Q2 2024 Biote Corp Earnings Call

Good day and welcome to the BioTEA Second 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.

Operator: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touchstone 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 Simon Serowiecki, Investor Relations. Please go ahead. Thank you for joining us today.

After today's presentation, there will be an opportunity to ask questions.

To ask a question, you may press star, then one on a touchstone phone.

To withdraw your question, please press star, then too.

Please note this event is being recorded.

I would now like to turn the conference over to Szymon Serowiecki.

Szymon Serowiecki: Serowiecki, Investor Relations, please go ahead. Thank you for joining us today. It's afternoon, about the published financial results for the second quarter under June 30, 2024. This news releases available in the Investor Relations section of the company's website.

Szymon Serowiecki: This afternoon, BioNTech published financial results for the second quarter ending June 30th, 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.

Speaker Change: Terry Weber, Chief Executive Officer, and Bob Peterson, Chief Financial Officer, will host today's call.

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 Sanctuary Results, Future Performance Degrees Opportunities, Business Outlook, Strategies, goals, vision development, manufacturing, commercialization activities, regulatory process operations, the effect of macroeconomic resistance, business, those sorts of operations, financial conditions, and other matters. These statements are not guaranteed by your performance. They're subject to a variety of risks and guarantees, some of which are beyond the company's control. Actual results could differ materially, and expectations reflect in any photo look like anything.

Speaker Change: So we'll get started, I'd like to remind everyone that Magic will make Samar's turn to call, and who are forward-looking statements regarding the long other things.

Speaker Change: The company's financial results feature performance growth opportunities, business outlook, strategies, goals, vision development, manufacturing and commercialization activities, regulatory process operations, the effect of macroeconomic conditions on its business, results of operations, financial conditions, and other matters.

Speaker Change: These statements are not guarantees of future performance. They are subject to a variety of risks and uncertainties, some of which are beyond the company's control.

Speaker Change: Actual results could differ materially from expectations reflected in any photo of the exams.

Szymon Serowiecki: The examines are substitutes for the strategies and assumptions that are based on measurement curve expectations as today, and Fauzi undertakes an obligation to update them in the future. Therefore, this sandwich should not be your light upon, except in the company's views as of any subsequent day.

Speaker Change: These statements are subject to risks, uncertainties, and assumptions that are based on management current expectations as of today. Biote undertakes an obligation to update them in the future. Therefore, these statements should not be relied upon and should represent the company's views as of any subsequent date.

Szymon Serowiecki: For discussion of risks and other important factors that could affect our actual results, please refer to our ICC filings, available on the ICC's website and the Investor Relations section of our website, as well as risks and other important factors discussed in the earnings release. Management will also refer to adjusted EBITDA, which is a non-gap financial measure, to provide additional information to investors. Reconciliation of the non-FCGAP measure is provided in the earnings release, with the primary differences being stock-based compensation, fair value-adjustment assistance and liabilities, transaction-related expenses, and other non-operating expenses. Please refer to our second quarter 2024 earnings release for reconciliation of just the EBITDA to net income, the closest comparable gap measure. I will now turn the call over to Terry Weber.

Speaker Change: Prescussion risks around the important factors that could affect their actual results, please refer to their SEC filings, available on the SEC website and the Investor Relations section of our website as well as risks around the important factors discussed in their experience.

Speaker Change: Manager will also refer to adjusted EBITDA, which is a non- GAAP financial measure to provide additional information to investors.

Speaker Change: Reconciliation of the non-F2GAP measure is provided in earnings release, with the primary differences being stock-based compensation, fair value-adjustment to certain liabilities, transaction-related expenses, and other non-operating expenses.

Speaker Change: Please refer to our second quarter 2020-24 earnings release for reconciliation of just a deep death to net income, the coast's comparable gap measure. I will not turn the call over to Teddy Weber.

Terry 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 answer your questions during the Q&A session following our prepared remarks. Biote generated solid financial performance in the second quarter, highlighted by a sequential increase in procedure revenue growth.

Teddy 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.

Speaker Change: Mark Beer, our executive chairman, is also on today's fall to help answer your questions during the Q&A session following our prepared remarks.

Speaker Change: 5T generated solid financial performance in the second quarter, highlighted by a sequential increase in procedure revenue growth.

Terry Weber: This improvement reflected our strategic focus on driving worlds from our top to your accounts, expanding our practitioner network, and optimizing new clinic success through our Quick Start program. In the first half of 2024, we added approximately 30 percent more new clinics on a year-over-year basis, with significant growth in new clinics achieving Quick Start. We have found that the early success generated by clinics that achieve quick start status translates into stronger clinic performance over time.

Speaker Change: This improvement reflected our strategic focus on driving growth from our top-tier accounts, expanding our practitioner network, and optimizing new clinic success through our Quick Start program.

Speaker Change: In the first half of 2024, we added approximately 30% more new clinics on a year-over-year basis, with significant growth in new clinics achieving quick starts.

Speaker Change: We have found that the early success generated by clinics that achieve quick start status translates into stronger clinic performance over time.

Terry Weber: As a result, we continue to work closely with our new providers to optimize the launch of their hormone and therapeutic wellness practice. We also achieved solid growth in profit and adjusted EBITDA, even as we selectively increased our investments in key marketing and sales initiatives to enhance our long-term growth opportunities. These investments included our annual provider conference, where we strengthen engagement with our top practitioners. We spent two and a half days with over 500 practitioners teaching advanced concepts and therapeutic wellness. Even with these strategic investments, we are on track to achieve our 2024 financial guidance.

Speaker Change: As a result, we continue to work closely with our new providers to optimize the launch of their hormone and therapeutic wellness practices.

Speaker Change: We also achieved solid growth profit and adjusted EBITDA, even as we selectively increased our investments in key marketing and sales initiatives to enhance our long-term growth opportunities.

Speaker Change: These investments included our annual provider conference, where we strengthen engagement with our top practitioners.

Speaker Change: We spent two and a half days with over 500 practitioners teaching advanced concepts and therapeutic wellness.

Speaker Change: Even with these strategic investments, we remain on track to achieve our 2024 financial guidance.

