Revance Therapeutics, Inc.

Good day, everyone. Welcome to RELAND's Therapeutic Second Quarter 2021 Financial Results and Corporate Update Conference Call. At this time, all participants are in a listen-only mode. Following the management's prepared remarks, we will hold a Q&A session. To ensure that we will have ample time to address everyone's questions during Q&A, we would like to ask for a limit of one question and one follow-up question per person. To ask a question during that time, please press star followed by one on your touchtone phone. If anyone has difficulty hearing the conference call, please press star zero for operator assistance. As a reminder, this call is being recorded today, August 5, 2021. I would now like to turn the conference over to Jessica Serra, Head of Investor Relations at ESG for Revents. Please go ahead.

Thank you, Anna. Joining us on the call today is President and Chief Executive Officer Mark Foley, Chief Financial Officer Toby Schulte, Chief Operating Officer and President of R&D and Product Operations, Dr. Abhay Joshi, Chief Commercial Officer, Aesthetics and Therapeutics, Justice Suits, and President of Innovation and Technology, Operating Banking. During the conference call, management will make forward-looking statements. essential benefits of our drug product candidates and technologies, the launch of the next generation FinTech platform, the timing of any potential approval of that for injection, 2021 guidance, expected cash runway of the . These forward-looking statements are based on the company's current expectations and inherently involve significant risks and uncertainties. Our actual results and the time used could differ materially from the anticipated as a result of these risks. Also in today's call, we will present both GAAP and non-GAAP financial measures, a reconciliation of non-GAAP and GAAP measures included in our earnings rules. For that, I will turn the call over to Mark Holder. Mark?

Thank you, Jessica. Good afternoon, everyone, and thank you for joining our second quarter 2021 financial results conference call. We're very pleased to report strong second quarter results, highlighted by $17 million in RHA revenue, over 2,000 aesthetic accounts shared across products and services, and over $500 million in FinTech processing volume run rate. Our focus on execution, supported by a healthy aesthetics market, led to our third consecutive quarter of revenue growth since becoming a commercial entity and further validated our commercial launch strategy. These results would not have been possible without the entire revamped organization working together as a team. I continue to be impressed by the exceptional talent we've been able to attract to the company and by their unwavering commitment and dedication to deliver on our objectives. With the FDA having initiated their pre-approval inspection of our manufacturing facility in June, we continue to anticipate the approval of our lead product, Dactymoduline Intoxinate for Injection, for the treatment of glabellar lines this year. In the meantime, the revamp team is actively building inventory and solidifying our commercial launch plans for our innovative neuromodulator. We look forward to introducing the first true innovation in their neuromodulator category in over 30 years, and once approved, Daxibotulinum Toxin A for injection will not only anchor our aesthetics portfolio, but also lay the foundation for our therapeutics franchise. We expect the second half of the year to be very busy and exciting, particularly as we anticipate several catalysts in our therapeutics pipeline, which I will cover later in this call. With that, let me turn the call over to Dustin.

