oral symposia at the Ats Conference later this month.
Speaker Change: The posters will highlight additional pooled analysis of the phase III enhance study with empty pension for the treatment of COPD demonstrating improvements in lung function symptoms and quality of life measures.
Speaker Change: A pooled analysis demonstrating reductions in the rate and risk of exacerbations with empty pension will be presented as part of the late breaking many symposium designed to highlight new breakthroughs.
Speaker Change: We will also host an exhibition booth exploring the role of possible death rate.
Speaker Change: In inflammation and lung function impairment and C O P D.
Speaker Change: As well as three innovation hub presentation led by clinical experts.
Speaker Change: In addition to the planned U S launch event at veteran we are working to initiate two phase two programs with MTF entrant in the second half of this year.
Speaker Change: First we are developing a fixed dose combination formulation with empty pantry and glycol perlite Lama for the maintenance treatment of COPD delivered via another nebulizer.
Speaker Change: Upon confirmation of an adequate fixed dose combination formulation, we plan to submit it in I N D to the FDA in the second half of 'twenty 'twenty, four and initiate a phase II clinical study intended to support dose escalation for phase III.
Speaker Change: Additionally, based on the clinical profile density pension observed in COPD patients, including a reduction in exacerbation rate and risk and improvement in symptoms of cough sputum.
Speaker Change: We believe <unk> could potentially be an effective treatment for non cystic fibrosis bronchiectasis.
Speaker Change: This is a severe chronic condition that affects up to 500000 patients in the U S and there is currently no approved therapy.
Speaker Change: We plan to start a phase II clinical trial to assess the efficacy and safety of nebulizer empty centering in patients with non CF bronchiectasis in the second half of 2024.
Speaker Change: Moving onto our finances I'm pleased to report on our strong balance sheet.
Speaker Change: In addition to over $250 million of cash on hand at the end of March we recently strengthened our balance sheet and enhanced our financial flexibility through a $650 million strategic financing arrangement with Oaktree capital and owners.
Speaker Change: We refinanced our $400 million debt facility to one with a lower overall cost of capital and more favorable financial covenants.
Speaker Change: In addition.
Speaker Change: We entered into a 250 million dollar kept revenue interest sales transaction with repayment based on a percentage of future anti pentron revenues.
Speaker Change: Withdraws available under this facility at approval, we expect to have approximately $400 million at launch.
Speaker Change: And potential access to an additional $425 million, giving us a runway beyond 2026.
Speaker Change: Lastly.
Speaker Change: And before I turn the call over to Mark to review our financial results for the first quarter of 2024.
Mark W. Hahn: I'd like to mention will be entering our quiet period, leading into the June 26, <unk> per day and so we welcome your questions in the Q&A session.
Mark W. Hahn: With that Martin. Please go ahead.
Mark W. Hahn: Thank you Dave.
Mark W. Hahn: We ended the first quarter of 2024 with $254 9 million in cash and equivalents, we believe that our balance sheet remains strong and with the current cash currently on hand, and funding anticipated to be available under the $650 million strategic financing with Oaktree owners, we expect to have sufficient.
Mark W. Hahn: [laughter] runway beyond 2026.
Mark W. Hahn: The planned commercial launch against the pension in the U S and our two new phase III programs, Dave discussed a few moments ago.
Mark W. Hahn: Let me spend a minute discussing key terms.
Speaker Change: The financing package our primary goals in establishing this new package will provide additional financial flexibility to the company as we look to launch and see pension.
Mark W. Hahn: Increase the quantum of cash on hand at launch, while decreasing covenant risk and without diluting, our shareholders and providing lower cost of capital.
Mark W. Hahn: The financing consists of a refinance of the existing $400 million facility, we have in place with Oxford and Hercules and provides for a $250 million cap revenue interest sale, which we referred to as the ripsaw.
Mark W. Hahn: Under the terms of the debt facility, we are drawing $55 million of close in order to repay and retire the Oxford Hercules loan facility.
Mark W. Hahn: We will be eligible to draw an additional $70 million at approval.
Mark W. Hahn: With $175 million available in two separate milestone based tranches.
