AGRX - Earnings call transcript Q3 2020

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Operator

Good afternoon and welcome to the Agile Therapeutics Third Quarter 2020 Financial Results Conference Call. Please note today's event is being recorded. At this time all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. [Operator Instructions] I would now like to turn the conference over to Matt Riley, Head of Investor Relations.

Matthew Riley

to financial call results. welcome third discuss and XXXX quarter everyone today's to conference our Hello,

current concerning our the Before Among that quarter our include commercialization on future today's the start, and Such call including We our we cause combined let the market affect promises regarding is from results management's not and for relations of website operational will forward-looking other me full expectations. year financial statements timeline, expectations the Twirla. and hormonal or for outlook the for information by assessment potential prospects for our call our remind decisions. and the information actual results share guarantees section Today's concerning promotional statements. company. statements as involve on except XXXX, forward-looking forward-looking you SEC, law. strategy risk obligation judgments to expectations, fourth statements for business based our today and our our market and as may plans, to statements are may prescribing contraceptive The discussed required which intended the factors represent of the may update risks performance, filings in statements to and undertake investor refer of that and sufficient not to Please purposes available with that for are differ no uncertainties not

Officer. Officer are call Dennis today's on Agile Financial Chairman Chief me Altomari, and Joining Therapeutics and Reilly, Chief Alfred Executive

the remarks, questions. Following open we'll your to prepared our call

Al. you, now. turn me the now Let over Thank call

Alfred Altomari

remain first track to quarter product, a XXXX is FDA report a hormonal to our launch Good afternoon, that call. conference third our patch. and We're contraceptive welcome approved week once which Twirla, for pleased on we everyone

we our executed We brings in manufacturing several and on XXXX, this plan deployed and to plan According our closer our on all Twirla stated the Salesforce, prudently. managed the us trained moment Agile's all timeline, we're spending delivered of history. on XXXX. talented opportunities, that progressed key of on work objectives. quarter to third in During our exciting our that of And that the along the We've leadership launch report to team controlling dedication Thanks to hard happen remain by we excited said our and partners. and track. fourth quarter today, of care would

the We a end with important fits We launch of forward year. that lifestyles. choice by new look expect Twirla to and this to their to providing contraceptive milestone this women

achieving home a whole a while remarkable be For team since be understated. from this accomplishment of launch that March will cannot working Twirla

on track on launch. starting support commercial third Now After All end this to manufacturing. in validation product detail, to expect we of quarter initiated batches the finalize be and the expected an produce completing commercial batch badges year. will we overview to the production pre-validation our of are of greater three three Twirla, of with by to the of for these released that use remain

made pleased and continued of Corium. the support partner front are progress the appreciate the our we've with We on manufacturing

September, of chain in of wholesalers. regional of commercialization our by a believe to major efficiently with day contracting Twirla. the installing We we distribution our As a we're third number the that the announced as continue wholesalers investors' at a as U.S. supply support can build well three network infrastructure

OBGYN healthcare. experience Board our as and with Korner update Korner Paul of with Salesforce. our appointment is depth space, of Turning expanded team pharmaceutical years the including to Chief Medical XX an team Certified leadership of We experience and the on significant a the Officer. women's our in with management our Dr. Dr. biotech

pipeline, through our of life possible us development wealth prioritizing efforts of our will expansion supporting to Twirla. our candidates, Dr. team help commercial launch the excited bring and support Korner considering patent existing explore the the the to development and business experience costs his product are also activities. and We knowledge in while in evaluating

and Our in awareness an marketplace. XX Salesforce healthcare strong eight the sales training team The eight-week contracts is of and regional now ACPs providers the specialist field, in raising reps out educating completed program. or

Our reps in product. We're our in women's launch the mid-October, prescribers field heightened best we This calls the have since and to volume what time market, the health sales consider us practices. about data-driven been insights we're highest plus before at target launch be from proactive make for will helps over we to from ensure to the conditioning actually expected outreach to we approach awareness class have Twirla. that the a XX,XXX Salesforce Twirla using of

