ACRS - Earnings call transcript Q3 2018 | Aclaris Therapeutics, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the Q3 2018 Aclaris Therapeutics Inc. Earnings Conference Call. [Operator Instructions] As a reminder, today's conference is being recorded. I would now like to turn the call over to Kamil Ali-Jackson, Chief Legal Officer.

You may begin.

Kamil Ali-Jackson

you. Thank Chief Aclaris. Ali-Jackson, Officer Legal Kamil for I'm Please release results. announcing earlier today, it's press Aclaris issued third note that quarter XXXX financial

those in not find who've our of it, www.aclaristx.com. For will you website yet at the Investors the seen posted section of release who,

Executive our Officer; Fair, for Chief Gordon, Frank and Medical Chief Officer; call Brett Ruffo, Chief President the Shanler, Commercial David Stuart me are Dr. our Dr. Joining Walker, Officer. our our Officer; Neal Chief today and Officer; Chief Scientific Financial

Before we the considered remarks, plans company's and financial prepared statements forward-looking securities call make our remind and you I meaning strategy are laws. the to begin during and within the would objectives that future about federal we operations business like results for of various of Aclaris' statements position, operations this future

is the forward-looking the Results risks, are involve Factors risks could materially Discussion ended expectations to filings Analysis statements. to in on on no statements Financial update Form and provide turn posted are section changes on forward-looking at uncertainties of Dr. that of we over now for advised of to being website. the XX, our available information, Investors documents the provided of and new call to for President and website we and ended All September CEO the is Aclaris XX, based I'll and Neal account section SEC any SEC Neal? with today; may actual such webcast www.aclaristx.com. link in the from Operations results call with Our of the upon that of be current is the XXXX, and the Risk events and or differ Form conference today, described obligation be in and to information reflected otherwise. cause These the makes call XX-Q make the XX-K recorded we assumptions filed as and of December filing this of page XXXX, in SEC Aclaris' Management's investors time statements webcast. those time. under Aclaris. Please are Condition undertake A today's circumstances, call of year to Aclaris' quarter other from future Walker, section These this Aclaris'

Neal Walker

thank development our will CFO, which will Chief Shanler, a you, Officer, who of business, and Brett Officer on will results. you this it hand review plans and to our I'll Commercial for our financial our highlights Stuart our a Then commercial lines. then review Fair, off us touch I'll update Thank Frank start evening. Good evening, on Ruffo, Scientific few our clinical programs. after Kamil. address our joining brief with Clinical and business which time everyone, Chief then development our

call. Following during our Dr. prepared Chief of take portion open our the remarks, Q&A available line be the will Medical questions. your David will we also up Officer, to the Gordon,

RHOFADE, to with into As previously X%. to is a which October, asset worldwide definitive purchase hydrochloride rights announced acquire agreement in entered oxymetazoline Aclaris Allergan cream,

the by of United adults, in is many facial redness rosacea options. approximately with associated in medications, conjunction and a affecting million by same treat common medical prefer sign XX that can National Americans rosacea the rosacea. or with pursue. used by indications currently erythema It XXXX, in conducted erythema to to approved note effect and is with rosacea. RHOFADE estimates have the therapeutic reminder, agents papules U.S. on typical RHOFADE dermatology we for May the RHOFADE to the in treatment the the are important the are This redness, no States pustules facial redness, limited rosacea physicians affected FDA pharmacological rosacea of established topical unmet to Allergan the by launched making The Initially society. the an persistent leading treatment which and a and very XX% As Society of that is facial armamentarium to little persistent need addition an the of important patients option important treating Persistent opportunities was according more with or no approved most Late-stage approved therapies survey is rosacea to approved of in pustules be treatment for as other rosacea. with of Rosacea of holistically. is papules associated

product sales addition force current overlap second in gives force U.S. our in their to opportunity, synergy field attractive points transaction leverages in in create with call dermatology. the existing this bag, a and Aclaris' In market and infrastructure significant

In institutional liaisons, on knowledge team initial science fact, some with worked have X we launch. reps our and several MSLs, on or sales already RHOFADE medical who the

transaction to expected beginning of reminder, to As this in a quarter is be XXXX. accretive fourth the EBITDA

in And to acquisition subject review. the are close of to for the we this preparations regulatory antitrust in the interim, diligently and relaunch on RHOFADE. working coming weeks, expect the transition We

quarter to results. the third Moving

total the net of and contract million, ESKATA million, $X.X revenue During $X.X revenue million. research XXXX, $X.X of of net was sales quarter third of of which consisted

potential third sales, believe disappointed quarter for we While the with continue in ESKATA product. long-term to the

