Okay, good morning, everybody. Thank you for joining us for Tuesday, the first session of our Goldman Sachs Healthcare conference. My name is Chris Shibutani, member of the research team here. We're very pleased to present Revance, and here to join us today, CEO, Mark Foley. Thanks, Chris. Good to see you, Mark. Good to see you, too. Thank you for joining us. An adventure. I actually love this market. Right The aesthetic side of it. There's durability, there's an undeniable aspect to the market that just seems to be very viscerally about humanity. Right. You know? It'll just never go away. So as much as that is such a ripe opportunity, there's challenges. Just like any attractive opportunity, you know, there's gonna be competition, there's gonna be tactics, et cetera. You have really been the leadership of this company through quite a journey, and the last 12 months have included quite a few changes. So here we sit, June of 2024, not quite anniversarying the changes that you announced in September, roughly a year and a half after kind of the initial launch. Give us a sense for where we're at, what we can look forward to, in particular, for the balance of the year, and how you're feeling. Sure. So I mean, I think we'll obviously talk a little bit more about it as we go forward in today's fireside chat. But, you know, the big thing for us right now is making sure that we get DAXXIFY rolled out successfully. You know, we went to market with a very thoughtful strategy around pricing and positioning based on the clinical trial data. We listened to the market, we adjusted our pricing, we've adjusted our messaging, and so, you know, 2024 is all about making sure that we execute well. And we're off to a great start. If you look at our Q1 performance, we were up 107% on a unit basis, year over year. Obviously, with lower revenue, we need to sell more units in order to drive the top line. So it's really getting DAXXIFY embedded in the market, and we're laying the right foundation, we believe, for really good long-term success. On top of that, it's continuing to drive deeper penetration with our RHA filler line. We believe it's the best filler line in the market. You know, we grew our share by about 0.7% in Q1, up to almost 10% share. And so we think that those two pair really well together as we go deeper. We're also only in 7,500 accounts out of the total available market of around 40,000, of which 30,000 are a lot more dedicated accounts. So we also have a ways to go in terms of account activation and penetration. That's on the aesthetic side. We recently got our first approval in therapeutics in cervical dystonia. Mm-hmm And so we're laying the groundwork for not just cervical dystonia, but our whole therapeutics franchise, which we're really excited about. And then, you know, we also expect approval for our products in China through our partner, Fosun. And so we believe this year will also. Mm To start to kick off our international expansion. So we have a lot of things going on. You know, it's a small company, but between standing up manufacturing, getting our first approval internationally, launching therapeutics, we have a lot going on, but we think we're kind of at the doorstep now of starting to realize some of these opportunities. Okay. No, that makes a lot of sense. I'll go back to my just, admiration- Right -F or the attractiveness of the market in general. Yeah. But give us your perspective, not necessarily Revance-specific, but just in general, the tone of the aesthetics market. And I ask this partly because as a long-struggling analyst. Right We have such indirect metrics. Right. We're doing things like Google searches and listening to what luxury brands are saying, or how much people are spending on their credit cards for this type of experience versus product. So, and you've been in the business for quite a while. Yeah. Give me a sense for the health of the market and what you think the outlook is going forward? Yeah, well, I mean, I think you got to look at it two ways. One is kind of the near term, the quarter-to-quarter basis, then you have to look at it sort of bigger picture. Mm. And, and let me start at the bigger picture. I think the trends in aesthetics remain very attractive and encouraging. I think that, you know, as people live longer, everybody's trying to retain the best version of themselves. And, you know, they look in the mirror every day or on Zoom, and they, they, you know, sort of recognize and identify things that they'd like to, to, you know, enhance. And I think people also want minimally invasive. They don't want invasive procedures. And so if you look at where we are in the U.S. in terms of overall penetration in the facial injectable market, we're still very under-penetrated compared to many other developed markets, and so we think that we'll continue to see good, healthy growth over time. There might be some pockets and ups and downs. And, and we'll see it across all continuums. We'll see younger people engaging earlier, and we'll see older people that maybe didn't think about doing