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spk05: Good afternoon, and welcome to Evelis' third quarter 2023 earnings conference call. At this time, all participants are on a listen-only mode. A question-and-answer session will follow the prepared remarks. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Ned Mitchell from Investor Relations. Ned?
spk08: Thank you, Operator, and welcome to everyone joining us on today's call. With me today are David Modazzetti, President and Chief Executive Officer, Rui Aguilar, Chief Medical Officer and Head of R&D, and Sandra Beaver, Chief Financial Officer. Our prepared remarks today will include forward-looking statements within the meaning of United States securities laws, and management may make additional forward-looking statements in response to your questions. Forward-looking statements are based on management's current assumptions and expectations of future events and trends which may affect the company's business, strategy, operations, or financial performance. A detailed discussion of the risks and uncertainties that the company faces is contained in its annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K. Actual results may differ materially from those expressed in or implied by the forward-looking statements. The company undertakes no obligation to update or review any estimate, projection, or forward-looking statement. Additionally, today's discussion will include non-GAAP financial measures, which should be considered in addition to and not as a substitute for or in isolation from our GAAP results. A reconciliation of GAAPs and non-GAAP results may be found in our earnings release, which was furnished with our Form 8-K filed today with the SEC. on our investor relations website at ebliss.com. Following the conclusion of today's call, a replay will be available on our website at ebliss.com. With that, I'll turn the call over to David.
spk10: Thank you, Ned. We are very pleased to see the increasing momentum of our business driven by strong execution, which has translated into record quarterly revenue and record low cash burn in what is historically the seasonally lowest for the injectable category. Our focus has been consistent and intentional. We're building a beauty brand for the younger generation, which represents the fastest-growing segment of the neurotoxin market. This differentiated approach to Market Givaud has resulted in the highest quarterly revenue in the company's history. Our reported revenue of $50 million reflects 48% growth year-over-year and represents a sequential increase over the second quarter. We've also maintained a strong focus on operating expenses, and I'm pleased to report that our operating cash burn was at an all-time low of $0.9 million this quarter, putting us on a pathway to profitability with our existing liquidity. Our success in the quarter demonstrates the strength of our brand-building efforts and the resilience of the toxin market. which remains healthy as consumers continue to prioritize their spend on beauty. Toxins are a great value for consumers due to the consistency in outcomes and affordability of the treatment. We believe Javeau is well positioned as a beauty brand in this market and will continue to capture this increasing demand. The success of our consumer-centric strategy was demonstrated during the quarter in the number of total consumer loyalty redemptions, which eclipsed $1.2 million since the program was introduced in 2020. In the quarter, we reached an all-time high of $149,000 redemption, demonstrating sustained and strong brand loyalty. On the market penetration side, we added more than 650 new accounts in the quarter, bringing our total purchasing customer count to nearly 11,600. As a reminder, With over 30,000 aesthetic customers in the United States, we continue to have a significant opportunity to further expand our market penetration over the coming years. In our international operations, Nuceva is now commercial in four major countries. I'm proud of the progress we've made with a small and nimble team. This week, we celebrated one year since Nuceva was first launched in Great Britain. Earlier this year, we launched in Germany and Austria, And most recently, we launched in Italy, which is also a very strong start. Europe represents an estimated high single-digit millions in sales in 2023 and is key to our overall long-term growth strategy. The combination of continued strength and execution and increasing momentum gives us the confidence to raise, again, our full year 2023 revenue guidance to between 194 and $198 million. This updated guidance equates to over 30% growth for the fiscal year, and it is magnitudes greater than the estimated category growth rate. Looking beyond 2023, we remain highly confident in our 2028 sales goal of $700 million, which is driven by the strong market opportunity of Jabot in the United States, the international expansion of Nuciva, and the introduction of the Evelisse line of fillers in the U.S. beginning in 2025. Evelisse continues to differentiate itself and outpace the growth of our competitors, leading with a strong beauty brand, a unique strategy targeting millennials, and a cash-paid business model that rewards customer loyalty. Our platform for growth continues to scale with Chabot and Uciva, experiencing tremendous growth as evidenced by our third quarter results. Moving to our R&D efforts, I would like to provide an update on several of our pipeline assets. Today, we will provide an update on the first two expected injectable products within the Evelisse line of fillers. Rui will also review the final Phase 2 Extra Strengths Revolve results. Starting with Evelisse, we have continued to make progress over the past quarter and are pleased to provide an update on our filing for the first two Evelisse fillers. which we expect to be completed by summer 2024. This keeps us on track to launch Evelisse in the U.S. in 2025. On Monday, we announced the results from the Phase II clinical study evaluating the extra-strength 40-unit dose for extended duration of Juveau, the only neurotoxin dedicated exclusively to aesthetics. The final data presented this past weekend in Chicago at the American Society for Dermalogic Surgery demonstrated 26 weeks or six months of performance with the extra strength dose of 40 units. The final phase two outcomes were consistent with interim findings and reinforced that longer lasting effects, particularly up to 26 weeks, can be achieved with the extra strength 40 unit formulation of Juvo. I would now like to turn the call over to Rui Avalar, who will walk us through the findings. Thank you.
