ALIM - Earnings call transcript Q4 2018

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Operator

Greetings, and welcome to the Alimera Sciences Fourth Quarter and Full Year 2018 Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jacob Goldberger of CG Capital. sir. you, Thank

begin. You may

Jacob Goldberger

Eiswirth, all company Sciences for conference for you fourth full-year Financial are us With and and Executive Phil quarter Jones, a joining quarter and press Alimera Chief Rick today fourth call results Yesterday, on the and year-end Chief me Officer; the Thank Officer. the today results. President issued XXXX call. announcing XXXX financial release

being press that website. section. release at and the be under will Relations is company's find www.alimerasciences.com Today's Investor posted call can webcast the recording a You to

remarks the your Following by up management, open we call will questions. to

based During and current inherent involve and make the will statements expectations some uncertainties events expected risks cause actual that future materially. regarding are performance. differ These future of this results on call, company's guarantees to are and forward-looking management not could statements performance, future

a the Alimera evaluating filings information, presentation includes more Alimera's in its For recent EBITDA, financial see discussed please SEC. useful in Alimera's factors can be risk non-GAAP measure with performance. the adjusted believes that

substitute consider not a isolation or accordance results prepared information in an should this with additional GAAP. You for

in measure, financial the a GAAP of comparable its reconciliation yesterday. financial release earnings For most reconciliation table directly to measure from non-GAAP this located Alimera's see

the Please Report press to related recent additional Form have February For Tuesday, Alimera's of may topics XX, those listening at this Eastern with and XXXX. the SEC. and be its announcements X:XX Since and of replay then, made on the refer filings benefit releases on Alimera approximately discussed filed of XX-K to call, held the you may who for to recorded it Time. was Annual AM most

Alimera. over to CEO turn Eiswirth, the I'd Rick and to like Now, call President of

Rick Eiswirth

thank you, Thank Good morning, today. and you for us everyone joining Jacob.

go Phil's as the XXXX the with my get recorded call this we strategy we vision as results I share forward team I looking sharing excellent the new will call my After Alimera's QX discuss through full-year some and first CFO, to for you the are to CEO thoughts there. leadership and and XXXX. and we As near-term is Alimera first in on numbers, for

announced own X. President directly Officer assure was I with three to can President for promoted you past XXXX, January XXXX, am investors of VP Executive joined our look with vision the who with to effective financial the also stockholders the forward had and and provide in I and in four ago of today's many our joined speaking promoted to in we Chief the of the Chief I of Alimera our well Alimera Officer. As previously that Jones, Financial the future. who nearly XXXX position the speaking having November over and business, with my as of XX% CFO years. of I've I will Phil been pleasure versed years them share Finance. was portion to was and position more stock both presentation current Phil

beginning held joined VP at Essex and sales here title his marketing assumed Arjo Dave was roles held Dave as Corporate Holland Marketing career and senior and co-founder Medical, positions he of Alimera, as Communications. a of Superior a since. Senior Theragenics, at and firm. Wiggins ever various he Alimera well Chief us Before Officer CPA with large various of financial the has

Operations various Europe CIBA in been Director Vice Ashman, VP at of previously marketing the of President sales Marketing and VISION positions Officer Gamble. Before Europe. Managing of founding Alimera, held our and and has Procter President Philip & and Chief Vice at Operating and appointed Novartis Senior Dave Senior was Commercial

growth. Sciences roles Sanofi through management team to this at trajectory Philip positioned is in Alimera and Schering-Plough. joined held Alimera he of well believe XXXX, management I lead AstraZeneca, Bayer, its Before next

ILUVIEN financials the both XXXX compete. segments ways. continues markets our where record our to U.S. and in We growth we flagship gain the for substantial International which a now, behind in in us saw year brand, was a many to Turning traction

