Aerie Pharmaceuticals (AERI) 9 Aug 202020 Q2 Earnings call transcript

Good afternoon, ladies and gentlemen. Thank you for standing by, and welcome to the Aerie Pharmaceuticals Second Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. Today's conference call 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 today Aerie's Rubino, Aerie's Thank us. President and Officer; Sidney. afternoon Financial Officer; you Aerie's thank you, Rich Operating for Tom With Mitro, us and Officer; are Chairman Anido, Chief Chief website, Vince Chief Executive will also and joining Officer; General Counsel. Hollander, available Aerie's being live as Aerie's our LaRocca, webcast Chief indicated it and press Research John investors.aeriepharma.com, on for replay release. our and be call is and Development in Today's David

expenses Now, They bottle. of and forward-looking include for and the statements, the and clinical our trials. with observations our COVID-XX statements measures. Rocklatan and also of operating regarding regarding of financial observations certain our success, will forecasts United expectations include associated call, statements, financial will On observations in pandemic and and this net Rhopressa forward-looking and statements the ongoing including our and per regarding make commercialization impacts States. we performance, cost will future non-GAAP These revenue timing plans operating

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

address today. of statements based as on are will capabilities, our and related These events. of financial activities management we our Finally, and statements the manufacturing future liquidity and to other expectations beliefs

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

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

please GAAP that, website. most release, see the to Relations the For our measures, turn financial including reconciliation posted will a Vince. to on comparable additional disclosures over directly With which relating is I to measures, the Investor today's of call these non-GAAP section press

were showing for staying that's quarter I Thanks, that afternoon, Rocklatan. certainly up first And say in are happy first fact, our this Ami, second and in us environment. excellent through units. safe families combination hope momentum and at today, you XXX,XXX quarter, that quarter. obviously I in and quarter you joining back to your that and at volumes Rhopressa If everybody, we held and call, take earnings time, to our good above the And slightly of a I'm the numbers thanks

we have revenues coverage offices have reduced as D, on year-to-date certainly offices seeing, survey the to year, market XX% this about have average, patient completed, U.S. since Part June prior COVID. prior ago, business about a significant quarter, the increase end particularly prior our payer in that first for with volumes XX% here our Medicare Our and both of in over coverage the a helped the up of solid products are weeks now are hours. of fact, three offices the about At running again, the just on Based on as of XX% with eye professionals' care usual, in recently of loads, are XX% point, the about are

to of as as patients more news eye close, finding which well do ways we see So and and more their care importantly, patients taking while us cautions. This will up are predict a doctors, for while of course. for we and professionals can't open is where see for stage good trend

a win year, in opportunity, gives gains the along the Part earlier that $XX D the gains price. drove supplies. largest population, large Very $XX. in lift you've earlier us expect May. payer Medicare decline at recent expectations as including lives, that with of net significant XX-day is that year, Medicare the Part access coverage during just segment not in to Our you for for prescriptions importantly, that occurred did are quarter to D second of that the D Part continue big revenue may Medicare gains set remember, of continued the we the was per along in of for so with the glaucoma number having coverage, bottle penetration When The many the seen, coverage now we shy

While next revenues quarters, it's expectations bottle, our across per difficult the of specific that coverage few are, over now a majority net to the we board. predict have

the trial quarter XXXX dry going Part associated candidate any to FDA our and eye Medicare IIb through per the Mitro touch briefly time. in commercial is Tom bottle more gained, do per we I'd like certainly is that as base of opportunities further penetration over XXXX we've D part continue for stable increase as continued Changing in and and therefore, We expansions. this coverage of have We June including impact of for we on late the to to our short Avizorex. global be revenue Part In we initiatives And initiate our product in year. to net our met Our acquisition to obtained turn other forward. it of the D an net mix. I of expected potential fourth Phase over term, the there Medicare R&D gears for some in have, bottle increase with insights, that offset in before revenue

about potentially the of different this you receptor planning candidate a XX-day may made trial are product for XXXXX pivotal out of which turn two trip is This one we AR remember, remember, the that test with highly We trials IIb could symptoms. powered I to signs is to eye. concentration we're a patients, calling of cold that as the be promise agonist, need. it sensing the and in great shows and product both two XXX candidate Phase in

just you the and when as soon you you a hits well, that's eyes windy hometown off, we're activating. tear it's wind you receptor on cold and out in your go as so the your like And day

to we of and COMET course, production, the upcoming sign. be X, trial, tear symptom, endpoints which, the primary For which expect which a is is discomfort, calling we're ocular this

know, you requires FDA the endpoints. both as primary the As

We with States, sufferers in could the see XX eye the dry are million rapid United expecting that in we program. enrollment

We line are the targeting quarter top third XXXX. readout for a of

back our a meeting For the Japan, last call, April. reversion in virtual in of PMDA, mentioned as we had we a with FDA earnings the

for partner in franchise believe achieve is do in this will need expect on a ever XX-day and clarity commercialize our our glaucoma expect phased III three products current much safety excellent one year. Phase There's there. have are this commence have glaucoma interest Japan and there the I for fourth But levels importantly, forward more path on of which first in at in to do phase run Japan of to clinical be I our path so to a We the only deal promising franchise best to for trial Japan, our two be to Phase the many to if market we quarter will III trial. trials, that our believe and that and know inexpensive in certainly us forward opportunity we the relatively and certainly trials interested partnership say reseal our you Japan. could of point. only based I of trials XX-month and that a this We goal