we adoption. trailing was initial is the The drive and subsequent to focus Given of over date. with seeing news account that our to it account is area X,XXX initial the that adoption are opened good accounts strong early of days, product

cycle multiple the therefore, in from can base, have integration to of can aspect reflected date, received have and business ESKATA QX been As our This we we expand focus span to is that continued the which both summer encouraging we anticipated, revenues. our months, slower the require months, the sales patients. and interactions cycle. account turned feedback To component than in has physicians clinical and have particularly of the sales

off drive on programs. kicked hard which October medical at And presence have have and direct-to-consumer our awareness worked a initiated X. We through campaign, meetings recently to direct-to-patient

ultimate with allocation to months, to progress we As the and capital, today, listing to of our received next XXXX. expires our strategy of focus we attention within the which announced our in while integration We confident remain market refine driving clinical of we Book in to few on And patent, particular just accounts. continue uptake the key size fourth Orange our will ESKATA we opportunity ESKATA. the we

to Turning items vulgaris. our In III September, Aclaris pipeline, a few for for Phase XX% or common to the warts treatment initiated A-XXX of note. verruca program the

consisting X enrolling data top plan, of in THWART-X III currently and line and trials X,XXX we to are We enrolling approximately ahead reporting THWART-X, are Phase XXXX. These patients. look forward identical trials, of

of studies with a update patients And to severe particularly evidence be topical Regarding in an providing our form open-label hair continue regrowth, in areata, year-end. alopecia the less disease. of we will before see we

over in over we data severe enrollment is the enrolled Officer, are This Stuart of in have to and an XXX also now the Dr. of who phenotype turn the Chief patients will top clinical ATI-XXX Topical patients Shanler, half disease. patchy the provide Scientific it line with is first trial announce our pleased AA-XXX update expected activities. Stu? our trial XXXX. that ongoing of I'll We on which to less alopecia in completed today areata,

Stuart Shanler

everyone. Thanks, Neal, evening, and good

pivotal warts XX% enrolling A-XXX common expected These warts. of our September, initiated and In as with of Phase common planned or the we III clinical treatment line leading Phase Solution THWART-X verruca of warts development the our for launching for are and of vulgaris. and data Topical the program Firstly, second XXXX. trials, Neal our mentioned, X as trials half treatment nicknamed in III THWART-X, top are program,

potential extension trial open-label safety we FDA-approved to filing. plan be common to NDA prescription the of in for has an the commence XX% treatment Additionally, warts. as first part the XXXX A-XXX

Janus on our trials. inhibitor Moving to JAK kinase or

studies and a both clinical As to in our spectrum address in in we the alopecia proof disease are are alopecia alopecia forms of conducting for of areata. topical reminder, demonstrating inhibitors order of alopecia X dosage the topical areata, totalis universalis. with JAK we goal of principle oral primary treatment And and inherent developing topical open-label full

on the X phenotypes the any and more be our in phenotype its we before topical then ability of areata. in AT will confidence severe demonstrates growth patchy less to severe year-end. of these have update patients providing We greater hair with topical will alopecia If ATI-XXX an AU, studies treat

are reported, updates allowing and patients on in providing program evaluate the AUAT-XXX provide therapy. these to induction us oral additional potential will studies topical long-term continue previously unique to forward data, with AA-XXX in and opportunity in formulation our we us with Oral or Topical, long-term X larger effect with studies. maintenance of months. This the providing to dose-ranging studies, set look with coming the We either topical as Additionally, extension open-label of

additional an portion from X data safety been extension, JAK to extension before have allow during all generally completing the reported August open-label topical Our trial will drug. has year treatment-related full the of of for the in tolerated thus order XXXX in is is period portion The the trial, patients treatment ongoing trial of entered XX-day a Topical patients AA, clinical year-end. patients Phase of of X-month and continuing receive a AA-XXX II treatment X/X inhibitor the was cohorts After the which results, a well indicate been exposure. drug serious drug to trial months far, adverse hair Evidence of in expected an of be for for to full date. observed. no open-label extended regrowth and this events And ATI-XXX,

a the for ongoing eyebrow treatment Phase be the and Of clinical date. open-label AA of of has topical drug thus X patients opportunity In being XX an trial, no on trial of well ATI-XXX in months. growth far, and and is in trial to of alopecia have to indicate in events with completing Topical alopecia and patients efficacy treatment-related the phase this patients of evaluating AUATB-XXX safety serious offered results, AA, the X totalis the eyebrows Evidence observed in we been with the to XX-month patients universalis. of the extension X continue ATI-XXX enrolled, including the trial and II Australia. X tolerated patients, adverse trial of the safety are Our reported after in been enroll hair generally are regrowth