$XX.X XXXX, fourth of quarter revenues a $XX we to the for record over reporting high year, the quarter annual the are an increase of increase million XX% fourth of for new and are a of million. reporting XX% We full-year, last of

accelerated U.S. revenue and in growth rates over XXXX. Our both significantly our International segments

a our in measure As specialty ILUVIEN you end-user monitor and pharmacies option This versus end-user XXXX. from know, X,XXX up only physicians progress units demand X,XXX or XXXX sales the XX% approximately to over U.S. was up XXXX in was demand XXXX. acceleration represents the U.S. units End-user in of we demand closely our for to distributors XX% as as

end this we see every period users. first chart, X,XXX demand the units time also year the over and you can X,XXX to exceeded a quarter launch have in of XXXX, a in since U.S. grown recording quarter in during As quarter the units for fourth prior

and Our the in XXXX. quarter XXX% in XX% International increased business fourth segment

While to comfortable believe late believe we experienced to of we that is market customers. pace us expect usage do we but expect back obtain returning, injected the patients in doctors supply. revenue once into to that patients grow being a the not allowed has quarter, removed quarter first new the begin grow of require the to as We growth, still from distributor Though our in This retain segment international solid anticipate do the increased get Ozurdex at acceleration to fourth and and supply Ozurdex continue well. XXXX to the this some partners ILUVIEN we is organic treating. this as bolus more year Ozurdex we enabled with of clinicians that us in of

distributor to Turning now. those partners

those markets opportunities in XXXX and expect We in leverage new to have in made progress XXXX.

Brill quarter. to currently at on as Looking in hospitals Spain, of reminder, authorities with the XXXX. They in reimbursement ILUVIEN advance with launched Spanish are for on partner our a working reached plan include formularies agreement a ILUVIEN this

near with authorities the regulatory ILUVIEN price engaged and currently future. anticipates in reimbursed is a Horus, partner, French receiving Our the for

Horus we Spain known In are launch We goal opportunity European for this ILUVIEN will optimistic their earlier announced in use partner, of the in to Lebanon, that remain received In we agreed expect France met, markets Southern Arab intraocular pricing for Emirates. approval and on in approval steroids. of and December, January, we upon had year. distribution these about in Assuming in is this have MEAgate United very the received as our XXXX. Lebanon pricing

over Now, CFO. financials, review Jones, more for to would I our our detailed call a Phil the hand like to of

Phil Jones

everyone. Thank Good you, Rick. morning,

During million quarter fourth in the of revenue to net $X.X quarter million, of consolidated compared our fourth the XXXX, $XX.X XX% to grew XXXX.

to $XX.X to net revenue net compared approximately XX, three revenue XXXX. to for XXXX. grew XX% U.S. the revenue $XX U.S. the million, months months million XX% million approximately during $X.X For the year, XXXX, net ended three XX, consolidated grew to of December for million to December ended compared $X.X

$XX.X months XX, user $XX.X period quarter. XX% revenue by net U.S. the were increased for driven previously compared the to million, ended December was in For U.S. million demand demand end XXXX. as Both Rick XX% and end for the primarily increased year XX% mentioned. XXXX, XX the to increases in U.S. up user

specialty demand our we not end GAAP perfectly in our due distributors. with always previously purchases As by do shared, have to the user U.S. of timing revenues correlate

the webcast, viewing quarter last user end you chart demand of three our for years. historical the the those and our between experienced comparison shows quarterly each sales this For GAAP

however, in improved some still that You can correlation see significantly were the XXXX, there differences.

quarter fourth the more than to sold our users, stock distributors of on units purchased during the increasing X% XXXX, During quarter. they approximately their end hand

the more approximately December of than to segment $X.X months Alimera's the and the million hand compared and ended X% for during revenues million distributors the revenues units XX, our XXXX, continues for end their to purchased improvement to XXX% sold This the full-year GAAP approximately months only For user to recent last Net consistency increasing most approximately between three year. end users, increased stock on XXXX. XX, reflect demand versus December year. $X.X XXXX, from International ended three they

this discussed, the Germany the Rick in attribute UK Ozurdex a amount of the As shortage of to and we during period. significant

