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Agile Therapeutics (NASDAQ:AGRX)
Q2 2021 Earnings Call
Jul 26, 2021, 4:30 p.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:


Operator

Good day, and thank you for standing by, and welcome to the Agile Therapeutics Q2 2021 financial results and business update conference call. At this time, all participants are in a listen-only mode. After the speakers' remarks, there will be a question-and-answer session. [Operator instructions] Please be advised that today's conference is being recorded.

[Operator instructions] I would now like to hand the conference over to your speaker today, Matt Riley, head of investor relations. Please go ahead.

Matt Riley -- Head of Investor Relations

Hello, everyone, and welcome to today's conference call to discuss our second-quarter 2021 financial results and corporate update. Before we start, let me remind you that today's call will include forward-looking statements based on current expectations, including statements concerning our financial outlook for the future, management's expectations for our future financial and operational performance, our business strategy, our assessment of the combined hormonal contraceptive market and the potential market share for Twirla, among other statements regarding our plans, prospects, and expectations. Such statements represent our judgments as of today, are not promises or guarantees, and may involve risks and uncertainties that may cause actual results to differ from the results discussed in the forward-looking statements. Please refer to our filings with the SEC, which are available through the Investor Relations section of our website, for more information concerning risk factors that may affect the company.

We undertake no obligation to update forward-looking statements except as required by law. The information on today's call is not intended for promotional purposes and not sufficient for prescribing decisions. Joining me on today's call are Al Altomari, Agile Therapeutics' chairman and chief executive officer; and Dennis Reilly, chief financial officer. Following our prepared remarks, we'll open the call to your questions.

Let me now turn the call over to Al.

Al Altomari -- Chairman and Chief Executive Officer

Thank you, Matt. Good afternoon, everyone, and thank you for joining us for the second-quarter 2021 earnings call. I've been looking forward to this call for a long time, and I want to thank you in advance for joining us. I'm going to jump right into the theme of today's call: growth.

Growth, we're both encouraged and excited by. In the past, you've heard us talk about our future plans for Twirla. Now that conversation begins and ends with the brand growth. So we'll start today by outlining the progress we are seeing and providing some context on why we believe growth is encouraging.

We will then discuss why and how we believe we can sustain and accelerate that growth. Finally, I'll have Dennis do a quick update on our financial position before opening the lines for Q&A. Let's talk about Twirla's performance. We've now completed our second full quarter as a launched and commercialized brand.

Last quarter, we started to see steady upward trend of increasing scripts, refills, and awareness of our product, and as expected, that growth has continued through the second quarter. On Slide 4, you will see the quarterly performance since our Q4 2020 launch, and we see growth on all key performance metrics. From the end of Q1 2021 to the end of Q2 2021, we saw total prescriptions or TRxes increase 171%. New prescriptions or NRxes increased 103%, and the refill rate grew 355%.

While we saw significant growth in these performance metrics quarter over quarter, there's also consistent pattern of growth. When we break down the quarter and examine the data month over month, as you'll see on Slide 5, during Quarter 2, month-over-month growth of TRxes was 35.2% in April, 26.5% in May, and 31.4% in June. NRxes were 20.4% in April, 10.4% in May, and 31.2% in June. And refills were 70.6% in April, 35.9% in May, and 40.6% in June.

One other view of the data we track is on a four-week rolling average that we discussed on our last call, and that's very consistent with our quarterly and monthly growth. We are encouraged by the fact that we're seeing consistent brand growth at the quarterly, monthly, and four-week levels. Please note that these results do not include sales in the nonretail channel, which includes clinics, institutions, hospitals. In the second quarter, we sold an additional 2,291 units into the nonretail channel.

Because we're focused on TRx growth, I wanted to highlight what we think is an important contributor to that growth and the health of our brand: new prescriptions and refills, both of which grew in Quarter 2. Every time we acquire a new patient start, we are potentially acquiring a customer for some time to come. Each NRx has the potential to manifest itself as a repeat customer with an extended time value to the brand because NRxes can lead to refills, which can drive TRx growth. We are confident in the health of Twirla because we're seeing NRxes translate to refills and the potential for more patients to stay in the brand, which can, in turn, lead to more sustained growth.

