Aerie Pharmaceuticals (AERI) 7 Nov 192019 Q3 Earnings call transcript

Good afternoon, ladies and gentlemen. Thank you for standing by. And welcome to the Aerie Pharmaceuticals Third Quarter 2019 Earnings Conference Call. [Operator Instructions]. Today's conference will be recorded.

pleasure Investor the Relations, my Aerie's over now of Director Ami is to floor turn to It Bavishi. Please go ahead, Ami.

Good for today Chairman Financial Officer; Thank us. Chief Operation Tom Sydney. afternoon Rubino, you and thank you, Chief in investors.aeriepharma.com Rich for Casey Scientific John Mitro, With President me and is press Officer; Kopczynski, will and call on Chief it webcast are and Anido, indicated being live Officer; LaRocca, Vince Executive also replay be release. available Chief our our Officer; General website and as joining Counsel. Today's

Before available the I forward-looking MOST on will be our want summary during and I to top-line that X X to slides website call. summary and ensure review the later Phase Japan's presented access are you this that have Phase statements, slides

cost top-line associated our X Now data call, statements Japan. and full statements, future net observations this commercialization burn and our recent Rhopressa in performance, from of These United financial we statements, also guidance. include full cash measures. and X will our They success, including States, will U.S. as and well financial guidance clinical our the of for the On Phase and the timing including and include revenue guidance study forward-looking our XXXX net as in will regarding operating forecasts certain forward-looking year in non-GAAP and Rocklatan Phase year with statements clinical study regarding expectations make updated trials.

with our products our candidates, or expansion. from progress requesting agencies obtaining strategies respect of will international including discuss we Additionally, product to approvals regarding and capabilities maintaining, and regulatory

pre-clinical events. management potential and manufacturing capabilities, statements the of product future are findings, other on to financial statements as will activities our These and of address beliefs expectations of our Finally, and liquidity candidates based the we related research and our today.

obligation uncertainties described read Investors SEC. with as release the a Form in factors information, assume we events note differ well or and tomorrow. our the from revise today's on report forward-looking risk our filings update new Please or of as that carefully whether may risks otherwise. results actual as We quarterly our future expectations. the press XX-Q materially should no will Our in to included statements file result

during addition, adjusted discussing In measures. non-GAAP call we this will certain be or financial

non-GAAP For release, financial press comparable our reconciliation these measures, the a on posted additional which to relating disclosures most measures, including to website. please see is GAAP directly today's

call that, turn will Vince. With I the over to

Thanks about our obviously joining Thanks, bit some have not to clinical but We also long-term pretty bodes top-line in only potential. well a for revenue good for Ami, us everybody. guidance, today. exciting afternoon, that quite talk and today data in change

it there. let's So and the quarter update the with start take and from guidance on

the summer. net release, earnings $XX our XXXX to approach year on the saw we it lowering had seen you guidance As our from $XX million the to anchor of to of to guidance The in we're $XX revenue a million range in was million. trends previous the for range full million $XX previous

this the below factor last expectations season some churn volume the the recent holiday part days certainly which had based we through we to believe and call, on relates is our that However, and to previous of discussed et expectations sales, We the range. continuing. trends lower of in earnings lost at unfortunately cetera, least upcoming in

Rhopressa factor believe and have the progress a and churn second, experience made coverage we will in I with short-lived Rocklatan. growing I'll However, equilibrium the phenomenon until physician in a reach be about talk we coverage that the just with between

impressive seen very growth. intermittent choppiness not some some volumes, of with the analyzed strong growth we we very as weeks there's weekly have and quite of weeks Now

a week-to-week on Our growth previous guidance assumed basis. a pattern consistent more

at over While potential gains time short-term a considerably our at believe level, a volumes have growth and launch-oriented overall really I has And fluctuations, still phenomenon. long-term on grown trajectory the and will the our the of looking higher growth attention, remains continue our believe short-term inconsistent is this a lot focused intact. beyond I week-to-week franchise

the spoken on experience Rocklatan their Rhopressa certainly light for and the certainly the shortly, continued with I've be many results and may Casey today products for data on importance Rhopressa they with practice. physician will fit how that learn for experience uptake we'll you sharing bright those what and X care professional be how optimism future into Phase with of on are each shines experiencing eye The times and products. our review will a will cause a

