Xeris Biopharma Holdings, Inc.

Ladies and gentlemen, thank you for standing by and welcome to today's Xero's Pharmaceuticals Third Quarter Financial Results. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star, then the number one on your telephone call pad. If you require any further assistance, please press star zero. I would now like to hand the conference over to your speaker today, Alison Way, Senior Vice President of Investor Relations and Corporate Communications. Please go ahead. Alison Way, Senior Vice President of Investor Relations and Corporate Communications. Please go ahead. Alison Way, Senior Vice President of Investor Relations and Corporate Communications. Please go ahead. Alison Way, Senior Vice President of Investor Relations and Corporate Communications. Please go ahead.

Alison Way, Senior Vice President of Investor Relations and Corporate Communications. Please go ahead. Alison Way, Senior Vice President of Investor Relations and Corporate Communications. Please go ahead. Alison Way, Senior Vice President of Investor Relations and Corporate Communications. Please go ahead. Alison Way, Senior Vice President of Investor Relations and Corporate Communications. Please go ahead. Alison Way, Senior Vice President of Investor Relations and Corporate Communications. Please go ahead. Alison Way, Senior Vice President of Investor Relations and Corporate Communications. Please go ahead. Alison Way, Senior Vice President of Investor Relations and Corporate Communications. Please go ahead. Alison and Barry Joy, Chief Financial Officer. Paul will provide opening remarks. Barry will review the financial results, and then we'll open the line for questions. Before we begin, I would like to remind you that this call will contain forward-looking statements concerning the impact of COVID-19 on therapists' business practices, therapists' future expectations, plans, prospects, clinical approvals, commercialization, corporate strategy, and performance, which constitute forward-looking statements for the purposes of the safe harbor provision under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including the effect of uncertainties related to the COVID-19 pandemic on U.S. and global markets, There are business, financial conditions, operations, clinical trials, and our third-party suppliers and manufacturers, and other risk factors, including those discussed in our filings with the SEC. In addition, any forward-looking statements represent the views only as to the date of this call and should not be relied upon as representing our views as of any subsequent date. We specifically disclaim any obligations to update such statements. I will now turn the call over to Paul.