Thank you, Mark. We have built a solid track record of execution since our initial commercial launch, with over 2,000 accounts across 40 states now carrying RHA collections and or using our payment platform. This is up from 1,500 accounts in the first quarter. Our consistent results continue to reinforce our confidence in our prestige go-to-mark strategy. During the second quarter, through a combination of our sales efforts and injector education, RHA sales increased to $17 million, up from $11.6 million in the prior quarter. Growth was also complemented by a seasonally busy period for aesthetic procedures. As we've noted before, Q2 and Q4 are generally more active quarters for aesthetic procedures compared to Q1 and Q3. Given these patterns, we expect our bank's revenue growth to be moderated in Q3, particularly as our sales team ramps up their training to prepare for the potential commercial launch of Daxiboxamide and Toxin A for injection once approved. We then expect a return to a seasonally stronger fourth quarter. Turning to our Setix FinTech platform, we're pleased to see continued growth in the platform's processing volume run rate, up from over $400 million in Q1 to over $500 billion at the end of Q2. We were also on target in completing the launch of PayFact. Becoming an authorized payment facilitator entailed extensive testing, controls, and regulations. It was a big undertaking for the entire organization and a significant accomplishment. We are now well positioned to unlock substantial value in our service offering to practices. As a reminder, PayFact enabled us to participate in more of the credit card processing value chain. Further, as of PayFact, we'll be able to leverage the source data to build new features and functionalities that enhance the overall value proposition of our services offering. We are now in the market beta testing our next generation FinTech platform, which we expect to commercially launch in the fourth quarter. We are finalizing a rollout plan and look forward to sharing more details on the new platform soon. Given the technical and commercial preparations underway, we'll be moderating new account activations with the launch of the new platform. Until then, we'll include both the legacy and the new platform when accounting for our service revenue and payment processing volume run rate. Before I turn the call to remark, I'd like to introduce a few recent key hires across Revamped Aesthetics and Revamped Therapeutics in support of our commercial evolution. First, as part of our commitment to developing our FinTech services segment, I'm pleased to share the appointment of Keita Ansell as the General Manager of Financial Services and our FinTech platform. Cata brings over 20 years of experience in designing and building successful consumer products in payments, e-commerce, and financial services at leading organizations, including UQA Bank, Citigroup, and PayPal. Cata will be instrumental in setting our long-term aesthetic services strategy while also ensuring a smooth launch of our next-generation fintech platform. We're excited to have her on board and look forward to leveraging her leadership and experience as we continue to evolve and grow the Aesthetics franchise. As for therapeutics, we're now at a critical inflection point. We're pivoting our focus to commercial launch preparations following strong data from a very successful Phase III pivotal trial for Daxibotulinum Toxin A for injection in the treatment of cervical dystonia. Falling closely behind is our clinical program for adult limb specificity, which is preparing for Phase III. For these reasons, we're pleased to announce the appointment of Rob VanCraw as the general manager of therapeutics. Rob adds to the strength of our team, bringing more than 25 years of experience in healthcare and life science and industries. He also has a strong background in the therapeutic toxin space. At Allergan, Ron was instrumental in leading global pipeline development strategies for Botox Therapeutics, laying the groundwork for expansion investments like festicity, migraine, and neurogenic overactive bladder. Most recently, Ron was the CEO for Quementa, a company focused on accelerating solutions for brain diseases. Prior to that, he was the Executive Vice President of HealthPoint Biotherapeutics. With a strong background and track record, Rob will help strengthen our therapeutic pipeline strategy and advance our clinical development, all guiding our franchise through commercialization. With a strong team and infrastructure in place, we look forward to elevating the value of our therapeutic franchise and entering the growing $2.3 billion global therapeutic neuromodulator market. With that, I'll turn the call back over to Mark to discuss our upcoming pipeline milestones. Mark? Thanks, Justin.

We are anticipating two key milestones in our therapeutics pipeline in the second half of the year. As Dustin mentioned, we are currently in Phase III clinical trials evaluating doxibotulinum toxin A for injection for the treatment of cervical dystonia. In the second half, we expect to share the results from our Aspen open-label long-term safety study. Afterwards, we plan on filing a supplemental biologics license application in 2022 with anticipated approval in 2023. Our clinical team is also preparing for a Phase III program in adult upper limb spasticity. Do recall that we completed our Juniper Phase II study in February of this year, and our plan remains to hold an end-of-Phase II

commercial activities for the daxibotulinum toxin aid for injection. SG&A expenses include depreciation and amortization and stock-based compensation. Excluding these expenses, non-GAAP SG&A expenses were $42.4 million. Research and development expenses were $29.4 million for the second related to clinical trials, regulatory support for ongoing biologics license application, pre-commercial manufacturing, and our FinTech platform development. R&D expenses include depreciation and amortization and stock-based compensation. Excluding these expenses, non-GAAP R&D expenses were $24.9 million. We continue to balance growth with financial discipline during the quarter, and our balance sheet remains strong heading into the second half of the year. Cash, cash equivalents and short-term investments as of June 30th, 2021 were $336.3 million, which we believe is sufficient to fund our operating plan into 2024. Further, we reaffirmed our previously announced 2021 guidance. approximately 71.8 million with 76.7 million fully diluted shares excluding the impact of convertible debt and with that i'll turn the call back over to mark thank you joey in closing we're very proud of our performance in the first half of the year and anticipate a strong finish in the second half with a potential approval of daxy botulinum toxin a for injection

and further advancement in our therapeutics pipeline. We also remain in a solid financial position with division cash to support our growth initiatives into 2024. With that, I will now open the call up for questions. Operator?