Terry Weber: The phase launch of BioTRX across our network continues to progress well, with approximately 600 clinics now enrolled. We believe our BioTRX platform represents a unique and differentiated approach to care in the hormone and therapeutic wellness market. In addition to an expanded range of products and treatments, BioTRX supports practitioners with a comprehensive portfolio of advanced technical tools, support, training, and educational resources, which we believe separates us from our competitors. Over the next several weeks, we will introduce several major enhancements to the biotech method, expand on our science-based approach to care, with these enhancements for confidence that bioteal and enable practitioners to deliver an even higher level of personalized medicine for their patients. First, we'll expand our wellness lab panels to utilize the latest technology, liquid chromatography and mass spectrometry, for blood sample analysis. These additional lab panels broaden our testing capabilities while providing greater testing sensitivity and accuracy.

Speaker Change: The phase launch of Bio-TRX across our network continues to progress well with approximately 600 clinics now enrolled.

Speaker Change: We believe our ViOTRX platform represents a unique and differentiated approach to care in the long and therapeutic wellness market.

Speaker Change: In addition to an extended range of products and treatments, BioTRX supports practitioners with a comprehensive portfolio of advanced technical tools, support, training and educational resources, which we believe separates us from our competitors.

Speaker Change: Over the next several weeks, we will introduce several major enhancements to the biochem method, expand on our science-based approach to care.

Speaker Change: With these enhancements, we're confident that BioTE will enable practitioners to deliver an even higher level of holistic, personalized medicine for their patients.

Speaker Change: First, we'll expand our wellness lab panels to utilize the latest technology with quick chromatography and mass spectrometry from blood sample analysis.

Speaker Change: Beauty's additional lab panels brought in our testing capabilities while providing greater testing sensitivity and accuracy.

Terry Weber: These advantages will enable practitioners to provide more precise dosing that addresses a wider range of treatments and delivers better health outcomes for patients. To further enhance clinical decision making, we will update our proprietary software with new functionality to deliver even more individualized precision patient care. For example, our updated clinical decision support software features enhanced algorithms for ongoing patient management, continuously adapting to a patient's evolving health needs. We are also broadening our bio TRX offerings across key therapeutic categories.

Speaker Change: These advantages will enable practitioners to provide more precise dosing that addresses a wider range of treatments and delivers better health outcomes for patients.

Speaker Change: To further enhance clinical decision making, we will update our proprietary software with new functionality to deliver even more individualized precision patient care.

Speaker Change: For example, our updated clinical decision support software features enhanced algorithms for ongoing patient management, continuously adapting to a patient's evolving health needs.

Speaker Change: We are also broadening our bio PRX offerings across key therapeutic categories.

Terry Weber: We will introduce new offerings in the areas of body composition, sexual wellness, non-pellet hormone optimization, and thyroid and autoimmune conditions. These new products complement our existing therapies, elevating our value proposition, and enabling more comprehensive patient care. Finally, we will further bolster our support for practitioners with enhanced tools and procedures, including a neutral car propellant delivery and new techniques for pellet insertion. As always, Biotea will continue to provide an unmatched level of education and training, covering a broad spectrum of hormone and therapeutic wellness.

Speaker Change: We will introduce new offerings in the areas of body composition, sexual wellness, non-pellet hormone optimization, and thyroid and autoimmune conditions.

Speaker Change: These new products complement our existing therapies, elevating our value proposition and enabling more comprehensive patient care.

Speaker Change: Finally, we will further bolster our support for practitioners with enhanced tools and procedures, including a neutral car propellant delivery and new techniques for pellet insertion.

Speaker Change: As always, biology will continue to provide an unmatched level of education and training, covering a broad spectrum of hormones and therapeutic wellness.

Terry Weber: The integration of Steeria Health into our operations continues to progress smoothly. We've been pleased with the positive feedback we're hearing from our practitioners, who value the capabilities that exterior health adds to our business. As we continue the integration process, we remain focused on expanding Astera Health licenses to additional states, as well as driving long-term manufacturing cost efficiency. During the second quarter, we were pleased to conclude outstanding litigation with two large shareholders.

Speaker Change: The integration of Asteria Health into our operations continues to progress smoothly. We've been pleased with the positive feedback we're hearing from our practitioners, who value the capabilities that Asteria Health adds to our business.

Speaker Change: As we continue the integration process, we remain focused on expanding Astera Health's licenses to additional states, as well as driving long-term manufacturing cost efficiencies.

Speaker Change: During the second quarter, we were pleased to conclude outstanding litigation with two large shareholders. These agreements eliminate the time and expense associated with litigation and build long-term shareholder value through significant share repurchases.

Terry Weber: These agreements eliminate the time and expense associated with litigation and build long-term shareholder value through significant share repurchases. Bob will provide more information in his remarks. In summary, Biote continues to make solid progress in advancing our strategic objectives, and we remain on track to deliver our 2024 financial guidance. I'll now turn the call over to Bob to discuss our second quarter financial results and provide our outlook for 2024.

Speaker Change: Bob will provide more information in his remarks.

Bob Peterson: In summary, BioTE continues to make solid progress in advancing our strategic objectives, and we remain on track to deliver our 2024 financial guidance.

Speaker Change: All now turn the call over in Bob to discuss our second quarter financial results and provide our outlook for 2024.

Bob Peterson: Thank you, Terry, and good afternoon, everyone. Total revenue in the second quarter was $49.2 million, essentially flat year over year and consistent with our expectations. Procedure revenue growth increased 7.8%, increasing sequentially from the 6.6% growth rate reported in the first quarter of 2024. Second Quarter procedure revenue growth was throughout based across our network and primarily driven by growth from our top tier clinics. Our performance also benefited from approximately 30% growth in new clinics over the past 12 months. As Terry mentioned previously, many of these newly added clinics have successfully implemented our Quick Start program that accelerates new procedure revenue streams.

Bob Peterson: Thank you, Terry, and good afternoon, everyone.

Bob Peterson: Total revenue in the second quarter was $49.2 million dollars, essentially flat year over year and consistent with our expectations.

Bob Peterson: The senior revenue grip increased 7.8% increase in sequentially from the 6.6% grip rate reported in the first quarter of 2024.

Speaker Change: Second quarter procedure revenue growth was broad-based across our network and primarily driven by growth from our top tier clinics.

Bob Peterson: Our performance also benefited from approximately 30% growth in new clinics over the past 12 months.

Speaker Change: As Terry mentioned previously, many of these newly added clinics.

Terry Weber: has successfully implemented our QuickStart program that accelerates new procedure revenue streams.

Bob Peterson: As expected, second quarter dietary supplement revenue decreased 32.2% year-over-year as we continued the transition of our e-commerce business and lapped a significant seasonal promotion in last year's second quarter. Consistent with our timeline, we began managing distribution of several key products previously delivered from a former distributor at the end of the second quarter. While we continue to work down inventory of certain literaceuticals from our prior distributor, we expect overall nutraceutical revenue to resume year-over-year growth in the second half of this year. Second quarter gross profit margin was 68.9%. A 100 basis point increase from the second quarter of 2023.

