Q1 2025 ARS Pharmaceuticals Inc Earnings Call
Operator: Good morning and welcome to the ARS Pharmaceuticals conference call. At this time, all participants are in a listen-only mode.
Good morning, and welcome to that.
Speaker Change: I R. S Pharmaceuticals conference call at this time, all participants are in a listen only mode. After.
Operator: After the company's prepared remarks, we will open the lines for questions. Please be advised that today's conference is being recorded.
Speaker Change: After the company's prepared remarks, we will open the lines for questions.
Speaker Change: Be advised that today's conference is being recorded.
Justin Chakma: And I'll turn the call over to Justin Chakma, Chief Business Officer. Please proceed.
Speaker Change: Now I'll turn the call over to Justin Chapman Chief Business Officer. Please proceed.
Justin Chakma: Good morning, and thank you for joining our first quarter 2025 earnings conference call. This morning, we issued a press release detailing our financial results and commercial highlights. is available in the investor and media section of our website at ars-pharma.com.
Speaker Change: Good morning, and thank you for joining our first quarter 2025 earnings conference call.
Speaker Change: Morning, We issued a press release detailing our financial results and commercial highlights which is available in the investor and media section of our website at AOS, thus far I'm a dot com.
Justin Chakma: With me on the call are Richard Lowenthal, our co founder, president and CEO, will review recent corporate updates and achieve Eric Karas, our Chief Commercial Officer, who will cover our commercial activities and progress.
Richard: With me on the call are Richard though until our cofounder President and CEO will review recent corporate updates and achievement.
Eric <unk>: Eric <unk>, our Chief commercial officer, who will cover our commercial activities and progress.
Justin Chakma: and Kathy Scott, our CFO, will provide a summary of our financial results and cash position.
Eric <unk>: And Kathy Scott, our CFO, who will provide a summary of our financial results and cash position.
Justin Chakma: Before we begin, please note that today's remarks may contain forward-looking statements. Actual results may differ materially. Please refer to our press release and SEC filings for further risk disclosures.
Eric <unk>: Before we begin please note that today's remarks may contain forward looking statements actual results may differ materially. Please.
Eric <unk>: Please refer to our press release and SEC filings for further risk disclosures.
Richard Lowenthal: With that, I'll turn the call over to Rich. Thank you, Justin. Good morning, and thank you all for joining us on this call.
Rich: With that I'll turn the call over to rich.
Rich: Thank you Justin good morning, and thank you all for joining us on this call.
Richard Lowenthal: We're off to a strong start in 2025 as we continue to execute the nationwide launch of NEFI, the first and only needle-free epinephrine treatment approved for type 1 allergic reactions, including anaphylaxis. We believe NEFI has blockbuster potential, addressing a U.S. market potential of 3 billion net sales in the near term, comprised of about 6.5 million patients who have been prescribed epinephrine over the past three years. Beyond this, an additional 13.5 million diagnosed patients have no epinephrine prescription, and many struggle with needle anxiety and portability concerns. Only 3.2 million patients actually fill their epinephrine autoinjector prescriptions, underscoring the substantial unmet medical need that NEFI is uniquely positioned to solve.
Speaker Change: Loss to a strong start in 2025 as we continue to execute the nationwide launch of Murphy.
Speaker Change: First and only needle free epinephrine treatment approved for type one the allergic reactions, including anaphylaxis.
Speaker Change: We believe nephew has blockbuster potential addressing our U S market potential of $3 billion net sales in the near term comprised of about $6 5 million patients who had been prescribed epinephrine over the past three years.
Speaker Change: Beyond this an additional $13 5 million diagnosed patients have no epinephrine prescription and many struggle with needle anxiety and portability concerns.
Only $3 2 million patients actually fill their epinephrine auto injector prescriptions underscoring the substantial unmet medical need.
Speaker Change: <unk> is uniquely positioned to solve.
Richard Lowenthal: With only two quarters of commercialization so far, NEPHE is gaining traction as a potential new standard of care in this space.
Speaker Change: With only two quarters of commercialization. So far nephew is gaining traction as a potential new standard of care in this space.
Richard Lowenthal: In the first quarter of 2025, NEFI generated $7.8 million in U.S. net product revenue, reflecting the continuously growing demand among physicians, patients, and caregivers for an alternative to traditional autoinjection. We started this year with 27% commercial insurance coverage, and now have reached 57% coverage with more payer discussions ongoing. We are entering the peak epinephrine prescribing season during the summer with strong momentum.
Speaker Change: In the first quarter of 2025.
Speaker Change: We generated $7 8 million in U S net product revenue, reflecting the continuously growing demand among physicians patients and caregivers.
Speaker Change: We're an alternative to traditional auto injectors.
Speaker Change: We started this year with 27% commercial insurance coverage and now have reached 57% coverage with more payer discussions ongoing.
Speaker Change: We are entering the peak epinephrine prescribing season during the summer with strong momentum.
Richard Lowenthal: And with additional health insurance coverage anticipated in the coming months, we also expect to generate additional demand through our DTC consumer awareness campaign that launches tomorrow. This demand is supported by the real world evidence of adoption by thousands of health care providers who have prescribed NephioReady. In addition, thousands more have participated in our NEPHE experience program using NEPHE during oral food challenges and immunotherapy treatments in the clinic.
Speaker Change: And with additional health insurance coverage anticipated in the coming months, we also expect to generate additional demand through our DTC consumer awareness campaign that launches tomorrow.
Speaker Change: This demand is supported by the real world evidence of adoption by thousands of health care providers, who have prescribed nephew already in.
Speaker Change: In addition, thousands more have participated in our nephew experience program using that free during oral food challenge is that immunotherapy treatments in the clinic.
Richard Lowenthal: This month, we also reached a major milestone. In addition to our two milligram dose for children and adults weighing 30 kilograms or greater, nephi one milligram was approved by the FDA in early March of this year and is now available at pharmacies across the U.S. for children weighing between 15 and 30 kilograms. The availability of this pediatric dose is particularly important, as the 1 milligram dose represents 23% of all epinephrine units dispensed in 2024, and more than half of all epinephrine prescriptions for children. NEPHEW offers caregivers and young patients a reliable and easy to use option, and we ensured that it was available before summer travel, camps, and back to school preparation.
Speaker Change: This month, we also reached a major milestone.
Speaker Change: Vision to our two milligram dose for children and adults waiting 30 kilograms or greater nephew, one milligram was approved by the FDA in early March of this year and is now available at pharmacies across the U S for children weighing between 15 and 30 kilograms.