We continue and reimbursement with third for regarding third engaging to coverage make the during party payers Twirla significant quarter. progress

are committed provide working copays for formulary for barriers to to their attaining with access goal We patients. patients minimize the and positions providers rapid zero at of

at analyst to investor We our are we formulary we benefit representative secure targeting XX% currently plans approximately negotiating that or At with key their reviews. PBMs were health major all managers indicated to date. day, with to achieved rapid and say pharmacy access the smaller of several This three we've to XX% PBMs formulary already that one pleased includes plans. of launch. I'm the XX% time of the

zero immediately Along at will the launch, formula prescribers Twirla. use We gaining target for formulary will continue provide for on Twirla the access we to XX% XXXX. full can samples sample they goal end HCPs access their to retail. fill prescription to first by a way to to copays until give individuals month appropriate The at patients. eligible with start have of patients at Beginning of a of package availability

engagement In this of our terms by needs we're presented the meet strategy, customers. COVID-XX unique environment to our adapting to customer of

is tapping Marketing at new pre-launch at day, contraceptive highlighted the analyst our choices. landscape As VP aimed Welsh, awareness contraceptive Amy the strategy into building for of demand our of patients' and

Nearly their is the our of centering launch Just over to more of to contraceptive with and -- options. them already in we're with take control XX% that goals. more our the decision-making learned site an is enabled aligns process. half the This engagement campaign active and women's traffic two the aligns engaged than slightly about birth on of content what be their birthcontroldonemyway.com in part months with this since patients we the umbrella website market outperforming research discovering engaging want

to pent campaign unbranded with prime birth up is demand Our to heighten intended options. patients ad rethink their control

OBGYNs process are of with side from decision-making augmenting We HCPs this their approaching the the office happens objective nurses. with and the in physician that patients,

leveraging and event will our and is the and an importantly, Most stay make relation who patch, you We program afford busy of launch. patch serve a access an prepared this by be overview this the Dennis unbranded lifestyles. will on program the women from of results XXXX customer time of third with easy update of fully Twirla. loses commitment quarter supporting active to call is on for that We're will campaign. to pleased guidance. ready operational our and provide women broaden our the lifestyles I the to our to now financial momentum Reilly turn We're at continue to marketing a announce their and in over to the an the of

Dennis Reilly

thank today. Thank you Al, and listening everyone to you,

as about results, I earlier to and Before the done bringing we financial Al's to like team get our XXXX has market. I'd third great closer Twirla comments the summarize work our quarter echo

the Now on to the results for quarter.

year to primarily R&D contract same $X.X by to our million R&D in The a $X.X XXXX, the manufacturer. commercial million quarter of were third of the work to the manufacturing conduct approximately in the Corium, quarter expenses compared cost increase validation attributable ago. our For was Twirla for

quarter market organization, compared we and and and September validation of to $XX.X of cash batch in grow to commercial out expenses the grow our $X.X pre-validation $XX.X $XX all include will to per loss ended $XX.X share, of million These cash to Twirla reminder, through including and the research. same compensation and activities services G&A also increased future third expected commercialization increased Twirla, increase the and $X.XX of Net a or costs $X.X professional XX, the as and headcount XXXX, December million expenses We to advocacy in year compared other compared will costs costs to we as legal with to a launch due securities XXXX business. as our stock XXXX. in per marketable and marketing activities continue ago. third quarter in increase XXXX due This expense. G&A which million for R&D. We building, payroll fees, of $X.XX cash, operating equivalents costs, that pre-commercialization of share in XX, to as business. million, such of commercial included the totaled was the as cash Twirla, expenses G&A As and the our anticipate were XXXX. accounting building was likely selling primarily in or million G&A equivalents increase related third with quarter the brand expensed related in of period million an

Turning year financial for this million. be quarter, to stocking initial of the wholesalers in fourth gross is quarter now by full approximately to Twirla reflecting XXXX, and expected guidance our the fourth revenue $X the

by the end range manage securities We commercial take to end making current sufficient and we Q&A. our the with operating million build our year XX, the the the million G&A revision a cash, XX% We're of meet our be expense which for to now $X to lowered million the questions. of full happy and the high is in G&A $X.X to about bottom million. as now end range Operator, your current line continue in stock our our spending operating included Based you of cash in slight we launch projected plan, be We're our the guidance, With to for to expenses well, ability expecting XXXX. September business of expense our marketable of may range for again, compensation non-cash requirements guidance costs as will of of million. and believe year to $XX $XX $X that open to on accounting for our I've this that, equivalents we're up out now through Twirla, infrastructure.