Now on dexamethasone AR a the this six technology, for you of occlusion release, sustained top for vein in in some this use insert, efficacy of validates biodegradable implant. retinal with saw very our line polymer. print called flexible study press indicated further manufacturing potential the exciting disease release July We Phase sustained our along technology-based the believe news of our months that XX II dexamethasone XXXX data

billion. we further using programs, this diseases the other But the Europe which own our is including For and neuro combined focused about are market on it now, evolve could for of enhancement. for U.S. technology to off eye, in of retina $XX

because our have we in it us we David XXXX who's we limited be with provide on of AR ophthalmology at going are was an the While you R&D, conference. details regarding what Dr. can presented upcoming Head data to do today, Hollander

which of in for of kinase We are do the for our DME. second we readout And remember, still a progress kinase product study for AR half treatment line XXXX. human and inhibitor XXXXX, clinical first the AMD protein that's top making the in wet expect with Rho that

retina As there to the expect have time by other have how programs programs. some further further adequate our have our a our all product do our review dry studies, plan commercial conduct been for we XXXX of until from the XXXX, as for decide further data with proceed and chance expect after example, on with for to the as to end clinical well do data chances eye success. we program any clinical to to We candidates of not ultimately best

three the are data is with data remember, product come Roclanda Europe, Now certainly, will in we to Phase in tell product you be for mercury come along for to And out commercialization that well. compared Europe. thinking is, partners our data. there. highest may the as III will strategy line a And how you do Europe. interesting commercialization Remember which Europe, combination to the see that watching priced can outcome our I expect as in and Rocklatan our guide that timolol sometime Rockland help the performs data quarter. will It out that will this in the it's top of Ganfort, prostaglandin potential certainly

hear by authorities, front, this do On we the regulatory hope later approved either is the early Roclanda European year XXXX. or that to

with the in out recently, know, a regarding the you are administration As pharmaceutical States. United number guidelines intense came pricing of certainly

you in of prevalent using dramatically as United Europe. it in is States. but perhaps that idea, moves at as commercializing any if basket regarding the decision-making Europe that a or here prices get ability Certainly, pricing impact forward, process you all, those, of way our One is going prescription our in our the products concept setting products in to if to certainly Europe, is our legs know,

point is issues now our facility in plant been only any We've certainly our that but operating COVID-related outside and had supply something the our precautions from commercialization think we a we efforts close keep eye about no So the going relevant data, Athlone has timing. be it's as the My the Europe place. to regarding on with of suppliers. out last not unveil or COVID

recently facility operational. Athlone Our became

So franchise. it's plant, our to And over Mitro now have U.S. for supplies including initial capacity. is to volumes more we Japan. in of to trials we update clinical expected, it on our our commercial production Tom idle Tom? transfer expect like the do to I'd cover turn to manufacturing some do

to well unusual a sense despite you like give stats I'd Vince. how circumstances with you, thank the start surrounding of COVID-XX. to been very interesting Well, some we've

our franchise of XXXX quarter, the the for while prescriptions Looking first down actually total IQVIA in second overall at higher than were data; U.S. our the X%. were X% quarter volumes glaucoma

Of we units. for due of of Due terms to nicely, of March franchise Aerie June, volumes April prescriptions. units; the a course, suffered XX% was total our decline XXXX new visits, and in in including that resulting strong the than and recovery XX% course, of in history the scripts May experienced fact, more shutdown the followed, for and products. had prescription the But slower we offices points of of us, share a to market very patient prescriptions prescription in franchise highest March month in and by gains pandemic. of to

decline first for XX% quarter, franchise were the the to our glaucoma in second in market. quarter a down prescriptions New which equaled the compared

However, rebound to for reopen. prescriptions as we in new began June offices a franchise nice our saw in

opened franchise to The market programs and new for XX%. some us at we to particularly that care prescriptions have grew is excellent communicate glaucoma by as many fact pull-through over to XX% implements. exciting May, for Our prescriptions the new have wins grew be new offices managed while

pandemic the level work. the access managed their May, return ultimately we of While certainly patient flow care offices in to and believe, on wins the in occurred our have a normalcy enhanced will depressed these mostly impact, impact practitioners of once

which coverage, coverage substantial way That's believe Medicare commercial and commercial Now we practitioners now speaking the Rhopressa eye minimize subsidy past. XX% has more to coverage access. in coverage and has will to care coverage the expressed in both I Part care in lives. health managed X% by XX% low-income Rhopressa the care, XX% D, this in excellent Med open lives. D., plus another in subsidy prescribing of XX% have care low-income Rocklatan. long up Rocklatan managed many plus in of practices a goes professionals' issues and XX% in

There in doctors our have Now a now than terms are about the of gained and consistently at written of XX,XXX on monthly beginning eye professionals higher we both this reach the XXX point, year. basis, care awareness. have prescriptions running X,XXX over for products doctors

in prescribers year an to COVID. increasing monthly at prescribers drive X,XXX well from our resulted prescribers to about to XX% this beginning despite weekly strategy of X,XXX, Our over of the weekly increase

Now averages prescriptions prescriber month per overall, the our nine per glaucoma decile prescribers of seven and highest physicians, averaged and average XX month. prescriptions XX medications,

Our samples sales be to a routinely. and to getting in-person of productive we're force offices combination and settings, continues in the doctors' virtual

the Our team now is next on of a XX,XXX to top sales we ER calling Also team highest the X,XXX we prescribers products. call just a next May, prescribers. force highest added that, highest On July, sales of telemarketing to call in glaucoma prescribers. in X,XXX contract added the

access terribly with but initiatives many these they is to as of expensive, practitioners efficient we think possible. none as gain are Now ways

turn momentum. I to the over before and regaining summary, in we're call our Rich, So

are imaginations move Our levels, offices glaucoma for growth. call believe excellent doctors' managed With our coverage capturing our outreach many Rich? patients, weekly initiatives prescribers, practitioners. more clearly and to strategy are future of poised care products I care the we do seeing our eye to

Thanks, Tom.

