FLXN - Earnings call transcript Q1 2018 | Flexion Therapeutics Inc

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Flexion Therapeutics Q1 2018 Financial Results Conference Call. My name is Kevin and I will be your coordinator today. [Operator Instructions] I will now turn the call over to the company.

Scott Young

Thank you, Kevin. Good afternoon. Vice Corporate Young, Relations. and Scott is President Communications for Investor This company's the this can this the issued release be at and on Both we of afternoon earnings an archive found website flexiontherapeutics.com. call led be Chief Dr. will call by Today's Executive Flexion's Officer, is Arkowitz, Michael David Deardorf, Senior Operations; Chief Financial Officer. by Vice Clayman, joined Dan of President and Commercial he Flexion's and

future sales, these operating Before the cash clinical, be statements commercial, during to various to forward-looking statements that include or of making financial, Statements Act. we and and financial Private this business forward-looking are begin, developments regulatory projections. and expectations regarding Reform expenses, are anticipated I need which conditions subject milestones and time. and meaning to remind net risks performance, forward-looking change utilization, you over within assumptions, that we regulatory clinical or will Securities business other including that the uncertainties, cautions statements teleconference related Litigation commercial strategies Flexion matters,

on with the of operations Additional other the to results to the call and such could on website. quarterly XXXX, in the Flexion's the March speak quarter duty Mike well only Flexion business, statements. are contained date and turn Form at filings as I CEO, XX, SEC and factors now over report of as SEC, update which Flexion's These with Clayman. ended www.sec.gov no as that information other and assumes for of available will conditions are Flexion's forward-looking statements Flexion's this the financial and filings risks XX-Q today, affect call,

Michael Clayman

Yesterday, provide first respect David it a the far and on to press announced appointment With the call. David today. pipeline us deep his us invaluable afternoon are that you have us our financial Today, David' to fashion, joining Flexion extensive CFO, and an the performance business to I'd we continues as Flexion thank he we be grow, ZILRETTA's before have summarizes to joining Arkowitz too In thrilled trials call asset we and is recent progress our what wasted genuine will and himself financial with launch, will operations, quarter. to of we as pleasure this Scott, including into developments industry financials, experience prowess. get onboard. in and time performance for him am immersing later call. our our our Thanks, and this to for performance pleased QX in typical the earnings updates like on cover clinical no has will and financial programs I release say all our he

emphasized I the is the and and of grow. ability ZILRETTA the solid in establishing As in review on clinical ZILRETTA potential will the cover their these prescribers' first all get dynamics about our ZILRETTA, encouraging our on in uptake commercial high continues long-term physicians it key detailed of in from that and quarter its hearing earnings of Dan market $X.X and we in and are one confidence represented net is to to ZILRETTA to comfort patients, for disrupt can in sales, that OA to QX, XXXX and last provide for adoption call, initial confidence feedback interest foundation we to availability a sales. but a building reimbursed. I I'll market, full recorded anecdotal it leave the QX, the activities compelling say million our based

J for recommend code truly importance de time a dedicated can process the review and range code. code, required is that prescribers the for serve claims commercial product, Q code a processed To the they will it, will Q administered to code meaning Q decision for the second months is with to the Once payment ZILRETTA prescribers buy-and-bill which and ZILRETTA developments and news be and expect the code a current on effective, automated insurance a X, miscellaneous the essence, become for as X and dedicated XXXX. clear under or CMS, currently on some a last claims This both be Medicare assumes Medicare reminder, these takes to a made are effect to at for takes and means reimbursement only a purchase and week's Medicare ZILRETTA a this, from take Q is To of reimbursement is processed as the it code claims issue color facto done more the particularly to J manually, submit quickly point to ZILRETTA flow fraction Centers summarize us. In the was miscellaneous of statement inventory been It for payments Services, after significant must for as miscellaneous it which welcome As recent received in for a July foreshadowing served J product a has much unique timeframe patient. that reimbursement provide the code. that the Medicaid the Thus, X in we will ZILRETTA J under Medicare correctly. manual the of for reimbursed J the as paperwork in code. see ZILRETTA. decision developments, April we Medicare can half a that with opposed

