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Radius Health (RDUS 1.98%)
Q4 2019 Earnings Call
Feb 27, 2020, 8:00 a.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:


Operator

Good afternoon, everyone, and welcome to Radius Health's Q4 earnings webcast. [Operator instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to Elhan Webb, VP, investor relations at Radius Health. Elhan, please go ahead.

Elhan Webb -- Vice President, Investor Relations

Thank you. Hello, everybody. Thanks for joining us today. Our press release and presentation that we'll use to guide our discussion today can be found in the Investors section on our website.

A replay of the call will also be available on our company website three hours following this call. Before we begin, I would like to remind you with our safe harbor slide that we'll have some forward-looking statements and include non-GAAP financial measures in our presentation today. You can find a reconciliation of GAAP and non-GAAP at the end of this presentation. Our 10-K and subsequent filings identify factors that would cause our actual results to differ materially from those indicated by these forward-looking statements.

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Any forward-looking statements represent our views as of today. Here is our agenda for today. Jesper will start by touching on highlights of the fourth quarter and our achievements in 2019. He will then provide a commercial and R&D update.

Following Jesper, Pepe will review our financial results for the fourth-quarter and full-year 2019. I would like to now turn the call over to Jesper.

Jesper Hoiland -- President and Chief Executive Officer

Thank you, Elhan. Welcome everybody, and thank you for joining us on the call today. I'm very pleased to report another strong commercial quarter for Radius. In the fourth quarter of 2019, we achieved $56 million net sales for TYMLOS, reaching $173 million in net sales for the year.

Our market share continued to increase as we exited the year with a majority share in new patient starts on anabolic therapy, NBRx. On the R&D front, we continued advancing our recruitment in the Phase 3 EMERALD and wearABLe studies. We exited 2019 with a strong cash balance of $161 million, as a result of our productivity initiatives and continued financial discipline. After the completion of a strategic review, we announced our decision to build on our strong scientific foundation and successful commercial franchise in osteoporosis to accelerate our growth and sharpen our strategic focus on bone health and targeted endocrine diseases.

With our new strategy, we aim to enhance the value of our assets and allocate our resources efficiently, using our core strength to expand treatment options for patients and maximizing opportunities for our business and shareholders. We aim to leverage our strong commercial success with TYMLOS to launch our abaloparatide patch and expand our anabolic market opportunity in osteoporosis. Our goal is to complement our pipeline and sales portfolio in targeted endocrine diseases. With our strong commercial infrastructure in the U.S.

market, we believe that we would be a partner of choice for ex-U.S. companies that don't have a commercial capability in this region. Slide 7, here is a summary of what we achieved in 2019. We believe our achievements last year have put Radius on a good path for growth.

Now I would like to present our commercial update for TYMLOS. Since the launch of TYMLOS, we have significantly increased TYMLOS' market share within the anabolic space in the new patients and in the total market from an NBRx and a TRx standpoint. In Q4 of last year, we became the market leader in NBRx. We are confident that this will translate to an overall anabolic market leadership position for TYMLOS in the second half of this year, which will be a great milestone for our company.

As you can see, on Slide 10, we have further increased the overall TYMLOS formulary coverage for 2020. TYMLOS is now covered by both Aetna and CIGNA Medicare Part D plans and will be added to Anthem formulas on March 1, increasing TYMLOS' coverage to 83% of Medicare Part D lives. We believe that our enhanced Medicare Part D coverage will further strengthen the healthcare provider's perception and intent to prescribe TYMLOS. Although we took a price increase of 7.9% on January 1 this year, we expect a full-year 2020 average net price to be flat versus 2019 due to enhanced coverage and increased manufacturing reimbursement in Medicare Part D coverage gap.

Now I would like to give an update on our R&D programs. As you can see from our pipeline, we have three Phase 3 studies ongoing, and we expect data results from them in the second half of next year. Consistent with our new direction, we are exploiting strategic options in order to maximize value for our oncology portfolio. Here is an update from our ongoing Phase 3 programs.

We are advancing recruitment in our Phase 3 wearABLe study for abaloparatide patch. Our screen failure rate has been improving, driven by higher screening success and targeted bone specialty centers. We have started expanding the number of sites in the U.S., and are making regulatory submissions for an expansion to clinical sites in Europe. We expect top-line data from this study in the second half of next year.