being that conducted response today, efficacy half first trial XXX the of pleased this announce to trial, of enrollment Phase X the AA the in evaluate ATI-XXX ATI-XXX States. ongoing Topical expected will AA-XXX treatment the and our topical Data AA. with dose of for is clinical randomized concentrations parallel-group, Regarding completed hair II the are of double-blinded, of regrowth in of United have vehicle-controlled This we in XXXX. on are trial patients of and we safety,

study, Turning our in topical. announced trial. vitiligo topical to VITI-XXX, enrollment completed today this We we have VITI-XXX that's

are trial of of repigmentation expected the in vitiligo, safety facial the ongoing Phase data This and Our open-label with ATI-XXX X- II treatment in topical ATI-XXX and skin clinical for of patients on XXXX. of the and evaluate will trial vitiligo. both efficacy XX-month XX

a Topical Turning is ATI-XXX AGA, topical AGA-XXX loss. male in also treatment evaluate ATI-XXX study, XX patients the our hair in to and trial the AGA, on of expected announced XXXX. half or this which trial and the enrollment trial. our Phase This also today II trial that we open-label ongoing regrowth of We of the this with are of hair in completed AGA, Topical female efficacy will of androgenetic data pattern alopecia of as safety known first clinical for

from to will severe or applied as we ATI-XXX trial you XX ongoing atopic mid-XXXX. expected This approximately in of in trial. trial topically clinical dermatitis currently of Phase That's AD, enrolling this II the may is safety Topical our moderate AD. and AD-XXX trial data patients patients evaluate Additionally, adult open-label an and in have and and recall, with with ATI-XXX efficacy are

Turning now to our oral JAK program.

is and double-blinded AUAT-XXX randomized AA. of dose-ranging ongoing the well of ATI-XXX an oral Phase evaluate hair ATI-XXX, is JAK and treatment the of XXXX. in parallel-group, AA. the efficacy are second Our X Inhibitor from II X/X of and patients response expected approximately study this regrowth XX the data of placebo-controlled study dose The with will trial This for trial of half concentrations on Oral safety, in recruiting

program. pXX/MKX Finally, regarding inhibitor our

Brett? I FDA in will Drug New on for X-X-X Brett submission With Chief Investigational that's that, provide to or activities. Officer, over will Fair, ATI-XXX, call mid-XXXX. to IND, an now the track our on the turn update for Commercial Our application, our is commercial who

Brett Fair

Stu, opportunity. exciting to you, evening, good on an I RHOFADE speak update everyone. And ESKATA. I'll Thank begin will then the and on

new originally recently accounts robust, Regarding beginning new have accounts We in in process continue both July, are the over can a practice Steps plastic establishing points include account determining week. month. every productivity and is integration then ESKATA, and when in will spa with training. components integration for is integration they many for surgery launched had diagnosis, currently the There last successful onboard require we who however, X,XXX multiple longer in-service paradigm, account staff practice scheduling treatment optimize as we and treatment well the as to anticipated. who clinical launching clinical taking ESKATA. and Account in account can perform touch an than each GSK, began adoption the selected application before will a

in the experience. the include patients, and for integration the to how steps ESKATA clinical expectation training to treatment offer Additional process and setting staff

a to materials, We in-service, interest have the DTC, certain Following also interview doctor may efforts, clinical end, product. which PR on of an for ESKATA for marketing programs includes a on help library DTP drive practice recent website, training implemented that patient the website. social the initial our outlets to materials office additional we've accounts and business scheduled patients our to believe and are process, providing as spot directed integration mailings. patient media connecting most will leveraged - our Steps We've To require such best to business treatment. drive outcomes. the page successful assets achieve interest find patients marketing marketing center the downloadable in also onboarding and as the

now product ESKATA. efforts, that a for we accounts of begun reorders have the integrated placing Following base have these successfully and

that has a As making we such, to which progress. sign rate improved is reorder our current XX%, are

about earlier, product the take acquisition. productivity and very to the to mentioned it respect I As opportunity, integrate With account. we does are within excited drive RHOFADE the time the

biggest nearly RHOFADE, from in And XX physicians them had Society, National the treatment estimated Rosacea survey for significant the million cited that public patients caused is like persistent regarding rosacea, XX% reported opportunity As their the as that RHOFADE common or are to of Americans very is by and sign treatment feedback play engagements. self-confidence. affected approximately XX% Rosacea Society product the product a this And rosacea. rosacea avoid the of facial important cancel unmet conducted representing social by most in as an said of contact mentioned, rosacea the redness we a this In believe National of need Neal one positive. a it lowered The will role condition.