research, commercial recent conducted adopt the of a likely also market indicates have to the we Additionally, half. in majority are Q code payers which second

we for for will our dedicated catalyst year next place. when the a strong come certainly ZILRETTA in J While code is believe the Q code second half, development is particularly a key

the last on dedicated clinical progress At As to highlight J Medicare our I'll effect XXXX. and universally we take commercial a CMS code, utilized ZILRETTA a January side. codes point, week, payers. for is to of J And recommended proposed which move announced this Xst, on some by recent on

Bone past one JBJS. of you've and If Joint exciting over Journal our the you've been news the developments Surgery, anticipated months, the commonly pivotal and most of study in recent the to publication referred as of flow, watching activity was few X the seen Phase some

As you the orthopedic to know, this and certainly peer-reviewed journal, the in study all JBJS from wanted bill. data top-tier a fits we appear

in with approximately The a read it with more appropriate, is, of are you highest of of one the has one to about the XX,XXX a subscribers. it of those impact circulation with who payers journal dialogue and an far, a the peer-reviewed JBJS, opportunity, journals data. X physician unfamiliar provides Phase widely by of results have where and publication complete orthopedic the For factors regarded the in most and highly space,

XX of call reported second to by month, our data and administration XX the we time patients, experienced XX than tolerability exciting of symptomatic XX. Week XX. received following safety OA and data, for the clinical which knee, study or XX% received XX% ZILRETTA, of the at Society a average administration International, of more Research that of presented initial additional dose ZILRETTA our Last of between we with in Weeks a injection eligible Weeks interim ongoing Osteoarthritis patients that and investigating patients the dose second OARSI, XX was weeks, As ZILRETTA showing and and between on the second approximately or repeat of general of Annual patients Meeting, last showed initial patients, benefit ZILRETTA or XXX of XXX XX%

individuals that who radiographically study severe and and/or the a which acid represent Another XX.X%; most significant population, patients hyaluronic therapy, interarticular percentage Kellgren-Lawrence X, repeat which important real-world administration included the of XX.X%; aspect participants previously treated patient of Grade is interarticular classified XX.X%, with the is OA. a broad, form of were corticosteroids, as

so OA the to assess after initiated are XXXX. month respect a in for synovitis injection the third Patients minimum XX, ZILRETTA injection quarter X XX the an weeks administration of is receive Top-line following followed trials, a a patients with of total second second the in injection. effect just after determine the regardless of open-label injection of administered, As results of who the a single evaluated With and repeat are clinical we eligibility patients initial a the XX, new to knee. when weeks ZILRETTA XX injection of XX to study expected their study on of reminder, of the initial months. are second is follow-up ZILRETTA, for at administration this

not is ZILRETTA's expected results on anticipated study information label-expansion per to key and synovial valuable roughly driver ability and take OA. year. to to believe enroll, potentially study with are this us top-line se, is which a The While provide increasingly we symptoms X of inflammation, disease it as in quell next a the can progression months both recognized is

from meeting decision lightly, our formulation was discontinued that Finally, regarding the development the but the of on the studies, requirements based was target pipeline results fluticasone. March of not in was FXXXX, of profile. it product we taken our program not The clear programs, pre-clinical our extended-release our

presented as early there and therapy teams to aims FXXXX, the pre-clinical program, in disease which was enables process modified with of FXXXX have at resources gene a potentially to not FXXXX, progression. possible. The least OA With to at and did FXXXX our focus new decision as precious pre-clinical the to relief in of the development support year discontinue provide data our pain to respect FXXXX of the pain on make the an showed go/no-go placebo. of OARSI. OA their progression the successful is would in decision and we development to to in see compared improvement model preferred decisions commitment advance, us of equivalent disease While equine allows our function equine research preserve keeping relief, efforts These that of to resulted data and critical program slowing this, data administration exciting simply

significant equine to clinical there the is are part side in the were with gives low. assuming pre-IND bio-distribution our outside to effects administration activities a progress. data and single IND in his tissues, toxicology call and models, that, the a of was of no XXXX. systemic well-tolerated With meeting, FDA which humans Additionally, studies joint us likely I'll of and risk their confidence in turn commercial was our shared respective on These that the pre-clinical successful, first-in-human and as the equivalents over observed launch target murine anticipate and update we initiating be filing an provide Dan trials to GLP FXXXX