Mark W. Hahn: And $100 million in future availability to support strategic initiatives.
Mark W. Hahn: Draws under the facility bear interest at 11% per annum with interest only payments for for five years and 100% of the principal due thereafter.
Mark W. Hahn: Additionally, the covenant structure has been simplified and eased compared with the existing facility.
Mark W. Hahn: Under the ripsaw.
Mark W. Hahn: We will receive $100 million of non approval with an additional $150 million available to draw at our discretion upon achieving certain commercial milestones.
Mark W. Hahn: The revenue interest financing rate ranges from 5% of proceeds we received from ex U S. Licensees. So we may engage during the term of the ripsaw outside of the U S.
Mark W. Hahn: 265% global net sales events, he pension made by the company.
Mark W. Hahn: The total revenue interest financing payable by the company to Oaktree and owners is capped at 175 times the amount funded.
Mark W. Hahn: With the ability to redeem the rips that at much lower multiples within the first three years from funding.
Mark W. Hahn: This facility was designed with an expectation that if drawn in fall it would be retired and approximately six years.
Speaker Change: Now back to the results.
Speaker Change: For the quarter ended March 31, 2024, net loss after tax was $25 $8 million compared to a net loss after tax of $16 $7 million for the same period in 2023.
Speaker Change: This represents a loss four cents per ordinary share.
Mark W. Hahn: Our 32 cents per <unk> for the quarter compared to a loss of three cents per ordinary share or <unk> 22 cents for <unk> for the first quarter of 2023.
Mark W. Hahn: Research and development costs.
Mark W. Hahn: $6 $8 million for the quarter ended March 31 2024.
Mark W. Hahn: Compared to the $12 $6 million reported for the first quarter of 2023.
Mark W. Hahn: This decrease was primarily due to expenses of $7 2 million in the first quarter of 2023 for finalizing all matters related to the phase III enhanced program.
Mark W. Hahn: As the program was completed in 2023, no similar costs were incurred in 2024.
Mark W. Hahn: This decrease was partially offset by $1 $5 million, a preapproval API manufacturing related costs as well as an increase of <unk> 7 million in people related costs, including share based compensation.
Mark W. Hahn: Selling general and administrative expenses were $24 million for the <unk>.
Mark W. Hahn: <unk>.
Mark W. Hahn: Ended March 31, 2024, compared to $9 6 million reported for the same period in 2023.
Mark W. Hahn: This increase was driven primarily by increases of $4 $6 million relate.
Mark W. Hahn: Related to marketing commercial preparation and other pre commercial activities.
Mark W. Hahn: $1 $1 million related to professional fees consulting costs and other administrative expenses.
Mark W. Hahn: Which support our continued growth and evolution of the business.
Mark W. Hahn: And <unk> $7 million related to the continued build out of our information technology infrastructure.
Mark W. Hahn: Additionally, people related costs increased by $4 1 million, including share based compensation as we increased our head count in our commercial and support functions ahead of the planned commercial launch I'll now turn the call back to the operator for the Q&A.
Speaker Change: Thank you very much we will now begin our question and answer session to ask a question you May Press Star then one on your telephone keypad, if youre using a speaker phone. Please pick up your handset before pressing the keys to withdraw your question at any time you May Press Star then two.
Mark W. Hahn: Today's first question comes from Andrew Tsai with Jefferies. Please go ahead.
Andrew Tsai: Hi, Thanks, Good morning couple of questions on our side. So the first one is on the review Regeneron.
Andrew Tsai: Or do you feel after yours recently said the FDA notified regeneron, but do so it could be extended because after you wanted more information I know youre in discussions with the FDA routinely maybe they ask you questions a lot, but just wanted to confirm the FDA has not given you any inclination and cease producer.
Andrew Tsai: It could be extended as well.
Speaker Change: Good morning, Andrew Thanks for the question.
Speaker Change: I would just say that we are continuing to work towards the June 20th Medusa.
Andrew Tsai: And so that's.
Speaker Change: What we're what we know and what we're doing.
Speaker Change: Okay and.