aesthetic procedures, looking at it. But people want natural. They don't want to look done. Mm-hmm. I think that's at the macro side. We feel like we're, you know, gonna be able to carve out a really healthy portion in the market and also benefit from the tailwinds. In terms of sort of the here and now and where we are, I do think we're seeing a little bit more of a push on the filler side to more natural look. Mm-hmm. People don't want to be overfilled. I do see some economic sensitivity, more on the filler side and less on the toxin side. And why is it? I think it's that fillers can you can elongate your treatments longer, right? Mm-hmm. They last, you know, 1 year to 18 months, depending on the location and the facial movement, and it's a little less obvious and visible when you lose maybe a little volume in your cheeks. Mm Versus when your wrinkles return. Mm-hmm. Toxins, on the other hand, tend to be sort of maintenance products for many people. It's kind of like hair color. Once your wrinkles come back, if you're used to not having wrinkles, the cost and sort of that, that familiarity with that drives that. So I think, you know, in the near term, there will continue to be some economic sensitivities and impacts, although we're encouraged by what we're seeing in Q2. We saw some filler softness in Q1, but we like the trends that we're seeing in Q2, and we would expect we'll see, you know, good normal growth through the balance of the year. But I think that we'll see some ebbs and flows in that market. Then the actual commercial and consumer landscape is unique. Right. I, my colleagues in the audience know that I often love to refer to this as a B2B2C business. Sure. You taught me that, actually. Thank you. And so from that standpoint, being an entrant and a participant, and being one that is not at the same size and scale as sort of the main competitors, gives you an opportunity to be strategic and tactical, which with DAXXIFY is definitely something that has always been in the playbook of your company. Originally, it was very much focused on this whole notion of kind of the prestige client, and the logic of that makes a lot of sense. The actual execution of that, however, has been more complicated. How much is that logic of figuring out where your positioning, your white space is, regardless of whether or not the pricing strategy, how core is that to where you, as a smaller, potentially more nimble organization, are taking to the field this year? Yeah, well, I mean, as you pointed out, I mean, everybody needs to figure out how you compete, particularly in a mature and competitive marketplace. Mm-hmm. You can compete on price, you compete on service. We've chosen to compete on innovation. We believe that with the RHA line of fillers, we have the latest innovation in HA technology. It's the least modified of the HA- Mm-hmm -Brands, therefore, it moves more naturally, and we think it fits really well into this people wanting to look as natural as possible. Same on Daxi, right? It wasn't sort of a... We didn't decide, "Hey, let's just make a toxin that we can come into the market." We said, "How do we innovate?" And, you know, the history of the company is well known in terms of the peptide formulation being the differentiator. So when you have sort of innovative brands, you look at sort of your segmentation, and you said, "We want people to do business with us because they love the products and what they can get from those products." And so we, we coined it sort of the prestige strategy, as we're looking for those accounts that wanted to lean in and get something more or get something different than what they have. I think Daxi gets a lot of focus today as sort of the overhang right now, but if you wind the clock back, we came to market initially with the RHA filler line. Mm-hmm. We didn't have a toxin. Mm-hmm. We came with this innovative brand, and we did a pretty good job of methodically adding 500 or so accounts a quarter, you know, delivering results in line with kind of Wall Street expectations and laying that overall foundation. We priced the RHA filler line competitively in the market, though, because we realized that as a new brand, it was gonna be hard to come in and ask people to pay a premium with that product line. Yet, we were able to take share, and so what we saw is we took share across all different categories. We took some from the med spas, we took some from plastic surgeons, we took some from dermatology. So we really allowed a self-selection bias. Who was interested in bringing in a new product line that gave them something else? There's two key components to, you know, adoption. It's o ne, it's the products. Did they feel comfortable using them? Mm-hmm. And two, how do you integrate them into practice? Because if they're used to a certain kind of rhythm, when you introduce something new and that requires an education to the patient or something else, that can be disruptive, and so we, we had to look at both. And so with where we are right now, we, we believe that on the prestige side, we're gonna