Collegium Pharmaceutical (NASDAQ:COLL) Q2 2020 Earnings Call

0:00 Greetings and welcome to the Collegium Pharmaceutical second quarter 2020 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Alex Vassala, Manager, Investor Relations and Corporate Communications. Thank you. You may begin. Welcome to Collegium Pharmaceutical's second quarter 2020 earnings conference call. This is Alex Dasala, Head of Investor Relations for Collegium. I am joined today by Joe Schifoni, our Chief Executive Officer, Paul Branley, our Chief Financial Officer, and Scott Dreyer, our Chief Commercial Officer.

0:47 Before we begin today's call, we want to remind participants that none of the information presented today is intended to be promotional and that any forward-looking statements made today are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. You are cautioned that such forward-looking statements involve risks and uncertainties, including and without limitation, the impact of the COVID-19 pandemic, the risks that we may not successfully commercialize Extamsa ER and the Nuscenta franchise, and that we may incur significant expense and may not prevail in current or future opioid industry litigation and investigations, patent infringement litigation or other litigation pertaining to our products. These risks and other risks of the company are detailed in the company's periodic reports filed with the Securities and Exchange Commission.

1:38 Our future results may differ materially from our current expectations discussed today. Our earnings press release and this call will include discussion of certain non-GAAP information. You can find our earnings press release, including relevant non-GAAP reconciliations, on our corporate website at collegiumpharma.com. I will now turn the call over to Collegium CEO, Joe Schifoni. Thank you, Alex. Good afternoon, and thank you, everyone, for joining us. Partnered by Xtamsa ER Growth and the impact of the Nuscenta acquisition, Collegium delivered strong financial results in the second quarter and made progress versus our strategic objectives. This is a testament to the resilience and adaptability of our people and operations and their commitment to making 2020 a transformative year for Collegium Pharmaceutical.

2:31 Although the pandemic has forced our people to work differently, there has been no disruption to our essential operations and ability to supply the market. During this time, we have also been able to serve healthcare providers and patients. As of today, most of our home office based employees are working onsite, and the majority of our field force is engaging in some level of in-person customer interactions. Although the productivity of our field force is steadily improving, as is the quality of customer interactions, it continues to lag pre-COVID levels. As states began to open, we saw signs that in-person patient visits were increasing, but we believe that that momentum has been adversely impacted as infections increase in many states. We do not anticipate a return to normal for the remainder of 2020.

3:26 Business highlights from the second quarter include increased profitability, accumulated cash, and paid down debt, grew Xtamsa ER total prescriptions to 141,678, up 22% versus the second quarter of 2019. Strengthened Xtamsa ER's formulary position on the OptumRx national commercial formulary, which covers over 17 million lives. Effective July 16th, Xtamsa ER moved from being non-preferred to a preferred brand. This is the first major formulary position in which Xtamsa ER is at parity with OxyContin.

4:11 We continue to strengthen our patent estate with the addition of two new formulation patents covering Xtamsa ER, one with an expiry in 2030 and the other in 2036. Xtamsa ER now has 19 Orange Book listed patents. We announced a manuscript describing certain real-world evidence with respect to abuse, misuse, and diversion of Xtamsa ER was accepted for publication in Pain Medicine. We slowed the decline of the Nuscenta franchise in the second quarter of 2020 versus the same period in 2019 and in comparison to the first quarter of 2020. And we remained unwavering in our commitment to leverage, not grow our cost structure.

4:56 I would like to recognize and thank my colleagues for their commitment to making a positive difference in the lives of people suffering from pain and in our communities. I appreciate their ability to focus, adapt, and propel the organization forward in our quest to become the leader in responsible pain management. For the remainder of 2020, the organization will be focused on achieving our strategic priorities. They are growing Xtensa ER and securing a pathway to market leadership, slowing the decline of the Nusenta franchise, leveraging, not growing our cost structure, and executing our midterm growth strategy. Concurrently, we will be taking the necessary actions to prepare for success in 2021.

5:45 Even in the face of COVID-19, Collegium Pharmaceutical is on track to make 2020 a transformative year. We expect to increase profit, accumulate cash and pay down debt the remainder of the year. Our organization is healthy, financially strong and uniquely positioned to succeed. I am confident that we have the products and most important, the people to make it happen. I will now hand the call over to Paul for a discussion of the financials. Thanks, Joe. Good afternoon, everyone. With the closing of the Nusenta acquisition in the middle of the first quarter, this is the first full quarter that shows the impact of the Nusenta acquisition as well as our continued focus on financial discipline.