spk09: As David mentioned, I'd like to share with you the final top-line results of the Jabot extra-strength study that were presented this past Friday at ASDS in Chicago. Slide 2. The study looked at safety and duration of the effect when the Jabot dose was doubled and hyperconcentrated. it took a patient after single treatment to return back to their baseline glabellar wrinkles at maximum frown as assessed by the investigator. This is a metric that's been used by others and has the advantage of being independent of a scale when looking across studies. Slide three. The study was carried out at these five clinical sites. Slide four. The design was double-blind, randomized, with two active controls, 20 units of Jibo and 20 units of Botox on label. The duration of the trial was one year or when the patient returned back to their baseline. As with all registration trials, patients had to be rated as either moderate or severe on the four-point glabellar line scale to be eligible for the study. Slide five. The patient demographics were typical for this type of study, primarily women in their late 40s. Slide six. When looking at the baseline glabellar severity, it is notable that most of the subjects were rated as severe, both by the investigator and the patients themselves. Slide seven. With regards to safety, there were 35 adverse events in total. and these occurred in 26 patients. All adverse events includes events that are both related and unrelated to the study drug, whereas drug-related adverse events refer to events caused by the drug. There is no difference between the three groups. Below the table, the actual drug-related events have been itemized, with headaches being the most common, and there was one case of isitosis in the 40-unit Chabot arm. Slide eight. In terms of adverse event severity, 88.9% were rated as mild, with no difference between the groups, and importantly, there was no serious adverse events. Nine. The primary objective of the study was to look at how long it took a patient to return back to their baseline, irrespective of their glabellar line severity, as assessed by the investigator. The 40-unit GEVO Extra Strength Kaplan-Meier plot shows 26 weeks, or six months, to return to their baseline, and the controls lasted 21 weeks, consistent with previous studies. The hazard ratios and p-values also provided and demonstrated statistical superiority for the 40-unit arm compared to the 20-unit control arms. Slide 10. A one-point improvement on the glabellar line scale, which is, by definition, a clinically meaningful response, demonstrated the same duration results. Slide 11. As an alternative, a way to assess treatment effects is to use the global aesthetic improvement scale. By investigator assessment, the duration was 26.3 weeks or six months. Again, GIVO extra strength was statistically superior to both controls. Well, here we're looking at responder rates over time. To be a responder, one had to have none or mild glabellar lines. Looking at the graph, one can see the percentage of responders over time and that in the 40-unit arm, there was always more responders and it lasted longer compared to the controls. There were no in-office visits between day 2 and day 30 to decrease the burden on patient visits and avoid dropouts. Emphasis was on monthly visits. This contributed to a high study completion rate of 94.7%. Slide 13. When using the responder definition of non- or mild labeller lines, it's important to understand the implications. Having no glabellar lines or mild ones is clinically meaningful measures since in real life, these patients do not require repeat treatment. However, when using this as a responder definition, it's important to understand the baseline severity between the groups since it can impact