the Further leading experience. the Rhopressa and top Rocklatan things of was They the a both took habits physician we to see launched product XX Rhopressa, our introduced statistics have and of months the X ago. with point at greatest look on I are impressive gain was other prescribers franchise. the Rhopressa. ago. one prescribing just glaucoma as X consider we Rocklatan experience, months pointing say experience was The That obviously their represent the only for you that And would a may that and Rocklatan, what first product, fact we prescribers indicator when just our pretty second

share is we X% franchise. upper X.X of franchise the is From or decile practices look points. potential a about is Obviously national positive. just of I in we share very over experiences around products prescribers of share as our a doctors. this have market the share great between perspective, glaucoma their within forward And have XX%. almost of Aerie somewhere to that been have X% significance, to our X what top that their believe remember currently The combined market glaucoma double data

to currently is help the a growth great market it future X% the share. franchise. So which again, points has in to branded just in it put And perspective, glaucoma, product available largest LUMIGAN, for to

history. pretty So of performance is I our think our at stage this impressive company's

and Latanoprost is main our has share. market that target a XX% course Of

walk we we the in long-term as prescribers share already there X fact mid-XX through clearly then XX be many new And Phase we for want some our range, franchise. And have that's our our potential for future reasons regarding to to bodes where well hopeful are So Rhopressa, you'll to certainly to that the go. data see endeavors.

of some The are with experience We has recent the for particularly Rocklatan seeing largely update. strength, signs and positive physician Rocklatan. Rhopressa both been

a of Our which to the week you achieved pharmacies report, for as sales out know we XX,XXX first number units of October. record

and continues you week, and the week, we've which our Certainly continued week. deck have of entered range this units grow. happened this XX,XXX somewhere latest as per saw XX,XXX last As seen between in corporate to growth pattern again

range I we're guidance, the our the reflecting the upcoming for for we I this remaining in updated last basis On per X sales ongoing now to months year. a This our And season. expectations pharmacies August achieving call is of units. were week. about August, said growth. holiday the pointed XX,XXX seeing that our out in was recent of units year of new record to level Remember talking and XX,XXX

again, been very the trajectory So positive. has

take at let's results. Now a look the quarter third

Rhopressa a quarter total franchise of revenues combined per bottle, quarter discussed The decline expect revenues before. revenues was totaled we in for lower we Medicare net for price modest and year-to-date net million, continue year-to-date. as have bringing our the $XX time, reasons Over $XX.X Our the third million. a net third revenue $XX.X for bottle per we which Rocklatan $XX the in in Part penetration do for has D,

One for positive quarter. Rhopressa for quarter was the this that surprise meaningfully utilization this in coupon decreased

plans, are claims our those revenue the through down of flowing to $XX, to range to that's As co-pay we're which you as Coupon that low those the per that our low co-pays already payers. can in where bottle component $XX bring for for less go to because reduces being know, the majority co-pays demand coupon of cards. the the to net is a lowest coupon utilization and enough, appears utilization down, is commercial $XX with we use seeing as be

Rhopressa XX,XXX on weekly On professionals writing second who XX,XXX XX% around of X,XXX. number or care Also our call, target care out about regular we we the our target is talked have of call, to audience now basis. about of XX,XXX grown our eye our just quarter We've either of prescriptions prescribers who netarsudil over professionals. under That number that prescribed eye are indicated audience. having last physicians X,XXX now Rocklatan, netarsudil a representing on over was

are I we X,XXX more writing than thousand those quarter week. mentioned a already Rocklatan physicians prescription. X,XXX, had of last about Rocklatan, a has doctors on number every consistently have of over which written doubled Focusing since That to

the country. represents From a reported a that earnings either Rhopressa call. the XX,XXX in the outlet XX,XXX about a up retail retail of U.S. across prescription, we quarter have That pharmacies in from or outlets filled retail XX% Rocklatan second perspective, the about

growth However, the we at in dispensing the and since have level, we of pharmacies been in the have that pharmacy inventories to at seen number our wholesalers have going with consistent year. from beginning this calendar level, seen the units retail retail, growth the relatively of that the

And growth all or the at any in retail any so growth the in we're seeing not dramatic inventories marketplace.

