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RVLP RVL Pharmaceuticals

Participants
Lisa Wilson Investor Relations, In-Site Communications, Inc.
Brian Markison Chief Executive Officer
Andrew Einhorn Chief Financial Officer
James Schaub Chief Operating Officer
Randall Stanicky RBC Capital Markets, LLC
David Steinberg Jefferies Group LLC
Ami Fadia SVB Leerink
Gregory Fraser SunTrust Banks, Inc.
Call transcript
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Operator

Ladies and gentlemen, thank you for standing by, and welcome to Osmotica’s Q4 2019 Earnings Conference Call. At this time, all participants’ line are in listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference may be recorded. [Operator Instructions]

to Wilson, conference Pharmaceuticals. Investor like speaker to now Lisa today, Relations would hand over the your I with Osmotica go ahead, Please ma’am.

Lisa Wilson

year Chief Relations Schaub; Officer, for Welcome fourth With Officer, me call. operator. JD Osmotica call Osmotica. Brian is end are Andrew Markison; today’s and Operating Osmotica’s This Investor you, Financial update Officer, XXXX Einhorn. and Wilson, Thank Lisa Chief on business Executive to quarter Pharmaceuticals’ Chief

results issued press section a be three press webcast This for afternoon, osmotica.com. financial December This the the of and detailing XXXX. of the at website release ended year Investor company Osmotica accessed through can months release a the this XX, call and

statements expectation, statements today’s a by company’s made that Securities express Before and forecast, future be projection, call considered on forward-looking as to get we I any would conference belief, started, or performance may the like Litigation events defined intent, anticipation future Reform regarding Act. Private that remind the everyone

These future those or statements. of results noted guarantees not required forward-looking law. these as involve the by including to materially Such Osmotica with statements based uncertainties, SEC. Osmotica’s from to forward-looking Actual press and risks today, are available update those as differ projected the specifically may obligation disclaims performance. intent forward-looking information of in any statements, this except and management our and afternoon’s forward-looking release filings statements in on are

this osmotica.com. of webcast be for website, archived The our will days available XX call on

on recent made reference discussed, to XXXX. then, and please the topics the the and this listening filings. was replay releases XX, to of so company’s or Since may recorded webcast, who have call the announcements SEC most be may For archived press held Osmotica related benefit those March

Osmotica’s Markison. with Brian that, call turn CEO, over to I’ll the And

Brian Markison

Thank and joining and today. good thank call Lisa, afternoon for the you you,

progress of remains track. execution make our on pipeline late-stage to on continue corporate strategy excellent We our and the

Starting filing for ophthalmic date blepharoptosis our the our novel Drug droopy With eyelid, grows New we build the to the all year interest ophthalmic once-daily company’s XXXX. and a meetings the or for physician acquired at XX, goal treatment medical respect day. with the RVL-XXXX, last accepted of July continued by have and major of our was is Application consistent to filing presence NDA,

clarity, our gaining Additionally, months, the commercial strategies. coming feedback. detail gather pricing market engagement early will greater strategy distribution KOL provide is research we greater and additional as the we company’s and around In

in treatment we be excited this especially eye droopy We anywhere world to for no are introduce the plan product, and pharmacologic genuinely there to since is first. the

to another on Sclerosis. exciting for our Moving Multiple extended-release, arbaclofen with spasticity treatment pipeline in patients novel asset,

June the a the a have Following year. of path November, meeting NDA last Type this FDA C forward we end our of by we resubmission for with believe

Study will The for day. of versus XX that main the be Scale examined support strengths a placebo, Ashworth elements and per day submission milligrams XXXX, which improvement arbaclofen this the XX twice modified in given both and milligrams

a X-year The per be submission patients study month will milligrams is safety which this will major XXXX, second day. close this and with of XX receiving Study component

to important note recommended is baclofen insert. the dose the double is dose oral It highest from that this package approximately

somnolence low meaningful, incidence manageable. The than particularly year exposure, very could dosing was over for side flexibility greater this of subjects of which tolerability addition meaningful those and who effects, very have XXX need with spasticity. of make We post-titration a dosing X is the treatment strength twice-a-day to because schedule,