As quarter totaled second XXXX the glaucoma franchise revenues in million. Vince discussed, our $XX

XXXX, margin three Our months gross ended was the nearly XX%. June XX, normalized for

obsolescence Note However, commercial overhead Prior plant the reserve we commercial on of with inventory XXXX. which that Rocklatan would charged end expenses within the Athlone took associated the were top of that, the of expenses U.S., quarter distribution expenses. the start-up in million $X pre-commercial second XXXX, these took manufacturing been also about production. $XXX,XXX operating the in absorbed a manufacturing in plant, Athlone X at pre-commercial of of approval expenses January have essentially and to to place

geography of in the increase a costs that, So of it course, the to mentioned plans will there with decline. income earlier, capacity Vince statement. And And are of classified the throughput more Athlone story as where the is idle plant. are of our

$XX.X $X.XX excluding per Our per of $X.XX total or second or stock-based million loss quarter When $XX XXXX GAAP our expense, net was compensation million loss $XX.X share. net was adjusted million share. the

of commercial second goods with administrative $X.X were quarter $X.X operating adjusted the selling, expenses and For expenses and adjusted research total expenses of of expenses $XX.X adjusted $XX.X general and adjusted of was million and cost million, $XX.X pre-approval sold manufacturing XXXX, million. million, development million of adjusted

activities relatively cash, million, the was our had low of receivable cash used The million quarter, $XXX.X spending net have June investments of we cash meetings. second in the in quarter. used the For many net operating and end and of as activities in in for reflecting equivalents $XX.X operating a cash experienced $XX.X we and reduced and accounts was the travel quarters, million collections lowest

$XX.X very XXXX for cash second the referenced For the XXXX. comparison the net for million this in in the to favorably the $XX.X used quarter second quarter $XX.X purposes, I million just year compares operations of quarter of million of first in and

quarter, quarter with and million in cash. me second the of Let million a ended We we $XXX about $XX point. cash used in emphasize this

have math, substantial some cash can you simple see, by a we As doing runway.

at quarter end million. outstanding totaled shares Finally, XX.X

our For which for Form regarding to prior additional comparisons, period like turn will I operator And now questions. call second filed and today's refer to tomorrow. earnings and results information our would be release to XX-Q, the over Sidney? the quarter

the And comes from Samimy Stifel. our first with Instructions] [Operator line of question Annabel

Your is open. line

you're it to pricing to D just Good I question. in for that thanks be for have it got was is but wanted accept guess, my the hear And understood year, would would Med attractive And in what for you plans, pull you agreements some you that to net And Hi the Earlier of about bit price? going it factor Are offset going improve guess, talk talk it the a was have the strategies Is I runway contraction little at there on? was some or I than attractive other than have the comfort this taking And additional more to back in forward? are terms. of brought sampling price I to a we guess wouldn't the the needed taking in that any one right second that sufficiently there question there you that that look to? And we level to price? net strictly is guys, quarter. volumes you. should, the it expected clearly, is can fact minute. I distribution a have to great. suggest

what that were was primary prior authorizations thing the for fact that is the Annabel, driver for it's hear written us, covered order The field, your formularies. certainly on come drove changed their a and structure who work the Tom to out what put want to to in plan to have whole their his this for be it plan great perspective getting to patients voice. done team us the and to in on this by to talk them needed

got And formulary physician balance And so rebates out. point that great between the the a to we we where was the had weighted and provide. there we found that and it the to we

As plan neighborhood the about D XX% to in we the of a mentioned Medicare XX% market. that it's somewhere represents before, of Part

So chunks there I deal. this throughout are, certainly plan obviously, the There country, clearly mean, the of is but geography a king. it's big are where impacts big

that XX% of a see what XX%, inflection pretty of to way market. If to we or a so good And this see see all days come I soon to so them sign was, pull-through in expected seen, we plan, We'd we COVID, would size about normally the month Rhopressa, and and signed D quickly whenever we think is that later. as haven't point as back as we back, patients you run-up the just Part as the take big many didn't I as new the have I say, so a related of up we we seen mentioned plan. it back the Medicare coming

in we a but pull-through had I've expand the to looking month, see the team, chance as we are seeing plan. are to although Here, the that commercial visit now, it first it in didn't Tom and with

the on a the and balancing products, we comfortable physician act that for ones they're feet that and pretty support was the for that was the it huge we given wrote It of ground So felt plan a and have the felt that the us. really our and prospects plan, have authorization. prior because we the

So plan news, and say, now to the work. them we "Hey, back great go

to You deal. anymore." PAs big It's don't those a write have

So of that's it. On it's incented on that, obviously, many the do prices. again, and we nonpreferred us to as we that opportunities, we'll seeing same to could those dynamics And or pricing. look we the side revenues going-forward making balance that of off and we're up to And that be why think we see it's whole the we're in all that coming stabilization do in any We plans. thought. new we paying status some do the basis, that not we at rebates sign before impacting negatively have some a not preferred commercial it's of to since opportunities and raise as changes have of as concept

kinds as keep we'll we those see opportunities. there of taking So out risk

that works. we hope So that, strategy

a can separate question have Okay. a if And on I topic. follow-up

- five I months. it's about forgot On just I'm I many program drivers the - But of number the the dry out sorry, already. think