driving strengthening our as We are adoption. XX% call heavy product ESKATA able payer and RHOFADE, to did excited as greater it XX% relates between products being unlocking us by in and focus same approximately reaches between to adding for driving derm our for this physician coverage allows another account. to Allergan a our look and on commercial opportunities product Allergan points quickly this both X our activities. In the well-differentiated allowing Frank our our other begin of provide from products. sales the commercial accounts, can launch-readiness unique for the RHOFADE commercial turn leverage by cross-selling integrate brands. financial created with to top-targeted completing the and product who to us infrastructure, I'll RHOFADE, force and activities an better footprint that CFO, our will We've we we into both forward quarter. and call ESKATA. for cross-selling overlap well the potential in lifting opportunities portfolio, bag. This RHOFADE, benefiting leverage in for the of and lot to acquisition overlap our results as We've begun to That over points call and seen now accounts approximately overview for Ruffo, Frank? awareness and closing, believe

Frank Ruffo

Brett. evening, Good Thanks, everyone.

quarter financial please reference found today's can through release. walk third results, our press As in I that XXXX be tables the financial

filed today. quarterly detail, further in report our to MD&A refer For section please also

of which XXXX, For million, $X.X of total $XXX,XXX, revenues XX, revenues were ESKATA contract of ended and the net million. research quarter sales September consisted net $X.X

respectively. of XXXX, consisted other $X.X million, ended were months $X.X quarter revenues which X the and million September of months September million, of $X.X of million, ESKATA ended revenues XX, and net For XXXX, total X Cost sales contract net the $X.X for $X revenue research $X the of million revenues were XX, and million.

During XX, research total of revenue in the was which $XXX,XXX, consisted entirely revenue quarter of XXXX, and ended X September our revenues. contract with $XXX,XXX net months cost

gross-to-net realization For XX%. our product our about was date, to sales ESKATA

currently offices. ESKATA cost distribution discount gross-to-net to fees the Our and necessary deliver HCPs into administrative includes of

XX%. sales realized net gross includes ESKATA. sold this goods Our of so about a sales of far Cost profit on on X% made year royalty was

XXXX, stock-based total $XX.X compensation, first $XX X in to compared months the million expenses $XX.X of During periods million million to quarters the our operating $XX.X of included noncash, same period These cash, X million increased and respectively. for XXXX.

personnel-related due expenses XXXX, of $XX.X $X.X was to stock-based for compared a million million R&D a These legal, increase total $X respectively. $X decrease of to affairs noncash $X.X This professional, $X.X the support million in the increased to General XXXX $X and development quarter QX million XXXX. to discovery quarter expenses, in QX our million a increase marketing and million $XX.X marketing for $X.X inhibitor of $X.X This expenses were million million $X.X same XXXX was of expenses million increase by our our facility personnel-related and mainly a in of million and million million a increases a program. related in compared JAK expenses. year. direct marketing increase our $X.X programs, to in services to launch $X.X XXXX expenses. $X and million increase increased was increase for ESKATA XXXX, million quarter-on-quarter operating $XX QX to and Selling included related professional a in other compensation, realized XXXX. sales of expenses development in increased compared $X.X our third the result increase mainly million in to drug increased $X.X in XXXX 'XX This medical ongoing in launch QX following development of which million wart expenses result offset the the ESKATA. change for to million million of increase $X During May and increase ESKATA, and administrative in to prior increase in programs $XX.X expenses the million a a and QX and

$XX.X net compared for XXXX. loss to million Our million XXXX, our the the in million for months first of loss of $XX.X compared third months while for was quarter XXXX the was $XX.X the net third $XX.X to of quarter X XXXX X first million

to Also loans. million. remaining on $XX months benefited of the will our cash in $XX draw $XX for the as on a XX, The charges Our closing changes this capital. XX, X in available and Security ending $XX.X in XXXX. $X.X $XX follow-on become million XXXX. up from provides on The this Loan operating we we Agreement Loan closed October Of beginning cash year, and the in provided million $XX.X approximately from into burn RHOFADE for March XXXX the entered we was we of noncash October million borrowed October first In Oxford offering working for and incurred date Finance. on for million term with million, million in Agreement million acquisition the year, $XXX