Speaker Change: The availability of this pediatric dose is particularly important as the one milligram dose represents 23% of all epinephrine units dispensed in 2024 and more than half of all epinephrine prescriptions for children.
Speaker Change: <unk> offers caregivers and patients are reliable and easy to use option and we ensured that it was available before summer travel camps and back to school preparations.
Richard Lowenthal: To further strengthen our commercial reach, including to key pediatricians, we recently expanded our strategic collaboration with AOK Abello, a global leader in allergy care, ahead of this peak summer prescribing season. This co-promotion agreement expands our direct promotional network for NFE to over 20,000 healthcare providers across the United States. including targeted outreach to approximately 9,000 pediatricians, accelerating our efforts to position nephi as the leading epinephrine option for both adults and children. This partnership builds on our broader global relationship with ALK.
Speaker Change: To further strengthen our commercial reach including to key pediatricians, We recently expanded our strategic collaboration with <unk> a global leader in allergy care ahead of this peak summer prescribing season.
Speaker Change: This co promotion agreement expands our direct promotional network for an effort to over 20000 health care providers across the United States, including targeted outreach to approximately 9000 pediatricians accelerating our efforts to position <unk> as the leading epinephrine option for both adults and children.
Speaker Change: This partnership builds on our broader global relationship with Alk <unk>.
Richard Lowenthal: Under this agreement, ARS will continue to focus on allergists and the highest volume pediatricians and PCPs in the United States and retains full control over all aspects of U.S. commercialization, including marketing, medical affairs, market access, production and distribution.
Speaker Change: Under this agreement <unk> will continue to focus on the allergist and the highest volume pediatricians and PCP.
Speaker Change: In the United States and retains full control over all aspects of U S commercialization, including marketing Medical affairs market access production and distribution.
Richard Lowenthal: Lastly, regulatory reviews are underway for NEFI in the UK, Canada, Japan, China and Australia, with decisions and commercial launches in these countries expected to begin in mid 2025 through the first half of 2026.
Speaker Change: Lastly, regulatory reviews are underway for Murphy in the UK, Canada, Japan, China, and Australia with decisions in commercial launches in these countries is expected to begin in mid 2025 through the first half of 2026.
Richard Lowenthal: To summarize, this is a year of execution for ARS. We aim to deepen physician engagement, expand access, and lay the groundwork for a global commercial footprint for NEFI, supported by our partner.
Speaker Change: Summarize this is a year of execution for Arris, we aimed to deep deep in physician engagement expand access and lay the groundwork for a global commercial footprint for Nazi supported by our partners.
Eric Karas: I'll turn the call over to Eric for a more detailed review of our commercial progress. Thanks, Rich. Our commercial strategy is built on three key pillars, driving healthcare provider adoption, securing market access, and increasing patient awareness. Since launch, our sales team has directly engaged over 10,000 healthcare providers. More than 50% of these providers have prescribed napkins. Of the prescriptions submitted to date, nearly 90% have come from top-decile targets. We view this as a strong endorsement from leading experts who treat the highest number of patients at risk for allergic reaction. Approximately 2,500 health care providers have also enrolled in our NEPHE experience program, and over 13,000 units have been placed in offices for use during anaphylactic events.
Eric <unk>: Turn the call over to Eric for a more detailed review of our commercial progress.
Eric <unk>: Thanks, Rich our commercial strategy is built on three key pillars, driving health care provider adoption, securing market access and increasing patient awareness since launch our sales team is directly engaged over 10000 health care providers.
Eric <unk>: More than 50% of these providers have prescribed <unk>.
Eric <unk>: Of the prescriptions submitted to date, nearly 90% have come from top decile targets.
Eric <unk>: We view this as a strong endorsement from leading experts who treat the highest number of patients at risk for allergic reactions.
Eric <unk>: Approximately 2500 health care providers have also enrolled in our experience program and over 13000 units have been placed in offices for use during <unk> events.
Eric Karas: This hands-on experience has led to numerous physician testimonials. That highlights the positive impact NEPI is having in clinical practice.
Eric <unk>: This hands on experience has led to numerous physician testimonials.
Eric <unk>: That highlights the positive impact nappy is having in clinical practice with the recent availability of the one milligram dose we will be adding it to our nephew experience program and will collect additional information on both the one milligram and Cumulus Gram doses, we plan to share the physician survey data from our <unk> experience program in various medical Hall.
Eric Karas: With the recent availability of the one milligram dose, we'll be adding it to our NEPI experience program, and we'll collect additional information on both the one milligram and two milligram dose. We plan to share the physician survey data from our NEPRI experience program in various medical forums later this year.
Eric <unk>: RMS later this year.
Eric Karas: As Rich mentioned, we continue to make progress in payer access. We have secured commercial coverage across more than 30 formulary platforms, now including UnitedHealthcare. Currently, over 57% of all U.S. commercial lice have access to neph- We are approaching a tipping point in market access that will enable more healthcare providers to prescribe NEPI without restriction. In the coming months, as patients schedule appointments and visit their allergy care providers, we anticipate that access to NEFI will become quicker and easier. For patients with commercial insurance, our assistance program ensures that most individuals will only have a $25 copay, which is less than a typical $40 for a generic injection.
Eric <unk>: As rich mentioned, we continue to make progress in payer access we have secured commercial coverage across more than 30 formulary platforms now, including United Healthcare.
Eric <unk>: Currently over 57% of all U S commercial lives have access to Nazi.
Eric <unk>: We are approaching a tipping point in market access that will enable more healthcare providers to prescribe nafie without restrictions.
Eric <unk>: In the coming months as patients schedule appointments and visit their allergy care providers, we anticipate that access to nafie will become quicker and easier.
Eric <unk>: For patients with commercial insurance or assistance program ensures that most individuals will only have a 25 dollar copay.
Eric <unk>: Which is less than a typical $40 for a generic injector.
Eric Karas: We are making it easier for patients as the copay support is now automatically applied at the point of sale in retail pharmacies. Additionally, for eligible patients who are uninsured or underinsured, we provide NEFI at no cost through our patient assistance program. These programs reflect our commitment to ensure that all patients at risk of an allergic reaction have access to this potentially life-saving treatment.
Eric <unk>: We are making it easier for patients as the copay support is now automatically applied at the point of sale and retail pharmacies.
Eric <unk>: Additionally for eligible patients who are uninsured or underinsured, we provide nephew at no cost through our patient assistance program.
Eric <unk>: These programs reflect our commitment to ensure that all patients at risk of an allergic reaction had access to this potentially life saving treatment.