XXXX be and will XXXX support integrated of studies, all previous utilized our summaries to the safety and finally, And efficacy.

to model catalysts, more of Looking as of a we RVL arbaclofen specialty ahead, as revenue. ER growth see and terms we in transition significant

and address for bring value patient XXXX care. to year aim we gaps as stands exciting shareholders Osmotica, to be our to in an significant

to more over Schaub, call of will the results. share turn discuss to Chief who the Andy? by He our followed who Andrew JD Officer, company’s like will details as will Operating Einhorn, I’d financial company’s be the Now, products well. promoted

Andrew Einhorn

Thank to quarter of of were quarter Lorzone, lower $XX.X extended-release the $XX.X XXXX products. the you, tablets decrease revenue million, extended-release fourth net by higher compared on for Brian. sales fourth million XXXX. total offset venlafaxine non-promoted for in from pricing tablets, partially of Total methylphenidate revenues reflects The and revenues

million market, during Methylphenidate resulting product Net to based quarter, product return net sales aggregate, XX% reserves related XX% competitors entering in and venlafaxine by additional net product partially decreased sales and during prices of returns. lower-than-estimated and to primarily and offset venlafaxine selling the the volumes, in impacted experience. $X.X adjustments the approximately respectively quarter, of actual by methylphenidate lower favorably due were the on

expenses administrative and and $XX XXXX, compared in administrative by The the primarily general higher quarter to million XXXX $XX.X the Selling, offset due fourth of of million in our third expenses. field-force decreased of the quarter in general of was to fourth decrease the to realignment XXXX.

Research and $XX.X and in million the trials to completion quarter XXXX of arbaclofen. to quarter in fourth of due compared to XXXX of development decreased fourth of the Phase the RVL-XXXX expenses the clinical $X.X million III

quarter distribution $XX goodwill in-process XXXX, the development million, fourth for the and fourth of recognized charges XXXX, of as and of quarter intangible assets During assets. $XX.X reflecting reflecting to rights write-downs impairment developed of and research of we technology million asset write-downs compared

for of fourth the a quarter XXXX in EBITDA was fourth for EBITDA quarter of quarter to loss Adjusted the million, of million $XXX loss XXXX. $XX.X net XXXX $XX.X was compared adjusted $XX.X of quarter XXXX. for million fourth the the compared of fourth to Net of million,

at net a the adjusted see end loss, please or the of our to of tables EBITDA release. press income For reconciliation

XX, million financial $XXX.X full to year-over-year of full year million sales in year as million as significantly prices, follows: ended year decreased resulting by total market, for selling entering for product $XX.X net than XXXX. XXXX; XX% of estimated million were December offset year decreased compared product additional lower XXXX $XXX.X XX, the are Product million sales XXXX $XXX results ended by XXXX net December increased from lower for year returns. the year revenues methylphenidate for venlafaxine the Full competitors XXXX; full to $XXX.X due the partially of of the to sales compared product to the net for XX%

strength period. with a returns realized in competing in by net offset which more negative product affected resulting dosage decreases than XXXX, was negatively than rebates – however launched estimated During prices higher volumes, sales the selling were volume and government lower

Additionally, fourth XXXX, of during third additional generic were launched. from and competitors quarter X of not venlafaxine approved but forms the

by approvals additional both of continue these if from the launches that for and and actual experience. future primarily adjustments net approximately competitors, in generic venlafaxine based XXXX the product sales the future, aggregate favorably will and negatively of during were in venlafaxine affect and products these to in impacted $XX.X returns competition related product year product on methylphenidate our We expect to returns any, million additional well years. as as sales Methylphenidate the reserves