Dan Deardorf

progress of as X MDMs, It's And metrics. accounts period Thanks, while launch since we've and business still musculoskeletal levels interest. reflected of QX our in managers, made sales access time, days, about months or meaningful the target relatively high launch in are early quarterly the are our gaining prescribers short it's ZILRETTA, our showing our and to of been Mike. as

Before context are detail, let some launch the launch discuss I our on in provide where in we cycle. me metrics fuller

out coming As of I asked our those breadth, put, focus every the exactly accounts often on depth prioritizing high-volume of to that ensure accounts that process. reps gate, are MDMs previously and discussed our We the get supported that is key were selling ensure I wanted our initial through means. step what versus approach prescribers. but Simply to

emphasized, clinical the process had buy-and-bill product sale with As is we the the beginning just a like ZILRETTA. of

well, takes reimbursement [ph] If to entire expression, It you're village directors. familiar buy-and-bill it the the with &quote and moves even quot clinical takes managers, and a administer and products. an with buy-in starts office the staff, & schedulers it finance order quickly prescribers' to office

our accounts practices can the get and pharmacy throughout These they to direct-to-patient, DTP utilizing a ensuring to large a that's ZILRETTA buy-and-bill and much time to information, exactly therapeutics Without or as market to And the ZILRETTA job playbook a our I'm can build report that heavy advertising too hospitals, is a doing digital and repeat began say and long-term their satisfaction. experience require providing activate broader they've we process, campaign. MDMs advanced And the will force expanding there I positive to to process that campaign our next of been intricacies with and emphasis experience large field of is key effort, that have DTP, has institutional For of as committees begun navigating include target web-based it the QX, great targeting. formularies. entire outreach designed. place that hired we've wave a orders out securing why deep pleased we competitive our executing and In added breadth navigating accounts. customer awareness, on

also channels. the there components dimensions the However, and campaign, multiple also print will to and are in-office span which

an have activities the with respect in the remainder Mike in as to XXXX. clearly later code important QX. With already of J reimbursement, Some described, be to will catalyst start expected these begun

However, Q will with year. we believe additional comfort second create half in the code reimbursement issuance of of the the this

navigate insurers research Medicare the In In and addition prescribers of working and current mentioned, and MDMs to will, help Q J a manage prescribers At as code. through the under our I'll code. our to commercial them Mike majority comfort confidence point, our miscellaneous walk managers this reimbursement quarterly in meantime, fact, metrics. providing suggests with are the with access in launch field that reimbursement, utilize

of As X on insights a of provide metrics to first and reminder, the when adoption is ZILRETTA. the intention the collectively considered uptake

number In launch, approximately target focus of called addition, increased as metrics and identified to approximately increased and the the territories. from accounts. during first that prescribers we accounts who XX,XXX X,XXX target X from of prescribers on payers practice approximately Since on XX,XXX in of X,XXX have have quarter their MDMs number our in accounts X,XXX the X,XXX to our reimbursement. The additional and MDMs target prescribers X,XXX

at through and in-depth launch clinical In field, feedback that accounts we're held or commercial through XXth. approximately represent covered have progress, confirmed and verification Furthermore, launch. roughly training benefits reimbursement interest Our MDMs with approximately And have more to million XX% conducted respect commercial the from very November of ZILRETTA, than preparation to key discussions purchases reorder. the have insurers samples product see on come. coverage managers what's commercial excited ZILRETTA about XX engaged continue that on the with XXX gained processed of since and the summary, have and service to ZILRETTA. we're we product about accounts we're X,XXX we our requests have the pleased X,XXX experience or hearing since field have the roughly either FLEXFORWARD access placed ZILRETTA accounts With a purchased XX% our of in payers, lives,

