Xeris Pharmaceuticals (XERS) 9 Mar 212020 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. And welcome to today's Xeris Pharmaceuticals Fourth Quarter Final Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker, Allison Wey, Senior Vice President of Investor Relations. ahead. go Please,

fourth Good be quarter Mae. corporate welcome Xeris' this the to conference results year Thank issued on was full morning our year fourth earlier company's with release and A and and and XXXX Pharmaceuticals full call. XXXX can you, morning press and quarter found financial update results website.

our by will financial CEO; and provide CFO. Paul provide We will remarks, line and details and open are Barry for results, Chairman on joined then we Q&A. Paul Edick, this will opening morning Barry the Deutsch,

you as indicated Before the our concerning this to results may statements for of with and we the of those related performance, condition, Private begin, on future I'd under like of of approvals, purposes Act XXXX. impact Actual the prospects, will to manufacturers, Xeris' and the statements and Safe differ remind on commercialization, forward-looking factors, plans, materially COVID-XX uncertainties factors constitute and various risks global those from forward-looking practices, including pandemic by trials Harbor business, suppliers strategy the third-party provision a the Xeris' of that Securities expectations, which contain forward-looking operations, COVID-XX financial in the Reform business call Xeris' Litigation important the clinical other and U.S. result including effect markets, discussed statements, clinical SEC. these filings corporate

specifically as only our disclaim We statements update views should of represent as forward-looking any be call any statements. our of to obligations subsequent views not representing the addition, upon such of and In any this as relied date. date

the turn call Now, over to Paul. I'll

efforts continued of I of in tremendous fourth growth first launch fourth full to quarter, to point during In the later unrestricted glucagon to brought that into quarter of resurgent the continued talk over in year. my in for coverage so, have a and for and fourth We'll for up you actually pandemic, a positioned and quarter enabled couldn't about thank performance joining and face I team, pandemic. while times. some and pleased seasonality of the unusual performed net the first Gvoke which $X.X hope in more be we declined XXXX. and for they out XXXX. XX%, did the bit us the In million the to of of XXXX, today. you My Pre-Filled year stages highlights progress the remarks. you these market the the well we headwinds. Gvoke challenging and stay of Xeris a great XXXX, Gvoke quarter periodically XXXX July, long first fourth recent the will in payer early $XX the developments. civil make healthy safe fourth today in and regarding market work to half fourth of the of headline to of the of the which you and a very able hear very quarter as throughout And of great despite the the successfully Xeris and quarter that in I'd is or believe which quarter proud a entire strong prescriptions little HypoPen we in us growth start impact Allison, normal you, being the been particular, grew quarter, like great the recorded in multiple the I and strengthen of XXXX during sales, the everybody fourth function in into achieved million and us Thank The yours us first deal, quarter, launch done set get the for unrest us consistent the periods to hacked. nature Syringe more

pharmaceutical the to hyperglycemia, in hyperglycemia, XXX% of facility the from on to Gvoke product, circumstances effort name mealtime programs; our a the combination FDA on. more Chicago, initiatives a more for to continuous Palestinian moved -- a detail San is We receive the recently very EU, received CHMP remarks equitizing which by his pramlintide-insulin be agreement as which as a entered virtual ex-US in us and our be in the has And EU. in ready-to-use discuss aligned Gvoke our our three-pipeline more during we nature seamlessly we’ve a for portion leading and commercialize in final into start our the R&D We later brand. team. and believe significant Palestine unusual and potential positive Israel reduced city, that's in initial in to more this year, better Diego sales feedback, post-bariatric We approval positive and insulin. Opinion to Given will company, to the Ogluo, began we convertible advance with bonds. allowing a Barry licensing be this approved our and our with HypoPen debt discussions exclusive an company Authority. Israeli one of distribution We exercise-induced our the consider

context like a overall on regarding the had COVID-XX, that performance, details more share market I'd overall impact some the whole. on the has COVID-XX impact of into going additional pharmaceutical Before to our as