much coverage, of of previously, on now now very has a a I high D utilization lower commercial point formulary commercial across important mentioned access levels as seeing and Part Rhopressa the On we're And the result plans. side. majority Medicare coupon coverage as

prior step October up a have X, we major XX% formulary for Rocklatan starting coverage For commercial. the That's from quarter.

expect for several that coverage that that are next D to the XX%. the XX% And really Rocklatan at to subsidy addition it don't low percentage we we which Part coverage for in increase meaningfully important we Medicare don't have program. roughly months, of part that the government's currently of lives income have while is Medicare to note over is XX%,

receive to they of a the will approved, co-pay prescription generally below a $XX. XX% which have are higher prescription, that is of they when likelihood So authorization because those accept especially prior

experiences as the the the part component XX% that affordability have are subsidy patients when co-pays. with we up, the low-income by it that professional, [indiscernible] lives the you Over care expect have, now When that all increasing doctors' sum cycle XX% through the penetration we anecdotally positive of so patients continued XX% we Medicare the have eye affordable products experience in Rocklatan. offices, lives and lines large including improved affordable we're eligible time, you And to seeing other add patient. about Medicare that of the for which co-pays of with mostly on

we term growth, and top not $XXX beyond long-term the or levels being inflection, and in to that. million this perhaps long-term franchise potential growth Rhopressa in so on US for over expect the to peak the Rocklatan potential but a confident of continue a steep for billion are of We at sales continued the long

of about for the in that, Phase real-world potential which called Rhopressa the minutes, MOST. data that study shortly. site from am setting. new objective new efficacy and available to netarsudil in talk Rhopressa and excited all the X are our I in on is of with now ever our clinical few discuss and tolerability X independently than That a Rhopressa seeing we have we Phase more study demonstrates the This from brand a going will Now is qualitatively Japanese very Casey study This data for to franchise. confident and the are we obviously

I research Officer. Dr. public the Chief me. ago. date and David His call direct development Development Now Senior the I professional an announcement about Casey will week recently made briefly start is we Medical organization, so company's of or contract medical executive affairs. We organization to reporting groups, data, was Vice only ophthalmology the clinical Officer as X in well did well-known officer and a turn position recent Hollander over research large years at we organization a a preclinical directly Chief Research and and the want make as he of on R&D is Phase at which side. he appointment also that number November announced was as circles, David the before mention and very President to for XX. to the to but It's ORA, the Allergan a Not cover

on accomplishments, opportunities is extraordinary list technology trained his will cornea. on his and Officer which that remains Aerie's in he's brings leading he implant Aerie's background medical representing talents innovation platform, will Scientific expand and product is to we're and us Aerie's press recent delivery the the Casey of Chief and strategy, founders, and science ophthalmic Aerie to excited formed newly meetings. focus well remember, retain as scientific including a see sustained that can a him with of as very And least not a of from and pipeline, group, David one you at release, ophthalmologist global our focus have and acquisitions new board. You on observe

to Phase that, And the with you call data on I'll the as the earlier. website, are Casey indicated through available Casey? over which Ami X top-line walk to turn

going Thank results study. from summary the I'm on you, Vince. the start of Slide MOST X, to the

So Rhopressa at as weeks. in Phase an used it medications; whether multi-center as whether reduction of label additional multiple prostaglandin medications. it And XX the each monotherapy XX this it our to prior X.X therapy. the MOST was study of was Not duration. Rhopressa about getting respect The similarly different study in adjunct a was monotherapy was were whether often on of we found open And millimeters or most study, mercury use surprisingly, patients what effective physician at adjunctive with X an to added XXX it was discretion case, who to enrolled was added in we of was weeks this or was in used to patients. study

showed this consistent It really was used lowering. indifferent medications It was of IOP most monotherapy. Rhopressa on used monotherapy interestingly, is to Rhopressa very to as And in frequently. patients also us provides in as And when produced the monotherapy, number of So the prostaglandin levels that switched IOP from used patients, board. a switched lowering as who Rhopressa prostaglandin. monotherapy similar often were those it fairly

very was see. helpful that So to

Rhopressa of able conjunctival results adverse we've the And patient therapy. as the then that into were a survey was to the well for tolerated majority that about rated that we and was events those or The the blurred. incorporate were most survey. And found tolerated, whether showed this vast talked study time, it Rhopressa and monotherapy finally adjunctive we past, or in patients in hyperemia well first used better as the vision common