Thank you. As a reminder, to ask a question, you may press star, then the number one on your telephone keypad. That's star one on your telephone. We will have our first question from the line of Seamus Fernandez from Guggenheim. Your line is now open.

Oh, thanks very much. So I'll do my one question and follow up. But just to kick off with the first question, you know, AbbVie really, under the Allegan moniker, really delivered a very, very strong second quarter. Congrats on your guys' second quarter. One thing that they commented on was that they anticipated that approximately two-thirds of the demand was regular way demand and then about one-third was pent up. Would you guys maybe just comment on your thoughts around, you know, that statement and, you know, what it means relative to, you know, sort of the growth of the market relative to share taking as you think about it? And then I'll just have one other follow-up question.

This is Mark. I don't know that we've got any sort of better data than that. You know, we're in launch phase, so obviously the accounts that we're dealing with represent sort of a smaller fraction of the overall market. Having said that, I would say that, you know, our focus on prestige and the high-end nature of these accounts, there's definitely a pretty healthy backlog. And so we're talking with them. There's no doubt there's some pent-up demand. There's clearly, you know, some new consumers that are entering the market, somewhat to the Zoom effect and everything else. And we feel very good that, you know, we've returned, at least for now, back to levels that were pre-pandemic. And, you know, certainly we would expect that we'll continue to see overall market growth. But I don't know that we have anything additional to add. We feel very good about where we are in the market, where we are with accounts. As you can tell with the roughly 2,000 or so accounts that we're in between our products and services that we're being pretty targeted. But clearly we're seeing a nice, healthy market right now.

Great. And then just as the second question, very quickly on just obviously you're expressing a high degree of confidence in the launch. And so I'm assuming that the FDA inspection is going swimmingly. Maybe you could just give us a general sense of how you would encourage us to think about the launch and uptake Obviously, given your premium strategy in the fourth quarter versus how we should think about the rollout through the balance, or, you know, maybe just without guiding specifically, but just kind of the rollout through the balance of 2022. Thanks.

Yeah, thanks for asking that. You know, first on the FDA process and where we're at, you know, consistent with prior commentary, we indicated that prior to our Purdue today, everything where we press release that an inspection date had not been scheduled yet. And then due to the FDA delays, we were in a bit of a holding pattern waiting for that to occur. Given that this is our first drug approval, remote inspection was not a possibility and they were going to need to physically inspect the plant. We then in the spring put out a press release that we'd been given an inspection in our press release and in our remarks, the FDA has shown up at our facility, so we continue to feel very good that, you know, they're following sort of through with, you know, the expected inspection plan. Yes, I think, you know, you're sensing consistency with our tone around the expected approval before year end, and we've taken advantage of this time to, you know, beef up sort of our readiness for the inspection and continue to, you know, advance our commercial preparation plans. um in terms of the launch trajectory you know we've also tried to be consistent this will be the clinical trials. And as a result, we're going to be sort of very thoughtful, intentional in the first phase of our launch, excuse me, similar to what we did with the RHA filler line. And so I think for the balance of, you know, this year likely and post-approval, we're going to spend most of our time focusing on ensuring that we're going to get really good reproducible outcomes that are consistent with our clinical trial data. And that, you know, commercial launch is likely to be much more of a there will be this step period post-approval where we are going to need to spend some time with a select group of customers getting real-world commercial experience before going through a more traditional launch.

Great.

Thanks for your question.

Thank you. Thank you. And now our next question comes from the line of Terrence Flynn from Goldman Sachs. Your line is now open.

Great. Thanks for digging the questions. Maybe just one follow-up, Mark, on the DAX manufacturing side. In the past, I think you've noted about a six- to ten-week timeline for a turnaround from the agency. Just wondering if that's still your expectation. And then, obviously, a strong quarter for the filler side here. And, obviously, breadth contributed. But just wondering what you're seeing from the reorder side of things. Thank you.