Bob Peterson: As expected.

Speaker Change: 2nd quarter dietary supplement revenue decreased 32.2% year over year as we continued the transition of our e-commerce business.

Speaker Change: and Lap to Significant Seasonal Promotion in last year's Second Quarter.

Speaker Change: Consistent with our timeline, we began managing distribution of several key products.

Speaker Change: previously delivered from a former distributor at the end of the second quarter.

Speaker Change: While we continue to work down inventory of certain nutraceuticals from our prior distributor, we expect overall nutraceutical revenue to resume year-over-year growth in the second half of this year.

Speaker Change: Second quarter gross profit margin was 68.9%, a 100 basis point increase from the second quarter of 2023.

Bob Peterson: Gross profit of $33.9 million in the second quarter of 2024 included a $1.2 million step-up in inventory value related to the acquisition of a stereo health. Excluding this inventory revaluation, the second quarter 2024 gross profit margin would have been 70.9%. The year-over-year improvement in gross profit margin reflected product mix and effective cost management. As expected, we anticipate consolidated gross profit margin to revert to historical levels as new to suitable sales result in nearly the year growth in the second half. Consistent with our expectations, selling, general, and administrative costs were $27.6 million compared to $25.8 million in the second quarter of 2023.

Speaker Change: Gross profit of $33.9 million in the second quarter of 2024 included a $1.2 million step up in inventory value related to the acquisition of Asteria Health.

Speaker Change: Excluding this inventory revaluation, second quarter 2024 gross profit margin would have been 70.9%.

Speaker Change: The year-over-year improvement in gross profit margin reflected product mix and effective cost management.

Speaker Change: As expected, we anticipate consolidated gross profit margin to revert to historical levels, as new

Speaker Change: Consistent with our expectations, selling, general and administrative costs,

Speaker Change: were $27.6 million compared to $25.8 million in the second quarter of 2023.

Bob Peterson: Operating expenses increased from the prior year primarily due to planned strategic investments in sales and marketing, including our annual provider event. As a result, second quarter operating income was $6.2 million, compared to $7.7 million in the prior year quarter. Net loss in the second quarter was $10.5 million, inclusive of a $13.9 million loss due to a change in the fair value of the burnout liability.

Speaker Change: Operating expenses increased from the prior year primarily due to planned strategic investments in sales and marketing, including our annual provider event.

Speaker Change: As a result, second quarter operating income was $6.2 million, compared to $7.7 million in the prior year quarter.

Speaker Change: Met loss in the second quarter was $10.5 million, inclusive of a $13.9 million loss due to a change in the fair value of the burnout liability.

Bob Peterson: This compares to a net loss of 13.1 million dollars in the second quarter of 2023, which included a $6.4 million loss due to the net change and fair value of the earnout liability and an $11.8 million loss due to the net change and fair value of the warrant liability. During the second quarter, we selectively increased our investments in sales and marketing to strengthen engagement with our top providers, expand our therapeutic wellness offerings, and further our geographic expansion.

Speaker Change: This compares to a net loss of $13.1 million in the second quarter of 2023.

Speaker Change: which included a $6.4 million loss due to the net change in fair value of the earn-out liability and an $11.8 million loss due to the net change in fair value of the warrant liability.

Speaker Change: During the second quarter, we selectively increased our investments in sales and marketing to strengthen engagement with our top providers, expand our therapeutic wellness offerings, and further our geographic expansion.

Bob Peterson: Largely due to these investments, second quarter adjusted EBITDA decreased 12.4% from the prior year to $12.7 million with an adjusted EBITDA margin of 25.9 percent. This compares to adjusted EBITDA of $14.5 million with an adjusted EBITDA margin of 29.5% in the prior year period. While we continue to make investments aligned with our growth strategy, we anticipate our overall operating expenses will moderate in the second half of this year as compared to the first half. Second quarter operating cash flow was approximately $17.3 million.

Speaker Change: Largely due to these investments, second quarter adjusted EBITDA decreased 12.4% from the prior year.

Speaker Change: to $12.7 million with an adjusted EBITDA margin of 25.9%.

Speaker Change: This compares to adjusted the EBITDA of $14.5 million with an adjusted EBITDA margin of 29.5% in the prior year period.

Speaker Change: While we continue to make investments aligned with our growth strategy, we anticipate our overall operating expenses will moderate in the second half of this year as compared to the first half.

Speaker Change: 7.4 operating cash flow was approximately $17.3 million.

Bob Peterson: As Terry noted, and as previously announced, BioT concluded litigation with two large shareholders during the second quarter. These settlements include significant share repurchases and the release and cancellation of earn-out shares for no additional consideration. Under the terms of these settlements, Biote repurchased the first tranche of shares from Dr. Gary Donovan for $32.2 million in April. Subsequently, in June, Biote repurchased the first concert shares from Marcy Donovets for $30 million. After the repurchase of the first tranches, Biote has agreed to repurchase the remaining 14.4 million shares over the next three years.

Speaker Change: As Terry noted, in his previously announced, Violet T. concluded litigation with two large shareholders during the second quarter.

Terry Weber: These settlements include significant share reproaches and the release and cancellation of out shares for no additional consideration.

Speaker Change: Under the terms of these settlements, Bioti repurchased the first tranche of shares from Dr. Gary Donavitz for $32.2 million in April.

Speaker Change: Subsequently, in June , BioT repurchased the first tranche of shares from Marcy Donovets for $30 million.

Terry Weber: after the repurchase of the first tranches by OP as agreed to repurchase the remaining 14.4 million shares over the next three years.

Terry Weber: Largely because of these share repurchases, cash and cash equivalents at the end of the second quarter of 2024 were $26.4 million, down from $78.8 million at the end of the first quarter of 2024. Moving forward, we will continue to prudently manage our operating cash flow to assist funding settlement-related share repurchases while maintaining our capital allocation discipline. Turning to our financial outlook for fiscal 2024, We reiterated our previously reported guidance with revenue of $200 million to $200 million and $4 million and adjusted it to $60 million to $63 million.

Speaker Change: Largely because of these share repurchases, cash and cash equivalents at the end of the second quarter of 2024 were $26.4 million, down from $78.8 million at the end of the first quarter of 2024.

