Aerie Pharmaceuticals (AERI) 26 Feb 212020 Q4 Earnings call transcript

Good afternoon and thank you for standing by and welcome to the Aerie Pharmaceuticals Fourth Quarter and Full Year 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 is being recorded. It is now my pleasure to turn the floor over to Aerie's Director of Investor Relations, Ami Bavishi. ahead. go Please Ami

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

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

introduced and newly Additionally, products a including candidates product plans regarding regulatory requesting, maintaining, respect discuss strategies to agencies we our candidate. progress will of pipeline or obtaining our with from and preclinical approvals

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

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

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

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

our I discussing Lastly, we implant have to deck this a to Vince. we addition in our during indicated sustained retinal and our will earnings new posted call the latest release, Vince as his new over turn to pre-clinical be will AR-XXXXX our With addressing release that remarks. pipeline website;

us good today. and Ami Thanks afternoon and for joining thanks everybody

news pipeline once may including new we strategy, platform quite bit progress a quarter to good again so, value excellent implant with We our the across demonstrate fourth sustained cover including our outlook release have of today, of PRINT. implant preclinical brand global a strong positive our call results, an our that

fourth with basis ones the the most, quarter start our wholesalers, performance, unit sales the franchise I with the positive really quarter as me an XX% represents year prior showed of of over XXXX, in third of This quarter XXX,XXX the increase the XXXX. almost fourth from of quarter revenues the our increase fourth which the know Let that's glaucoma to XXX,XXX in increasing strong you at the the is the XX% units momentum recorded look that in fourth quarter. units an in

will nearly fourth significant stabilization expectations mentioned in have our we coverage call for $XX.X out we the and that last and contracts shy helped number further and per our before, our with bit regular garnered later. increases of quarter QX revenues volume November, be prescribers gains further in full-year payer million as we Tom million $XX.X in earnings are of called quarter in penetrated XXXX to revenue along increased revenues a with of have the On third regarding our our up certainly our compared net net formulary XX% prior the prices. stability of million The year, of net to future Our net our last I've discussing over bottle. XX% product little of as XXXX our $XX.X awareness increased products of the profiles year for of

Part revenues In with in was fact, and per bottle fourth QX quarter $XX, net $X consistent per bottle higher than share. Medicare D

net point that revenues, new have that managed price wholesaler are our do contracts care to some a been to eventually discussed refined increases implemented, we of would managed XXXX along continue contracts been to time. including we bottle would have strategy with time over and our that get net increase our modest stability over increases agreements and seeing some us throughout refining contracts care and the wholesaler and are it's in these And previously, help impact in start renegotiating we agreements our per formulary going price place reestablishing revenue that XXXX. price As price and increase of to not and until actually are formulary net

As we full of going revenue agreements bottle during bottle our forward. per for XXXX. the and we of XXXX revision expect wholesale about of to our net have revenues the per have impact benefits largest so The the the on net X% the QX or beneficial to year said, started gain would primarily

looking per gains quarter which very we revenues expectations of with net I the mentioned. this net obviously, potential increases to exceeded So bottle and revenues fourth as happy last continued just in with we're forward are and the year volume

of yet. the the are not this but not the we and as the point. care regarding declining very and we XXXX declining, the And forward, it's to appear incidences we environment COVID remain will months. the are guidance eye cautious specific certainly predict are practices Looking effects on well, difficult professional over in somewhat doing rates at see result, be providing few next states, certainly, full do majority a we to offices And recovery be

States. as pharmaceutical the of our for product get a across in shipments our products. situation. We the and nation, bit lot this a have hoping week especially volumes temporary central Now, stabilization XXXX United thereafter. issues may have Well, more or facing, and the a appears week what about quite or this This back just to are so some rebounding not a result is week hampered obviously many are on of of distributors gain orders were but relieving of where things we the COVID, and to normal weather stability thus part we lost a in this at back for least be recent top the to winter that, far weak talking like us

which are quarter along revenue consensus with expect, the the fourth volume comfortable approximately million. the for we the the per with experiencing in bottle trajectory However, we net can estimates say $XXX that we based on are are year, analyst growth we

pandemic You and sequentially in increases the should physicians' XXXX rate any up ultimately through optimism expenses each can even expect back offices gives our our volume and that in operating have patient are to grow grown not fact the grow continue we once quarter XXXX. us significant The volumes certainly faster levels. that to pre-COVID

highlights fronts. here the our further over after to I on and turn provide the Tom? a update will I and to cover Tom pipeline the that on in US, important franchise will call glaucoma Mitro global our Now,

you, Thank Vince.

and outperform to glaucoma continue franchise branded other market the glaucoma products. glaucoma Our all

or the or over Our were XXX,XXX glaucoma fourth the fourth quarter down while X% prescriptions was XXXX of same XX,XXX XXXX, XX% market down prescriptions franchise quarter up prescriptions period. for

full-year XXXX, were XXXX Further full the diagnosis diagnosis of our as year XXX,XXX direct at visits COVID the and on reflecting over visits XXX,XXX go grew X% lost has a glaucoma our that of XXXX; to US office effect still excellent and or prescription prescriptions IQVIA for XXX,XXX all declined franchise in market on in by volume prescriptions. patient due into well understood patients' Looking the XX% reasons over to closings franchise while demonstrated suggests reduction reluctance approximately growth. data or offices. Obviously physicians' such ophthalmology

narrowing our were Now X% in Very prescriptions again comparing franchise January prescriptions COVID product both other by to IQVIA than XXXX of to January continue so far of some the the past XX% at to January, glaucoma and the we more show XXXX, the prescription reflecting fourth January year market quarter glaucoma grew any our and XXXX, were market broader the glaucoma importantly, down XXXX of to prescription compared analysis franchise up down monthly once and effect. outperformed the full data primarily January branded this looking we this outperform volumes market.

