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spk03: Good afternoon and welcome to the Agile Therapeutics Third Quarter 2022 Financial Results Conference Call. Please note that today's event is being recorded. I would now like to turn the conference over to Matt Riley, Head of Investor Relations.
spk04: Hello, everyone, and welcome to today's conference call to discuss our Third Quarter 2022 Financial Results and Corporate Update. Before we start, let me remind you that today's call will include forward-looking statements based on our current expectations, including statements concerning our financial outlook and financing prospects for the future. our outlook for the fourth quarter of 2022, management's expectations for our future financial and operational performance, including our expectations regarding the market growth of Twirla and our operating expenses, our business strategy, our partnership with Afaxys and its ability to promote growth, our product supply agreement with Nurex and its ability to educate patients about Twirla, our connected TV campaign and its ability to promote growth, and our assessment of the combined hormonal contraceptive market generally. among other statements regarding our plans, prospects, and expectations. Such statements represent our judgments as of today, are not promises or guarantees, and may involve risks and uncertainties that may cause actual results to differ from the results discussed in the forward-looking statements. Please refer to our filing to the SEC, which are available through the investor relations section of our website, for information concerning risk factors that may affect the company. We undertake no obligation update for these statements except as required by law. The information on today's call is not intended for promotional purposes and not sufficient for a prescribing decision. Joining me on today's call are Al Altamari, Agile Therapeutics Chairman and Chief Executive Officer, and Amy Walsh, Chief Commercial Officer. Following our prepared remarks, we'll open the call to your questions. I will now turn the call over to Al.
spk05: Thank you very much, Matt, and thank you all for joining us on our call this afternoon. In my recent public comments, you heard me say how excited I was about how we expected our business to grow in the third quarter of 2022. Today, I'm excited to share with you how the financial results for the third quarter of 2022 exceeded even our expectations. I'll provide detail on the growth metrics that have us excited, and then Amy Welsh, our recently appointed Chief Commercial Officer, will provide insights into why we achieved significant growth in the third quarter and how we intend to deliver more positive results in the fourth quarter 2022 and beyond. The third quarter is the quarter we have anticipated as a potential breakout quarter for the company and the brand, and we believe we're starting to see that breakout. Let's review the metrics we are tracking and those we believe are most critical in helping us achieve our goals of growing Forilla and generating positive cash flow. I will start with reviewing our net revenue for the third quarter, which is $3 million. This is an increase of 43% from the quarter of 2022, the largest quarter-over-quarter increase our company has achieved since launch. Compared to the third quarter of 2021, net revenue increased $1.7 million, or 131%. Our net revenue reflects improvements in the following key areas. For all of demand for the third quarter as reported by Symphony was 28,450 cycles, a 35% increase from the second quarter of 2022. Compared to the third quarter of 2021, our total demand for Twirla grew by 18,706 total cycles, or 192%. Twirla factory sale for the third quarter, as reported by our wholesalers, was 33,282 total cycles, a 54% increase from the second quarter of 2022. Compared to the third quarter of 2021, our factory sales for Twirla grew by 22,632 total cycles, or 212%. You may notice a difference in the growth of our demand cycles versus our factory sales. We believe this is a result of the fact that not all the prescription demand in the non-retail channel is reported into third parties like Symphony Health or IQVIA. The demand numbers we received from our wholesalers do include the sales to the non-retail channel, and therefore, we believe that factory sales more closely represent the total demand for Swarala across all the channels. Operating expenses now. As you can see from the accompanying slide, this quarter, we are providing comparisons against the third quarter non-GAAP operating expenses because we had a one-time non-cash charge associated with the transfer of our equipment to Corium in the third quarter, and we believe excluding this charge represents a more useful comparison of the results from the operations in the periods discussed, which prior periods did not include a similar charge. GAAP operating expenses, or OPEX, were $20.3 million in the third quarter of 2022. Non-GAAP operating expenses for the third quarter, which excludes the one-time only non-cash $11.1 million associated with the transfer of the equipment to Corium, were $9.2 million. Non-GAAP OpEx in the third quarter of 2022 represents a 19% decrease from the 11.3 million reported in the second quarter of 2022. Compared to the third quarter of 2021, non-GAAP OPEX decreased by $5.2 million or 36%. Additionally, compared to the first nine months of 2021, we reduced non-GAAP OPEX by $10 million or 22%. In the fourth quarter of 2022, we expect quarterly OPEX