Speaker Change: Moving forward, we will continue to prudently manage our operating cash flow to assist funding settlement-related share repurchases while maintaining our capital allocation discipline.

Speaker Change: Turning to our financial outlook for fiscal 2024, we reiterate our previously reported guidance with revenue of $200 million to $204 million and adjusted EBITDA of $60 million to $63 million.

Terry Weber: At a high level, our 2024 sales guidance reflects our expectations for improving procedure revenue growth in the second half and a return to year-over-year growth in nutraceutical sales. On the expense side, we anticipate moderation in the second half of operating expenses as compared to the first half. Strengthening procedure revenue growth in the second half of 2024 relative to the first half is expected to be driven by three factors. Improving performance from our top tier clinics, 2, the continued expansion of our existing practitioner network, and three of growing contributions from new clinics, including continued growth in clinics, implementing quick start. Now, I'll turn the call back to Terry for her closing comments.

Speaker Change: At a high level, our 2024 sales guidance reflects our expectations for improving procedure revenue growth in the second half and a return to year-over-year growth in nutraceutical sales.

Speaker Change: On the expense side, we anticipate moderation in the second half, operating expenses, as compared to the first half.

Speaker Change: Strengthening procedure revenue growth in the second half of 2020-24 relative to the first staff is expected to be driven by three factors, one, improving performance from our top to your clinics, two.

Speaker Change: The continued expansion of our existing practitioner network, and three, a growing contribution for new clinics, including continued growth in clinics and implementing quick starts.

Speaker Change: Now, I'll turn the call back to Teri for her closing comments.

Terry Weber: BioT generated solid financial performance in the second quarter, and we are on track to achieve our financial and strategic objectives for the year. We continue to progressively roll out Bio TRX across our network with plans to add new capabilities to better serve both patients and practitioners. We also continue to integrate Asteria Health, which improves our manufacturing efficiency and offers new opportunities for growth over time. Finally, we have enhanced long-term shareholder value by concluding outstanding litigation and committing to significant share repurchases on favorable terms.

Teri: Thank you, Bob.

Teri: Biote generated solid financial performance in the second quarter, and we are on track to achieve our financial and strategic objectives for the year.

Speaker Change: We continue to progressively roll out BioTRX across our network with plans to add new capabilities to better serve both patients and practitioners.

Speaker Change: We also continue to integrate Asterion Health, which improves our manufacturing efficiency and offers new opportunities for growth over time.

Speaker Change: Finally, we have enhanced long-term shareholder value by concluding outstanding litigation and committing to significant share repurchases on favorable terms.

Terry Weber: We remain focused on driving profitable growth as we strive to become the leading single-source provider of evidence-based therapeutic wellness solutions, and now I'd like to open the call for questions. Operator, please begin the question and answer session.

Speaker Change: We remain focused on driving profitable growth, as we strive to become the leading single source provider of evidence-based therapeutic wellness solutions.

Speaker Change: And now I'd like to open the call for questions. Operator, please begin the question and answer session.

Operator: We will now begin the question and answer session. To ask a question, you may press star, then one on your touch screen phone. If you're using a speaker phone, please pick up your handset before pressing the keys. If at any time your question has been answered and you would like to withdraw your question, please press star and then two. Our first question comes from Lee Dolowski with Truist Securities. Please go ahead.

Speaker Change: We will now begin the question in the answer session.

Speaker Change: To ask me questions, you may press star, then one on your touched on phone. If you're using a speaker phone, please pick up your hands up before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star and then two.

Speaker Change: Our first question comes from Lee.

Speaker Change: Sulewski with Truist Securities. Please go ahead.

Lee Dolowski: Yes, good evening, guys. Thank you for taking the time to answer my questions.

Lee Sulewski: Yes, good evening, guys. Thank you for taking my questions. Terry, I didn't hear much commentary around your weight loss program and your strategy. Can you just perhaps maybe be highlight now that we've heard some of the brand at GLP ones coming off of the shortage list?

Terry Weber: So, Terry, you know, I didn't hear much commentary around your weight loss program and your strategy. Can you just perhaps maybe highlight, now that we've heard some of the brand, the GLP-1s coming off of the shortage list, essentially, how does that impact your compounded GLP-1 strategy? And, you know, how do you confirm with regulations if there are, if either the FDA puts a ban in place, or I guess there are limitations from presentations will be no longer available on the drug shortage list? And I have a follow-up.

Speaker Change: Essentially, how does that impact your compounded GLP-1 strategy, and how do you confirm with regulations if either the FDA puts a ban in place, or I guess there's limitations from presentations will be no longer available on the drug shortage list, and I have a follow-up.

Terry Weber: Wow, that's a mouthful. So I'll break it into pieces.

Speaker Change: Wow, that's a mouthful. So I'll break it into the pieces. So let me give you a context and a framework for our BioTRX and our use of the GLP-1s.

Terry Weber: So let me give you a context and a framework for our Bio TRX and our use of GLP-1. So we have launched this therapeutic wellness product, the BioTRX. It has a full complement of therapeutic wellness products, which includes GLP-1s.

Terry Weber: And it includes it both in the Trisapatide and the Semiglutide that are both being produced because of the shortage list. So for us, it's a piece of a formula with a lot of other products that allow that one-stop shop at BioT. So we have a platform that allows those providers to order the product easily and deliver it within very short SLAs. It's part of a performance piece on therapeutic wellness.

Speaker Change: So we have watched this therapeutic wellness, the bioTRX, it has a full complement of therapeutic wellness products, which includes the GLP-Wilds.

Speaker Change: And it includes it both in the trisapatide and the semiglutide that are both being produced because of the, by compounders, because of the shortage list.

Speaker Change: So for us, it's a piece of a formula with a lot of other products that allow that one-stop shop.

Speaker Change: FIOT, so we have a platform that allows those providers to order the product easily delivered on very short SLAs. It's part of a performance piece on therapeutic wellness, and it's just a couple of the products.

Terry Weber: And these are just a couple of products. So we're not concerned about this. The platform is working well. There's a lot of adoption, so it's proceeding very well.

Speaker Change: So we're not concerned about this. The platform is working well. There's a lot of adoption. So it's proceeding very well and that we can talk a little bit about what's happened even this week on these two products.

Speaker Change: So right now, if you look at the shortage and why compounders can manufacture, it's the shortage list. And the FDA considers the following criteria before removing a drug from the shortage list.

Speaker Change: First, whether the manufacturers able to make the total national historical demand, and you can report on the amount of that national demand, even within the last year, on both of the regulations.