and all think I headwinds experiencing most important real are the to significant. are it's companies that understand

face been lost that Gvoke that professionals did endocrinology new categories has are have be declined HypoPen published the products clear, report recognition requires stages awareness not with and impacted written prescribing as otherwise in relevant marketplace. in brand effect down so, brands very to the prescriptions offices to that in by said – is X visits launched and utilization. additional shortfall that entire XX% brand According the – be few a have year. in of lot XXXX. fact to doing happen the we're a an this pandemic, and pharmaceutical very across and weren't in do billion Those same That million visits physician prescription significantly I recently therapeutic will to of X.X stands especially of direct over that believe visits nearly a recall. build has newer new prescriptions were projects happening July prior That to or expected to Xeris, through IQVIA, interaction my report IQVIA initial XXXX. and to the versus prescriptions all headline. Before healthcare launch, on That visits due to somewhat our during XXX missed particularly reiterate billion face-to-face would early Xeris factoids. projects new We want been established positive performance our what as year, however, the because generating because total out as

and should note ready-to-use glucagon civil As entirely on specifically, grew introduction want for orders, first impact of shutdowns of the the the during market it country the Gvoke glucagon growth during we mostly pandemic from be restrictions such the as Baqsimi. care impact the products, –I year before HypoPen glucagon summer that mostly year to the Conversely eased market months, unrest, quarter by experiencing and and HypoPen X% is the of the of grew stay-at-home new carried to Gvoke had versus Gvoke the QX of Thanks XXXX, initiated the market launch. through concentrated that of some QX, XX% the only we areas the the launch were year-over-year. – the and as

QX very period. the year quarter Gvoke Syringe total gone the end well. prescribers The the year quarter As Gvoke Gvoke XXXX. grew I've share, exceeded X,XXX. prescribers expanded Gvoke Gvoke HypoPen market XXXX. by at to prescriptions of grew unique during of another said, fourth nearly have XXXX XXX% the traditionally prescriptions XX% Pre-Filled despite to weak these XX% end and headwinds, glucagon in more total we than the glucagon and QX launch Gvoke Total in XX% increased fourth grew In from

how We well through with This immediately strategy maintained and grow engage and invested our of media Gvoke patients initial very significant and of healthcare XXXX closed influencers. glucagon for consistently initially so and launch to At to Gvoke high momentum engagement Since Baqsimi Gvoke paid-off initial effort community, of virtually to to Combined converting quarter social of emergency coverage allows the us the So kits focus face Gvoke we team's in as do prescriber approximately of the across to We providers in brand. challenges? Gvoke. and PFS, to the the on focused commercial access XX% the work and Gvoke payer end generated launch well were virtually lost number it able share diabetes awareness unrestricted share virtually, ability significant a of payer community Gvoke our community when which We even also pent-up across steadily year online of expanded established level initiated and and We launch XX% restricting today, through digital through ended of the practices market Gvoke. kits since second our and demand all with in into the the were XXXX. tap marketplace outstanding maintain we types. of access. the physician have almost as to XX% their of when for legacy do July. HypoPen Gvoke

established to and these continued during also dollar diabetes trying zero to times. our with We people program copay day, aid this

ensuring low both the on concentrate episode. patient As beyond, prescriber are we we the our such community, of having product, on at glucagon reinforcing look will blood of hypoglycemia event the sugar available that all of ready-to-use severe rescue severe Gvoke patients a HypoPen for for at risk XXXX in and therapy, insulin all efforts importance and promotional as

on of As six have them in million a X.X States, the than million reminder, kind, hand. glucagon taking and there with not United any do are of people approximately diabetes insulin more

insulin, clinically defined hospitalized one a blood deciliter low States on the which the at Sadly, anyone be and of blood at Yeah, over glucagon. XX of a year below have milligrams as hyperglycemia, every prescribed are risk, people per from remember, guidelines sugar, glucose of is XX,XXX why Let's hypoglycemia the XXX,XXX insulin risk therapy people number significant is therefore every ADA of only from billion. approximately those side and in that cost effect $X.X XX% year glucagon result, severe die at available. United as