to be in the range of 10.5 to 11.5 million. Our stated plan has been to effectively manage expenses while continually growing twirl of sales and demand. And this is the third consecutive quarter we have increased twirl of sales and demand while simultaneously decreasing the company's OPEX, excluding the non-cash one-time charge encouraged this quarter. As you can see on the accompanying slide, which compares year-to-date results for 2022 compared to the first nine months of 2021, we believe that these trends we're seeing tell us that we have a credible business plan in place that is performing. We're excited to share these encouraging numbers with you today, but we're not done. We're working and have been working to identify and implement strategies and exploit opportunities that will continue to further the growth. I'll now turn it over to my colleague, Amy, the primary office architect of this plan, to discuss how we're able to sell more products while maintaining a lower burn and why we believe we can continue this trend into the fourth quarter of 22 and into 23. Over to you, Amy.
spk01: Thank you, Al, and hello to all of you joining us today. As you heard from Al, we are excited about the third quarter performance, but we're not surprised. Our strategic business plan, quite simply, is working. An important contributor to third quarter growth was our partnership with the FAXIS, which drove volume in the non-retail channel. In the second quarter of 2022, 1,404 non-retail cycles of TROLA were purchased, And that number surged 361% in the third quarter to 6,479 non-retail cycles. Again, we are not surprised by this. This is the product of the efforts being made by AFACSIS to penetrate the Planned Parenthood network. In the third quarter, we began to see conversion of Planned Parenthood accounts in California, which drove significant sales and growth for the quarter. And we believe this represents a sustainable customer base for future periods. Not only did we see significant increase in the growth in volume of non-retail channel, our retail channel growth performance was in line with our expectation as well. In the second quarter of 2022, 19,679 retail cycles were dispensed. And in the third quarter of 2022, that number grew 12% to 21,971. Our targeted digital media efforts remain focused on the five states with the strongest curler reimbursement. And as we have said in the past, by focusing on these five states, it is estimated that we can reach 45% of US women between the ages of 18 to 24. In the future, we expect the retail channel to continue to grow. And let me explain why, because it's important that I provide insight into why we are confident that the business plan we can deliver additional upside for in both fourth quarter of 2022 and into 2023. Let's start with what drives growth in our retail business. First, our direct-to-consumer connected TV commercial. We've launched our CTV commercial in mid-September. to coincide with the back-to-school season, which has historically been an active time of the year for women to have birth control conversations with their prescribers. We plan to run the CTV commercial through the end of the year and constantly believe that we can raise trial awareness, trial and adoption, as we believe it did during its initial run that launched in April of 2022. Also, telehealth. Last quarter, we announced our collaboration with female telemedicine leader, Nurex, that is expected to make Twirla an available option to Norex patients. The full launch of this collaboration is planned to occur in the fourth quarter, and we expect to see the impact of Norex on the retail channel in 2023. As a reminder, Norex is the leader in female-focused digital healthcare amongst our target audience and offers patient access to its telehealth platform and expert medical providers that have prescribed contraception to more than 1 million patients. By combining TORLA with Norex's broad reach, we believe this initiative will help further engage patients and increase awareness of and access to TORLA. Additionally, on Norex, we're planning to roll out a shared initiative that'll start with us adding a reference to Norex in the CTV commercial in several of our target states that says TORLA is now available on Norex. Norex is also planning to raise TORLA awareness to its large contraceptive patient network Through its own marketing efforts, this is another example of how we are constantly challenging ourselves and our partners to be as efficient as possible with our dollars while still making every effort to grow the brand. And finally a faxes while we saw 361. Percent non retail growth in the 3rd quarter of 2022. We believe we can continue the momentum from both new and returning orders in the fourth quarter of 2022. There is even more upside to the non-retail channel based on the effects this customer network, which includes Planned Parenthoods and student health centers, and we plan on capturing that. Additionally, we believe we will start to see what we call the spillover effect. This means that as physicians who work at Planned Parenthoods and gain more clinical experience with TROLA, We believe when they go back to their individual and group practices, they'll be more confident prescribing TROLA in those settings too. Before I hand the call back over to Al, I want to reiterate that we are confident in our business plan because it's producing results as demonstrated throughout 2022. And we believe there is even more upside on the table for the future. Al, back to you.