So details on going X, I'm the here. into to not go next slide, Slide

X there from design endpoint the week X efficacy from I'd out look at baseline XX. You deck change was and IOP study the online. visits week baseline and at the slide visits; XX. just then And But were can the point visit, at mean in primary week

shows first And was Rhopressa prostaglandin results on the was the the added that of use where you can X IOPs therapy. at table, if these in of they millimeters see mercury. of And top group So patients the monotherapy. to as baseline is XX.X the of the Slide group adjunctive you Rhopressa while look the were PGA

were lowering, of in what table similar brought mentioned who slide, week by lowering. so pressures X.X different just which of mercury. X, got about I XX.X Rhopressa needing patients the to So of were a XX% When a of brought reduction effective medications; PGA some patients monotherapy. these were X, That's millimeters IOP, were we the in additional millimeters down then millimeters IOP on bottom by the mercury. when down added on was is shows some added pressures efficacy X XX, very even this to them on previous those or And those X.X still of of reduction mercury

were And was next XX from to X, was Rhopressa frequently said, this fairly summarizes as monotherapy I the patients prostaglandin Slide seen in what when monotherapy. switched subjects different slide, here. On done

were these therapy while baseline, XX.X of XX, lower Rhopressa were was mercury on the by at prostaglandin millimeters X.X pressures patients mercury. millimeters monotherapy. And week while of So actually the on

brought XX.X. So were the down pressures to

efficacy without gaining well. were and as a physicians successfully the bit prostaglandin just of little efficacy able in a any for out Rhopressa to losing switch So fact

we've is events. On studies, the the in adverse of next a slide, treatment-related And Slide serious were events. there no adverse X, summary seen prior as

are detail were similar what adverse in except was frequency real-world but go not this table And XX% events than that Importantly, to going we've adverse due XX% point through the I'm the to actually to the here, what the studies. discontinuation hyperemia in discontinuations reported conjunctival just all particularly the that out past, in rate very events. was to was recorded the Phase study for X any our of recorded less in in range considerably

was events In in of rate the adjunctive discontinuation. group as therapy. in led only used monotherapy to That adverse X% where conjunctival X.X% discontinuation, rate Rhopressa leading hyperemia terms patients about was to of

Slide the question said tolerated used, the therapy adjunct well XX.X% drug better. asked regardless So X, slide. that on the number where mentioned drug or better. often, to in this was was it are of And of it they who or the on able that patients to study patients well how XX.X% was medication? eye group How we a used well of the tolerate rated overall, And them included survey you I most

Rhopressa So in from Rhopressa. is we've have that can Vince? monotherapy, used in the monotherapy what of since physicians adjunctively And it that effective use, of whether patients. and confirms a majority study therapy hearing it's adjunctive and summary in prospective or we then, launch real-world as real-world large and been well-tolerated highly it you the be as the know that now is

do Thanks, I we with important of Casey. this as Rhopressa and have I continuing course look for experience believe data continue And to with Rhopressa share. is to Great positive job. pretty forward and gain doctors new to Rocklatan

be will physicians publications, look cetera. et and with sharing We information this at

So able release few be data over next we'll months. to the this broadly pretty

Ireland topics, in facility readiness. progress of making is our excellent terms Attention

for there plant earlier. XXXX, to as in be production we ready expected Our discussed commercial early is

get That press Athlone, Ireland that September saw Approval submitted PAS, recent to Prior Aerie a in in to our is there. of Supplement, manufacturing to Rocklatan we product release first allow be the manufacture the You production will FDA facility. Aerie's that

half to obtain manufacture PAS that file in approval also plan to of also first same Rhopressa We facility. in the a FDA to next year

CHMP Use, the positive Application the Committee Agency final is September, reported for or recommending positive regarding approval Europe, Marketing approval CHMP, is this Medicinal European Rhokinsa. as remember decision Commission Products known Rhopressa, of quarter. for also which a on European was and in European Human for adopted sometime for Medicines opinion to the of that MAA the the the Authorization Now later opinion expected MAA in Rhokinsa

Once in Rocklatan with Europe, we approval early plan have that Rhokinsa next in Europe Roclanda to or for outcome positive we file year.