Operator

comes first RBC Our question. Please Randall Instructions] Stanicky your Markets. question Capital with proceed with [Operator from

RandallStanicky

for Great, couple of questions thanks. you. Al, a

launch? any Twirla think to the Thanks. you new or heard or you anything is share thinking continue how marketplace, to do do thus in from the apply share seen that market as launch secondly, opportunity, think you your is look as about where look that and marketplace? that there at that to gives early Then that all other you about So think at grab part another can do First, first you've continue the launching at you Is the recent an you that's lane in pull the launch? look think question. with going that When learnings the far from? are most likely I to obvious areas research, opportunity. going you to can which Zoo we be of launch

AlfredAltomari

Korner the get share Thanks, Randall. let dynamics are us Dr. questions. want to any just we questions two in there's listeners I launch number is contraceptive if with going the also Randall, one, to another where your of from. know

the take me Let first one.

We intelligence good have Randall. now,

in reps have the We field.

people have field. We in XX the

eyes have out and ears We there.

I first of think the or and for and them a There's are couple first hopefully can now the years four I including be years of pretty doctors of think three excited last them. that new really being presented number foremost ourselves. time contraceptive about to options in have in OBGYN been to

would there's by excitement, think say, I heightened I the So prescribers.

excitement that excited research that that's and think They're I us. there's companies There's are them. forward new doing really to for options. stepping helpful

being net we launches see side. compete in a hormonal We side think the positive recent That's our us. so for the than non-hormonal the a we most it's as category. category different segment So

would think one, really for That's misinterpretations lot what that's the learned position one. product that think there's confusion for Act. of I you what the will. I interesting in segment opportunity that seen number us. that I an so about still important so presents us Lessons of Affordable the Care I've an is if a we from There's far. say, act

available to I there's aren't think that's states mandates, in aware them. as state where some doctors that

is opportunity an I that, think for So again, us.

that's number if at on We're first we've the is thing of right We least I think you Randall approximately at we for since so us will. over now, face-to-face our we've when for well had I to learned, data, COVID the are or look been average, a be nationally calls depending surprise we where planned national thought around there face-to-face other lot far, pleasant XX% say at. would for mid-October. out of weeks, XX%, a us. the

engaged. thing The other that is women are

even on activity side. the seems this market excited launches is in think other the the engagement we our patient I see see switch indicate it website, there's about in that our we level consumers, on that to the a

so it what buckets. far, So glean out are relatively early getting we days. can we in put from? that's two still, I'll share Where

come heading to birth I a control therapy, think than was it pill. to was that believe a likely We in statistically new was she patient, heading more be naive pill. patient a on for

So we're take an would patch there but chosen woman an in fortunate from say our a enough shot for IUD, again. bleeding market to the share you're our be if a who's other chosen the space. -- pills, to from A from is user, instance, existing a patient. the still would research we at If patient, expect pill. to to we're expect not on who's would we our woman method get away taking share it's share that right, come some That's

of that be what are on or were now we're to bulk even we pill research. the in our business, hear hear successful, at that's a the pill. doctors. market either heading to We if that is going right So a patients And come on from

a pill. de So be somebody going going if we're novo a user, who's pill successful, on or [ph] already either to it's be to

RandallStanicky

a ask follow-up. can Al,

you at it's the look you correct. the launch, point As made

would the this as look touches, very seen XX last of from plan, you haven't greater get at in to you now we're aspect than a in right health environment? several We your you and reps, in-person, many so are non-COVID kind launches normally of women's you pandemic and your expecting get at look the commercial given provider detailing years