Eric Karas: As we turn to the third pillar of our commercial strategy, patient awareness, we are excited to announce the launch of a broad and comprehensive direct consumer campaign that will redefine the epinephrine landscape and establish NEPI as a household name. Our campaign titled Hello Nephi, Goodbye Needles will debut tomorrow. We are utilizing a multi-channel strategy to reach patients, parents, and caregivers where they are, including connected TV, broadcast, social media platforms, health-related websites, print, pharmacies, and point-of-care settings. Our data-driven media plan aims to engage high-value audiences during key seasonal periods, such as back-to-school and the availability of our one-milligram dose.
Eric <unk>: As we turn to the third pillar of our commercial strategy patient awareness. We're excited to announce the launch of a broad and comprehensive direct to consumer campaign that will redefine the epinephrine landscape and establish <unk> as a household name.
Our campaign titled Hello, Nafie Goodbye Nieto's will debut Tomorrow.
Eric <unk>: We're utilizing a multichannel strategy to reach patients parents and caregivers were they are including connected television broadcast social media platforms health related websites prints pharmacies and point of care settings.
Eric <unk>: Our data driven media plan aimed to engage high value audiences during key seasonal periods, such as back to school and the availability of our one milligram dose.
Eric Karas: We expect to reach 95% of severe allergy patients and their caregivers. Our investment is essential for achieving our goals of raising awareness and encouraging adoption. Every aspect of this campaign is designed to empower patients and their caregivers to position NEFI as a standard of care and drive prescription growth.
Eric <unk>: We expect to reach 95% of severe allergy patients and their caregivers our investment is essential for achieving our goals of raising awareness and encouraging adoption.
Eric <unk>: Every aspect of this campaign is designed to empower patients and their caregivers to position Delphi as the standard of care and drive prescription growth.
Eric Karas: We believe our DTC campaign could generate significant revenue in the second half of 2025 and beyond, while establishing Nephi as a leading brand in severe allergy care.
Eric <unk>: We believe our DTC campaign could generate significant revenue in the second half of 2025 and beyond while establishing <unk> as a leading brand in severe allergy cure.
Kathy Scott: I'll now pass the call over to Kathy to walk through our financial Thank you, Eric. The details of our financial results can be found in our earnings press release and 10-Q filing, so I'll provide a summary. For the first quarter of 2025, we recorded total revenue of $8 million. This is comprised of $7.8 million in U.S. net product revenue for NEPI, and we expect to see a continued ramp-up in product revenue as our commercial efforts accelerate. In addition, we had $0.2 million in collaboration revenue, which was the recognition of deferred revenue from performance obligations related to our collaboration and license agreement with ALK.
Eric <unk>: I'll now pass the call over to Kathy to walk through our financials.
Kathy Scott: Thank you Eric the details of our financial results can be found in our earnings press release, and 10-Q filings. So I'll provide a summary.
Kathy Scott: The first quarter of 2025, we recorded total revenue of $8 million.
Kathy Scott: This is comprised of $7 8 million in U S. Net product revenue for lumpy and we expect to see a continued ramp up in product revenue as our commercial efforts accelerate.
Kathy Scott: In addition, we had $2 million in collaboration revenue, which was the recognition of deferred revenue our performance obligations related to our collaboration and license agreement with Alk.
Kathy Scott: Under our new co-promotion agreement with ALK, ARS will continue to recognize all net product revenue in the U.S. and retain full responsibility for commercialization. NEFI will be detailed by ALK sales representatives in primary position for the first two years and co-primary position during the last two years of the four-year agreement.
Kathy Scott: Under our new co promotion agreement with Alk era will continue to recognize net product revenue in the U S and retain full responsibility for commercialization.
Nothing will be detailed by Alk sales representatives and primary physician for the first two years and co primary position during the last two years at the four year agreement.
Kathy Scott: Additional terms of our co-promotional agreement can be found in our 8K and 10Q filings.
Kathy Scott: Additional terms of our co promotional agreement can be found in our 8-K and 10-Q filings.
Kathy Scott: In terms of our operating expenses, cost of goods sold for the first quarter was $1.1 million.
Kathy Scott: In terms of our operating expenses constant.
Kathy Scott: Cost of goods sold for the first quarter was $1 1 million.
Kathy Scott: Our COGS continues to benefit from some inventory that was expensed prior to FDA approval in August 2024.
Kathy Scott: <unk> continues to benefit.
Kathy Scott: Inventory that was expensed prior to FDA approval in August 2024.
Kathy Scott: R&D expenses for the first quarter were $3 million, primarily related to clinical expenses and product development. sales, general and administrative expenses were $41.1 million for the first quarter, largely tied to personnel, sales and marketing expenses associated with the commercialization of Nepi in the U.S.
Kathy Scott: R&D expenses for the first quarter were 3 million, primarily related to clinical expenses and product development.
Kathy Scott: Sales general and administrative expenses were $41 $1 million for the first quarter largely tied to personnel sales and marketing expenses associated with the commercialization of lumpy in the U S.
Kathy Scott: As Eric noted, we are launching a comprehensive DTC campaign tomorrow, which has a planned investment of $40 to $50 million for the remainder of 2025. The bulk of this expense will be recognized in our SG&A in the second and third quarters of the year. And we believe we will start seeing the benefits of the DTC campaign starting in Q3 2025. Also, with the planned DTC spend and additional investments in pediatric access and commercialization with our partner ALK, we project total 2025 operating expenses of between $210 and $220 million, excluding stock-based compensation and cost of goods sold.
Kathy Scott: As Eric noted we are launching a comprehensive DTC campaign tomorrow, which has a planned investment of $40 million to $50 million for the remainder of 2025.
Kathy Scott: The bulk of that expense will be recognized in our SG&A in the second and third quarters at the year and we believe we will start seeing the benefit of the DTC campaign, starting over Q3 2025.
Kathy Scott: Also with the planned DTC spend and additional investments in pediatric access and commercialization with our partner Alk. We project total 2025 operating expenses.
Kathy Scott: <unk> 2010, and $220 million, excluding stock based compensation and cost of goods sold.
Kathy Scott: The ALK Co-Promotion Agreement adds approximately $8 million in operating expense to the previous guidance for 2025.
Kathy Scott: RK co promotion agreement at approximately $8 million in operating expense to the previous guidance for 2025.
Kathy Scott: We believe this is a solid investment in our future growth potential in the pediatric market. ARS' portion of the commercial expenses under the co-promotion agreement with ALK will be recorded as an expense on our P&L for the first year of the agreement, but will accrue and not be paid in cash to ALK until the second year of the agreement. Any future performance based payments to ALK based on achieving certain market share thresholds are expected to be recognized as operating expenses.