dependent pricing in approvals each our combination will top-line of positive cash results is of region also we X environment of year. likelihood at be overall in capabilities we enter MERCURY we'll we to GANFORT, the in largest and in X approach market. on MERCURY obtain products of year. as close Europe, and We to commercial regulatory things, a among in Rocklatan as read strategy, A comparison internally evaluated expect out on we're region. a or we'll being on other execute go-to-market do success one products middle the is to our ultimately decision how which which with If or available head-to-head country-by-country and calendar We'll next products perspective is the Europe. the for this and the on have consider that a looking flows analysis exactly determine is still out going Remember, how

major top-line positive data which Now for with recent reported. already the a we've Japan, Phase just milestone we achieved X

it and turn press yesterday, that again I to present of You a now over the release Casey? saw will highlights data. to Casey

study, evaluating at diurnal endpoint concentrations a IOP the of week Japanese that Once efficacy Vince. this you, Slide studied in were met in X This I'll superiority X the Japan to in placebo-controlled netarsudil we where was placebo subjects. we X deck, summary. on the of mean start X. XX-day overall All study concentrations of again, different primary masked Thank for

XX the baseline IOPs were XX As around subjects U.S., study expected, X millimeters quite to lowering X.XX% the by the than to tends IOP in low, in down the had diurnal range millimeters XX case the X pressure where be in in were And in concentration. impressive still the in mercury. lower in of all millimeter IOP. about concentrations effective intraocular Japan, mean lowering to But X, highly of week we

in compared all concentration the safety tolerability, is With Japanese events. the X optimal States, looking respect serious to profile the patients. X.XX% marketed to what determined in United is to provide safety, adverse which well-tolerated, at all no efficacy and X generally And with efficacy was were concentrations

in the we only saw was in low rate United States, subjects early. in this in very the out event. discontinued the adverse study was discontinuation most the XX of arm frequent conjunctival general, rates of As than X.XX% the study, this Japanese Discontinuation the were hyperemia lower And X U.S. trial in hyperemia in trial.

IOP design diagnosis angle and patients upper study I XX and of millimeters end, enrolled the study. the out hypertension. open glaucoma the range they glaucoma, as this mercury. open is the for all into entered of XX that mercury is be we as angle lower here At low less with had be to to X Slide who want patients could point millimeters be of On end the But than or either ocular had of

to they study mean pressures with or of efficacy the to patients than And diurnal higher, again, XX. in those less XX For was X. hypertension, a had diagnosis millimeters primary this ocular endpoint up have week at at IOP

very shows point, at X, can all large a comparing across X the X each significant And for and statistically each between concentration. time mean Slide the each baseline at group. see and X. week separation week time concentrations placebo were And point differences week the X you IOPs

summarizes at mean IOP X. all week achieved lowering X. XX.X highly IOP week IOP Looking statistically the in mercury significant diurnal at were millimeters versus X.XX% X. lowest of this week actually And at Slide again, placebo of the And dose primary endpoint, levels at mean X, the diurnal

each in and details in discontinuations X.XX% go X.XX% the of Slide arms And events arm. and study. table. subjects XXX is the X.XX% X in not adverse on due again, I'm events into adverse going a adverse discontinuation this out for to serious X only an this X There were brief On the safety to X and summary. There discontinued no event was

lower seen look what You're hyperemia again, rate XX% in have the than for U.S. we online. is X.XX% our of conjunctival at it But to welcome the studies.

population. X bodes meeting tension Japan the at baseline that efficacy the in unmet safety well really then again, clinical And all concentration for PMDA the second its IOPs this Japanese The optimal doses huge of particularly level design profile. glaucoma, normal start trial X.XX% half use believe X U.S. of but we next and in which year. is effective summarize, year low will Slide So were in We in just highly efficacy provided well-tolerated and in the expect a be to discuss the and with Vince? first the next also course half of of X need, X Phase in Phase other countries. to and trials

the Casey. data for Casey have as have Obviously glaucoma, got this Thanks, with market, only to suffer not but terrific or it Japanese lower is relates implications as do broader relative but patients us mentioned, who it also here it's those also to pressures.