6:34 During the second quarter, we generated 43.9 million in cash from operations and repaid 12.5 million of our term loan. Our June 30th cash balance increased by 29.5 million to 145.7 million from the March 31st balance. Total product revenue was 78.1 million for the second quarter of 2020. Extamsa ER revenue was $33.6 million, which is an increase of 29% from the second quarter of 2019 and an increase of 7% from the first quarter of 2020. The gross to net discount for Extamsa ER was 59.0% for the quarter. As discussed on prior calls, gross to net discount may be lumpy throughout the year and is expected to be in the low 60% range for 2020.

7:35 Nusenta revenue was 44.5 million for the second quarter of 2020, which is a decrease of 1% from the first quarter of 2020. The decrease in Nusenta revenue was partially offset by an increase in wholesaler inventory of approximately one day. Excluding amortization of the Nusenta intangible asset, Total cost of product revenues were $12.9 million for the second quarter of 2020, which is approximately 17% of revenue. This includes a 14% royalty to Grunenthal on new center revenue. Operating expenses were $31.8 million for the second quarter of this year, which is a 6% decrease from the first quarter of this year.

8:27 Our gap net income was $8.1 million for the second quarter of 2020, compared to a gap net loss of $4.7 million for the prior year quarter. Our non-gap adjusted income was $33.2 million for the second quarter of 2020, compared to $3.1 million for the prior year quarter. As you know, our historical practice is to provide annual guidance and we are not committed to updating guidance on a quarterly basis. However, in light of the uncertainty in the market due to the potential impact of COVID-19 and given the visibility we have in our business, we are reaffirming our 2020 guidance that was provided on our Q1 earnings call.

9:17 We expect Xtamza ER revenue in the range of 130 to 140 million. We sent a revenue in the range of $170 to $180 million, total operating expenses in the range of $120 to $130 million, which includes stock-based compensation expense of approximately $20 million, non-GAAP adjusted income in the range of $125 to $135 million, and we expect to end the year with at least $180 million in cash, while repaying 37.5 million of our term notes. Midway through 2020, we've made substantial progress towards making 2020 a financially transformative year for Collegium.

10:05 I will now hand the call over to Scott for a commercial update. Thanks, Paul. In the second quarter, having adapted to the COVID-19 pandemic, we made progress against our commercial priorities of growing Xtamsa ER and slowing the decline of the Nucinta franchise. Xtamsa ER achieved all-time highs for total prescriptions, market share, and total prescriptions per prescriber. Total prescriptions for Xtamsa ER grew to 141,678, up 22% versus the second quarter of 2019 and 4% versus the first quarter of 2020. Xtamsa ER Extended Release Oxycodone market share grew to 23.5% in the second quarter, up from 21.8% in the first quarter. The prescribing base for Xtamps to ER was stable, with 14,300 unique prescribers in the second quarter, and we achieved an all-time high of 10 total prescriptions per prescriber.

11:05 We saw market share progression within exclusive accounts as ER Oxycodone market share grew to 52% in June, up from a baseline of 40% at the end of 2019. We expect continued market share growth within exclusive accounts, and as a point of reference, at Stamps to ER exited 2019 with a 63% OER market share within exclusive accounts. NuCinta franchise total prescriptions were 117,162 in the second quarter, representing a sequential decline of 2.8%, a significant improvement over the 6.1% decline in the first quarter of 2020. New Cinta ER branded ER share grew to 6.2% in the second quarter and New Cinta ER has now had stable or growing market share for five straight quarters.

11:56 COVID-19 has had an impact on our business in two significant ways. The decrease in live in-office visits that patients are making to their doctors and the decrease in accessibility of our sales representatives to their customers. First, regarding patient visits, As states began reopening in the second quarter, we saw in-office patient visits increase and corresponding increases in new-to-brand prescription volume. That said, as cases have begun to spike in some states, this return has been interrupted and is inconsistent, and it's not returned to pre-COVID levels. In-office patient visits are important to our business, as most pain specialists would prefer to make a treatment change via a live patient visit. The decrease in in-office patient visits has a negative impact on the growth trajectory of Xtamsa, which is more dependent on new patient inflow.