Kathy Scott: We believe this is a solid investment in our future growth potential in the pediatric market.
Kathy Scott: <unk> portion of the commercial expenses under the co promotion agreement with Alk will be recorded as an expense on our P&L for the first year of the agreement.
Kathy Scott: That will accrue and not be paid in cash to alk until the second year of the equipment.
Kathy Scott: Any future are performance based.
Kathy Scott: Two alk based on achieving certain market share thresholds are expected to be recognized as operating expenses.
Kathy Scott: Lastly, we reported a net loss of $33.9 million or $0.35 per share for the first quarter. Overall, we are well capitalized today with a disciplined and strategic investment approach to support the commercial execution of NEPI, while also advancing development of our nasal epinephrine program in new indications such as urticaria.
Kathy Scott: Lastly, we reported a net loss of $33 9 million or <unk> 35 per share for the first quarter.
Kathy Scott: Overall, we are well capitalized today with a disciplined and strategic investment approach to support the commercial execution that lumpy. While also advancing development of our nasal epinephrine program in new indications such as urticaria.
Kathy Scott: As of March 31st, 2025, we had cash, cash equivalents, and short-term investments of $275.7 million. We reiterate today that based on our current plans, we have an operating runway of at least three years.
Kathy Scott: As of March 31, 2025, we had cash cash equivalents and short term investments of $275 7 million.
Kathy Scott: We reiterate today that based on our current plans, we have an operating runway at least three years.
Richard Lowenthal: With that, I'll pass the call back over to Rick. Thank you, Kathy. As you heard, we are executing from a position of strength. We've seen momentum across the board, from strong early revenue and formulary wins to physician testimonials and real-world adoption. This reinforces our belief that NEFI is a truly transformative product.
Rich: With that I'll pass the call back over to rich.
Rich: Thank you Kathy.
Rich: As you heard we are executing from a position of strength.
Rich: We've seen the momentum across the board from strong early revenue and formulary wins to physician testimonials and real world adoption. This reinforces our belief that Murphy is a truly transformative product.
Richard Lowenthal: I am proud of the work our team has done and I'm grateful to our partners, the medical and advocacy communities, and above all else, the patients and caregivers for their support and enthusiasm.
Rich: I am proud of the work our team has done and I'm grateful to our partners the medical and advocacy communities.
Rich: And above all else the patients and caregivers for their support and enthusiasm.
Operator: Operator, please open the line for questions. Thank you. And as a reminder to ask a question, press star 11 on your telephone and wait for your name to be announced. To remove yourself, press star 11 again. Thank you.
Rich: Operator, please open the line for questions. Thank.
Speaker Change: Thank you and as a reminder to ask a question Chris Star One one on your telephone.
Wait for your name to be announced to remove yourself press star one again.
Operator: Please stand by for our first question.
Speaker Change: Please standby for our first question.
Ryan Deschner: and it comes from the line of Ryan Deschner with Raymond James. Please proceed. Good morning. Thanks for the question.
Ryan <unk>: And it comes from the line of Ryan <unk> with Raymond James. Please proceed.
Speaker Change: Good morning, Thanks for the question.
Ryan Deschner: I'm curious how much of the 1Q sales figure is attributed to inventory and how you're thinking about inventory distribution over the next two quarters, you know, going into peak epinephrine season as well as following it.
Speaker Change: Curious how much of the <unk> sales figure is attributed to inventory and how youre thinking about image.
Speaker Change: And over the next two quarters.
Ryan Deschner: And I have a follow up.
Speaker Change: Going into peak epinephrine, Steven as well, it's following it and I have a follow up.
Richard Lowenthal: Yeah, hi, this is Rich Lowenthal, Ryan, how are you? Our first quarter numbers were very little influenced by inventory. We're seeing fairly steady inventories at this point. And it was prior to the one milligram being launched. So this was all two milligram sales, of course. But we don't think anybody had much influence on the on the sales this quarter. Got it.
Speaker Change: Yes, Hi, this is rich loans are Ryan how are you.
Speaker Change: Our first quarter numbers were very little influenced by inventory, we're seeing fairly steady inventories at this point.
Speaker Change: And it was prior to the one milligram.
Speaker Change: Being launched so this was all two milligram sales of course.
Speaker Change: But we don't think it really had much influence on the on.
Speaker Change: The sales this quarter.
Richard Lowenthal: And what would the growth in this discount look like in the first quarter? How meaningful would that change from fourth quarter to first quarter? Kathy can give you the full details, but as expected, the gross net will slowly come down towards the 50% mark. We're seeing a good uptake of insurance coverage and fewer cash sales, and that will obviously bring down our gross net when we get better insurance coverage.
Speaker Change: Got it.
Speaker Change: And that would be growth in that discount look like in the first quarter, how meaningful would that change from fourth quarter to first quarter.
Speaker Change: Kathy can give you the full details but is as expected the gross to net will slowly come down towards 50% Mark.
Speaker Change: We're seeing good uptake of insurance coverage and.
Speaker Change: Fewer cash sales and that will obviously bring down our.
Kathy Scott: But Kathy, do you want to speak to the gross net in this quarter? Sure.
Speaker Change: Our gross to net.
Speaker Change: When we get better insurance coverage with Kathy do you want to speak to the gross to net in this quarter for sure good morning Ryan.
Kathy Scott: Good morning, Ryan. Yes, Q4 was definitely a higher gross net than Q1. As Rich said, our payout coverage is coming online, and we were kind of hovering around the 60, a little over 60% for Q1, but do expect that to go down to closer to 50% as we go forward.
Speaker Change: Yes, Q4 was definitely a higher gross to net in Q1 as rich said, our payer coverage is coming online.
Speaker Change: And we were kind of hovering around that 60% of our 60% for Q1, but you expect that to go down to closer to 50%.
Speaker Change: Okay.
Good luck.
Ryan Deschner: Thanks, Kathy. Thanks, Rich. Thank you so much.
Speaker Change: Thanks, Kathy Thanks rich.
Operator: One moment for our next question.
Speaker Change: Thank you so much one moment for our next question.
Josh Schimmer: and he comes from the line of Josh Schimmer with Cantor. Please proceed. Thanks for taking the questions. Just a couple of quick ones.
Moderator: And he comes from the line of Josh Shanker with Cantor. Please proceed.
Josh Shanker: Great. Thanks for taking the questions just a couple of quick ones first when you've worked through the inventory on hand.
