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VYNE Therapeutics Inc. (VYNE) Q1 2021 Earnings Call Transcript

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VYNE earnings call for the period ending March 31, 2021.

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VYNE Therapeutics Inc. (VYNE -2.79%)
Q1 2021 Earnings Call
May 06, 2021, 8:30 a.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:


Operator

Good morning, and welcome to the VYNE Therapeutics conference call to discuss the first-quarter 2021 financial results and update. [Operator instructions] Please be advised that this call is being recorded at the company's request. I will now turn the call over to Michael Wood at LifeSci Advisors. Please go ahead.

Michael Wood -- LifeSci Advisors -- Managing Director

Good morning, everyone, and thank you for joining us. Before we begin formal remarks, let me remind you that some of the information in the press release issued this morning and on this conference call contain forward-looking statements that involve risks, uncertainties and assumptions that are difficult to predict including statements, forecasts and observations regarding future financial operating performance, impacts of the COVID-19 pandemic online and observations regarding ongoing operating expenses and net revenue. These statements include observations associated with commercialization of AMZEEQ and ZILXI in the United States. They will also include plans and expectations regarding the success, timing and cost of clinical trials.

Words that expect to reflect optimism, satisfaction with current progress, prospects or projections, as well as words such as believe, intend, expect, plan, anticipate and similar variations identify forward-looking statements, but their absence does not mean that a statement is not forward-looking. Such forward-looking statements are not a guarantee of performance, and the company's actual results could differ materially from those contained in such statements. Several factors that could cause or contribute to such differences are described in detail in VYNE Therapeutics filings with the SEC. These forward-looking statements speak only as of the date of today's press release and conference call, and the company undertakes no obligation to publicly update any forward-looking statements or supply new information regarding the circumstances after the date of this call.

In addition, the financial portion of the call will include certain non-GAAP financial information. For additional disclosures relating to these non-GAAP financial measures, including a reconciliation to the most directly comparable GAAP measures, please see today's press release, which is posted on the Investor Relations section of the company's website. Participating in this morning's call are Dave Domzalski, VYNE's president and chief executive officer; Andrew Saik, VYNE's chief financial officer; Matt Wiley, VYNE's chief commercial officer. In addition, Dr.

Iain Stuart, the company's chief scientific officer, is also on the line and will be available during the Q&A session. At this time, I'd like to turn the call over to Dave Domzalski. Dave, please go ahead.

Dave Domzalski -- President and Chief Executive Officer

Thank you, Michael, and good morning to everyone. I'd like to talk about our recent progress and plans for 2021. As we continue to build the business, we are focused on three key areas: the first is commercial execution, where our top priority is to expand initial trial of AMZEEQ and ZILXI and grow continued utilization of our products. Matt Wiley, our chief commercial officer, will provide an update on our two lead assets.

The second is maximizing operational leverage. We are in a position to take advantage of the significant overlap that exists between acne and rosacea prescribers as we deploy our sales organization efficiently. There will be opportunities to leverage this even further as we continue to add additional products over time. In parallel, we will prioritize our resources prudently and keep a tight control of expenses.

Andrew Saik, our CFO, will provide a financial update. The third is building a diversified portfolio and pipeline. During Q1, we unveiled our newest therapeutic candidate, FMX114, which is a fixed combination of tofacitinib, a pan-JAK inhibitor, and fingolimod, a sphingosine 1-phosphate receptor modulator, in a topical gel that is being developed for the treatment of mild to moderate atopic dermatitis. Preparation activities for our upcoming Phase 2a study are ongoing, and we plan to initiate this study in the third quarter and anticipate top-line results before the end of this year.