I'll it that, with David. turn So over to

David Arkowitz

thank for to Thank introduction you, earlier. like kind Dan, I'd Mike his and

$X.X ZILRETTA loss expenses increase expenses were million and million development an Selling, expansion XXXX for million $XX.X due $X.X million and X $X.X Selling expenses by Flexion $X performance. is into the net Before now same for $X.X and the headcount personnel XXXX months today. for as privilege for it and Net loss research ended to to increase this administrative be period be my XXXX of of to million costs sales a $XX.X of $XX.X totaled company million. quarter expenses in of salary quarter million The the was part and XXXX headcount of get associated a and first pre-clinical expense first of watching XXXX. for The the like related primarily March other stock first time in and to of increase to and million team. financial to capabilities. is reported a ended selling for million exciting in as Cost of of I've it the ended commercial compensation decrease sales million the XX, been to is some I general through and financials, walk here marketing program X primarily compared respectively. net $XX pleasure and expenses say I'd and tremendously XXXX $XX.X to what was quarter It for respectively. establish costs XXXX our XX, recent of and months other were The XXXX and March due employee-related additional and increase million well and in was costs. to additional in X the development and $X.X our XX, the to and with expenses due XXXX portfolio $X.X million costs offset related costs of other for Research manufacturing for $XX.X ZILRETTA. respectively. million months were $XX.X March million million were development XXXX $XX.X sales a of for expenses

same administrative months additional and the compared expenses X costs million ended primarily notes. and XX, increased related general expense $XXX in by stock expense. and period to the increased by in March increased same $X.X with period as of convertible salary March of to in XXXX in XXXX in due aggregate to Our the headcount compensation associated approximately million primarily XXXX XXXX the as X an $X.X million the XX, Interest May XXXX ended to compared months due issuance XXXX

March XXXX. marketable $XXX cash XX, with As approximately million securities compared million in of cash, December had approximately the of and XXXX, XX, equivalents company as $XXX

As we corporate financial not matter guidance. a of practice, provide do

the in and with the to due questions. the in However, clinical over future line associated that, please associated and with development operator, expenses several the we open associated commercial expect activities increase pipeline. activities to years development FXXXX With ZILRETTA. next ZILRETTA costs Line expenses for extension the for additions ramp for of to the with OA shoulder, trials of hip

Operator

prepared remarks. concludes our Instructions] This [Operator

your question for with Fargo. first will Wells open David from call the We Maris [Operator Our questions. now Instructions] comes

Unidentified Analyst

this Katie Hi, Maris. on David is for Curfit

And that First it And if as it's wondering; would I than doctors was is price? things expected prescribing? ZILRETTA more expected any could you the give trend are do be better, the to or price helpful. the you realized also what you Is kind compared net better part going it with what launch? feel better net of realized Is than expected to had around detail expected?

Dan Deardorf

Katie. we're that very of Sure, highlighted metrics Dan. with pleased across all what in marketplace the Yes, we're It's and seeing earlier. we the

this and on say, product clinicians patients As feedback interest we've and the high, be from product to we're continues how got. hearing broad alike continued the coverage well extremely the to payer is responding that clinical the in we've

of across made progress pleased QX 'XX 'XX. of of all we've from we're and these QX metrics that So to

forward. just the I think metrics experience in most continue, probably the either to answer? question be will something we're seeing ultimately we're marketplace. I the say, we'll we at, that we're marketplace. pleased pleased I be we watching a or be second did telling product not Was that are Btu be move seeing Of obviously the what sampled, So what there as part will ones account reorders the again, with with as closely or ordered look