Additionally, when to making $XX close. a later expected we quarter anticipate to acquisition million this is upfront payment RHOFADE the Allergan

transactions the following As of and had our activities. this We to effect million. into additional new XXXX, of offering initial October and or anticipate of the loan $XXX operations business financing to along without investments with be we our Oxford sufficient XXXX half cash with fund approximately second any September facility XX, the of giving the proceeds will development drawdown in from potential capital,

guidance from guidance stock-based year million of full compared our year be for We've to to to GAAP We financial to given $XX March initial expect $XX expenses outlook year. range to the R&D $XX guidance our including million original range XXXX the our in million, and in of we million, GAAP to of our of million. expenses, to million. and million $XX to year general $XX the our sales estimated of updated million $XX original stock-based to full $XX of our $X this our Turning compared XXXX million administrative expense estimates XXXX. and compensation now compared And including which of full in marketing million original guidance be SG&A to our of items, compensation line million, combine $X $XX $XX expect

had common million we XXXX, XX stock XX, September of roughly shares of As outstanding.

our about stock our new count share common at XX in Following million offering stands October, shares.

our equity XX million shares. no XXXX, that, of million average material And average Assuming issuances quarter outstanding remarks. XXXX over would be full be fourth additional outstanding for weighted year in to closing some With that call to XX turn our we back shares shares expect Neal to I'll about about the shares. weighted

Neal Walker

busy has Thank us. for you, Frank. year This been

We we group fact peer pretty the are and companies. our - we fit that a feel cool unique are versus

RHOFADE now We in once close have acquisition. the X products the we commercial bag

We XXXX. due asset that's have common a Phase in read in III warts to out

Phase studies multiple with MKX of have studies, JAKX back our We XXXX, mid also be stage coming and interview to in come in part inhibitors. both also that XXXX. open-label an and early focus will readout due inhibitor will II ITK randomized pipeline and There next-gen into and the

drug discovery questions. forward And as you as a will poll that you continues us. very will can and tell, We to for productive XXXX a can progress. please busy be you we Mark, to look year, catalyst be for updating our to also have engine

Operator

the of And line Fitzgerald. comes from [Operator first Cantor Louise of Chen our question Instructions]

is now Your open. line

Louise Chen

Hi, I thanks here. for taking few my had questions.

program. first space to your question recently. in I a be more companies There been JAK the have they've the noise and So seems couple of involved on was making

your a Obviously, think are secondly, others spend as move from distinguishes how you've on just about And this as as then into curious noted XXXX? program lot catalysts to there the So, what X as we commercial products. out of well street? that we should

pick If about on think could we about should how be progression numbers, sales the And you give So as may should that? those think and here qualitative ESKATA is then the well. up? RHOFADE, just of as curious helpful just things question be can't how products we last

Neal Walker

Thanks. Hi, Louise. It's Neal.

and I'll to I'll and back question. Frank, the hand RHOFADE circle ESKATA take the JAK and program on I'll the off spin So question

beginning JAK severity way the a maintain the our the or spectrum entirety, and both that and consistent fact phenotypic extending related as its approach all to the AT. approach been market on body. patchy phenotype, program, very to the to the is most of from given hair from we've in the way lost a So disease is we all that and which on Those The develop oral topical programs. who way to severe their had to scalpel AU best there's

are context we think the an to the We the where have developing one within company to implemented really I that in general. that our is the studies aspect to that And things both. And define David we we only Gordon, when think of can that's was CMO, start treatment joined extension I about of us all paradigm. dermatology these think something

If the to it's you at by treatment. induction any characterized look an indication,

remission to but you remission drive you have maintain over time. try that then So to

So we in way. following the landscape view the that

disorder, out have If topical. more to to you're you a fact gate. skew to of more disease the that's then patchy topical But demography a treating want that a this about treat once disease, in to you severe young. transition important patient, be the think may maintenance limited get certainly, disease here, you a when And use you you and to if they the want tends with of In maybe might oral want resolution contrast, fashion medication. an or

because always We've JAKX occurs And want limit have really do we in but maintained is only to key a approach we certainly, here. So think the JAK you of X/X the our that also that target the space. molecule. with target. not differentiates And tox that baggage competition the us

those the So things I are that I would highlight. think X

lot we the question, and spend we as the cognizant this off mind always Frank. of mentioned, here. allocate I we hand Regarding capital, are I'll a But have how to to

of we a came guided can lot remarks within low I very We range. lower to in than Frank opening assets of valuable you in the think the actually pipeline. And his development end see, that have as the already already

all. landscape manage side the And off both see as so comments. of on be able with hand it on spend some we I'll commercial side Frank we've the to the and And been that, may to for our R&D further

Frank Ruffo

Yes, we Neal. burn, got think to as course, about think qualitatively, have manage if not the as Louise, as for we trial we that forward. we will continue well to But the Phase had trial. Not wart bore guided will XXXX, entered in running QX, R&D for move really we it bore, fourth wart Thanks, yet. full so the you XXXX of be we'll quarter. about be spun and in only - III up the full