takes hyperglycemia focus have Gvoke to very on healthcare of at people's all lives. will safe reduce and real risk, of effective prescriber Our are This patient simple increasing awareness and with patients promotional diabetes available. on educating their that severe a and have to mission and impact taking option insulin providers that glucagon can deserve this

effort, prescribers healthcare to to professionals in like To is prescription aid sales the expanded through HypoPen. written insulin XX a ready-to-use message organization Gvoke also Our more clear. a totally our reach should by for of for inside the be representatives. our accompanied virtual prescription we've glucagon Every option, sales addition

use who glucagon, of caregivers so and patients of patient taking that insulin hand. voices the population, more importance Gvoke, understand without on amplify of to plan the also We the it having

that specifically, in our the we to reported quarter IQVIA total recall call, products financial particularly the our or As discussed such turn phase new you performance, on as disconnect as between we Gvoke vendors, quarter's Symphony, such net last sales attention of HypoPen. prescriptions third-party fourth launch as by of may

We due have likely is to much estimated actual a provide I nature as This projected lot of clarity on than this prescription prescription and growth or want to volume and rather the questions of as volume. possible.

during of experienced our As we expected, a fourth disconnect this continuation quarter.

the the prescriptions. equals a sales of wholesaler reminder, net shipments number as and not Just

impacted third have things in quarter. change We sales quarter net two the the to that fourth

and in highly inventories, anticipated of and HypoPen seasonality. context patterns quarter back-to-school retailer the [technical first fourth build than of obtained in lower factors QX my from the into is front is difficulty], program in and wholesalers. these Glucagon historically to the the continue the goal just quarter provide play here quarter in normal of wholesaler launch buying to buying Once third will to again, and into lower buying First, Gvoke some variability market early to should stabilise, seeing, patterns a do we're should data seeing -- which should probably with Overtime, monthly in more narrow, is has near-term. information launch stage we're That and and Gvoke's lot of lack reflect most seeing said, encouraging. wholesaler database -- February of recent the our what databases we're history. the the the of although, growth, accurately third-party not gap this

is we Glucagon in recent Some ready-to-use our the quarter, to -- in is of our final And in appear received healthcare claims could virtual that very of We've up. for XX%. month include hub the a trending with Ogluo approval the beginning to the leading Europe into data the is trending zero dollar and up, that, for also professionals glucagon. be script then quarter EU, last bode up, field up. to and reserved engagements trending well the second share weekly indicators market positive overall is -- fourth to we activity the up momentum I'd copay move With and the like opinion trending

materialize. ignited a additional we with the in community EU we product which potential also all legacy for pricing encouraging. countries, in country-by-country EU at Simultaneously, been fourth such, believe we launch option compared As insulin and for premium or encouraging to discussions fact that commercialization actually preparing -- licensee to their vaccine find partnership better taking not should very now has added the plus is however, we Iceland. is partners. Europe the to approved on the as have and quarter basis, partner actively that of kits, the commercial seeking We're XX That beginning granted, a launch are is a that Norway which has are reimburse a that, we launched at-risk

to Moving of the we Phase the our interactions designs either as our the are each XXXX, end FDA three the not and study early programs. telephonic or of for in these on X the reserves pipeline, of all pram-insulin meetings at Because writing, PBH, to align meetings with and programs; January, with of EIH those face-to-face had FDA. pandemic, on planned in on or

of We responded costs, design and second forward Based EIH forward into to from initial the expect feedback, will Phase the each we PBH resolutions for have that study, to final on feedback on for each either potentially final have program, take X. and in quarter path the the or FDA XXXX.