[Indiscernible].

development and they statistical signs to so conduct III, statistical others, signs, because, many in had Phase could have the Okay. significance look symptoms cases, I for for guess, they in programs, in to symptoms. signs but I some see on separate had trials want significant right. especially All to

you to both? comfort type you expect problem you same can do your see gives the of mechanism? what hit So that with And

that back have. to it of to have mechanism of the you So, take kind we kind

hitting cold So again, IMB, receptor the the the cold being we mechanism and the agonist, the that. activate

this is going eye, sensation a cooling feel the like On to the in eye.

always sufferers' so excited symptoms. complaint And the remember, what dry that's we're symptoms. is So about improving primary eye

data think I'm a Dr. that bit the you through going to good we're walk a of why that a secondary made sense doing sign makes take that And well sign it given couple the you have calls But that I'll we on the we as where truck little to more is why talked of we mechanism has like have agonist backing about physiological we think just with we them, do. Chambers the and back For this up a David requires TRPMX really chance the endpoints. one in clinic.

keep that we'll mind even at really well just to in So, get close be look really everything drug we're symptoms, and able to this able else to get do. a if as of because sign

David? So

our time. agonist for Yes, study Phase as hit in actually dry good to which symptom very symptom. a very that first that eye. the month, a hitting receptor, about a We're it looked ability about I is thank we're Number In you. one, a its optimistic cold TRPMX excited terms always Avizorex of very within thermal conducted, magic IIa

If products symptoms. other other in challenge a increases production. the the basic go the of for really there And look the to hitting out actually really lot at basal to action of a production. products you been then, you with the it of is out of products We TRPMX, mechanism lot stimulate tear designed also there, that indicated back has just if know tear

And hit to we're many, tear will the we sign. Vince us we're the well and actually both in period, and actual we've nice optimistic and as production XXX look And mentioned, as going the MOA mechanism study, as action, We've a this do provides at sufficiently that a have be sign. study to everything. first look endpoints. the ability a very with and over within But symptom next month secondary should we Xa many in give increases to powered that patients, hit three-month able close it just symptoms. So of that symptom within showed both its some small that taken

and the And Company. our from Ken line Cacciatore from question Cowen comes Please go of next ahead.

work here. and Congrats good on the all progress the

experience month. the that tolerability. they're their highest assume wondering, and efficacy that patients prescriptions think per I as you Just saying XX with And terms you same of prescribers, having were about your in would it's about

there's So the can clinicians? we region lower-tier they're Is they pipeline up about level the year? have near-market of do How the about think bit, AbbVie, are have as they're managed is just sometimes to and And you as just Is on-market round starts about, XXXX talk general, you we about can better to more interest around prescribers? care to that of if up of we will the any talk Or assets right? higher it treating i.e., of in if business in, out. Allergan, it going we it these specialized floating why normalize any more be there they're as operating coverage? wondering products. drive next utilization But of ticks the when to think as go Is spending, you it or current we experiencing? you tick Rich, kind And look lastly, P&L starting that a appear might what you? the the this grab obviously, about can it then forward think spending Is P&L? development we that wondering, to obviously up, but the as big the maybe once just completion leverage into as then into just about

We're three to your Okay. to to of try questions. going get all

our bit to got working because Head the are Rich assets turn he's that and also a So I'm Business about Rich have off I'm ophthalmology with the for going both it prescribers, remember, little outlook, Head then Development etc. of to the regarding talk high within And over of regarding going him. expense Strategy our and Tom available start to

good So picture he's out got pretty of what's there. a

So Tom?

Ken. Sure,

high Well first our up we how all and door glaucoma numbers. coming there, So the prescribers things high into have off, and patients. the just as we the had answered question get lower those prescribers get numbers people the your than do prescribers the those more to reason they about

So on just to product, the to for a want just that when just back don't volume itself. for patients they positive a given like it's it. in week. have their therefore, velocity a in reinforcement get products, frequency the they up. them Lower trial have picks offices to when trial number our patients It of And they common eats see very

while lower the takes longer experiences they and frequency quicker reasons it positive or the before of them for more one prescribers more a to one to see get to adopt way, have we get and it So they the adopt of those to of product. write just lower the By really through ways it of the prescribing their and practice is by please a about will speaker physicians I've had products phone sorts those and selling meetings; you using that of talk one-on-one to calls these of if and our me because just we'll say, And to do with with anybody connect do in things. wants success the lot them, that have reference them me. on that we'll number

quicker patients from Therefore, So quickly positive reinforcement very much they volume of that's and a adopt really there's numbers. they no it. higher higher other science there other much, have than just just get that to

winning month, of with takes XX-XX think too. and in as we'll prescription a ours did, up hands rest there their well, product getting per to So like the the I off get them

a burn the gross commercial with along perspective, components, are as much group, various about last from largely or course, expense is remain your questions, SG&A if think now. you support intact. regarding Ken, which of an the And primarily functions, two will they the It's, pretty

So consistently fairly next into year. that should continue

takes. terribly puts year and development won't research different be It there are expenses, Regarding either. next and

this next completion year, XXXX as have won't this spent be spending we on money we the Vince year, more Mercury three, and what course, Of for beyond any year, you'll mentioned. example, of