12:47 Conversely, as a mature franchise, Nucinta is less impacted and may benefit from continuity of care. COVID-19 has also impacted the ability of our sales representatives to access healthcare professionals in person. Initially, their productivity was negatively impacted, but through the actions we've taken, we've seen an increase in quantity and quality of customer interactions. As states have reopened, most of our sales representatives have made a return to some level of in-office customer interactions. We expect our sales representatives will be executing a mix of in-office and remote customer interactions for the rest of the year, with the majority being virtual. To help enhance the effectiveness of our sales representatives in these remote interactions, we've taken the following actions. We launched new e-detailing capabilities and remote selling training. We launched a new email capability, which allows our representatives to send customized branded communications to their customers.

13:45 We implemented on-demand resource shipping capabilities so they can send resources like copay cards and patient brochures to healthcare professionals. We increased availability of digital resources on our brand websites, and we've increased our investments in non-personal promotion. On the payer front for Xtamsa ER, our market access team is working with exclusive payer accounts to improve pull-through and accelerate market share. They're also working diligently to strengthen existing payer positions and secure new exclusive ER oxycodone formulary wins for 2021. We're focused on pulling through the new co-preferred position for Xtamsa ER on the Optum National Commercial Formulary covering 17 million lives. This is the first major parity position for Xtamsa ER, and we don't expect uptake to mirror what we see in exclusive accounts. It will be more protracted, and it'll set a foundation for growth in 2021.

14:42 We don't anticipate a return to normal in 2020, but through the actions that we've taken, and focusing on operational execution, we believe we can achieve our commercial priorities of growing Xtamsa ER and slowing the decline of the new Cinta franchise. With that, I'll turn the call back to Joe. Thanks, Scott. I will now open the call up for questions. Thank you. Ladies and gentlemen, we will now be conducting the question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions.

15:29 Thank you. Our first question comes from the line of David Anselm with Piper Jaffray. Please proceed with your question. Thanks. I just had a few. So first on Nusenta, I wanted to get your latest thoughts on what you're doing to moderate the spread between gross and net sales. You've talked to some contracts rolling off that you won't renew in the past, and I'm wondering if you can comment regarding how gross to net are going to trend later this year and really beyond this year. So that's number one. and then secondly on Extanza, can you talk a little more qualitatively on the extent to which the pandemic has sort of thrown a wrench into your ability to take even more share with all the exclusive contracts that were onboarded at the beginning of the year and help us understand how impactful it has been or maybe where You'd be with Xtamsa without the realities of the pandemic in terms of share. Thanks.

16:50 Okay. Hey, David, this is Joe. Thanks for the questions. I'm going to share or tag team with Paul on the Nusenta question, and then Scott will take the question on the impact of the pandemic on Xtamsa ER growth. So with Nusenta, it's probably early to give you granular information there in terms of what 2021 will look like. What I will emphasize is our strategy with Nusenta is essentially to try to accomplish three things. Where we can, we want to improve Nusenta's access if possible and if we can do it in a way that we feel is reasonable. The second thing that we're focused on that would have an impact to your question is on gross to net is where contracts are expiring.

17:37 We would love to be able to keep the product on those formularies, but in some instances would only do so if we're able to negotiate a lower rate. And if we are in a position where we have to because of some of the contracts we inherited, we would in fact walk away from formulary positions if it didn't work or make sense for the franchise. And maybe Paul can speak to how to think about trending for the rest of this year. Yeah, great. Thanks, Joe, and thanks, David, for the question. For the rest of this year, we expect Mucinta to remain in the mid-50% range, 54% or 55% in that range for a gross-to-net discount for the rest of this year, and I would anticipate that on our year-end call or Q3 is where, through the contracting season, that maybe we'd provide updated guidance on a go-forward basis at that point.

18:33 And David, thanks for the question on growth for extamps and how it's kind of the pandemic is impacting that. So the primary driver of the impact is on patient visits. And what we're seeing is still if you look at patient visits, they kind of bottomed out in the April, May time period. While there's been a little bit of improvement, still they're down 30, 40 percent versus pre-COVID time period. So that's the significant impact. And what it means is it still affects basically nudibran capture, period. and what we're seeing there is also new to brand market volume in the OER market bottomed out in April, May. It's come back a little bit in the month of June, but still nowhere near pre-COVID levels. So we're fighting for market share and as patients come back to the office, we'll continue to see some new to brand kind of rebound and really until patient visits are fully back, we wouldn't expect to be back to what we call pre-COVID capture.