XXXX, launch million associated with severance expenses $XX Osmolex in higher year company. the as XXXX of administrative headcount quarter increased of compensation of a Selling, XXXX ER first administrative for marketing million share and costs in $XX.X and million salesforce the being public to selling, XXXX. The additions third during during to the full expenses associated costs of general increase compared realignment a and expenses quarter salesforce general expense with $XX.X associated reflects the and with to our of increased full year the and

XXXX, The of costs and first in million the in by XXXX. by million the the quarter of decreased offset arbaclofen during year XXXX. not the $XX.X of increased present $XX.X and year million clinical full Research XXXX of $XX.X the of development full ER as reflects Phase completion during development trials expenses decrease to batches in cost XXXX, to compensation of III of compared were expense share ER partially manufacturing Osmolex which primarily

recognized, million fair down During impairment price intangible value venlafaxine the and products. resulting of $XXX.X generic decreases were year, related from the primarily asset competing write to of to due to methylphenidate, volume charges

for in a loss million loss of of year compared full $XXX.X year XXXX. the $XXX.X was full net million the XXXX to net of Our

Again, XXXX year see of million million our of at press tables end EBITDA was to compared release. the adjusted full XXXX. please adjusted net for to the the or a of EBITDA in Adjusted of the for income $XX.X $XX.X full loss, year of EBITDA reconciliation

XX, revolver of XXXX, our cash availability and million. of $XX we December had equivalents As cash under borrowing and of million $XX.X

We also financing had of deferred net million of $XXX debt costs.

Now, JD. I would to call like over to the turn

James Schaub

Andy. Thanks,

All of Osmolex the prescription our M-XX saw and growth key XXXX, promoted continued in quarter. fourth brands, including Divigel,

in realignment national streamline this fourth a and completed field of we in promotion began discussed, of our the second quarter. XXXX, the salesforce previously half footprint within As

ongoing which realign year support believe territories and approved restructured immediate has team provides RVL, a to had necessary We’re our balance if the foundation year. between the decision from encouraged promoted by the key the launch last strong late to brands and continue of to later this impact

continued brands, the Specific QX in Divigel to versus its up prescriptions XXXX. key X% fourth growth quarter,

While over total increased physicians. have new milligrams patients and X.XX both X launched additional brand XX% X.XX we over past milligrams XXXX. full of note, sachets, year strengths subsequently the Of options and for and prescriptions XXXX, received category-leading approval year, adding to Divigel, our

prescriptions April a quarter versus at XXXX looking M-XX of fourth when been QX launched X% year as XXXX. experienced and full in grew XXX% strong having versus XXXX also XXXX

represents for and access X healthcare September. of increase an enrolling, through total enrolled program XXX new terms at the XXX our update since Lastly, This least December, in a last of of providers our or number XXX or prescriptions. total writing wrote practitioners patient of prescriptions X,XXX in in in Osmolex

and commercial efforts have grown refine and awareness experience XXXX, As our we continued behind optimize have to Osmolex. throughout

previously focused the prescriber and to see anticipated. a than patients and expanding pace patient begin continue therapy slower We at albeit remain persistency base, and strong good access once on

landscape. the products to earlier business in the despite and continues generic non-promoted an As Andy increased commented consolidated contributor, in important highlights, buying be financial competition our

and tablets have multiple year, Our key the enter but as venlafaxine ER generics, methylphenidate performed seen last expected, well market. competitors legacy ER

quality our supply to that late-stage pipeline. the We to remain committed we of leverage progress and as the our will contributions continue from and portfolio ongoing portfolio

up and strategic our our looking forward are for are PDUFA date for We launch. to July XX RVL gearing

highlighting As the data. strong at are we a our poster clinical presence with III care presentations described, eye foundation clinical key upon Phase our of including building podium previously meetings, and live program

eye and and product growing remain We ongoing development NDA bring highly care of to is market by launch to ramp by up has a contributions professionals and support potential oculoplastics, review engagement first-in-class our network to incredible. through throughout optometry and we the been KOL planning. to and market, as encouraged ophthalmology forward progress opportunity Further, look and the continuing updates

the will I Brian. to call now turn back

Brian Markison

ahead operator, questions. thank JD, and you, open the Andy. with Thanks, and that, please And call for go