Yes, so first off, you know, we, you know, intentionally didn't give sort of a set timeframe because we're outside of the PDUFA clock. We're within the PDUFA framework, you know, everything is moving towards a deadline. You know, it's hard to know exactly that the timeframe that the agency is going to work under as it relates to the inspection. Clearly, they're trying their best, I think, to resolve any of these outstanding issues. And so, you know, we continue to stick to our commentary that, you know, we're focused and have full preparation and build schedule going on in the interim. Regarding the filler and reorder rates, I think it's still a little early for us to make a lot of commentary around it. This is our third full quarter of launch, so we still are seeing a cycle of accounts coming online, figuring out where it fits in their practice. And then we also expect, you know, with the, you know, approval of our neuromodulator, that's going to introduce another new dynamic in there that, you know, may change a little bit sort of the percent of the business and accounts willing to consider giving to us, which accounts might be willing to lean in that were, you know, otherwise waiting until we had a full bag. So I think it's still a little bit early, certainly as we, you know, get visibility and have data that we think is more reflective of what the business is a little bit early in that process.

Great, thanks. Next question.

Thank you. Our next question comes from the line of Annabelle Sammy from Spiegel. Your line is now open.

Hi, thanks for taking my question. Just a little bit more on the commercial preparations you're doing ahead of the approval. What are you able to do? You've obviously penetrated a decent amount of accounts. Is there anything that you can do outside of, you know, potential training and education, such as commercial work, contracting work, preliminary contracting, preliminary negotiation? Is there any of that stuff that can happen ahead of time that could potentially smooth the process for the launch and not pull away too much of that energy from the filler momentum that you're having? And then on the manufacturing side, I realize that, you know, you said that this is a process, and so, you know, I imagine that means that there's a bit of a back and forth. If there are any issues that do come up, would you be telegraphing any of that, or is this just you're keeping it as part of the process and you're still on board for second half, and that's about all you're going to say? Thanks.

First on the commercial prep, obviously in the absence of approval, there's not much that we can do from a promotional standpoint or anything until we have approvals. When we talk about commercial prep, it's all around we continue to refine our pricing strategy and more market research work that we've been doing. I think that we've taken advantage of this gap between the launch of the filler and the expected approval of the neuromodulator to build further relationships with at the customer level. So, you know, we're continuing to establish the Prestige Revance and Threats Aesthetics brand. I think people see us now as a company that's working towards a broader range of products, both from a services and a product stage. And then obviously we talked about building inventory in advance of launch. So a lot of the launch prep is internal activities, getting all of our sales materials ready and everything to support that. So that's kind of more of what we're doing on the commercial prep side. On the manufacturing side, we kind of broke protocol in commenting on where we were in our FBA journey given the pandemic when we talked about the fact that an inspection had not been scheduled prior to the PDUFA. And then again, putting out a press release that one had been scheduled to occur before the end of June. So I wouldn't read into my commentary about the process. This is sort of a standard. you'll hear from us is kind of once we get the FDA decision. But again, I come back to the fact that we feel, you know, very good about our prep and where we were in that process, and we continue all of our preparations in the hopeful approval of the product.

Next question.

Thank you. Our next question comes from the line of David Amsalem from Piper Sandler. Your line is now open.

Hey, thanks. So first question is on the fillers. I don't know if you've talked about this in your prepared remarks. I'm sorry if I missed it. But can you just talk about the mix among the different SKUs? Are there any that are predominating? Or are there any that have gained particular traction or that practices have a real affinity for? um thus far um i know it's still relatively early in the commercial life and these are early days but you know as things uh evolve you know what are you seeing out there in the field um so that's the number one um and then number two can you just remind us on on daxy once you get approval um what's what sort of net are you going to cast in terms of uh training of injectors. In other words, you know, how many should we expect you to have trained within the first six and, say, 12 months of the commercial life of DAXy? And over time, should we expect some Salesforce expansion, given that there are more injectors of neuromodulators than there are of fillers? So how should we think about that? Thanks.