Andrew Tsai: The estimates for <unk> ER is very high the sell side estimates. So the question is if <unk> does get approved around the same time as you do do you think physicians will be writing more scripts for end to end, so central or <unk> on a volume basis immediately upon launch and why do you think that's the key.
Speaker Change: Yes.
Speaker Change: Oh thanks.
Speaker Change: My General thoughts and then Chris can weigh in as well you know I think that as everybody knows the picks it up.
Speaker Change: Data supports its use in a subset of patients those with higher eosinophil counts.
Speaker Change: Accounts, which I think has been estimated in the U S to involve around 300000 patients that are currently treated with that of the $8 6 million.
Christopher Martin: That are under maintenance treatment in the U S. So it does look like it's targeted at a fairly small portion of the overall patient population and you know of course and defend trend.
Christopher Martin: We view it as used to a much broader has studied.
Christopher Martin: And it actually studied in patients that were on Lama or a LABA and around 20% on a LABA Ics and that makes up the bulk of the majority of the patients that are treated in the U S. So we see at that location quite.
Christopher Martin: Quite wide.
Christopher Martin: And so we expect utilization across that spectrum of patients.
Christopher Martin: I don't know, Chris do you want to add anything to that.
Christopher Martin: Yeah, I think I think the only thing I would add Dave is we look at our market research, which again Andrew has over 1000 physicians today as Dave described they CNC conference utility across the spectrum in patients that have persistent symptoms. You know one thing that is a very important feature events event for us because it has both PD three and PD four.
Christopher Martin: Activity, you get both broncho dilation and anti inflammatory effects that broncho dilation effect is extremely important for both physicians and patients because these patients number one symptom. They complain about is disappear. So the ability to help these patients breathe better has a much broader application across this patient set.
Christopher Martin: And physician set that we believe do picks and does as Dave stated you know NC Pentron has broad utility across the $8 6 million patients that exist are treated with maintenance therapies today and remember at least half of those patients are still symptomatic. So we believe that empty function based on our market research fits in very nice.
Christopher Martin: Fleet of the treatment algorithm for the physicians at that point.
Speaker Change: Okay got it and last really quick question is.
Speaker Change: How much do you think it will take for the launch to breakeven.
Speaker Change: Mark you want to comment yeah, Yeah, Andrew I think we've addressed this on previous calls and I think it's not just ANSI factory I think its any.
Mark W. Hahn: Company like for owner that has a single asset.
Mark W. Hahn: No discovery engine.
Speaker Change: No lab space.
Mark W. Hahn: Relatively lean overhead structure I think in that situation sales in the range of $250 million to $300 million run rate is what it takes to get to breakeven and profitability.
Speaker Change: Yeah.
Speaker Change: Great. Okay. Good luck I'm excited for you.
Speaker Change: Thanks, so much thank.
Speaker Change: Thank you. The next question comes from Yasmin Rahimi with Piper Sandler. Please go ahead.
Yasmeen Rahimi: Yes, I mean your line is open.
Yasmeen Rahimi: Sorry about that I was on mute.
Yasmeen Rahimi: Team I guess the first question I have is youre going to enter our quiet period at the end of today and it appears.
Yasmeen Rahimi: In between now and June 26, we have like two more months left so why enter quiet periods. So early.
Yasmeen Rahimi: What what was the rationale for kind of stopping the communication here that's why.
Yasmeen Rahimi: Is that because youre going to have more interactions with the agency and you don't want to give us a play by play like what's the rationale that's one.
Yasmeen Rahimi: Second one is with this strategic financing.
Yasmeen Rahimi: It also makes me think of it it's a great deal but.
Yasmeen Rahimi: What were the optionality of doing that now versus.
Yasmeen Rahimi: Now an equity raise and a later point of time do you think that this financing will give us sufficient capital.
Yasmeen Rahimi: Well pull successful launch so just again timing of this deal.
Yasmeen Rahimi: And maybe more on why now why them versus maybe maybe other optionality and then the third one is is there any new data points or key things that we're going to learn from a T. S.
Speaker Change: Strong lineup of presentations that are gonna be cheap I appreciate taking my three questions sorry, I'll move back into the queue.