commercialize plan a once As X Phase and for it. actively partner the will we pram-insulin, is clear, further seek to develop

had advance have are previously agreement XXXX In diazepam X year the an to XXXX. for have well. as Phase of summary, that suitable in faced we and we -- partner a looking impressive program we the that an FDA we program As with discussed, the in spite for challenges for

quarter in for Even challenges advanced expect prevention as first part commercialization demand for XXXX, still fourth brand, and/or XeriJect Europe seeking select to are in of Ogluo the ready-to-use hyperglycemia, and pipeline partner programs, in development aggressively platforms Gvoke external into our -- persisting we the and partnerships. launch for through glucagon XeriSol the grow and of advance and prepared development internal partners technology steadily

thank want employees. take call Xeris turn to to I Before the Barry, I to a moment the

we the have today. and and are during ability the pandemic be it the we all not has achieved talent been be we We of this for despite successful to year. I'm and not of challenging commitment our people would have in proud team's where place, our

turn a health we go execute We I'll on our to the to of financials. strategy our have our great XXXX. prioritized and setting the communities continuing to while safety Deutsch employees up for and it and Barry over serve, through

XXXX XXXX Total and net sales all and time prefilled and Gvoke November patient XXXX the these chargeback, air in of wholesaler Gvoke people recording which the ended during the copay sale in in XXXX diabetes pandemic, the and other allowances million some We sales severe product apply million significant million ended the XXXX, and We gross allowances. assistance other prompt estimates copay rebates, Net determining respectively. Thanks, payment as $X for and July XXXX are were December such returns, fourth million particular of and customer. HypoPen, $X.X – COVID-XX sales commercially judgments XX, programs of or Net at were and of less product launched implemented Paul. hyperglycemia Gvoke program represent estimated XX, syringe sales discounts, December treatment with for $XX.X respectively. quarters of $X.X Gvoke the for respectively. $X.X years for

for moving the million December we ended ended $X.X XXXX, under to As which year sold XX, will allowances the million. refine million first was obsolete have million. information quarter limited $X.X good Gvoke these forward have costs million goods of inventory of with is overhead inventory XX, launched, to product XXXX, was December good estimates Cost for December Cost excess XXXX as $X.X available. and quarter the included ended continually becomes sold the we obsolete $X.X history of $X.X and more and was included to which XX, sold of for related million and excess related regard $X.X cost absorb our

sold, commercialization for Gvoke respectively year million, $XX.X were with the For expenses XXXX, expenses compared XX, prior XXXX, million, the trials. initial expensed primarily expenses clinical December for and decreased to for were cost driven $X.X our quarter Gvoke to development for Chicago. initial batches million, million December a decreased decrease partially laboratory both the operating and quarter expense. the quarter quarter trials December incurred needed approval the in year and to preclinical Total and sold million and of full year clinical period manufacturing $XX.X the ended to expenses $X.X of trial XXXX and Quarter and was to respectively, respectively needed relocation decrease XXXX. million, costs for incurred $X.X the million million our ended same the and under XX, our related XXXX full million XXXX associated personnel XX, costs facilities The year by ended the Manufacturing year for R&D offset Diego supplies $XX.X clinical and incurred of San in XXXX clinical expenses year fourth was full full reduction quarter of clinical to compared XXXX to manufacturing and which year million significantly for research decreased in as expenses and and expenses The and and trials expenses million XX, from prior preclinical by included goods XXXX. overhead in in $XX.X to with for R&D ended December million. an cost $XXX.X as and restructuring primarily of of was $X.X goods associated and the commercialization, in were absorbed in by compared periods. reduction prior and certain allocation of driven trials, the of increase of full manufacturing batches costs $XX.X of $XX.X supplies fourth $XX.X