I that So tell and at R&D puts that innovative interested may an we and takes, have you got you you think to With it when not regard eye of to the the I program. to lack term, next going about for for assets product single looking R&D from going out And certainly dry currently to the add year-to-year. we've every we all in. large But a the more it's there, BD up availability, of I'm engagement be professional can Jack what consistent in year, fairly perspective, products rules with have, our be by specific mostly about asset going on spending talk But be all markets. see that Cracker ophthalmology us that pipeline. been can know group is

So are we we assets be and companies large engage. to divest, And may what decide of as always ready the those to that's aware how products. to certainly continue evaluate

much. so Thanks

Thank you.

question Our Acarovac comes from next Citi. Ygal from

open. is Your line

is This for Ygal. Carly on [ph]

on just would about support Phase you've to trials any First, Rocklatan? IV leverage proposition to the the further running Rhopressa get been thoughts that plans additional consider would and trial. you out the of how data MOST your wanted We value thinking able coming of potential for

they addition trial welcome most perspective, And was doing that with what from chemical out to view finally their that we're Rocklatan and the the field. for a eventually using in practices, certainly, doctor Carly, and/or Rocklatan. using they to Rhopressa start be a users been in see There Rhopressa entity. other Rhopressa and specifically what are data certainly consistent many then once start new have because a it's they reported

to that that from And plenty the a doctors been Japanese Rho product to are There's role conditions treat there. specifically cornea, that data inhibitors a of like of dystrophy. there for reported kinase out have have so do do the a see certainly, Dr. Kinoshita, been reporting using it we physician, conditions fuse play

there. an so, you while as some see it, promote And cornea we physicians that we interest do imagine, have don't expressed can

study an of So for that going us that of and further forward. interest area is area certainly an

Okay, And then just great. had follow-up. we a That's helpful.

hearing plan. pure Rhopressa ophthalmologists some very channel to where cases by still but been They're seeing to and facing challenges covered offs our we're prescribers you've existing want multiple from options, facing in are we're that as ability these Rhopressa in of and order reimburse, ultimately medications which some Rocklatan indicated checks all payers the their some prior the requiring are a generic as Rocklatan of they indications step because first pushback are also edits to So and even is prescribe to. though slowing

in able a to of trying to Aerie So context. streamline kind reimbursement how of assist glaucoma process sense to we wanted be just get the in that practices would

we noticed interesting there's spoken or that of one couple that and give and is access not been some So of able I'm some the track it. another on of is in doctors we're the that one the talked have products going of sort gone we've advantage a conference things at And issues to fully are physicians been have have And data Tom that details. obviously, of perhaps taken these have finding more behind reimbursement. all you fact have to to that and about scenes But covered. the what

share. And get finding the so gap we oh, that. realize increase writing is is yes, into it. covered about And habit we're that, doctors start product managed between an talk care that I could when And when they the a our in of just gotten what market we and there haven't because

about you to talk we're that get the Tom have broadly I'll bit to to little try doing a message so more And some that things of broadcasted.

Yes.

physicians of "Oh, hear write Firstly, a say about hear and we it couple less less is we dates available become We do lot we but about we and because I've they do talk like, like, One tried things a of them a before. do things when it God, hear things. to now physicians can when certainly and lot. to

really right? You to them got just we've commonly, Whether don't one. before, we just now, coverage. you when show So, have to did which is was of understand. That's And asking our we months much months before. with any it frequency up number completely them sort bring it what we're date, coverage try very writing what and

of make plan of have I to a just but we that What a right, be plans, Cross called you be. Blue Cross two Blue I may We plan generic you care, patients, whatever a may XX% a The if that small for may Shield. don't shows other setting. patient want chose, and covered on plan. in may they Blue covered means we is plan their fictitious is that take patient the a at Shield, many of covered that a up be plan, and the not look Blue be low-cost generic sliver

write out do Blue for And they as of Cross they these plant. addressing part when do we the in gosh, barriers back. staff that They're very patient usually that more don't coverage any work removes right. point we'll do are up over. Blue essence, out we the the a why to that, they confusion. we generic can't good So office And with takes the staff saying, more, the staff patient? clears But office commonly, that, over, and you fact-finding doctor it comes individual with The with to find Obviously, that. Shield the takes that calls by, then have things but say, that you he back that little doctor, office were,

color. taking Okay, questions. the for appreciate great. Thanks Really all the

you. Thank

next comes Chen Louise Cantor Our question with Fitzgerald. from

is open. line Your

for Jennifer two the on quarter. on Louise. is Hi, Congrats I have questions. this again Kim

since how guess, states? this range you crossovers margins highest you talked any just is, about increases we quarter are you can you expect second so impacts? I I'm on about and Do low or are cases I to the in should And maybe The And in you second of regions prescribers? to manage question through they waves costs, first your how have were idle the and what the certain My second those margins that in to for regarding first half? one return do plans impacted color wondering go quarter of it far any you impact think gross think from, do second we in seeing think But should capacity where XXs COVID have level those or we the is, what about saw that? sort by before.

Okay.