Thanks, Allison, and thank you everyone for joining us today. We are very proud of our third quarter performance. As you will see, the successful launch of our G-Volk Hypopen was the main driver of significant growth in the quarter. Importantly, however, the work our teams did in the first half of the year with G-Volk pre-filled syringe was a key contributor as well. We were able to grow our business consistently in the first half of 2020 in spite of having moved to 100% virtual selling model in the middle of the first quarter. We were also able to get both GVOLC pre-filled syringe and GVOLC HypoPen onto payer formularies with unrestricted access for 80% of covered lives across all payer types, all of which set us up for a very successful initial quarter of the GVOLC HypoPen launch. And as I said, our teams were able to do that in spite of the continued challenges of working virtually during a pandemic periodic civil unrest, and various natural disasters that for most of the year have interfered significantly with patients' ability to be able to access their healthcare providers. During the third quarter, we recorded 9.4 million in net sales for GEVO franchise, approximately two and a half times total net sales in the first two quarters of 2020 combined, and more than quadrupling reported net sales for Q2. We grew total GVOC prescriptions approximately 145% from the second quarter to the third quarter, as captured in IQVIA, and our growth continued to outpace the market, enabling our glucagon market share to increase more than eight points to above 14%. I'll come back to that shortly. We added another 2,000 unique GVOC prescribers, and we now have over 9,000 unique prescribers of GVOC since launch. We prepared meeting requests for submission to the FDA for three clinical programs, all of which were submitted recently, and meetings granted for various dates in late December or early January. We were recently granted fast-track designation for our diazepam formulation, and we're in a strong cash position that we believe gets us to cash flow positive. Let's take a closer look at the commercial strategies we employed and the market dynamics that facilitated the strong demand for GVOC and led to the significant growth of GVOC franchise in the third quarter. We believe there are several factors that contributed to the jump in prescription demand in the quarter. Obviously, there was pent-up demand for the highly anticipated launch of GVOC Hypopen, which commenced in early July. Our teams have continued to get better at accessing healthcare providers virtually, and healthcare providers have increasingly embraced the management of their practices virtually, thus improving their willingness to engage with us virtually. As I stated earlier, approximately 80% of patients have unrestricted access to GVOC Hypopen across all payer types at the time of launch, which I believe is unprecedented for any product launch in recent memory. We also continued our $0 copay program to help patients access GVOC in these challenging times, with many patients facing incremental financial constraints. GVOC Hypopen was able to leverage and build upon the strong grand preference initiated through the introduction of the GVOC pre-filled syringe. And our initial focus on converting legacy emergency kits has been quite successful. We've seen a healthy combination of legacy kit conversion and new patients coming into the category. which is exactly what is needed in the category. New products now compromise nearly 45% share of the current market, and glucagon legacy kits have lost 10% market share since the introduction of GVOC Hypopen. We do expect this dual trend to continue over time. By continued focus on improving our virtual excellence, GVOC has dominated social media discussions since launch, driving awareness within the diabetic community. We maximized and simplified prescription fulfillment by leveraging the specialty pharmacy hub and mail order delivery of GVOC directly to patients' homes. This is especially important for patients and healthcare professionals during periods of limited travel and health physician offices that have limited or no staff as a result of the pandemic. The third quarter has traditionally experienced a fairly significant back to school bump in prescriptions as well. This year we had what I would call more of a back to something. However, it was not nearly as dramatic as the annual back to school bump experienced in previous years due to the COVID-19 pandemic. Yet in spite of that, the initial quarter of Zivocarpapen was very positive. That said, as we move into the fourth quarter, we are already seeing the normal post back to school market slowdown, as has been the case in previous years. Traditionally, glucagon and total prescriptions in the fourth quarter are less than total prescriptions in the third quarter. As the category grows and more new patients come into the category, these historic ups and downs may moderate. But at this point, the trends are clearly continuing. Recent data also show that in addition to the normal downturn after the traditional back to school bump, we could see a temporary leveling off of growth and prescriptions likely due to a couple factors. Resurgence in COVID-19 related restrictions on people movement and travel is again causing healthcare professional offices to restrict patient access or close altogether. and we continue doing almost all of our sales activity virtually and will remain primarily virtual for at least the next several months. That said, with conversion of legacy kits gaining momentum, our focus going forward will be on the 5.6 million patients who are on insulin who should have glucagon ready to use, who should have glucagon, ready to use glucagon like Givo Kyphopen, available for a potential severe low blood sugar event. The biggest obstacle to dramatically changing the situation are physicians who largely fail to discuss the importance of glucagon with their patients. Our focus is changing that mentality. Our message to healthcare professionals is clear. Every prescription written for insulin should be accompanied by a ready-to-use glucagon or G-Volt prescription, especially as the COVID-19 pandemic persists and intensifies, putting people with diabetes at ever-increasing risk. Before moving to our pipeline, I'd like to take a moment to discuss what we believe is a disconnect or under-reporting of underlying demand for GVOC from third-party databases such as IQVIA. IQVIA reported prescription growth from the second quarter to the third quarter to be approximately 140 to 150%. However, Product shipments to wholesalers from the company and from wholesalers to retailers would suggest that these third-party databases may be underreporting true demand-based sales by as much as 20% to 50%. This is likely due to the estimated or projected nature of prescription volume and prescription growth reflected in these databases, particularly in the launch phase of new products such as GVOC Hypopen. This is especially true since they do not capture all points of distribution, such as some mail order, long-term care, specialty pharmacy systems, or direct sales from our third-party logistic provider to some regional pharmacy systems. Over time, this reporting gap should narrow, and this database information should more accurately reflect GVOC's growth, but probably not in the near term and not necessarily completely over time, as many of the alternate distribution channels will likely still not be captured. Now, turning to our pipeline, our regulatory team has been busy submitting meeting requests and preparing briefing materials for three important FDA meetings, post-bariatric hypoglycemia, or PBH, exercise-induced hypoglycemia, or EIH, and our pramlantide insulin co-formulation product. Based on FDA year-end scheduling, we now expect these meetings will take place in the early part of first quarter. During the COVID-19 pandemic, all of these meetings are either phone or written responses only. After we have received feedback from the FDA on each of these programs, we will announce the next step for each program. Assuming agreement by the FDA with our proposed path forward for these programs, we plan to advance at least one ready-to-use glucagon program, either PBH or EIH, for the ultimate goal of getting a non-rescue mini or microdose indication to the market. As for our paramotide insulin co-formulation program, also assuming positive FDA feedback, we will begin to look for a partner to fund or take over all further development and future commercialization activities. And we have been quite clear that we are searching for a development and commercialization partner for our diazepam formulation, which already has a defined path forward in phase three and was recently granted fast track designation by the FDA. We have a lot to look forward to over the next several months and into 2021. Continued expansion of the glucagon market with GVOC by continuing to increase awareness and drive incremental demand, a decision for our HypoPen product in Europe, and FDA feedback on these three important clinical programs, which should provide clarity on next steps for each. Now I would like to turn the call over to Barry to review our financial results.