continue to lean in heavy with the premium products per se, in terms of products that give you something perhaps that you can't get from your other product line. But we'll be agnostic in terms of who's willing to lean in with us. And now with the new pricing of DAXXIFY, we think that that's a message that can resonate with any practice. And again, we've seen adoption across. So in the past, we've talked about targeting maybe the top third of accounts. Mm-hmm Driving a little more than 50%. I think now, given the pricing change, that we, we can compete effectively in all those. So we're still... We have a long ways to go in terms of account activation. So talk to me concretely, just to educate us, in terms of with the pricing strategy change that took place last September, what is the pitch and the clincher of that pitch since you were walking in, say, a year ago in June, where we had the original launch strategy versus what we have right now? These injectors, they're business people. Sure Right? And so what becomes, you know, the closer to help them come across the line? Yeah. And so to contextualize it, we really leaned in heavy with duration when we went out to the marketplace. We had heard from both consumers and injectors that it's the number one unmet need. Our clinical data was very clear in terms of a longer duration profile, and we put out there the median duration of 6 months, which we had for with all our lines. We got a lot of pushback because we coupled that messaging with a premium price, and as you mentioned, it's a B2B2C, so we took a slight premium, and then the accounts marked it up 1.5-2 times, and that created a mismatch between expectations on the consumer side and sort of what they thought they were getting from the value perspective. So based on the feedback, when we went into the market, we've made a few changes. One is we've brought pricing now down in line with other toxins. Number two is we've adjusted our messaging from primarily just duration to, you know, the, you know, fast, lasts, and the look, meaning it kicks in quickly, you get good duration, and we're hearing a lot more about the skin quality or this, you know, sort of this look that they're getting with DAXXIFY, which we, we think is related to the peptide. And so those two together, we're able to now go into practices to say: "You can now offer your patients the benefits of DAXXIFY, the fast, last, and the look, all at a price that's competitive with your other neurotoxins. So you're able to give them more value for roughly the same price. Going to on par. Right As opposed to reducing the premium, because there are different people who sort of get paid along the way here. Sure. When you went down to par. Right What is the community of clinicians doing with the product as far as when they're... Are they still out there trying to promote it as a premium product with a relatively higher price point to the consumer? Yeah, it's gonna be a range, for sure. And since it's a B2B2C, we only control the price- Sure -That we can charge the practice, and so we see a range. We do see, a nd listen, we have some accounts that even with the premium price and the premium that they charge to the patients, they were happy. It was working for them. I think they set expectations, they did before and after pictures and they made that work. So they're staying with that premium. Some will take a modest premium. It's like, "Hey, my acquisition cost is a little more, it's a little less, so I want to at least recoup that, maybe a little bit more," but they've really moderated that expectation, or that price point. And then we have some that price it in line. So we do see a range on that side of it. Let's talk about accounts. You gave sort of like a broad denominator. Right The number that you're interfacing with, that you signaled that as being the case where you're doing business with them. Right. In some cases, you have the HA accounts. Right. Talk a little bit about how penetrated you are and where you think you can be, perhaps by the end of this year. Again, I'm looking for those. Yeah. I'm struggling for these indirect metrics for, you know, what the print is gonna look like each quarter. Sure. Yeah, we said last quarter that we were in 7,500 accounts, and those are accounts that we had had a relationship with that had ordered from us across our product line. Mm-hmm. That we have 3,500 accounts that are DAXXIFY. So within that subset of 7,500, 3,500 have ordered DAXXIFY. In some cases, they're gonna be accounts that were already RHA customers, and in some cases, they were, they were new accounts on that side of it. So we're, we're still very early on in activating accounts that we believe, you know, certainly can be toxin users for us. If you look at kind of if you back into sort of the math, you know, we need to probably exit the year at about a 6% or so share, 5%-6% share, in order to get to the revenue numbers that we need to support our guidance side of it. So we figured we ended last year at about a 3% share of the overall market. I know that's not