or and the pharmacies Further, on prescribe seen and month have average have record most prescribers is from Currently our XX,XXX write physicians may alone. X.X glaucoma of recent now half you XX XX,XXX prescribers nearly in units product the a As more franchise of deck, basis weekly December out writing prescriber an sales been glaucoma a now highest XXX,XXX over an month. we prescribers as glaucoma have who on count our decile Aerie total of our corporate reached well. prescriptions product routinely Aerie monthly The each those frequent than day. X products, to

detailing. but in detailing for detailing is has regions of person are in are largely person Our were virtual there sales force And country quite equipped performing in curtailed. certain well we the fully physicians those been cases,

for gains Importantly, doctors' customer very telesales and well the within to organization Also consistent respective market patient are we're their offices contract samples groups share their sales our showing starts. performing getting sets. our

effective contract top the calls on and in physicians In believe glaucoma access of sales June next represents an On that in of to the possible. prescribers. XX,XXX, July a calling and team this highest share with we highest team X,XXX calls sales XXXX telesales efficient force of way as approach and the added began many Aerie prescribers We gain Our prescribers of as market the which next in highest XX,XXX XXXX that. products.

physician that offices saw about are volumes of open We about patient XX% eye XX% are practitioners prior of still seeing the to care the the pandemic. they and observing are

the the certainly cannot future our course, growth Of but COVID, of continued with predict throughout happy effects pandemic. we we're

per mentioned, to we major our increase we our rebate continue managed Vince In XXXX price bottle. progress excellent new revenue for first we've effect in care XXXX net increasing implemented are of the quarter as fine-tune of January made a agreements. three rates wholesalers, in Now our and

Our patients keenly XX% XX% income XX%, XX% for the tailored that of coverage, is within essentially base physicians when pull-through coverage managed franchise the message over LIS by while excellent for bringing is low level Medicare Rhopressa gaining we approximately coverage care are are a strategies, Rocklatan at focused remain to or this covered at included. plans means commercial our lives approximately of subsidy focused a share specific With within specific the Part D plan. and on and

you nation. of the within And D in coverage May result which a since plan reps of new largest the that the as we plans the to time, recall our our example, XXXX franchise Part and an grown one have performance targeted share of has that that gained units with in is physicians information formulary in showing As see. doubled exactly need the our Medicare considerably coverage we

practitioners, our turn believe I formulary we before pull-through care additional weekly imaginations to the summary our products certainly the care call levels and will are our with in established our prescribers voice success coverage of eye excellent to back share momentum focus strategy monthly we capturing more to So COVID, and prior to prescriptions on prescribers, many our Vince, of even follow. over managed clearly Vince? glaucoma capitalizing move we're initiatives

well expansion trial year. markets in Vietnam and or some is We Japan Thailand to underway. first results an in and will as to and later the partner forward trials this South readout and is do of be Thanks, topline the excellent Japan ultimately plan III Asian for Phase Santen collaboration like international the moving Korea other believe well. our We Shifting of schedule there this on Tom. the Santen on

meaningful regulatory the we Europe. franchise from in along and positive in approval data, sizable of interest topline a region, heels commercializing the our in collaborators, are seeing Mercury the On that inbound licensing in full with folks for X potential interested Europe, collaborators glaucoma products are the

lost. is we to begin continue, pricing are to discussions proceeding own process such obtain our that Germany no these in the time on While

Now in partner, Phase that's FDA reminder, Japan, ensure with as a negotiated PMDA, consistent forward III what we did a with the momentum. with whereby this is Japan continuous on pathway we in we to again before there the the signed

would from about totaled represent already nations ultimately as utilize Japan volumes Europe As bottles well. million we We market further Irish over an which believe excellent production X before, top for for opportunity market our to in due volumes is to anticipate the growing have producing US. in market to XXX the compared in XXXX in alone said the the and European million the the bottles XX plant, glaucoma US we the

treated TRPMX could the readout several out track added solid the we and our XX in is year. the and that ocular of are placebo which learn candidate. ultimately product trial X eye design. a active rate. a sensation. their mentioned, their Phase eyes to of COMET-X million endpoints there this believes QX A about a agonist be Phase in discomfort, the that channel, pipeline to receptor With million tear also osmolarity eye of Xb The XXXX, to trial ocular the powered deal the for The for blink TRPMX production every sensing the trial for symptoms We've a much Interestingly, possible We which of ion differentiator -X who program, IIb sensing tear we experiencing cold on quite are a could can be this product as of the believe regulates a candidate receptor XX our production selective be concentration X that we That COMET as the initiated patients that us. a for X its activating discomfort AR-XXXXX. and I by patients, Remember promoting are primary US, millions and in systematic is and sufferers and performance. the we benefit data so is compared XXX is symptom cooling are for big in million as days. and patient may reduce endpoints sign. this, is dry named improved the ingredient product about to a able need health potent product testing III to have to totaling for Turning about October secondary Phase is a in eye that fact enrollment dry XX to drug's topline said, as do XXX different

platform, the steroids XXX in retina technology AR-XXXX. to US such now drug III well at the sustained as duration in a have in of very the various which released for to results both the retinal release and the open we that We blends pathway OZURDEX generates dilution III to models regulatory very, plan for injection Phase reduce diversity which is targets of our turning profile bio-erodible pretty how in this sustained study last candidate, drug interesting US Europe. and is to can implant right longer allow July injectable development our Now we a customize the the Europe those year. to million treatment our potentially in polymers we market process indicated half up and Phase in topline we product to platform with do point preclinical enter various discussions of II the revenues and the are flexibility over months predicted the The call for Phase on efficient our pipeline, other this What finalizing advantage small determine is and of very effective in dexamethasone and authorities frequency X as We thus molecules. occlusion rates second this determine opportunities is of of that in up greater different and the efficacy efficacy predictability Phase II which has provided vein of terms period programs. a using XXXX over create expect