Total $X.X $X.X million Executive the Research, totaled prior for XXXX. ended three million, $X.X the million, was during XXXX. expenses compared million The for our to approximately $X million compared compared International period. ended XX, non-cash for to Chief attributable for with quarter This during the $XX.X the million costs and one-time X% additional a administrative months affairs Pharmaceuticals. XXXX during charge decrease studies. from expenses rights net incurred medical million, during EyePoint million revenue medical in was up $XX.X to increased compared The acquired company the approximately December three uveitis million, XXXX approximately Officer. For and XXXX. were down development increase to ongoing $XXX,XXX in year, and to General to were development to severance were XX% $XX.X $X.X XX, the fourth primarily affairs research, December expenses $X.X year clinical by offset previous associated months XXXX

year, XXXX compared of the December $X.X $X.X during the for million, were administrative ended down expenses approximately XXXX. marketing fourth $XX XX, quarter Sales were and reported to For million compared XXXX. $XX.X to during possibly expenses general three the million, X%, and million months

were during ended EBITDA of million Total operating for of adjusted and ended $XX.X December the announce EBITDA ended sales that quarter million were marketing million million, fourth was $XX.X $XX We positive approximately during XXXX, during the approximately expenses significant the approximately we the million, EBITDA three during compared have to million totaled For during XX-month of pleased for three compared are operating XXXX, to the we XXXX, quarter. approximately reported to XXXX period. adjusted the $XX.X months a months $XX.X an to XX, and adjusted were during $X.X million Total prior December year breakeven surpassed $XX.X XXXX. compared for to expenses quarter XX, proud loss the the for This of expenses XXXX. period, the XXXX. million goal year company approximately $X.X fourth to compared December XX,

million adjusted the to for year, months was a to of December EBITDA December XX%. million, for XXXX, of months an XXXX. $X.X approximately the XXXX, loss million, the was loss XX, EBITDA compared Net approximately approximately during net million compared decrease ended ended XX, three loss a $X.X $X.X three For loss adjusted of the $X

December per XXXX. common million common ended weighted million, on net year XX, basic $XX.X ended three diluted net December and shares common year average to to December to for loss the the share three XX.X per approximately for net December on net same approximately share per loss compared weighted outstanding $X.XX weighted loss XX loss net XXXX diluted basic XX, share net common XX, outstanding, totaled XX, ended XXXX, and during approximately million $X.XX XXXX, December income the XX.X on XXXX. GAAP diluted $XX the XXXX. GAAP shares outstanding was during on $X.XX the compared year $X.XX common and million of weighted shares average For million share respectively, XX.X of period million and approximately was average during the months of months outstanding approximately approximately and XX a basic million ended diluted ended in loss average per compared shares XX,

that recorded of the for exchange is million $XX.X in resulted the During it XXXX. B of the the shareholders XXXX, $X.XX in per of convertible XX, gain which contributed December Series quarter the and C important year quarter stock This one-time generated of preferred we ended to convertible per September share. on income or XXXX to of stock operations basic And for diluted extinguishment $XX.X series the XXXX. from a share preferred new fourth note preferred reported third cash finally, stock, from in $X.XX gain approximately resulting net we in million

had back Rick. at to like and we slight $XX approximately the of equivalents $XX.X call As turn XXXX, September in of XX, I cash December to would a increase million million XXXX. cash from and XX, cash now over