Operator

with question our Instructions] Randall first Markets. from you. comes And [Operator Thank Stanicky RBC Capital

line is open. Your

Randall Stanicky

any seeing how guys Thanks. can share about on Brian, is impact with the great. coronavirus? you the that Hey, RVL? start you’re or for strategy impacting business the I thinking base Are of go-to-market

Brian Markison

clearly, Well, impact and we’re afternoon, – working seeing now. the good home – right we’ve from people got sorry, now Randall

conforming with policies We’re there. are the that out

Our possible sales and to at trying be are home as well, with other as telesales productive as methods. representatives

out fine. of supply quite is And, a our chain We in chain general, ago. got while in front supply

don’t the have looking weekly we much. we Rxs whatsoever. and immediate at we’re any So, concerns anything there And seen haven’t

think demand so we’re on So good. far, I a doing basis, pretty

the hit, in are and the with which staying where community and, general, happening has general, employee will trickle think I people been patients, the immediate in home. productivity just physician down, what’s

we like point that’s shore the here. boat But can as at I we’re our together on some as to think all going wash close it. to and sort up of in same others we’re staying So

Randall Stanicky

Yeah.

how obviously, think thinking the July terms go-to-market, big to the about you evolved in looking medical that’s roll aesthetic As and that going you’re a of opportunity versus out? be your to RVL, Has event.

Brian Markison

to which evolve. and between agency Well, Yeah, We’ve more that checked guess. questions obviously, we track. moving minor us with had answered normal she continued track. every well, me I when be us and time. everything that on along on is in thinking manager, the start last our was review, assured discourse has, FDA with with And we’ve project seems the let is the day, obvious, to on We learn

our if be we’ll of. for that it today, has Now, which looks July obviously, as But goal something repercussions here the that’s shape COVID-XX is greater date, we’re agency, like in in we’re XX. mindful sitting good

bit? think, preparedness, a I in JD, on to want jump commercial little you

James Schaub

Randall. I with consistent awareness, the disease some development, market our engagement, calls, is focus around Yeah, sure, awareness education, hi, KOL medical unchanged. recent of and mean,

but familiar be to the the more the optometry, buzz, with care continued I eye practitioners think working the oculoplastics, just condition. we’ve not really front more and of across ophthalmology in out and specialties creating and in the and product, meetings, physicians the getting

That continues to go well.

we’re I therapeutic and supportive new what think intrigued to to market. doing truly refreshing it’s to folks exciting. be bring in of trying are with It’s in area that

side, commercial base remains from expectation the on the as that the Beyond eye-care buy-in the professionals focus.

about fits an how think asked a as I it product. you versus medical product aesthetic

I associated activities, start strategy product think crystallize the to launch really as the here and itself other But of is we’ll of medicine focused does from the ocular intersection planning to and at through eye-care the think on shape community. the aesthetics. research what buy-in itself and market continues and take our refine sits ocular I some stay

strategy. of And the the upon optionality that really market into position over that and important profile flexibility how product terms build of remains aesthetics we it, so foundation to in the time, and and the

the aesthetics like, get remains from go-to-market strategy care on longwinded, folks care, important an embrace eye and take to block of standpoint, foundation. practitioner over the focused time product looks is once building in eye shape the to what a that we for profile build and and starting So terms

Randall Stanicky

maybe great. a in finish, That’s Brian, And expecting? announcement you and then, regions in partnering Thanks. are to what confidence XQ,