For ATOM, our male osteoporosis study with abaloparatide, we expect to complete enrollment this year with expected data readout in the second half of next year as well. If positive, study results will be the basis of a supplement NDA to expand TYMLOS label. Male osteoporosis accounts for about 10% of the U.S. anabolic osteoporosis market.

Our multinational EMERALD trial for elacestrant has been made good progress. And we continue to tack the completion of recruitment of 466 patients in the third quarter of 2020. I now would like to hand over the call to Pepe to review the financials.

Pepe Carmona -- Chief Financial Officer

Thanks, Jesper. I will briefly walk through the Q4 2019 revenue growth and income statement. And afterwards, I will share our revenue and cost evolution over the past two years and confirm guidance. As Jesper said, in Q4 2019 we delivered $56 million in revenues, which is a sequential growth of 19% versus Q3 2019, and a 62% growth versus prior year.

The sequential growth of $9 million was driven by market share and net price improvements. Market share drove $4 million of growth, as we gain three points of market share, averaging 41% share in the quarter. The price seasonality drove $5 million of growth as deductibles reduced along the year, as previously guided. In Slide 16, we show the financial statements for Q4 and full-year 2019 on a non-GAAP basis.

In Q4 2019, as said, Radius reported net sales of $56 million, and on a GAAP basis, a net loss of $24.7 million, or $0.54 per share, as compared to net sales of $34 million and a net loss of $41 million with $0.90 per share for Q4 2018. I will walk through some elements of the financial statements on a non-GAAP basis. The figures on our GAAP basis and reconciliation between GAAP and non-GAAP are in appendix. Radius on a non-GAAP basis for Q4 2019 reported a net loss of $13.3 million, or $0.29 per share, as compared to a net loss of $30 million or $0.66 per share for Q4 2018.

Radius investment in R&D grew sequentially and versus Q4 2018, as the wearABLe and EMERALD Phase 3 trials continued to enroll patients and activate sites. We have seen a significant increase in enrollment in both trials and expect to continue as we go along the year, which will drive increases in R&D expenses. Last, SG&A continues to decrease as we continue to identify productivity initiatives as committed in our financial guidance. We should expect more stable SG&A expenses as we go along 2020.

On Slide 17, we show continued management of cash flows and expenses, while driving TYMLOS growth. You can see in the bottom of the slide the decrease of SG&A and R&D fixed costs now stabilizing at around $40 million per quarter. TYMLOS revenue is fully covering all SG&A and fixed cost in R&D, and now is significantly contributing to funding our pipeline. This was one of our goals for this year.

And we expect this to continue in our full-year 2020. The pipeline related R&D investment is expected to grow in 2020 driven by the three Phase 3 programs which will drive slightly higher cash outflows in the next few quarters. The cash on hand of $161 million and the continued growth of TYMLOS positions the company well to achieve profitability in the next few years. In order to create further financing flexibility for the company, in January 2020, Radius entered into a nondilutive financing of up to $95 million.

The financing has two components, a term loan of up to $55 million and a working capital revolver of up to $40 million, including a $20 million accordion. The uses of proceed are to strengthen our minimum cash position, support the pre-commercialization of the abaloparatide patch and potentially support investment in selected targeted endocrine therapy assets. The minimum drawdown from the nondilutive financing is $29 million, which $10 million was done at the closing. $15 million will be drawn down by March 31, 2020.

And $4 million will be drawn no later than September 30, 2020. The rest of the loan is available to the company upon achievement of certain conditions and at company discretion. On the Slide 19, we show the financial guidance for 2020 and for a three years outlook. We expect 2020 revenues to be between $220 million to $235 million.

The increase is driven by the continued market share uptake and market growth, while maintaining our net price versus 2019. Radius expects up to $80 million of cash burn in 2020, which includes the financing of the continued progress on the three Phase 3 trials underdeveloped. Our three years outlook is to have revenues with over 20% compounded annual growth and expect to achieve profitability. We are very excited about this outlook in which Radius is expected to achieve anabolic market leadership, develop and read three Phase 3 trials, disrupt the anabolic market with abaloparatide patch launch and achieve profitability.

Finally, on Slide 20. We want to reiterate our Q1 2020 revenue forecast. We expect to deliver between $45 million and $48 million, which is a growth of 51% to 61% versus prior year, while a sequential decrease versus Q4 2019 as the expected market and price seasonality impact revenues. We will continue to see market share growth throughout the year and a rebound on the anabolic market and net price in the second half of 2020 as experienced in 2019.

