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Edited Transcript of NEOS earnings conference call or presentation 8-Aug-19 12:30pm GMT

Q2 2019 Neos Therapeutics Inc Earnings Call

GRAND PRAIRIE Aug 17, 2019 (Thomson StreetEvents) -- Edited Transcript of Neos Therapeutics Inc earnings conference call or presentation Thursday, August 8, 2019 at 12:30:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Gerald W. McLaughlin

Neos Therapeutics, Inc. - CEO, President & Director

* Richard I. Eisenstadt

Neos Therapeutics, Inc. - CFO, Treasurer & Corporate Secretary

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Conference Call Participants

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* Jacob William Hughes

Wells Fargo Securities, LLC, Research Division - Associate Analyst

* Jason Nicholas Butler

JMP Securities LLC, Research Division - MD and Senior Research Analyst

* Kenneth Charles Cacciatore

Cowen and Company, LLC, Research Division - MD and Senior Research Analyst

* Rafay Sardar

BMO Capital Markets U.S. - Analyst

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Presentation

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Operator [1]

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Good morning, and welcome to the Neos Therapeutics Second Quarter 2019 Financial Results Conference Call. Today's call is being recorded. (Operator Instructions) For introductory and opening remarks, I'm turning the call over to Mr. Richard Eisenstadt, CFO of Neo Therapeutics. Please go ahead.

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Richard I. Eisenstadt, Neos Therapeutics, Inc. - CFO, Treasurer & Corporate Secretary [2]

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Thank you. Good morning, everyone, and welcome to our Second Quarter 2019 Financial Results Conference Call. This morning, we issued our financial results and corporate highlights press release, which is available on our website at www.neostx.com. I'm joined on today's call by Gerald McLaughlin, our CEO. Before we begin, I'd like to read the following regarding forward-looking statements. During this call, we will make statements related to our business that may be considered forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements concerning the commercialization of Adzenys XR-ODT, Cotempla XR-ODT and Adzenys ER oral suspension; the financial results of and outlook for our business, including with respect to net revenue per pack, script volumes' market share, the intended benefits of our commercial strategy, our expectations regarding the brand exclusivity for our ADHD products, our patient access programs, including Neos RxConnect, the capabilities of our technology and our research and development activities, including the timing and progress of our product candidates, future expansion of our product pipeline through business development activities and our current and future financial position. Forward-looking statements may often be identified with words such as: we expect, we anticipate, upcoming or similar indications of future expectations. These statements reflect our views only as of today and should not be reflected upon as representing our views as of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations, including, but not limited to, the inherent risks associated with development and commercialization of our products and product candidates, that we may not realize the intended benefits of our new commercialization strategy, that preliminary or early indicators of performance may not reflect actual results of operations for any period. For a discussion of the material risks and other important factors that could affect our actual results, please refer to those contained in our most recent SEC filings. I will now turn the call over to Jerry.

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Gerald W. McLaughlin, Neos Therapeutics, Inc. - CEO, President & Director [3]

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Thank you, Rich, and good morning, everyone. Thanks for joining us today. I'm pleased to be able to report continued progress this quarter across multiple fronts of our strategy. As you know, we determined in late 2018 that we needed to evolve our business strategy from prescription volume-based to one focus on profitable growth, with the ultimate goal of accelerating our path to profitability. Two full quarters following that decision, we're seeing the fruits of our efforts, and we've accomplished a great deal to improve the commercial and financial fundamentals of our business in a very short period of time. During the quarter, we grew total ADHD product revenue by 27% and have again realized strong growth in net revenue per pack, while prescriptions remained solid despite our shift away from volume. And the significant reduction in our quarterly net loss reflects both our focus on operational productivity and expense management, and the progress we have made towards the goal of achieving profitability. We strongly believe that today we have a financial and operational foundation to support the growth and future profitability of the company. To continue to move this forward, we remain focused in 3 key areas on the commercial side of the business. First, driving further increases in net revenue per pack; second, accelerating growth in prescription volume; and third, maintaining focus on our target prescriber base. We are just now entering the important back-to-school season in the ADHD market, and we look forward to keeping you updated on our progress. Let me now start by reviewing the initiatives, we have rolled out for our ADHD business, and then I will turn to the key commercial metrics for the quarter. To deliver on our 3 key performance metrics, our focus is squarely on accounts where we believe we can generate more profitable business, utilizing our specialty sales force of approximately 75 representatives. This team is currently deployed amongst the prescriber base that has the highest net revenue potential for our ADHD medications, based upon a number of business variables. We are continuing to monitor and assess our performance on an ongoing basis to identify any new opportunities within and potential beyond this prescriber base.