The other will well. and rolling trials as be JAK X

out data So the $XX as we we for next of Confluence be some think in St. towards guided math that's kind R&D rolling the preclinical expect forward next for coming number to good year be work our going of of of the year. early And probably know those the year, into middle down revenues at lot coming to the that - and in and be the QX. the range part full you do can off the I also but that's I work a we'll year. million of Louis, mid-part year, will we'll be a of - the some

goes when of some up wrap year. these kind away middle So burn the that the in of trials part sort that replaced next probably of of

the that's R&D think side. on I So -

as the On and RHOFADE. on of truly look marketing and like to not the manage sales side, will, we'll launch we forward, you expenses, relaunch, if and - going ESKATA to we're

so at be and positive that signals we'll invest trajectory all looking for And there. and to continuing looking growth

current probably be changes minimal think burn And at side, we'll the a year. there's the I there. think, would rate I at on would that then many looking next So I say, I G&A be, don't think

Louise Chen

you. thank Okay,

Operator

line Butt of Adnan from comes Guggenheim question Securities. next of our And the

Your line is now open.

Adnan Butt

the for question. thanks Hey, taking

me well. as from couple a Just

a did I patients eyebrow enrolled growth - a you a seeing? about be Could in seems go extension the in-depth is And past, secondarily, should program. we it. into with bit on that then that? more could change alopecia the more and in detail you you versus you've I then the update later on missed there doctor initial First it, many year? expect mention, that launched think if described traditional you're hair how finally, the the And progressing? the of to experience mentioned Or phase? you growth, That's maybe ESKATA little phases experience sorry, the ESKATA, this in So

Neal Walker

So, hi, Adnan. Thanks for the question.

on bit front, a to and So talk start extension David the the alopecia piece. handoff about that, maybe to little with I'll

of the did have just a give in-depth eyebrow as thus on was open-label there open-label the things. previously of before One, a couple little more study - will front, was to guided, of That we one was the viable. we presenting noted color the we thesis a analysis be approach out we growth. study, behind a But that gate, is on far, seen bit of wanted show we year-end. hair doing we've So topical absolutely that to an

antidotally already we've or of fact, out various offices. TOFA ruxo a number using inhibitors at derm JAK patients In compounded seen

ones So is only viable. think to show we're I not the the that topical approach

pretty that. convinced we're with So

is That's more Now the those the that things noted quicker disease that of seen call. one something we've the with of a study in we gate. open-label on and bit little out last to mentioned respond and severe robustly less our tend

which we've hair a with of bit disease. X is the other disease, has in And predict who are patient if slower at will X the so patchy the look we continuing more more patients to what And out the little on showing So shown we is nice responding X growth. be with what severe X far. based that seen those X have eyebrow quite happen hair the growth, on study, patients

with is position think, maintenance product for this, those to therapy. with disease, disease severe the of transitioning which this out we or I how severe patchy with less conforms So patients disease gate,

those So Columbia drive by had disease, but only home. not If like the that's defined I'd the all duration. by at look phenotypes patients quite also study, severe just we a point to

I subset? view severe and characterized couple X And ongoing onto so regimen that. hair is like extension I does long have But to disease think can as of evidence we that of comments the or importantly, that help it's XX defining well there. to of add you're value topical therapeutic David, take for And there. continuing study regrowth you we've oral once out a if what XX, really them years we're conducting more on perhaps the the patients a in are recalcitrant one the qualified X start nice more And think that off patient. define, a of maybe and seen And treatment extension, that of roll number how patients we'll get study on the looks you our of one, more

David Gordon

Yes.

in ones patients been I about, just about patients the the eyebrow the around XXX X patients. are study, we've that second of the But with X the more relevant We've months the got X of the got study XX study. in in We've here talking Columbia months gone expansion that studies the study. Australian patchy that second X got into who've patients AA-XXX, we think patients study. So

months. year. and months first of the So the completed this just the second The actually then X X oral towards started end June study of

topical that of which onto to just year, first So received has you hopefully through actually can the signing the off do the was the on the But who maintenance XXXX. induction in of we're the no said, topical first drug first got completing months next to drug at the so one oral just stage regimen that and look patients with exactly take have study efficacy part patient starts in we of ready that transfer at X that. good what