completely aligned with practices because we're not gonna get 100% of every practice side of it. Mm-hmm. But you can kinda look at, you know, reasonable assumptions around what do you do new. And we've talked in the past also about two-thirds of our revenue coming from existing accounts. Mm-hmm Meaning reordering accounts. Mm-hmm. And the remainder coming from new. I think that that will stay roughly in line for now, although reordering accounts will start to become a greater and greater percentage as we open up more accounts and then, and they reorder as well. So we continue to like the balance. The first two quarters of our, you know, call it a relaunch, we're very targeted to existing accounts that had already purchased, that we felt we needed to double back on. And now that we're kind of moving beyond that, we're out, you know, looking to activate more accounts. When we think about the accounts, there's often this notion that amongst, for instance, let's talk about the neurotoxin, that there's several products that are out there, that they are perhaps arguably more similar than they are different. There's some nuanced aspects of differentiation. Some of it is perceived, some of it is documented, et cetera, but it's a very still subjective kind of market. And if I'm a practitioner, and I'm thinking about sort of what is in my cupboard, what's in my, you know, toolkit here, what are you seeing, particularly since, you know, I think arguably, Botox was historically the foundational, dominant market share. You have additional products that have also been around there for decades, like Dysport, in different corporate hands over time. DAXXIFY comes along, so are you finding that there's room for, you know, i s this a string quartet that you always have. Right To have four products? Is this, you know, kind of there's only two seats in the back or? Just give me a sense for what the willingness is to carry product of such variation, and what's practical. Yeah, well, normally in accounts, they will certainly carry more than one and often more than two. And so then the question becomes, if you're a practice and you're gonna pick two to three toxins, why would you carry the different toxins? Right. This is where being different, I think, really helps us because I would argue that some clinicians view many of the others as sort of interchangeable, and yet we offer sort of a different performance profile, and therefore, it gives them something else that they can offer patients that are looking for what is new. "Do you have anything that, you know, can last longer?" You know, if they've heard about skin quality or that kicks in quicker. And so we actually think there's a pretty good appetite for us, and, you know, when we've built our models over time, we don't need to come into every account and be the dominant share player. We can occupy a decent spot in their practice and still build a really great business. The other thing that's interesting from a practical standpoint is, you know, we're one of the few that doesn't need to be refrigerated. Mm-hmm. The challenge with many of the other toxins is, you know, they have to be stored within a refrigerator, which limits sort of the amount of inventory that they can carry and what they can do. Ours can be put on the shelf, which also helps, particularly in smaller practice footprints. Got it. Talk a little bit about the engagement with the purchasing clinicians. There's a lot that threads in loyalty programs. Sure Et cetera. "I'm a team X guy," or, "I'm a loyal whatever." Talk about your capacity to do that, coming from a smaller starting base as an organization to begin with. Yeah, well, listen, we do think that that's very important. We obviously started initially down the path of the, you know, OPUL platform as a way to kind of come into sort of a practice services offering that could link into loyalty, and that just became a bigger hill to climb for us. And so with the change in the DAXXIFY strategy, the first thing that we need to do is get sort of the practices comfortable with the product- Mm-hmm before we start to drive a lot of the consumer, because today, if we activate a lot of consumers but don't have a lot of injectors, then. Mm-hmm You know, we're not being very efficient with those dollars. So we've looked at putting many of our dollars at those practices where we have our business, and many of them communicate that they, you know... For loyalty programs, their preference would be that that patient is linked to the practice, not linked to the brand. Mm-hmm. Because many of the other brand programs provide discounts or offerings that a consumer can use anywhere. And so as we move into the back half of the year, you know, we will start to activate some loyalty programs that will be tied to the practices. We'll do some co-op, but we felt it was important that as we kind of went through this kind of next phase that we worked closely with the practices to get them confident and comfortable with the product first. Mm-hmm. That will be the next phase. Having said that, we've