spk05: Thank you, Amy. I'd like to take a moment to provide you some additional context on our financial results for the third quarter before opening it up for Q&A. Our cost of product revenues totaled $1.4 million, which consists of direct and indirect costs relating to manufacturing of Tooele sold during the third quarter of 2022. Compare the $2.7 million in the third quarter of 2021. The decrease reflects the fact that we had no inventory obsolescence reserve charges in the current period, which we had in the third quarter of 2021. Also, as a result of the one-time non-cash $11.1 million charge associated with equipment transfer up to Corium, we saw a $340,000 decrease in CODS related to the depreciation expense, and moving forward, This will be a reduction of approximately $500,000 per quarter in our COGS. In the third quarter, 2022, non-retail sales, primarily associated with the AFACSIS partnership, significantly accelerated. As a reminder, non-retail channels experience higher gross to net discounting compared to the retail channels, and the overall gross to net discounts increased as a percentage of gross revenue in the third quarter to an average of 52% from 44% in the second quarter of 2022, which was in line with our expectations. Gross to net discounts for the third quarter of 2021 averaged approximately 30%. We ended the third quarter of 2022 with $6.1 million cash on hand and, in addition, to the $7.75 million at the market or ATM arrangement. We will continue to evaluate all available options to finance the company and continue to explore opportunities that could potentially accelerate our timeline to generating cash flow positives, including exploring business development opportunities. We closed out the third quarter of 2022 with a net loss of $19.7 million, or 53 cents. per share compared to a net loss of $16.8 million or $7.20 per share for a comparable period in 2021. The one-time non-cash $11.1 million charge associated with the transfer of the equipment to Coriam in the third quarter is reflected in the net loss for the third quarter of 2022. We believe our results for the quarter demonstrates that we are making good progress on achieving our goals of establishing agile in the contraceptive market by growing Swirla and moving closer to generating positive cash flow. We now like to give our covering analyst the opportunity to ask his questions. Operator, you may now open the line for Q&A.
spk03: Ladies and gentlemen, if you have a question or a comment at this time, please press star 1-1 on your touchtone telephone. We'll pause for a moment while we compile our Q&A roster. Our first question comes from Oren Livnet with AC Wainwright. Your line is open.
spk02: Thanks. I have a few questions. Congrats on a pretty impressive revenue jump this quarter. I'd really like to focus first on this non-retail channel, which was clearly the you know, the upside surprise this quarter. You talked about growing going forward. First of all, just near term, you know, I understand it's maybe a lumpier business. So just to clarify, should we expect that to be at least as big in fourth quarter or could that dip before growing again with reorders in early 2023? And can you just put in context that volume you saw this quarter versus the overall opportunity gap?
spk05: the non-retail channel as you see it you know regarding the faxes network size and where that is likely to be taken up and i follow up things so great oren so um so i think your questions were you know what can you expect in the fourth quarter in the non-retail and trying to dimensionalize going forward you know how big the channel is give her uh think of your question so i'll turn it over to amy why don't you say how you feel about the fourth quarter non-retail
spk01: Yeah, thanks for the question, Oren. We expect to continue to grow. While we'll be at the same, I think this quarter we saw a little over 50% growth. I think that we should be around there. We're confident that from the accounts that we won that we're able to show the growth in third quarter. Now that they're going to continue to normalize, we'll see that in the fourth quarter, and we expect to see some new accounts as well. So I think that this is sort of a new story for us, and you're going to see that this should be consistent growth.