This leads me to a question I've heard from some of you as analysts and some investors, how does your growth compare to other combined hormonal contraceptives? And how should we think about these refills and these NRxes? This is a new metric when we talk about, so we never showed you before because it was still very early in the launch. I want to show you now on Slide 6 a graph comparing the initial stages of the launches of Twirla to Lo Loestrin Fe, a low-dose prescription birth control pill and one of the biggest brands in the combined hormonal contraceptive market. This slide compares the ratios of TRxes to something you may not look at very often, NTTRx, which are prescriptions for patients new to our product, Twirla, and Lo Loestrin, in other words, the percentages of TRxes that consists of prescriptions for patients who have never used our product before. These ratios increase when more new patients continue to fill their prescriptions.

Over the first 26 weeks of launch, Lo Loestrin Fe developed a steady NRx volume that translate into refills, which contributed to the growth of the brand for years after the launch. The total prescription to new product prescriptions ratios help us understand whether we are building a base for future potential growth. And when you look at the curves on Slide 6, they're similar over a comparable period of time. While we're still in the early stages, Twirla's steady ratio of total prescriptions to new-to-product prescriptions suggest the brand could potentially sustain long-term growth.

I want to be clear. We're not suggesting Twirla will achieve the market share success that Lo Loestrin has. And it's important to remember that prescription volumes underlying these curves were much larger for Lo Loestrin than they are for Twirla. But we believe one of the key for a healthy, steady growing brand is to deliver strong total prescriptions to new-to-product prescription ratios, which is evidenced here by both of these brands.

Of course, new prescriptions and subsequent refills are not possible without growing our prescriber base. On Slide 7, you'll see prescribers growth over the course of Twirla's launch. As of March 31, 2021, we had told you we had 855 writers. And at the end of Quarter 2, June 30, 2021, that number has grown to 2,087, and that number continues to grow throughout the third quarter.

Again, you'll see here that the quarter-on-quarter growth is supported at a more granular level over a month to month, as seen on Slide 8. The growth in the number of providers writing the prescriptions for Twirla has steadily contributed to a steady momentum in TRx growth. Also important to note that the number of TRxes each prescriber is writing or their productivity, if you will, also continues to grow. Based on the early performance growth we are seeing with Twirla and how that compares to the growth trajectory of another brand we consider to be a success in the category, we're pleased with the progress and the health of Twirla, but the question we consider in challenge ourself is how do we accelerate and sustain that growth.

And the answer is focusing on two major efforts, market access, and our marketing effort to pursue this goal. So I'm going to start with market access. We are seeking to increase access to Twirla through a variety of efforts, including a focus on expanding access and reimbursement coverage for Twirla across commercial and government health insurance plans. In the second-quarter 2021, we expanded our Medicaid coverage.

Twirla is now available to Medicaid patients in approximately 75% of the states, either through traditional Medicaid and/or managed Medicaid. With these new additions, we have coverage of approximately 50% of the total Medicaid transdermal or TRx market with no restrictions. Overall, we have access to approximately 55% of commercial and government CHC claims. We are encouraged by this trend, and we view this as another source of ongoing market growth for Twirla.

We remain committed to expanding access for Twirla for all appropriate women interested in using our products. In addition to managed care and Medicaid access, we are now exploring access through additional state and university clinics, Planned Parenthood, and other nonretail sites in an effort to make Twirla available to women everywhere. For example, we saw significant growth in the nonretail volume in state clinics in Quarter 2. Now on to marketing.

