FLXN - Earnings call transcript Q2 2018 | Flexion Therapeutics Inc

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Flexion Therapeutics Second Quarter Financial Results Conference Call. My name is Nicole and I will be your coordinator today. At this time, all participants are in a listen-only mode.

We will be facilitating a question-and-answer session at the end of today’s call. [Operator Instructions] I will now turn the call over to the company.

Scott Young

afternoon. Good Young, Corporate Scott Relations. and President Vice is Communications for Investor This the flexiontherapeutics.com. the this call this on issued release can website and found Both we of afternoon earnings an archive be Company’s at conference Dr. Today’s call by led will Executive Flexion’s Chief be Officer, and Dan Senior Michael of he Vice Chief Flexion’s joined David and Operations; Arkowitz, is Financial President by Clayman, Deardorf, Commercial Officer. be projections. include commercial, and regulatory On that today’s financial, statements teleconference making forward-looking we will clinical matters, and or relating expectations to clinical, or financial sales, Private and Reform expenses, regarding within including Statements are Securities business operating business performance, net Act. the statements strategies regulatory other conditions meaning and anticipated future cash forward-looking of Litigation the utilization, commercial milestones developments which change time. that these over statements cautions to forward-looking uncertainties, various subject Flexion and are assumptions, risks

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

Michael Clayman

will joining the this program provide and for to financial afternoon development open we us for in Flexion’s our call. all our you on update call second an will performance thank ZILRETTA’s Today, discuss up quarter, Q&A. earnings and we Scott, launch, then Thanks, activities, the clinical QX review

increase by to as sales earnings progress over press we in ZILRETTA’s sales million, a approximately strong QX. As see $X.X reflected of the XX% represents with second which in release, we in launch our continue quarter, net reported

provides ZILRETTA with is half made we track. work progress ZILRETTA’s the on we’ve physicians. introduction the we of it the hearing. team feedback building the share we their done very specific and bullish strong a our Q quarters in the remain In payer has commercial contacted strong seen based the on of clinical positive experiences launch advancing first they And foundation ZILRETTA. have early is continue And with pleased awareness code still to-date, ZILRETTA’s to a that directly days for about we’re who second XXXX. about patients While remain coverage with be The of to want physicians by and vein positive clinical stories the and potential second

since many anecdotal who us of ZILRETTA’s our are confidence a and moving potential in millions is predominantly confront buy the these year of deepens make OA XXXX reimbursement, painful of we physicians type product. patients respect With that profoundly knee. for While meaningful of the this as feedback be and have a a will for inspires and need to reimbursed difference foundational to conviction obviously they gain described further to ZILRETTA, which bill

On see continue service. our through forward to commercial coverage the flex we front, strong payer

of the code half we reported have that critical will ZILRETTA we a driver approximately reimbursement introduction such anticipate ZILRETTA’s the which As as receiving be we January. previously for J market, specific represents Medicare as And product J believe code. of most next

relatively that Q market more codes the majority research commercial code makes Q payers Q our X. Furthermore, on to code also decision However, the specific since was indicates a effective a consistent. CMS development, said welcome July code. reimbursement own simpler, uncommon. made for Q are as our issue on the became call utilize faster ZILRETTA expected are vast of ZILRETTA, we This earnings which discussed very last and to specific product That

with is prescribers fundamental personnel. of So level required that’s education their a there and office

will staff in the included to office code. large to their want institutions payment orthopedic practices on Similarly, work get Additionally to confirmation physicians with the formularies. of see we their Q ZILRETTA continue utilizing and

We internal processes. accounts interactions months. many making multiple these area require are good But progress their span intricacies navigate of in that can of to and this continue the