Rick Eiswirth

you, Phil. Thank

I have read not appreciate was to it say, I have this nice all to to that. numbers time. the So,

in ILUVIEN in vision potentially catalyst some my help mentioned believe my continued I for before, chance as the that of thoughts Essentially, will adding on for four key to share us. more XXXX, drivers you the around thoughts we growth as with generators to some well see I As with we growth wanted XXXX. have revenue of a

number patients currently The The this of one the ILUVIEN both to treat willing organic from on day every persistent It to over which Because of this, we repeat available the doctors improve can add the months, disease control continued to the existing their ILUVIEN injections of can we micro-dosing physicians for competitive we each patients. treatment The months, their that for non-acute to dose DME ILUVIEN inherent for have help patients. continuous needs disadvantages was in up disease. and over practitioner as vision we is years. deliver swelling are last that generate new to and disease. to first customized unique to We of this continue XX positioning we swelling. patient patient ILUVIEN products the are maintained DME better allow to where treating ILUVIEN believe chronic from a leads delivery Acute the is consistent The can the address last through opportunity three that we also anywhere consistently three loss. only to to of of regimen. we recurrence our growth appropriately is unless more is endure. who reduce treat from in understand therapy typically time, their the of dosing believe and base, the to daily recurrence provides treat that therapies, they designed believe persistent a and them drug the DME, regimens and growth significantly can

continue these benefits this emphasize We one-of-a-kind is to of Our do been and effective. has believe messaging ILUVIEN. messaging will

we over earlier, in an mentioned growth of the XXXX in I acceleration saw As U.S. XXXX.

second cycle material the XXXX re-treatments. should first of for The opportunity catalyst in our be

up comfortable as we ILUVIEN even competing In As but recurring do therapy provides the quality scripts therapy, the only the U.S. of of receipt more to for reimbursement as was choice therapies that quarterly a as January patients DME ILUVIEN monthly XXXX. number better scripts months, which of became know, patient injected acute following means not not you with from XXXX, in with benefit do. had significant XX we J-code the physicians a or

and the XX% X% in growth can We of filed XX accounts driver, volumes of the patients we for acute side expect consistent represents Non-Infectious time effects we provide XX patients. even volume. see boost very If short-acting to rate, or episodes to have same by recur. significant immunosuppressants It last in patients for The Posterior months, steroids. a systemic by in have DME Europe intravitreal an these appealing we successfully year. need to of additional additional treatment currently X,XXX new ILUVIEN support If can ILUVIEN. our see in will commercialize These and new countries and distributor approved, DME half from treated of first to top treated long revenue to that a you market. frequently about while be approval potential we for ensure Those believe very goal our element XX% second over for Non-Infectious period working for in half Uveitis Uveitis Posterior the ability the third unpredictable they A looked drive at to re-treatment ILUVIEN revenue could to The with our is partners XX% this Uveitis access XXXX. year. of have approximately to did in continue is that size Europe the account to our steroids, patient have they that achieve to to expanding is X% potentially the we final year. by markets as is approval the which

expect in successfully Arab East. of opened Lebanon, other to and Middle potentially and Spain, we we in reimbursement reach our United ILUVIEN progress, Ireland Leveraging recent markets in XXXX, the and new regulatory in Emirates. in During and the markets the XXXX expand France,

see ILUVIEN, opportunities. we Beyond additional

would accretive retina commercial model. are commercial reasonable products look Europe. intend asset. a infrastructure be is evaluations our fit leverageable in and that U.S. retina to having for the We current a and products somewhat We with for in both growing This unusual

re-energized returns we prudent better, ready shareholders for work disease that consistently our of treat help and potentially opportunities. we fewer the for vision. therapy product new We for with our only lead we abilities vision more to growth and are is will to that provides Alimera, we be It to management these and a can that believe bring seeking I'm At organization. confident in see a retina treat team DME to that way Non-Infectious Uveitis. execute non-acute to posterior chapter next patients turn management a the available to longer and side-by-side and We of team necessary and Alimera course injections. on this the to shared the have will has years better

Now, I'd to begin like our Q&A session.

Operator

conducting Ladies is question. the a Our question-and-answer [Operator proceed Instructions] and you. Thank question will with first be time at this Riley. we with of line Andrew from your gentlemen, B. D'Silva Please session.