Let I our pipeline before me candidate. potential discuss reiterate, new

perspective, clinical from To provided ready. platform cycle. is a for success X to molecule III in leads probability we the retinal it technology using Phase achieve the million took a efficient platform. where shortening to today, principle a to new posted is to X range our that at of in for innovation, have this all is what is to And the XXXX cost target X development on to it typically of our slide it don't the of in the is of us proof on again, our point entrant cost levels which and helping PRINT the million and earlier and get determine ultimately Further flexibility through has such I predictability, to cost million, million we the potentially our believe you AR-XXXXX, development we do implantable inserts plan PRINT in outlines this just very high exciting point. selection in exciting therefore, candidate. today detail a X features deck new sustained of future pipeline. Our that slides walking release say website very

presentation. will of you Let see the points me address in some key the

four us the to a combines it formulation it ingredient flexibility the environment for Axitinib potential inhibitor a is the to proprietary platform to treat months XXXXX, active right injection. axitinib, selected, that create a case all provide control of and is has of with VEGF a polymers isoforms AMD XXX of or with DME it from of up inhibitors. marketed other signaling any axitinib. pan-VEGF custom activity For this the inhibits is of in release bio-erodible XX of right implant PRINT example and currently prime wet VEGF, than it molecule blend to is drug of small inhibitor, a and allow off higher preclinical small patients pan-VEGF polymers the single VEGF how intravitreal the a inhibitors delivery meaning molecule less plus blending controlled target isoforms, unlike our the efficacy to all

tyrosine of for inhibitor of know, approved XXXX cell use treatment the may axitinib you As in in is renal molecule known a kinase systemic a the carcinoma.

to for health the benefit implant DME patients. total successful, care this may AMD and if significant wet cost provide Now preclinical of

small there is this in alike. grow will less market potentially implant agent, important see substantial one for and to The would only potential is consideration there when frequent by active physicians As year. of expected require market according benefit injection release enabled potent for With you worldwide scope. continuous $XX I by to that the molecule to patient consider the slide anti-VEGF patients to XXXX on our economics to you preclinical treat here a it for both are based billion data, up one mentioned earlier, the injections

year. development later So and activities IND work preparatory steps plan of the on other XXXXX the this an are as we next for toxicology filing

efficiency technology of of a sqft the and a As PRINT our may half units for if the a headquarters in patients in sizable believe when utilize processes they implants we about value for year North contribute sustained million process per our rate We our reminder, overall product at commercialized. can Carolina. release small Well manufacture margin corporate to our both facility and manufacturing these physicians. the X,XXX are approved and also economic driving candidates, and again, opportunities to in

trial Lastly, safety for DME, AMD as well. we Rho-kinase is making a progress insert we wet using get developing am this gain for protein as inhibitor, we kinase we're And are as AR-XXXXX information. safety evaluate our is done technology prospects our that a the still I soon and more its we with it as remember inhibitor sorry will

financials, provide would candidate year. this still over like turn are data this to call stage cover the We the I expect not Rich. to formulations evaluating early and any different do point, Rich to this At to at clinical product

Thanks, Vince.

revenues Rhopressa and XXXX Rocklatan $XX.X quarter totaled As our fourth in combined discussed the Vince million.

that with consistent was gross previous XX% margin the quarters. fourth quarter for is normalized Our

on the production. are stages addition, production on start-up early quarter, layered of will downward Athlone fluctuate Athlone commercial overhead is a associated the of continue expected in we to is to that a with produced in sales cost volumes trend but $X.X top In in plant capacity it million of add as plant. we of number number Since approximately idle depending to batches

for as we we XXXX. aren't a our do in reduction While 'XX, providing to expenses specific for XXXX expect guidance capacity compared

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

were sold general was $XX.X adjusted $XX.X quarter XXXX and and $XX.X research and total of and with of administrative fourth $X.X the selling adjusted cost For of million. adjusted adjusted goods expenses million operating development million of million expenses expenses

quarter of of by is XX,XXXX. cash had quarter operating after cash and equivalents the payment our for Xth the the Santen For $XX.X to provided net includes upfront The we was Santen XXXX of our withholding net million million the from in that $XXX.X dollars Xth provided activities December of taxes. which payment activities quarter. flow positive provided turned fourth from cash net we cash, million million investments million The $XX.X cash XXXX, operating and in $XX by $XX the netted as

all year quarter net elements Shares balance the with ended a growth positive outstanding in controlled including million. XXXX with we to cash European prospects, expenses, at a $XX.X totaled continued solid So and end revenue, potential preserve cash. collaboration,

gaining Aerie prior has believe like please information call One take additional to ESG disclosure refer would tomorrow. comparisons, to ESG degree we on We covers the and and For attributes and Jerome? new will social, human XX-K, in ESG the I year continue will period for very which into posture. full questions. and And will our further our quarter seriously environmental, new to and to our and very insight capital Xth will have the operations. operator disclosures and which our file side over our regarding turn note incorporate find results into it useful and our XX-K I helpful which matters Form now, on earnings release you governance to today's

first Instructions] Annabel [Operator Your line of you. Samimy the Stifel. from from Thank question comes

line your on please Samimy unmute. line open. Annabel mute if Your is is now

Hi.

some net few this care more I on prescriptions can and this same going assume, wondering year, can we past a gotten you given you've manage to the and a is should challenging to think Should a for Sorry over different on color obviously improving agreements improvements. trend maybe the I nice year. where start, I've and year we maybe questions now pricing questions, forward, trends, some was about got in per but with first start has that. contract end for taking expectations that Thanks us I also. my quarter on have mix, and I us from guess, follow-ups the the that some based been we great got the but a benefit assume revenue wholesale help

thanks. Hi obviously that do always quarter think We challenging the first Annabel, and right. is pretty

certainly to shipments if having going met themselves. or So a only real hasn't of at got deductibles and now, the the days terms what's the, you we've take etcetera we've have more shipments Typically retail from slowdown be look week the a of right contract, wholesalers been business we seen weather a on etcetera. XX under to into with QX and and in and is over sort Medicare now more that on soft going because the because little what's wholesale last out the helped of certainly bit