Speaker Change: Good morning, and thanks very much for the questions. So maybe I'll just touch on the quiet periods and then I'll turn it over to Mark for the strategic financing and then Tara can talk about the data at Ats.
Speaker Change: I think that with this call. We we have been reviewing exactly where we are honor.
Mark W. Hahn: On our commercial launch plans and where we are on our development programs.
Mark W. Hahn: Of course, just announcing the financing as well as you point out the last couple of months can be quite active with the FDA as well and so I think we've covered everything and hopefully you're up to speed on where we are and so I think that overall, it's the it.
Yasmeen Rahimi: It's a time, where we're going to be focused on our execution.
Yasmeen Rahimi: And really have no substantial updates until really produce huh.
Yasmeen Rahimi: So that's our perspective on the quiet period I don't know Mark do you want to talk about the strategic financing timing.
Mark W. Hahn: Sure sure so I think so.
Mark W. Hahn: In the past is people have asked me about our financing strategy and what we'd like to do.
Mark W. Hahn: And part of it is that we want to make.
Mark W. Hahn: To make sure that we always have sufficient capital and we never get into a situation where theres a financing overhang.
Mark W. Hahn: Theres been talk amongst <unk>.
Mark W. Hahn: Investors over the past couple of quarters.
Mark W. Hahn: Do you have enough cash on hand, those types of questions and so we wanted to address that situation make sure that there was no.
Mark W. Hahn: No financing overhang at least as far as we are concerned.
Mark W. Hahn: And one of the things that we did.
Mark W. Hahn: Exploratory.
Mark W. Hahn: If that's a word.
Mark W. Hahn: Exploratory basins, we went out and talked to a royalty lenders. This financing package presented itself and the terms are in my opinion quite nice.
Mark W. Hahn: And one of the things that we're doing is we will have at launch an additional.
Mark W. Hahn: Almost $100 million of cash because of the bringing the ripsaw.
Mark W. Hahn: And yet we're lowering the amount of debt.
Mark W. Hahn: With fixed repayment terms and subject to.
Mark W. Hahn: To covenant structures is actually being lowered by about $25 million.
Mark W. Hahn: And we've also taken those covenants.
Mark W. Hahn: Significantly.
Mark W. Hahn: Made them more favorable for the company. So I think you take that whole package of of a rationale together and that's why we did it and that's why we did it now and we when we get to approval, we will be 100% focused on marsh, we wont be focused on raising capital and distracting the team and we're in those early days of launch.
Mark W. Hahn: Aaron.
Aaron: Thanks Mark.
Aaron: I think what's coming at Ats that we're quite excited about talking more about this data is.
Aaron: More analyses of our exacerbation data, including exacerbation reduction across all baseline eosinophil subgroups. So I think that's important data to get out there.
Aaron: Progression from gold group be it gold group he and what this analysis is looking at is essentially <unk>.
Aaron: Regression of patients from an infrequent exacerbate or to a frequent exacerbated and showing a strong signal for a delayed progression there within the center and it yeah through our enhanced data.
Aaron: In the Ats presentation. We're also doing a deep dive into our data lung function and quality of life, an exacerbation in the subgroup already taking a llama background medications for the Lama subgroup and also separately the LABA Ics subgroup as these do represent the two largest classes of.
Aaron: Therapies that are being used today in the United States.
Aaron: And then finally, we have some additional data looking at the Disney impact within the center and of course, showing a very large and significant improvement in dyspnea.
Aaron: Across the studies and the enhanced program. So please do.
Mark W. Hahn: Follow our Ats presentation and have a look at that.
Speaker Change: Great. Thank you so much.
Mark W. Hahn: Thank you. The next question is from Tom Shrader with B T. I G. Please go ahead.
Thomas Eugene Shrader: Good morning.
Thomas Eugene Shrader: Thanks for taking the question.
Thomas Eugene Shrader: Back to the deal a little bit or are you required to take anything other than the 55 to refinance the other deal and should we assume that you're going to take I think it is 100 plus seven to get approval.
Thomas Eugene Shrader: The odds are very high you take all of that at approval and then I have a.
Thomas Eugene Shrader: <unk> disease question.