AlfredAltomari

that's already Randall. planned out, Yes,

reps, we've tele-detail eight mentioned, trained to face the that effect, space a our really office XX either pivot are, face other reps. call they're have that that's We telemarketing. footprint, are in from specialists to And reps or

telemarketing for our managers. reps, sales work Our individual

pretty is finding can that tele-detail, a quickly. lot So cover space we're a what we on of

they really that be could meaning So productive.

in pretty remarkable. face-to-face, sprinkle you or capabilities tele-detail when So telemarketing our our with along

practices, shining a right. on If per Since a group more there You're we're more be capita even Randall, we productive. this is basis, rep lining targeting in can productive. we're

So either basis a or doctors a map. on going a chasing can face-to-face, a in lot individual versus a rep tag tele-detail on the of launch,

tele-detail rep even expect of more I capability let strategy practices office. our So chasing Randall doctors through well now than willingness remarkably the productive enhanced to on with XX% and in us their of a basis, We're times. our would over non-COVID

They're really it a I and also of hitting of we're floor with we're hope knock want start. traction So proud up sales pleased and the doctors that wood the group. great see out running I'm the but I'm to us getting really keeps productive. we're gates. on the very

the just lining. rep getting is around than mileage that we're traditionally a right, we chasing doctors basis, the if a more rep You're shining out they were of landscape. would On

RandallStanicky

That's great. Thanks, Al.

AlfredAltomari

You're welcome.

Operator

Instructions] [Operator question. Lugo with Blair. you. comes question Tim your Thank Our proceed Please from next with William

AlfredAltomari

You're Tim. on mute,

Operator

with Wainwright. Apologies questions. your is are Livnat proceed with from our HC. next Oren question actually Please

OrenLivnat

me? hear you can Hey,

AlfredAltomari

Oren. Hey, Yes.

OrenLivnat

muting time. all this day. I've myself up Good, Didn't mess

little this people any Do on starting of bit a getting matters. like So are think here you we're or that in for you regards maybe but a face-to-face they getting if putting your new sounds guess expectations patient just otherwise? up especially to or you pretty surging It than switched to visits impact, any as with matter? couple have moderate questions. what visits, therapies -- you on off follow that COVID-related would patient environment think I do internal good had again longer about guys a

AlfredAltomari

any No, data haven't yet. seen thanks, Oren. No, we

versus fortunate so other I specialists. think many we're

running an also. practice obstetric Our customers

what in forth. category many the the in number like off, not that follow. we access much. to that areas very we've but hasn't in patients little the see It's a could so prescriptions other So and given moves of so pediatrics fluctuated From seen category, the They're on. you and

one answer's that not you COVID We don't through that flowing think is say are are we way. part expect it, they're very we look regions the And engaged has prescribing The And and we So I'm now, at telemedicine. impacted not actively by or scripts telemedicine, gone and that the with think by a getting But no. impacted so. really down? of the bad yet. regions more because

are I think being resourceful. physicians quite the

the the being worst even state hasn't or they the obstetrics their prescribing their revert It having So in with access, that category to telemedicine. give open, to monitor We offices dampened closely. behavior. pretty

So now it. don't see we

impacted we're but on worse. yet. will. we're So obviously is margin that to relatively percentage very points few is a optimistic not not pie the all. you at down intact if Hopefully, Maybe just the Hopefully,

OrenLivnat

all regards Nellie, validation? you tweaked with that that know, the guidance minds you timing of wondering, minds manufacturing All spec the is stocking. this put I'm and change fourth-quarter manufacturing ease noticed right. revenue I'm everything schedule? been the again, or you any as can just down the Is within on on expected launch? put in to you know And was there nervous, our our can at as Since everything far side? has I I ease at is

AlfredAltomari

about always certainly on for worrying track. No, appreciate. thanks Oren, we're me, I