Also, during the second quarter, we implemented our new Performance Analytics platform, which has enhanced our ability to make better informed and more timely business decisions. We also completed the deployment of and training on these data reports, which our sales team is now using to guide their efforts. In late June, we hosted a National Sales Meeting, focused on preparing for the back-to-school season. There was tremendous energy and excitement from the team. At this meeting, we introduced and trained the team on new individual brand strategies and emphasized the importance of our new strategic focus, including newly deployed customer selection criteria and promotional resources. We've launched new promotional campaigns for Adzenys XR-ODT and Cotempla XR-ODT for the back-to-school season. We are confident that these new campaigns, which include compelling and relevant brand messages, coupled with multi-channel marketing efforts, will support a strong back-to-school season for Neos. We are also continuing to expand the Neos RxConnect program we began in Q1 of this year. This new Neos sponsored co-pay assistance program operates through a network of independent pharmacies and offers low and predictable co-pays to commercially insured patients. We are very encouraged with the progress we have made to date and in the second quarter, approximately 15% of our total commercial claims were processed through Neos RxConnect pharmacies. During the balance of 2019, we expect to continue to expand both the number of participating pharmacies in the program and the percentage of patients getting their medication through the Neos RxConnect network. This is an important program for the company, as we seek to enhance access to Neos medicines for commercial patients and health care providers by reducing patient co-pays and simplifying the process for filling prescriptions of participating pharmacies.

Turning now to the specific commercial performance numbers. As discussed, our focus on net revenue per pack as a key performance metric for our business was realized in our results this quarter. For Adzenys XR-ODT, net revenue per pack was $117, a 23% increase over the same quarter in 2018. And for Cotempla XR-ODT, net revenue per pack was $127, a 43% increase over the same quarter, 1 year ago. We are gratified to see such strong growth in this metric, and our progress in this area firms our decision to shift the focus of our commercial strategy. As we move into the third quarter, where net revenue per pack is historically the highest, we are confident we will increase further into the 120s for our blended ADHD franchise. Aggregate prescriptions for our core commercial ADHD products, as reported by IQVIA, increased by 3% in the second quarter of 2019 compared to the same quarter of 2018. This compares to only a 0.4% increase for all branded extended-release ADHD medications in the same time period and 3% for the overall ADHD market. We were able to realize these results despite our shift away from a prescription volume-based strategy. Clearly, this is a positive sign for the business. So all in all, we continue to make very meaningful progress in our commercial portfolio and executing on our strategy. Work remains to be done, but we are well positioned to capitalize on the progress we have made to date. Now I'll take a moment to turn to our development pipeline. We believe that NT0502 is a tremendous asset with the potential to address a high unmet need. NT0502 is a new chemical entity product candidate for the treatment of chronic sialorrhea, a condition where patients with neurological conditions, such as cerebral palsy, ALS, Parkinson's disease and mental retardation, exhibit excessive salivation or drooling. We plan to develop NT0502 as an easy-to- swallow orally administered formulation that can be dosed once or twice daily, with no complex titration required. We are actively in formulation development, have made additional progress the past quarter in IND-enabling studies and remain on track to initiate pilot PK work in the first half of 2020.

We hope to file an NDA by late 2023. NT0502 is the first step in our objective to build a broader CNS focused development pipeline. We believe there is a large opportunity to address symptoms associated with neurological disorders that exacerbate overall disease burden. As you can see, everything we have done for our business since late 2018 is intended to drive both short-term and long-term growth and progress the company toward profitability. The plans are in place for what we believe will be a successful ADHD back-to-school season for Neos. We expect to see continued increases in net revenue per pack and growth in prescription volumes. And we have demonstrated strong progress in strengthening the financial foundation of the company toward our goal of achieving profitability.

With that, I thank you, and I would like to turn the call over to Rich to review our financials.