good so period going seeing so that that that's as rebound Certainly we'll think expect after we of looks XX-day at now we week there's pretty in And we're and this pretty but inventory pretty it strong and good continue. so I what plenty to is I shape. be think look

it's So year, from a our sales to we pull-through pays like the so the share to small both bit market yes, major or are positive, and we just the of of we in we continue grow negotiations do at share very, and to when plans, up, I overall that and renegotiations, we impact quite of went that expect will and there with we think like got almost hit were We that we as wholesalers has plans the pull-through the stride and the is Tom information our signed is position the and or last had we've rebates relative very double the May in show units grow. expect just a organization, drive I to and more we price stabilized about into our something see now and to that focused a up point. than think some so said now and for the this beginning real trend has it's market to X.X that that as of on continue so able

different we ahead And are, is big new months obvious of the your program. slightly maybe Okay. about in of number anyway, need duration, your the there expecting you differentiation XXXXX a But some those then, that development programs program more there little There your of potential here. about XX the other deep stating formulation are that point over program, to are on that comments. prioritizing program we've that readout and going -- seen from can outside do so, is data the work or no what on Obviously sort that as year be this you duration. swing anything you to asking are talk a based you're of a axitinib of is your bit

everybody to and answer months were from on as puts working else you're Casey, category delivery can both this well call, up us on out more general them, on us we a David if you axitinib right and on we give but it over having kept call for to the get end time specific about have focusing I have so months. we Sure. in XX just that's apart apart on -- there sets that is X certainly as

I certainly think to and environment one has insert. that release thing a you you which if to that for any the is order axitinib product specific formulation in it have from in of live, our control to understand very there has the big will,

ones actually have what see to is do matched the and different we proprietary really which we about is situation, an particular polymers and that a mixed array what so number can access of indicate polymers of to And and team this in put different which that to control need because make product. needed environment to so them level for that we available to there's of right rates we to plenty axitinib data its we soluble the what concentrations, enough dilution release have create of the can together in

enough So not that's polymers to in its active juice we built so insert we we've it inserts effect, that's effect see the in we over can enough months. how needed of to XX know get see the the blend concentrations why only out the eye order what we meeting that in and have the their maintain and to and can with

So things technology over X there multiple us give that capabilities along looking to the we're having it's polymers combined, XX of differentiation the the months it flexibility us of to for. the deliver formulation with allow

you if Got it. give there. clarity And just as little bit us a XXXXX of just could

to an indicator that of and original XXX back get because get concentrations like just the DME So, to more eye knew retina what right with wet yes, based the to of right print case that interesting, done for. physicians that's proven the what work of are now need so the so XXXX fluctuating conditions found concentrations we we were the concentration dexamethasone have that we what on we concentration really of for understand to the XXX, we right month is. have as all now In XXX, that we that way of gets get expecting cetera. of insert now of the at eye us than know is haven't we've we looking we that technology inserting now in to effect And that the We're PRINT one the and see and so works the it's to effect into yet. on kind but using a see the see six AMD the whether prove where shooting et

for a and next what will as very, the And then of concentration sort patients, we're finish high as this is small patients so, able very program which as give trial, we but is set soon right set us that to soon again kick of as get that we'll clue XXX be to hoping of in the next the as we gear.

severe ask question, the may about done so I know you've want so If were that's the Okay. TRPMX here, some or ask saw I've acceptable. a effect since one clinical work work that guys the we that you p-values in done bigger got that's to been more more I population agonist where that the program,

it but get population or population severe and been to to seems a moving moving or the you're effect. obviously effects, mild get of mild symptom moderate you're So cooling always -- to probably you've patients the -- including because like angling try this probably broader in forward space patients effect more those

and you it reconcile population. do population, clinical of more the all trials to then the marketing how of So mild on severe Thanks. focus sort the the

story as we and particular all is So will powered for that possibly in of would words symptoms or IIb the characterized we that because get can what when that trial will not about the so I help the actually be the little have things looking terms this IIb further into the David in leg clinical to up just you give will tell us trials, the clinical data how again do, we all so needless and which able get for. to managed the going authority, in bit sure get with are the us bit to as environmentally -- backed that David may am design studying this study a chamber design it -- to and original us trial and understanding answer wanted like as we a well you the to dry of team we details design on huge and that, eventually if only the used approved signs we a gather want talk we question. think of of product that commercialize care able that that we little of up use next agencies help design to sorts eye trial Annabel's remember truck of both this the best gathering set as doing make a say ways molecules, in you're as so questions certainly secondary But III amount the we to I that trial, think Phase answer that's different for Phase information can biggest was

Sure.

symptom of for as So, three months. series great discomfort tear chamber adverse of controlled looking primary environment, at a have and we production using question. sign, Obviously, course built of as as environmental and known endpoints both but we're the series focusing endpoints, and over well the ocular as different endpoints otherwise a on in the our

population trial the is base. all more do across as a symptoms original symptoms know a in in they patient across and saw have little Phase just in on also Just have not we the experienced nice eye actually and to production nice improvement symptomatic. was noted the represented as faith and across just the our you tear dry actually well correlate our patients, p-value entire patients. signs, the signs was IIa your fairly doctors Phase broad most and in to a touch be was question, happen very patients always IIb more symptomatic in what we trial bit There What

part The that other they IIa is the not they're added be vehicle, an all the improvement if tears, on will have and wasn't to which vehicle, artificial included basically patients Phase is an in thing on running study. be improvement going in of we've on

do of the we're represent particularly that array improve patients symptomatic of not signs the there. with the focusing out at we patient end and of and So those a testing on day dry the well broad a very are array who vehicle population are patients should the eye broad on

you. thank Great,

Great, thanks.

you. Thank

comes next from Cacciatore Ken from of Your Company. and Cowen question line the

now is open. line Your

to momentum your Great see good guys, Hey evening. favor here. moving in the

Just of a couple questions.