19:30 And David, I would just, I'm sorry, David, I would also just emphasize our expectation is that extamsa will continue to grow on a sequential basis. And the impact of the disruption in patient visits is ER to ER switching with the exception of when we have these exclusives isn't typical. and that's a very difficult thing. It doesn't seem like it would be but that's something physicians want to do in person and that's where we've seen the impact on the ramp and Scott gave you some of the stats around that. That's very helpful. Let me just sneak in a follow up on Medicare Part D and contracting there. Any significant updates or any updates on progress regarding getting in better positioning overall on the Part D for XAMSA?

20:24 Yeah, so great question, David. The way I would answer that is right now we're in the midst of negotiation waiting for final decisions as we look forward to 2021, both in commercial and Medicare Part D. I would say that we're encouraged and I would expect to be giving an update on our November call whenever we're doing Q3 or our Q3 call. So I think that's when we'll really be able to answer the questions. But I think, look, we have demonstrated an ability to move market share when given those opportunities. The profile of the product is strong in terms of the clinical differentiation. And so we're encouraged and look forward to providing an update on our next call.

21:11 Great. All right. Thanks, Joe. All right, thanks, David. Thank you. Our next question comes from the line of Greg Gilbert with SunTrust. Please proceed with your question. Thanks. Good afternoon. I have a couple. I'll start one at a time. Joe, when you're excluded from a formulary, should we assume that you were offered something that was not acceptable or something else? There's obviously a lot of attention paid recently in such an example. I realize every case is different, but what would you like to say about that so that people can put it into proper context? Yeah, Greg. So, look, first thing, I appreciate the question. Certainly, we take a lot of pride in trying to, as a leader in responsible pain management, remove non-clinical barriers. I think when you look at the gross net on extamps, you can see that we're being reasonable with a differentiated product, but we're also not going to give the product away. And I think if you, you know, I believe you're referencing the change at Express Scripts. that took effect July 1st.

22:12 And the couple of comments that I would make as it pertains to that situation is the following. Number one, that was an unprecedented decision in that no payer has ever removed Xtamsa ER from their formulary. The second thing is from a business perspective, it will be modestly positive for us in 2020. And the reason for that is Xtamsa was never on or was never preferred on the ESI national formulary. It was covered in a non-preferred position of which we were paying a discount for. For the past five quarters, to put it into perspective, extamsa average was flat, averaged about 420 TRXs per week. And in making the decision, ESI communicated because of COVID-19, they'll be grandfathering those patients. So we do not anticipate that it will have a meaningful impact on prescriptions, but we won't be paying discounts on what we anticipate will be a relatively steady base. That being said, as a leader in responsible pain management, we're committed to continuing to work with all payers to remove non-clinical barriers.

23:27 We are in active discussions with ESI. As recently as the end of June, we gave an updated clinical presentation to their clinical team. and we'll see how things evolve moving forward. Thanks. That's helpful color. On a different subject, have you made any more progress in getting removed from some of the opioid cases of which your part perhaps incorrectly in your view? Yeah. So look, another really good question. When you look at where it is that we're at, and this would be, I suspect, a positive, there's actually really no change. So as of today, there's over 2,600 ongoing lawsuits. We're aware as of today that Collegium Pharmaceuticals is named in 27.

24:14 Eight out of the 27 are in the MDL, but none of them are track or bellwether cases. And then just for completeness with regards to Nusenta, we don't assume any liability for promotion or sales that occurred prior to January of 2018. Great. And my last question is on BizDev. You don't need to repeat what you've done in the past. You've been very clear about your criteria. My question is whether you've flexed that at all to include other areas that you think the company could be good at leveraging your existing infrastructure that are not as specific to the pain areas that you've highlighted in the past. Yeah. Great question, Greg. One, there's no change. We feel there are opportunities out there.