focus So this for our remains teams. an area of

usual, launch in As much more our detail. Dan will discuss activities

peak This we Why profiles of systemic appropriate both of ten-fold point, an adverse immediate the as the exposure indicating knees Phase in Furthermore knee view concerns place? OA triamcinolone release at pharmacologic ZILRETTA did the in for both on that the first in like I we excessive data the high treated reduced in patients knees the data were compared Currently substantial bilateral systemic acetonide release and to a OA with of would knees of insight ZILRETTA this concurrent the pleased triamcinolone injections from patients from in for on So ZILRETTA generate exposure. treated lower immediate ZILRETTA that to our The in the patients pain steroid injections July approximately bilateral were the acetonide. with who and systemic triamcinolone a associated both would study show well both with triamcinolone for ZILRETTA injection release and immediate knee short completed concentrations and exposure. study acetonide concentrations with whether with provide press this visit In in avoid demonstrate groups. systemically. of am second I’d immediate generally visit in the plasma most on triamcinolone be our development safe and release level study injections ZILRETTA initial demonstrated X was with subsequent trial then injection one similar triamcinolone start trial event provide injections compared report receive our finding patients and performed other that to an bilateral based positive. that knee on evaluating the tolerated activities. of concurrent with to do clinical update would administration results To into steroid pharmacokinetics of a bilateral to release today, clinical provided

these the interim which X-ray study soon as We for that data Phase was following weeks second results, at in XX. at repeat which evaluating between initial received tolerability XX show have as analysis that their and And time of the forward one average open-label of closed respect of baseline conference than of a weeks injection previously the patients and presented the in and dose compares ZILRETTA possible. radiographic data, medical We administration set of and more knee. XX overall presentation With later ongoing data a year. The recently year. second major this including to general full XB full dose results to after to XX% OA study the our we look submitted safety presenting

year. this to expect results We in make the fourth quarter available the of

open-label available results synovitis of fourth anticipate assessing currently year. the this has follow-up, open-label will and on SHIP enrolling Regarding as we of completed our Since progressed and IA OA PK with planned study, knee Xb, the a study of enrollment. shoulder in Phase of safety study patients as study patients the ZILRETTA The the quarter is OA ZILRETTA it the be injection weeks single in Phase in of with of X, administration we evaluating hip known or this the have the of of patients. XX has effect

in specific enrollment criteria eligibility the late results expect will take anticipated this and We time are consequently, XXXX. study for due various topline to

progress anticipate our of we is studies an receptor candidate, human toxicology inflammation product gene planned joint. we designed filing GLP Finally, within the is produce of to and FXXXX, antagonist, it successful, IND before and studies to are now first-in-human to we continue summary, clinical intra-articular advance initiating interleukin-X pleased turn are therapy clinical with preclinical our whenever the both trials and present which in If an over on-track Dan. share XXXX. on to the In SHIP year-end. trials we updates administration studies I’ll the repeat are

Dan Deardorf

Thanks, Mike.

launch more now quarters two earnings as reported we’re a We’re the ZILRETTA. driving on our of and progress in the the strong building little adoption release, just making we and full than awareness into

dive launch quarter. of we provide I did metrics, quarterly some as in I last into to like our before the cycle I’d context where are However,

out have made our groundwork preparation on previously supported is or the treatment pre-determined ensure purchase laying the point, by At Business target reimbursement and their and of all that to discussed, process. the gate, our every working and physicians, reimbursement accounts to play of calls the ZILRETTA’s them product are in and sales training accounts them the those I paradigm, field or Managers and our this goal educating prioritizing important benefits verification offices coming role key them processes. step to high and for As prescribers about uptake ZILRETTA introducing essentially of product, the MBMs were through our Musculoskeletal reps can volume MBMs

of larger and access a such and strategically usage. ZILRETTA net set practices subsequent on target broadening at But intra-articular we what of Mike as point, pull reach our historical to remains expect to impact Q the to reimbursement, We and will be. gaining hard to continue through the key as for of are specific us. respect we a With depth quantify injections. be prescribers. progress and see this to described, engagement tailwind utilization formularies Concurrently, institutional Based product code factors of it to the now

signs And utilizing Access prescribers reimbursement informing that Q the and who already well the staff about code based and being Field educating seen are experts reimbursement However, their have our we specific Managers, received. encouraging of and advantages actively code. are MBMs field is the ZILRETTA

as or meetings now physician as peer Looking well the to at in QX, other Regional our continues Medical engagement educational increase. volume campaign Society key activated. is peer DTP at to And marketing activities of programs, direct-to-patient