Speaker Change: Oh yeah.
Speaker Change: Yeah. So.
Speaker Change: She didn't say, it's really required I think the expectation should be that we would take the $100 rip so at approval and the $70 billion under the debt deal and approval all the other milestones and potential tranche are completely at our discretion.
Speaker Change: Great. Thank you and then a quick question for Chris.
Christopher Martin: The big focus on disease awareness is that exacerbation focused where do you think patients are given there's really no. Good drug for exacerbations now on understanding that they might be able to treat these things early is that kind of a focus from your ats headline. It's it seems like it might be but is that really what your focus.
Christopher Martin: On what to do with the disease awareness.
Speaker Change: Yeah, Tom. Thank you for the question I think when we when we think about the insights that we've learned from patients and physicians is over the course of the last year, it's really about persistent symptoms with these patients and one of the things that we see in the data in the literature is that patients report that they are persistently symptomatic for.
Christopher Martin: Up to as Dave described earlier at least 24 days a month you have 60% of patients on maximal treatment that are dissatisfied with their current therapies and you know the point of other unspoken C. O. P. D campaign is to really highlight how persistent symptoms exist in these patients and how their existing and get the physician.
Christopher Martin: To engage in a more meaningful dialogue with the patient to understand if there needs to be a treatment change and how that patient wants to progress within the treatment.
Christopher Martin: Algorithm you know the important thing here is what we've learned about exacerbations in symptoms as exacerbations or just a worsening of symptoms and when we talk to patients what they tell US is they care about the day to day activities baked here about being able to walk outside to the mailbox to care about being able to play with a grandchild. These activities are things that are done.
Speaker Change: With by the ability to breathe and you know are the fact that <unk> is a PD <unk> PD for mechanism allows for both you know the long term non steroidal anti inflammatory effects to potentially occur, but also allows the physician and the patient to experience broncho dilation through that PD, three mechanism, which that broncho dilation.
Speaker Change: Should open the Airways are up and allow that patient to breathe better and potentially get back to some of the activities that he or she is hoping to gain.
Speaker Change: Okay, great. Thank you that's very useful.
Speaker Change: Thank you. The next question comes from Robyn <unk> with H C. Wainwright. Please go ahead.
Robyn: Hi, Thanks, very much for taking my questions just a couple of clarification points around the ripsaw.
Robyn: As stated in the press release that the.
Robyn: Total repayment amount will be modified if you wind up repaying. It ahead of schedule can you just give us some additional clarity on precisely how that mechanism works and what formula applies in such a case.
Speaker Change: Sure sure around so the.
Speaker Change: There is a hard cap on repayments, so they'll get six 5%.
Speaker Change: Sales here in the U S and 5% of any monies, we bring in from ex U S partners.
Speaker Change:
Speaker Change: Until they receive a return of $1 75 X they're there.
Speaker Change: Their investment.
Speaker Change: Yeah.
Speaker Change: Now if we pay the if we want to repay earlier.
Speaker Change: We can do that and there's a different level of repayment amount each year, so that cat becomes much lower.
Speaker Change: Depending on how early it is so in the first year of the caps lowest secular sold but higher third year somewhat higher and then beyond that it's at the 175 times I don't think we've disclosed the specific.
Speaker Change: The specific caps.
Speaker Change: Caps in those earlier years, but it could be at our choice.
Speaker Change: It could be paid at a much lower cost in the first couple of years.
Speaker Change: But at least where things currently stand right now, especially given the.
Speaker Change: Royalty percentage.
Speaker Change: The base case scenario would probably be that you.
Speaker Change: Hold the debt until maturity is that correct.
Speaker Change: Oh, Yeah, I think that depends on how you have your sales ramp built into your model.
Speaker Change: But I think as you look at the ramp in launch of NC Pentron.
Speaker Change: For first half to make the decision as to whether you think it will take both draws or just one and then how quickly the revenue will be coming in from from me that she pension sales in order to repay it.
Speaker Change: I'm also related to the facility.
Speaker Change: You know this kind of echoes questions that were asked earlier, but.
Speaker Change: Were there any specific factors as you looked at.
Speaker Change: Overall market and the.