Thanks, Paul. Total net sales of GVOC were $9.4 million and $13.1 million for the three and nine months ended September 30, 2020, respectively. These amounts include the sales from both presentations of GVOC, that being PFS, or the pre-filled syringe, and HypoPen, which we launched in July. Net sales represent gross product sales less estimated allowances for patient copay assistance programs, such as our $0 copay program to which Paul referred, prompt payment discounts, payer rebates, chargebacks, service fees, and product returns, all of which are recorded at the time of sale to pharmaceutical wholesalers. Cost of goods sold for the three months ended September 30th, 2020 was $2.8 million. Cost of goods sold for the nine months ended September 30th, 2020 was $5.9 million, which included $1.6 million of E&O expense and underabsorbed overhead costs of $1.4 million. Total operating expenses were $20.4 million and $71.5 million for the third quarter of 2020 and first nine months of 2020, respectively, compared to $30.4 million and $90.4 million for the third quarter of 2019 and the first nine months of 2019, respectively. Research and development expenses decreased by $11.6 million for the three months ended September 30, 2020, in comparison to the three months ended September 30, 2019. The decrease was primarily driven by decreased expenses associated with our clinical trials of $5.2 million and decreased pharmaceutical process development costs of $5.1 million, resulting from expenses incurred in the prior year for the manufacturing of GVOC prior to commercialization of $2.6 million and a reduction of manufacturing batches and supplies needed for preclinical and clinical trials of $2.5 million. Research and development expenses decreased by $32.2 million for the nine months ended September 30, 2020, in comparison to the nine months ended September 30, 2019. The decrease was primarily driven by two factors. The first factor was decreased pharmaceutical process development cost of $20 million, resulting from expenses incurred in the prior year for the manufacturing of GVOC prior to commercialization of $13.2 million, and a reduction of manufacturing batches and supplies needed for preclinical and clinical trials of $6.6 million. The second factor was decreased expenses associated with our clinical trials of $11 million. Clinical trial expenses decreased significantly for both the three- and nine-month periods as we've concluded all ongoing clinical programs, and no new studies have been initiated as we await FDA feedback on go-forward development requirements. SG&A expenses increased by $1.6 million for the three months ended September 30, 2020, in comparison to the three months ended September 30, 2019. The increase was primarily driven by an increase in compensation and related personnel costs of $3.4 million due to additional headcount to support commercialization efforts of GVOC, partially offset by decreases in marketing and selling expenses of $2.3 million due to the cost incurred in the prior year for the initial launch of GVOC. SG&A expenses increased by $13.3 million for the nine months ended September 30th, 2020, in comparison to the nine months ended September 30th, 2019. The increase was primarily driven by an increase in compensation and related personnel costs of $10.8 million due to additional headcount to support commercialization efforts of GVOC, increases in marketing and selling expenses of $1.2 million, and increased general and administrative costs of $1 million. Net loss for the three months ended September 30th, 2020 was $16 million or 35 cents per share compared to $32.8 million or $1.22 cents per share for the same period in 2019. Net loss for the nine months ended September 30th, 2020 was $69.3 million or $1.78 per share compared to $92.5 million or $3.58 per share for the same period in 2019. As of September 30th, 2020, we held $141.7 million in total cash, cash equivalents and investments compared to $88.8 million at December 31st, 2019. Total shares outstanding as of October 31st, 2020 were approximately 49 million. including approximately 400,000 and 2.3 million shares issued in September and October respectively, as a result of conversions of approximately 8.1 million principal amount of our convertible debt.

I now will turn the call back to Paul. Thanks Barry. In summary, we're doing extremely well in all aspects of our business, despite the challenges of the ongoing and resurging pandemic. We had a tremendous quarter, growing net sales 370% over the previous quarter. GVOLC Hypopen is off to a great start. Despite the normal fourth quarter market softness and the COVID-19 related slowdown in patient visits that we're starting to see in the fourth quarter, we expect our progress to remain positive. We expect continued growth and expect our business to remain strong. We have several catalysts in the early part of next year. We have enough cash to get to cash flow positive. And I believe the fundamentals of our company are strong and get stronger and stronger with each quarter. With that, operator, if you would please open the line for questions.