agreement. talk you lot and and sales Is one us Can last may and there can product tell First, and positioning there. obviously the worked between as could complements. Thank Rocklatan on to what secure you clarify on if able Japan were you you can the question structure IND have a don't was more we're you parity give terms you you other. coverage have just to us deeper I agreement. on focus vis-à-vis this call. over the just maybe momentum? we against it year. the want force on as be this year at the in wondering, and Rhopressa Second or that to that of the now for said now timing least this what message, more of a any learnings you of about good repeat know with into sense much. And the here you yourself so want negotiate helping the the European Is getting had then you Rhopressa is Are experience refinement lastly, been XXXXX, potential I line on a just just I of a but Rocklatan magnitude

Sure.

the view So what of take Related the we that say bit doing both is have as we're who in Ken, Europe, only East, wants other have only. Tom I'm that territories, but the of et have lot lot All more Europe, Europe cetera, care the lot then a as interest we're who talk doing the of everything to looking field. America, way ophthalmic Europe that the experience I'm to somebody about for the buying cetera. of example, from we out to mentioned, add little messaging in needless an at is looking are folks I for to Latin point IND we've to going as thing at to like and EU answer down marketing not products in from a agreement a going awful of we have interest Middle a et the and partnerships got have well interested, have that our we

exceptional, to the an or the do looking and we that more of we're view. of reasonable royalties and starting that's additional pricing well awful milestones upfront like at going which to negotiation that, what that dynamics. so to a point We able of as dictate and deal we think do market point that's the got lot in we're relative for stuff in And that to what and/or trying certainly, view European think Japan as point was are

and Ireland, more an because us and sorry, capacity in, the think as is that long overall that, of the impact cannot make mid-teens of for gross our we point that, us to [ph]working is part things a the I'm know want so this Rhopressa we've put And manufacturing a to manufacturing like that agreement the other We like that in to to that I there view of Europe we sure value component part that how so get we're our manufacturer the we going -- use, financial future that in Rocklatan, the importantly what is as got margin pretty because on is. we important the and we from of but make we in better just just see more plant or for company dollar obviously easy So of and that. for mid-XXs to do it, got looks mid-teens market. it's and that territories to to for be capacity the do can Japan,

partnering that side. EU So, the hopefully on helps

that the On this that be able some gather to be we filing year move additional IND would later we information, calendar that we on as side, think so forward. we'll

about in it the turn to now me let so And Tom messaging to over talk US.

Thanks, Vince. Ken. Thanks,

didn't things that now have last and really have was to authorizations received coverage our majority because So changed we reps we years getting the have the here's sell last year prior how of we did that until when year. physicians do up over last the them managed care

care do those numbers again, we prior have be good may the is shows successful to but And realize, our have. physicians prior physician the and that end sooner to and will -- they XXX,XXX to launch time to a that it's that the a lot care, get able we doing takes do we that. very of were authorizations submitted kept respond and for result and for it saying there's it it had in our way managed coverage you just they over physician by keep because probably later, they or representatives managed a our through did talk products that So keep doing remember you authorizations which on pain it

to driver talking on of positioning rid many prostaglandin get talk down medication could Rocklatan so bottles you patients rid so back get or they are are Now it we a on we X than a to consolidate efficacy for just mentioned and X, can and are to We we our things. patients well what about to one and of that positioning classical it's else. say one along X as that. about bottle, know, is you something are they a more consolidation go with real use using One, on more medications what of to great patients meaning normally is right, benefits well

drug would Of another and a we're what most looking for Allergan willing the regimen Travatan more not sorts things is Rhopressa like that market, necessarily initial copay, alcon because of go that with they drop powerful those of drop, an of using a or and therapy those of prostaglandin course, patient Latanoprost. the either prostaglandin may easy big the too, that harder AEs Rhopressa to something instead can who is a use products using be well what complex, be will to the the to drug can one that co-pay about second is to not adding is as we're going talked to patients associated a the people is fans I for make the additional want follow, we other and they that's doing the is prostaglandin one also other add one or so prostaglandins that is simplest but a needing of those a because product and don't with other say type an believe the drug and you now additive is we just Rocklatan. Lumigan, because that be patient adding product one use to in

the as data Rhopressa with route our the effect compelling most medications. to and especially we experience to other of their addictive is highly into which additive Rhopressa previous that that easier And add regimen. of have Phase that take compared to the you outstanding, to is say we our support show course is information So, from trial, IV know calls,

much. so you Thank

in the half of so XXXX. relative something correct think to later XXXXX, the second I misspoke IND I to be is -- Let up, for next I me year, the expected it is IND ended filed

you Right. Thank much. so

Thank you.

Company. the Your next Belanger question from from Needham & comes of line Serge

Your line is open. now

Hey, afternoon. good A me. questions for few

First and pull Can Tom. strategy. one it's just, for marketing about you

that's reach, will to how activities quarters you those where little sales expand in your you've marketing and a have telesales you the has just a now you of force think team about had bit that contract I can keep X kind us couple go used resulted on. of whether tell

Serge. Yes,

last sales First, happy our X and results strategy is very we in by Aerie forces, huge. look we gained the is call a we're market that way, that audience market remember and lot call that XX,XXX they early, share with seeing the at at really we we're force, which the their year sales our over physicians this half already, in a point look when because pull the you is

translates that net increase in nice sales. So, into a

July. they does the sound market just insignificant an to in gained go X.X our organization, sales stand contract like started and up not on share And not bottles points did and calling to doctors when on even cheer that you team they If until for, to again, points start though calling market amount, X.XX much physicians and X.X knowing share is that is gained they it telesales convert sales June. then you to but

whole the and set of remember up what share happy the and those And so and strategy was presentations designed can it's working hits overall. the that's we increasing of excited time, we market see quite period X and that gain of market short look considerable So, about our we're share back strategy very to get around this the with number is, sales point so And we in all a why arms that physicians. get far.

was first for it half in One quick think the but the price Okay. much of January, increase Rich realize to do Thanks. or in you if taken X% that XX%, win. expect how one I of on

-- as take you it as start soon realizing Well, you you start it.

effective was to X% increase and it's, So for XX X% it Rhopressa Rocklatan. was it January and

So see year that as rest quarter, you'll certainly you'll through and the in the first it seeing of well. start the

is to at know, has that said you I've increase As as level before, -- that right. gross a

that funnel at the our mentioned as in during net increase per agreements, various as taken all Vince that's acquisition So but your course the contribute year. -- growth you through the the way stability it will rebate and cost, bottle you wholesale revenue to yield don't of this

Thanks.