been very active out there with, you know, media. So we've seen our media share of voice increase nicely. That's one of our big KPIs. Brand awareness from a consumer standpoint is also biggie. We've seen that sort of grow as well. Our NPS score is a focus for us this year, and then obviously driving market share. And so we're active in the market with consumer and things to raise the brand visibility and awareness. We've also done some pilots at the practice level with a consumer coupon to just sort of test that. Would that sort of drive more trial on the consumer side? How did the practices like it? And so we've got some core foundational things that we're doing, and then we're piloting and testing a few things. In Q1, we talked about that consumer coupon having the desired effect, but it was a complete revenue offset, so we're looking at- Mm -Other ways where we can do some of the same consumer engagement without having it treated that, that same way. Can you quantify, put some numbers around that coupon? So this is something that a consumer looking to receive DAXXIFY would get a coupon that essentially enables them to put down a credit card that is X dollars less because you guys are covering for that. Quantify a little bit and talk about sort of what the uptake has been and what your plan is for how long this couponing program will go. Yeah, so the coupon was limited to Q1, so the effect of that was netted out in Q1. It was a $75 off point of sale coupon. So when they came in, they could get a treatment for DAXXIFY and right there get a $75 off coupon from the practice that would give them that discount. Expiration at the end of the first quarter, or? Yeah. Yeah, yeah. Okay. Well, it went in through April. Okay But we had fully accrued for it in Q1. Okay. And so there won't be any contra revenue related to that program in Q2. No coupons for graduations. Correct, correct In June. Yeah, yeah, exactly. Okay. Yeah. High volume. But it had the desired effect in those accounts. They said, "Listen," it made sort of that switch discussion much easier. Mm-hmm. There was a huge appetite for people to try it. In many of these practices that we went into that are already bought into DAXXI, their feeling is: The more of my consumers that I get on it, that see how quickly it kicks in, that lasts longer, that see the skin quality. Mm-hmm They believe that's gonna create stickiness longer term. So we, we liked that program. So in the aftermath of that program. Yeah How are you feeling? Like, that was exactly played out that we thought. Yeah Or that didn't get the pickup that we were hoping, we need to tweak, or wow, that was really consi, w here on the spectrum of responsiveness, you know? Yeah, well, so we were very pleased with the uptake and the adoption of the impact. I think that since the goal is to drive repeat treatments over time, not just the, y ou don't wanna just get a consumer who's only gonna try it if there's a coupon associated with it, right? Mm-hmm. We believe it's a better product, and therefore, if they have a good outcome and experience, then they're likely to ask for it. So we'll start to see the pull-through on that as they come for their next treatment in the, you know, 6 month-ish type of timeframe. Mm-hmm. But what we're hearing from the practices is they just said it made that switch much easier, and then for them, it's the more I can get sort of onboarded on this, then it, it lowers the burden later because now they've come in and now they're asking for it versus them having to talk about it. So we will definitely do more consumer activation, consumer awareness initiatives, as we move into the back half of the year. It's just sort of how do we manage them from a revenue deferral, a sales and marketing cost, compared to the other programs that we're doing as well. With the neurotoxin category, there's several players and efforts that are out there to try and create variations on a theme. If you could just comment on what your house thoughts are on a couple of those? One of them is having already prefilled syringe as opposed to something that's lyophilized, and it's a mix-up. Right. Pros and cons, I can imagine there's both arguments, but what's the Revance house view on how competitive that could be? Well, so you're talking about a new product coming into the market that's yet to come in. So this is it's actually a prefilled vial, and then they'll draw it up in a prefilled liquid vial. Since we don't know the final form that might come into the U.S., we can only look internationally, to see sort of how that's gone. And at least internationally, that has not been all that well received. Now, maybe it'll be a different formulation that will come into the U.S. Partly because oftentimes, and we found that even with DAXXIFY, injectors like to reconstitute the product in different ways, depending on the indication, depending on how much diffusion they want. Mm-hmm All these different things that go into it. And so when you have a prefilled vial, the reconstitution and adjusting the diluent becomes a little