Knee of a Annual American October at Looking education and Meeting American both Rheumatology Meeting have and Surgeons Association ahead, in College physician we the the Hip and expect in to presence events November. significant of

commercial Moving previously of prescribers, initial conduct all continue we our this update training. That Managers to a metric based so targets. forward. that approximately through accounts. Market to reorder. discussed than lives. with Commercial achieved, virtually have in-depth processed more X,XXX notably, forward MBMs metrics, won’t since of more said, the remain and represent commercial over engaged commercial ZILRETTA. look moving FlexForward million overall calls of our the target that XX% to Furthermore, long-term or they I And service continue and place as our the And of With of And in the providing it XX pleased with and accounts earnings product team for launch approximately roughly ZILRETTA discussions strong David. X,XXX update have half remains XXX made To for done has next quarterly now samples and purchased I’ll covered call performance purchased wrap which have be up, we the Flexion’s near target on to our coverage ZILRETTA. progress QX ZILRETTA the reimbursement XX,XXX of roughly on to at or turn goal or either continue X,XXX that on reimbursement, to with XX% on Field coverage around about our to Access preparation MBMs our trajectory ZILRETTA. recent November. received verifications potential represents With have Access our indicating respect benefits of the key launch, accounts excited I insurers than roughly now of physician

David Arkowitz

Dan. walk for $XX.X quarter company’s of pleasure for reported of of to million the loss loss net through for performance Thanks, is the quarter It second company second XXXX. my second the to quarter $XX.X of a million XXXX. a compared net financial The the

for his reduction in to XXXX Medicaid, is million. for the mentioned of the ZILRETTA of VA, quarter quarter of and $X.X net sales institutions reflect and government gross to the sales the cost As comments, distributor and reserve The primarily months mandatory net DoD. for XX%. the such $X.X The net as and totaled reduction discounts was fees, second six quarter comprised sales rebates of returns XXXb and gross million second Mike of net

XXXX for and our million over million salary As we additional compensation respectively. be expense of we the XXXX. expenses other expenses $X headcount quarters period expenses and have of or to due low $XX.X respectively. $XX.X R&D in stock-based and we XXXX headcount and XXXX – $X.X notes. with as and for costs expense of and to second sales percentage establish costs additional increase other to quarters interest of commercial expenses of General by quarters rebates and second million other $XX.X second as increase associated million to primarily second to don’t the to costs. the end million XXXX in XXXX. employee was with salary due with pre-clinical increased $XX.X compared on no in associated the quarter for provide due million convertible and second and million additional salary primarily general $X.X due administrative Interest to and and teens incurred development marketing the primarily to compensation quarter for increased ensuing the and increase related XXXX expenses selling compared to million related year-over-year to quarters associated of expansion expect million $XX and costs were million net provide and expenses was increase well expense, in XXXX expense. $X.X employee-related employee-related in was an administrative in Selling, was Selling portfolio program our costs discounts, XXXX, The for increased second $XX.X interest of XXXX, $X.X quarter the reduction $X.X and and million were in Research capabilities. the our XXXX, the customer The increase of plans to and million stock-based The expenses in were headcount gross other and same

Company million of as cash, compared $XXX.X and December XX, in XXXX. $XXX.X had cash June marketable XX, XXXX, million of securities As equivalents with the

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

Operator

our concludes open Instructions] questions. from now of comes Maris the [Operator first line Wells call We’ll That of Thank the question remarks. your prepared for David you. Our Fargo.

is line line David open. is now Your your Maris, now open.

David Maris

like for the the the start see? sorry with at looked mean feedback – you Year, will using this for be – for where think lower a would the be ZILRETTA, launches that previous the they it of J users the from separately most? would that Hi, mentioned what reason been and pushback you’ve same? any different Thank you about Is you. non-users maybe not code of at I When questions or users, main you’re what’s that the then what’s the pickup there on this, tailwind. codes Couple expect that. for be resonated or people what’s sales getting it high high And users the you to then sort that the been do New

Michael Clayman

sure. Yes,

questions. So make Q Are J you code sure about let me for asking or the your got I’ve the modeling January. code come

David Maris

sorry. code, J The

Michael Clayman

Okay.