Andrew D'Silva

bookkeeping Thanks morning. quick good ones of my A questions. first. for couple Hi, taking

let just please, of was units that, And year. the operations let in And me manner that you then, purposes, what Ozurdex from quarter quarter you're modeling in you in domestically flow and similar then, CapEx do first first position sold GAAP know, recall? through quarter. If exact benefit the dip you think just fourth of buck continued during just you're to me XXXX? for And a traditional the for in a did know if pulling could you're to now Europe while the you that cash seeing and ILUVIEN right the was what can a

Phil Jones

questions. your Andy, thanks Hi for

million Overall, in our standpoint revenue that We Looking and for your operational – sold QX. part units GAAP given I'd and the turn part Rick CapEx. was at X,XXX over now about $XXX,XXX an the to information for interest. you includes of about cash $X.X in included $XX.X million first And for the it second your burn the wanted, question. from from year,

half to that interest is related almost So, payments. burn of

Andrew D'Silva

very you much. Thank

Rick Eiswirth

was consensus the year. sales quarter. Germany the and for well both with But those we results, then in We have but obviously, and in about to of the to you be Ozurdex, think the treated a that positive but we'll quarter physicians UK. ahead us. bolus on effect that the still the bolus respect in obviously strong the where the that think impact the effect got a million and and in of in importantly, comfortable to impact impact if it's positive both estimates, so saw overall in were We clearly $X.X far this and were development Sure, to side factor patients, the probably continued had we of We revenue UK hopefully the to profile lasting most using we able first that quarter. accustomed Alimera more of treat provide a some Germany, for patients, product more we

As probably impact it's U.S. the early far as getting as countries. formularies other way as certainly We of things how some insurance will an that, seasonality, much too hospital tell to to the because business, little a bit in have and on seasonality renewals work the that. and of well like the

forward. there be to So, impact, some but hope Ozurdex going retain business seasonality still of do going a is to the we

Andrew D'Silva

great. great, actual stocking noticed meet is to an there to? I discuss inventory Is balance for it provide tied purposes? useful. it having anything also can or at And Or distributor Can what's you it's new related sheet, you all-time tied Okay, you that the now be to demand quarter. high on domestic increased growth your this would that to

Rick Eiswirth

the taking the partner two and to the Spanish partner product. inventory built in initial actually we Sure, new countries, combination year up one, of a the Andy. French shipments over some It's had for things: of allow fourth the of quarter some

occurs sitting product challenges of in the is with and March changes. any Brexit form whether re-releasing is toward an up in we've Brexit any the result not or a issue stock what associated delays a there so it built additionally, end still with However, of as occurs that deal is to out, and question

Andrew D'Silva

and start highlighted for top the they to Okay time at any the their through the – what of that actually that point Are makes evidence process? Are treatment that that second anecdotal you going And as patient into that of XXXX. they seeing XXXX retreatment is are retreatment you physicians this coming sense. looking XX% you like, highlighted? discussing from

Rick Eiswirth

words choice Yes. of is mean your I would say, I there right.

what's it's happening we because standpoint, at patient. can't see anecdotal with this a each individual all point, So, from HIPAA

one I patients. retreat who physician his However, was about patients XX intention XXXX, in he and some have with treated spent time those said all to

at patients VP ago, for three Our of physician another ago years was were of weeks to that report EMR they a with and Sales them in running scheduling identify systems their out office to of re-treatment. treated have couple been the look

out So, of specific how much occurring there, and revenue it we it’s but having an on is hard it's how impact already identify. know that's to

Andrew D'Silva

And In last to very question just it enough. a surprise opinion, my Okay. like approval. related seemed me, Fair from Canada.

get from think my the maybe least you how before payer related could standpoint, a about a be at should Assuming year should me standpoint? through processing, know, you modeling Canada but from we let

Rick Eiswirth

to months. reality there I is mean is XX process the reimbursement from lengthy Yes. Canada, the pretty anywhere XX

XXXX base So, typically, talking in in have you with about from in material quite opportunity of us point, that the a before to few wouldn't at of now, at material and Canada any point into X% right Canada. come you're in launch U.S., probably well the the on would that out revenue And a impact our size revenue see early revenue a or it them even time. the XXXX new expect late frankly is and being I about years

Andrew D'Silva

forward great and you Thank much. luck going it. Good Got quarter. very Perfect. Okay.