bit more complicated. Mm-hmm. Number two, it tends to sting quite a bit more, just because, you know, they, the saline that they can use or the way that it's buffered is a little bit different. Mm. But I think we'll just have to wait and see. You know, I think, again, this is a market that is got great growth characteristics behind it. There's an opportunity for everybody to compete, and we think with innovation, drives more consumer desire to experiment with kind of what's new and what's different. What about rapidly acting short duration? Right. Allergan has Bonti. Right I think they call it, as a gateway product. Right. Gateway drug sounds a little more sinister. Yeah But yeah. Thoughts there? Well, listen, I mean, you know, Allergan, of all of the companies, has, you know, probably the greatest, you know, finger on the pulse of the customer and stuff like that. I think we'll see in terms of, you know, is that one of the major impediments to consumers getting a toxin, right? So is it, are you taking existing toxin customers who just need something quick because they didn't get their treatment on time, and they need that? That wouldn't be a market expander. It would just be sort of a new option for existing customers. Or is it to move. What's your guess out of people who've never done it and are kind of on the verge? Is that 1 out of 10 people that you'll pull across the line with that, with that product, or? I don't have any market data on that. I don't know that, you know, at least from market research that we have done, that the reason that consumers don't try toxin is they're worried it's gonna last too long, and they just want to kind of experiment to see what it's gonna be. It seems like they're a little bit more worried about the filler. I mean, I'm sorry, the injection pain. Am I gonna look unnatural? Ah. So maybe it will. And listen, it would be good for the whole industry, right? Mm-hmm. The more people that you can, i t's another option. Sure To maybe open the door for some folks. So I think we'll, we'll see. On the filler side, there's a category of product that kind of references a biostimulatory. Right. We talked about sort of the underlying trend towards a more natural look. Yeah. Talk about that, and particularly from fillers, I know there's much in terms of like viscosity and some variations. Right. But that does seem to be differentiated. Is there something that you see there as either pressuring other filler products? Are you doing any work that would, you know, contemplate expanding the portfolio? I know that's through Teoxane and your partnership. Yeah. So, certainly the biostimulatory fillers have seen some good, nice growth as people look for, you know, kind of the body's ability to regenerate, you know. Mm-hmm To stimulate collagen production and stuff. So I think they'll continue to have a healthy place in the market. Again, I come back to, I think on the filler side, consumers are really looking for natural. That's what they want. Mm-hmm. And so we feel like with the RHA line, we find that, particularly in Europe, that they, they inject the product a little bit more superficially, a little less product. They get the desired result without having to, again, sort of do the overfill look in order to get the lifting that they want. Biostimulatory fillers are great, but, you know, the one downside is they're not reversible, and so I think it'll be a little bit of that balance. Mm With the consumer of, "Am I willing to go all in on this? And what happens if I'm not happy with the result?" Whereas with hyaluronic acid fillers, you can use hyaluronidase to reverse it. But again, I think that the nice thing about this market, as we talked at the beginning, is it's large, it is growing. There's a lot of tailwinds in terms of the different segments that come into it. You know, we recently just got our RHA 3 indication for lips, which is the number one. Mm-hmm Performed procedure. So, you know, there, there's always different areas that are driving new interest in growth. Let's talk about international. Sure As an opportunity. So small company expanding there. Partnership, you know, the tactics there. So, China obviously also one of those land masses that is well recognized to appreciate the aesthetics business. Talk a little bit about the strategy there, including sort of what you think the right entry into market from a pricing standpoint will be, given what you went through in the U.S. Yeah. So I mean, as you noted, China's the number two toxin market in the world, so we're excited to be launching there with a really good partner, Fosun Pharma, who we think, you know, is gonna be able to do a really good job there for us. You know, as we look at international expansion, you know, it, what's interesting is most companies will start internationally, get that experience, and then come to the US- Mm because it tends to be a lower regulatory hurdle. Sure in order to start. Got it. So we're going the other way. So for us, frankly, it's all about getting our supply chain a little bit more mature and getting