the results. If a group consists mostly severes before treatment, then they only need a one-point improvement to become a responder. In contrast, A group that has mostly severes, sorry, if a group consists mostly of moderates before the treatment, they only need a one-point improvement. In contrast, if a group mostly severes, we'd need a two-point improvement to become a responder. Slide 14. We're frequently asked how 40 units of Jevo compares to 40 units of Daxi. While a direct comparison requires a head-to-head study, Here's an attempt to overlay the data from the respective clinical trials and using the same measurements. In this combined graph, we have 40-unit Chabot non- or mild results as assessed by both the investigator and subject compared to the 40-unit Daxi-Sakura 1 results as they appear in their FDA-approved label. Note that due to the baseline characteristics in each study, most of the DAXify patients only required a one-point improvement to become a responder. In contrast, most of the Jevo patients required a two-point improvement. The results also seem to suggest that Jevo lasts longer over time. Slide 15. Comparing the Jevo 40-inits to the DAXify 40-init results from Sakura 2, as published in their FDA label, again, demonstrates a similar pattern even though most of the GIBO patients required a two-point improvement. Sixteen, the most stringent measure of efficacy is the two-point composite score, which is why the FDA mandates it as the primary endpoint in all toxin pivotal studies. Using this as a responder definition, success is defined as achieving a grade of none or mild and a two-grade improvement from the baseline and both the investigator and the subject agreeing this happened independently and concurrently. This two-point composite endpoint represents the highest bar, and the FDA also suggests it should be used to look at duration. Slide 17. In this last graph, we compare the two-point composite scores for JAVO 40 units to those of DAXify forward units from Sucura 1 and Sucura 2 as published in their FDA label. The GVO responder rates are higher at all measured time points, and the overlay of the graph also suggests the duration is longer for GVO. Slide 18. In summary, extra-strength GVO demonstrated 26 weeks of duration, or six months, over multiple metrics, and there seemed to be no difference in safety compared to active controls. with 88.9% of adverse events being rated as mild and no serious drug-related adverse events. With that, I'll turn it back to you, David. Thanks, Rory.
spk10: This data set conclusively puts to rest the relative contribution of dose to duration. Going into the Phase II studies, we were expecting to see 24 weeks of longevity with Chabot in line with other 40-unit doses of toxin, and these final results exceeded our expectations with most time points achieving 26 weeks. This is a successful outcome that gives Evelisse the ability to offer treatment options for customers and their patients, using the same original strength Chabot vial, simply by changing how the product is reconstituted. On the filler side, we remain excited about the differentiation of the Evelisse portfolio and its potential to become one of the leading HA fillers in the U.S. Our cash pay focused platform was designed for scale and there are tremendous synergies we can achieve by leveraging our seasoned sales force and our rapidly growing customer loyalty program to launch this innovative new technology alongside our flagship, Juba. We continue to believe the combination of a highly competitive filler line and our growing customer base provides a unique opportunity to build a durable brand that adds tremendous value to Evelis and our shareholders. Now I'll turn it over to Sandra who will cover the financials.