I there. is you both started was build journey had to or staff back the on this company. okay, plan February our where with and why mothballed, money think out you say, XX a we our timeline. in we think at employees, it our reactivate company plant, functionally to we have That's if no And in This always Corium. X

as just able move Now, Trust and would that. time team moved. a is forward we I money, that done the but it's loved just known. money-related. have would not out could it that truth do with this never have was I to we move to we weren't be but It if put and me, timeline

and carry to want of directly the the guidance don't the wholesale revenue just really time of we're coming no much related to out year now of out in brands the inventory brands, any then So chute. is

You that earn have to inventory.

on an and office step that's Look, in XX money had. more call organization, confidence lot the the number for against next home consumers. internal approaching spending time think we're a from doctors we achievable us dialogue people So it's on just based them an of I've we've give probably got We've on you Salesforce. now. and the to the built

best I confidence now this you, be efforts. fair but full couldn't with balanced, try move just despite like to are a forward in We product forward our bringing always we on

the timeline get we'll with is us said, Now this confidence there, there. team that full we'll our get so told

OrenLivnat

the door? things so going check, When last spec start could is out the

AlfredAltomari

Right now, the batches made. are

just The behind. let's put So there. of this kind sitting are batches they're made,

what out needs batches to It's done a not go phase, this like things and functionally pass we're this be done But them So the do pass-fail, because at be that or the typical, in is a where the the working is actually the proof analytics in ship batches. on fail, with they designed on testing validation that. to lot statistical of like point door. a a production these and typical protocol we all and FDA, we in have

part the in we're So of it now. analytics

have as we it's FDA. self-adaptation, to we're want now for we file believe a speak. it write with report So what we to up doing the files, that's Then a our not or don't

done on that everything file have we and put could. to we've we So it satisfy

activities. football at yet I'm because the this reach line red So quite goal series it's we're into that's terms, the not in point to the but zone. just of I'm big a running there in back trying the

next firm said, trying in just term, talking to that wholesalers. And to we'll orders. near the start we'll with up Now, start

progressing So going keep along. to we're just

also to we that talking that's phase So we're care. why in managed mentioned we're and

happy this so with, of on for thing is line put We and the good get also extraordinary. thrilled about to growing. orange. necks the well I'm just product that country's So That's zero feel going we our copay that XX% other I'm over our with

care So discussions managed I going think great. our are

working think doctors own on product around. I the ever of I are best the comments. I Salesforce privilege I've excited got And

of relieves that anxiety. some hope your I So

OrenLivnat

you you. did. Thank If that's possible,

Operator

your from question. comes question Blair. next William proceed Our Lugo with Timothy with Please

TimothyLugo

Does a questions. around which the but validation the site inspections at travel still could interaction for I COVID of agency? a this about apologize for policies Thanks be analytics in-person final the any anxious. phase lots in-person by bit require little or talk of impacted with more product. I'm agency, the you may

AlfredAltomari

Let me ledge. talk off the try to you

Now [indiscernible] Tim. second? your No,

happens specs, the to how functionally with So to our that our a protocol way is we manufacturing final Hey, the process. FDA is going we're it validate submit and say, this

So and lot now. it's a where are a statistics of of we lot That's right testing.

self-adaptation. Now, which If and doesn't files, there's we're the done. nothing well, that It is everything anywhere. in has, appears will that's it needs go to it, be we submitted. is goes put it that This

line So the with up testing the batches now, are. reports. writing just right recently, and the we came where doing we're all That's and

any this. close our wouldn't we're can as situation, white, you of no, passed normal would ship it yes, the black, batch it. say closest a to we specs, So be. that it's In if We Tim, need do does,

badges these peculiar in are So because technically they're batch. developed really

question it don't we then, So didn't that's we we Corium hearing FDA. never Obviously, we you're That's door, resources the come But the by than why it's check which have use their always subject All FDA. be And ourselves, don't have all a most in in to [indiscernible] do and now truthful the industry. file, we even ears most and inspection. that's this we Tim; Nothing just scoreboard have hit they they would. why a any This company your even are. people to before into because and time manufacturing, It's about batch. your But more with But the we and validation, they expensing to it. They get typically to of anybody, kind would people subject Dennis commercial theoretically validation R&D, it's generally inspection really this on just them to both ship stays it submit to self-reporting nothing, back to that. show NDAs. expect in financial done. our the to pass the off subject are take and in do, you to it. to it flip is files any by at if it out everything, not it

we're started we so gating spending and just about much talking why items so time late So that's it. it's the become