ended of partially interest $XX.X XX, in support to incurred to due increased Covid-XX compensation Gvoke in decreases increase compared is and XXXX, The an period compared the XXXX, prior the both same to to June offset entered and has stock. convertible million finalize concluded of comparison the efforts XX, debt selling $XX.X have stock. expenses related extinguishment December facility, launch and million November expense on to a compared the Gvoke, decreased approximately certain increased December the increased borrowing we for into in by conferences under studies notes of issued for common XX.X convertible shares million with company's via agreements year costs, Pursuant million And have debt. conferences costs development levels senior increased as million, prior for decrease year year XXXX, of quarter on so on $XX.X offering Approximately the million principal clinical the some due ended XXXX, $XX -- expenses debt administrative debt exchange the notes. were expenses million related convertible exchange Gvoke holders fees, notes related XX, to and Interest requirements. $X.X of XX.X As primarily To-date has XX, administrative marketing, and million, the in of million. debt our we of and in amount the FDA XXXX. December did the of $XX.X exchanged general agreements, a of expenses, Xeris forward $XX.X $X.X to XX, commercialization decrease initiated ended $X.X by of general the the for the the extinguishment to the year agreements Covid-XX with that on $XX.X of million programs. due the company increase primarily the in the XXXX in programmes entered million of loss in pandemic. Selling, the the we $X.X of on In all to new and headcount the $X.X to in to of ongoing into no loss discussions were go the separate amount our partially December additional of been registration programmes offset due aggregate XX, converted principal year. in company's million to a the to FDA XXXX, with when and and of negotiated Selling, converted issued of conversion notes costs of particular, pandemic. year due loss million approximately initial convertible holders newly million privately prior of company's initial common shares driven launch ended the for personnel

October, As senior balance provided million. XX, in of of facility $X.X our term loan, the an notes drawn that In December $XX.X was amendment XXXX, to was which additional outstanding into November. an debt entered million we for convertible

the or per XXXX loss $X.XX million was per same months for debt As ended outstanding XX, XXXX. December share three period $XX.X to $XX.X $X.XX the of was $XX.X million. XXXX, XX, Net million in or share for balance under the facility the December compared senior

flow share Paul. requirements cash months. revenue capital and loss Gvoke at of our the our determine equivalents XXXX. full back $XXX.X the expenditure the will us for Gvoke per XX, XX fund be million turn as next XXXX, million to sales cash we in XXXX, that $X.XX call The of enable the I believe of from equivalents December investments We and $XXX.X breakeven. compared will or when compared to year we $XX.X and from $XX.X expected was investments cash of will million shares least million. For XX.X Revenue approximately will is operating cash February XX, for million full $X.XX number outstanding and XX, year. or held to net XXXX to per as December share cash,

XXXX Thanks of we we seek grow Barry. presented us. partners impressive year as the previously, continue steadily challenges an In pipeline to to in in development still Gvoke our conclusion, to commercialization brand, I expect for had for -- the represent spite demand programs. XXXX, said In

I in or As continue will prepared partner Europe, to to I We're launch to hypoglycemia XXXX. external of now glucagon progress and advance said, success to technology open prevention for and forward questions. advanced the platforms ask our year through looking another operator of in And ready-to-use partnerships. it up for

David [Operator Instructions] is question Your first from Piper Sandler. Amsellem with

line open. Your is

Thanks.

Gvoke, of does then about a you here. the destocking you And think -- additional you any think XX terms When can of elaborate, are in -- should free, role the that? just all talk That's to secondly, real sales right of So, can where quarter? more we you levels of how sort that seen talk mean, I the reps are there targeting the about mean we inventory there Thanks. few trajectory and they're in you the one. management, stand now? first And if and elaborate on if how organization? then -- how envisioning expanded pressure many Gvoke, lastly, at of prior utilization, ops, doctors hassle about access any should number unrestricted have kind any And can just is you XX

better get get or to to XX% Thanks -- way of in one as of prior good therapeutic XX% no non-restricted, at get can ability prior just that There's coverage. a will David. I'll require as in as to see do are nothing we small patient's industry in is course. Gvoke you a category. about that step authorizations, just take the plans first. there's about Unrestricted unrestricted Unrestricted, Rarely of it. do authorizations no There upwards matter any the some access,

as So, good almost that's as gets. it

cover either computers, terms expensive, don't only. Zoom their the to where either regular places breadth inside of a representatives, reps in XXX% of doing they with the virtual, have cover sales our or -- additional they their less field. get we and They're two rep, doing a own in combination emailing, of depth field -- lot more the to or partnered on And calls, white-space doing and coverage In field phone, calls. they're are they're of the teams FaceTime, are these three additional on