our cell-based potency assay approved, because many of the markets in Europe, for example. Mm They won't allow animal testing, so you need to have your cell-based potency done, which we've filed with the FDA, and we expect approval later this year. And then the end user markets internationally, in most cases, are a little lower on the price side of it. Mm-hmm. And so having our supply chain a little bit more mature, so from a cost of goods. And so being a manufacturer and not a middleman, we think longer term, that's going to favor us because we will have a COGS that's gonna be a lot lower than a, you know, sort of a distributed product. Mm. But we're in the process of sort of building out that supply chain to get there. Educate me a little bit about the relative price discount you think outside the U.S. I know it's gonna vary by country. Yeah But it would be helpful because we all reference kind of broad Sure Standard defaults with like oncology and cardiovascular. Yeah. What is it in aesthetics? It's probably about half, I would say, in Europe, the end user pricing Okay Compared to the U.S. Mm-hmm. And the extent to which that, that pricing dynamic in China. Right What is that like? Well, in China, there tends to be a good segmentation in sort of the premium, the regular. So a lot of the Uh-huh The Chinese sort of want what is the branded and the latest and the newest. And there you can get some pretty healthy pricing. And so, I don't know off the top of my head, 'cause there's a couple of different, I mean, there's some local Chinese companies that compete there. Okay. There are some other, you know, Asian products that compete in that market. Mm-hmm. They compete in a very different segment. Okay. You know, but we would expect healthier pricing in China than we would in Europe. And then remind me, timelines for approval, China, Europe, and when you're... You're guiding us to think about actual commercial launch from Fosun? Yeah. So, we would expect approval for both glabellar lines and CD, certainly glabellar lines this year, CD later this year or early next year. Mm-hmm. And then it's just a matter of, you know, standing up manufacturing, 'cause we can't manufacture a product until we have that approval. Mm-hmm. And then going through the import. So we'll start to ship product into China next year. Mm-hmm Following the approval of the products. We've not given timelines for the other countries, 'cause it's gonna be supply chain dependent. Okay. But it's, you know, it's not too far out in the future, as we've already have RHA up and running. Mm-hmm. We have our partnership with PCI. That's making nice progress as well. I told myself I wasn't gonna do it. Right But I still nonetheless gave short shrift to therapeutics. Right. How's the launch going? Great. You know, Therapeutics is a very different market. You know, there in cervical dystonia in particular, where we have the indication, about 80% of the cervical dystonia patients have symptom breakthrough before they can be retreated at week 12. And as a result, you know, with that, there's a desire for these folks where when the benefits of the product wear off, that their debilitating symptoms come back. Mm-hmm. And so we launched a preview program there with about 17 KOLs in order to get some experience. What we wanted to see there was, you know, the way that they will onboard a new CD patient. Most of them are gonna be switch patients, so it's not like you have 50% new CD patients coming in every year. Right. It's a fairly steady group Right And you have some new ones coming in. So whenever they use a new product, they're gonna start conservatively with dosing, in the range... worried about side effects. They don't wanna have dysphagia. So what we wanted to see with these KOLs is how, what were they then gonna dose up over time, and what were they seeing in terms of the overall outcome? And so that's why we took a very measured approach, and through that, we were very encouraged to see that even at the first dose, 96% of the injectors, or 94%, felt like it lasted longer, even before they had optimized the dose. And then as they titrated the dose up to get them to optimum therapy, we're seeing a, you know, pretty significant symptom relief in these CD patients, which we think is gonna bode well as we go forward. We also received our J-Code in Q1. We've been very active with, you know, most of the commercial payers. We now are sitting at over almost 80% of commercial lives covered, and so now it's just kind of getting going, getting those CD patients when they're coming in for their next treatment, making sure that with whatever healthcare system that they sit in, that the skids are greased and everything, and that we can pull that through. But, you know, really encouraged with sort of the, you know, the start that it's off to, the, you know, most importantly, the feedback that we're getting from the clinicians and the patients in terms of how the product is working. For a patient who is on treatment at steady state or Right Under control, roughly what is the