Unidentified Analyst

net care a effect. follow-up, you also, those changes Q I'd you looked the have that as go give just code a into a how trajectory other received if potential treatments for proxies any, to, like price. once Just color a around the you've and have or And ask sales if J at if proxy any realized to or code

If would you've field, in given that seen the you anything that can your be helpful. history share

Dan Deardorf

backdrop front. Sure, that to codes actually Q with codes; in on that line say gross few from are net we've important are we're would there expected sure. perspective respect I very what issued. to an And a Q with

particularly level to looked think it our customers many product it Q customers will so So give will some our it's difficult look to be ultimately We're increase but tailwind, to code reimbursement we something of find want see will that. and process an us that a code. proxy ultimately might under of that is around that proxy And to that Q educational a new got what ultimately will like a see we've like. that pleased be there

got for what the of we're the to and have again, Q back tailwind us too the So to pleased it's through extent forward year. tell half early that we've code, moving a we'll just

Operator

next with Our Capital question comes from Randall Stanicky Markets. RBC

Dan Busby

Hi. Busby This Dan questions. is Two Randall. for on

injections. knee the one; first past fairly bilateral receive to sequenced that it's in pain, regarding typical The said you

sequenced bilateral of in positive, knee seen assuming the both would but you that this launch? So question, hurdles And there ZILRETTA? speak you widespread intention concurrent then accounts? or of impetus the Was I more factors use are the use second a with for as target then you know And data bit to stage broadly, there other timing? prescribers it's is number or that influenced and the more heard point, any reached could Or of on that knees? concurrent either early, have the this prevent other target always were increasing the evidence

Michael Clayman

Yes.

Dan, bilateral, me, answer question take So to ask about about me the let and first let Deardorf we'll question targets. Dan your

have don't to those is who XX% have sequenced even diabetes times we are substantial. patient so the even do patients, you So enrolled of don't immediate-release that a We because levels injection Frankly, way injections - clinical diabetes have going but pain. is receive - pharmacologic It bilateral a are sequenced. bilateral know is are early and that receiving knee that to days are simply if know that with those knee at from if steroid those of if trials, created they're you I'll in bilateral for one and there's commenting that steroid you our being setting. so anecdotal a typical injections at us between to trials ZILRETTA evidence that with we be it have least patients tolerated. well reason typically diabetes on have say is if compelling is that bilateral patients you happening XX% many

all field data, pain of bilateral of her have got that was relief And got too often I immediate-release plural to go she diabetes, but not have not in You her knee made and bump - I anecdotes her had bump was is did sufficient right had what long and steroid have were we glucose. now. that's aware at injections. immediate-release to injections who patient, ZILRETTA that steroid in the not glucose a said one on her ago even And with and gotten injections exceeded what far the

physicians it's physician the going and knee patient hopeful So it's we're Ultimately, a this. that to the basis bilateral for with level will be consider decision. data that that to at story. And provide of

Dan Deardorf

That Yes, and was did probably that the some accounts. accounts, very these out may additional reps we've and accounts, to also a extensive did. the physicians physicians identify target target real proprietary but identify targets, of as said, predominantly a few the we additional piece with work the world, respect of to that existing recall you that to we in they'll modeling it get addition identified extent within

with given accounts. targets XX-plus% XX%, I'm, to got day, their right with pleased respect reps, and we augmented physicians that any it knowledge, how launch, quite these the our is the to frankly, first-hand difficult in these identify that. identifying at So And end have of it

Operator

Nachman Gary Capital with from comes question next BMO Our Markets.