Thank you.

the Flanders question from line Guggenheim. of comes Dana from next Your

Your open. lines now

of X. be are that's for questions going duration two months a preclinical XX. much market one your the just know had the kind Great, you first, I all your kind but of initially, function least just versus if actually to end very Maybe, that in I up of XX on you be I you will a what for a of of of views on not competitors think at congratulations your bit could. imagine questions the progress. speak I new seeing can after reasons, some rate of acceptance kind on rescue will studies, program you your thank and

on kind secondly, wondering particle formulation, Thank that. to and can polymer if seen you avoid issues, programs of you just of kind particle aggregation polymer to are you. still like some kind could other you then your just technology of working I'm So speak on have how you comment but blend And aggregation. and sounds expect

Sure.

are about going talk Envisia then acceptance to turn Kopczynski, do the more acquisition I it So to polymer to patient was aggregation of that original I'm for I second to was want over the point where Casey going the view the main David is remember, to and and to little your founder take those of to have XX of relative bit physician et the then to backwards from I'm might versus driver questions you Casey X. formulation pass I'm the actually cetera of each of answering, a what going want we question of acceptance, after have to and part a months to sort company completed

So Casey.

that issue we other aggregation particle and start the of some so something in very were our formulation the at has very Yes, formulations, work. is risen terms of in aware

everything that can we have that the to not blend. did sure not I XXX make with be to but blend say implant. the similar it's an identical we is to our what So would issue in

differs those with from that's So eye any But clinical far to our based it where data an on formulation so issues of we formulations respect we front would safety to expect have how we migrate no studies. are that for produced issue. and particles the gaining from evidence the not being

David?

Yes.

and achieve this touch Just is to duration. hoping on the duration A, to it about goals that program; of XX-month

The other that not we're looking doses. hoping thing achieve there loading be to for to itself separate here will is we're

So X you get a patients sort actually doctors out try on watch then if the out want, and and which to and really has looking eke we're in deliver gradual the maybe a X take and it will months been out duration. maybe and X you competitive what to eke of is loading lot we products sustained loading steady pipeline, believe have you to X, and then not doses doses you of have that of, those you the

the said, do we that rate. been on, similar in will much future able be to be beyond closely believe very our in a months XXXX have will folks and the looking well but we will being expect from you see success X duration that everything is predict the a of market to with really first but that will R&D years. ability looking study, impressed example in great We've of very we clinical to prediction, effect forward the predict and the coming something X with be about at As to month retreatment the exactly their we duration

Thank you.

Thank you.

line the from comes Fitzgerald. question from next Louise Your Chen of Cantor

Your line now open. is

questions thanks [ph] for is my two here. taking for have Jennifer I much This so Hi, Lewis. questions. on

you been if we it of think the shape wondering grow that whether first earlier and a more I will can XXXX. you per revenues just but bit to know, should could not continue one, about asked think course XXXX you how beyond specific on about was get I it's The or bottle, how over up

or think around second axitinib My you is think this is year XXXX. I average revenue kind product. per of $XX. bottle the rabbit based Have you net in So on it detailed Where expect doses the do past question the was the data or can we the in should in publications of future. you the near was pre-clinical your disclose data presentation used sometime that

Sure.

are net that right, year, on may but size other that mentioned, up was pricing by side the a remember you and ever high good the that we hand, number of We pretty you it since. up with you we so for XXs driven into a year. stabilization ended on at of calendar the the the it's got So down number and been a call trickling pricing the beginning

negotiations will during that kicking have -- mentioned exit. get think remarks that do a that we allow this X% so the already increase taken year I that in we've our us as are my And from to prepared place taken to, about

over forward and $XX so timely X% on on the move So think and start again, bottle basis going just exit quarter. or the that really so a of we that's about to this per first

of Now renegotiations. in kick in we contracts, not the at that signing expect some for up to coming continuation we new there, so contracts terms ones future but have will all but looking actually then ones expectations, the XXXX that in the old we're of do some and continually only also are do we're see that of

country. provider And the last we that so Medicare that think, the the -- when we of about back will signed activities model Part D those was May talked again in we some deal, you largest start kinds we that is with in which using seeing are of

the of to being model generate the cetera. But et success. has timely that focusing provide they a forward in more we on the basis data rebates sure in making all that on product using a terms pull-through force pull-through position can careful but only not the formularies that So how our importantly, that terms the basis key we of going so within and sales the a about is

that to do an expect to that able and forward going move pricing we're upwards, we continue we continue basis. be ongoing on to expect net So to

on in you terms what axitinib is relative the some of we're of On right actual a have some going now look we providing, our that do, time and of sustained delivering been et cetera. on David so again can more that to of et not we that polymers generate loading We the are the into et and eliminating that hard what releasing period any provide is the eye all able doses that itself based that actual look it see which be the as back you we and we well in that a proprietary, effective said information to we so information over inkling cetera. information the eye up the data could take are at actual that tell what pretty required can the axitinib to but of concentrations have for to like and can the for cetera is some you we example on amount need of are blending issues are of known, the and is be what planning

this is So just one with injection.

and on that's the so I far the been and that's target everything what see, based we So -- we're guidance delivering believe

Okay, great. Thank you.