FCD105, which is our minocycline and adapalene combination product candidate for the treatment of moderate to severe acne, is now Phase 3 ready. We continue to be prudent as to when we would commence a Phase 3 program for FCD105. This will largely hinge on our results of operations and market conditions, which depend on numerous factors, including the impact of the COVID-19 pandemic, recent payor formulary decisions and our ability to successfully enroll patients in Phase 3 studies. With our focused efforts on the introduction of AMZEEQ for the treatment of acne, as well as our recent launch of ZILXI for Rosacea, our prioritization of resources should remain on these two assets within our acne/rosacea franchise, and so we believe the environment is optimal to progress the Phase 3 studies for our next product in acne, FCD105.

As we broaden our pipeline beyond acne/rosacea, advancing FMX114 into the clinic next quarter is both an important strategic step for our company and also a judicious deployment of our R&D resources. Let me review the highlights for the quarter. Beginning with FMX114. We created this investigational combination product to address the multifactorial nature of atopic dermatitis and to target both the source and cause of inflammation.

Tofacitinib reduces inflammation by inhibiting cytokine release from inflammatory cells and fingolimod inhibits the migration of inflammatory cells, as well as potentially supporting skin barrier recovery, an important factor for patients afflicted with this inflammatory skin disorder. On our year-end 2020 call in March, Dr. Iain Stuart presented compelling preclinical proof-of-concept data for FMX114. We now plan to initiate a Phase 2a proof-of-concept study in this third quarter coming up and anticipate top-line results prior to the end of this year.

Atopic dermatitis represents a large market opportunity, with an estimated 30 million patients diagnosed in the U.S. Of these, 22 million are classified as mild to moderate and are on treatment. Topical steroids account for eight out of 10 of the most prescribed products, but are associated with negative effects on the endocrine system and skin structure when used for a prolonged period of time. So there clearly is a need for an alternative that can address the underlying disease pathogenesis, and, most importantly, is safe enough for patients to apply chronically.

We look forward to providing further updates on FMX114 this year as the product advances. Regarding our commercial business, we generated revenue of $4.1 million in the first quarter of 2021, compared to $1.8 million in the first quarter of 2020. We now have further clarity on market access and now anticipate AMZEEQ and ZILXI market access to be in the range of 70% to 75% of commercial lives for the balance of this year, as Matt Wiley will discuss further. We also ended the quarter with $120.4 million in cash.

I will now turn the call over to Matt Wiley, who will talk about our progress on the commercial front. Matt?

Matt Wiley -- Chief Commercial Officer

Thanks, Dave. Our sales team continues to perform well despite the pandemic-related obstacles that exist in the marketplace. The team began the year with roughly 35% to 40% access to target physicians live, which has advanced to 60% today and continues to improve. AMZEEQ prescription volume in the first quarter came in over 34,000 new prescriptions and over 44,000 total prescriptions.

While this represents modest growth over Q4, we're very encouraged when comparing this to key market competitors, which declined more than 10% quarter over quarter. We continue to expand our reach and trial of AMZEEQ, with the number of prescribers of AMZEEQ reaching nearly 5,200 in the first quarter, representing a 6.4% increase over Q4. To date, nearly 8,000 healthcare prescribers have prescribed AMZEEQ. Additionally, we have penetrated 63% of our target universe, resulting in a prescription being dispensed, and their productivity has risen to 21 prescriptions per physician launched to date.

We are pleased with the progress we have made over the course of the year and expect to see continued increase in productivity due to the high-volume of patients and prescriptions in these important offices. We continue to be encouraged by our nonpersonal promotion, specifically in our ability to educate healthcare providers through peer-to-peer speaker engagements. This platform is allowing us to quickly and efficiently communicate the recent label change for AMZEEQ, which states the low potential for antibiotic resistance. Our online consumer activation efforts have also been fully deployed for AMZEEQ since early January.

Turning to ZILXI. We've seen the impact of COVID-19 pandemic on the launch. Recall, we launched ZILXI in October 2020 during the second widespread state shutdowns. The state-level and physician office COVID-related protocols have significantly impaired face-to-face interactions between our sales team and doctors over the last few months for both our brands.