spk05: You know, we don't expect it to backslide. I mean, you know, when we first set up an account, we get the benefit of kind of, I don't know, you know, they buy a couple weeks' worth of inventory, not much, really not much. And then we see some pretty consistent growth. So I think Amy's right. I mean, we see it as kind of the new floor. You know, as we add new accounts on, it should grow. You know, but we don't see it, as we sit here today, regressing in any way or going backwards. We're going to keep growing.
spk01: Can we answer all your questions, Oren? I know you had a couple.
spk02: Oh, I got plenty. But just with regards to that opportunity, can you just put into context, we know how many prescriptions at least IQVIA captures, which clearly is not including much, if any, of the non-retail channel. But how big do you characterize that opportunity overall, whether it's in dollars or total cycles? you know, how big is Planned Parenthood as a, you know, cycles per year for patches or contraceptives overall nationwide? What do you see on that channel?
spk05: Yeah, so let me, maybe I'll take a bit of a chance to kind of walk through kind of what we were explaining, demand and non. You know, what happens, Oren, you know, when an account buys off of – this is not peculiar to Agile or Twirla. This is just kind of industry. So if somebody buys drugs, like from one of the big free wholesalers, they get that. The big free wholesalers provide that data at QV and Symphony. It's just that simple. Planned Parenthood and the institutions a lot of times will buy from smaller or regional wholesalers. They've chosen not to sell that data, in effect, or turn that data over to IQV and Symphony. So, you know, what happens, Oren, so depending on where they buy it from, you know, but they turn over the data to us, and we could say, okay, what flowed through, and that's why we could say with confidence our demand. Just to point out what Amy was saying in this quarter, that was basically one big account in California that had multiple Planned Parenthood sites. So that's why we're so bullish on kind of there's a lot more coming. You know, unlike IQV or Symphony where you could look at the defined market, you know, we can't either. You know, we can go back to wholesalers and saying how much business flows through there. And we still think there's a lot of upside orange, you know. And so as we land new accounts, We think they're going to continue to grow. So that was really on the backs of one, we call them a big account, you know, supplemented by a number of smaller ones around the country. We're starting to get business besides Planned Parenthood from some state and county organizations around the country. So in fact, this is really delivering us a lot of volume from different sources. So we're pretty bullish on that. So just to give you an idea, we're nowhere close to peaking out this potential of this market at all. There's a lot more growth ahead of us.
spk02: And you did mention, and I appreciate the incremental growth to net evolution as you grow in that channel. Assuming you do grow a lot more in the non-retail channel, should we assume, first of all, that that growth to net is at least stable, if lower than your growth to net? Is that number predictable? Is that pricing stable? Or does that potentially evolve over time as you grow into more Planned Parenthood or institutional channels?
spk05: Yeah, so Jason Butcher, our chief accounting officer is here. So I'll take a shot at it. It'll correct me if I'm wrong. But this is the quarter that really that the effects became a much bigger part of our mix, if you will. We signaled we knew that was happening. So as a percent of our business, we don't see it being that materially different in the upcoming couple quarters. Maybe we'll lose a couple more points, you know. But this was the big quarter, if you will, kind of adjusting us. And then I think it's kind of then as our commercial business starts kicking in and becoming more important again, I think we grow out of it again in the 23. Is that fair, Jason? Yeah, I think that's all right. So it's maybe a couple more points, you know, Oren, in the short term and then And I think we kind of hit a flattening out, and then I think we grow as our commercial business continues to grow. And some of the good things Amy's working on in the commercial side, as commercial becomes more part of our mix, we grow out of it. But we're not ashamed of it, by the way. I don't want to make it sound like we're not happy. I mean, we always like more profitability or more margin, but we still think this is a solid deliverance of what we gave you this quarter.