We believe the performance metrics we reviewed at the top of the call reflect what we consider to be a very smart approach to DTC marketing spend. As I said last quarter, we've made a large incremental branded consumer marketing spend quarter over quarter starting in Quarter 2, while maintaining our disciplined approach in making the right investments at the right time to encourage strategic growth. As healthcare provider awareness increased leading up to and throughout the second quarter, we made what we believe to be appropriate and necessary increase in branded DTC digital marketing investments in late May and early June. So your takeaway here is that we're very encouraged by the growth we're seeing based on a very disciplined DTC spend.

So we expect TRx, NRx, and refills all to continue to grow as more and more women in our target audience gain exposure to Twirla advertising. Last quarter, we mentioned we are expanding Twirla's brand digital efforts to a targeted audience by advertising on the dating app, such as Tinder and OkCupid, and now we can report that relationship in less than a month has exceeded our expectations. Moving forward, we'll expand our presence on the dating apps, advertising on Spotify and engaging influencer partnerships, all designed to drive awareness, and ultimately, trial for Twirla. In addition to the digital meeting campaign, we have identified and are pursuing new opportunities to drive consumer awareness and potentially lead to future growth.

At our next earnings call, we look forward to sharing with you progress on partnering with additional channels like telemedicine, as well as potentially Planned Parenthood and student health centers. Again, we believe all these efforts contribute to awareness, which we expect to contribute to more new starts and in turn lead to higher refills, and ultimately, stronger TRx performance. We believe all these components are a sign of a healthy brand and longevity for potential future growth. Before I turn the call over to Dennis, I want to reiterate that we remain steadfast in our belief that at peak, Twirla can capture up to 5% to 8% to the $4.1 billion combined hormonal contraceptive marketplace.

Thank you, and I'll turn it over to Dennis to talk about our financials.

Dennis Reilly -- Chief Financial Officer

Thanks, Al, and thanks to everyone for joining. As Al commented, we're really excited about the growth potential of our business, and I want to give you more clarity around second quarter from a financial perspective, including a bit more detail on how Twirla's performance has been trending year to date and some general parameters on how to think about our results for the full year. If you are following along in the deck, I'll be taking you through what is included on Slide 11. Wholesalers completed their work down of inventory levels from the initial stocking level last December.

And as a result, we realized $1.2 million in net product sales revenue for the second quarter of 2021. The rate of inventory depletion came broadly in line with our expectations. And we anticipate that going forward, our product sales revenue will more closely track to increasing script demand and that wholesaler restocking should then more closely reflect retail sales. This aligns with our initial full-year expectations for Twirla, which were based on the assumption that sales growth would increase in 2021 as product samples are worked through, our prescriber base expands, patient awareness of Twirla increases, refills begin to occur.

And overall, we gained traction in the CHC market. Regarding our quarterly cost. Our cost of product revenues for Q2 were $1.1 million, which included expenses for supporting our manufacturing and distribution, as well as personnel costs and $0.5 million of noncash depreciation expense. We expect these fixed costs will become less significant as our sales grow with anticipated volume.

Our operating expenses were $16.7 million in Q2 versus $10 million in the same period a year ago. We expect our third-quarter expenses to be similar to this, but they could be $1 million or $2 million either way. It's a function of how fast sampling and other cost comp, but these are relatively stable costs for us. As we closed out the second quarter with a net loss of $17.6 million or $0.20 per share, compared to a loss of $10.8 million or $0.12 per share for the comparable period in 2020.

At June 30, 2021, we had cash, cash equivalents, and marketable securities of $31.1 million, compared to $54.5 million at year-end 2020. As a reminder, we have access to a $25 million capital through our loan facility with Perceptive Advisors, including a tranche of $15 million in 2021 and a tranche of $10 million in the future. They'll be available both contingent on a predetermined revenue target. We'll continue to monitor our spending closely, and if needed, we have the ability to modify our sales and marketing spend.

Additionally, we have the potential to access additional capital through our ATM or at-the-market facility, which we can raise up to $50 million in gross proceeds. To date, we've sold $7 million under this through common stock through the ATM. Our team continues to be excited for what lies ahead. We believe we have established and remain encouraged by the momentum for Twirla.