David Maris

The J in January. code

Michael Clayman

look et to It’s We’ve on products obviously exist be to lift find found if disease similar your dynamics to area, Yes. analogs that done a analysis competitive with the will. cetera, product. that hard we in that space might some you analogous the good at in

this for that tough at in to it’s So us quantify point time.

that’s identified miscellaneous this through year have elements the makes the We one working is that J of a code. foundational

a now it’s around year growth. of in lift the product that next to it’s they’ve year expect customer from their offices the and hear with. next Q known pushbacks that expect any for that’s really to any could that the part J some product our product significant will been respect help regular seeing up something analogs the for Now of and response, have are quantify that’s and at physicians tried respect track I And that on And the due code few value reimbursement. the or with reordering this of code very the who help the to fact clinical J the on ultimately but record the a more able J would that that year. going certainly With But comfortable that utilizing certainly the point say is the have code, that Q is product in number will we convenient to they’re the of the basis, seeing so anticipate comfortable, reimbursement. and this not in bring we in audience, the not they’re frankly – have data we to what half performance back they’re predominantly patients them time, some call product code to the pick we in and first code if

David Maris

And that about And what physicians are getting then for except follow-up what doesn’t physician percentage him can product a the patients. – is we the then use well, use asked did if the I call we diabetic about quarter, diabetic he in and one just you that is his XX%. use all, during he says said physician at

just that so to physician diabetes it feedback patient have far what’s limiting the the you in If been diabetic or patients are population?

David Arkowitz

of hear what patients there’s patient I – place patient it’s would subset patients important first that but the their acknowledged go population. utilize their usage additional population. an is think first that’s up David have But with a a just limited we I to the in that products. physician say that clinical minority started more that to might yes, obviously often an It’s reason they couple

it heard what that data initial bill don’t it’s use. physician on have type on patient we’ve we administer minority buy at population, a a know we based their facing would beyond we’re what product that say limiting So least and to specifics, patient are hard but and as I

David Maris

much. Great. very Thank you

Operator

you. Thank

Capital Our comes line next Markets. the question of from Stanicky RBC Randall of

line Your open. now is

Dan Busby

Hey guys, this with question. Dan a high level Randall. Busby off on for is Start

earlier point more getting comfortable I’m of this ZILRETTA. year. this XXXX year, to for anything Street probably and the halfway are overall then has tired but And from respect this question, expectations still the they with with through Now consensus at this than you changed are your estimates you’re sure XXXX

Michael Clayman

Yes. Thanks, Dan.

we script we remain bullish. product, they strong. expectations very Regarding And our said for the as remain in overall the

the would relates I pleased And is quarters with product with we’re as we two track. change the on We’re say nothing proceeding in the performance confidence. to consensus very first of it were

Dan Busby

you’ve right, past. started have sampling purchase And and breakout then samples with on the the in But the a then off All great. to could hesitant follow-up. I percentage on know accounts to quick just of comment gone have that been you product?

Michael Clayman

Yes.

not breaking a had usage is, We’re of as has product statistics after said which been we’ve they’ve sample those that out to experience, the clearly the than is positive. lead separately, that very other intention

product. great from But specifically. breaking those the results seeing we’re We’re out not

Dan Busby

Thank I’ll leave you. Okay, it there.

Michael Clayman

Thanks.

Operator

you. Thank

of from comes question Nachman Our next Gary of line the of Bank Montréal.

line is open. Your now

Ann-Hunter Van Kirk

you you is full soon payers tell have Can on that physicians dosing repeat discussion Ann-Hunter label? And now data handling repeat the with have been Kirk payers. in some the think you us how be both this have might X-ray to for Van coming and important about the will how including changing we Gary. Hi, able be back? injections how ZILRETTA, the And for a FDA patients

David Arkowitz

Yes.

is to – that point product data, the on product. reused Mike. believe respect or turn the in marketplace very, I buy written. The very is think so into still hearing getting information we’re the the payer seeing And not bill got and being to with track it’s position go since repeat we – payer few over to that when happening, what treatment seeing point at product, are respect this repeat in with to time while policies that in to we we’re this certainly on That’s front, we’re usage time. The repeated a actually reimbursed. we’ve that and able at