COVID about to the more going a have take So stab but Rich margins, thing. I'll talk at let I'm me bit little a the just

team I'm us, do The is take We and case and had and we're or things tab the states. states, doing the rep cross Tom to and then in look this actually day the and what's we week, personally and how because news at reports field. out on track, every get great our surprisingly, like XX% a sort cases with for see knock able a see And that about take right to So to in look wood to it's and sales business, actually commercial we that. I XX have almost around business relatively not concentrated every of forward moving XX COVID there. XX% I of to our just

are has then And That's states so elective from elective or probably is the some they're doctor's that office of you is lot open. big there or revenues of it they office not surgeries. surgeries. to A notice it's Clearly, beginning what's they now not shut. ophthalmologist's still coming hold. is are and thing open percent opening today XX-plus at But take the driving where a those and shutting

so And major that's the driver.

not while be we're surgery places not like does crosshairs happen anybody's So are seeing than some restrictive to there more now. right they clearly the that are others, in

We And us And to and to that point. are XX% approach offices base patients increasing so more the have. just patient do at from number seen increase this more we and at haven't of see coming the the that continue we hurt continue visits that normal doctors' or through of operating system. currently that

open. of we offices to have so doctors' that the X% example, I for X% or see but And do think yet it's

country, them, And them it's again. around just makes for never may so it some of you the some businesses wonder, of like open

impact. that see do we but so And

from the closing net-net the seen yet. much elective we because haven't impact an of opening and haven't surgeries So impacted been is

a gross expectations. Rich margin more talk to you have I'll the So little about bit

Vince. Thanks,

for it's next have we idle of each But plans million capacity the for so assume this in through So to safe increase essentially, as rest the couple the throughput remarks, Vince plant. mentioned that to we'll year, or quarters. $X his of do of have that prepared of

as if actually for in cost supply it thing we expect clinical a sales cost go and manufacturing of into the the would plant the to development. for further is, the of XXXX, road look puts down moves idle research that So down. interesting it and out about capacity The into I we're example, trial,

So to that, that see but I about will future. the activity start type you in to of you want prepare thinking

much. so Thanks

you. Thank

And our of with Bank America. next question comes from Jason Gerberry

open. is line Your

This is Congrats Ash Elmar on on progress so far. the for Jason.

was the what June realized access that price realized would pricing. price imagine versus May we question on in the quarter? online this just in of And I this and was should was my came new that it given lower slightly X, How April. the on month So really May net about think

the think please third for from about how on franchise So go-forward So price onwards? should elaborate that? can we you the quarter

Sure.

Annabel's you because is we my prior questions, being did, that, do a May like whenever that earlier to authorizations a as contract through to X, were that we that signed So reason have it of and remember sign to we hit I written like lot happens we plan. that the mentioned in had answer

that through factors that prior Those already are flip two prescriptions And getting automatically there's almost now occurring. were so authorizations are and rebatable. we over

impact immediately And they our so plants.

While impact immediate. start didn't you're until it May, right, is the

And phases so it's in. it not like

we're And the But so is incremental prescriptions dictate. through able taken plan has hit. price then after that that drive that simply already to that the the will

So we further a in particular. hit to it don't plan really expect that relates of as much

move puts and continue little payer like we more one shifting we'll and takes, bit so have a rates that. as and see across always to And unemployment some mix things way the or another

you should always major again, see bit, stable further now. out sign So an that. But any expect or on we impacts another major pricing. any just pricing and add but that, say, that look, I signed therefore, a relatively we should keep "Hey, you don't should see hopefully, it we and we to unless price major come It go eye deals, when attrition." going think Part know new Medicare should but see D relatively so stable deal. unless down it's And just new surprises, a think up, we all And our up we that of business, some see we we we little XX% out

Great, thank you.

Okay, sir.

you. Thank

Greg from our And question next with Truist Fraser Securities. comes

Your line is open.

questions. Thanks taking for folks. afternoon, the Good

for support that help First question considered or is patients? implemented new commercial about share new programs your program and any changes to have you thought could co-pay brand or your drive

and in put in put give Tom very the right we it beginning card but same the at now Rocklatan. have that continued with card I'll we So We did details, Rhopressa covers the both. have obviously, a of co-pay of you launch the some

side. of going have dropped up. because commercial a on in talk remember, the pay some of things a I give percent off that bit doing bit the bit that commercial the that, on we're cover will we has a so Tom I'll unemployment of little here more And sense little rate little the about the let

of it at is in And a flux so state Tom? But point. this

Yes, sure.

We co-pay we so target easy use good, physicians on again, the news like overall, actually coverage is very a for our and because usage so good of gross-to-net has the finding we're time and that But give because commercial we're card patients both little and less which goes or to our our of them. program, the and to a use, those have finding less co-pay bit it's active much But their for plan the we that helps quite a card we're frankly, co-pay. in our so co-pay will less is coverage that as card of speak increased actually that them because to for active rebate for But very do. products, with the calculation. us

helpful. That's it. Got

color provide that? Is can on details etcetera? that you you terms calling that can the force, of, say, the in sales initiative on there any about contract provide number the deciles, are more On of docs reps the some additional

to be happy I'll Sure. on. carry

they'll the So practitioners X,XXX around which contract is to makes country. in representatives they're is is. going on reasons They the their sales reps really going. call X,XXX force, and fully say call on But staffed, force that each for as offices. to roughly our we've XX,XXX, are calls next many top I'm going how competitive our not after cover the contract of face-to-face X,XXX sales the the got those

weeks the they So started calls and ago about two in field. just at making again, out

and are a very as are to into other seeing the plan the Aerie at doing see they're carrying our messages a they high So, offices, representatives them what are these that that is in them they're representatives same frequency.

like see once an between difference any we about going. So you they've and representative, day, end the the trained a just the sales shouldn't get representative contract at and representative think they Aerie of experience force get been some because

XX,XXX guys we they the that top call So the right on. call X,XXX but again, after

Sure.