Terry Weber: The second part is whether the manufacturer can verify that it has built enough safety stock for the drug. You also have other considerations as to whether prescribers or patients have the availability of the drug or if there's still that type of shortage. So it's quite a long process.

Speaker Change: The second part is whether the land factor can verify that it has built enough safety stock for the drugs.

Terry Weber: You also have other considerations as to whether prescribers or patients have the availability of the drug or if there's still that type of a shortage. So it's quite a long process and the only person that determines whether it goes off shortage is the FDA.

Terry Weber: And the only person that determines whether it goes on shortage is the FDA. And if our audience has listened, and probably hasn't, to the earnings recordings from both Eli Lilly and Novo Novartis that produced the two branded products of Trisapatide and Semiglutide, both companies address the fact that they had difficulty meeting demand and that certain dosages of their drugs come in and out of supply. A'Lelia announced that there will be intermittent supply disruptions for drugs such as ZepBound and Mongero.

Terry Weber: And if our audience has listened, and probably hasn't, to the earnings recordings from both Eli and Lily,

Terry Weber: and Novo Novartis that produced the two branded products of the Trisapatide and the Semiglutide. Both companies addressed the fact that they had difficulty meeting demand and that these certain dosage of their drugs come in and out of supply.

Terry Weber: O'Leary announced that there will be intermittent supply disruptions.

Terry Weber: While supply and demand are better balanced, they quoted, they expect increases in demand may result in periodic supply tightness at different levels, dosage levels. So when we look at this, it looks as if, certainly for Novo Novartis, they announced that they'll continue restricting supplies of their startup doses in the U.S. market to ensure patients who start the treatment can continue the treatment. So in our estimation, and these drugs will remain on shortage for a period of time; there are many options, new drugs are being developed in the GLP one space as we speak, so compounders will be allowed to do the one foot or on shortage, and for us, we're not concerned about it in our model.

Terry Weber: for drug sexes that bound in one year old while supply and demand are better in their balance they quoted. They expect increases in demand they result in periodic supply tightness at different levels at dosage levels.

Terry Weber: So when we look at this, it looks as if certainly for low-level divorces, they announced that they'll continue restricting supplies.

Terry Weber: of their starter doses in the U.S. market to ensure patients who start the treatment can continue this treatment.

Terry Weber: So, in our estimation, and these drugs will remain on shortage for a period of time, there's many options. New drugs are being developed in the GLP-1 space as we speak.

Terry Weber: So compounders will be allowed to do the ones that are on shortage. And for us, we're not concerned about it in our model. We just wanna make sure that our doctors get an easy access to it and a consistent supply. So our platform offers that, and I hope I've given you some insights.

Speaker Change: into why that is not a big concern for us. Also remind you that we get paid a tech platform fee.

Speaker Change: for accessing our platform which offers the other formulations as well in therapeutic wellness. So this is just part of our long-term therapeutic wellness focus.

Terry Weber: Excellent color. I mean, they're very helpful. Perhaps just to maybe build on that, in some sense, on the Esteria facility. You know, you've mentioned before you're looking to add a production line for the compounded GLP-1. Is that still in the works? When can we kind of expect that to be operational? And then, I guess my last question is, what percentage of your physicians are in the medical spa setting? And then, I guess, how many operate in a virtual setting? Thank you.

Speaker Change: Excellent caller, I mean they're very helpful. Perhaps just to maybe build on that in some sense on the Asteria facility, you know, you've mentioned before you're looking to add a production line on the

Terry Weber: compound at GOP1, is that still in the works when can we kind of expect that to be operational? And then I guess my last question is what percentage of your physicians are in the medical spa setting and then I guess how many operate at a virtual setting? Thank you.

Terry Weber: Oh, good questions. There are three questions there.

Speaker Change: Good questions, three questions there. So number one on Asteria, we are looking to expanding our space at Asteria and after we're making sure that we can meet all the production need in our integration, we're very focused on manufacturing the other GLP-1 products. So I'd be looking to 2025 for that manufacturer and that impact.

Terry Weber: So number one on Asteria, we are looking to expand our space at Asteria. And after we're making sure that we can meet all the production needs in our integration, we're very focused on manufacturing the other GLP-1 products. So I'd be looking to 2025 for that manufacturing and that impact. Your second question, want to repeat that real quick?

Terry Weber: Your second question, what a repeat that will quick.

Terry Weber: have a number and percentage of physicians in the in the medical spa setting and in virtual So the lyrical f-

Speaker Change: have a number of percent of physicians in the medical spot setting and in virtual.

Terry Weber: So the medical spa setting, so our practitioners in the medical spa setting have all supervising practitioners. They're usually an arm of an OBGYN or an internist who has a wellness practice next to their traditional practice. So it's the way that that's structured that really allows us to have very good supervising practitioners. And I would certainly say less than 10%, and on the virtual end, we have very few that have a virtual component of their practice, but they're all practitioners with clinics. So we don't, at this point, serve as just any completely virtual group.

Terry Weber: So the medical spa setting, so our practitioners in the medical spa setting have all supervising practitioners. They're usually an arm of an OBGYN or an internist.

Terry Weber: who has a wellness practice next to their traditional practice.

Terry Weber: So it's a way that that structure that really allows us to have very good supervising practitioners.

Terry Weber: And I would certainly say less than 10%. And on the virtual end, we have very few, they have a virtual component of their practice, but they're all practitioners with clinics.

Terry Weber: So we don't at this point service just any completely virtual group.

Operator: And the next question comes from Jonah Kim with TD Cowan. Please go ahead.

Jonah Kim: Great, thank you.

Speaker Change: And the next question comes from Jonah Kim with TD Cowan. Please go ahead.

Jonah Kim: Thank you for taking my questions. Curious about the marketing and investments that you've made this quarter, if it's a step up there. Should we expect a similar level of marketing and investment for the remainder of the year? And just to follow up to that, how are you measuring the success of your spend, and just going forward, how should we think about your investment plan? Thank you so much.

Jonah Kim: Hi, thank you for taking my question. I'm just curious about the marketing and investments that you've made this quarter. It looks like a step up there. Should we expect similar level of marketing and investments for the remainder of the year?

Jonah Kim: And just to follow up to that, how are you measuring your success of SEND and just going forward, how should we think about your investment plan? Thank you so much.

Terry Weber: So what BioTE looks to do, Jonah, is to really engage long term with these practitioners so they keep decades of involvement with us. So what we invested in this year is an enhancement to our clinical decision support software. So you'll not only have that clinical decision support software doing an excellent job of hormone optimization, but it also includes therapeutic wellness products from our BioTE Rx. So that's an investment in growing engagement with those providers.