We remain focused on maintaining our disciplined and nimble approach and making the right investments to encourage strategic growth and maximize shareholder value. With that, we are happy to take your questions. Operator, you may now open up the line for Q&A.

Questions & Answers:


Operator

Thank you. [Operator instructions] Our first question's coming from the line of Oren Livnat with H.C. Wainwright. Your line is open.

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

Hi, guys. Thanks for the questions. I'm sure you're aware that there is a pretty big discrepancy out there in some of the third-party data services from Symphony and IQVIA. I happen to generally rely on the latter, and it looks like it was more than two times the volume, I guess, you guys quoted and what Symphony is saying for 2Q.

So I'm just wondering if you can talk a little bit about if you have any understanding through your diligence as to what that may or may not be and where that's coming from? It seems to have maybe corrected in the last couple of weeks. And then help us understand going forward, if the lower Symphony volume is the right number, what kind of economics should we be thinking of around those prescriptions? Are those just slightly higher dispensed prescriptions out to pharmacy you're seeing so we can model this going forward? And I do have a follow-up. Thanks.

Al Altomari -- Chairman and Chief Executive Officer

Oren, thanks for the call. So Symphony and IQVIA, we are Symphony subscribers. We get a little of the IQVIA data. They're really not off.

You have to look at it, Oren, in two buckets, if you will. There's the retail segment. You just can't look at TRx is, I guess, my point. If you look at retail, which is where the bulk of the prescriptions go through, they're not off.

They're really not off. So the way we look at our business, we say what's going through retail, which is the more traditional channels of pharmacies. And then in this segment, it's different. There's a pretty big all other category that we started describing.

We got some business that ran through there and some of the mail-order business and things like that. So we think what happened, and the operative word is we think, that IQVIA's algorithms that forecast or trend leaves all other categories were off. And we alerted them that we think that was off, and I think they did correct themselves. But I think the way we look at the business, Oren, and the way we model, we say, let's model the traditional channel, which is retail.

It's not -- they aren't off, the foodservices. And then, if you will, we layer in the all-other channel on top of that saying, OK, what else is happening in the all-other category? Because we all know that other category is a little bit lumpy. You know, there's big purchases sometimes. A lot of our mail-order scripts have gone to our partner Sterling.

And the algorithm in just trying to project that, we think -- and I really emphasize the word we think because we spent a little bit of time. We were aware of it. So bulk of -- for instance, the bulk of the Bloomberg terminals rely on Symphony. So I know a couple of you rely on IQVIA, but we did the best we can to stay on top it.

But the sweet spot of the market, meaning the retail segment where the bulk of the patient goes, their databases are very similar, if that makes sense.

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

Yeah. OK. And then just to the basic, I guess, gross-to-net. You know what your contracts are, and I do want to touch on contracts again in a follow-up.

And I guess you can see the volume going out the door and what you're shipping to wholesalers to restock. But how do you think we should think about gross to nets now in Q2 and going forward to sort of come out with a real listed value prescript, so to speak?

Al Altomari -- Chairman and Chief Executive Officer

Sure. We haven't guided it, and we're still -- it's still in our -- we're in a bit of a moving target. We mentioned these Medicaid contracts. We're just getting them under our belt.

And then going forward to project gross to net, we have to say how much of our business is going to go from Medicaid. So until we get all the base book contracts up and running, we haven't been able to guide it, Oren. So we're still trying to get our arms around it because it really does depend on the mix of patients. We know what we pay for commercialized.

We know what we pay for Medicaid lives. But until we see how much of our business runs through each channel, we're not in a really great position to do much with gross to net. But all in all, we like the contracts. We like the access.

Our primary goal is access at a decent price, and I think we've achieved that.

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

OK. And just to talk about access. You know, like I have no doubt that your demand is ultimately way higher than where it is today and in a massive market. There's clearly a sliver that's there for you.