spk03: Thank you, David. Our strong growth this quarter demonstrates our success and execution of our long-term strategy to become a top brand in the growing performance beauty market. I'd like to congratulate the Evelis team for a record quarter of above-market overall performance, including record highs in sales and our key metrics, and for continued focus on diligent operating expense and cash management. Global net revenues for the third quarter were $50 million, up 48% compared to net revenue in the third quarter of 2022, with U.S. sales comprising more than 95% of the total revenue, driven primarily by higher volumes. We continue to experience strong pricing in the U.S., with our average selling price in 2023 modestly increasing compared to the same period last year. while our customer reorder rate remains above 70%. Our reported gross margin for the third quarter was 67.7%, and our adjusted gross margin, which excludes the amortization of intangibles, was 69.1%, and in line with our guidance of 68 to 71%. Operating expenses declined sequentially in Q3 as compared to Q2. Our GAAP operating expenses for the third quarter were $63.4 million compared to $64.5 million in the second quarter. Non-GAAP operating expenses for the third quarter were $40.3 million compared to $42.7 million in the prior quarter. As a reminder, non-GAAP operating expenses exclude product cost of sales. Reported selling general and administrative expenses for the third quarter were $43.3 million compared to $41.2 million recorded in the second quarter, with the increase mainly attributable to higher commercial costs. This quarter, SG&A expenses includes $4.3 million of non-cash stock-based compensation compared to $4 million in the second quarter. Our non-GAAP loss from operations in the third quarter was $5.7 million compared to $8 million reported in the second quarter. Non-GAAP operating losses declined $2.2 million as compared to Q2 and $7.5 million as compared to Q3 2022, which represents a 57% year-over-year improvement, continuing our trend toward profitability. Consistent with our initial 2023 guidance, we continue to expect to achieve non-GAAP operating profitability in the fourth quarter, excluding our investments related to Evelisse. Both non-GAAP operating expenses and non-GAAP loss from operations exclude stock-based compensation expense, revaluation of the contingent royalty obligation, and depreciation and amortization. Turning to the balance sheet. We ended the third quarter with $38.7 million in cash compared to $41.7 million at June 30, 2023. During the quarter, we had a record low in quarterly cash use of $3 million. In the quarter, net cash used for operating activities was $0.9 million. Net cash used in the third quarter of 2023 continued its sequential quarterly decline throughout 2023, further demonstrating our continued progress towards cash flow break-even. Before we turn to Q&A, I would like to summarize our 2023 guidance. Based on our strong year-to-day performance and confidence in the resilient toxin market, We now expect total net revenues for the full year of $194 to $198 million. This equates to over 30% growth for the fiscal year. An adjusted gross margin in the range of 68 to 71%, unchanged from our prior guidance. Full year 2023 non-GAAP operating expenses between $153 and $158 million, also unchanged from prior guidance. Other modeling assumptions for 2023 include quarterly interest expense of $3.5 million and full-year weighted average shares outstanding of approximately $57 million. Looking beyond 2023, we continue to target total revenue of $700 million in 2028, driven by continued growth and share gains in our neurotoxin franchise in the U.S. and international markets, along with a growing contribution from our Evelisse line of fillers that begins in 2025. This equates to a compounded annual growth rate of 29% on a total addressable market that is 70% greater with the addition of a filler product line. Now, let me turn the call back to the operator to begin Q&A.
spk05: Thank you. At this time, we will be conducting a question and answer session. If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. And our first question comes from the line of Louise Chen with Cantor Fitzgerald. Please proceed with your question.
spk02: Hi, congratulations on the very strong quarter and execution. Thanks for taking my questions here. So first question I wanted to ask you is what gives you confidence that this rate of growth that you're seeing is sustainable? And is there any seasonality for the fourth quarter? And then the second question is next steps and how you're thinking about your vote for the units and how important this is to your product portfolio. Thank you.
spk10: Louis, thanks for the questions. Starting with the fourth quarter, as you know, the fourth quarter is generally the strongest quarter of the year in terms of procedural demand. And as you see with the guidance range we've provided, we expect the fourth quarter to be another all-time high in terms of revenue. And so we do believe that the growth rates that we've demonstrated year to date will continue to hold. And our guidance range reflects that with over 30% growth year on year for the quarter. On the second question around the GVO 40-unit dose and next steps, I'm going to ask Rue to take that.
spk09: So the main objective, of course, will be to publish that. And as we ask health care providers what we should do next, one thing that's coming out loud and clear is, given that there is not a longer-duration label out there, people are basically saying do not proceed to a Phase 3. There's no need. So, the main emphasis will be on publishing the phase two studies, and then we'll continue to watch how the doubling the dose market evolves, and then decide what we do next.
spk06: Thank you.
spk05: Our next question comes from the line of Annabel Samimi with Stifel. Please proceed with your question.