Speaker Change: The need for the launch that led you to put this in place now I just wanted to see if there you know there was any new information that.
Speaker Change: <unk> indicated to you that.
Speaker Change: Commercial activities would need to be more intensive in any way or anything like that.
Speaker Change: Oh, yeah, great Great question so.
Speaker Change: We've said.
Speaker Change: Over the last couple of years that when we designed the financing strategy for Corona, we did that based on understanding the full operating model and the expectations of the cost of launch the field deployment the amount of marketing support that it would take and we felt even before this financing that we are very well capitalized.
Speaker Change: In order to to execute on that.
Speaker Change: This financing I think you should look at it it's really providing additional financial flexibility for us.
Speaker Change: In terms of if we.
Speaker Change: We're early in the launch and we say Oh, we could we could accelerate sales by stepping on the gas in this area. It provides us with more capital to do that or if other assets present themselves that we were interested in pursuing to broaden the portfolio. It provides us flexibility to do that as well.
Speaker Change: Yeah.
Speaker Change: And then just lastly, following on from that.
Speaker Change: I wanted to know whether there's anything we should read into this with respect to how are you folks are thinking about the DTC advertising elements of the commercialization equation.
Speaker Change: And if she we should be thinking about.
Speaker Change: This is being potentially indicative of your.
Speaker Change: Examination of the scenario in which you would elect to bring in DTC advertising earlier, rather than later for that really no. One really doesn't have anything to do with the other and if you could comment at all on you know what you expect the triggers to be for you are deciding to begin DTC advertising.
Speaker Change: And at what stage of the emphasis entering launch we might see that thank you.
Speaker Change: Okay. So maybe I'll start on from the financial perspective, and Chris can talk about the DTC component and I would say around with respect to the financing element of the question.
Speaker Change: This financing has really nothing to do with.
Speaker Change: Any known plans or ideas about any any any.
Speaker Change: <unk> DTC other than whats on plan, but maybe Chris you can talk about how youre thinking about DTC.
Christopher Martin: Yeah, Yeah Rama appreciate the question you know when we when we over the last year I think we've talked 2000.
Christopher Martin: Thousands of patients now either through looking at charts or through a quantitative research and what we continue to see US just like we see with the physicians this tremendous unmet need for something novel and new that can help the patient potentially breathe better and prevent some of the long term effects of inflammation with them.
Christopher Martin: Within the patient as well you know as we think about going into launch we have always planned to be able to reach the patient in various channels I considered DTC as you described potentially as TV ads on you know your your local cable or satellite TV networks, but reaching the patients exist.
Christopher Martin: And a lot of other ways today.
Christopher Martin: We plan to be able to reach the patient today in a more direct to patient manner, which is if you think about that it's banner advertisements on the rate.
Speaker Change: Inter.
Speaker Change: Internet places, it's reaching patients potentially through social channels and and that is something that we've always planned to do over the course of the last.
Speaker Change: Last 18 months and I think what we continue to see over the course of our research is the tremendous interest that exists with NC Pentron you know the interest with Hcp's is very high but the interest with patients is also very high.
Speaker Change: So our launch plans have always include included engaging the patient in some former fashion over the course of the next 12 to 18 months I think the important thing as we think about how and when you engage patients is you have to think about making sure that our physicians understand what the molecule is how the molecule works and then how to get the molecule for their patients.
Speaker Change: Because if we do have patients going in asking for NC center, and we need that doctor to be able to actually prescribe it.
Speaker Change: And so that's something that when it comes to a timing standpoint, we have to make sure that the physicians have the right awareness before we fully engage all patient activation across the launch.
Speaker Change: Thank you very much.
Speaker Change: Thank you. This concludes our question and answer session I would now like to turn the conference back over to David Zucker Daly for closing remarks.
Speaker Change: Thank you everyone for joining us today and for your questions. I think in conclusion, we are very confident that our data support approval event pension maintenance treatment of COPD and as you've heard today, we're very well positioned for a successful launch.
Speaker Change: We look forward to the upcoming Paducah date of June 26, and updating you.
Speaker Change: As we proceed so I have a great day.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.
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