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Richard I. Eisenstadt, Neos Therapeutics, Inc. - CFO, Treasurer & Corporate Secretary [4]

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Thank you, Jerry. At June 30, 2019, we held $30.3 million in cash and cash equivalents and short-term investments. Excluding the $7.5 million principal payment paid to Deerfield in May, our net cash burn for the quarter was approximately $1.6 million. Total product revenues for the 3 months ended June 30, 2019, were $15.6 million compared to $11.4 million in the same period in 2018. Total product revenues for our ADHD portfolio were $13.7 million for the 3 months ended June 30, 2019 compared to $10.8 million in ADHD product revenue for the same period in 2018. As a result of the addition of several new customers, net product revenues for our Generic Tussionex increased $1.2 million to $1.8 million in the second quarter of 2019, as compared to $600,000 in the same period in 2018. For the 3 months ended June 30, 2019, gross profit was $10.5 million compared to $4.4 million for the same period in 2018. Gross margin as a percentage of net product sales increased to 67% in the 3 months ended June 30, 2019, from 39% in the 3 months ended June 30, 2018. R&D expenses for the 3 months ended June 30, 2019 were $2 million compared to $2.4 million for the same period in 2018. Selling and marketing expenses were $7.3 million for the 3 months ended June 30, 2019 compared to $11.6 million for the same period in 2018. This decrease was primarily as a result of the restructuring of our sales and marketing organization in the quarter ended December 31, 2018. G&A expenses were flat at $3.7 million for each of the 3 months ended June 30, 2019 and 2018. Loss from operations was $2.4 million for the 3 months ended June 30, 2019, an improvement of $10.9 million, as compared to a loss of $13.3 million for the same period of 2018. Net loss for the 3 months ended June 30, 2019 was $3.8 million or $0.08 per share compared to $15.2 million or $0.52 per share for the same period in 2018. This represents the fourth consecutive quarter where we have reduced our quarterly net loss. With that, we'd now like to turn to the Q&A portion of the call. Operator?

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Questions and Answers

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Operator [1]

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(Operator Instructions) The first question comes from the line of Mr. (sic) [Ms.] Louis (sic) [Louise] Chen from Cantor Fitzgerald.

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Unidentified Analyst, [2]

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Harvey, calling in for Louise. First, can you provide more color on your Neos RxConnect program and how that drives uptick of the product? Do you have a competitive advantage? If so, why? Do you see a higher rate of your sales going through the RxConnect program? Secondly, when can we expect the NT0502 PK data? Who does the present at a conference setting? Will we get the details of the Phase I trial design for this asset when the PK data is released? Lastly, what are you doing to expand the pipeline and the product portfolio? Will you do that through internal development or M&A? What areas are you most excited about? Where do you see the greatest unmet needs?

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Gerald W. McLaughlin, Neos Therapeutics, Inc. - CEO, President & Director [3]

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All right. Well, thanks. I think I'll take all of these, right? I appreciate the questions, and I'll try and take them in order. Neos RxConnect is a patient access program that we launched in January of this year, and we're very excited about the prospects for this as a partnership, not only with patients, but with health care practitioners. Patient access to medications, pharmacy stocking and other hassles really deter and frustrate the ecosystem between the physician and the patient. And we developed this to alleviate, mitigate a lot of those concerns by providing a seamless approach, where a physician can prescribe the medication or medications, whether it be Adzenys XR-ODT, Adzenys ER or Cotempla XR-ODT, and the patient has a lot of confidence that it will be adjudicated correctly to pharmacy and offering very competitive, what we believe, best-in-class co-pay program. So the whole goal is to reduce co-pays for patients to give them good access to medication and reduce hassle for the health care provider. We're confident that, that will help provide loyalty to our brands over time. And in second quarter, as I mentioned in the prepared comments, we had 15% of our prescriptions adjudicated through this system. We expect that to continue to grow in the future. As we've been out talking to health care providers across the country, they're very energized about this tool and this resource and view it as a partnership. So we're really excited that this is going to be a key part of our strategy and a fundamental part of our business for a long, long time to come going forward. Turning to your second question about NT0502, we're extremely excited about this asset. We think it's a perfect marriage of addressing a really debilitating symptom that cuts across a number of neurological conditions and what we have with NT0502, unlike older nonselective anticholinergics, highly selective muscarinic receptor antagonist, that is preferentially selected for the salivary gland. So we think that will provide an advantage in of itself. And it's the perfect marriage with our microparticle delivery technology, where we can take older products that are dosed 3 times a day and reduce that dosing to at least twice a day, if not down to once a day, as well as control the pharmacokinetics to further increase the therapeutic index. With your question with regard to the timing of the PK, the pilot PK data, we expect to initiate that in the first half of 2020. Those are, as you know, are not relatively long studies. And we would expect to present that information either in multiple forms and could be in the form of press release, but also in scientific presentation later that year. And we'll keep you posted, of course, as we discuss this on a quarterly basis.