The impact of these constraints is more pronounced in a space like rosacea, where there hasn't been a meaningful new entry in over five years and changing these habits requires consistent field efforts and additional education. Despite these headwinds, we've generated over 11,000 total prescriptions for ZILXI since its introduction last October, with 7,200 prescriptions in Q1 versus 4,200 in Q4 of 2020. And prescriptions are gaining momentum month-over-month. Nearly 2,300 healthcare providers have prescribed ZILXI since launch, with approximately 50 to 70 new writers per week.

Furthermore, we have penetrated our target universe by 33%. Peer-to-peer education is a key component of our commercial strategy. As with AMZEEQ, healthcare providers have demonstrated keen interest in the ZILXI peer-to-peer efforts, and we continue to execute these programs, both live and virtually in 2021. Since the beginning of the year, we have educated nearly 1,100 healthcare providers in our ZILXI and AMZEEQ speaker events, and plan to accelerate the pace as we go back to face-to-face dialogue.

With respect to market access for both products, as a result of CVS Caremark's decision not to cover these products, and other new branded comparator drugs on its national formulary for 2021, we now anticipate having 70% to 75% of commercial lives covered in the near-term and are continuing to focus on pull-through efforts with underlying custom plants. Looking ahead, the commercial organization is focused on driving patient demand, accelerating volume as the market conditions improve and continuing to focus on targeted physician penetration and adoption. We believe all of these efforts will have both near-term and long-term positive impact on our business as we emerge from the pandemic conditions. Now I'll turn the call over to Andrew Saik.

Andrew Saik -- Chief Financial Officer

Thanks, Matt. Beginning with our balance sheet, our cash position, as of March 31, was $120.4 million, which, we believe, provides cash runway for at least the next 12 months. We continue to remain focused on cost control and resource prioritization. To that end, cash used in operating activities during Q1 was $12.6 million.

Turning to the income statement. Revenues were $4.1 million for Q1, consisting of $3.9 million of product sales for AMZEEQ and ZILXI and $0.2 million of royalty revenue. Our Q1 2021 GAAP net loss was $20.6 million or $0.42 per share. This compares to $40.2 million or $3.79 per share for the comparable period in 2020.

Included in the Q1 2021 GAAP net loss were $2.4 million of noncash stock-based compensation expense. When we exclude this noncash expense, our Q1 2021 adjusted net loss was $18.01 million or $0.37 per share. Adjusted operating expenses in Q1 were $20.5 million, including adjusted SG&A expenses of $14.6 million and adjusted R&D expenses of $5.9 million. As we continue to focus on cost control, we believe that operating costs at the level of $20 million to $25 million per quarter, which is what we saw in Q4 2020 and Q1 2021, are sustainable into the future.

These include expenses required to get to the FMX114 Phase 2a readout anticipated later this year. They do not, however, include incremental costs that would be required for a Phase 3 trials for FCD105. Finally, our share count as of March 31 was approximately 51.4 million shares. For further details on our financials, please refer to our Form 10-Q for the quarter ended March 31, 2021, filed with the SEC.

Now let me turn the call back over to Dave for closing comments.

Dave Domzalski -- President and Chief Executive Officer

Thanks, Andrew. We continue to remain laser-focused on our key objectives of driving sales for our two launch brands, AMZEEQ and ZILXI, and executing against our commercial strategy, prudently managing our resources and maximizing our operational leverage, and building a more diverse pipeline to address unmet needs for patients and providers. We are encouraged by the progress we made across these fronts as we build our business and create long-term value for our shareholders. I will now turn the call over to the operator and open the call for questions.

Thanks.

Questions & Answers:


Operator

Thank you. [Operator instructions] Our first question comes from the line of David Amsellem with Piper Sandler. Please proceed with your question.

David Amsellem -- Piper Sandler -- Analyst

Hey, can you guys hear me?

Dave Domzalski -- President and Chief Executive Officer

Yes, we can, David.

David Amsellem -- Piper Sandler -- Analyst

OK. Sorry. The operator was cutting out. OK.