I look forward to your questions at the end of the call. With that, I will pass the call back to Jesper for closing remarks.

Jesper Hoiland -- President and Chief Executive Officer

Thank you, Pepe. Here are our milestones for this year. 2020 is a very important year for us on the clinical front. We are on target to complete the recruitment of our three pivotal Phase 3 studies in the second half of this year.

With our continued strong commercial performance with TYMLOS, we expect to reach market leadership in the second half of this year and deliver $220 million to $235 million full-year net sales for TYMLOS. As Pepe highlighted, with our continued financial discipline, we expect to have a cash burn lower than $80 million for 2020. Now I would like the moderator to open the call for questions.

Questions & Answers:


Operator

[Operator instructions] And our first question comes from the line of Jessica Fye with J.P. Morgan.

Unknown speaker

This is Yuko on for Jessica. With trends indicating a slowdown in the overall anabolic market growth in 4Q, how should we think about that trend over 2020?

Jesper Hoiland -- President and Chief Executive Officer

It is correct that it has slowed down. We see low single-digit growth for the year as a maximum. Right now, if you're looking at it, it's flat in the first part of this year, which is not that surprising if you also check the seasonality into consideration, as you will always see the beginning of the year being relatively slow.

Unknown speaker

Thank you.

Operator

And our next question comes from the line of Geoffrey Porges from SVB Leerink. Your line is now open.

Geoffrey Porges -- SVB Leerink Partners -- Analyst

Thanks for taking the questions. That was close. First question is on breakeven, Pepe, given your guidance for this year and your three-year top-line guidance, why shouldn't we be modeling that you achieved cash flow breakeven in 2021? It's hard for me to see that your revenue could grow 20% and you wouldn't breakeven. And related to that, shouldn't we expect the expenses or the Phase 3 trials for both the patch and for elacestrant should slowdown next year and particularly the year after? And then related to that, Jesper, could you give us an update on the potential sale process for elacestrant indeed for your oncology portfolio? When should we be anticipating that that would come to a resolution and wouldn't that potentially trigger a significant improvement in the cash position by the end of the year?

Jesper Hoiland -- President and Chief Executive Officer

OK, Pepe. You take the first one and I will comment on the second one.

Pepe Carmona -- Chief Financial Officer

Sure. Thanks a lot, Jesper, for asking the questions. So I am not guiding specifically to which quarter, it's going to be cash breakeven, but definitely the projections you are making are correct. So, revenues will continue to grow and expenses in 2021 will decrease as the full enrollment is happening this year and then the three Phase 3 trials are going to wind down the following year.

There is always seasonality on expenses several months in the way to achieve their manufacturing from that need to happen. It's a bit more complex to give you the exact like when it's time that we put the company in a positive trend. What I can say is we are extremely confident that with the cash on hand, we are going to keep profitability and we are extremely confident as well of continuous growth of TYMLOS. Jesper?

Jesper Hoiland -- President and Chief Executive Officer

Yes. And your question, Geoff, was on the partnering and we are currently in late-stage discussions with several companies as we have been communicating and we hope to be able to update in the next few months on how that's going. That's our plan currently, but as we keep saying, it takes two to tango.

Geoffrey Porges -- SVB Leerink Partners -- Analyst

OK. Good luck with that tango. Thanks.

Jesper Hoiland -- President and Chief Executive Officer

Thank you, Geoff. We are not objecting to it.

Operator

Thank you. And our next question comes from the line of Vikram Purohit with Morgan Stanley.

Vikram Purohit -- Morgan Stanley -- Analyst

Hi. Good morning. Thanks for taking my questions. So two from my side, so first on the Phase 3 patch study, I just wanted to clarify that if the ex-U.S.

sites that you designated as backup if those need to be activated and then utilized for enrollment, would that create any risk pushing back enrollment time lines beyond the end of 2020 or is that scenario baked into the end of 2020 enrollment completion guidance? And then secondly, I had a question on business development, so during 3Q '19 earnings, you mentioned that your open-end licensing partnership opportunities in the endocrine space, so I just wanted to see if there have been any discussions here. And based on those discussions, if you have a more refined view at this point of what could be interesting and what could be expected over the next couple of years here?

Jesper Hoiland -- President and Chief Executive Officer

Will you take the first one?

Pepe Carmona -- Chief Financial Officer

Yes. The pace of enrollment has taken out really positive sign right now and we are very confident to achieve full enrollment this year. We don't expect any slippage on that in order to be able to read data in the second half of 2021.