Certainly. At this time, if anybody would like to ask a question, please press star 1 on your telephone keypad. Again, that is star 1 on your telephone keypad. Your first question comes from Amy Faria from SVB Lyric. Your line is open.

Great, thanks. Good morning. Thank you for the question. I've got three. Firstly, Paul, you mentioned that as we progress into the year end and into the beginning of the next year, we're likely to see a little bit more of a leveling off of the market. And is that primarily a function of the overall seasonality of the market as well as COVID? Or is there any other dynamic that we should be thinking about And if we do that, how do you expect the market share conversion from the older kits to the newer products to progress? I'll pause and then ask other questions later.

Yeah, Ami, good questions. What you see very historically, almost every year, you could go back to 2016, even probably further, you see that spike in prescriptions in the third quarter, and then you see a drop off, especially in October. It's just, I don't know if I would call it seasonality, but it's just the regular course of events. And then it starts to come back as you go into the end of the year and the holidays. It happens every year. It's to some degree seasonal. I think it's accentuated a little bit this year because of COVID. You have a lot of offices closing again, people not going to the doctor's office as much as they would. So I think what you saw in the third quarter was not quite the same peak you would get for back to school. And what you're going to see in the fourth quarter is a little bit more of a slowdown because of the COVID effect. That being said, I think what we're seeing in the market with two companies with new products talking to physicians about why patients should have glucagon if they're on insulin, you're starting to see a little bit more of a reduction or kind of conversion of the kits, and you're seeing a lot of new to glucagon patients in the marketplace. I think that dual trend is going to continue, and I think that's an important part of growing the overall market over time and moving it toward these new ready-to-use products.

Got it. Okay. Just beyond the pipeline that you talked about, the PBH, EIH, and then the other two, can you talk about what you're doing with regards to exploring other applications of your technology and what might be the time frame? I know you're not ready to discuss those right now, but what might be the time frame that we might start to get more visibility into those?

Yeah. We have stated publicly that our aim is to bring one or two new products out of our lab and into first in man every year. That's our stated goal. We continue on that process. We have a couple products that we got out of our lab and had first in man in 2020, 2019, 2020. Some of those products will continue forward. Some will not, depending on how they do. We will be prepared to talk more about them when we have technical success beyond formulation and when we take them into phase two. And we'll do that. We've got more in the lab this year. So that's as much as I want to say about it. applying our technology broadly across different therapeutic areas. We're applying it to different kinds of products that we can make that more soluble, more stable. And as you know, the Xeroject technology, we are partnered with several companies on their pipeline products that they would like to make pre-filled syringe instead of IV administration, most of which are with big pharma companies that we can't disclose.

Understood. Okay. And my last question is just with regards to the investment that will be required to bring forward either PBH or EIH, depending upon, you know, how your conversations with the FDA go. Can you provide us with bookends of how much funding might be required and whether that would require you to raise any additional capital? If you could provide any kind of broad bookends of what that might look like, that would be helpful.

I really don't, I can't. We don't know yet because we haven't gotten any feedback from the FDA. We have made proposals on what we think the next steps should look like. We've made proposals to the FDA as to, and in our briefing binders for those meetings, we'll elaborate on proposals on what the size of the study should be, et cetera. But we won't have the clear understanding of what that really is going to be until we get feedback. And like I said, those meetings are now predominantly scheduled for early 21.

Understood. Thank you.

You're welcome.

And your next question will come from Randall Stanicki from RBC. Your line is open.

Great, thanks. Paul, how do you think about the magnitude of the back-to-school move that you saw this year, given that a lot of people were at home versus what it would have looked like in a more traditional or a more normal environment? And I understand, given the timing of the HypoPen launch here, it might be a little bit more difficult to read, but just trying to understand where that would have been relative to a more normal environment. And then, Second question for you, a little bit of a different question. There's a host of companies within diabetes looking to manage the condition digitally to create a closer and more regular relationship with the patient. Does that at all create an opportunity for Xeris to partner with any of the companies looking to do this? You bring a rescue option. They provide you with engaged patients. Is that something that you've at all thought about? And then lastly, just if you could just talk about units per script trends, that would be great. I didn't quite catch the third piece. Units per script. What are you seeing in terms of trends?