TimothyLugo

That's some fine. some I market the side contracting before marketing now? Dewayne Can a games understand that I you and maybe bit you're to of know in led on guess. I We that some the them break years. approach are you growth. of and saw how XXXX? to you of Can in over to few those are into able you talk kind the made going contracting even relationships maybe past talk

AlfredAltomari

Tim, contracts We per they that aware of. don't believe have se that we're

We get haven't have of of them. They up they just XX Act, What they in monopoly, Affordable the for a against forms on they is the place, it. a Care get they're get contraception, there's and no the reason. because been monopoly really formulary

at knowledge, of we're said, they the With force one product. Milan smaller against there's appears that as they best to up the not often lean sales point that over a detailing to So some contracts on had promotional our against. put noise

think kind they up pick paranoid business volume they accounts. then now So of some We up pick and some there. and

So contracting at not kind there's think some of level in commercial or plans but PBM the way level, them. parenthood the planned of the you the

the contracting. selective it's So a promotion, of of kind residual days, not ever really a little patch a and we that's of bit think but

issue. question, your that's an to not So answer

of be year, hit this were we are hope the why we have to mean time we the that's enabled. think closer going drugs. won't rest There the to doesn't not I the our hope country and That a is other by we to only already. the in formulary be ship We position we reps may have copay. product Half in access XX%. half

to zero way copay XX%, got XX%, as XX%, continue improve gooseneck, inching in Then need to it. other have through our think the other we with copays. PBMs activate with up But to we the we be we the if help closer to We're quoted to negotiations card we to. the hopefully that. can we've we So XX%. Then a

we that the getting next that's close as XX% for. you'll in So go figure hopefully, to it on have we next year, the line

TimothyLugo

launched? around the to good that's some can the And which quantitative the Okay, hear. Lastly, engagement about to you of you metrics to campaign, maybe campaign on unbranded talk

AlfredAltomari

soundbite Yes, there's think is a big deployed. we a have XX% couple of the that Tim I only different probably pieces

While the turn lot there's we It so more different lights. a come still on to elements. deployed it, we has

piece our us we So we action LinkedIn is. you into and the the on website. or to But action, a bring the like That's them where want think puzzle. of Facebook, see that's really

the right? You deep are We're want in doing. I go well right believe actually over script, So him a homepage to lot our want past I a to front deeper, me but we're getting I they're really we the the volume. XX% a numbers said you tag of the of we that have what base website, and analytics, of into but ahead like can don't is on of want metrics. go the anybody touches in doing see stuff.

really level. So and at a engaged are

that's So exciting.

yet. our that of engagement with relevant. and of turned us level and what we expect is as we tells like turn haven't they're whistles at closer spending we're We'll that this ahead on site We drive the we the on more more bells there finding traffic will point well but any which metrics get

looking in So deeper and engagement yes. them. something in plus the how I'm women doing XX% so details copay, the right face a XX% and The hopefully look the more we're But could at, engaged. consumer, to onion so layer want XX% copay. if I I metrics that hitting three Tim. to two The excite know exceeding face many zero we're they're far, our appears, everything me It major metrics much the care come. are and metric I how less to hits saying get. that's I doing

product We haven't activated the field -- haven't the yet. activated

now. job loose I consumer just we've pump I wild the managed our I'm what wait. care, three it man, can't to priming I'm a So you? wait think let saw. HCP can a Like great -- elements, I can't Tim, just done and on just tell I

TimothyLugo

Good to hear, the for questions. Thanks all Al.