Turning to the expansion of the pipeline, it sort of refers back to NT0502 a bit. We are really excited to address clinical conditions that are underserved today. We particularly like the CNS area and associated symptoms in that area, where our microparticle delivery technology can provide additional value. So we're continuing to look for ways to leverage our technology in the CNS in support of CNS area, the associated symptoms in CNS disorders. In addition, we are actively looking for ways to leverage, we believe, is competitive advantage in our commercial infrastructure and our distribution systems. And we're always actively looking at potentially adding on market products to our portfolio that makes sense, given our commercial footprint and given our commercial infrastructure. So those are ongoing. We don't have anything specifically to discuss today, but I could assure you these assessments are ongoing as we speak.

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Operator [4]

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Mr. Ken Cacciatore from Cowen & Company.

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Kenneth Charles Cacciatore, Cowen and Company, LLC, Research Division - MD and Senior Research Analyst [5]

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Congrats on all the progress. Just a couple of modeling questions first, and then going to ask on the Neos Connect. But first, on gross margins, Rich, are you going to be normalizing at this rate? Or is there potentials for more improvement? So can you give us a sense of what the gross margins will be in H2? And then also on spending, is this the right run rate? Or do we -- should we look for a little bit of a bump up as you go into the back-to-school season for your sales force? And then lastly, on -- Jerry on Neos Connect program, that's great that 15% are not going through. Could you give us a sense of where you are in terms of actually having the pharmacies in place? So are you 100% of the way there, so that they're -- there and now ready to push the parents and patients to? Or are you 50% through kind of getting them established? Can you give us the sense of where you are in getting those set up?

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Richard I. Eisenstadt, Neos Therapeutics, Inc. - CFO, Treasurer & Corporate Secretary [6]

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Kevin, this is Rich. Thanks for joining us this morning. So gross margin, I -- we're -- we have guided previously that we thought we would get into the mid-60s throughout 2019, it's of course a very much driven by both the net revenue and costs. I think, obviously, as in Q2 and Q1 2019 when we've had higher net revenue per pack, there's improvement, when it's lower as it was the case in Q1 and Q2 last year, and again in Q4. And cost remains constant, there's downward pressure. So I think you'll continue to see a little bit of fluctuation in our gross margin. We do expect we're going to improve our net revenue per pack in Q3. But as we previously indicated, Q4 begins to drop off again as we anticipate high deductible plans come into place. So there'll be some variability there. I think what's important to note is that our -- for our ADHD products and that average net revenue was $121 versus $106 in Q1 and $92, 1 year ago. So that's driving a lot of improvement there. On the cost side, we had a 10% improvement in cost per unit for our 2 ADHD products versus the same period 1 year ago. And we also had a inventory cleanup adjustment 1 year ago as well, if you remember. So we expect we'll continue to realize improvements in our cost. We have active programs in place to take cost out of the business. So we do expect improvements, and I think looking into next year and beyond, the gross margin can get into the 70% range. Regarding spend, I think we probably should see some increase in sales and marketing expenses, as you point out, as we're in the back-to-school season. And also, we purposely held off some of our spend as a part of our reconfiguration last year, until we got our territories re-established and the relationships between our representatives and their new HCPs contacts. It did make sense to spend money on peer-to-peer programs, for instance, but we anticipate we will bring in some of that out as part of our marketing campaign this fall. We've previously indicated we thought our sales and marketing expense for the year would be in the low- to mid-30s and we still anticipate that, that's where that's going to show up. R&D expense, it should remain relatively flat for the near term, maybe beginning to pick up later on the year as we get back into spending more money on our post-marketing commitment studies for Adzenys and Cotempla, resulting from our PDUFA improvement. And G&A stays fairly flat throughout the year.