annualized cost to that patient? Obviously, there's a completely different payer mechanism, but. Yeah What are we talking about in terms of average spend range? Yeah, well, let's see, you know, on the copay side of it, it's probably gonna be, I would say, about $1,000 a year, probably. Mm-hmm. And then in terms of, like, the overall, you know, you as a corporate entity. Right Delivering a product, you know, the, the invoices you're sending out Right Total to what, roughly on an annual basis for a patient for CD? Well, the interesting thing is that with our price adjustment, because there's price linkage between aesthetics and therapeutics. Right. And so our pricing now in therapeutics reflects that. Right. If you look at the dosing for our glabellar line indication, we used 40 units in the glabella. Okay C ompared to, let's say, Botox, which is 20 units in the glabella. Right. So twice as much dose, but the same amount of toxin. Right. When we did our CD studies, we found that, and this is before we sort of had a sense for toxin to toxin, our dosing was 1/2-1/4 Botox. I point that out because from the dosing that the clinicians are using, the dosing is more in the 1-to-1 range. Okay. And so the cost is gonna be roughly half because our vial price is, you know, roughly half the cost of some of the. Correctly, and it's still early. Right. Does that mean that economically, that you're a little bit more of a value compared to the other treatment options? We will be from a payer, and that, I think, has really helped with our payer discussions because they see that there's a significant value opportunity, not only a clinical benefit, but a value opportunity as well. The other thing that's come up a lot is the safety profile of our product. We saw very low muscle weakness and dysesthesia rates. Mm-hmm I n our trial, and this was not just a comparative trial, but published literature with, with other toxins which show... And we were in the low single digits. Mm-hmm. I think it speaks to the fact that we're getting duration with roughly half the amount of toxin. So economic value for the payer. Mm-hmm A nd the patient because their copay is gonna be less. Mm-hmm. you know, longer duration, and then, a very favorable safety profile. And then remind me of the CD patients, what is their health insurance mix? What portion is private commercial. Most of it's gonna be commercial. It tends to be a little bit of a younger patient versus. Mm-hmm K ind of Medicare with a, with a lot of others. Mm-hmm. You know, I'd say probably 70% or so are gonna be on the commercial side of it. Mm-hmm. That's where we're really pleased with the progress that we're making on the commercial payer piece. We've become educated with other therapeutic categories to know that it's a lengthy and oftentimes multiyear negotiation. Right P rocess. Right. When will you feel that you will have asymptoted towards, "Okay, and here we are, this is the coverage we aspire to?" Can you pick a half of a year or a quarter of a year? I mean, I know these are annual seasonal things, but when will we get to, "Okay, we've achieved the coverage we need? Well, we think we're there. We set out to, you know, get beyond, you know, 70% coverage, and we're already almost 80% on the commercial side. Okay. And we have a strong foothold in the federal channel, too. So the big thing for us is now operationalizing it. So we feel really good for CD. We're where we wanted to be on the coverage, so everything from here is kind of upside, but it will take a while to activate each one of these. I mean, I just, I had somebody call the other day at one of the big health systems to say, "I had a patient that went in there that wanted to get it, and they couldn't get it." We found out it was covered, but the system just hadn't gone through that- Mm-hmm T hat, that process yet, and so, sort of working through the logistics will be important. How are you thinking about potentially providing revenue guidance for the therapeutic side of the business? Yeah, I think it's something that as we get into 2025, we'll think about it because this year it's a de minimis. Mm-hmm. We've said this is really a foundational year. Mm-hmm. But going forward, I think we'll have to take a look at that and say, you know, do we, h ow material do we think it will be? Do we wanna start doing sort of segment reporting? Do we wanna separate it? You know, what, what types of things do we wanna do? Close out then with the rudimentary financial situation. Sure. Cash and runway and commentary. Any updates there? No, it's the same as we said before, ended Q1 with $277 million in cash. We said, you know, product revenue guidance of at least $280 million this year, getting to breakeven in 2025, and our, you know, adjusted EBITDA of $290 million-$310 million, of which we said we would be at the low end of that range. Okay, perfect. Great. I think we covered a lot. Great. There's always more to discuss. Great. We'll just have to get you next time. All right. Thank you, Mark. Sounds good. Thank you, Chris. Appreciate it. Appreciate it.