you. Thank

of Securities. Truist Your comes line next Fraser Greg the from question from

is line open. Your now

Europe for discussions when Afternoon, questions. Thanks Europe is opportunity, potential taking to is expect in the Germany pricing with the the partners with pricing do My folks. first the you decision and for respect question on on decision important

and expect can Ganfort tell product is cetera. pricing price in to ideas it's the yet authorities started talking that So et et elsewhere haven't I mid highest X Mercury our the that our and so combination in is cetera, market, What that actually 'XXs we with directly you non-inferiority the to results do our we ballpark. data in the we're going be because somewhere of there that study European up from to get able

that set but the for Germany the we sign so, able will contract or as agreement doing final we we price a before we to have -- do be start sign expect do And a up will are but we actually should partnering negotiations expect -- be that up price, to first we

it. Got

Okay.

all us are negotiations, that way the flows they we're be the that forward aware not going something that are partners the by And down with so potential pricing to moving aware that's

not expenses, you do this Got to on year, or increases holding are significant in And about we expect any cost should the for it, think sized current structure due term. longer OpEx right said, the pandemic, you spending is the line okay. the on

ago, programs to do a that that decisions same until make getting so we've been take while to start major as of or pipeline wouldn't years. with any made new that data and Ireland for we we of and speed. on two that getting data, I trials had now expenses to the we seen, control lot after OpEx a by we've on all but we to of we back had decisions able finished our X years three up that for you if the and on were the almost based had generate about quite data you've going and So, now Part was driven all projects up

for forward get until start and kind it waiting studies and moving all us in the X, will the put done we only to additional was how XXX completed, And that of the that's including data then helped data year. Japan a last in in so want asset in batch expenditures. we that and that We COGS XXXX the one get last only II not now year Phase it's we further get are and pipeline any original front Mercury but of We is move the and all eye we later of this the won't lot with our did in decide which dry so the tremendously. on trials QX study of

be R&D calendar more are we expenditures XXX issue year. because to Phase III again 'XX We we'll until on spike execute this expect you before to wait but and we -- we're we're the a don't into any XXXX than example that, data that for 'XX in be move of why where all that's get going to going the will we and trials, different, and the spending 'XX. tell steps big necessary money upfront taking but

Got color. it. Thanks for the

Thank you.

Francois of Brisebois Oppenheimer. Your the next from from comes question line

is line now open. Your

with about Obviously, Asia, little for can question. glaucoma. the pricing lot you But here for A on thanks contrast in Hi, answered can and compare the potentially the touch but competition just just was you taking talk bit I on touched wondering Ganfort. and was a market, Asia Europe US more on you and just the there. pricing

with being that focused $X shy because that now. kinds we've tend kind still we're very, be starting hallmark the many products well, in system the of market for with particular that that more glaucoma they of dollars, is a I specific the that most same in their and of right and but there not very because patient on one but the only so there, very to our and the a have based so were would There it's fact have is we pressure think pressures strong on we dropping centric relatively total and of done a important. elsewhere. Japan of low, Japanese get of market. are the as innovation dosed that's is do both is We so is available that products terms when they having look look in the adverse do a eyes they that's already event glaucoma -- that it's deal payer we price and signing on there we're that case, so is so and has in relevant is negative, but to homegrown to -- the be work the and just but that's Japan available pressures has Japan started head-to-head superior the higher Asia only the products and all some, to be we that so are obviously is we at are that a Japanese in on but -- of Rho-kinase in but already inhibitor once know pretty based what government they profile, specifically dosed is market know, currently they that's are Sure, lot billion one that know Japanese daily were of at do we not we some that's a efficacy the and our of again which we particularly Japan, folks value going well, up product we we -- class that in twice The positive new where trial across low say, the very drug and think do in Phase that III work prior think what relevant our set, suffer daily going board, trial pressures, first glaucoma that KOLs more a much many primarily and somewhat helpful tailor-made a payer they already

favor. to years market has to $X it believe a on going been billion that are there, on that up be So market X the a have the we billion on I they in think in over X% going now help you product against the To market and perspective be -- share dynamics for put our going we're market just already.

and again able better should market, adverse the be to we in the And our a of efficacy think profile, a once-a-day great that, target because that's who and especially the in Santen for so Japan. is, cleaner largest pharmaceutical given company us obviously, beat we ophthalmic partner is them event

And the our so and move they have us products market that will presence in a huge amount of forward. firepower help

Okay, thank you. Congrats That's me. progress. on it the from

Thank you.

Wilbur Your comes of line Elliot James. question next from Raymond the from

open. now is line Your

afternoon. good Hey,

couple question questions a to of persistent on bias to wanted lot -- ask questions revenue about assumptions. of kind specifically of a around that So, upward I thinking to trends, I seems have number per but bottles it. Rx guess first just some pricing,

versus the the think over how since XX% to relative at that were we has number longer up term, year-end, of some sort you that bottles are on upward versus wholesale about modest and Rx point is specifically where products, per sealing bias do but is some that number about beginning think referring are to there and I the that you trended maybe just always flat basis really and there and the or up a of the lines hit retail. where not launch to

life it. I that yourself Yes, for to doing No, make you want got okay. your it but just difficult way, that's more

any it other have way. not Would

No. Yes.

on And got people we per as bottles cetera, jump out getting entered a March about and running real COVID big jump a obviously of saw supplies of year, back script on cetera. et so are their pharmacy product, nice worried in and to XX-day last we we et

earlier him that continued. so ballpark. has Tom or that in was California bottles in we I script Mitro trend sitting for this somewhere telling X.XX So per that around me saw now week are us when right

for jump where a been, been we've again that's because huge from a while. so And we've X.X's the in

the those that We sitting products quite that data other to for bottles -- for been data hard script a also get a those have been on we competitors. some and the it's on in because so for have market competitors, think products about we competitive similar glaucoma And of of per X.X worked is but lot while.

have in Now, of that's knows we more the different But market moving a not have we what so you number me has the God if the a not the point what ago, question understand where that only and more to more lived and what the a the you last on over would what while dynamics say environment and But need sure going are that's through roughly now X.X Amazon is mail really pharmacy year, us, impact at I for all been asked same on this we entering we think is again we and to ceiling have year would and going going to have. given anymore. and that per I'm true would whether have with folks accustomed to towards now bottles order script.