Okay. I'll go in reverse order. The units per prescription for GVoke Hypopen is a great example of the databases such as IQVIA not being totally accurate. We only sell a two-pack of the GVOC hypopen. However, in IQVIA, the units per prescription hovers between 1.8 and 1.9. So they're definitely not capturing it correctly, but we only sell a two-pack. And that's why when you look at our financial results, you might say it's a little bit surprising when you compare it to what you thought you were seeing in IQVIA because they're not capturing everything. And so that's why units sold through the retail are better than what you would expect when you look at just pure prescriptions. In terms of partnering, I don't see that as being likely, never say never, but most of the companies that are focused on technology and the relationship with the patient through pumps and various CGMs, et cetera, believe that they're working towards solving the issue of hypoglycemia. It hasn't really changed in many years, so they're very focused on their message, which We're going to control your patient. There's going to be less concern, less hypo. And to some degree, that's why there's 5.6 million people out there that still don't have glucagon handy and should, because they're all at risk for a potential severe hypo at some point in time. And then the third thing, your first question, the back to school, there was a bump. It just wasn't the same magnitude as what it normally would be. Percentage-wise, you know, Could have, should have been in a normal year 20% to 30% higher. It just was more muted. There was a back to something because parents had to prepare their kids for something, whether that's schooling at home, part-time school, you know, et cetera. So you did see somewhat of a bump, but it was muted.

Got it. That's helpful. Thank you.

And your next question will come from David Enslem from Piper Sandler. Your line is open.

Hey, thanks. So I joined late, so I might have missed a couple of these. But first question I had is on the gross to net for GVOC. And with coverage at 80% across payer types, can you talk about how we should think about steady state gross to net as we move through So that's my first question. And then secondly, can you talk about further investment in direct-to-consumer patient awareness, et cetera, and how we should think about that ramp of that in 2021? And then lastly, on the diazepam product, I know that you've talked about a partnership there. I guess my question here is, what is your latest thinking on that, and have you started to engage in a dialogue with potential partners on that product? Thanks.

David P. Okay, David, thank you. I will take the second two, and I'll go in reverse order again, and then I'll turn the gross-to-net question over to Barry. The diazepam product, clearly our goal is out-licensed. We believe that we have built a very nice drug. It behaves exactly the way you would want a drug to behave in this category. And we now have, the FDA has said we could go right from phase one right to phase three. We have a defined clinical path. And our technology is we've once again proven our technology that we can do what we say we're going to do with drugs. We can make them either more stable or more soluble or both. We've made diazepam soluble and stable in the liquid form, and we're looking for somebody who wants to be in that category, is in neuroscience and wants additional products, and is willing to further develop and commercialize diazepam. We've taken it as far as we want to take it. It's not something we want to go into commercialization with. From a DTC perspective, we've been extremely active on social media, digital media, especially during the pandemic. We cranked it up quite a bit, and we will continue to do that throughout the balance of this year and through 21. We continue to interact with all of the influencers in the community, and they continue to, you know, repurpose or retweet whatever that we're doing and talking about the HypoPen. So I think there's tremendous engagement right now, and that should continue. The gross to net question, Barry, I'm going to turn that over to you.

Sure. Thanks, Paul. Hey, David, thanks for the question. Yeah, I mean, without – I mean, we don't disclose the specifics, but just to try to give you some flavor and try to address the question as much as possible. I mean, we – early in a launch of a product, and especially given that this is our first product, there's a lot of estimates and judgments that go into gross to net until we've got a lot of long period of time of true data. So you always need to have that understanding for a launch of a product, and especially when it's a company's first product. Secondly, different programs obviously have impact. You know, Paul made reference to our co-pay program. So, you know, that's something that factors into gross to net. So, you know, I think until we sort of have more experience, you know, we'll have a better handle. I think we feel good, certainly good about the estimates that we have up to this point. But over time, we'll have more, you know, we'll have real data to compare it against and fine-tune the estimates as necessary um and also again as we have programs like the copay um you know we'll have our gross to net reflect that copay program okay all right thanks and your next question will come from defy yang from mizzou home securities your line is open thank you good morning and thanks for taking my questions just to uh first uh first one is on cogs um

It looks like COGS is trending in the right direction. Just wanted to ask, how do you think about the mid to long term stable COGS range? And then secondarily, in terms of commercial strategy, you have about 80% coverage. in the commercial space already. So on the move forward basis, would you be more focused on gaining additional coverage, or would you be more focused on pricing discipline? And then, well, actually, I lied. There's a third question on the $0 coupon. Do you plan to keep that in place for an extended period of time?