pressures, so shows equally it potential and the that we're about well excited works And high again and there. at the drug low

meeting of in next determining which the with next As are second the as Japan, allowing we perhaps regarding very preparations, mentioned, we will in with potential then moving side any look further sometime the in And development PMDA, which X are now Phase commercialization as think the having half we active are we to partners steps hand, is next the year, Japanese Phase at or discussions X in trials a year. Casey in forward in us have certainly data the occur QX this Japan. positive of Phase start X things, and including equivalent for of FDA we the

in we trial readout forward now retinal enrolled, a well is talk very release schedule. we're fully just about And of sometime sustained to Now the ahead middle implant to that happy programs, look our steroid briefly of year. next our report AR-XXXX

Protein from inhibitor program. we will progressing the kinase kinase move has we with until well very entered providing as expect XXXX, the be the Rho this program, as although program Our forward AR-XXXXX, updates is don't nicely. and any C We data clinic

Our own earlier a of research AMD that few examples we dry and and initiatives the also we're neuro-enhancement, and explore pursuing our space, just building. psoriasis, the advancing, dry as as stage pipeline are in molecules eye

and well Rich cash point, September, over have and last it a cash I'll change million equivalents are that that our last from balance we On cover now in One $XXX nearly that sheet, is to and financials. we investments to turn as quarter on therefore note, very and big believe financed. of the

net the $XX.X increase over XXXX. XX.X% We in quarter of million second Vince. revenues in the quarter, Thanks, recorded third a

third net nearly for revenues volumes XXX,XXX franchise of the quarter. Our bottles reflect

Our XX.X%. for gross quarter margin the third was

our gross normalized were considering of FDA products. that XX.X% margin was approximately Our prior when costs expensed to approval inventory

impacted gross third The sales excess percentage of was our X.X% million unfavorably direct margin due for a anticipated approximately approximately cost by and than inventory. this primarily volumes. result quarter Our the is of was lower to $X

million. adjusted expenses million, preapproval quarter expenses third Our adjusted administrative was per million million, $XX.X compensation the adjusted million selling, $XX.X $XX.X the or $XX When per third share. for expenses manufacturing the or share. and $X.XX excluding development and general with loss loss and were Adjusted of quarter stock-based million expense, of net GAAP research $X.XX $XX.X $XX.X million adjusted total of operating of net commercial expenses was $X total of

filed information XX-Q our additional release third comparisons, regarding prior Form be and which please our For and earnings period tomorrow. quarter refer to today's results will

our $XXX.X to $XXX XXXX. million remains totaled guidance equivalents X year we Shares remaining in ended of had cash million. Net cash burn $XXX quarter at for million XXXX cash end sheet $XXX XX, XXXX totaled on full burn September investments September million estimated cash, for Net at and balance months XX, XX.X and the outstanding approximately million. as

terminated gross senior and to and of after of call notes in million earlier, As $XXX million coupon. The we with convertible issued fees. XXXX XXXX about million we of include $XXX due stated undrawn cap In proceeds equivalents investments With this transactions end. financing, quarter concurrent have giving and proceeds facility. sheet after cash, cash balance an previous XXX% $XXX we a our effect $XXX.X effective premium conversion at net credit September notes X.X% on million our

consistent sure are XX trying are you calculate rebates. our with doing you revenue, make DSO using so, and liabilities your is such calculation gross outstanding, you will that days offsets as Lastly, to associated for of yield days, In those net in revenue payment terms. of includes sales which wholesaler with not which

And for the questions. now to Sydney? the like to turn I operator over call would

Instructions]. [Operator

with comes Our Samimy from first Stifel. question Annabel

going I'm part one question. ask to five

formulary the D going I'm see majority in and Rhopressa? chances to you state D still well? did questions. coming for Rocklatan has be price coverage of to patients. patients. some that's for Part that out still expectation Medicare First, Rocklatan guess of to Part that's I think the like side XXXX wondering that implementation steady regular on coverage would you lower steady is terms Part the for occur that And math coverage the was XX state income what for does delays? apply improved I I of as a I D D know just But are if XXXX. with reach know Part about that going majority that to Do same expect

good So, luck.