And the eye on then, question last dry program. my Okay.

study think you in enrollment study planned, do Assuming the when that as could the progresses read out?

question. Good

we're year. I in QX earlier prepared the think of next mentioned remarks, it line expecting top in Vince

Okay, you. thank

you. Thank

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

open. Your line is

bulk Any and continue the mostly trends; those to Hi, half? on volume in covered Apologies good the guess, the their call. they I of afternoon. - is if I another them and in March This hit specific trends? But prescription just dry since driven this. growth bottle color second at was April, your in already And has you've by been Rhopressa has the Serge. the flat. remained Rocklatan, for on are while expectations what looking

the year, over back Rhopressa on started rebuilding most Serge, than up earlier the at the were the certainly, see do the beginning we Rhopressa. much seeing Well, we bouncing and you data, starting making of blips great using Rocklatan. occurring On given expected we progress any week,

getting of you week, started Clearly, most have basis. there, back Rhopressa back have sales time. it's all there, as reps a field the they're getting And state will. our almost now more in out They're and of reps data I to we on this message first on for first. actually the out the relative the a so consistent if like getting in And flux, said,

is where it's seen a forward. strategy, it remembering, on the that the so messaging on view. going do there there's be think point And Rocklatan So while of pickup, some we have all the based pulsing from starts as to act moving prescribing of we balancing depends some doctor the

have using may already guys steadily. simply the of been Rocklatan some So,

while, order and things they do a we those all just it of a doing sudden, and that, on to big for to of their And in that patients is Rhopressa writers once to more other more or So the thing us Rocklatan. every to saw more until at over a But win the moving will day use they are think, in monthly for moving weekly. of while more off least more experience. have now get

in as And straighten that field. think out will reps the the it's something sort back so are out itself of we

we say terms made steady you second strides side? movements commercial coverage, in payer significant when on Would some the pretty the expect additional Part quarter. On state in Okay. obviously, of should coverage? D see you you're Medicare at And to currently

at So talk because a covered. we state on the point. still do do to pretty at especially relatively side, this to continue think We we're different well plants, we're Rocklatan steady of remaining number

prior of going have need. Rocklatan a of last we a it's coverage bouncing plan do really So We that on the more again, that we be to But signed. downturn lot here. we did authorizations like it's during the the just act, big

seeing many because just We aren't haven't new of of doctors number mainly as those, the patients. seen the

slower come somewhat And will start we as so, more think it's go up patients there, it picking back. but been

we're of like not away hurry just sense just we're makes unless us. simply give not it big rebates, sort so a And to in for

plan think then now, particular hits progress, threshold it's as you balance a that we're between things So the where it But if they the find be, where we'll at and and and cover state. amount of a great tell to we steady we business want about it. right we

Ritchie. Okay. Thank you,

Thank you.

Livnat next question from our And comes Oren H.C. Wainwright. with

open. is line Your

hear me? Can Thanks. you

sure. Yes,

a I have Great. couple.

you WACC? we're come pricing. in down on where to launched we this in were launched gross the given and how touch a now, like Just separate expectations think to away? products when give are but and you that XX%? - relation and all big before which, the these of seeing that you'd further might percent just away to takes, Are of market? understand in by been some these of competitive question. this your it of has look overall Did my goes net they why while you sort puts I you let's Are picture. you before math, Is launching original where thought, And see XX-plus they the be ever dynamics and have

all-in does make sense. an On XX% certainly, basis, Yes.

companies certainly, give are differentiation lot And so a on to are than that having the out there and in market. their more depending there that way

to things to is to the very, like future about includes we're we're that net here, the talking also that double paying that what the remember You and have difference different. very gross wholesalers, fees digits,

ours, like low a middle if into double it's And company, large digits. you digits. the you're company a you're jump small single If

there. also all And stuff and like in so discounts embedded pay that Prompt into are that's that.

the be And if But expected actual So would to were we all we a D story paying Medicare in, competitive. rebates, Part of for it's than out everything with is it XX% question. that be different doing. not very

guess So actually revenue makes this may think to run do out in volume what the of is those space? big I materially? implication what you company it sort be improve be and you I guess, rate a What margins there where

that all are. But if there's includes line, any you in It different not It on depends you the the simply that revenues, one it about sort of exclusivity and large able they're the etc. juice we revenues, think the with do like single may have. on factor those just than breadth I'm also product of have pharma fees a they companies, will to certainly are game certainly, more multibillion it. wholesale play sure

need think I'm your you remember What answers. makes diligence you on I potential not inferiority switch Europe; but in your three can't you need I pricing three think it's do are mentioned asked worth that you competitive to have guess, Do this I also to determined this results could closely. think times in sure superior or best on the yourself due launching they are, I to give multiple remarks, Mercury if partners go to in even And Mercury people our saying, in past, go? to and Europe? remember paper, Okay. we've those own. And I good gears feel a I that be prepared you we've dynamic but to I is market, in watching it commercial And see

to partnering in So has something with changed or Europe? not regards

thing sequence is, your question. of for other me let So all, first the just that's go changed through of the us

Regarding product from combination the we inferior to results, three if Ganfort. point not the certainly out can is we're price pricing live a there. Mercury of view, It highest

us give pretty would So We have. superior, price good and a what position. will so that that in us better they we do a be that believe puts

us. for good certainly, So real is that incentive a

ourselves set position pretty a so with a or either in good to partner. And we it commercialize up

we lot progressed have to our inbound we certainly Europe, and companies. of thinking with As from interest have a other relative

better the having weigh the And to do in it's would much is money money And trying else of it. for how David it off go a what spending the versus am in to take relative what of somebody having it in case launch coming through me so we ourselves pipeline. Europe do function always Europe purely to on there. it's And I to us to panic

a balancing it's So act.