the of from think can in email. I of we're people we the trajectory we a down additional phone XX,XXX wholesale neighborhood quarter, the its or at to work moving first Gvoke with terms XX,XXX beginning we that That's then And worked upwards back start saw fourth buy in by these think rest significant to then get quarter, XX,XXX through of XX,XXX can somewhere inventories, the the to to in targets, of get targets should get things fairly probably way in the normal. the of HypoPen will in to itself launch. and we see I

Okay, that's helpful. Thanks.

question Your next Leerink. comes from Ami SVB Fadia with

okay? me, Hi. hear Can you

Yes.

of you of do to be of with PBH the levels a the for and separately just to Can do line just Exercise-Induced the least it at, from to there? do the two, you would that us what Bariatric EIH, one like update kind great. more you with incremental to more the do and follow-up that regards seems state? And sense just pipeline, you to initiate or of the have a where you the steady implemented regard intend some with of study in a whether gave the think give updates FDA been the think Hypoglycemia from there get inventory we question. a is Thank are Okay, a Maybe previous in before you. channel at you destocking simply demand type that

try but bit, breaking part to a up second answer let you Ami, were me the first. little

We're Hypoglycemia Exercise-Induced for to FDA look Hypoglycemia and Post-Bariatric the what alignment stages in quite of like X discussions trying Our on the with Phase have gone will program the well. on get both. final

probably before, is It most potentially we'll to is could second the quarter. we study straightforward preference, take we've decision forward. that in program Hypoglycemia Our And said as that Exercise-Induced the do. make

and as the inventory, through amount first little a fourth large us let them wouldn't way the pretty the should equally As describe quarter by it it as end in to of get – back tracking I a this quarter. We of into quarter. inventory, far bit the quarter

IQVIA it anywhere until to from have gap And narrow, still XX% is know, buying going history, you to As not time. will XX%. over more that understates is we and units more narrow but history

have more Okay, great. I one question. Well,

the doing economy obviously on Can marketing the You indicated will about ultimately come significant more what you've up visits you sort front first to to in and start this of as opens come market from the are back? and in physicians drive overall put talk insulin market expansion. the you as potential that that growth,

Yeah.

the imagine said if we've talk on they've number important they're to insulin things. thing. focused And on a a attention endocrinologist things sure focused of CGM. past, the not That's take making that virtually. during you that got talk with with trying there They're really a on has the if of actually They're They're at if initiating diabetes, people of lot to there's their paying they've as lot just pumps. very of can new to now maintenance do least small that most focused a sure insulin. XX CGM, They're the focused care on physician got getting about. anything, pandemic, are to to patients And in them you the person much to they're patients. As mode, making is the

to you glucagon. was the saw pre-pandemic, when to new us you almost XXX% Lily double-digit back growth with go and actively physicians, detailing in out were it market. If face time to And face in

most professionals to of into that quarter, the hopefully, So we fully growth market healthcare face expect we'll and the that of as now, late back do field, early been continue. easiest legacy second been our thing we most do quarter, to when get you out and be again, converting to growth some third the the of will that face change kits. has That's something Right can't get with new. physicians

Thank it. Got you.

next Stanicky Your Randall is RBC. from question with

is line Your open.

the ahead more Generic are and Hey in Zealands Kit. coming you or month, one. be of how this once in Yeah. more it go you then thinking good. late there pre-pandemic, is the later price prior dynamic was that pricing And -- two, to the where a thanks. Thanks. impact potentially pandemic could we to expansion question. well? from follow-up expect on Number market That's product back past I in back-to-school Paul, also you’ve some catch a the guys Do be there Great, the But greater as expect there about summer? particularly is about Amphastar to the think Emergency do thinking about Glucagon you specific voices up in should season number talked just lift, with the and market

Thanks, Randall.