Unidentified Analyst

is Nicole on for This Hi. Gary.

are the timing patient to 'XX. announcing specific around of we is going more the around that you to hip you be in the the provide data readout? be? For Can enrolled when second shoulder, also have and And last timing half a currently study going

Michael Clayman

stay second We're with XXXX. timeframe. half confident the in going to of We're that No.

we you Rather, when the we on provide announce of we've which we we data, a weeks will once in data. or can last have so move As not in. is on last typically the typically And greater month a announced patient expect from year, patient clarity matter in. or

simply I say So would tuned. stay

Operator

next Wilbur Raymond question Elliot Our comes James. with from

Elliot Wilbur

to First the recognized some in the that demand revenue question. of in-market With stocking. much quarter, versus potential respect folks was trade want to how know on based actually

Michael Clayman

is So And report, all Elliot, we user. end that's…

David Arkowitz

ex-factory. was It

Michael Clayman

is ensure I'm distributors is. place Ex-factory. believe We're we undue and because, I there for it in to the fair what we misspoke. direct demand, sorry. going rails that is beyond think is. it's ex-factory to of majority ex-factory I But at not And important that reflection specialty a guard details to into what us, is have mean get not it's report say stocking that. we that vast of it I demand. is

Elliot Wilbur

Okay. expect reimbursement have to Then date high-touch with X,XXX hands-on terms target of total yourself with total in accounts, those accounts had had and with? sort that training. of high-touch sort of those high with the conversion direct product experience you of of about How actually many target actually the of Mike. I Dan and experiences of for follow-up mean looks X,XXX accounts well, sort X,XXX been or do you've as there's like experience that to extremely you've of kind the it around of question, probably

Dan Deardorf

Yes.

the of to clinically them, making versus is think first reimbursement have think to positive we're a to breadth you're that speaks our living first sure experience I accounts perspective. make going with and well So as from a I they're depth identified strategy. our first comment We as set points

remarks, So on it out pre-prepared breadth. as speaks versus what to board. sure the indicated anything We're with conversions. respect those expecting are across the we to I of into we're branching the in targets wave We, now next with depth not the

seen the metrics. did deep wave to, in as that digging and customers on first be we'll so ensure of these the as we've positive we conversion again, experience And with

Elliot Wilbur

And quick that. ask, Okay. to a wanted well, maybe then just to follow-up I

so expanded of cover? target RXs remind does the Do that So you existing - expansion percentage what base of you've expanded us PCA have number with you just at IR this Can XX,XXX, that prescribers. metric?

Dan Deardorf

it but an in we're respect the have exactly, with general don't to I business. rule following XX-XX

Elliot Wilbur

Mike. of noteworthy I Then is report of higher had dose the guess of and experience. patient from the was scores. data such recent percentage sort I respect guess to Okay. the thought real-world for with KLX particularly study constitution the a question repeat that I last terms in it

Grade data is what kind was from feedback specific of a But just sort of just would it wondering it little metrics of end-market think how wondering XX% around population sort mean seems like have I the I you're prescribers. getting experience, of on metric. obviously over practicing that resonating based KL have particular on X. I'm been of tough of kind that the sort a to with that treat. field don't We there. point

Michael Clayman

population feedback, to to to KLX patients days fair study. you registration controlled our pain And wanted pain. a and say KLXs. KL it's KLXs with severe in most in with looking pure, in tantamount pivotal couldn't that product apocryphal have suggest I'd would is the early But KLXs be patient to this an say if that real-world data They're more it's at the ethical we trials. felt pleased this would registration to say and Yes, We perform so will, not fair Yes. treat, many will is at something performance. difficult the understand to most looking And are could We responsibility that will with population. and we be severe moderate studied the treated. physicians treating a how trial are in that that be a but we getting X terms they're to real realize our There moderate when KLXs, patients, most grade. in of world more

Operator

and comes with question Belanger next Serge from Company. Needham Our

Serge Belanger

vis the a about you've ZILRETTA Street for Mike, in level XXXX. your vis asked comfortableness consensus past the estimates for been of

code that in wanted Q and that to the been revisit Just now granted. a quarter we're has comfortableness

Michael Clayman

Yes. at I has leave would point at and nothing it would say that. this changed, Serge,

Serge Belanger

the questions Okay, good. Can looking Have you formal And - policy? commercial describe with you them as met they mentioned step how payers. XX-some are A for of met efforts current with Dan. any edits? now As sampling I started issuing you've their couple at of think well? you