Josh Schimmer: First, when you've worked through the inventory on hand, what do you expect cost of goods to settle out at? And then for the 50% of commercial lives that have access, can you confirm that there are no prior author requirements for access to NFE for them? Sorry, can you repeat the second question, Josh? The update was over 50% of commercialized have access to NFE. You just want to make sure that there are no prior author requirements for those for those patients. Right. Okay, so let's start there. Currently about 57% of people have coverage with no prior authorization.
Moderator: What do you expect cost of goods.
Moderator: Settle out at and then for the.
Moderator: 50%.
Moderator: Commercial lives that have access can you confirm that there are no prior off requirements for for access to Murphy for them.
Josh Shanker: Sorry can you repeat the second question Josh.
Josh Shanker: And then the update with over 50% of commercial lives have access to Murphy just want to make sure that there are no prior off requirements for those for those patients right. Okay. So let's start there are currently about 57%.
Josh Shanker: We'll have coverage with no prior authorization.
Josh Schimmer: Okay, if you count with prior authorization, we're probably close to 90% Josh. So we're not really considering the prior authorization. as a full coverage, partial but not full. We do see good approval rates of prior authorizations between 60 and 80% depending on the insurer. But again, we got to get the doctors to write those prior authorizations. So that's a barrier. But 57% right now have coverage on NEFI without any prior authorization or any other paperwork required. They can get a prescription and go to the pharmacy and pick up the prescription at the pharmacy. Okay. And then with regards to the first question, I don't believe we've given details on the cog.
Josh Shanker: Okay. If you count with prior authorization, we're probably close to 90% Josh.
Josh Shanker: So we're not really considering the prior authorization.
Josh Shanker: As a full coverage partial but not full.
Josh Shanker: We do see good.
Josh Shanker: Approval rates of prior authorizations between 60, and 80% depending on the insurer.
Josh Shanker: But.
Josh Shanker: Again, we got to get the doctors to write those prior authorization. So that's a barrier.
Josh Shanker: 57% right now have coverage on nephew without any prior authorization or any other paperwork required they can get a prescription and go to the pharmacy and pick up the prescription at the pharmacy.
Josh Shanker: Okay.
Josh Shanker: And then with regards to the first question I don't believe we've.
Josh Shanker: Given details on the call.
Kathy Scott: Other than generally the cost of goods are, you know, in the ballpark of less, you know, they're pretty low. I don't think we've given exact guidance. Have we, Justin, on this? No, I think the question was, whether, as we use up our inventory, What happens to the cost of goods? Kathy, do you want to speak to that? Sure, no, we definitely have, as just in our time queue, we've got some no-cost inventory that was expensed prior to FDA approval. So as we wean that into our inventory, which should be come up in the next 18 months or so, we would expect that inventory cogs would, the cogs would increase slightly.
Josh Shanker: Other than generally the cost of goods are.
Josh Shanker: And in the ballpark of that.
Josh Shanker: But they are pretty pretty low I don't think we've given exact guidance have we just end on this.
Josh Shanker: No I think the question was.
Josh Shanker: Weather.
Josh Shanker: Use up our inventory.
Josh Shanker: What happens to cost of goods.
Kathy Scott: Kathy do you want to speak to that.
Kathy Scott: Sure we definitely.
Speaker Change: As disclosed in our 10-Q, we've got no.
Speaker Change: Cost inventory that was expense prior to FDA approval.
Speaker Change: As we bring that into our inventory, which should be helpful.
Speaker Change: 18 months or so we would expect that inventory and Cogs.
The cause of the increase slightly.
Kathy Scott: But for the most part, that zero-cost inventory is the raw material, so we're still paying for manufacturing for those, for the inventory that's feeding cogs in the near term. Okay, thanks. Thank you. One moment, please.
Speaker Change: Got.
Speaker Change: For the most part.
Speaker Change: Aircraft inventories of raw materials that we're still paying for manufacturing.
Speaker Change: Yes.
Speaker Change: On the inventory.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: In the near term.
Speaker Change: Okay. Thank you.
Speaker Change: Thank you one moment, please and necessary.
Operator: And as a reminder, if you do have a question, press star 11 to get in the queue.
Speaker Change: As a reminder, if you do have a question Chris Star one one to get in the queue.
Roanna Ruiz: Our next question is from the line of Roanna Ruiz with Lyrinc Partners. Please proceed. Hey, morning, everyone.
Speaker Change: Our next question is from the line of Ron <unk> with Leerink partners. Please proceed.
Roanna Ruiz: A couple for me.
Speaker Change: Hey, good morning, everyone. A couple for me could you talk about the strength of the nephew experience program in helping to convert possible later adopter physicians into broader prescribers of Nazi and what has the feedback been so far in terms of some details you've heard recently about you said nafie there any updates on.
Richard Lowenthal: Could you talk about the strength of the NEFI experience program and in helping to convert possible later adopter physicians into broader prescribers of NEFI? And what is the feedback been so far in terms of some details you've heard recently about use of NEFI there? Any updates on single versus twice dosing of NEFI, for example? Yeah, so I can give you a little update. So, as Eric pointed out earlier, where the NEPHE experience program's been very, very successful, more than 2500 positions are enrolled and have NEPHE, a lot of them have used everything we provided. So, we are going to be expanding the program to not only include the 1 milligram, but possibly also for those doctors that have already used their supply of NEPHE 2 milligram to give them additional supply of 2 milligrams. With the outcome so far, we're seeing very good results just by surveying the sites that have actually administered nephi to patients.
Speaker Change: Single versus twice dosing of Nazi for example.
Speaker Change: Yes, so I can give you a little update so as Eric pointed out earlier.
Speaker Change: Nerf experience programs been very very successful more than 2700 physicians are enrolled and have Murphy.
Speaker Change: A lot of them have used.
Speaker Change: Everything we provided so we are going to be expanding the.
Speaker Change: Program.
Speaker Change: To not only include the one milligram, but possibly also for those doctors that have already used their supply of Murphy two milligram to give them additional supply of two milligram.
With the outcome. So far we're seeing very good results just by surveying the sites that have actually administered in Effie.
Richard Lowenthal: The experiences are coming back very positive. We're still, the results are basically looking like injections, so still around 90% are getting response with a single dose of nephi. About 10% are needing a second dose. That's the same as what's observed with injection. So we believe that's very positive feedback. And in general, the doctors have been very positive about their experience so far. So we are planning to potentially publish some of this shortly. We could then obviously be able to use that to help other doctors that may be still reluctant or still questioning whether real-world data is available because this is a very large subset of real-world data right now.
Speaker Change: Two patients experiences are coming back very positive.
Speaker Change: We're still the results are basically looking like injection. So still around 90% are getting response with a single dose of Murphy about 10% are needing a second dose.