Great thanks David. So the 1st, 1 on the mix side of it, we didn't address those in our scripted comments, but previously what we said last quarter was that it was roughly a 3rd and 3rd and 3rd. We're not seeing a major shift between 2, 3 and 4. we're still early. I think people are still figuring out. And I've been surprised, you know, when we've been out in the field, kind of the, you know, the range of places that people are using it. Obviously, we're limited to focusing on indications on glabellar lines, but, you know, I think that we're finding folks, you know, use this for different performance characteristics and, you know, RHA2 and somebody else on RHA4. So right now it's still pretty even. I'm sure we'll see some separation over time, but right now it continues to be pretty evenly split, a third, a third, a third. In terms of, you know, our neuromodulator and kind of how we're thinking about the launch and, you know, six to 12 months post-launch, we remain committed to kind of this prestige and targeted strategy. And what we've talked about before is that, you know, out of the 30,000 to 40,000 injector accounts that we think there are in the U.S., a top third of those are really the target that we're going after, and that, you know, we would expect over time to be in roughly half of that top third. So, you know, right now we're in 2,000 accounts. Those are obviously going to be sort of our biased accounts to go after first because they leaned in with RHA because of the prestige strategy. They like the idea of no pricing. And so that's the same group of customers that we expect are going to appreciate the differentiated value of our neuromodulator. And so we're still a little early to talk about exactly kind of the number of accounts that we expect to target over time. I think that starts getting a little bit more towards guidance. But phase one is going to be make sure that as the product is used commercially, that we're After that, we'll sort of more broadly introduce it certainly to, you know, the prestige accounts that have already expressed an interest with us. And then, you know, there's no doubt that there will be a broader number of accounts that I think are going to have an interest in leaning in with us, you know, once the neuromodulator is approved.

Great. Thanks.

Thank you.

Thank you. Thank you. Our next question comes from the line of Kim Lugo from William Blair. Your line is now open.

Thanks for taking the question. And I know, you know, most people on the phone have probably heard this question over the past few years. But ahead of hopefully an approval and launch of DACSI, I just wanted to revive the thoughts around physicians and how they want to see their patients more often, not less often. I don't agree with that view, but could you just refresh us with kind of what you're hearing from physicians who have used vaccine in clinical trials and maybe some of the interest you're hearing from the field, from RHA marketing. Just really an update on that thought of a long-duration asset versus a short-acting neurotoxin and the excitement around this.

Yeah, so, Tim, as it relates to sort of, you know, the long-duration profile that we've seen in clinical trials with our neuromodulator and sort of how that might fit into clinical practice to the impact of a couple data points that we'll bring out. You know, there's a lot of market data out there that despite conventional neuromodulators lasting, you know, kind of three three months, four months, that average consumers only come in sort of 1.9 times a year or less. So first and foremost, we think it figures in very well to what the normal pattern is of consumers. When we've been out in the field, these folks, if anything, have long waiting lists. And so getting into these accounts is the challenge. And so if you're a provider, the only way that you can necessarily increase sort of the services that you offer to your patients or increase profitability neuromodulator treatment every, you know, twice a year fits really well with also providing filler as well. So this idea that you can add sort of both filler and neurotoxins together to give better outcomes to patients and increase the per visit ticket makes a ton of sense. So in the customers that we're talking to, and obviously we've got a bias towards those that are leaning into the prestige strategy, it resonates a lot. The last thing I would say is, you know, innovation for us underpins everything. With a longer-acting neuromodulator, we're not trying to be everything to everybody. And so there are consumers in the practice that prefer coming in three, four times a year, and that's the cadence that they want, the practice wants it. That's great. But based on our market research, we think there's a not insignificant number of consumers that really will put a premium on a neuromodulator that lasts longer. And so we think, you know, practice is being important. a lot of sense. So we continue to feel really good about the value proposition and how this is going to fit into practices, both from a consumer demand and from a profitability standpoint.

That's great to hear. Thank you for clarifying. And maybe my one follow-up. In the therapeutic category, I just don't understand why a long-duration product would not capture a majority of share eventually in an indication like cervical dystonia. I know you're obviously adding to the therapeutic side of your franchise with the addition of Rob, but can you maybe talk to some of the market research and remind us about the market research in the therapeutic side?

Sure, and I would say that's sort of aware become a shared leader. I think it speaks to the fact that these are debilitating diseases and that the ability to reduce the frequency of visits obviously gives prolonged symptom facility fee, position time, and everything else. And so, you know, if you look at the data that we generated from our CD program, you know, not only was the duration profile really strong, but we had a very encouraging safety signal as well with low And so, you know, we really are optimistic about the, you know, our neuromodulator performance in clinical trials and therapeutics. And so that's why we announced some of the new hires that we have. You know, we're starting to get ready for commercial introduction of our, you know, cervical dystonia indication and feel very good about the performance profile of the product in the therapeutic market.

Thank you for the questions.

Thank you. Our next question comes from the line of Balaji Prasad from Barclays. Your line is now open. Again, our next question comes from the line of Balaji Prasad. Your line is now open.