Brian Markison

pretty great, meeting good with was because travel their face hit got high. pretty but focused hard. strategy, us. we’re other side are appreciation to our a the still partner geographies face is than more conviction is metrics part of hearing for important key the other on of and Clearly, process the go-to-market and financial to Asia A getting feel and Confidence

soon. to think I recognizing not that So we’re anytime going that’s happen

the moving certainly pace I’ve to revise a that partner adjusting little a think told out we’re to we’re bit enough our are not But I for ex-US, but described. delayed, And kick at So Street. or a me conversations, that. to quarter what me I’ve

think interest people. take shape thinking And we’re I to and as think options more reality picking considering closer gets market, other and to more the and of with up about it because asset other also this the I in well, is again U.S. we’re one-of-a-kind as beginning

Randall Stanicky

Got it. Thanks, guys.

Operator

comes Thank Jefferies. you. question next with And David Steinberg from our

open. Your is line

David Steinberg

Thanks. I have a couple of questions.

them? has to to The the granularity, with reasonably had dialog you more, X partnering mentioned little that project FDA looking get companies said large sort ex-U.S., talks and looking And some is more multiple around a interest then you manager But to that from with comments you discussions X Are going the revolving on first just a call the have have was well. still more or drill And think structure you cash to near Thanks. one in the any had talking have regard from and term weeks? secondly, in or perhaps previously? are I interactions with Japan. down with last of of changed you more backend there with think, you during these them you from upfront? the last Do a Are discussions what you’re at? your that regular I just the lot

Brian Markison

David. thanks, Hey, Okay.

review, for the it there been NDA, with communication the ultimately we think then filing to with the November. respect forth, last routine was back has and a and and accepted since So agency I the submitted

exactly questions information a nothing have chemistry X of day X We couldn’t or them have around answer two, clarifying or timeframe. requests. within manufacturing, All specified that we had been

So specifications I things of all questions routine the that, view and like around product just finished the clarifying and major. nothing as questions,

that was conversation she any the not that of from information pace expect, And we in a did itself, that that talk at was around she at middle division and us outstanding the should would this June. requests time she proceeding to project looking we labeling project and you assured everything said week, be totally. manager, Last at we a review

Obviously, to so but on guarantee front. change, that not far subject so a news and So that’s good. the good

the I do Japanese ex-U.S. to application Secondly in filed. an think be bit a Japan, at before on will of little looking partnership, specifically they probably subjects work need clinical can

could requirement. U.S. extra and year So far a have China might the even satisfy study market. behind behind as And would a package with with little that may certainly information. the they’re that probably or Korea be we very two already performed not U.S. bridging file

are this to that be our could well, handle the time China change. leader also with partner to eye but market, So in yes, well. Japan, and in conversation I that time care China Japanese would But a multiple with given as think multiple we at in players can as preference

also upfront And so balance. or milestone-based I partner in for that believe perhaps it beginning. be very will ask. think road think at it some traditional the a the we’re but our looking or obviously. from I those construct, to and into certainly be will place down to We I Chinese a Japanese getting we an certainly partner supplying want royalty, also money have country, will of subject There be markets, milestones make will manufacturer But approval the our in royalty that certainly and

David Steinberg

the clarity. Okay. Thanks for

one extended-release arbaclofen some you the have ask light you said, at maybe okay But you and it it FDA, and have discussions for they can them, maybe you’re going been sure, filing mixed? file file some and of one is and you Just can’t. essentially positive on Or on of study had and more question file. Thanks. on or just was we’re your product. more What they with to data shed this the to In so say, and the filing? study discussions that then given you filing one said, go extent did that looked

Brian Markison

but I question. hate a that’s good to question, tell good people

what us us that the on a focused see rely or randomized we on rely until next they the and with dose, database to was of they to which because second lock the want to were submission for very our our what feedback study safety agency little XX-milligram totality effect want and later of file and on. about, not X-year use they didn’t And month, us on and study back on we X-year did to summary how for what is we our is timeline So what on the clear came see study the safety all strategy, comprehensive And safety, pivotal to complete, week. this like the study database. agency rely Ashworth plan efficacy particularly to filing with is really our large the bit us also integrated made to a the and plan asked in they input

So lock X.X in months. submission we’re X going to go all to of to database from

clear was clinical see agency an wanted additional not pretty what They in the to So us. did they from request trial.