behind I with percentage and reason based like the in increase or numbers distribution primary just to And the just am on agreements those the if those WAC number sounds Okay. then, an -- of It follow-up respect question was agreements are wholesale renegotiation based additional wholesaler off net the curious pricing. sequential those pricing are

It pricing. is our off gross of

It pricing. of gross is off

small that fair a there that comment. there it's even additional a net theory the number percentage So for large of and leverage franchise is grow and some in kind of potentially a maybe is

don't Yes, immediately, I They is agreements. some somewhat that. there that and some also things renegotiated kick that of the the these in like way think of staggered are and all them

getting we'll towards So that strive those as obviously to -- continue yes to and fees grow, there as as down -- continue I think then possible. that's so often we

yourself for question a Then Okay. or for Tom.

forward larger and for data thinking contracts relative product the Just the where regardless going spectrum. your you've trial the renegotiating sort benefit [ph] some care it's about used MOA of, of the times, in so highlighted therapeutic several the managed of in

something in contracts, Just wondering, performance have pay you be that even would the per guys of your that is market. incentives considered some possible in form glaucoma

Tom, one a that at you to want stab take

don't often to, your really Elliot, pretty will to amount there X of happy rebate, much don't or or pay share You from you Sure, question grows amount get be I'll market X do we from those will with right? pay Z to you it the we a that now those really give they do right, X agreement, we if different like if anymore, know share -- goes market of Y talked

No, I apologize.

a basically Specifically, the, comment net you reduction thinking efficacy about the if sort of product, the IOP deliver price higher to you point can a some of relative competitors in then

product standpoint and unit coming that our would the the drugs, of interested just very problem the big that dollar a in that We of or then Yes. do from initially standpoint. is a bottles isn't really expensive and bit it to about to are something don't and so like not ophthalmology they back just handful different talked a reporting a much in for to little because larger payers these concepts we but want time be, The aren't performs that. well, compared class

more talked patient guys about couple to look such And look then just therapy numbers like the been well, mean earlier dip have looks from the the data and time. of and we refills in to the the have on to is what basically volumes second quarter, going as if yourself -- offices starts through at, but been you quarters, thinking actually reduction about of between that brand pretty at some physician XX% we in are around new something between as and period offices they the you patients Tom like be lag script it the some good have closing and the metrics in script quickly, Okay. for in you who I trends had XX% pretty over back question last those counts bounced of for of patient seems normal. But like consider of of new last longer a a

capitalize a not or is bounce it a to to we return quicker to just perspective. there So that is that normal, some I'm when necessarily potentially on back from what trying commercial sure suggest way means

about XX the than the to you previous Elliot, Yes. ophthalmology sense says how at we the for were you but bit the by a is a the new or glaucoma it, XX products weeks might of just lot refills a all look got hurt and Well, in total care acute know so -- to IQVIA down are hurts the got lot is TRx were products of down a this you give that we it's look little as prescriptions brand data, only guess certainly more way brand hurt over ours at it different new last X%, acute the less. XX% like ophthalmology so

make their that So we'll of that's and people prescriptions have the where plans that keep the the growing. supported that sure and try see to for think I those and we But really in we they them physicians we they and cards keep to what there. with know copay they're people commercial game that -- been refilling up key do have is sorts things, continue TRxs keep thing so,

Those were thanks. my Okay, questions.

you. Thank

from comes the Securities. Your Mizuho next Difei of from line question Yang

open. now Your line is

Medicare in at gap. impacted Hi, pricing the Dan thank you. This all Difei. on the Clark coverage for Was quarter is by

we that as nail and best handle Yes, to it's that it I and it finally as a can to But team we is bill. when always to very, end estimating Part like biter always think into in get take did in sign at so the his few and amount Rich are we D got a job up new provider try rebates were the last and and and estimate we we huge our country, year into for surprise. and we great I good we've very we this Medicare hopefully it that so that Medicare the result. also have during do year done that well do now loaded those think pretty 'XX we in take the see largest a don't our and plans then came expectations we it one the account Part is for able years a where a account within signed any But D year, did we that estimate as we getting belt, account up, under at we

to So shape think I good net-net, relative answer we're yes, it but in that, is was the pretty impacted.

And does prescribers. you. color percentage then, Okay, how that percentage offices your to -- decile thank appreciate doctors' I open, apply of on the currently the that does are how roughly top

Tom.

don't gave really out we we let break dociles, we to just it you on. call that but know are number by the you Yes, dociles

decile X. examples down But to can't go I through were a of decile I So tell gave X. you XX to numbers those we X, good as you really

Okay, great. you. Thank

Yes.

remarks. Thank questions you. Chairman call further the Vince to for over would to CEO final now Anido, I more No like and turn

point, at maintain in Jerome. to the as joining usual We And Thanks, products. are net both the is cylinders through US for unit, mentioned, forward -- XXXX, all price our way bit. excited there about the revenues and quite well everybody transparency progress both as very us we XXXX on on will hitting and on us Thank we you year. looking think Obviously, do provide today. exited we we the I we the increase this growing both as helping are a as are

too, that can newest our as progress on the so our We lot as are with result, saw making we future an of about and forward pipeline our awful add using moving entry PRINT products you continue pipeline decisions major a make to technology. to company's

that outside this our expanding for are United other year completing to the our on and territories year, Santen us one our destiny over control We Irish a have we and a partnerships big as did on States has Rocklatan we close will move approved And obviously up you making. we European expect are very especially product and manufacturer in patients a with as of the many now position, Rhopressa strong the Athlone cash ended for the in supplying US as forward, relative it finally later last by getting huge hopefully with to we very, told deal. continue own get on facility deal European reach year we manufacturing in impact and which and we're well Rich a was a this that

So Have tonight. evening. a for I us good again, to joining want thank everybody

call. This conference concludes tonight's

disconnect. now may You