So I'll take the second two once again, and then I'll turn the Cogs question over to Barry. The $0 copay, I believe we have stated publicly that that remains in place at least through the end of the year. We make a decision on a regular basis. We've extended that quite a bit this year because you know, patients are, especially in the diabetes world, they're really at high risk during the pandemic. Stress and anxiety cause severe low blood sugar to be potentially more frequent. So we want to make sure that there are no barriers to getting glucagon and to getting our glucagon product, the Givo type of pen. And we'll make a decision on that, you know, as time goes. In terms of covered lives, 80% of covered lives unrestricted is amazing, especially at day one of launch. We will continue to work on that, maybe kind of nudge that up a little bit higher. I think you will find that very few products get 100%, if ever. I don't think ever. 90% would be almost beyond what you see in the industry. There are some payers that just will not cover things in an unrestricted manner. There's some that just won't do it. So will we get a little bit higher? Maybe. Maybe as much as 85 over time. Our focus is just going to be maintaining that over time. And our pricing discipline has been, I think, very solid so far. I'm not worried about that. In terms of the COGS question, in the mid to long term, I'll have Barry answer that.

Okay. Thanks, Paul. Yeah, as far as COGS, sort of similar phenomenon as what I answered for David about the gross net. Again, as we get into having more experience during the early parts of a launch, there's different variables that drive COGS up and down until we get to a more steady state. such as the fact that we've got expenses that have previously been recorded as R&D expenses. Those were manufacturing costs for GVOC that were incurred prior to approval and initial commercialization. On the other hand, we've got things, as I mentioned, such as underabsorbed overhead. So as we get into a more steady state, that will normalize, but your observation is you know, is correct, that it's trending in the right direction. And, you know, we just need some time for it to normalize.

I think your final question for today will come from Edward Chung from Jefferies. Your line is open.

Hi, it's Ed Chung, on for Dave Steinberg. Thanks for taking my questions. All right, a couple here. On the PBH and EIH programs early next year, will you wait for feedback on both before you decide to disclose your development plans, or will you talk about them and disclose the plans once you get feedback for each? Since, I mean, I think you indicated that you're probably planning to move forward on one of them. And then, you know, R&D this quarter, obviously, with the trials wrapping up, was a little bit lower. I mean, how should we think about your R&D spend looking forward into next year? You know, overall, do you think it's going to be in a similar ballpark as this year? And then, and also just back on GVOC, was there any pipeline fill in the quarter from the hypho pen? And how much do you think the RXs were understated this quarter in IQVIA?

Okay. Two things that I'll take first. PBH and EIH, will we disclose them? one at a time or wait. I think the meetings are probably so close together, we could wait. But as we get information and as we decide what we're going to do program by program, we'll make that known. I don't see as though we would need to wait for any reason. R&D spend, I want to make sure I'm clear. If we decide to move one of those programs or both of them forward, we probably couldn't get a study started until mid to late second quarter. Um, it just takes time to get a study up and running, especially when we don't know yet what the final agreement on what the study is going to look like with the FDA. Um, and you have to get, you know, approval at study sites, et cetera. So, um, R and D spend in 2021, um, probably would not be, any more and potentially less than what we'd see in 2020. But we don't know at this point. In terms of pipeline, I want to be really clear. There is very little, if any, retail stocking, and we have no inventory build at wholesale. What we see when a unit goes from wholesale to retail, it's almost 100% demand-based sales. There's really no retail inventory to speak of. And I stated that IQVIA, we think it could be understated anywhere from 20% to 50%, and it varies.

Thanks so much.

That brings us to the end of our Q&A session today. I turn the call back over to Polly Dick for closing remarks.

Yes, very briefly. Once again, I just want to reiterate that as a company, I believe the fundamentals of our company are strong and get stronger and stronger with each quarter. Givo Kyphopen is off to a fast start. Our clinical programs are in front of the FDA. We're feeling very positive about our business. I want to thank everyone for joining us today. We appreciate your time and questions, and we appreciate everyone's continued support of Xeris. Please stay healthy and safe, and we'll talk to you again down the road. Thanks.

Thank you everyone. This will conclude today's conference call. You may now disconnect.