Rick Eiswirth

you. Thank

Operator

is Thank line you. question. proceed Please next Francois the with from of question your with The Brisebois Laidlaw.

Francois Brisebois

taking Hi, questions. the thanks for

here. couple Just a

say speed centers just So, how of guys still much paradigm? on do need and have the talking the about between or Uveitis much the smaller in here treatment how especially education still – education, ex-U.S., in would you're to DME difference you you they terms

Rick Eiswirth

quick to I the do there's certainly educate much doctors doctors in anti-VEGF. maybe headwind from because Uveitis the ILUVIEN the we think to differences adopt in Europe, to that Uveitis. do on and don't no between DME the think more I need

with steroids patients. injecting So, natural more choice. so are mean of of those I a anti-VEGF we're much not in the frequently habit

Francois Brisebois

more a make or generic is feel with problem comfortable you because of kind this doesn't or this IOP just would And try let's be to line more sure a a, that steroids ILUVIEN first-line seem one saying worse to a first therapy? of is would a of be

Rick Eiswirth

of steroid, we certainly a that steroid have sure get, the I mean, because probably label to depends are you to European see a have Uveitis It what most is, the disease. is it's what patient disease. make still authorities. reality I ILUVIEN three-year ultimately get indeed we the on to physicians that question. something does shorter-term from sort say great would if and we'll do have these going some But inject have patients of the recurrent is, recurrent health

So, they should be candidates for ILUVIEN.

Francois Brisebois

Okay, But just in the great. taking of Ozurdex, know Is that the this quarter, a forward? Or million not off being here? And more frame then on to it. make ex-U.S. on you that and give could the that's more the forward I impact Ozurdex you from see all kind little touched color on $X.X done shouldn't to taken just any fourth sure of market? we going

Rick Eiswirth

Yes.

Allergan to So, a been about quarter. said challenging Andy, bit forward, it know little it's has as going the is prioritizing the to the I impact market. X.X estimate. What that was fourth million in We U.S.

stickiness with some because being European not that got believe those rationing and also injected doctors, sometime stock that back in to appears So, so of of may saying they're the are they ILUVIEN quarter. the be it we available. an where the countries, full first market But the is seen we impact towards It they're is quarter, U.S. Ozurdex that experience. in the of in second that the Ozurdex end really we've of going recall improved the stock in have haven't they've product and some

they're using they be ILUVIEN with Now familiar may it. and

the So, early tell. what will too exactly bit said, the be as first to quarter, it's on impact a I little

Francois Brisebois

in interesting. of on lastly, touched terms That's then you Okay. this And M&A.

you specialty just you're guys looking ex-U.S. acquisition commercial for do the when Can at Just the you back you of on at you this eye. mention, again targets? of criteria the look potential front us obviously can have remind

Rick Eiswirth

Yes, it's to commercial leverage allow something team. I us simply our think would that

have medical presence, in support, We reimbursement, space. out the commercial a et retina sales, there cetera

would contained obviously months at be would team choice. could logical think be the next, a that looking XX would know, most that months. for space to is it's a I fairly X that and pharmaceuticals, It I you priority product As the the leverage say

there opportunities sense, side, some the on device potentially there's think well. make because out would most genetic or of which surgery testing as I are the doing retina diagnostics in even or specialists

Francois Brisebois

Okay. Great. on you And quarter. the and congrats thank very much

Rick Eiswirth

you. Thank

Operator

of question with Molloy Jim Thank with Partners. question. your proceed Global Alliance you. The Please line the next is from