Good afternoon, everyone. Thanks for the questions. Apologies if this has been asked before, but I just want to go back to the number of accounts opened this quarter, 2,000 net accounts opened, 2,000, and try to extrapolate this as to what's likely to be the account opening run rate by the end of the year and how this could tie up to your eventual DAXy launch. Thanks.

Yeah, so thanks a lot. You know, we reported sort of the total number of combined accounts between our We talked about there being over 500 at the end of Q3, over 1,000 at the end of Q4, over 1,500 at the end of Q1, and now over 2,000 at the end of Q2. So we've been averaging 500 or so new accounts, ads per quarter. Obviously, with some of the new products and programs that we have coming out I think those are reasonable numbers for now. I think post-improvement or modulator, we'll need to revisit that because, again, our strategy is much more versus deep versus wide. We clearly have a lot of run room in the accounts that we view to be our target market opportunity, but with this tracking right now, it's not unreasonable to sort of look at 500 new account ads

Thanks, Mark. That's helpful. And maybe a quick one on bias in the Botox to just see where you are post your resubmission or submission. Sorry, this is with regard to the FDA data package that was submitted a couple months ago.

So on the biosimilar, what we've indicated was that the next step in that program is to have a meeting with the agency to determine the Phase 3 program that would be required for approval. We expect that to happen before year-end. I know that Beatrice has their own conference call coming up soon. They might give a little bit more commentary on it, but we continue to be encouraged by the dialogue that we've had with them. And, again, there will be a meeting with the agency to lay out sort of what that program is going to look like before year-end.

Got it. Thanks, Mark.

Thank you.

Thank you. Our next question comes from the line of Serge Belanger from Needham and Company. Your line is now open.

Hey, good afternoon. Thanks for taking my questions. First one for Mark. Can you just give us a refresher of the open label safety study in cervical dystonia from which you'll be reporting results in the second half. If I recall, patients are eligible to receive multiple courses of treatment, so maybe just give us an idea of what you'll be looking for in terms of efficacy, duration, and safety.

Yeah, so on the open label safety study, it was really a dose escalation study looking at, you know, our primary endpoint there was to look at the safety of, you know, sort of repeat doses over time. And so when we report that out, it's much more of a looking at the safety profile of the product and, you know, how patients respond to, again, these different doses that occur over time and increase in doses if that's what the clinician ultimately decides. So it's less about sort of the duration profile and more about the safety side of it. So that's what we'll be reporting out on that.

Okay. And secondly, with the addition of Rob Bancroft to the therapeutics team, should we look at that as kind of a confirmation that you're moving forward with a commercialization effort for the muscle movement disorder in lieu of a commercial partnership?

Yeah, that's correct. You know, in addition to Rob, we also announced last quarter the addition of, you know, another senior level person on the healthcare reimbursement side of it so that we're focusing on that as well. And so, you know, we've long talked about our focus on building out, you know, sort of a direct sales force in the muscle movement space. And, you know, these are some of the key pieces that we're putting in place to allow us to access and enter that market. You know, as it relates to cervical dystonia, that there's a fair bit of opportunity to be unlocked there. And as we talked previously, we think that the performance profile of our product will allow us to be, you know, very competitive in the therapeutic category.

Thank you.

Thank you. Our next question comes from the line of Ken Cassiatori from Calvin. Your line is now open.

How are you doing, team? Congratulations. Just really great performance without yet having DAXy. So as we think forward, I know, Mark, you want to be thoughtful in terms of how the product is rolled out and the experience and the initial experience some of the kind of key users have. Can you talk a little bit about now that AbbVie has taken over control of the Botox franchise, kind of anything that they're doing different that maybe you all could apply or as you step back and look at the overall marketplace? in terms of timing for you all and DTC and really differentiating this product as we think through maybe the latter part of 2022, not necessarily the near term. Is there kind of any nuances you can give us as you approach this market that maybe has been different in the past that we're going to try to do a little bit different in the future? Thanks so much.