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Gerald W. McLaughlin, Neos Therapeutics, Inc. - CEO, President & Director [7]

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And Ken, on the Neos RxConnect, just a reminder for others is that for our first commercially insured patients, we have the lowest possible co-pay for their Neos medication, and it covers 100% of commercially insured lives, the maximum they will pay is $35 copay, and many will pay $0 if it is covered by their commercial insurance. And as you know, it is designed to reduce the paperwork involved and the hassle. As we ended the second quarter with close to 120 pharmacies on board. And that is growing weekly. We have a queue that we're processing as we speak. We expect, Ken, to continue to grow the number of pharmacies throughout the remainder of 2019 and likely into 2020, given the success of the program early on. So that will continue to be a focus as we go forward. And we'll look for ways to continue to expand that so we have sort of universal coverage within our geographies, where we have our target prescribers.

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Operator [8]

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Mr. Jason Butler from JMP Securities.

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Jason Nicholas Butler, JMP Securities LLC, Research Division - MD and Senior Research Analyst [9]

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Actually, just a quick follow-up on the Neos Connect program. Can you maybe speak to what percentage of the pharmacies in the network today that you're seeing that the majority of scripts flow through? Is it broadly across? Or are you seeing concentration in pockets so far? And then secondly, you mentioned the new brand strategies that you discussed at the sales force meeting. Can you maybe elaborate a little bit on your current messaging for the products?

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Gerald W. McLaughlin, Neos Therapeutics, Inc. - CEO, President & Director [10]

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Yes. Jason, of course, I'll handle that. Like any new initiative, in the early days of Neos RxConnect, you have a highly concentrated use, right, a high percentage and a small number in the 80-20 role. Overtime, what we're pleased to see is a broadening of adoption and utilization and really, that comes down to the efforts of our sales force, communicating the benefits of Neos RxConnect to providers. And it's a classic case of once a provider tries Neos RxConnect and have as good experience, they begin to adopt it further and further. And I've been out on the field and just about every week since our National Sales Meeting and we're seeing this adoption really pick up. So over time now, early on, the utilization was highly concentrated, and that is beginning to spread as we add additional pharmacies, and we have additional adoption across our territories. And the second question you had was on the brand strategies. We are highly confident in our microparticle delivery technology, that's what really differentiates us in the ADHD space. And so we really focus on the effectiveness of our ADHD medication, with Adzenys XR-ODT and the microparticle delivery technology. With Cotempla XR-ODT is a real highway on 2 things, the clinical data is outstanding. Cotempla XR-ODT helps you win the morning and win the day in that you have rapid onset within 1 hour and good efficacy at 1 hour and that's sustaining now through, including 12 hours. So you have a patient who -- a child is going to school, by the time they're in the bus in the morning, and we can be effective, we're going to be effective throughout the day at school, and then even through the homework hours. In addition, we have outstanding data that really highlights their performance on math problems. And so you combine sort of the overall symptomatology in ADHD with performance on math problems and that is really we think a good highlight for our brand going forward. Combining that with our best, what we believe, is best-in-class patient access programs with Neos RxConnect, we're very excited about what's going forward for our brands.

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Operator [11]

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Mr. Jacob Hughes from Wells Fargo.

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Jacob William Hughes, Wells Fargo Securities, LLC, Research Division - Associate Analyst [12]

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Just had a quick question on -- given the improvement you've seen in net revenue per pack this quarter, do you still see the $75 million this year and $100 million? Is that still a stretch? Or how do you think about that?

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Richard I. Eisenstadt, Neos Therapeutics, Inc. - CFO, Treasurer & Corporate Secretary [13]

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Yes. We've never -- Jason, we've never really guided people to $75 million and $100 million. Those are...

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Jacob William Hughes, Wells Fargo Securities, LLC, Research Division - Associate Analyst [14]

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Those are the Deerfield, right? Yes.

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Gerald W. McLaughlin, Neos Therapeutics, Inc. - CEO, President & Director [15]

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Those are two Milestones that are in the Deerfield agreement, where if we hit those numbers, then we have an option to slide out our debt payments, but we never really said that, that was where we're guiding to for the year and we haven't provided guidance.

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Jacob William Hughes, Wells Fargo Securities, LLC, Research Division - Associate Analyst [16]

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Okay. And then secondly on the cash burn, ex the Deerfield payment under $2 million, is that kind of consistent in the second half? Or does that pick up in the fourth quarter?