Terry Weber: So what BioTE looks to do, Jonah, is to really engage long-term with these practitioners so they keep decades of involvement with us.

Terry Weber: So what we invested in this year is that enhancement to our clinical decision support software.

Terry Weber: So you'll not only have that clinical decision support software doing an excellent job of hormone optimization, it includes now therapeutic wellness products from our Bio TRX.

Terry Weber: So that's an investment in growing engagement with those providers.

Terry Weber: Now, this is new science and innovation. And so that large meeting that we had that had so many of our providers, our key large providers, we spent two and a half days educating them off site on these new therapeutic wellness products and where the science is going. So that was a large investment in Q2, but all of these should have a very solid ROI on both the enhancement to the tier one clinics and our largest providers, as well as taking us into that next generation where we have no competition, and we are very much differentiated from competition. And Jonah.

Terry Weber: Now this is new science and it's invasions and so that large meeting that we had that had so many of our providers, our key, large providers, we spent two and a half days educating them off-site.

Terry Weber: on these new therapeutic wellness products and where the science is going. So that was a large investment in Q2, but all of these should do a very solid ROI on both the

Terry Weber: enhancement to the tier one clinics and our largest providers as well as taking us into that next generation where we have no we very much are differentiated from competition. And Jonah just to add a little bit to that as we look at our OPEX.

Bob Peterson: And Jonah, just to add a little bit to that, as we look at our OPEX, typically, it's higher in Q2. And as Terry mentioned, several of the expenses to really support sales, marketing, and other customer-related expenditures were planned in Q2. And I would just tell you, when we think about the investments that we're looking to continue to deploy, I mean, whether it's practitioner engagement, modernization of our data systems, and data analytics, I would tell you all of those are really supporting what Terry is saying to review the ROI of the spends that we deploy.

Speaker Change: Typically a tire in the NQ2.

Bob Peterson: and, as Terry mentioned, several of the expenses to really support sales, marketing.

Bob Peterson: and other customer-related expenditures.

Bob Peterson: were planned in Q2, as Terry mentioned, and I would just tell you when we think about the investments that we're looking to continue to deploy.

Bob Peterson: I mean, whether it's practitioner engagement, modernization of our data systems and data analytics. I would tell you all of those are really supporting what Terry is saying to review that ROI of the spins that we deploy.

Bob Peterson: And just one follow-up question is, have you seen any notable changes or anything to call out quarter-to-date trends versus the second quarter, and just what gives you confidence in the second half inflection embedded in your guidance? Thank you.

Bob Peterson: And this one follow-up is, have you seen any notable changes, or anything to call out, quarter-to-date trends versus second and quarter, and just what gives you confidence in the second half of the collection embedded in your guidance. Thank you.

Bob Peterson: Yeah, so right now, I think when we look at Q2 revenue, the improved growth from a sequential perspective on procedure revenue, it was consistent with our year-to-date guidance. We were expecting that uptick. We don't give quarterly guidance, so we continue to anticipate second-half performance will strengthen versus the first half, but we're focused really on our key trends, which, as we mentioned during the call, growth in our top-tier accounts, new customer growth, specifically improving the quick starts, and neutral growth in the second half, which should show positive momentum.

Bob Peterson: Yeah, so, right now, I think when we look at the Q2 revenue,

Bob Peterson: and the improved growth from a sequential perspective on procedure revenue. It was consistent with our year-to-year guidance we were expecting that uptick.

Bob Peterson: We don't give quarterly guidance.

Bob Peterson: So we continue to anticipate second half performance with Wilstring Finn versus the first half.

Bob Peterson: But we're focused really on our key trends, which, as we mentioned during the call, growth in our top-tier accounts, new customer growth, specifically with improving the quick starts, and neutral growth in the second half, which should show positive momentum.

Speaker Change: Thank you.

Operator: And the next question comes from Jeff Van Sinderen with B Riley Security.

Speaker Change: And the next question comes from Jeff Van Sinderen with B. Reilly Securities.

Richard Magnuson: Hello, this is Richard Magnuson on behalf of Jeff Van Sinderen. Thank you for taking our call. First off, you mentioned quickly the state licenses. Now I was wondering if you could provide more color on where you are exactly with obtaining all the various state licenses.

Richard Magnuson: Hello, this is Richard Magnison, in Fort Jeff and Cinder and thank you for taking our call. First off, you did mention quickly the state licenses. Now it's morning, you could provide more color on where you are exactly with obtaining all the various state licenses.

Bob Peterson: Yeah, so we've made pretty good progress as it relates to, as you can see, as you look at the entirety of Visteria, we keep on applying for new licenses. It's constantly in flux. And I would just say we're obtaining those licenses as planned, and we continue to work with our teams to diligently progress forward in that area. So I would say we're approaching about the halfway mark of the licenses that we are looking to obtain, with a whole handful coming over the next quarter, quarter and a half.

Bob Peterson: Yeah, so we've made pretty good progress as it relates as you can, as you look at the entirety of Mysteria, we're keep on applying for new licenses, it's constantly influx.

Bob Peterson: and I would just say we're a team that's like this as planned and we continue to work with our teams to diligently progress forward in that area. So I would say we're approaching about the halfway mark.

Bob Peterson: of the licenses that we are looking to obtain with a whole handful coming over the next quarter, quarter and a half.

Richard Magnuson: Okay, and then, um... My next question is, previously you talked about how some doctors were a little bit, maybe stubborn, to migrate toward your new platform from what they were used to. Some of it was because they had more inventory from previous sources. And so my question is, have they depleted that, as far as you know, or is there still a lot of it? And the other aspect was that they were reluctant to move away from the legacy sources and were testing BioT as a source with smaller orders until they felt comfortable with it. Has this situation meaningfully improved, or what can you tell us about that? Yes, it's meaningfully important.

Richard Magnuson: [inaudible]

Richard Magnuson: The doctors, they were a little bit maybe stubborn to migrate towards your new platform from what they were used to. Some of it was because they had more inventory from previous sources. And so my question is, have they depleted that as far as you know, or a lot of it? And the other aspect was that they were reluctant to move away from the legacy sources and were testing the BioT as a source with smaller orders until they felt comfortable with BioT. Is this situation meaningfully improved, or what can you tell us about that?