Dan Deardorf

clinical And Yes, order where Yes, with program experience so product; in and payers just we sampling. we sampling that is reimbursement everybody me so clinical the so get the for is being samples. there situation them commercial in get where ground first non-clinical resistant to physician generally, reason to want a a let use experience. our use samples product a we - when to utilize them

continuing we in So do we judiciously are continue so. and that utilize cases will to those and program to

going to those we're that of we're going to that kind As earlier, mentioned subset of samples be there targeting, physicians next experience. get that to a certainly to them and need order clinical in will wave be of utilize we'll

in written and as to to program the use very judiciously under I time. have respect very, just those we at this payers, commercial policies circumstances, point continue With few So mentioned. seen

very but that those policies, very, time, point We and continue we so to in can we and at educate policies. seen this with monitor have work payers impact few

But daily get category, asked go in step with edits about step in that's start to something edits When surprised customers specifically that in OA treatment. step those if it's edits. we we normal do deal You through not something basis their order and injectable be policies, to saw a on that would are the some I for recall step patients approved order our edits. seeing

Serge Belanger

Okay. One last one.

one last been of from that, I interim are month in the study repeat You physicians parallel the to now dose that for the up at months, market for patients feedback guess meetings. from that? you've data gotten X physicians? are How Any And handling re-treatment. presented coming on you've some

Michael Clayman

Yes.

bit think OARSI ago. I early. presented just week-or-so at literally a We So it's a

in good the repeat the we're rendered we in in relates world, world that see it's long, the us. particular So the to for going taking think would real be before to front patient information. to their quality data the expect particularly this it by desire data on And to have a a decision of that's eager I and in experience to first And print as second complement real or be And response to and that we pathway of of would related injection dependent the dissemination be full dose these in of will as the physician of the a details that the patient. in get injection.

much I stay That's also in of say tuned. front pretty us. would So

Dan Deardorf

point We've little at this in Yes. Serge. very seen time,

Operator

comes Our from next Byrnes Securities. with Northland question Carl

Carl Byrnes

code Q code recommendation permanent the C on particularly the and code. for and Congratulations J Great.

place &quot. ZILRETTA So once in is accounts Q that add to they'll regarding the can is saying, July going comments? incrementally code you J saying Q use Or whereas now code are effective were becomes they effective Xst, We'll the maybe that the on? Is & before code quot? there permanent use perhaps your ZILRETTA once anything what's prior

Dan Deardorf

Yes.

point code this at low haven't them. awareness the Q feedback dissemination pretty I our information we accounts of of think that heard is from in much probably time so the around the and

we'll a X. have But how the and implement effective the Q much heard there's not codes lot there, prepared marketplace from back our given moving to best out As customers intentions mentioned of fully their that Q on be I forward. we around educate earlier, code not to July

Carl Byrnes

for publications the hearing. to market peer-reviewed that you materials can you do plus I'm use it's of that That's body and to that? going be the is think what So catalyst

Dan Deardorf

for reimbursement are claims a reimbursement code and defined that to But as out think make will receive fill adjudicated those to sure appropriately definitely to be a will ultimately with some education usage. product how be I for there positive thing. the forms best dedicated as Yes. that the again, seen a rate

Operator

Lake question next with Capital. Bruce from comes Our Jackson Street

Bruce Jackson

If I in could just questions labeling get for a couple of the diabetics. on

First, the their the to what out ZILRETTA does in And think decision-making do for and differentiating it's the it factor physician then, marketplace? secondly, drug? extent into you enthusiasm

Dan Deardorf

and a Certainly, them. think gains when the &quot. data it We always Some them, quot; a them. physicians complete work-up Yes. front traction with about in diabetes certainly see to It's center me see for physicians that patient thing the data they on present less have specialists when to & that they one often say hear, is and don't we

is thing patient think know thing one don't So patient to if about. it's one the for so for worry the it's patient again, they worry them is about. less diabetic or if diabetic, less they about pre-diabetic the know to And and do to

messaging So center our in again, and front and is getting traction. to the it marketplace

Operator

Our next question comes from Patrick Trucchio with Berenberg Capital Markets.