So just real quick. Think about how are you thinking about gross to net over time, number one? And particularly in the context of your commentary on the payor landscape. And I'm more interested in how you're thinking about steady-state gross to nets for both AMZEEQ and ZILXI? And then I have a follow-up. Thanks.

Andrew Saik -- Chief Financial Officer

Yeah. Sure, David. This is Andrew. I'll take it.

Look, not a ton has changed since last quarter. We still believe that commercially covered lives are going to be on that net $200 to $250 per script range. What's changed is with Caremark not putting the national -- not giving us the national formulary or access to it, we're going to keep some synthetic access available to patients. As a result, the overall net is going to be lower than that, right? Obviously, because we're going to have some prescriptions coming in with a cash pay option.

We don't know exactly what the percentage is going to be. So we're not going to sort of reissue guidance on that. But what we can say is this is a -- hopefully, a moderate change, right? So we had been expecting between 80% and 85% coverage. We're kind of in that 70% to 75% of commercial lives.

But we just don't know what the utilization is going to be going forward because we are going to change the synthetic access program. Right now, it's $75, that's going to change. But without knowing exactly what the utilization is going to be, we're going to wait and give guidance in the future when we have more certainty. I don't know, Dave, if you want to add anything to that?

Dave Domzalski -- President and Chief Executive Officer

Yeah. No. I think you captured it perfectly, Andrew. I think the key thing, too, David, is this is a relatively recent situation with the CVS Caremark national formulary.

As we said before, we have access -- or patients have access to our products under the custom plans. So we're just coming out of the pandemic. Matt talked about it. If you think through the end of last year and the early parts of the beginning of this year, access in the field for represents get to positions was 30%, 40%.

It's now about 60%. We're not at 100% yet. And so as we continue to -- and despite that, we continue to see improvement in our business and growth in our prescriptions. So we want to be smart about managing, obviously, the gross to net and the net price per prescription, but also be mindful of access for patients to our products.

So as Andrew outlined, we'll keep some form of this co-pay card in place, at least for the time being, until we get a chance to see exactly the impact from Caremark's national formulary decision.

David Amsellem -- Piper Sandler -- Analyst

OK. That's helpful. Is there a point, I guess, with any of these plans down the road, where you just look at your rebates and the gross to net and you just say it's just not worth it in terms of being in a contracted position? Because you're certainly not the only one with these high gross to nets. And we're seeing it in a lot of areas and a lot of products, I should say.

So how do you think about that philosophically?

Dave Domzalski -- President and Chief Executive Officer

Yeah. So look, we believe, obviously, it's important to have partnership relationships with payers. I think you said it well. It's a balance between access and the right net price per prescription and gross to net decisions to be made.

We -- again, this is all early. So our plan, when we were preparing to launch these products, has always been to partner with the payers, make sure the patients have access and physicians have access. So all that being said, we're constantly looking at other ways from a distribution perspective to drive sales. So we don't just operate a vacuum.

We think through all of these optionalities. And there are clearly scenarios that we're considering. For the time being, again, we want to stay focused on doing everything we can to get access to physicians, continue to drive awareness, utilization for our products. Again, we're only a couple of months into the launch of ZILXI.

We've yet to have complete open access for the launch of AMZEEQ sands the first three months of the launch last year. So we want to continue to do that while we're talking and negotiating with the payers.

David Amsellem -- Piper Sandler -- Analyst

OK. Thanks, Dave.

Dave Domzalski -- President and Chief Executive Officer

Got it.

Operator

Our next question comes from the line of Louise Chen with Cantor Fitzgerald. Please proceed with your question.

Carvey Leung -- Cantor Fitzgerald -- Analyst

Hi. Good morning, everyone. This is Carvey in for Louise. Just a couple of questions from us.