Thanks.

think got it. I I

I So changed that that level any. saw the in delaying sometime We this year. we'd reach coverage that Medicare the year. of number can products not most thought the some terms in products of decisions, plans I don't as general, just think are our second back we important you of the the tell towards metric a end of of two there's Part some is but next our quarter stability that that projections D have between on

Part any So thinking sort into that hard exactly it to when towards trickling of summer going established looks equilibrium coverage. reach But and occur. of kind information changes those of the roughly as that D of we'll Medicare what early it month it's have of are year, to we're still of that QX maybe is between or -- of back like next predict that now end XX% kind

with to certainly when slowed Rocklatan. covering for see guys levels to Rhopressa that level of these the They to the high have I do we actually that very you coverage just tell start the need interest some got quickly. of to up though didn't it

on And we've prior program implemented of putting so authorization what pressure certainly awful is is active that a them. there very lot an

your with those get the work will and prior So to and But those incented the the get and actually to multiple-level plans, the reps next more work the things be back question. end covered. sort more enhance through But right our rebate authorization again, do the to of answer plans set is programs up products of us bottom and like, those going line QX year. of long-winded still it's the

for And so does mean that what price?

be out. will It balanced

And So D. Medicare it then dipping will bottom, it coming hit get and the will more we'll start up. back continue more Part as and we then

that the So at to greater I brought this coverage that think the way. lower and it saw we quarter-over-quarter, phenomena some of for other go as from then that you that price utilization coupon the and kept commercial where and start up look getting net we begin quarter we'll sliding greater seeing had

so see occur. balancing that you'll act And

end should So way back QX again, we'll -- said the see my continued as of some see remarks, towards through prepared of all the year. steady slight declines I during next

And our & Cacciatore Cowen Ken Co. next with question come from

think Part just of the is have the getting level why the understand Just running, any little it's you growth? was that down And need taking low than forecasting magic expected kind range trying start line. But looks before obviously late little end of in the what D to what's the would like as And trying year. entered then elongation and is It you see getting to Part a more your guidance a we obviously D I'm quarter-over-quarter of this we longer. Obviously understand different bit on you explanation. I up assumptions. bit to can I I guessing just apologize.

of little having be seeing thinking fairly XXXX, modest trying as just to looking before paste we HX walk should we we So inflection? to to bit how be and should a more HX start into at, wait we

the big they mentioned response come don't to But chunks we're movement program. going -- going have Medicare It's on some put that Rhopressa. the Rocklatan to on are D we had feel last see is just already that do not my seen think need the question the earlier Part with Rhopressa on simply because covered. to there they -- it we not as to putting plans the in continued Annabel's during So I

slow but But of think some so achieve we'll back roughly order coverage. next they're that. pointing XXs that are walking we both make to Medicare some level towards to Rhopressa progress range on the again, is XX% in of between you And some level and of know, Rocklatan. D we'll in reach for to, XX-XX% side end there, Part QX, that call that. coverage and continue the normalization high middle commercial year But on still to when the of That pointing it, do

I think on Rhopressa a Ken, lot the have of been driven, by it do has fact again, that formulary. we

there just plans So saying, the sitting fine. are

Rocklatan. a that show Just out there me for there's prove of lot and me interest that to

authorizations from churn don't where holidays, reporting down the impacted as while. earlier, up said the to the going that's et seeing see think where as wholesale of purchases we'll that's to And and the dramatically quarter-end still some as wholesaler to see shipments a to think cetera, as calendar Relative a I why we of year. that's you're the to So -- prior I've out earlier, this really retail. relative New We that both uptake and what occur that. Christmas the going and we're as that start mentioned closed be begins and be I do swinging quarter, cetera. Year's, result slower to take that's relates et is and But we Thanksgiving it to

why preparing we the and So did range. in what the just we're for that's that's change

of Company. And our next with & Serge line comes Belanger question from the Needham

factor we in kind fourth progression us question plans? another of between pricing. D commercial plays the what in recent had increase price I different just how Can pricing you Part see should then and And on components walk through in Medicare the XXXX? quarter and pricing the

Hi, Rich. Serge. It's

X%. recently took most price about the we So was increase

revenues time. making way net a third about to that of see over its You'll

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bring the those than down chunks will commercial. are revenue D net So Part two the lower Medicare bigger that