Neal Walker

to that's I a unique going dataset. very be think And

as about think study. be quantify we're prepared the just don't during only think are we responses going that we're oral it And I to - and of enrolled our period ones X the able to over on but quarters who those I qualify time. remarks, mentioned

a the - that's location good would about body. Xx the is bad. number lesions of And Xx, So lot ESKATA topical as moment. at we'll clearing finding that we the doc meeting on understand of believed the the it's and the And we're experience. we're to gate we Relative patients the Xx. the this question correctly, we X be shortly in to results I lesions what after that's have I about nicely. and going we to And and treating based on change along X think thought coming moving think be be out they your that kind I quite quicker, was Xx envision If of

flywheel, a of to they results pause lags. we're the their And to into we I mentioned want rate. think time, getting just the just initial physicians reaction think feel in from that. their months of to really reorder and the up of couple sometimes which until mentioned more we're who've about And between docs one these putting And brisker go bit but nice local just of reorder of it's reinforcing accelerating we can take that a course, handing then does I getting really response establish that Brett obviously, of last it that, can a off some product, cause good to the That biggest get pretty little and centers that XX%. staff. seen that's it and towards we have take peer-to-peer And retrained and call, to we right community. just terms improve this that, we in our excellence up docs the starting our it rate some robust where of period and may message kind the trial of drive time amongst start to little bit in got that that their start

We it's So more time. going just we optimistic. remain take think to

Adnan Butt

great. Okay, Thanks.

Operator

And of the Jefferies. our question next from line comes Steinberg David of

is now open. Your line

David Steinberg

range Back script it's couple to to Okay, shows recent X,XXX most without thank of a IMS the got I've promotion. RHOFADE, the questions. X,XXX-week you. in kind of

do ESKATA. for think And you Allergan Are how color that sales happy year RHOFADE up you what time? so when not late think on you around last this around patients it's - to this the on kind would of weekly maybe any X,XXX helpful? but Curious, the know October with second of much And field you in? - are to period I then started Allergan how and the sort that pulling month DTC I be get any you X, seized data, Brett, any program can from revolves is do there's program? over finding quantification last perhaps, just think you quickly from the question scripts generate DTC promoting can for range. of sales? what you And peak stopped in my

Neal Walker

Sure. Thanks, David.

Brett first So answer for this and more the X is I'll hand Neal. to some off it color.

We the with, consistent what peak their with been the of back there in way the year And million is gross sales, on think, actually basis is we've talking neighborhood what number hands. I we consistent a in higher on product were Allergan's $XXX So that when. about that and was had thought. million to $XXX

against January. In we've terms over the in sales of active the a course, haven't weekly script count decrease count, time the of force they that since seen as script had

the objective the Our weeks, deal, get to close of we relatively is hopefully going the next we think detailing and the be stabilize field, back into out couple that's in scripts, the quick. will once reps we

We as around have arms progress to through get the that our we year.

in for goal end same around year year the at force the sales the script as exit next of number is Our they getting the they when December. the to had number exited XX,XXX-plus

we're conservative goal, Brett, said we moment. but at color? And maybe, that's more can what relatively thinking think I give So some you the

Brett Fair

have with Yes, point, had reps, ESKATA. it They we Yes. Neal's we've Thanks, selling XX to we're integrated XX. Neal. in,

this where right. So seems just the year they of back I getting think left about end at off to

I think it's for a us. good goal

the DTC a in In But there's website obviously, seeing doing then sign. course to And over seen DTC. ESKATA a the early the lag spike grow the the month in it's in impact good very spike in of with big results of of it's continue metric, the big so seen initiated of October, in, we've of that's October, spike a terms terms view. so October, traffic a we've big

They over monitoring website time the in get postings. little we're and there. get week. - takes We're to in terms initiatives like result increase terms also seeing But the a going account, got for significant media But seeing a what a lag get it in, are the schedule a Our product, the in things good. results PR appointment, introduced getting time. in And of seeing that's is traction. of we're impressions bit media treated, of impressions there's traffic week

David Steinberg

And quick follow-up. just a

on of risk the RHOFADE ESKATA plus view? in are run off the a ESKATA you interested have sort a do that paddle think With metal and guess of aren't point now of in impact RHOFADE, just who effort? actually I would the their sales you ESKATA. as taking force with Or number from doctors net see who prescribed you taking the of there it What

Neal Walker

Yes.

I'll is to then hand off Neal, this So Brett.

a a within a through when there's like X well-recognized did end it's commercializing effect Allergan of opinion, I because, the our think RHOFADE have bag, the products great especially think, I and a in halo brand net of plus you XXXX. that job

macro think that it's same I has way, of like individual a the this individual offices. a number the effect days will and if and docs positive so about you And it have office, not think docs these general - environment in their

it selling gives office goes and synergy a and physician, the them let's bit call then of ESKATA. RHOFADE out little tremendous gate, somebody ESKATA we and the say to amount the So back mentioned on if might another a you'll in, in that to of resistant be rep go get reason

it's think net we So a positive.

seeing we're think that across I the board.

in a lot bag, If products model. really of multiple peer the new the have our that look group you companies that's

think I product. that's than go better to the one way

Brett Fair

next would build that, Neal too. of And take the to on we're If said, for I a ESKATA. Centers with year approach going Excellence strategic

I them and our the think for and pretty ESKATA. is call we accounts, get for to specific Allergan as call points RHOFADE pretty around opportunity have a real significant this points a and tight those And Neal overlap said, established. get in

in derms. in real get those benefit nice halo You accounts a

of we'll be full So definitely taking advantage that.