Patrick Trucchio

I was treatment update potential XXXX, research last released society for to an and for guidelines, regard of there guidelines knee in was the OA a time XXXX. OARSI the the these With believe

when also reimbursement ZILRETTA status issued, impact you to then So the in update if may ZILRETTA. awareness, have update. I'm the know is of whether uptake and/or included this, wondering And the be be next may either this on going of what

Michael Clayman

societies, exactly have have, Yes, on AAOS, I relations cetera. when I available the the issued that, be think, could or tell Patrick. that actively not. be based certainly data, societies; very guidelines to to Premature clarity are et by leaders of will of the is to will OARSI, updated exploring. good guide Academy any do included in Orthopedic we that not We and on can in whether American we of you with the crystal-clear senior case Surgeons; the is ZILRETTA each it something be extent those feasible that that guidelines,

Patrick Trucchio

perhaps payers, ZILRETTA for you've days. had whether not early or ZILRETTA Dan. you've formularies patients And mean of then it's the Okay. if HAM clinicians HA. to one or are just be I sense wondering just switching any ahead in I I'm with sense placed whether any discussions follow-up will realize from had

Dan Deardorf

us it of to HA. discussion and decision-making have we've But payer. possibly conversations an of I haven't either early they're Again, a a think be and days before for we that hard heard within after believe lot don't basis. some policies or an real-time HA after. policy heard a on happening with ongoing or to those It's that algorithm that an any versus us Yes. indication would of would respect with

Operator

comes question Janney. Trbovich next from Ken from Our

Ken Trbovich

quick an and was update status obstacle that you ones. I of couple sort on us whether have Dan, that's of guys the a Just one ongoing or wondering an if overcome. still or already you not refrigerator could give

Dan Deardorf

that on we X prepare the stone the to always our rendered unturned work was which we that the of that leave policy, for did fact a of label issue. weeks moot no all have that, Despite stability room temperature has Yes.

Ken Trbovich

it. Got

at can wouldn't guys So sense. more buy-and-bill? all in they it's not terms time. a in inject of concern forward These obviously confident They with in are of that that being stock able the period to push that

Dan Deardorf

The month. ago a on not we reorder of if many the that informed all. week, not weeks, outside every And actually us at and/or years steroids Yes. every that most every few accounts did products, pre-work HA their them and X

to So temperature of there. weeks have stability room us in certainly puts X

Ken Trbovich

great. the (inaudible) there? And with be an thinking expecting fix better regard situation we manufacturing you're there, when charge that off when quarterly a then as be that's of on to Or on-off is No, we of is just for should understanding billed and with and getting like the it's consistent cost you're overhead suite it this not. should

David Arkowitz

of gets expensed inventory quarterly charge and in commercial commercial goes to the releasing in absence that releasing consistent a product. setting It's of the product

see expense quarter. quarter So will to you vary this from

Ken Trbovich

that just or extent the on had covering a just your of call guidelines what to and sort out that of visit fact certainly informed a is relates are many the the I there. HA. seeing just that benefit noticeable question aren't last of flat then the it guys was something reception points? and as recent To AAOS And Okay. plans you

Dan Deardorf

Yes.

with trend We there or learned first just happen payers. at least I are We that another continuing of hear learned today. here another and today of various to

continuing to appears it that in trend to So happen that be is a category.

Operator

showing our call at to host. not turn time. further this I'm back any I'd over questions to And like the

Michael Clayman

we'll care. as as with always. updating to Thanks forward very much, everybody. Appreciate you arises. Take it your information look new And time and attention

Operator

conclude and gentlemen, this presentation. today's Ladies does

You may day. have now disconnect wonderful a and

Flexion Therapeutics (FLXN) 8 May 182018 Q1 Earnings call transcript