Michael Clayman

the follow-up Yes. and the those from XX-week we’re encouraging. – think presented data It’s – second so first we we’ve find on injections quite I as

the topline can have confident to-date, allows it’s the productive be should be data end the to Where the processing that a fashion can to simply delay. it form be as data guided discussion and study the by discussion And they for is we’re to say of for topic We by some they I with encouraged we’ve this discussion basis agency. that script as we what completion data as available the feasible in in we you the the the dialogue a of a soon of believe be that year. to without agency certainly of about those ensure with reveal, will from proceed comes from the

Ann-Hunter Van Kirk

Thank you you more, be intact PK could how is knee clinically would and and data And the particularly so it’s from much. what us you one ask expecting do if shoulder the how hip to I can tell see data. and relevant bilateral

David Arkowitz

Yes.

about peak immediate with So already the with bilateral we’ve the I with between way concentrations unilateral steroid bilateral tenth the what meaning plasma with data consistent itself that think and seen the with that its that reprises is, unilateral theme the one and to injections, demonstrated release one injections data. think we’re twentieth

these the to agency submit certainly data in inclusion for will label. potential We the and

So they as that they of could treatment optimal inform patients. their the physicians contemplate

understanding. one infer the the to SHIP both will the it on injection. be likely relates label potential perfect, in to would But expansion. confidence have use drug there not [indiscernible] the residence time to it as study, But the in believe plasma following gets data indirect more an it’s that of provide of ZILRETTA we of a us As it’s ballpark beyond similar based explore hip fully to and prelude measure, that shoulder work the PK,

Ann-Hunter Van Kirk

Thank you so great. Okay, much.

Operator

you. Thank

question comes next Elliot of of Raymond from the James. Wilbur Our line

Your now line open. is

Elliot Wilbur

Hey afternoon. thanks, good

ZILRETTA’s of impact antibody all at you you of that not ZILRETTA? really or I’ve the questions ZILRETTA. intersecting got about tanezumab lot just still for competitive first out. Mike, lot there’s I’m of – came I much some the world relation a to a about think question wondering this question. and is given guess to a here. expensive when compounds uncertainty most data obvious lot its overlap really of an Pfizer, of could likely But high be landscape that monoclonal issues Lilly class or just kind have level prior AE potential Just

Michael Clayman

the not the fit – might Elliot. treatment Yes. weighing I competitors how preference strongly might is not on paradigm. not into My question appreciate or

have Phase As studies XXX out. X the we over reported of tanezumab patients, now you X,XXX patients worth for data acknowledged of

treatment And in come be lot I exactly product us. of of might think that say with interest. There’s will to we simply paradigm, out. in where the front still placed I’ll data a follow is So this great

Elliot Wilbur

now then talk you’ve probably more little in X And Okay. towards point under guess. licensing resources forward opportunities. not just one little might and initiatives BD potentially or three I a bit endeavors belt your going launch got whether those quarters that or a Maybe accelerate ZILRETTA talk it experience about quarters

Michael Clayman

maybe that start our ZILRETTA saying are by four two, Elly just and success. one, three Well. priorities ensuring

the will a We company very terms done are to heads of a down essentially responsibility mind a in our efforts in build pipeline, on of in to the therapy, subtend that our pipeline. everyone to that the And in we’ve said day I that gene are and top I that. our committed resources is every the create are Having plans building out modest issue way. of amount resources future that that with committed, sense we ability FXXXX have carved think responsible of think

not that You building ZILRETTA whatever are in do And and not prudent we ensure the right, any ensuring deliberate from we does success. are that done meaningful we in pipeline, are to be process. fashion but takeaway going

Elliot Wilbur

Okay. just released in data believe this then with those label And specifically discussions those data. respect potentially commentary, may Which but just the opportunities? have, expansion of would bilateral to and do then you to open your with respect earlier it last repeat question I

Michael Clayman

this. wish clear difficult to give a it’s Well, answer very you I on speculate, I could

worth appropriate as something and as know excited soon very sure datasets. their that discussion the we the will will both be agency We’re can be that I’m as a sharing inclusion pursue the you with we label possibility And we shared. will about in of

Elliot Wilbur

you. thank right, All

Michael Clayman

Thanks, Elliot.

Operator

you. Thank

Our line next from Serge Belanger of question the of comes Needham.

line Your now is open.