Terry Weber: Yes, it's meaningfully improved. We've been adding new doctors because new state licenses are coming in for our Bio TRX. So we've been adding practitioners, they've been increasing their orders, they're seeing the consistency of the delivery time and the quality of the product. So all that's going very well, and what I'm excited about is these new clinics that we have are becoming dependent on us at the beginning for all of their Bio TRX products.

Terry Weber: Yes, it's meaningful, improved. We've been adding new doctors because new state licenses are coming in for our BioTRX, so we've been adding practitioners, they've been increasing their orders.

Terry Weber: They're seeing the consistency of the delivery time and the quality of the product.

Terry Weber: So all that's going very well, and what I'm excited about is these new clinics that we've got.

Terry Weber: are becoming dependent on us in the beginning for all of their bioTRX products, so I like that because it's a better mix.

Terry Weber: So I like that because it's a better mix. It's not just GLP-1s. They're not just shopping for GLP-1s, but they're learning the business and depending on us for their supply and are used to using our platforms. So the strategy is working very well.

Terry Weber: It's not just GLP-1s. They're not just shopping GLP-1s, but they're learning the business and depending on us for their supply and used to using our platforms, so the strategy is working very well.

Terry Weber: All right, thank you.

Operator: And the next question comes from George Kelly with Roth Capital. Please go ahead.

Speaker Change: And the next question comes from George Kelly with Roth Capital. Please go ahead.

George Kelly: Hey everyone, thanks for taking the questions. Just a couple for you. First, on Asteria, I'm curious how much of your production is running through there, and what is your expectation for year-end?

George Kelly: and everyone, thanks for taking the questions.

George Kelly: Just a couple for you. First, on Asteria, I'm curious how much of your production is running through there, and what is your expectation for year-end?

Bob Peterson: Yeah, so the way that I would look at this, George, we've talked a little bit about the state licenses. We are at a point now where, from a production perspective, we've built the capabilities to meet the needs in the short-term and probably in the medium-term by building additional machinery and installing additional machinery. And I think we're at a point now where we've scaled up well and we're building the inventory and producing enough, really, to make sure that we have enough inventory to meet our future demands.

Bob Peterson: Yeah, so the way that I would look at this, George, I mean, we've talked a little bit about the state licenses.

Bob Peterson: We are at a point now where from a production perspective, we built the capabilities to meet the needs.

Bob Peterson: in the short term and probably in the medium term by building additional machinery, installing additional machinery, and I think we're at a point now where we've scaled up well.

Bob Peterson: And we're building the inventory and producing enough, really, to make sure that we have enough inventory to meet our future demand.

George Kelly: So, I guess the next part of that question is, so are you anticipating a meaningful step up in gross margin in the back half just based on that production flowing through Asteria?

George Kelly: So, I guess the next part of that question is, so are you anticipating a meaningful step up in gross margin in the back half just based on that production flowing through Asteria?

Bob Peterson: So, the way that we're looking at this, I mean, as you look at the three different facets, so let's just take a little bit of a step back, and I'll touch on the gross margin piece. So, as you can imagine, when you onboard a function like Asteria into BioT, you need to be really focused on doing each facet quite well.

Bob Peterson: So the way that we're looking at this, I mean, as you look at the three different facets,

Bob Peterson: Let's just take a little bit of a step back and I'll touch on the gross margin piece.

Bob Peterson: So, as you can imagine, when you onboard a function like a stereo into IoT, you need to be really focused on doing each facet quite well. One, as we just already mentioned, was the state licenses.

Bob Peterson: One, as we just mentioned, was the state licenses. Number two is really trying to phase in and work towards the conversion of these additional states that we get access to. And what we're finding is that we're working quite well with our commercial teams and very strategically to work through this process to ensure a smooth transition. And we're succeeding in this process, so I think that's good. We have also touched on the last piece, which is building that inventory.

Bob Peterson: 2 is really trying to phase in and work towards the conversion of these additional states that we get access to.

Bob Peterson: And what we're finding is that we're working quite well with our commercial teams and very strategically to work through this process to ensure a smooth transition.

Bob Peterson: And we're succeeding in this process, so I think that's good. We already also touched on the last piece, which is building that inventory.

Bob Peterson: So, clearly, Asteria is an important piece and a strategic part of our overall capabilities within BioT. As we transition, we'll begin to operationalize and operationally transition the pellets into the different clinics. As procedures start to occur, and these pellets are implanted, this will be more of a, as we start to progress through this, this will enable a more phased approach through the second half of the year, and the financial impact on gross margin has been factored into our 2024 Adjusted Ebitda Guidance Rank.

Bob Peterson: So, clearly, a theory is an important piece and a strategic part of our overall capabilities within biote. As we transition, we'll begin to operationalize and operationally transition pellets into the different clinics.

Bob Peterson: As procedures start to occur and these pellets are implanted, this will be more of a, as we start to progress through this, this will enable a more phased approach.

Bob Peterson: through the second half of the year, and the financial impact on gross margin has been factored into our 2024 Adjusted Ebitda Guidance Range.

George Kelly: Okay, and then two other quick ones. In your prepared remarks, you mentioned that you expect SG&A to moderate in the back half versus what you just reported in the first half. Can you be more specific? Does that mean that you expect absolute SG&A dollars to decline in the back half versus the first half, or what does that mean?

George Kelly: Okay, and then two other quick ones.

George Kelly: In your prepared remarks, you mentioned that you expect SG&A to moderate in the back half versus what you just reported in the first half.

George Kelly: There's a new and more specific, does that mean that you expect absolute SG and a dollar to decline in the back half versus the first half or what does that mean?

Bob Peterson: Now, so here's the way I would look at it. So we expect our core expenses to really remain flat. We don't see any material shifts in the business, but we are going to continue to spend additional funds on revenue-generating activities. We don't have any big expenses like the Sun and Sea event that Terry mentioned that we had in Q2, but we're going to continue to spend on new customer training, Amazon demand-generating activities, and the development of new and existing customer growth. So the moderation is really baked also into that guidance. Okay, I'll be glad to answer your question.

Bob Peterson: Now, so here's the way I was looking at it, so we expect our core expenses to really remain flat.

Bob Peterson: We don't see any material shifts in the business.

Bob Peterson: But we are going to continue to spend additional funds on revenue generating activities.

Bob Peterson: We don't have any big expenses like the sun and sea events today.

Bob Peterson: that Terry mentioned that we had in Q2.

Bob Peterson: But we're going to continue to spend on new customer trainings.

Bob Peterson: Amazon Demand Generating Activities, and Development of New and Existing Customer Growth. So the moderation is really baked in also into that guidance.