Operator

you. Thank

comes question. proceed Company. and Our question with from with Gershell your Oppenheimer Please next Leland

LelandGershell

for Good afternoon, my Thanks Al. taking questions.

and your what prescriptions women, launch patients launch of us relate existing Twirla whether they to Twirla channels, seeing by could also could us patients seek with kind probably with tell know if with whether who you Thanks. providers, how to perhaps part what the As condition. to control and rise that versus options, into getting their in out to Wanted the their online, are head streamline of calling a the the of birth way. telemedicine process or Want may it's accelerated either coming ask your or the your you on COVID the the utilization intel to as bit just understanding it's of new regard telemedicine we about share looking market. and with with there that efforts that zooming

AlfredAltomari

thanks. a I reimbursement. characterize small OB-GYN our environments, school Doc's thought right is Because the growing their really pretty I a the COVID patients with CMS believe the on practice. as a very studies for less. to telemedicine worth including telemedicine. of goes to liberal back visits. reimbursement their back of personally part we've some that engage giving through OB-GYN It's while There's now in lot to it done but would quickly Yes, do has

to reimbursement. down and back $XX, going $XX XX-ish understanding go of it think is to If between we're approximately like boomerangs $XX order so the to I magnitude my see that's difference again. it

reimbursements company either that has future. believed So for I the for said, regionally, is so now, are Leland, the channel, function in it's we that With a watching and somewhat be it really to believe growing our involved quickly we time. of it, the at

reimbursement. you be is this market it's there We of that going But The grow, yet. But watching data it's a contraception grow. a impacted, take can we're haven't in refills, because continue to of lot that's repeat a to seen it telemedicine. is yet because we handle as business. doctor just is think growth bolus know think not we big we to that get a think So it's phone a a think going We is tele-prescribing that. not frankly, function, and call going to just that's quite real, function as

have we days, monitor and great don't be to influenced and to tools that. So it's the starts, XXX% I'm not just they we're new convinced but yet seem watching yet early that

on. but going So metric in crass it's is I is the be but think telemedicine, reimbursement real that hate something saying OB-GYN, a across the direct we're really us country. keeping to what's I relationship for between of all and think be? But that an to I it both reimbursement eye

So that lands we'll to see have post-COVID. where

doctor's open So we're don't yet. know answer I It's less patients it? is and The better metric time worth flowing just to that it the That's have yes your if practice probably through. also the now is. to $XX. and do at watching is

in believe a I put So small and to want space. but there it's so channel. put bet the that emerging we we applier should a

So we're road. going but to alliances probably do that looking studying just yet. down potentially We're we're still the at

needs if sure we today screen on get that but if not a the then either one reimbursement the We a road, our so But it it do should CMS see data. yet. it and in correlation between that's to just seen to radar what at reimbursement. on Twirla That's pronto. There's from now, least on the what see stay watch right visits up. might. we're direct that the we think So down, we've has something high way, goes direct don't down we'll impact Watch

LelandGershell

for R&D with of a XQ and cost then sales in size of question That's the guess maybe that batches how been those that. about goods helpful. you think get watch should going have as depends three we XXXX. on I your to of see Then into batches just of mid-year? it expensed commercial uptick. we inventory normalization or We'll terms kind of the and Would COGS the Dennis through you're hit

Dennis Reilly

quarters, Yes. some of staffing depreciation, in there'll there and in cash, and fixed which some is the cost too two but some it normalized our beyond first get be fixed a revenue, we'll more have will sales basis, will we'd longer that Get be to just range. by range XX% but to overcome I time, be absorption would net of XX% net a still COGS think, on in over somewhere as cost

be should the So right it's just if ballpark. -- of in kind that

AlfredAltomari

allocations are that in we you direct from piece think dedicated there's that. Corium We Corium. cost price We besides Leland some a that know, have pay internal but also to are involved, as the cost

COGS in costs that we fact. restating some start we're to fixed So have and going to

Dennis Reilly

Right.

area. over will but that and very supply their going somebody's for have have to organization us You're chain be manage that a Corium to allocating cost going to basically small, to some of

volume time early So, COGS. absorbed little insignificant going very not but become over it's on, the be to with will to

LelandGershell

taking and much very questions thanks helpful, the for That's congratulations.

AlfredAltomari

Thanks, Leland, appreciate it.

Operator

Thank you.