Serge Belanger

Again couple I guess, the code impact, campaign and is five of or on the July now since Dan guys, you’ve in questions for afternoon. Hi, volumes for had four good active direct-to-patient A Q any underway. weeks of also first, sales. noticed start an

Dan Deardorf

to Yes. to tell that. Too quantification early any with of respect

early early we’re have like seen again, got efforts we’ve obviously well up that days we’re similarly with recently, say things the just Q to here that program and around early DTP some our website very quantify. codes And as with, like on visits being received. pleased just in too I would early but signs running stats We well. the still but

Serge Belanger

kind the code I a code be you will eventually address the prepared or still that just accounts. think you in push the comments, for Q in back your with discussions And January. of do reimbursement take Can was then target with that think J mentioned it issue

Michael Clayman

Yes.

Q will to a is specific move amounts – It code varying product time them. accounts, take going a I is get to think the comfortable from of themselves with accounts, majority varying But of that. a can that reimbursement a rate go that dedicated the going on they concretely the be for. to create and ways is code long see they’ll with website looking CMS to comfort up look

Serge Belanger

And how through scripts of guess, many Okay. go your, commercial I then flex forward.

Michael Clayman

of specific We we’ve have number got been do. we’ve not a – about quite them that,

we do going very for gives us great XX% when because ZILRETTA, have verifications we So showing coverage significant volume forward. report that plus of benefits confidence, through the that we’re flex are doing that

Serge Belanger

the Thanks Got for it. Right. update.

Operator

Thank you.

of question from next Byrnes line the Securities. comes Northland Carl Our of

Your now open. line is

Carl Byrnes

Great.

and do Access or codes the you on like it First, if Considering in that might quarter is where J the first any congratulations knee increase look the staffing, so Thanks. MBMs Managers what data. around that quarter, the bilateral Field and the anticipate today.

Michael Clayman

as team, don’t. and FAM to time with Thanks, force, we sales first around set everything resources, size the everything do to right. we out of our out We we this No, our all the did the behind them set to Carl. in the we right programs launch, do the efforts

got the of there future, to at see of number that we’ve time people got handle still the right out we’ve any point right to. and the confident what we’re FAMs reps, changing number near need at the and don’t So right we this time in

Carl Byrnes

so you Thank much. Great.

Operator

you. Thank

Berenberg. line the from comes question next Our Patrick of of Trucchio

Your now line open. is

Patrick Trucchio

couple codes. Thanks, on good a product afternoon. of follow-ups I just the have specific

will J And can specifically, to ZILRETTA. the products code products sort in you terms of tell the expect know code specific code with new of then, with first magnitude us in expecting much J Q ZILRETTA. the for when the then magnitude Q has case the First, code can codes typically the we of marketplace, impact accelerate been growth when and be talk issued we and should you in How for the the in you should J and of these code. general then from

Michael Clayman

Yes.

thanks, – the Patrick. So

So for the first list CMS question issued timing, will November, it’s usually of the XXXX. timeframe, in the October October codes final sometimes

So confirmation know the a are area. of code. dedicated date going codes, two issued that will there respect or there’s J for that’s we to a the different and Q With timing them disease quantifying to particularly have I have when so three acceleration to any few think year we’re across

to of difficult quantify J code, in likewise, to with And that with try specific the the to market in many the could what quantification in elements market respect there’s fact, there so really as of be the exactly it’s there. So uptake of of specifics the to key we said the see that. clearly we’ve really product. start of one the the and XXXX, we’re the code into as us really, elements foundational our out take accelerate J growth But to see XXXX year all

Patrick Trucchio

is the external So question on the of sort consensus just estimates. on – on the second here

few to and you sort you you mentioned of how spoken expenses of you’re sort what and the years cetera. ramps in XXXX numbers know comfortable, the XXXX et and R&D that earlier revenue you’ve about over So in expect call increase next the of the

are are and So you I’m expenses where the both in the on terms expense side, estimates operating the beyond. consensus XXXX, with XXXX wondering comfortable of external in

David Arkowitz

are specific ZILRETTA support But in relates to prepared to expansion the providing we that David. as next and those is we street remarks expenses direction R&D over not is to support to expectation that. it that portfolio is the SG&A several years as continue will any relates activities. that, it can and to our said is the increase what infrastructure this and numbers, say What Yes, we similar

Patrick Trucchio

very much Okay, guys. thanks

Michael Clayman

Thanks, Patrick.