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Rajavelu next with Oppenheimer. comes And question our the of from Esther line

on comments show to fixed these them for higher versus compliance the following the formulary, off need What plans the do administration Rhopressa? you are why on stats not Guys, Rocklatan single around dose some do considering Rocklatan with versus Rhopressa to earlier of on the of that? potential with impact

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Louise the next our comes Cantor with question line Chen Fitzgerald. from of And

second, space. eagerness to into the focusing current your pipeline, how just of This wondering, in all just about then know I'm is the the your you're your Jennifer what adding And evolving just on franchise, these eye has so talking for you've today? the given impacted I just Louise. dry And pipeline, about interest seen you've timing products? at is on XXXX, pipeline current the Maybe talked about level dynamics productive peak shares the given your is thinking in target how current that to for maybe far

Sure.

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what And year- and view. so just is it a point a lost could half, a simply be launch year which we've from of

get know, salesforce pull-through coverage, the able to the place get got and it be be we've get gear now able signed. in and you to As slower. has as been into But soon that hopefully contracts high once uptake as those we we'll trained to kick we

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all. that So hasn't at changed

the comes Yang from Mizuho Difei of with question Securities. following line our And

seasonably in to just confirm higher. demand, I secondarily, materially wanted demand perspective, the a Rocklatan just hyperemia is demand or not all PGA do regards with ophthalmology seasonably regards different wholesaler is discontinuation that. chronical out other Then there, weak? you physician patient despite for data high QX seasonality drugs on rate agents like drugs either just first So with rate think sounded may to Rhopressa, in based be it from on ophthalmology or couple, from clinical general it of general, to dynamics; use the any in that no

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associated And the that. lot of with have awful They an holes. so into expenditures folks donut fall

net. money to hole so as it we the of close and we gap lot pay out it to Obviously And some awful help gross impact impact donut an that now does year. may that our close

patients. that so those helps And

maybe that kinds fact somewhat yet attenuate So do of the kick patients some year the only the see to and reached these beginning into haven't of their like. going at the programs high by gear. We minimums as insurance driven that's seasonality,

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me And there. so the to discontinuation are rate the prostaglandins turn of on let it product Casey and over out that our changes on versus also rates hyperemia the

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in, of hyperemia news Casey that commonly saw good and were IOP would be But patients reported trial. pretty that So in MOST of on a our was they reductions amount type we added the fair that Rhopressa then using point. X saw medications and the at

So reductions. they were getting surprisingly good IOP

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seeing hyperemia. they're less far So

happy. they're So quite

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Joe comes Catanzaro with from question Piper Our Jaffray. next

weighted towards any usage about top into is you anything their their their I'll high. whether their Rocklatan their usage prescribers and or Rocklatan that one insight and prescribing Rhopressa stick say whether so location try whether can it's could and more wanted on Rhopressa why give historical there's anything practice, then of habits, X you here. up I to just the follow question and to about and geographic

Vince here.

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the I And one in so New what's is we when look ones, Downtown at other have that York. interesting

the like. and Ohio in out one have We

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JMP with Donald And next Securities. comes our from Ellis question

and for will impact have going question question. XXXX? to you late And hole donut quarter? that it for issue. I a ASP Is Rich to the with taking it's yes, the from in away respect if how quarter quick Thank

Yes. happen hole going Not with really next to donut clear year. what's

for a next us. just I the assuming status For changes, we're to quo But wouldn't our purposes, extent windfall necessarily into that's year. that think

generally more As you gift. -- becomes over expensive. It time, these a don't laws doesn't changes get pharma often

So stay I just think to we'll have tuned.

to So It's deal? of in it's XXXX? not not a set January done change

That's correct.

like Thank you. to I questions further time. now showing further I'm any remarks. conference Anido not to for And this back at turn any Vince would the

Thanks.

for First just I joining information of wanted had that an we developments. and myriad a the our and exciting we of the for terms don't ranges, that always all, clinical that everybody et make globalization cetera; coverage pipeline with like time company the It's we the we and time to our of the we've sure of call. data on do. changing side thank promised commercialization want certainly particularly everything associated as to latest in we exciting And gain take to you have. level This with advantage at of transparency while momentum Aerie is new new continue opportunities guidance for hand,

everybody for today good and to evening. joining us So again, have a thank want I

concludes and Everyone this you for disconnect. Thank you good have participating gentlemen, a and may now Ladies today's conference call. day.