Speaker Change: Same as whats.
Speaker Change: Observes with injection.
Speaker Change: So we believe thats very positive feedback and in general the doctors have been very positive about their experience. So far so we are planning to potentially publish some of this.
Speaker Change: Shortly.
Speaker Change: We could then obviously be able to use that to help other doctors that may be still reluctant or still questioning.
Speaker Change: Whether real world data is available because this is a very large subset of real world data right now.
Richard Lowenthal: And then we are looking forward to the one milligram being out there and being used as well since a lot of these children that get oral food challenge are younger.
Speaker Change: And then we are looking forward to the one milligram being out there and being used as well since a lot of these children to get oral food challenge are younger.
Roanna Ruiz: And then maybe towards the American College meeting, we may also put out an abstract on the nephi experience program and the results. Got it. That helps.
Speaker Change: And then maybe towards the American College meeting we May also put out an abstract on the Murphy experience program in the results.
Richard Lowenthal: And a quick follow up for me on the payer fronts and insurance coverage. How are you tracking against your goal of I think 80% commercial lives by 3Q? And could you remind us are there any payers still in negotiations or in progress right now that you would need to secure to get there? Yeah, I think, well, there's certainly a number of payers that we're still working with. We do have the contract with Zinc, but we're still working with Caremark and Aetna to cover NEFI under that agreement. So that's obviously a big insurer that we're still working with to get final agreement on.
Speaker Change: Got it that helps and a quick follow up for me on the payer front fin insurance coverage. How are you tracking against your goal of 80% commercial labs by three Q and could you remind us are there any payers still in negotiations are in progress right now that you would need to secure.
Speaker Change: To get there.
Yes.
Speaker Change: Well there is certainly a number of payers that we're still working with.
We do have the contract with zinc, but we're still working with caremark and Aetna to cover nephew under that agreement.
Speaker Change: That's obviously.
Speaker Change: Big ensure that we're still working with to get final agreement on.
Richard Lowenthal: We're also working with Prime and other Blue Cross companies, of course, to get with a lot of them. We do have some Blue Cross companies already covering.
Speaker Change: We're also working with prime and other Blue Cross companies of course to get agreement with a lot of them. We do have some blue cross companies already covering.
Richard Lowenthal: We generally have a scorecard on our website, so it's fairly transparent as to who's covering and who's still pending coverage. But again, even Caremark right now is accepting PAs and approving at a very high percentage, as I said, in the upper range of the 60 to 80% I mentioned. So they are very, quickly approving of prior authorizations, but they are still requiring a prior authorization for NEFI at this point. But we are trying to work through that. So those are some of the bigger ones that we want to try to get across the finish line to get towards that 80% coverage.
Speaker Change: We generally have a scorecard on our website. So it's fairly transparent as to who is covering and who is still.
Speaker Change: Pending coverage, but again, even even caremark right now is.
Speaker Change: As accepting <unk> and improving at a very high percentage.
Speaker Change: As I said in the upper range of the 60% to 80% I mentioned.
Speaker Change: So they are very very quickly approving a prior authorization, but they are still requiring a prior authorization for NSE at this point, but we are trying to work through that so those are some of the bigger ones that we want to try to get across the finish line.
Speaker Change: To get towards that 80% coverage.
Richard Lowenthal: But in general, with prior authorization, we're already above 90%. There's only a handful of companies that are actually blocking NEFI right now. So that's actually very positive as well.
Speaker Change: But in general with prior authorization, we're already above 90%.
Speaker Change: There is only.
Speaker Change: The handful of companies that are actually blocking that view right now so thats actually very positive as well.
Roanna Ruiz: Yep, sounds good. Thanks.
Speaker Change: Okay. It sounds good thanks.
Operator: Thank you.
Speaker Change: Thank you.
Andreas Argiridis: Our next question comes from Andreas Argiridis with Oppenheimer. Please proceed. Andres, your line is open. We're ready for your questions.
Speaker Change: Our next question comes from Andreas <unk> with Oppenheimer. Please proceed.
Speaker Change: Andrew Your line is open.
Speaker Change: We're ready for your questions.
Operator: Okay, we'll go back to the next question if you can re-queue, please, one moment.
Speaker Change: Okay. We'll go back to the next question. If you can re queue. Please one moment.
Lachlan Hanbury-Brown: Our next question comes from Lachlan Hanbury-Brown with William Blair. Please proceed. Hey guys, thanks for the questions. I was wondering if you could provide any detail on the number of prescriptions that were actually, you know, written and filled in the quarter as we try to understand what the sort of capture rate of IQVIA and other providers are, and could you provide any color on, you know, you've talked about the PAs and the high success rate there. Can you talk about how many of the prescriptions in the past quarter have been covered versus required a prior auth.
Speaker Change: Our next question comes from Lachlan Hanbury Brown with William Blair. Please proceed.
Speaker Change: Hey, guys. Thanks for the questions I was wondering if you could provide any detail on the number of prescriptions.
Speaker Change: Were actually written and filled in the quarter as we try to understand what the sort of capture writers. Thank you another providers.
Speaker Change: And could you provide any color on you've talked about.
Speaker Change: It's in the high success rate there.
Speaker Change: Can you talk about how many of the prescriptions in the past quarter.
Speaker Change: Calvert versus require prior off.
Eric Karas: Okay, I think, Eric, you should probably take that question. Sure, sounds good. So first, when we look at the prescription data through IQVIA, we've talked about this before, and it's not 100% capture of everything. Our cash prescriptions through Blink are not covered. But roughly, if you look at the extended unit data on a weekly basis, it's about 13,000 prescriptions or units. But again, that's not a complete capture. And then as far as the PAs, if you look at the beginning of this year, we were looking at about 70% of prescriptions required a PA. That's down to about 45%.
Speaker Change: Okay, I think Eric you should probably take that question.
Speaker Change: Sure sounds good so first when we look at the prescription data through <unk> here, we've talked about this before thats not 100% capture of everything our cash prescriptions through blink or not covered but roughly if you look at the extended unit data on a weekly basis, it's about 13000 prescriptions.
Speaker Change: Our units, but again, that's not a complete capture and then as far as the <unk>. If you look at the beginning of this year.
Speaker Change: We're looking at about 70%.
Speaker Change: Prescriptions required FDA, that's down to about 45% so as rich went through and I went through in our comments.
Eric Karas: So as Rich went through, and I went through our comments. We're seeing the PAs come down, which is a very positive thing. We work closely with the doctors and obviously their staff to submit the PAs. We're continuing to drive that. And I think with six to seven months under our belt, we have really good insights in terms of the criteria that's evaluated in terms of an approval of a PA.