Operator

you. Thank

line Laidlaw. Our Francois of the next from question comes of Brisebois

Your line is now open.

Francois Brisebois

Thanks the guys. for Hey, taking questions.

couple a terms end topline Just roll guys of any effect months year kind summer of seasonality or of in as here, you around. expecting are

Michael Clayman

thanks a lighter of And summer generally some things by little the that. to like is there in the There’s the then driven lighter. certainly seasonality Yes, deductibles aspects months can this. – a little the in year, part Things be are early Frank. probably

into of factor and all our we So thinking there’s resource forecasting certainly some and seasonality, allocation. which

Francois Brisebois

Okay, – are you terms it? awareness. quantified how terms performance, metrics great. what you are familiar that in how as that areas then their so and of and reps and sales reps more work – And there How then – are does less are by do And rural territories expand – is and sales how if with evaluated? the into of maybe in that

Michael Clayman

Yes.

things and end can the and And areas, measured. rural account versus into the rep imagine that areas, a we our we lot there we we territories. have account, like. in is mention they the individual white our to With At how coverage the goes force, actually sales how of take the rural you pretty details those inside respect stop quota the Square that, for a was might all the how – and have myriad of of the we call analysis their we all is for States which which much those an sales how and So and is that. you they’re perform what day, territory of which of start And any measured have that’s space, they said we quota.

when opportunity group got out as has go we and those can’t we’ve sales to ability So justify spaces. there’s time, spaces inside rep. time full opportunity up in full an But are a those covers to appropriate, where open that those

handle how we more areas. rural those that’s So

Francois Brisebois

knee drug pain react then shoulder, depending that feel just the harder the lastly, it of the guys any there to on Understood. would reason the the for would think that depending differently to And hip, [indiscernible] on joint be you or maybe size is whether

Michael Clayman

of Frank, different volume conceptually, hip think these dramatically the shoulder. to I not to is from joints knee actual

expect outside these example, are care, reason be provide there’s of they general not would for expect to in locations the and we accommodate that used pain to joints and reason is similarly a readily as every to release ZILRETTA in would spaces of intend provide anyone We standard generate inherent So think I demonstrated. believe relief. the knee data that don’t immediate And pain to three fact able all injections. of there’s relief steroids that that in any these given

Francois Brisebois

Excellent. very All you right, thank much.

Michael Clayman

Frank. Thanks,

Operator

Bruce from Thank line of next comes the our And Jackson question you. of Benchmark.

open. now is line Your

Bruce Jackson

in question. ZILRETTA questions but my an for taking my been their who I’m answered, have Hi. Thank are population. Most the of And indication using about physicians, curious you diabetic is this usage code and population? of the place. to just once J diabetic kind in to drug expand how the they the their limited they’ll is like Do they they – that continue

Michael Clayman

Yes.

to I It their are this to think those what is those at they again a expanding even want in use time for how point going and I patients, I’m a try first. indicate are be try. to number. see patient diabetic quickly that They’re this we patients the clinically Many their try think the we patient patients, understand them to this diabetic quickly times it earlier, to first how that it going to patients there’s their reason it see responds is diabetic population. The might in minority. this, small try product limiting want use question. I first ZILRETTA from more physicians there does and treating to product that

a sales to job that the at that are the of ZILRETTA which appropriate. something all that’s different of Beyond and types, they've patient our reps been for broad products identify

So just diabetic with ZILRETTA. sticking again patients of physicians of their that are use minority for

Bruce Jackson

much. Thank very that’s Okay, helpful. you

Operator

further questions there Thank at this you. no And are time.

Michael Clayman

we’re everybody. very you following We Thanks quarter’s forward appreciate already next and looking your updating the and results. time much to attention

Operator

a may day. and conference. have conclude in Ladies for That disconnect. today’s gentlemen, Everyone thank great you does you today’s all participating program,

Flexion Therapeutics (FLXN) 7 Aug 182018 Q2 Earnings call transcript