Jesper Hoiland -- President and Chief Executive Officer

On the BD issue, basically, as I just mentioned, we are in late-stage discussions and we anticipate reporting out in the next few months. So all in all, that's where we are right now, I cannot really comment any further outside what we have also commented on and said is that we are looking more for a back end deal so have that in mind.

Operator

Thank you. And our next question comes from the line of Mohit Bansal with Citi.

Mohit Bansal -- Citi -- Analyst

Great. Thanks for taking my question. Maybe a couple of questions from my side. So one perhaps, can you please help us understand a little bit more on the guidance you have provided, are you expecting any net price increase here as well or it is mostly volume-driven guidance?

Jesper Hoiland -- President and Chief Executive Officer

Yes. Thank you, Mohit. So for 2020, we took our price increase a wholesaler average cost price increase, a price increase of 7.9%, but that's offsetting two things that are impacting net price, which is the increase of the cost of the coverage gap on the call, as well as the fees in Medicare Part D access. So this year the net price should be flat versus prior year and so you are modeling shouldn't include any net price accretion.

For the following years, we do expect some modest price increases in net, which is part of over 20% compounded annual growth that we have committed to.

Mohit Bansal -- Citi -- Analyst

And are you modeling for any of the generic player coming to the market this year?

Jesper Hoiland -- President and Chief Executive Officer

Yes. As explained, I mean, it's a great question. Thanks for highlighting that. So we have always modeled that there is going to be one or two generics coming in, in the industry or in the market.

And in fact, we were expecting them to come early and now it could happen in the near future through one of the players and maybe at the end of the year or early next year for Teva. Now, we don't expect any impact on TYMLOS growth in that path. So they are modeling, but we don't expect the reality is we don't expect any impact to our continuous growth in the market. At the end of the day, the generic teriparatide will be potentially switched for a year of teriparatide and not against abaloparatide, then abalo continues to be the only anabolic player that is in the market being promoted, that needs to be prepared right now by prescribers.

So we will continue that but we expect that to continue as we go forward.

Mohit Bansal -- Citi -- Analyst

Got it. Very helpful. And then if I may squeeze one more in, on elacestrant, the kind of deal you are looking for, are you looking for some kind of front-end loaded deal or you are looking for something in terms of royalties, which you can get essentially if you do have time because it is in good hands. This could potentially be bigger if multiple trials are being run.

So that's how -- do you think royalties are a matter of the way to go there or front-end a lot of cash in the beginning. Is that away?

Jesper Hoiland -- President and Chief Executive Officer

Mohit, you are hitting exactly where we are looking at it. We really believe that in the hands of the right partner, royalties are the way forward for us, so anticipate that to be the core of the deal.

Mohit Bansal -- Citi -- Analyst

OK. Very helpful. Thank you.

Jesper Hoiland -- President and Chief Executive Officer

And just to be clear, Mohit, it's definitely in our company in Q1. So, there is modeling this for Q1 revenues that's not going to happen this quarter.

Operator

Thank you. And our next question comes from the line of Paul Choi with Goldman Sachs.

Paul Choi -- Goldman Sachs -- Analyst

Hi. Good morning, everyone, and thanks for taking our questions. I have two. The first is on the longer-term guidance and maybe just understanding just given the timing of the clinical trial read-outs, particularly for ATOM and for the patch, I guess just is part of the longer-term guidance particularly toward the back end, just how much of that is reliant on contribution from indication for men and conversions to the patch there and/or geographic expansion? If you could maybe elaborate a little bit on that versus the U.S side that would be helpful?

Jesper Hoiland -- President and Chief Executive Officer

Pepe, guidance?

Pepe Carmona -- Chief Financial Officer

I own it. Thank you, Paul. So, the guidance is definitely only on TYMLOS. We are not counting on any of the clinical trials to drive an uptick in the growth of TYMLOS for the moment.

Even though we are extremely confident that both trials, the patch, and ATOM will drive growth, right now, the guidance is only on TYMLOS growth as expected.

Paul Choi -- Goldman Sachs -- Analyst

OK. Thank you for that, Pepe. And then just in terms of the follow-up with regard to TYMLOS access, while the commercial side is more or less fully has access, the Medicare Part D you guys have noted is still not quite all the way there. Can you maybe just focus on what are you doing to expand access, particularly in the Medicare setting where not all lives are covered, I guess, at this point and how do you think about that being a factor with regards especially to generic competition coming from Forteo? Thank you.