ready-to-use at-risk are market, interesting both the new and physicians of blood are patients who severe helping terms have sugar, blood why, understand that low it's out talking has available Lilly we now sugar companies, been on back insulin and and patients been, and are for primary to options both them In should low assuming are message it. our and and

As long million our if there six as including that's both handy. who are have glucagon Zealand, message, companies people don't

-- when saw dynamic kind of So we we fully expect same that reignite. pandemic before would the would the

assuming and to low double XXXX digit we're case, the accelerating. low first by saw XX% that's out XXXX all XX% back turned March, and growth, months again, was couple teens doctors into of a into at was a growth late in the in you mid a what turned it talking growth, Assuming

would I really post-pandemic. we schools the is to to think So far reopen. thing to it's be going back-to-school as concerned, hard expect happen Including, not for same as

if have to the that's that the August, So that a we're period. expecting of anticipating case, schools comes September. normal be majority again, open we'll up, back-to-school going are more We're

So very that's encouraging.

As is, been the generic the new that forever. kids generic, far way guess, have to answer I only the as

been You've the always price. it's same you've Novo the spend got got kit; same Lilly,

sure is of that that their and patients their be glucagon. product And multiple Gvoke risk severe and there's impact HypoPen the believe of in is for who the have going most it's some of glucagon, enters think X I new generic, ready-to-use it's to patients some it's an option I will then do form the recent going to much don't situation, million don't for Lilly for to on are at ready-to-use we hypo options form And focused to yes, Physicians for and think, glucagon. on that have the products available. be if best believe I any Novo, going going on positioning positioning effective if that market Zealand the making have not be, products. patients who have

Thanks. Great.

Instructions] Difei Group. [Operator Mizuho with Yang question next Your is from

Your line is open.

question. Good taking my morning. Thanks for

exercise X on for phase Just phase program the you duration a bit X? about this induced hyperglycemia, talk would the of anticipated

least the months depends patient it to Difei, of beginning phase depends it numbers, XX we're at on probably I on end, in think final recruitment rates. looking trials kind the at X

that see wouldn't program finishing years. two of us I inside So,

There's are convert Okay. there when Then debts convertible do separate to time's right? plans -- debt. question Thank have outstanding, you. convertible the you still the on them

big So still I try convert out there no the equities there, of couple to at have to moment a date conversion away. still we that is a -- The plans them. is chunk we, years

plenty to couldn't the second do your to to we fourth the in the way so a a little if before to going those. of decide time by we've take the on on get we the question FDA So what quarter, started quarter, even with exercise get first sometimes time. got it's And a with study study, final

Okay. Thank clarification. the for you, Paul

Our Capital. [indiscernible] Jim next from is question

is Your line open.

Good morning. you. Thank

What would on led stock shorted to convertible it Just that prior appreciate the you the convertible a of comments you to fees to be your on the from remainder, list, in following initial show that? call direct seems doing preclude regards the equities constantly up like on what against debt. continues

so number quite it aggressively, that to went you're if shortly short were There were several following own. was stock you obviously our to stock, on -- a equitize up position had stock pretty their done. Jim. were The Yeah. after borrow on the convertible factors, We who was it, of -- made our the price bondholders, in -- convert just if That high. approached us deal or our you

to were thought that, out to chose on preferable the to high. so we once of do a rates see and borrow that larger of early the the them again they few equitize high that, at remained As because we a -- if reached wanted to to was holders result of company. Several

of of those currently at the So, are the they -- holding, people money. they a lot well. in The did -- but bondholders the are end who day,

by out the way So, borrow of short sort it The the It the position high, wasn't came marketplace. us was something do. was dynamics to set high, of we of to just circumstance.

Thank you.

this turn have Edick for back further closing I no We At the time, to Paul remarks. call questions.

Well, attention. the investments again in say paying everyone your And forward you your interest for I'd very and the to appreciate in look We discussions future. you the company company. We like we listening. thank in much. to appreciate you to Thank

today's conference concludes This call.

You may now disconnect.