relative we new of long more made the in we pricing of the we think ahead ago of product, about, again, to all haven't us as only some the in control States. today the maybe will Mercury administration's the call about that And eye the so dry And do we product, course, have partner importantly, be certainly, well, that go outcome wait here got for the to But on franchise yet. to have want the three. not like through Europe, Far in to we're think prospects, but to news it doing of we and too glaucoma for maybe not is attempt Japan. retina United

really Europe willing Europe? think take or we And us, Do think a to hit we we're that. be products, much have going just going subject how in so to own to or our on the Avenue generate pricing we'd that to in do if pricing be of we to a partner a about sufficient interest U.S. to is And in basket U.S. really we are there, hard

driver so single point or Ganfort? at non-inferior to get the, superior And the we biggest is inferior past or you that this once are

be won't Well, debate. you low sure in I'm that

that they decision there. Well, if you're as lose absolutely make lot right. to the make they Companies have awful wrong an

thanks you that. the sir. All right. for for Well, Thanks yes, answers

Thank you.

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

is Your line open.

on Clark Dan Hi, Difei. for this is

two us. from Just

be can So And on other then occlusion injection-based expect any the would do XXXX seen you've the from in gain the XXXX, helpful. market? XQ think do to script indication, retinal color Or share that compete implant against you in since vein you treatments? primarily the AR duration you

sorry. I'm

second your Ask question again?

XQ Is script duration there really any change in from XXXX?

okay. Yes,

You terms of mean more the in supplies, etcetera? XX-day

exactly. Yes, yes,

we certainly Yes, Yes. have.

back answer and then RVO I'll one that get if So me let question. your to first, you think

in things the something in XX-day when at looking one QX, the X.XX scripts. the in are the of And or X.XX So sense were do we were per bottles talking track neighborhood script. the of we we of

X.XX. we're now, right so at And

to spike got folks respective And didn't be didn't They more to it's get wanted more so because to seen areas have and we want sense which in go number They stuff we because more of an makes was to of prescriptions, like long going sort know the in to how increase that. their supply. XX-day the the of shutdown and pharmacy.

a really anyway. trend surprising We a little just direction there. we're spike bit of we So it's not just in that the that it accelerates that because see saw headed we there. on movement were And

So we have seen that.

in the between out really today, market got Europe you've on Now the United divide and so RVO, there's to the States. it

VEGF than we etc. of Europe, RVO, In treatment inhibitors, in see use States United so And we see more do for United in use States. of inserts far more the we steroid the of

is what's maybe, either but several one max. where months, interesting And And of maybe three products other that are so are years. U.S., last them of one then in the only the like a the products available last couple

there's And it. that's so

to And see so seen were works. print of injection able because a exactly months. for know technology deliver insert dexamethasone we or from of to majority is an products that, is have formulate we we advantage one rather majority what physicians having day the the of would six the the The

the the etcetera, through deliver it patient that. from cost the that the them in well So the as we six for because flows managing certainly practices, their months? U.S. it also helps to the can question of the physicians patient as them exactly both was, what manage helps wanted Europe, and that's Because

we to able very fact that helpful. is certainly the were do So very, that

doctors that we U.S. a So the date, think penetration but in have six do now market because we has market, product that the steroids at much and clearly bigger inhibitors. the think they least it's that to again, Europe, right retina tend physicians VEGF a use tend more are because currently where Europe, retinal penetrating extensive, product better of characteristics it's in use particularly often. to U.S. do also because In only not been of that chance last available, more months a physicians in not established to to

but that So outcomes the a one the that last months, you're delivers is fact actually that looking we have deal. for, six big

into going So we're head-to-head the market.

Thank you.

Yes. Thank you.

And I'm now questions. Mr. not to further for turn Vince any the to back showing Anido I'd like remarks. any further conference

in headed us back nice thank business the Sidney. we spoke as you get call. the back I like come and Thank U.S., for quite see time time our this joining And for commercial time we since know it's that a hectic in in we the to Okay. position thought do a during been new we frame we QX mentioned. everybody, our as And into you, patients February afternoon. We all before were should happened. our more increase the prescriptions back of where this last fold,

a in to how of first the next today, and half the we on about across before expecting that towards everything not all year. cautious could the eloquently, big having the In in in programs view the impact of look is pipeline of going Rich calendar we P&L data the continues of end you well, starting expect Europe way taking very, do just also, EU, States, thing for And anything III impact is as the start trials. end board U.S. our there burn. of geared of that on specifically but second cash three that went in the will now very our are we make least, we of partnering Phase the Last some major looking development expense could I on glaucoma of can the control our the Ex our to be Japan, United you'll start perhaps in doing so as launching pipeline impact here But on to around decisions starting certainly, view. the go pricing heard so one and year 'XX see Washington. the we franchise. our to As a in as Mercury are discussions the for progress mentioned point of seeing our XXXX from the it the before the right late year. business through start you've We

year, while so pretty could into through where next of grow, we're end, that continued have artificial to P&L the as it we good And do going again, again, feel last of see the we're And end the etcetera, towards But be spending, that building lowering COVID though you sort up. expenses was etcetera. revenues for we're and this going there. all and to us makes like R&D we to for that because travel, progress even progress due bit prospects making a quarter the it way

So overall, good was quarter, the forward stronger thought especially in a to out coming we of circumstances, fashion. it much of a sort look this given given but

thank again, afternoon So for day you being us great a safe. with this be evening, and this have or and

great call. you a conference have participation. this for today's gentlemen, and Ladies day. concludes your Thank Everyone,