spk02: Yeah, sure, of course. And on the Corium transfer, I know you had already projected that non-cash charge. months ago, and we saw it this quarter, and I guess there's some corresponding improvement in reported COGS, which I, if I understood correctly, was just a reduction in depreciation expense that you're booking. Are there any other benefits going forward with regards to the relationship with Corium in terms of maybe actual cash economics or gross margins for this business or other, you
spk05: minimum cash payments or you know generally uh terms going forward that can benefit you yeah a couple couple things the answer is yes or not walk you through it as best i can and jason again i'll see if you can rescue me if i if i go too far on my skis um number one that equipment was purchased well before we went public you know this was funded when both companies were private so the equipment was sitting on our books and the cash has been out the door for you know 10 years you know um So, because it was our equipment, you know, we depreciated. So, yes, you're right. We'll pick up some non-cash, you know, through the margin to run through COGS. But from a practical perspective, we had to carry insurance on that. You know, we had to pay maintenance costs for that, you know, software upgrades. So, you know, it was our equipment. So, you know, we pick up a few bucks there, honestly, which is great. But I think the biggest thing for investors is that, you know, our agreement with Corium predated our launch by a long time, including COVID. And we got off, as we all know, you know, the brands weren't taking off as fast. So we traded, in effect, that asset, you know, for minimums that, you know, we've got a couple years, you know, to grow into this business. And based on what we just did in this quarter, it looks like we're heading there. Like, so we bought our, you know, so we gave a non-cash transfer. Of the equipment, we save a few bucks, you know, cash or maintenance costs, Jason, and a little bit here and there and insurance a little bit through the marginal non cash. But the bigger picture gives us breathing room, you know, and cogs, you know, for a couple of critical years. And then he keeps going. We're back to where we started, which is great. I think I appreciate it.
spk02: And just and lastly, just so I can understand. Where do you stand on debt at the moment remaining? I think if I looked at your press release, maybe did you possibly pay down more than you had previously guided to? Where does that stand, and what obligations do you have remaining?
spk05: We're looking forward to the day that we're leverage-free, even though we've appreciated our partnership with our friends at Perceptive. We paid off $17 million originally, kind of in a bolus situation. And from the proceeds, we raise off our ATM. And then we go pro rata. You know, we pay a monthly charge. So I believe we're up 2.7, 2.6 million or so. We're about 2.6 million, Oren. So we're kind of working it off on a monthly basis. um so we you know we we have a goal to be leverage free you know we think it's important but i think clearing that much leverage off our stack i think was was money well spent uh it just gives us a lot more flexibility in um what we're doing so yeah we're slightly better than you but on the margins we're just paying making a small payment per month all right i appreciate it all good luck uh look forward to watching some scripts and i guess uh
spk02: Let us know if there's a big retail bolus that we're not seeing in IQVIA going forward.
spk05: We'll try, Oren. We'll try. Thanks.
spk03: One moment for our next question. Our next question comes from Naz Rahman with Maxim Group. Your line is open.
spk06: Hey, thanks for taking my question, and congrats on the quarter. I just have a few questions. Now, if you're starting to see larger and larger non-retail orders and faxes in these Planned Parenthood accounts are becoming more used to ordering toilet, have you seen or secured any form of, like, reoccurring or, like, subscription-type orders from these accounts, like, where you, like, ship FMR units every month, every quarter, or something like that?
spk05: Yeah. Yeah, that's a great question. Yeah, it's weekly. It's weekly. This is the gift that keeps giving every week. I mean, it's fantastic. I mean... Yeah, that's what I was mentioning to your colleague, Oren. I mean, you know, they buy a couple weeks in the beginning from us or from our wholesalers. They kind of work it down a little bit, and then we get repeat orders on a weekly basis. It's a nice business model, which actually helps us from a kind of a planning and cash flow point of view. You know, it's a bit of an annuity for us with all these big accounts. Some of the smaller ones aren't quite like that, but the big fish come in like that weekly, weekly.