spk11: Hi. Thanks for taking my questions, and congratulations from me on a good quarter. So just big picture, I guess for the last few years it appears the market has been still relatively underpenetrated, and I guess Botox was always the product as the market leader who was setting the growth rate. But obviously with your growth rate and now with another competitor coming in, it does seem that they are having an impact on from new products. So how do you see, how are these dynamics actually really shifting in the marketplace? And are you still riding a wave of growing market? Or are you actually growing that share now? And what may that share be? So that's my first question.
spk10: Great. Annabel, thanks for the question. Look, the market has remained highly underpenetrated, and I think as you saw in the third quarter, the market leader posted solid growth, and you saw that we also showed very strong performance as well. We do believe some of the dynamics at play here are first starting with our focus with Chabot as a beauty brand. That is how this younger generation of consumers perceive this procedure, and we've positioned ourselves well there. We've held a number of advisory board meetings over the last quarter, and what we consistently hear back, even from non-users of Chaveau that are interested in bringing on our product into their practice, is that they view us as a product for the younger generation. And that younger generation is the fastest growing segment of the market. And we believe that gives us really sustainable growth from a consumer standpoint into the future. Now, in addition to that, in the market, you see that we're in just over 11,000 accounts And the market has over 30,000 customers. So we benefit from having continued market penetration opportunities of opening up new customers as well. And then, of course, both of these two ideas do go hand in hand. As we continue to drive more younger consumers into the practice, it opens more opportunities. new accounts for us that have an interest in partnering with us. And our cash pay positioning gives us the ability to really capitalize on that opportunity in a way that positions us as that beauty brand that helps grow this segment of a practice. And so I think it's hard to isolate any one variable, but I think collectively the positioning is driving that continued growth. And you're seeing that reflected each quarter where you've seen our growth continue to persist and accelerate. We've been the fastest growing neurotoxin on the market now for two consecutive years, and this year continues to be very strong as well. And we do think that it's all reflected in our positioning and cash pay strategies.
spk11: And do you dare to venture what a market share could be at this point?
spk10: As far as market share, last quarter we estimated that we had captured about 11% of the market. We don't expect to clip up a full share point every quarter. Clearly we gained share in the third quarter, and so I think we're approaching a share point higher, and we'll certainly give you an update when we feel confident that we've eclipsed that 11 share point.
spk11: Okay, and then one other question. You know, to what extent do you think, I mean, obviously you guys have done a really good job penetrating the accounts. To what extent do you think Evelisse is going to boost additional account penetration? How many accounts do you think are out there who do not entertain the use of Jouveau just because you don't have, I guess, a portfolio of products to offer them?
spk10: You know, we believe that with Chabot alone, we can continue to expand our market penetration. I think when you look back over the last three years, our penetration of new accounts has accelerated over the last 12 months relative to the 12 months prior. So we believe that accounts are more interested in bringing us on today than we were in a position a year or two years prior. So Avalis is certainly a catalyst. in the sense that it becomes more interesting to partner with us on a broader portfolio. But we do believe that we have excellent runway of existing accounts with just Jeveaux. And Evelisse gives us an opportunity to offer our existing customer base, which now exceeds 11,000 customers, the opportunity to expand their portfolio offering with us, which is something that we've consistently heard from our customers, is that they like our cash pay positioning. They like our investment. in advertising that happens through co-branded media and to the extent that we could extend that offering to the filler line that would give them more reasons to want to partner with us across their portfolio of products. So for that reason, we're very optimistic about what Evelisse could bring when we introduce it to the market. Of course, we still have some time until we launch Evelisse in 2025. Until then, we see just a tremendous amount of runway for Jabot and continued market opportunity.
spk11: Great. Thanks for the callers.
spk05: Our next question comes from the line of Mark Goodman with SVB Securities. Please proceed with your question.