Operator

Lugo of question comes Tim line next of [Operator the from William Instructions] Our Blair.

open. now line Your is

Timothy Lugo

for question. Thanks the

on you the topical out X I some For the last of eyebrow quarter, patients study, XX thought mentioned preliminarily regrowth. had

patients. kind differential but in may that? on into What's evidence of also you Or quarter-over-quarter? the had think occurring? some sounds of I patient in And sort there in relapse of be like past cited go with are microblading there's the some that continuing trial, is there's recruitment X X quarters issues Australia? you can it Now guess, only regrowth I

Neal Walker

- those nonresponse. X terminated X because had normal of for the reasons. visits early there X back patients those terminate got And so some actually monthly early they are of We've of study. were of logistical Yes. coming because - X just kind had tired of just just terminations, for we've

what over totally just time and that's like we've seen not that's this. longer-term So a in study unusual

Timothy Lugo

you what signals - - how making concerned? have this should making this be And extrapolating II? for this guess, suggesting? this are current you I Or is Is this is - - you is Phase your I randomized mean, this you

Brett Fair

study. would the growing sign in that see through we regrowth patients study, and So as is earlier I patient to disease, patchy mentioned nice I severe what that severe quite the a We've believe a eyebrow slower with call, a in X patchy in good a good in in of we had read patient clearly versus hair eyebrow disease. the seen expect mentioned, very as more phenotype severe the less regrowth in to disease

positive X who hairy eyebrow study are regrowth. So have X out of the in patients the with on responded continuing

thesis. topical feel out like I So that's proved with

and we can population is is more we my quicker and those grow scalp. confident fact the to so in patient what related no that less severe study their from that pretty and in be And the that see with hair in on read perspective robustly should through strictly that we may disease patchy the about

us makes So may study feel open-label that aggregated in study. the from the my perspective, we about see we what data confident from

to forward those So reporting XXXX. results look we in

Timothy Lugo

entering patchy Understood. waning patchy physicians heard from study? for and that patients? for time period the it's significant of And the patchy a for where of I patients, they Okay. these kind Or disorder waxing some

Brett Fair

as everybody XX, variables, has the in But go not data of set, hair you or XX% I that's defining duration just not. that's it's not intuitive over measured another have all a kind who it's phenotypic likely think And also spectrum the there number severe some patients that say, XX%. look That's data you more somebody our kind might if the but or respond disease by we're think of less disease whether only of And be factor X things of that It's question, time. set only years that of versus to the competitors with just kind at, responder. good if Tim, duration. out is those disease. But for, somebody have a other I whether variable. the so loss let's are chosen they're to And of of

years or less. X XX So or

Timothy Lugo

you maybe Okay. Understood. product it the need you to be you channel? quarter And is switching how about first the much RHOFADE to the Will maybe And Or got inventory restocking? channel in QX over the and book revenues? can work relaunch. you some talk require through? Would

Neal Walker

I'll hand that off to Frank.

Frank Ruffo

Yes.

on we'll revenues close depending Tim, RHOFADE So we on recognize in transaction. the when QX,

a more least I in full the have they wholesale diligence quarter QX believe time, this at for we'll the there don't due channel. the So channel, in as in and on it at based relates our channel typical have any to that's out

channel don't So have in at product time. increased the not this they necessarily

at that So kind anything look inventories. we another take than we typical providing expect different we'll channel were of adjust close, don't accordingly, and we when but

Timothy Lugo

based will volumes? revenue on And inventory? to subscriber shipment on end recognizing you on based Based distributors be or Okay.

Neal Walker

allowances. discounts applicable It based will on they and to be unless distributors are shipments to

Timothy Lugo

Alright, thank all questions. you. Thanks for the

Operator

turn call Neal to closing to and for President showing like I'm time. And remarks. further back I Walker, the questions at would CEO this not now any

Neal Walker

Thank updating you the in we for joining forward us on number catalysts night. call everybody of XXXX. to and Have our you today on look a good

Operator

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

Aclaris Therapeutics (ACRS) 11 Nov 182018 Q3 Earnings call transcript