25:00 We know what it is that we're focused on. We want to leverage the capabilities and the cost structure of the organization, and we believe there's opportunity to do that. And then the final point I would emphasize is, look, we are active, we're engaged, but we're also very confident in the in-line business. The strength of it and the growth that we anticipate moving forward, so we're also looking for value. We're not going to do a deal, just to be able to say that we did. Thanks a lot. Thank you. Thank you. Our next question comes from the line of Serge Bellinger with Needham & Company. Please proceed with your question. Hi, good afternoon.

25:45 First question is about The new OptumRx formulary edition announced in your, I guess, a new strategy of co-preferred positioning. Can you just talk about how that will drive Exams of Growth? Is this still an ER to ER switch strategy? And should we think of this as a preliminary run to a potential exclusive positioning in the future? Yeah, thanks for the question, Serge. So I'll start by just a reiteration of things you alluded to there, which is our overall strategy. So as we've stated in the past, when you think about our payer strategy, there's really three legs to it. We haven't changed our strategy of driving exclusive formulary wins.

26:30 So that's still one of our primary strategic objectives. But we also have a strategy where we would add parity with an eye towards running into exclusive, as you just alluded to, or for some accounts, large national ones like this, maybe a parity access for the longer duration. So we're still looking at those three strategic levers as we march forward. Now, specific to Optum, we view this as a great opportunity mid-year to get to parity. It's the first large parity position we have with OxyContin, and so we'll get a good understanding of how we can perform there and grow there. We expect growth, but as I said in my prepared remarks, it'll be protracted. It'll be a longer run-in of growth and then a clear run-in and set a good foundation for 2021 as well. So we know it won't be like an exclusive, but we're excited to see what we can accomplish here and you know we'll see if it leads to other changes at Optum or if we continue to perform and grow at Parity from here forward.

27:29 Okay and then thinking of the second half of 2020 growth, clearly COVID as you mentioned led to a significant decrease in patient visits. Have you seen an increase of telemedicine usage from this physician base and Could that be an avenue to where we could see that could drive additional extanza growth as COVID sticks around? Yeah, Serge, this is Joe. I'll take that question. I think what we're seeing in telemedicine, and this is supported by research that others are doing across almost all categories, it generates less new-to-brand and changing of prescriptions.

28:17 So we think that's a great vehicle for physicians to be able to talk to, take care of their patient. But when you get to that switch of an otherwise stable OxyContin patient and that physician then changing their medication, that's not something we're seeing happening anywhere near the rate that it does when it's the in-person visit. Thank you. You're welcome. Thank you. Our next question comes from Brandon Fultz with Cantor Fitzgerald. Please proceed with your question. Hi, can you hear me? Yes. Hey, Brandon. Hi. Hey, everyone. Congratulations on all the progress in the quarter. Apologies if you did mention that you've been hopping between a few calls, but could you just elaborate in terms of the funnel of patients you're seeing post the quarter end in July, and then maybe sort of some of the positive shifts that COVID has had on your business, which could be longer-term tailwinds as we emerge from COVID.

29:19 Thank you. Okay. Brandon, I'm going to hand those two questions off to Scott. Yeah, so Brandon, when you talk about kind of the funnel and what we're seeing with the market. Yeah, so when you talk about the funnel and kind of new to brand, basically what we're seeing is as COVID hit and the primary driver of the decrease was decreased patient visits, the new to brand market opportunity went down pretty significantly to the tune of 30 to 40% from a new to brand market standpoint. And that flows right through to the product, especially at Stamps as a growth product. What we've seen is that kind of bottomed out in April and May. And then in June, there's been a little bit of a growth back, nowhere near pre-COVID levels. In early July, it's in line with what we're seeing in June.

30:06 So from your standpoint of the funnel of new to brand, it's down since pre-COVID, but there is some rebound from kind of the heart of the COVID season. And that's what we'll be looking at as we go forward for the second half of the year. And Brandon, one thing just for portfolio completeness, Nusenta benefits from that dynamic as it leads to continuity of care. The other thing we saw in the second quarter is as in-person visits and procedures started to increase, not to the same degree of the IR market, but Nusenta IR benefited. Now remember with Nusenta IR, a far higher percentage is used in the treatment of chronic pain patients. So that's where as we talk about Nusenta moving forward, That may be where there's a little bit of a tail impact when things do return to normal. So that's why we say we continue to focus on slowing the decline, even though in some instances we're seeing trends a bit stronger than that.