So are we’re – excellent sort know proposition we this a clear we have that. safety dose-response buoyed very of by we for describes And and got and our a efficacy, we package believe relationship. And we’ve product. value a that

we are encouraged. So

risk I others is in their fair. that think have you the adjustment and used modeling

specifically And in ingredients I’m agency C got are The guidance. and very comfortable gave excellent lot we do and for submission. the from feedback and was very guidance, planning with us We quite we’re of and pre-submission their them the where information. gave we the it a direction did agency their a Type was the would got tell using meeting how us, them response to we we it file. our they we But the thoughtful were we all and and in in to

David Steinberg

Great. a lot. Thanks

Operator

Thank SVB our you. Ami question with from Leerink. Fadia And next comes

open. is line Your

Ami Fadia

for Thanks afternoon. good my questions. Hi, taking

have if Can putting you the salesforce the talk should about of readiness that think next date? couple you think planned next months inventory And the disruption? about whether in in start place couple the could also light that’s planned that? And to something just that’s been RVL-XXXX. already training the that’s together of we ahead with may of how – the COVID-XX we in put that in in weeks? just should talk And how about if PDUFA about Firstly, of and been of or you launch and

Brian Markison

COVID-XX, I I’ll start situation. all JD look, will fluid in and pile Okay. a in. it’s Brian. we’re with Ami, it off think, But

of the all face-to-face, plans our in huddle a before Labor that. our launch that decisions, August, shortly adjusting day. looking end all And we’re harder the begin if precise The revisiting course, profiling at Day. room plan after the and So remotely, of the it’s we make working to to training a are we’re up every all of of probably occur was culminating we’re either in but at, would salesforce, meeting customers, that to or

revisiting obviously that. are We

shortly prepared We format in will approval any be under launch some to circumstance. after

to we’re launch What product, in constrained ways different analyzing if still a the are situation. we’re

money we train other call words, obviously, in when and interaction maybe a account. to what for in launch the back a it’s Do on we’re But I face-to-face otherwise. be will taking validation into weeks. a, than to hotel? environment? I things these know So get do level, I So approval, want a run going little Also lose virtually? that in, position manufacturing, will bit batches to a is we’re JD we to I in at a in want people you And softer few on things, a launch some push I want Do chime second. cherish a would richer to

has the And from enough us for pretty demand is a asked them we will now, important going have in than XX/X. production at to commercial because line moment. this they’re the do and to right very at all The We’ve news facility in Nephron, albuterol, good agency is for product more is, and supply. high is into stay dedicated got a right their which validation

with the So that only agency we’re excited working they’re very closely we’re demand that helps in them and us. with

So more JD, on bit a little preparedness.

James Schaub

preparedness, think, Brian touched I Ami. No, on

to continuing training and perspective. are We sales a prepare readiness from

prepared of you’ll to being plans in to and timing Brian’s think, comments. terms see date go post-PDUFA I stick us to those

nature of plan is from and continue want the and we and training the extent of perspective. overall But things nature of all readiness of reps and versus on the the of I launch. commercialization impact what around deployment, an think the just to with impact that how to be virtual track our a on do to impact planning the engagement kind function things really of and personal

Ami Fadia

That’s helpful. it. Got

of focusing product. to and the switching aesthetic to on the ophthalmologists from positioning with of Just more pivot regards

Just cycle based do think terms switch around additional gears change effort? you’ve on the thinking and in focus you the when product might you done of this, that your sales that in

Brian Markison

Yeah.