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Richard I. Eisenstadt, Neos Therapeutics, Inc. - CFO, Treasurer & Corporate Secretary [17]

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Well, I think as I've indicated earlier with Ken's question, that we expect we'll spend some more funds geared towards sales and marketing. There are some expenses that are seasonal, but we'd also expect we're going to be growing our revenue and our gross margin as well. So they sort of offset. I think it's really a trend, it's not necessarily a specific point. We tend to have good collections in Q2, as we collect from our Tussionex seasonality. So Q2 is always a good quarter, but we expect to continue to see improvements in our burn. And as we've indicated before, that we have enough cash to get to profitability. So at some point, it's not a burn anymore, it's cash generating.

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Operator [18]

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Gary Nachman from BMO.

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Rafay Sardar, BMO Capital Markets U.S. - Analyst [19]

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It's Rafay on for Gary. Can you guys hear me, okay?

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Gerald W. McLaughlin, Neos Therapeutics, Inc. - CEO, President & Director [20]

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Yes.

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Rafay Sardar, BMO Capital Markets U.S. - Analyst [21]

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So you've talked in the past about 7,000 physicians being in your call audience. Do you have a sense for what percentage of those have prescribed and for those physicians that haven't, why have they been reluctant to do so? Second question, with respect to price increases, you took a 4% increase on Cotempla in April. Can you help quantify how much of that growth increased flows to net price? And lastly, are you conducting any DTC campaigns? How much of a priority is that, whether it's some sort of national campaign or a more targeted digital campaign.

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Gerald W. McLaughlin, Neos Therapeutics, Inc. - CEO, President & Director [22]

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So great questions. I'll start with the first on our brand strategies and the 7,000 targets. A vast majority has tried and/or the range of prescribing levels for our brands. And I think the question comes up around our brand strategy. And really where we're focused, our brand strategies are focusing our team where we can win quickly and sustain our business throughout and beyond the back-to-school season and specifically focusing on shifting more of the current product dabblers within that 7,000 target to become more product adopters, right? So it's about growing our existing prescribers and then moving these dabblers into becoming adopters. And we're doing that through our brand strategies and also through our best-in-class Neos RxConnect program, but at the same time, we will continue to focus on expanding prescriber rates beyond those existing today. So it's a sort of a 3-pronged strategy. And when you look at it being back once again to our promotional campaigns and how we're able to do that with our microparticle technology and our data, when you look at Adzenys XR-ODT, our focus will be on providing the proven and effective ADHD symptom management, with a focus on the adult patients and this is a slight strategic shift from our historical focus on adolescent. Amphetamine-based products continually -- continue to be to predominantly prescribed in the adult population and we're really moving our focus in that direction to where the market exists and we think that's going to be a good driver among our prescribers. And then with Cotempla XR-ODT, we'll continue to focus on the adolescent market, which is predominantly methylphenidate. And I talked earlier about our campaign there about the compelling clinical data, that it allows the patient to have effective relief, not only in the morning, but throughout the day and into the evening hours. So that's the goal is to move these dabblers along to become adopters and then continue to identify new prescribers to bring into the mix.

Then your final question, I think, was on DTC. Broad-based DTC is not something we're engaging right now. We are actively examining select very specific, digital, nonpersonal type campaigns and we're examining that not only for later this year, but looking as we -- look at our longer-term marketing strategy.

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Richard I. Eisenstadt, Neos Therapeutics, Inc. - CFO, Treasurer & Corporate Secretary [23]

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And regarding your question on revenue growth. Look, most of that in Q2 was related to improved net revenue per pack. That was an improvement, just beyond the price increase we took for Cotempla, it was the strategies we've been talking about, about shifting our focus to more profitable prescriptions. So that was probably the bigger driver in generating increased net revenue per pack. As you know, the pharma manufacturer does not retain all that much of any price increase it takes. So scrips, we don't book off a scrips, we book off of selling to wholesalers. But scrips are a good indicator of that. So you can do the math and see that most of the increase in Q2 came from price increase and not necessarily from prescription growth. But we expect going into Q3 with the back-to-school season, the new strategies, then we return to the growth in our prescriptions as well.

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Operator [24]

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And I am showing no further questions in the queue at this time. Ladies and gentlemen, thank you for participating in today's conference. This concludes your program and you may now disconnect. Everyone, have a great day.