So given the roughly one-third of U.S. population has already been vaccinated, how should we think about any seasonalities in sales for the rest of 2021 and also, there's been a lot of innovations in the acne space, including technology side, back to your phase, laser, other topical treatments in the pipeline. How should we think about the outlook of the acne space? And how will your acne franchise positions itself in the future environment? Thank you so much.

Dave Domzalski -- President and Chief Executive Officer

So Carvey, can you repeat the first one again, sorry?

Carvey Leung -- Cantor Fitzgerald -- Analyst

Yeah. So given roughly one-third of U.S. population has been vaccinated. How should we think about any seasonalities in sales for the rest of 2021?

Dave Domzalski -- President and Chief Executive Officer

Yes. Yeah. No, great. I got it now.

So will we see an opportunity clearly as -- assuming that offices continue to open, we continue to see improvements in access, which we're anticipating that to be the case. There's some -- we anticipate a bolus of patients coming back, call it, end of the summer, beginning of the fall. We did not see that last year because of the shutdown. And so we're encouraged by what we're seeing, more and more people are getting vaccinated of over months are happening here.

Even if you take a look at our prescription trends last year, despite much more onerous shutdowns, when you look at the months of June, July, August and into September, we saw steady growth, 20% compounded growth month-over-month. We anticipate seeing this type of opening as we, again, move out of the first quarter and firmly into the second and third quarters, we anticipate seeing that similar type of openness. And hopefully, we will see the type of influx of patients into the dermatology offices in the months of August and September as kids are getting ready to go back to school. I think for the rosacea marketplace, you see some of the seasonality right around now.

It starts right around now through the next quarter. And we believe that the work we're doing, the efforts of our sales force, is it puts us in a good position to take advantage of that. Rick, do you want to take the second question?

Matt Wiley -- Chief Commercial Officer

Sure. So -- this is Matt. Regarding the acne space evolution. I mean, there are two new players that will presumably come into the market this year, Winlevi from Cassiopea and Twyneo from Sol-Gel.

They're interesting products, but one of the things that we count on here, first of all, we have a once-a-day product. Second of all, antibiotics have been a mainstay in the acne space for a long time. And tetracyclines clearly are effective. And AMZEEQ solves a lot of the safety issues with those legacy products.

So we feel pretty good about where we're positioned in the market. We have a very strong position in the market, and we believe that, even as these new entrants come into the acne space, we're well-positioned to continue to grow in share.

Carvey Leung -- Cantor Fitzgerald -- Analyst

Got it. Great. Thank you so much, everyone.

Operator

Our next question comes from the line of Oren Livnat with H.C. Wainwright. Please proceed with your question.

Oren Livnat -- H.C. Wainwright -- Analyst

Thanks. I have a couple. If we could just return to the patient access programs. It sounds like you're still modeling this out and trying to figure out what exactly -- what levers you can push and pull.

Could you just talk a little bit about what that process is like? How long do you need to trial different options before we might have, I guess, an optimal solution going forward? And to what extent already, are you pushing through prior auths where you guys aren't covered either through -- from the doctor or with help of the specialty pharmacy channel such that you're incentivizing payers to return to the table?

Matt Wiley -- Chief Commercial Officer

Sure. So this is Matt again. Let me talk about the synthetic access program first. This is one that we have to balance the out-of-pocket cost and abandonment rates.

And so that's something that we're analyzing very carefully. And as we make the changes, we're going to -- like an equalizer, we will balance these things up very carefully to make sure that we don't offset volume with the out-of-pocket evolution. So that's -- let me -- Oren, can you just repeat the second part of the question? I apologize.

Oren Livnat -- H.C. Wainwright -- Analyst

Yeah. Second part of my first question is prior auths, actually. Obviously, that's an important variable and bringing managed care to the table for you and everybody else. And I'm just wondering to what extent you've got doctors or the specialty pharmacy helping to successfully push through prior auths already?

Matt Wiley -- Chief Commercial Officer

Yeah. I mean, so we've seen pretty good prior authorization adjudication. Roughly half of our covered lives have some form of utilization management. Some of that is electronically adjudicated step therapy.