Our next Biedlingmaier Edward question from with comes Paul with Jones. Please proceed question. your

PaulBiedlingmaier

you. Thank

you existing there? with question, the products to pricing a could issue quick comparison the product Just of broach possibly in the

AlfredAltomari

we for -- football just of compare privilege. believe ourselves the the branded frame to the you most products, more you. will. have the yes, I kind don't But, The you. so we Paul, if I'll meet to field nice relevant

The wholesale other back call which we patch a $XXX whack. goes at acquisition month we'll out call or the door there

pills be high Some $XXX. that just birth-control I over as as put $XXX summary even branded the could of are the

median. wholesalers So a sell as $XXX.XX. probably is the goalpost, for. if $XXX you in to your what median We that want we the of use kind $XXX, chose price of the the category That's

So will, not we're we the as product if ultimately as you what look, this who the is said, have other for payers are closer patch they to the low the low you medium better relevant. go to pay pin a of because our end but us believe product, but more a we the at premium to patch. up chosen They'll so pricing time, better case, closer the ball we've can't same $XXX put ball give to that's in some the

a these than managed big starting because in of more get we differences rollback when price of So front have and likely. patent that we're anyhow, we not the one care in

tell proposition, why value times less patches. median, or of When women patch part than because customers we off, they're me a said a heard the are program price mention a we couple and pills falls other rational playing lose you lose if average So replacement that they patch with our if the of will. then slightly you women we the the have pills, that just trouble Let's like game? start to

manufacturer her free. to will for So we give it call can we us said, and she as looks, a

patch other that. the in So the payer, the managed paying groups care

know the not they're more if paying slightly you So mean $XXX, that what replacements. paying I than for they're

we these when replacements. here's our say, of we're price, where at, hey the So here's cost look, eating it's

us. saying, why place, starting cover You're three for we just this off I game [ph], think hope know, to that Paul. It That's a silly "Hey, rational makes patches. don't just If fall will I product." So working you are only to payers have the be more seems not, it I back like sense. paying from started seems some for for me. Enea our price a

PaulBiedlingmaier

you. Thank

AlfredAltomari

the for taking Thanks call. welcome. You're

Operator

like at this floor back for remarks. over no you. I'd Altomari are the Thank There turn to questions time, further closing any Al to

Alfred Altomari

you, questions always thank the is Well, everyone. Thanks great really it. they're for so, appreciate

financial and to confident going To progress customer dialog to in feel and process, quarter really hopefully thing we you not delivered the with important plan, like the the As this use we've XXXX, continue We're really managed committing out third ready and customers Twirla process against we're women off the our validation the our to in for the and quarter. the these track, strategy us. amount are launching access barriers we the coverage extending batches on robust build to product Twirla. to are pay market care the be is manufacturing of see that for the we've engagements, we and the for can plan, minimizing the our will and up reimbursement resources and substantial in do. right salesforce Leading important get completing seems a allocating there we made remain milestone for to this by to of to pleased engaging awareness objectives

we from an physicians. Looking bright -- activities, our believe to next talk we're the also to patients continue forward forward talking ahead a talk feedback becoming about the We I is next time you to to and leader launch we to We'll discuss about next discuss and forward our with We really all this we're space. and we excited, our the you. on to look with you future for with in call, becoming look in data quarter metrics, real update hope hearing both look and Agile

too in we distant next and hear hopefully not company to want thank for future we product our in, look the So support you'll the your you forward to thank you interest is for the and shipped. dialing

thank So, you.

Operator

webcast. concludes today's and Ladies gentlemen, this

You may a lines disconnect you your day. your time. participation, this now Thank great and have at for

Matthew Riley	Investor Relations
Alfred Altomari	Chairman, President & Chief Executive Officer
Dennis Reilly	Senior Vice President & Chief Financial Officer
Randall Stanicky	RBC Capital Markets
Oren Livnat	H.C. Wainwright
Timothy Lugo	William Blair & Company
Leland Gershell	Oppenheimer
Paul Biedlingmaier	Edward Jones

Agile Therapeutics (AGXRW) 12 Nov 202020 Q3 Earnings call transcript