So shift point and think, think to would we the be market about as to the endorsement it think clarify, ophthalmic it care focus, so going professionals, I think right? inflection right gears this now I built, would be eye is And is I because don’t the change really an drop. by

so in ultimate of I important And think beyond the popularization and anywhere care. eye terms adoption that’s

So it’s really more that of we where look plans to as a build. this And I follow over continuum. think first as launch of and we eye-care on months, through XX beyond strategy, be out get practitioner the the headed the is to market indication the and a XX will professional good and

Ami Fadia

Okay. That’s Brian. helpful,

Just do question the ad-com you approving from the on before, the just FDA product? on from as an a last me arbaclofen, process building for anticipate from question

Brian Markison

Not at all.

Ami Fadia

Okay. That’s helpful. Thank you.

Brian Markison

would I mean, is embellish, no. answer I but short the

Ami Fadia

you. Thank Okay.

Operator

SunTrust. question Thank with Fraser [Operator Greg from comes Instructions] Our next you.

open. is line Your

Gregory Fraser

you you’re that you thinking questions. if on Thanks discussing options taking when bones thinking some there the the ex-U.S. as options put wondering the about that mentioned RVL, for you could Great. markets, well. in terms U.S. of about. the was I On partnership for you’re were for discussions more meat other

Brian Markison

it one exposure had ptosis, changes a is community with conferences, happening this a better. person’s as and that, the clearly, look what’s they lid, medical quite the that’s drug And and frankly, appearance. the they our meetings the of it all if inescapable works and to Well, as result lifts thing eye-care

folks think in lot aesthetic implications catch product pretty And the that there to field. other this a are beginning are we out from I of attention interesting. So in

of So, again, in-bounds. lot we’re getting a

something couple in unfortunately, in that we’re a interested It’s of real in can more field. have these three. one expertise open And, look, any learn. plus in-bounds. if receipt this on can’t equals There’s wide early to of shed really always extraordinarily demonstrated to our I it. light very partnering folks talking We’re we one But

Gregory Fraser

color. Okay. to published? That’s helpful RVL the you expect be do data When

Brian Markison

I to don’t JAMA – want And drafts submitted We give I have Ophthalmology. wrong... final the JD, to

James Schaub

No.

fair it’s at we’re publication think standpoint, Greg, I from a that early looking spring.

the months I of current the over journals. So care couple one next the publication for in is eye of leading think expectation

Gregory Fraser

Andy, And any okay. couple you in Got for for expect from returns to should declines? think Thank reserves XXXX it, then, as the contribution about products and VERT ER ones quick do coming just about you. quarters? how additional we those gross of And meth adjustments comments in a margin

Andrew Einhorn

put second more XXXX. initially would possible the we It’s what And, I that XXXX. than your we lower Yeah. question, levels anything expecting up. assess can Thanks, not the the question? that in certainly what we expect But various we quarterly we prices A activity happens To of down, see returns of was the share noted have returns the have light of seen depending experience, lot actual returns with is, as customers, first lion’s we’re reserve in could in as magnitude. I of same contracts and what on answer Greg. Greg, previously. come be

Gregory Fraser

to meth had you overall decline, contribution and comments you could are if as the about in about if Just margin gross how ER any margin – to from this higher continue think products. these as year VERT

Andrew Einhorn

the excluding depreciation margin was as expect would amortization forward, look come prices down, on be the margin XX% about to as in XXXX. affected going expect, forward would we Clearly, we and we those Yeah, products.

Although, dramatic saw players there. as that. anything in number believe But a significant We what we as market can’t the competitive is also that the ignore expect given price declines, wouldn’t markets, XXXX. we of in out it those a lot of we

Gregory Fraser

you. thank Okay,

Operator

time. questions showing at like to closing turn this to call back I the And would you. no management Thank remarks. for further I’m

Brian Markison

troubled Okay. bit turbulent, best. Thank you, all operator, and times and and we’re thank you everyone these for I joining a us know doing our are today.

thank and you. there, in are, hang we So Bye.

Operator

conference Ladies and gentlemen, you Thank today’s this call. for participating. concludes

Everyone, great a have disconnect. now may day. You