So there is going to be that electronic look back through EMR. The rest is going to be through prior authorizations. The good news is that, by partnering with our specialty pharmacy network, where roughly 50% of our trade goes through, they are really skilled at helping physicians navigate prior authorizations. And so we have really good adjudication where the criteria is met.

Now where the criteria is not met, obviously, the prior authorization would not go through. But we've seen really good success with our prior authorizations thus far.

Dave Domzalski -- President and Chief Executive Officer

Yeah. And Oren, I would say what shouldn't be lost in any of these discussions is that, when we take a look at both the acne and rosacea category, sands oral isotretinoin, there's really only two franchises that have been selling business, which is ours and in the acne space, one of the product [Inaudible] and then in the rosacea space, modest movement from RHOFADE. So we're out there making -- getting access to customers and continuing to improve that. And the initiatives that we have out there, including the peer-to-peer selling efforts that Matt had talked about, are paying off for us.

And we're certainly anticipating improved access and continue to drive prescriptions for both these products as we move to the following quarters.

Oren Livnat -- H.C. Wainwright -- Analyst

And if I may, just how material is this label change for antibiotic resistance came kind of late in the game? Is that something that you expect to be able to leverage both or either or in the field or even more importantly, for managed care that might have been resistant to cover you now should be less resistant, no pun intended?

Matt Wiley -- Chief Commercial Officer

Yeah. We think it's very important. Part of the reason we developed the product like AMZEEQ is to address the concerns from healthcare providers and in the broader clinical environments around better antibiotic stewardship. And we've got data to support that.

There is a very low propensity for the growth of resistant strains with a product like ours for topical minocycline. That was just recent news we got just a few months ago. Our field force, obviously, has his information, and they've been out there working with it over the course of the last several weeks. And to your point, we believe it is -- from a clinical perspective, we believe it's compelling as we speak with payers.

And so that information also, that came to us was after the decision from CVS Caremark. And so all of this, we anticipate to use and leverage as we continue to talk with payers, not just on the national level with the PBMS, but also with all these custom plans as we can continue to pull-through business there.

Oren Livnat -- H.C. Wainwright -- Analyst

All right. Thanks. Appreciate it.

Operator

[Operator instructions] Our next question comes from the line from Patrick Dolezal with LifeSci Capital. Please proceed with your question.

Patrick Dolezal -- LifeSci Capital -- Analyst

Hi. Thanks for taking my questions. Could you just give an update on the phasing out of the co-pay card assistance for AMZEEQ? And whether the CVS decision had an impact there? And kind of the timing of impact on revenue per script? And then the second part is really just the same question on ZILXI. Obviously, it was a bit further behind AMZEEQ in terms of bringing some of these payers on board and kind of sorting out the details of the underlying plans.

But any guidance on the timing of impact of phasing out those co-pay assistance programs for both those programs would be super helpful. Thanks.

Matt Wiley -- Chief Commercial Officer

Sure. This is Matt. Hi, Patrick. So regarding the co-pay card for both AMZEEQ and ZILXI, we intend for those commercially covered patients we're still going to have the buy down to $35 out of pocket.

So especially for those who are in a Tier 3 or better co-pay scenario, we'll continue that part of the program. On the other side, where patients don't have coverage, where there's an NDC block, we are making some alterations to that program for AMZEEQ. For ZILXI, it's still $75 out-of-pocket as this is a -- we're still in launch mode with ZILXI. And certainly, we'll make adjustments where we reserve the right to make adjustments to that program in the future, but that will stay as is.

So we're going to continue these programs in light of the CVS Caremark decision, and we'll make adjustments as needed over time to balance out profitability and patient access.

Patrick Dolezal -- LifeSci Capital -- Analyst

Great. Thanks. And then I guess one more, if I may. Can you just provide some qualitative feedback on the reception that providers are having with ZILXI? Just curious how doctors are implementing this product into their existing treatment paradigm for rosacea?