31:14 Thank you. As a reminder, ladies and gentlemen, if you would like to ask a question at this time, please press star 1 on your telephone keypad. Our next question comes from the line of Dana Slandis with Guggenheim. Please proceed with your question. Great. Thank you very much for the questions. And Joe, I just wanted to circle back to your prior comments on the decision by Express to put Xtamsa on the exclusion list. And I guess that's just surprising to me given Xtamsa's abuse to term properties and What seems to be clear benefits over Oxy. And so I guess the question is, you know, did Express come to a different conclusion on kind of the real world abuse deterrence of Xtamza and its value?

32:04 Or was this just really around price? And maybe if you could also provide some context on kind of what you're seeing on real world abuse deterrence of Xtamza, any color there you could provide would be helpful. Thank you. Yeah, so thanks for the question, Dana. I'm not inclined to get into the discussions that we're having with Express Scripts. I think what I can tell you is people are very aware of the clinical profile of Xtamsa supported by a differentiated label, inclusive of the clinical decision makers at Express Scripts. And at the end of the day, there is a level of which we're willing to go to secure formulary positions.

32:49 and sometimes there's going to be disagreements between us and a particular payer and I would just emphasize the decision that ESI made in this moment of time is unprecedented and that it has never happened. since we've brought in Xtamsa ER to the market, but we continue to be in discussions with them because to the degree there's a reasonable path forward, we don't want physicians to have to, even though it's positive to our business, deal with that non-clinical barrier. And look, with regards to real-world data, what I would say is, look, we're excited about The manuscript and it being published, we're committed to continuing across the portfolio in a way that's appropriate, bring focus to the real-world data, both with Xtamsa and the new Cinta franchise, and I think that the data is actually really encouraging.

33:50 Thanks. You're welcome. Thank you. Our next question comes from David Steinberg with Jefferies. Please proceed with your question. Thanks. A couple questions for Paul. When you repurchase the full rights from Assurcio for Nuscenta, your gross margin improves substantially, but certainly is not at the same level as Examsa. And one of the things the company was talking about was improving those margins through changes in supply chain. and other factors, tech transfer. Where is that now in the process and when could we see some meaningful improvements in gross margin? And then secondly, for the price increase you recently took, what percent went through, what percent did you receive out of the, you know, what percent did you bring to the bottom line in terms of the, did you benefit from the price increase? And then I will follow up.

34:52 Thanks. Okay, great. Thanks, David. Appreciate the questions. So, for trying to improve gross margin and our belief that we can bring down COGS, we spoke about that for the first time in relation to the new CINTA deal. We have a belief that we can do that across the portfolio as well. But that's in a longer-term horizon. We're in the early stages of developing that plan and believe that maybe we can talk about it next year. But it's over the course of the next three years or so that that'll actually have a P&L impact. And as far as price increase, as you know, we took a 9.9% price increase at the beginning of the year We realized about 5% of that.

35:42 Okay. And then on business development, I know at the beginning of the year you talked about more actively looking for assets, either on-market assets where you indicated that the barrier had to be quite high in terms of what you would bring in, and then for some development stage assets. And I'm just curious, given the pandemic, has there been a slowdown Inactivity, because you can't have face-to-face meetings and that sort of thing. Or are you very knee-deep in lots of discussions with lots of companies for lots of different products? And, you know, how should we think about BD unfolding over the next 12 months? Yeah, David, this is Joe. Certainly appreciate the question. Look, we, as you articulated, we're focused in two areas, that midterm window development stage assets and and opportunistically if there's a commercial stage asset where we could leverage the infrastructure but the bar is high because of how bullish we are on the inline business.

36:46 I would say COVID-19 hasn't had an impact in terms of our engagement and activity. We know what it is that we're focused on. I think we're active and engaged and we'll see how it progresses over the next many months. Okay, thanks. All right, thank you. Thank you. We have reached the end of our question and answer session, so I'd like to pass the floor back over to Mr. Filoni for an additional closing comment. Thank you. Thank you for participating on our call this afternoon. Collegium Pharmaceutical is on track to make 2020 a transformative year. I look forward to updating you on our progress. Have a good evening. Be well.

37:32 Ladies and gentlemen, this does conclude today's teleconference. We thank you for your participation and you may disconnect your lines at this time.