Jesper Hoiland -- President and Chief Executive Officer

Paul, I personally believe that the access that TYMLOS is having is more or less the best I have ever seen in my time in the U.S., which is over the last seven, eight years. Just to remind ourselves, in the commercial space, we have 99% access and that's about 45% of the market. And then if you take the Part D segment, which is about 50% of the market has increased now to 83% which I think is outstanding for any products to have that sort of access, that no exclusivity in the market, they were just also worth noticing. So I do believe that you should not anticipate really that number to go up because you also have to keep in mind that it comes with a caveat of two things.

Point one, you have likely to give a smaller rebate to get that sort of access at least because, for those who are not covered by the access tour of the 83%, they will pay full VAT price for those patients. And that certainly happens in the marketplace that some of the plans will provide access to TYMLOS also because of the price point that we are having for TYMLOS. So I do believe that it's really, really good access that we are having for TYMLOS in the marketplace and you should not anticipate it really to increase any further, because it will cover the cost also because you know the cost of the Part D patients to continue to increase. Our key focus is of course on the commercial space where 99% access is happening and where we have a really big opportunity of treating patients early on with an anabolic product like TYMLOS, which is giving the patients the benefit for the long run.

Operator

Thank you. And our next question comes from the line of Chris Shibutani with Cowen.

Unknown speaker

Good morning. This is CJ on for Chris. Thanks for taking the question. So we started to see the effect of Lilly leaving the market toward the beginning middle of Q4, can you talk a little bit about what activities you guys have started to address that issue and can you provide some connotation on the progress you have made so far? Thank you.

Jesper Hoiland -- President and Chief Executive Officer

You are absolutely right that we have seen the slowing of the market as basically Lilly left the market completely. Our attention is really put on the fact that healthcare prescribers that we are having where we are really engaging very strongly with them. We are having our nurse educators out there. We are having our sales force calling on them and you just see keep coming through that on the high prescribing physicians, which is really the top tiers is where we are making the breakthrough, where we have a higher percentage prescription than for those in the lower decile.

And all in all, our key focus is, of course, to keep that momentum going, because we do believe that there is an opportunity here for TYMLOS. All in all, we have a number of marketing activities in place, also for that lower decile that we are not really calling on, but that we have activities to reach out. So all in all, we will aim at continued growth because it's, of course, we want to see the growth in the marketplace.

Pepe Carmona -- Chief Financial Officer

And just to add on Jesper point, in the lower quintile -- in the mid quintile of the high number of prescribers that described too many anabolic, we have put a new effort there that's the market that has been declining significantly because of the exit of Forteo. We are right now working with jailbreaks and things that are going to help those prescribers to have anabolics at their fingertip, so they can be supportive of the right treatment for the patients. Those activities started now in Q1 and we expect that those are going to help in the growth as we go into 2021.

Unknown speaker

Great. Thank you.

Operator

Thank you. And our next question comes from the line of Douglas Tsao with H.C. Wainwright.

Douglas Tsao -- H.C. Wainwright and Company -- Analyst

Hi. Good morning. Thanks for taking the questions. Just maybe as a starting point when you think about the 20% CAGR growth that you are modeling, just curious if you can let us know what your assumed sort of market share roughly will be from a TRx standpoint in the anabolic number or what sort of the anabolic market share is baked into that? And just curious we have seen some slowdown in the anabolic market, just curious from your perspective, where the biggest growth potential there is with the patch, is that going to be really from the high frequent prescribers or is it an opportunity to sort of reaccelerate growth with sort of the low decile prescribers where we have sort of seen a little bit of taper off in recent periods? Thank you.

Pepe Carmona -- Chief Financial Officer

Yes. Thanks for the questions. So we expect the market to continue to grow. In our projections, we expect that the lower quintile has been decreasing the number of anabolic prescriptions since Lilly has left the market to retake the growth as part of our efforts to support those physicians.

On the patch side. And I am going to allow Jesper to respond to this, but it's definitely going to be about more prescribers to come to the table.

Jesper Hoiland -- President and Chief Executive Officer

Yes. Douglas, basically we are of course currently working on preparing the market for the patch as we are continuing the enrollment into the trial and anticipate redial in the second half of next year. So we have a number of things that we are taking into consideration really to work on for the past, but we anticipate the group to grow for the patches at previous calls has also presented data on how we are seeing the market evolving over a period of time and we see certainly that there is potential for the market to substantially grow with the patch and yet still being subcutaneous injections available at the same time. So we see those two treatment opportunities be available in parallel on the market.