But you do talk about access, and that's crucial, right? It has to be easy to get. So when you talk about "access" to 55% of commercial government lives, I think I've asked you this on pretty much every call we've ever done. What does access really mean? It's one thing to not be blocked. It's another thing for it to be affordable or easy to be prescribed and fulfilled with the pharmacy.

So what are you seeing? And how does the ACA -- how is that playing out in terms of preferential access?

Al Altomari -- Chairman and Chief Executive Officer

Yeah. I mean, when we use the word access, we mean that it's easy for a doctor to write. So when we close 55%, it seems it's in a formulary position that he can write the drug. So when -- in theory, under the Affordable Care Act, everybody can write the drug, and we could at least quote 100% because, in theory, patients are supposed to be able to have access across all the commercial plans with their doctors just writing a letter of medical necessity.

But we try to, if you will, quote where there's easy access, I guess, Oren, is the way we think about it. The 55% is where doctors can write it and get the drug through. But like you said on the Affordable Care Act, these drugs should be more broadly acceptable but involves work by the doctors. So we don't want to overstate it, so we want to keep chipping away with those other ones.

And we've added more, and we expect going forward, you'll hear that number getting bigger. So -- but that's how we're using the word access. So a very good question.

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

OK. I appreciate that. Thank you.

Operator

Next question coming from the line of Tim Lugo with William Blair. Your line is open.

Tim Lugo -- William Blair & Company -- Analyst

Thanks for the question and congratulations on the progress and also for providing us all the KPI metrics. That's very helpful. And I guess going into one of the nonretail channel, I believe you mentioned in your prepared comments it was around 2,000 in the quarter. How meaningful do you expect that channel to be kind of quarter over quarter throughout the remainder of the year? And is that something that could fluctuate Q3 and Q4? Or what are you just expectation there?

Al Altomari -- Chairman and Chief Executive Officer

Tim, first of all, thanks. And you know, we appreciate -- we'll try to give this transparency. We like showing the metric the way we look at the business. So thanks.

We appreciate that comment. Yes. So that channel is really an interesting one for us. So like Oren's question, if you heard his question, in some respects, they were picking up some business and straight-lining it, if you will, on one scenario.

So that was kind of one algorithm. And then one we quoted, Tim, was the -- I don't want to say direct. They didn't buy the product from us. They bought it from a wholesaler, the state clinic, that just bought it directly 2,000 units, directly from one of our wholesalers, which is them was an exciting day to get that big of an order.

I got to tell you, that's about one sort of retail down in that month. So we'd like to think that channel is going to become more important. But it's early days. How's that.

I think they'll be conservative the way you think about it. So we get on leg under us. But it's exciting, though. I think what makes us excited, Tim, is that -- these public sector accounts, and there's a ton in them.

This is just scratching the surface. This happened to be a state clinic. And the interesting thing -- and I have to say we didn't have a rep in front of them. They just heard about the brand.

They thought the brand was great. They put a big order in, and now we're trying to say you want more. So in the meantime, there's a lot of Planned Parenthood business through health center, telemedicine. So we haven't begun, Tim.

So I think for us, we want to kind of think about the business in our retailers, our bread and butter. And then we're just going to have to keep updated on this business. It's lumpy, Tim. I don't know what else to say, but in a good way because they don't order every day sometimes.

So it's almost like the way you can file a hospital business, Tim. Sometimes they buy big boluses at once. And so we're going to have to just monitor that. So the good news is we have customers, Tim, that we didn't even know about.

So we're excited, like I said. And we'll take this problem every day, Tim. Every day of the week, we'll take this problem. We got to learn to get more input through, but we're pretty excited about it.

There's a new channel emerging for us.

Tim Lugo -- William Blair & Company -- Analyst

It's kind of the power of a large market. I understand. I was some of the other sectors as well. And I guess drilling down a little bit more on the access, and maybe you talked about this with Oren's question, but we're approaching kind of the contracting season for commercial payers when we tend to see announcements.

Is this something you're actively pursuing? And should we expect kind of a 2022, just something to watch out for in the contracting season as they approach?