George Kelly: Yeah, I think so I'm just trying to sort of triangulate into your EBITDA guide, and it implies a fairly significant step up in EBITDA margin in the back half, and so I'm just trying to figure out like, what is it? Is that a gross margin thing or an SG&A thing? I don't know if there's a way to, to sort of get to that. If not, that

Speaker Change: Okay. Does that address your question?

George Kelly: Yeah, I think so. I'm just trying to sort of triangulate into your EBITDA guide. And in implies it, fairly significant step up in the EBITDA marching in the back half. And so, I'm just trying to figure out, like, what's...

George Kelly: Is that a gross margin thing or an SG&A thing?

George Kelly: I don't know if there's a way to sort of get to that. If not, that's okay.

Bob Peterson: No, I think, no, I would just tell you, right now, we do expect that moderation. And I would just say, as we look at gross margin in the second half, I would say we're going to be guiding towards the high end of our historical range. So in that upper 60s range. So that can give you kind of a little bit of a guide to where we're going on that front. Okay.

Bob Peterson: I think I would just tell you right now we do expect that moderation and I would just say as we look at

Bob Peterson: Gross margin in the second half, I would say we're kind of, we're going to be guiding towards the high end of our historical range.

Speaker Change: So in that upper 60s upper 60s range, so that can give you kind of a little bit of a guide to where we're going on that fun. Okay, understood, thank you.

George Kelly: Okay, I understand. Thank you.

Operator: And the next question comes from Kaumil Gajrawala with Jeffreys. Please go ahead.

Speaker Change: And the next question comes from CalMil, Gajra Wala with Jeffries, please go ahead.

Kaumil Gajrawala: Hey guys, good evening. A couple of questions on the state licensing. Can you maybe just give an update or an idea of maybe how many states are left and if any particularly large states are ones where you recently Kim, Leszek Sulewski.

Kaumil Gajrawala: Hey guys, good evening. A couple, I guess, follow-ups from some of your answers to other questions. On the state licensing, can you maybe just give an update or an idea of maybe how many states are left, and if any particularly large states are ones where you recently licensed?

Speaker Change: became licensed.

Bob Peterson: Well, I would tell you that, overall, the state licenses that we've been approved for match up fairly well to our existing footprint, and I would just say that we are continuing. I think I can say we've applied for nearly all states, and there are varying phases of the approval process.

Bob Peterson: Well, I would tell you that just overall, the...

Bob Peterson: The state licenses that we've been approved in match-up fairly well to our existing footprint. And I would just say that we are continuing, I think we can say would.

Bob Peterson: We've applied for nearly all states and they're varying phases of the approval process.

Kaumil Gajrawala: Okay, got it, and as a follow-up, a little bit to last question is... Was the step up in marketing simply the big event? And we're just looking at more of a run rate over the rest of the year? Or was there an actual sort of, in addition to the event, a few things that were incremental that stepped up the investment?

Speaker Change: I think I'm...

Speaker Change: And I guess as a follow-up a little bit to the last question is...

Kaumil Gajrawala: Was the step up in marketing simply the big event, and we're just looking at more of a run rate over the rest of the year? Or was there an actual sort of, in addition to the event, a few things that were incremental that stepped up the...

Bob Peterson: I would just say that the SunSea event is a pretty material event, and I would say that that is probably one of the largest drivers. I would say that there's a combination, as I mentioned, as we look at optimizing our sales force, engaging with our practitioners, and improving our data systems. There are other smaller items along the way, but you've really hit the big one.

Bob Peterson: investment dollars.

Bob Peterson: Yeah, I would just say that the Sunsea event is a pretty material event.

Bob Peterson: and I would say that that is probably one of the largest drivers. I would say that there's a combination, as I mentioned, as we look at...

Bob Peterson: optimizing our sales force, doing the, engaging with our practitioners, improving our data systems. There are other smaller items along the way, but you've really hit the big one, if you think. Yeah, Kaumil, I think one of the things is that investment in the people.

Terry Weber: Yeah, Kaumil, I think one of the things is that investment in people. We're going to therapeutic wellness and taking all of our providers to a much more evidence-based science as we look into therapeutic wellness. So we've invested in our educators. Those are our practitioners who teach for us, and we believe in their ability to teach and are revamping the training program. So I really want to invite you and people in the audience that this new training in the fall for this therapeutic wellness is a significant step up, and we invested in the instructors, the materials, and the whole education process to really make it a very strong interactive experience for our new providers and those that are coming back for additional training.

Terry Weber: We're going to therapeutic wellness and taking all of our providers to a much more evidence-based science as we look into therapeutic wellness.

Terry Weber: So we invested in our educators. Those are our practitioners who teach for us.

Terry Weber: And we educated in their ability to teach and revamping the training program. So I really want to invite you and people in the audience that, you know, this is the new training in the fall for this therapeutic wellness is a significant step up and we invested in the instructors.

Kaumil Gajrawala: Got it. Sounds like a good time. We'll look out for an invite. Thanks, guys. We'll talk soon.

Kaumil Gajrawala: The materials and the whole education process to really make it a very strong, interactive experience for our new providers and those that are coming back for additional training.

Speaker Change: Sounds like a good time. We'll have a look out for it in bite. Thanks, guys. We'll talk about unboxing.

Terry Weber: This concludes our question and answer session. I would like to turn the conference back over to Terry Weber for any closing remarks.

Terry Weber: This concludes our question and answer session. I would like to turn the conference back over to Terry Weber for any closing remarks.

Thank you everyone for joining us today. We appreciate the interest in biotea, and we really look forward to updating you on our progress in therapeutic wellness on our next conference call.

Terry Weber: Thank you everyone for joining us today. We appreciate the interest in biotea and we really look forward to updating you on our progress in therapeutic wellness on our next conference call.

Terry Weber: And that we can talk a little bit about what's happened even this week with these two products. So right now, if you look at the shortage and why compounders can manufacture them, it's the shortage list. And the FDA considers the following criteria before removing a drug from the shortage list: First, whether the manufacturer is able to meet the total national historical demand. And you can report on the amount of that national demand even within the last year for both of the formulations.

Terry Weber: We just want to make sure that our doctors get easy access to them and a consistent supply. So our platform offers that, and I hope I've given you some insights into why that is not a big concern for us. Also, remind you that we get paid a tech platform fee for accessing our platform, which offers the other for relations as well in therapeutic wellness. So this is just part of our long-term therapeutic wellness focus.