Matt Wiley -- Chief Commercial Officer

Yeah. So far, the feedback that we've gotten from physicians has been very positive. Physicians have either introduced the product in concert with other therapeutic regimens they're comfortable with. Others are implementing as monotherapy, and we're seeing good feedback early on from those physicians.

And so it's still early. I mean, we have 11,000 prescriptions so far, but everything that we're hearing back is good. And one of the positive things to keep in mind here is that the refill rate on ZILXI is good and growing, even though it's early. And that is a testament to the fact that these patients are getting relief.

Operator

[Operator instructions] Our next question is a follow-up question from the line of Oren Livnat with H.C Wainwright. Please proceed with your question.

Oren Livnat -- H.C. Wainwright -- Analyst

Sorry to make your stay here longer. You mentioned that this is the season now, typically for rosacea. So it's an important time for that product. I'm just wondering, what are you seeing with regards to just -- or hearing from physicians about patient visits as it relates to COVID -- pre-COVID versus now in terms of how live that market really is compared to typical levels.

And just lastly, any chance you're going to break out AMZEEQ and ZILXI revenue going forward? Thanks.

Matt Wiley -- Chief Commercial Officer

So I'll start with the market dynamics, Oren. I mean one of the ways to really examine the seasonality, there are a couple of ways that we've looked at historically. We've looked at how search terms are viewed in April -- March, April, May versus the rest of the year in rosacea. And we see big spikes, especially around the April, May time frame.

As we're looking at the NRx volume as of recent weeks, and certainly since about the beginning of March, we have seen this step-up from where it was around 10,000 or 11,000 prescriptions in the branded space up to around 14,000 in most recent data weeks. So we are seeing the throughput of patients increase. This is really the time as the seasons change where rosacea patients feel a lot of discomfort and seek treatment. And so we're taking advantage of that through our digital marketing efforts and specifically as it relates to search.

And also as we're getting out in the field or as we're out in field, CR physicians live, making sure that they have enough samples to accommodate these patients as they come in.

Andrew Saik -- Chief Financial Officer

Yeah. Oren, I'll ask the second part of your -- answer to the second part of your question. We do intend to break out the product revenues, but we'd like to get through the launch phase of ZILXI first. So it will likely be later this year or maybe next fiscal year, right? But we're not going to do that in the next quarter or two.

It's just we're too early in the launch phase.

Dave Domzalski -- President and Chief Executive Officer

Yeah. And Oren, just a follow-up, too. One of the things that we have is a large number of peer-to-peer educational events around ZILXI scheduled for the next couple of months to coincide with some of the increased -- what we anticipate to be some of the increased patient volume seeking treatment for rosacea. So we've got our efforts deployed, not just direct field efforts from our representatives to offices as they continue to open, but we're trying to supplement that through a large number of peer-to-peer events, which, again, will be ongoing for the next several months.

Oren Livnat -- H.C. Wainwright -- Analyst

All right. Appreciate it.

Operator

And we are showing no further questions on the audio lines at this time. I will turn the conference back over to you.

Dave Domzalski -- President and Chief Executive Officer

Thank you, operator, and thanks to everyone that joined on the call today to -- and for the thoughtful; questions. We look forward to continuing to provide you updates as we progress our business. I wish everybody a great rest of the week, and look forward to speaking with you soon. Take care and thank you.

Operator

[Operator signoff]

Duration: 36 minutes

Call participants:

Michael Wood -- LifeSci Advisors -- Managing Director

Dave Domzalski -- President and Chief Executive Officer

Matt Wiley -- Chief Commercial Officer

Andrew Saik -- Chief Financial Officer

David Amsellem -- Piper Sandler -- Analyst

Carvey Leung -- Cantor Fitzgerald -- Analyst

Oren Livnat -- H.C. Wainwright -- Analyst

Patrick Dolezal -- LifeSci Capital -- Analyst

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