Sure. Thanks, Ken. No, not really. I mean, obviously, you know, as the market leader, they talk a lot about sort of increasing DTC dollars. They've got a big push into training new injectors. So they're going to expand sort of the number of folks that are actually doing toxin treatments. Our strategy is a little different, right? We're going after sort of the top of the pyramid on that side of it. But I think, you know, market. So we would expect that they're going to continue to run their playbook, which is, you know, more awareness dollars, more couponing to customers, training of new injectors, all of which will help grow the market. And as we come into the market with innovation, you know, we will also drive more consumer awareness more coming in, but ours is prestige and high-end practices. So we don't expect a whole lot, you know, different in terms of the way that we view the market. Certainly once we hit the market, I'm sure it's going to be quite competitive. But, you know, both of us will have kind of the playbooks that we'll run once we hit there. But from an overall approach to the market, I don't see any major differences from that standpoint.

Thanks so much.

Thank you. As a reminder, to ask a question, you will need to press star, then the number one on your telephone. That's star one on your telephone. Our next question comes from the line of Vamil Devon from Mizuho. Your line is now open.

Great. Thanks for taking the question. So maybe just a couple from me. One on the payback integration that you've talked about for next quarter. Can you maybe just provide a little more insight as to the benefits you think that's going to provide kind of on that side of your business. And then the second part would just be maybe any update you might have around your efforts around migraines. And you've talked about that being a matter of sort of when you work on that as opposed to if you work on that, but just curious if there's anything new as that market obviously is evolving pretty rapidly as well. So any new thoughts would be helpful. Thanks.

Great. Thanks, Paul. So first on the payback side of it, you know, the real advantage of payback in addition to participating in more of the overall margin stream of the credit card processing, the big advantage is it gives us access to the sort of level data. So right now the HintMD system is a robust credit card processor. data. So things around data analytics and insights and even automating subscription services in a way that's seamless and easy to set up and white label loyalty become a lot harder if you don't have access to the source data. So by becoming a payment facilitator, we then are able to scrape that source data, which again, it'll be the practices information, but then we can turn around and use that to help them with data insight and analytics. And so that's really the key functional We're very encouraged with how the beta launch of that is going and how it's performing. And again, that will be sort of the foundation that will build out these other services on top of. And again, it will allow us the ability to participate in a little bit more margin spread, you know, if we choose to, you know, hold on to that or, you know, if we choose to give it back to the practices. On the migraine side of it, you know, to your point, we've talked about it sort of not an if and a when. And I think what we've said most recently is that we better prepared to address sort of where migraine fits into our overall therapeutic strategy and what priorities that we have ultimately for, you know, 2022 when we give a little bit more color on our 2022 operating plan.

Okay. All right. Thank you. Great. Thanks, all.

Thank you. Our next question comes from the line of Doug Tiao from HC Wainwright. Your line is now open.

Hi, everyone. Chris Gales here on for Doug. So congrats on the quarter. So I was just a little bit interested in the prestige segment that you're targeting with for Daxi. Now, a competitor of yours is heavily targeting the millennial demographic. And I was just wondering how much overlap there is between these two segments. Thanks.

I think we need to separate the segmentation around consumer and then separation around practice. So the perceived strategies around our focus is really on partnering with those practices that drive value to the experiences they provide their patients as well as the outcome they provide their patients. and see all patient types. Those might be millennials, middle-aged, and all in between. So our strategy is really different from the others in that we believe we can build the most amount of loyalty directly to those practices by providing that experience with us and great innovative products, and then the consumers that they treat will be loyal to the practice. So our loyalty really lies in driving it to those practices. So those practices will see all the millennials that will be coming into the space just as much as the other practices.

Awesome. That's very helpful. Thank you.

Thank you. Again, as a reminder, to ask a question, you will need to press star then the number one on your telephone. That's star one on your telephone keypad. We don't have any further questions. I would now like to hand the call back to Mark Foley.

Thank you operator before I make my closing comments. I just wanted to recap some of our therapeutic milestones for the second half. My understanding is that the sound quality for that section was not great. So, in the second half, we expect second half this year, we expect to share the results from our open label long term safety study afterwards. We plan on filing a supplemental biologic. And then our clinical team is also preparing for a phase 3 program in adult upper limb spasticity. You'll recall that we completed our Juniper phase 2 study in February of this year, and our plan remains to hold an end of phase 2 meeting with the FDA before year end. So, to close things out, in the coming months, we plan to virtually attend the City and Wells Fargo healthcare conferences. We welcome your requests for meetings if these events are directly through us. Feel free to reach out to Jessica if you'd like to schedule some time. With that, I would like to thank all of you for participating in today's call. Thanks.

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. Goodbye. You may now disconnect.