Speaker Change: We're seeing the <unk> come down which is a very positive thing.
Speaker Change: We work closely with the doctors and obviously their staff to submit the <unk>, we're continuing to drive that and I think it was six to seven months under our belt, we have really good insights in terms of the criteria.
Speaker Change: Evaluated in terms of an approval. So our sales team continues to share that information with office managers and those individuals in the office that are responsible for those notes.
Eric Karas: So our sales team continues to share that information with office managers, and those individuals in the office that are responsible for those All right, thanks. And could you also Talk about the sort of overlap between the NEPHE experience docs and the high prescribers. I mean, the two and a half thousand odd. Doctors in the NEPHE Experience Program. Are they all in that? sort of the high prescribing bucket at the moment. How's that sort of conversion look? Yeah, Rich, I can take that one, too. So when we start looking at kind of our first, I'll say from a decile perspective, about 81% of our decile tens, that's the highest volume of physicians are writing for NEPHEW, which is great.
Speaker Change: Alright, Thanks could you also.
Speaker Change: Talk about the.
Speaker Change: At between the nephew experienced all can the high prescribers.
Speaker Change: <unk> thousand.
Speaker Change: Doctors in the NFC experience program at <unk> and not <unk>.
Speaker Change: The high prescribing bucket at the moment and how is that sort of conversion looking.
Speaker Change: Yes, rich I can take that one too.
Rich: If you start looking at kind of our first I'll say from a desktop perspective about 81% of our desktop tens that's our highest volume our physicians are writing or nephew, which is great. If you look at the combination of eight nine turns it's about 75% we do see that doctors that are part of the <unk>.
Eric Karas: If you look at the combination of eights, nines and tens, it's about 75%. We do see that doctors that are part of the experience program, on average, are writing about two and a half to three times more than the overall average that we're seeing at a national level. So that program is exactly doing what we expected in terms of building trust and confidence. Doctors really like it because they're able to get firsthand experience. And when they talk to patients, they can reference that and tell stories about what they've seen in their own clinical practice. So as Rich said, we're looking to get that out more broadly in the second half of the year.
Rich: Spirits program on average are writing about two five to three times more than the overall average that we're seeing at a national level. So that program is exactly doing what we expected in terms of building trust and confidence.
Doctors really like it because they are able to get firsthand experience and when they talk to patients. They can referenced that and tell stories about what they've seen in their own clinical practice. So as rich said, we're looking to get that out more broadly in the second half of the year, but we're starting to do that are ready to with our peer to peer education, our speaker programs.
Eric Karas: But we're starting to do that already, too, with our peer to peer education, our speaker programs. Most of the speakers are part of the program. And have had firsthand experience. So they're able to share that when they're speaking to other health care providers and their peers. So we're going to continue driving that because we clearly know that this program is really hitting the mark of what we expected. Thanks.
Rich: Most of the speakers are part of the program.
Rich: And have had firsthand experience. So they are able to share that when they are speaking to other health care providers and their peers. So we're going to continue driving that because we clearly know that this program is really hitting the market what we expected it to do.
Rich: Got it thanks.
Andreas Argiridis: Thank you. Our next question is from Andre Argyris with Oppenheimer. Please proceed. Good morning and thanks for taking our question. Sorry for the disruption there earlier.
Rich: Thank you.
Speaker Change: Our next question is from Andrew <unk> with Oppenheimer. Please proceed.
Andrew: Hi, good morning, and thanks for taking our questions sorry.
Speaker Change: And the disruption there earlier.
Richard Lowenthal: Rich, can you just talk about how you're thinking about the rest of the year in terms of, I know you're not providing guidance, but how the Q1 results are tracking for that inflection point in the second half of the year? Yeah, I think I think we're still tracking according to plan and exactly where we believe we should be right now. We are obviously expecting to see that inflection in the 3rd quarter. The August September timeframe tends to be peak sales for this product, especially with the children. Our sales are still heavily weighted towards children with the 2 milligram.
Speaker Change: Can you just talk about how you are thinking about the rest of the year.
Speaker Change: In terms of I know youre not providing guidance.
Speaker Change: Q1 results are tracking for that.
Speaker Change: That inflection point in the second half of the year. Thanks.
Speaker Change: Yes, I think I think we're still tracking according to plan and exactly where we believe we should be right now.
Speaker Change: We are obviously expecting to see that inflection in the third quarter.
Speaker Change: The August September timeframe tends to be peak sales for this product, especially with the children.
Speaker Change: Our sales are still heavily weighted towards children with <unk> two milligram.
Richard Lowenthal: We expect that to even. Uh, the expanded greater, you know, focus on children with the 1 milligram. Um, so we, we do expect to see, uh, that inflection point start this summer and with the DTC campaign and 1 milligram available, we think that that's where we'll start to see a real upturn and, um, in market share.
Speaker Change: We expect that to even.
Speaker Change: B.
Speaker Change: Handed greater.
Speaker Change: <unk>.
Speaker Change: Focus on children with the one milligram.
Speaker Change: So we do expect to see.
Speaker Change: That inflection point start this summer and with the DTC campaign and one milligram available we think that that's where we'll start to see a real upturn.
Speaker Change: Our market share.
Richard Lowenthal: And then just a quick follow up. Do you still think that prior ops are the biggest impediment at the moment? And so when when you get to the broader broad access that you're you're guiding towards that, that'll be a real, a real boost. Yeah, I mean, I think the prior authorizations, when we have low insurance coverage is an impediment when we start to get higher and higher up in insurance coverage. There's fewer prior auth the docs have to deal with, and they're more than happy to write prior authorizations. They just don't want to write too many.
Speaker Change: And then just a quick follow up do you still.
Speaker Change: Prior offs are the biggest.
Speaker Change: At the moment and so when you Jed.
Speaker Change: Brian broad access that youre guiding towards that that'll be a real a real boost.
Speaker Change: Yes, I mean, I think the prior authorizations, when we had low insurance coverage as an impediment when we start to get higher and higher up in insurance coverage.
Speaker Change: There is fewer prior off the docs have to deal with and they are more than happy to write prior authorizations. They just don't want to write to many so it's.
Speaker Change: As a matter of volume right and so.
Richard Lowenthal: So it's a matter of volume, right? And so we do see the number of prior authorizations coming down. We see the approval rates increasing. So that's a good sign, and that encourages doctors to continue to write prior authorizations for those patients that are not getting automatic insurance coverage without paperwork. So that's encouraging. So we do think it's, you know, a headwind. But it becomes less and less and less as time goes by, because the remaining patients that are not covered, those insurance companies that are delaying, the doctors are more willing to write the prior authorizations, because there's just fewer.