Jim Molloy

the bump guys. in Question quarter, that's $X.X that Hi in Is Thanks. forward you X.X pretty might you run rate how be of of sort on the the number, fourth out a then assumptions range $X.X the in the million post going that sticky we guys you from quarter of should million good be much looking Ozurdex that at getting some make through and where XXXX and – sort of million the in been. back market? good had of jump pretty take a

Rick Eiswirth

feel I markets U.S. board. there was the both when we the distributors Yes. in I about and certainly number. growth international good mean come mean, the on the

and fourth As is typically quarter a stated is month, before, low the a seasonally typically the we've first high quarter month. seasonally

to off, but work to it's start baseline great the consider seasonality moving So, certainly I forward. a we think

Jim Molloy

flowing still the the dimension sales adding is of first your you're coming we of Okay. start of should $X.X million Uveitis through half the and And here and anticipating the EU half XX%, that dissipate to second in million, something DME, size $X.X XXXX?

Rick Eiswirth

impact at the – in XX% year. so be half second Correct. or the of Yes,

Jim Molloy

from potential talk into might then any and to there, bring sales you bag looking the incremental can size potential of And acquisitions of you're you there could as add the multiple Excellent. opportunities on are that these something issue of that you the out are looking about timing the an of sort pretty afford really good? or Is becoming kind pricing anything acquisitions?

Rick Eiswirth

leverage early Yes. to Jim, think, we mean, going to think a commercial on to out anything I for we're comment I looking be specific. it's aggressively I have that try and there to probably things. team goal too

adjusted I forward. accretive, very, product the are we should the that think EBITDA the breakeven quarter could of regardless reason to at bag, we there to maintain any the going of and is, since can we very it add be hope fourth in size focus potential we

Jim Molloy

on Final question. for XXXX? thoughts guidance Any

Rick Eiswirth

We guidance. typically have specific provided not

I think we've in we to I I would explained based would And the certainly that some to can XX%. on high-teens as past say we the everybody going we if guide are that you we to thing said same the hope something outperform catalyst to of earlier. in the do

Jim Molloy

taking for the Great, Thanks questions.

Operator

[Operator next question Wainwright. question. Chen proceed with Instructions] your of the is from Yi with Please line Our H.C.

Yi Chen

comment in on first Thank My XXXX? strategy question in you the be the the XXXX strategy my question. will the there in U.S. for is, change second can any in whether half effectiveness and you marketing your of taking of

Rick Eiswirth

like story, certainly believe said the in continue been day, with recurrence are it of think comments. we get that a hope the that will thing. the to but it chart provides to in to effective on do are comparison things stability it. we we've bullish the to making develop most by We There reviews physicians same and the disease we with of the my of the because been things uniqueness be saying, additional then and treats focusing to continuing to story, can reduces every to but at think, I eye, the support same that more – is certainly progress more expect continue datasets, ILUVIEN on earlier looking it We that disease. rather important, than as respect the has consistently and efficacy, I Those

Yi Chen

Got it.

second improvement in you – to of there compared any question expect Second XXXX? half. the Do margin margin the first is, XXXX gross improvement further half gross margin gross in in was an

Phil Jones

It in gross should be We probably XXXX. margin see do not improvement an consistent. fairly for

increase overall we is margins gross bring in decrease our of partners, However, distributor there from that and due that from we will probably royalty an see in revenue slight to a the more partners. partners we those as get on those

Yi Chen

Got it. Thank you.

Operator

you. there are It Thank further questions time. appears at no this

like the management to to back additional pass concluding any I'd over So, comments. floor for

Rick Eiswirth

Thank today. you listening Great. and all engaging Thank with you. us for

for you hard updating future and all about thank vision forward I success. year. look We work to our the are for excited on throughout progress employees our of their the and

Operator

participation. your we conclude Again, today's does thank and for Ladies gentlemen, teleconference. you this

now disconnect lines. your may You

Alimera Sciences (ALIM) 19 Feb 192018 Q4 Earnings call transcript