spk06: David, what is your sense that the market grew this past quarter? Do you think it was high single digits? I mean, it just seemed obviously, you know, if Botox grew 5%, right? I mean, and then secondly, what are your thoughts about revance and the dynamics of what they've done and their metrics so far? Thanks.
spk10: Hey, Mark. We were really pleased to see that the third quarter reflected a really healthy rebound in terms of procedural volume. It's hard to pin the exact number, but we do believe this is a high single-digit growth market coming into this year, and I think overall our views are relatively intact, and Q3 was certainly an acceleration of market growth from the front half of the year, which is positive, and we're assuming that carries through into the fourth quarter. We have no reason to believe that it wouldn't, and just Keep in mind that that's been the traditional growth rate for this market over many years. As far as the market dynamics of competitors, we continue to maintain our focus on our brand positioning and establishing this brand in the market as a unique beauty product. And I think that's differentiated us. from the existing competitive set that competes on similar dynamics that other drug companies do. And I think we'll continue to do that. I don't have a view to share on how other companies that are launching are coming along. I think we'll get a view from that when they report their earnings. Thanks.
spk05: Our next question comes from the line of Doug Tsao with AC Wainwright. Please proceed with your question.
spk07: Hi, good afternoon, and congrats on the progress. Just on the extra strength, I'm just curious, do you have a thought or perspective on the amount of sort of extended duration? Is the function just more toxin versus the hyperconcentration? Is the hyperconcentration important, or is it just simply just more toxin?
spk09: Thanks, Doug. Dr. John Joseph was the first one to kind of introduce that concept of increasing the concentration and getting a little bit of duration. So there may be a contributor there. The other thing that's kind of interesting is a few years ago, Botox also demonstrated when they did a double the dose, they actually hyperconcentrated almost to the same level as everyone else. And when they did that on the 20-unit arm, they noticed that even the 20-unit arm performed a little bit better than the baseline. So the bottom line, what we're seeing is certainly doubling the dose gives you longer duration. It's not linear, though, and that comment applies to all the toxins that we've seen kind of come out. And it looks like concentrating may actually contribute a little bit, but we've seen that used by others also.
spk07: Do you... Is sort of getting this hyperconcentration something that an injector can accomplish themselves if they kind of know the right recipe?
spk09: That's exactly right. Today, you know, you have a vial. There's a certain number of units in there, and it's dry. And then you can control the concentration by adding the diluent into the vial, how much you put in, and then you can determine the concentrations. And if we look at people today who inject it, you take a vial of 100 units of a few different products, you may concentrate it with one milliliter if diluent, two, two and a half, or up to five. So you look at a spectrum. So even today, in common practice, you'll see some people do hyperconcentrate a little bit. And then in the context of Shivo Extra Strength, for instance, that's right. It would be effectively in the publication. You can get a 100-unit file, and then you can reconstitute it as you read about it in the publications, and then create your own 40 units hyperconcentrated at your office.
spk07: Okay, great. Thank you.
spk05: Our next question comes from the line of Nirvan Tai with BNP Paribas. Please proceed with your questions.
spk04: Hi, thanks for – good afternoon. Thanks for taking my questions. First one, a follow-up on Dexify, if you have seen an impact at all from the change in pricing strategies since September 1st during and after the quarter. And then I was also curious about whether you have conducted any promotional activities in the quarter, and will you conduct any versus November Batox Day? Thank you.
spk10: Hi, Navon. As it relates to you know, the newest competitor to actually find the market. I think you've seen the guidance we gave at the beginning of the year when we were aware of their launch and we got it to a very healthy performance. We've since guided up a few times, so I think it gives you a sense for our confidence for how Jabot is performing. despite the entrance of a new competitor. And, of course, this is a competitive market, but we've always believed that the bigger market opportunity is around the consumer and targeting this younger generation. I think our focus has been consistent and unwavering over the last several years. What you're seeing reflected in the results is just that. It has nothing to do with the competitive environment as much as it does our market positioning. and how our customers are responding to that and voting for Gervais as an increasing share of their practice. So we feel great about that. As it relates to promotions in the market, in the third quarter, there wasn't anything particularly unique about the quarter. That was worth noting. In the fourth quarter, that is the peak season, the holidays for the injectable category. So you tend to see promotions that occur from all of the competitors. We're certainly a part of that as well. We have a program that we've been doing for years. consecutive years now called 11's Day, which is currently in market now. And it's something, as I said, we've done each and every year. So it's been a successful program for us. It evolves in different ways. But in the end, there's a lot of consumers coming into this market, and this 11's Day program is designed to capture a larger share of that market segment.