Speaker Change: We do see.
Speaker Change: The number of prior authorizations coming down we see the approval rates increasing.
Speaker Change: So that's a good sign and that encourages doctors to continue to write prior authorizations for those patients that are not getting it automatic insurance coverage.
Speaker Change: Without paperwork.
Speaker Change: So that's encouraging so we do think it's.
Speaker Change: A headwind.
Speaker Change: But it becomes less and less and less as time goes by because the remaining patients that are not covered those insurance companies that are delaying.
Speaker Change: They are the doctors are more willing to write the prior authorizations, because theyre just fewer of them.
Richard Lowenthal: Does that make sense? It does.
That makes sense.
Andreas Argiridis: Thanks and congrats on the quarter. Thank you.
Speaker Change: It does thanks and congrats on the quarter. Thanks. Thank you. Thank you.
Lewis Chen: Our next question comes from the line of Lewis Chen with Scotiabank. Hi, thanks for taking my questions here. So I just wanted to ask you how we can think about the sales targets that ALK has to hit in order to get to the performance based payments that you've discussed. And then the second thing is, what is your market share now? Where do you hope to be by the end of the year?
Speaker Change: Thank you.
Speaker Change: Our next question comes from the line of Louise Chen with Scotia Bank.
Hi, Thanks for taking my questions here. So I just wanted to ask you. How we can think about the sales target that alk has to hit in order to get to the performance based payments that you have discussed and then the second thing is what is your market share now and where do you hope to be by the end of the year. Thank you.
Eric Karas: Thank Eric, I think you should take that question if okay. Yeah, let me take the second part first. So when you look at a market share overall in the category of the basket of epinephrine across the board, brand and generic, we have about a 1.3% share. But what we also focus on more importantly, is our targets of the doctors that we're calling on directly, that's about 6.2. And then we also have super targets, which is about 7.5. So these are doctors that we spend, you know, extra time in in terms of our promotion. And so As far as the ALK co-promote, this is a great opportunity that we are very excited about.
Eric <unk>: Eric I think you should take that question if okay.
Eric <unk>: Yes, let me take the second part first so when you look at our market share overall in the category of the basket of epinephrine across the board brand and generic.
Eric <unk>: We have about a 1.3% sure but we also focus on more importantly is our targets of the doctors that we're calling on directly that's about 662 and then we also have super targets, which is about 775. So these are doctors that we spend.
Eric <unk>: Extra time and in terms of our promotion and focus.
Eric <unk>: As far as the Alk co promote this is a great opportunity that we are very excited about obviously, we're able to expand our footprint the number of reps.
Eric Karas: Obviously, we're able to expand our footprint, the number of reps, you know, we're going to grow from about 12,500 positions with direct promotion up to about 20,000. So we have some milestone targets in terms of market share that we think is very reasonable to hit those targets. And especially as we've articulated, we've got so many catalysts coming up in the next three to six months here with the one milligram, the DTC commercial, and continued pair coverage improving. So we feel really confident about this co-promote and look forward to the impact that they're going to have in the pediatric.
Eric <unk>: We're going to grow from about 12500 physicians with direct promotion up to about 20000. So we have some milestone targets in terms of market share that we think is very reasonable.
You hit those targets and especially as we've articulated we got so many catalysts coming up in the next three to six months here with the one milligram.
Eric <unk>: DTC commercial and continued payer coverage improving so we feel really confident about this co promote and look forward to the impact that theyre going to have in the pediatric space.
Eric <unk>: Okay. Thank you.
Eric <unk>: Thank you.
Lachlan Hanbury-Brown: And our last question is from Lachlan Hanbury-Brown with William Blair. Please proceed. Hey, thanks for the follow up. I just wanted to confirm, Cathy, I think you said you're expecting most of the sort of DTC marketing to be in Q2 and Q3. So I wanted to confirm, should we sort of expect a tail off in Q4? Or is it more that most of the sort of growth will be Q2 and Q3 and then it will be steady thereafter? Sure, we do expect to spend some in Q4, but, as I said in my remarks, the majority in Q2 and Q3.
Speaker Change: And our last question is from Lachlan Hanbury Brown with William Blair. Please proceed.
Speaker Change: Hey, Thanks for the follow up I, just wanted to confirm Kathy I think you said, you're expecting most of the sort of DTC marketing to be in Q2 and Q3. So I wanted to confirm should we sort of expect to tail off in Q4 or is it more but most of the sort of growth will be Q2, Q3, and then it will be steady thereafter.
Speaker Change: Sure, we do expect to spend some in Q4.
Speaker Change: As I said in my remarks, the majority in Q2 and Q3.
Kathy Scott: And as Rich said, the inflection point for sales... we would expect to start really in Q3. So does that answer your question? Yeah.
Speaker Change: And the <unk>, which set the inflection point for sales.
Speaker Change: We would expect to start really in Q3 does that answer your question.
Speaker Change: Yes.
Richard Lowenthal: And Lachlan, just to add to that, I mean, we obviously are doing that very intentionally to front load the awareness campaign before the summer period, right, which is really August, September is where you'll see the big peak. in epinephrine sales. So we want to make sure we get to all the consumers and make sure they're aware that NEFI's available. So the sooner we can do that in the summer period, the better. So we've obviously put a lot of the spend earlier and then we'll taper off after that and get to a steady stream. Okay, thanks.
Speaker Change: Yes. Thanks.
Speaker Change: And Aqua and just add to that I mean.
Speaker Change: We obviously are doing that very intentionally to frontload the.
Speaker Change: Awareness campaign before the summer period, right, which is really August September is where youll see the big peak.
Speaker Change: In epinephrine sales so.
Speaker Change: We want to make sure.
Speaker Change: When we get to all the consumers and make sure. They are aware of the nephews available.
Speaker Change: So the sooner we can do that in the summer periods are better. So we've obviously put a lot of the spend earlier.
Speaker Change: And then we will taper off after that and get to a steady state.
Speaker Change: Okay. Thanks.
Operator: Thank you.
Operator: And with that, ladies and gentlemen, we conclude our Q&A session and program for today. Thank you all for participating. You may now disconnect.
Speaker Change: Thank you and with that ladies and gentlemen, we'll conclude our Q&A session and program for today. Thank you all for participating you may now disconnect.
Speaker Change: Okay.
Speaker Change: [music].
Operator: Thanks for watching!
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Yes.
[music].