spk06: Right, and on that point, like we now know wholesalers don't really carry much inventory, but do these accounts carry some inventory or I guess like larger amounts of inventory than general wholesalers on a relative basis, I guess?
spk05: Yeah. I'll take a shot now, then I'll turn it over to Amy. I think they're on a just in time, just about. I mean, they don't carry much. Is that fair?
spk01: Yeah, no, I would agree. I think that they are bringing the orders in. I'm speaking more not for the larger ones. We're seeing it weekly, so they're moving it.
spk00: Yeah.
spk01: They're moving it. But some of these accounts have 38 locations, 9 locations, 15 locations. So, you know, it's moving pretty fast. They don't hold a lot.
spk05: No, we don't think that at any one point. I don't know. I'll speculate, you know, that, you know, maybe there's a couple weeks, maybe at the most, you know, I think in the whole channel, you know. So, Jason, I think you believe it's the maximum month? Yeah, maximum a month. Yeah, I mean, we're looking at very little bit of inventory exposure at all. It turns. Got it. It turns. We like that.
spk06: So you guys commented on the Planned Parenthood penetration in California. Could you sort of give more color on that? Like, how many of the target Planned Parenthood counts in California have you reached? Or I guess, like, how much is there left to reach?
spk05: I think I'll take a shot, Amy. Like, I think from what you showed me, like, of the top... Five Planned Parenthoods in the country, four of them in California, I believe. We've got one ordering at a pretty good cliff, and we think we're going to get the rest of the fall pretty quickly. That's nationwide. Four of the five are sitting in California. I mean, it's just remarkable how big these are. And I think that's the reason, besides California being our biggest state, they seem to be organized by affiliates. So, in other words, they group purchase. You know, the number of affiliates buy from one buyer, in fact. So, in other smaller plant variants on the East Coast, they buy one at a time from us. Is that fair?
spk01: Yeah, you got it.
spk05: Does that answer your question?
spk06: Yeah, it does. It does. And in these non-retail channels, what kind of feedback have you been getting from prescribers And has that been, like, any different than any feedback you got from, like, retail or private practice physicians?
spk05: I'll tell you, this is stellar.
spk01: Yeah, I was going to say, it's not different at all. It's been very, very positive. In fact, one of our, the larger account that we've been talking about, you know, one of the people from that specific Planned Parenthood has been so happy with Twirla that she's been talking to a lot of her colleagues throughout the state and to a couple of the local states and saying, and trying to champion the brand because she's just been so impressed. So that's been very, very good. And I talked a little bit about strategic spillover effect that we're seeing, you know, it's early days. But, you know, non-retail is a bridge for us. And what we need to be able to do is see that it's spilling over into the retail. And we're starting to see that that's happening as well. So as OBs are sort of donating or generously giving their time to a local Planned Parenthood, we're also seeing in California that it's lifting our growth in the state overall.
spk05: We draw little 10-mile circles around these places and saying, okay, You know, there are markets sharing those circles going up faster than those outside the circles. And the answer, very early days, is yes. So these physicians take that love and feeling back into their personal clinics. And so that's where we think, you know, going forward, that's where we think the retail is going to kick in. You know, this spillover effect adds directly into our retail channel, which, again, Because Oren asked me about gross and net, which is a different margin, which is great. So this is where one and one equals three for us. You know, that's the synergy between. So while we talk about them as being two different channels, we think they overlap and they kind of play off each other.
spk00: Yeah.
spk06: Right. Also, in terms of writing, though, has the non-retail channel or the prescribing non-retail channel had an easier or more difficult time writing prescribing scripts? I know you guys have gotten quite a bit of spoilers, guys. quite a bit of pushback over time. Has that process, like, any more difficult or easier in these non-metall channels?