Pepe Carmona -- Chief Financial Officer

So basically just to be clear and as I didn't answer the question, it was getting corrected here, so in 2020, we expect low single-digit market growth, but in 2021 and 2022 as we fulfill the needs of those low quintile prescribers, we expect our market growth to rebound back again.

Jesper Hoiland -- President and Chief Executive Officer

Yes. And reality there is only three ways that you can grow top line numbers that is point one, pricing; point two, market growth; point three, market shares. And, of course, the lion's share of the growth that we are predicting is coming from the market share growth forward-looking all the factors can of course also come into play on the basis of the work we do today that will benefit from tomorrow and forward-looking.

Douglas Tsao -- H.C. Wainwright and Company -- Analyst

And then in terms of the implied forecast of the 20% CAGR over the next couple of years through 2022, what's your sort of baked-in market share assumption from a TRx standpoint in that forecast?

Pepe Carmona -- Chief Financial Officer

Yes. So we haven't given specific numbers here, because it's at the end of the day if it is about growth can come from getting new prescribers to the anabolic space which we are putting a lot of effort into and that or it can be to rebound those low prescribers that low anabolic prescriber to prescribe more anabolics now we believe that they continue growth of TYMLOS growth continue to place in the market and TRx will continue to guide our TRx growth and we expect the TYMLOS will continue to be leader in the anabolic treatment for postmenopausal women in the U.S.

Douglas Tsao -- H.C. Wainwright and Company -- Analyst

OK. And then just one final question if I may just -- given obviously your coverage from a reimbursement standpoint is incredible and is very strong. Just anything in the scenario where generic enters a sort of tactically that you will do in the next few months to sort of continue to grow and grow your market share?

Jesper Hoiland -- President and Chief Executive Officer

Basically, as I said earlier on the call, I think we have done what we have to do you also have to keep in mind that all these the news that we have entered into not just for one year for also forward-looking so they are longer than just one year for some of the contracts we have been doing so all in all the 99% and 83% I think frankly it does not get any better and it should not get any better because then we are leaving money on the table.

Douglas Tsao -- H.C. Wainwright and Company -- Analyst

Great. Thank you so much.

Jesper Hoiland -- President and Chief Executive Officer

Thank you, Douglas.

Operator

Thank you. And we have a follow up question from the line of Paul Choi with Goldman Sachs.

Paul Choi -- Goldman Sachs -- Analyst

Hi. Thank you, everyone. Thank you just for the team with regards to thinking about the strategic elacestrant trend I guess you focus mostly on the sale but with regards to options for clinical partner could you maybe just elaborate on where you are potentially with discussions on that and potentially developing combination strategies? Thank you.

Jesper Hoiland -- President and Chief Executive Officer

Thanks for the question, Paul. For the moment, we are only focused on the monotherapy study and we would expect that some of the partners in discussions with might take follow to go into combination and but for the moment we are not planning to make any investment in that space and the value of the assets right now is far upon there it would be both settings and we would expect that this part of the asset and grow your discount part of that, we will leverage the value and combination to it.

Paul Choi -- Goldman Sachs -- Analyst

OK. Thank you for that.

Operator

Thank you. And I am showing no further questions at this time. I will now turn the call back over to CEO, Jesper Hoiland for any closing remarks.

Jesper Hoiland -- President and Chief Executive Officer

Thank you very much. We have an exciting 2020 in front of us and we are really looking forward to finish the enrollment for our three Phase 3 trials. That will give us the platform for the future in terms of readouts in the second half of 2021. In terms of guidance, we have given strong guidance I feel in terms of sales of $220 million to $235 million with earned less than $80 million and I can only say we are off to a good start.

So thank you very much to everyone and really look forward to meet you on the road.

Operator

[Operator signoff]

Duration: 41 minutes

Call participants:

Elhan Webb -- Vice President, Investor Relations

Jesper Hoiland -- President and Chief Executive Officer

Pepe Carmona -- Chief Financial Officer

Unknown speaker

Geoffrey Porges -- SVB Leerink Partners -- Analyst

Vikram Purohit -- Morgan Stanley -- Analyst

Mohit Bansal -- Citi -- Analyst

Paul Choi -- Goldman Sachs -- Analyst

Douglas Tsao -- H.C. Wainwright and Company -- Analyst

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