spk04: That's very helpful. Thank you.
spk05: And our next question comes from the line of Uli here with Mizoho Securities. Please proceed with your question.
spk01: Hey, guys. Thanks for taking my questions. I guess the first question is, David, are you kind of saying that the fourth quarter was perhaps the growth was driven more by the market growth, or did you do something that's different, I guess, to have this, you know, to have... a quarter where, I guess, seasonally it would be down, but it's not. And I guess my second question is, what do you think of the short-acting toxin that Allergan, I guess, reported some data for the bond TE? Thanks.
spk10: Sure. I think... On the third quarter, I think what we said is we saw the overall procedural volume tick positively year on year. I think we went into the quarter with that assumption that it would. I believe the leading market player had guided to the same thing. So that was our assumption, and we're pleased that it played out. We did not expect our business to grow sequentially. We had anticipated, as we have with prior years, that you generally see a slight step down in the third quarter and then a step back up in the fourth. So we were pleasantly surprised by the increase in demand for Jebel in the third quarter, and so we attribute that to continued market penetration and share gains in more than we do to the actual procedural volume increase in the quarter that we had already factored for. Moving on to the additional toxins that are coming in the market, I don't have a lot of color to give you on the Bonte. I'm curious to better understand how AbbVie would position. a shorter acting toxin. I think the streets now have visibility to what longer acting could be, perhaps what shorter acting might be. In the end, again, I think we're well positioned here. We have the only 900 kilodalt molecule, aside from the market leader, in the category. We have a brand that's positioned against the younger generation, which is the fastest-growing segment in this market, and a cash pay positioning that enables us to help grow the top line for those practices while being conscientious of the fact that these practices want to continue to drive profitability into the future as they see some of the higher-ticket procedures start to see some slowing. So I think overall we're very well positioned here, regardless of the competitive sets that may be coming down the road, but I'm certainly curious to hear how that product gets positioned.
spk01: Thank you.
spk05: Thank you for all of your questions. At this time, I would like to turn the call back over to David Motazedi, President and Chief Executive Officer for Closing Comments. David?
spk10: Thank you, Operator. In closing, the success of our long-term strategy is evident in the strong results of the third quarter and clearly demonstrates the continued above-market progress the Evelis team is achieving in driving brand awareness and capturing market share. With record quarterly revenue and all-time highs in key metrics, we continue to build momentum, outpacing both the underlying growth of our market as well as the competition. The final results of our extra strength study this past week and the addition of the Evelisse line of dermal fillers beginning in 2025 underline our continuing efforts to build a strong and growing beauty brand. With a healthy injectable market backdrop and a 70% expansion in our total addressable market directly attributable to the addition of a dermal filler line, we remain confident in our $700 million revenue target for 2028, which represents a 29% revenue CAGR. We are fully funded to achieve that growth, and we have an experienced team in place to execute our growth plans. This category is in transition from pharma to beauty, from an older generation of users to the millennials, and our cash pay focus enables us to uniquely partner with practices through first-in-class programs like our co-branded media, which help accelerate practice growth and profitability. With our business model focused on the cash pay market, we have built a moat from our competitors. This is a unique and sustainable competitive advantage for Avalos, the benefits of which are evident in our pace of growth and strong financial results. Note, we will be participating at the Stiefel Conference in New York on November 14th and 15th and the Evercore Healthcare Conference in Miami on November 28th. We look forward to seeing you there. Thank you all for joining us today.
spk05: We've reached the end of our call. You may now disconnect your lines.
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