spk05: Shockingly easy. You know, remember, this is when a woman goes to Planned Parenthood, there's three basic things. A lot of times they're cash paying or they get the drug at very, very cheap prices, underwritten by Planned Parenthood, so there's no friction there. So that's the bulk of their scripts. Another phenomenon is Medi-Cal. They're Medicaid scripts that flow through there, and we're on a preferred position, as you remember, in California. And then to much, much, much less, they're commercial plans. They run through commercial plans. And we've got pretty good coverage in California. That's why Amy's put so much effort in California. So to answer your question, we get virtually no friction, none that I'm aware about at all. versus, you know, in the retail channel where we have insurance companies and their PBMs intervening. There's nothing like that there, which that's why we love this channel because it just, once they make a decision to take our drug on as one of their preferred drugs, units fly. They fly in us, which is great. No friction.
spk06: That's great. Can I ask one last question?
spk00: Yeah, please go ahead.
spk06: Just one last question. On the Nurex partnership, so you commented that you're going to advertise Nurex, available Nurex in your CTV campaign, but is Nurex also planning their own initiative to promote the availability of Perla? And if they are, when does the initiative start?
spk05: Go ahead, Amy.
spk01: Yes, they are. So the fast answer is yes. We're doing it on our CTV ads, and they're doing a mix. They have some digital promotion going on, banner ads, Facebook marketplace, Google ads. And also they have a customer relationship program that's pretty impressive for their existing customers. And so they're going to make sure that their existing customer base is educated about Twirla. And then we offer everything from our copay card coupon and just awareness through there. So, yeah. And what we like about it is, you know, we're sort of helping each other without putting any kind of exchange of expenses. The more I do, the more they're able to do. I think I said this too already, but, you know, that's one million of our patients that they have right there that we have a captive audience with. So, yeah, it's a true co-promote where we're helping each other through marketing efforts on both sides.
spk05: What I love about what Amy's done is two people are trying to help each other, right? There's no money changing hands. Amy's saying, I'm giving you X amount of dollars of advertising, and they say, we'll give you Y amount in return for it. and if one and one equals you know they get a new customer we get new customers and vice versa so we think it's a pretty cool idea and it we should just emphasize it's just getting started you know so really we we expect this to be benefiting later in the year and into 23 but it's a really cooperative relationship we like these folks a lot and um it's not often you get a chance to work with somebody if their customers are your customers it's we almost 90 overlap with them something like that and over a million patients with that are kind of for grafts and contraception for us.
spk06: All right. That definitely answers my question. And thanks for taking my questions. And once again, congrats on the quarter.
spk03: Thanks, Matt. Thank you.
spk06: Appreciate it.
spk03: And I'm not showing any further questions this time. I'd like to turn the call back over to Al for any closing remarks.
spk05: Yeah, well, thanks for the questions from Naz and Oren. Hopefully you can feel our excitement. This has been a breakout quarter. You know, we've been expecting, and it really, you know, we started giving some previews of this early in the quarter, but quite frankly, it's better than we expected. So we ended the quarter with really great growth. We delivered 43% in net revenue, but we still work with it. We're still going to keep growing in the spirit of some of the questions. I mean, this is by no means – You know, the end, it's really the beginning of an acceleration we see in our business. We want more growth in the fourth quarter and, you know, and a good launching off point for 2023. You know, the number one objective for the company, you know, continues to be we want to generate positive cash flow for having this business. We're exploring different ways to do that, you know, both organically in our business model, as you've heard Amy describe, but also looking at business development and saying can we add another product or, you know, another offering in our bag to leverage our cost even more. You know, we come to work to control what we can control. We can control the demand. We can control the factory sales and we can manage our OPEX. So that's the one, two, threes that we're focused on. And everything else in the external environment, we try to be mindful of it. But at this point, we control what we can do. And what we can do best is execute on our business plan that Amy's laid out for us. So we're excited about this quarter. We're looking forward to next quarter and giving even more, hopefully more, you know, good news as we continue to grow the business. So thank you all for joining us tonight.
spk03: Ladies and gentlemen, this does conclude today's presentation. You may now disconnect and have a wonderful day.
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