Al Altomari -- Chairman and Chief Executive Officer

Yes. Tim, great question. The answer is it's the bidding season, yes. We're in the hot and heavy of it.

Yes, also that has to do with some of the Medicaid business we've been winning because, in fact, we're winning early contracts for next year. So we're right in the seat of the cycle, yes. So I think you're going to start hearing us reaffirm some of the coverage we have or, hopefully, keep adding to it. So our strategy is to build that book of business we've got.

And hopefully, we'll have more good news for you next quarter and then supplement it with that all other channel, if you will, the nonretail channel. So we're scrappy, Tim. We're fine. But yes, we're in the bidding where Dennis is signing off on a lot of bids on over right now, yes.

Tim Lugo -- William Blair & Company -- Analyst

Great. Thanks for the update. Thank you.

Operator

Our next question's coming from the line of Leland Gershell with Oppenheimer. Your line is open.

Leland Gershell -- Oppenheimer & Co. Inc. -- Analyst

Hey, good afternoon, guys. Thanks for taking my questions, and thank you for the very informative update. I'm glad to see the opex is under control as you continue to grow the product. Wanted to ask a few questions.

First, in terms of sampling initiatives, I think, Al, on the last call, you mentioned that those may be easing as we get through the second quarter. Perhaps those have continued more than we had expected based perhaps on greater physician demand. Wanted to -- or interest, what to kind of ask what your kind of current sampling looks like and how that may wind down as we go through the rest of the year. Also wanted to ask about the types of patients who are coming on Twirla.

If you could kind of give us a rough breakdown of patients who've been on the legacy patch versus those who are new to contraception or perhaps those who've been in oral and are switching and any directional trends you may be seeing there as Twirla has been on the market. And then finally, as more and more women out there are becoming aware of the product and are coming to see their doctors. And with COVID easing a bit more and more patients are going to see their doctors, are asking about it. You have that, and you also have doctors who may be familiar with the old patch and may have some reservations and may not be used to the new patch.

So wanted to ask what opportunity does that create for Agile to kind of provide a way for docs to be more informed about Twirla and its differentiation and perhaps have less reservation about prescribing it. Thanks.

Al Altomari -- Chairman and Chief Executive Officer

Great. If there's a run-on sentence, that's a run-on question. You got four parts. Let me see if I could.

No, no, I didn't get it all. I'm going to go to number three, which I think is the users. Like you said what I think was who's -- who are we seeing in the marketplace? It's really interesting. Number one, about 50% of all our prescriptions are new to contraception, meaning they're a new user, which is about what we thought but trending on the higher side of what we thought.

So the doctors are using our product. And that's what we ask is by our reps. We said, "Hey, why don't you give a trial in a new patient in your waiting room?" Because we think it's a little bit less compensation, if you will. Now I've also got the question do we target Xulane or the other patch or Xulane user.

The answer is absolutely yes. We do. Related to that, so we go to doctors that have already feel comfortable with patches. So we target their offices, but we don't say take them off the other patch, if you will.

So it's related to the way we target doctors, and I'll get to your fourth question, and then I'll work backwards again. So 50% are new users. 25% have come off a pill, not a patch. So about 75% to almost 80%, Leland, have been either new to method or new to patch.

And then the remaining percentage are scattered around ring users, patch users. So that's really great. But to your other question about -- if I was saying what surprised me so far, the -- it's slow to get a doctor to write a patch of any kind if they've never written one before. So a lot of -- I think we've talked before, Leland, a lot of the young doctors are a little bit reticent on using patches.

So our low-hanging fruit is on patch users, and there's a lot of them. So the other ones, we're not giving up on. But we're really -- in effect, it's going to take us more time. So samples, it was just one of your other question.

I'll let Dennis comment about opex. But samples continue to be critically important. What we're finding in general, we're going -- there's still a significant demand as COVID opened up offices, Leland. I mean, for the first time, our reps are regularly getting into sample closet for the first time.

And we just sent -- we want them to hone those clouds. They'll be shy. So I don't think sampling demand is kind of at a kind of steady-state yet. So we did our first loading of the channel, if you will, in a good way, loading, not bad loading, getting them out deployed.

But it's still a rougher, a lot of time on Zoom calls, and it's hard to judge a doctor. So what we're finding from the field, and I'm meeting with our regional managers this week, is that there's new demand for samples is just in general. So I think we're still using the momentum and you want to mention that opex control seems very nice to you. So --

Dennis Reilly -- Chief Financial Officer

Yeah. We do. We've been, you know, pretty guarded. We really have tightened down on our opex.

And going forward, as I said, we expect it to be within $1 million or so of what we had this quarter. And that's really the way we're managing it.

Al Altomari -- Chairman and Chief Executive Officer

Yeah. And so we appreciate, Leland, because I mean, we try to make good bets, if you will. I mean, we've bet on what we think works. And everything else, it's just got to be secondary at this point.

I mean, we have a responsibility to our shareholders to keep our heads about them. But I think based on the performance we're seeing in the brand's growth, I feel like we're making good bets. And Dennis keeps me honest, as you know. So we're putting the bets in the right places.

Leland Gershell -- Oppenheimer & Co. Inc. -- Analyst

Excellent. Terrific. Thank you very much.

Al Altomari -- Chairman and Chief Executive Officer

Did I get them all? Did I get it all, Leland?

Leland Gershell -- Oppenheimer & Co. Inc. -- Analyst

You got them all. Thank you so much.

Operator

Our next question coming from the line of Daniel Busby with RBC Capital Markets. Your line is open.

Daniel Busby -- RBC Capital Markets -- Analyst

Good afternoon, guys. I've got a couple of questions. First, I think I heard you reaffirm your 5% to 8% peak market share target earlier in the call. Can you talk a little bit more about the factors that give you that confidence in light of some of the competitive developments we've seen this year with Amneal launching a generic Xulane product and now Viatris talking about introducing a low-dose version of Xulane?

Al Altomari -- Chairman and Chief Executive Officer

Yes. I mean, you -- I have to tell you, you were one of the first ones that kind of predicted this, and here's the gold insight. Number one, since the second patch generic came out, there haven't -- our shares grown. They've taken all the share from Xulane.

So that's good for us, and that's what you had originally said in your notes. The second insight you had was really interesting. I don't know if you've looked at it. Right now, in the middle of COVID, the CHC market is rather flat.

The only growth area is patches. It's really interesting. We're outpacing the market. So the patch pie continues to grow.

And so my confidence has to do with patches becoming more mainstream again, which we thought. So you end up being right then. You had this one when you said they weren't going to clip us, and they were more likely going to clip with each other, and that's what we're seeing in the marketplace. So the good news is second patch didn't ding us at all, and it didn't ding the category.

So the category is growing. And we're hoping the category continues to grow as we kind of unlock out of COVID. Even though this category has been generally flat, but it's good. And the other part of my bullishness it has to do with our accessing this that you heard these long conversations about these other channels.

I think as we continue to volition and say, where else is she go on besides CVS? Telemarketing, Planned Parenthood, student health centers, and these state and county organizations, there's a ton of business out there. So that's why we're bullish. It seems like we're just -- I love the growth we posted, but we're not at any means done. So we're just -- still a lot of the market we haven't been in front of.

But that gives me the confidence to kind of reaffirm that. Patches look like people are getting back and go again with them, and it's our job to make them pick a patch. And then I can't comment to the other patch. I mean, I saw what you saw.

It appears it's only going in the clinic. It looks like it's years out. And at this point, if you take a look at the market share of Xulane, Xulane is dropping fast. I mean, the question is how much share will they have left when they launch that.

So I mean, your competitors have a lot of share away from. And like I said, we kept growing. Good questions, though. Thank you.

Daniel Busby -- RBC Capital Markets -- Analyst

Got it. Thanks for the color. And just one follow-up, perhaps for Dennis. I can probably do the math on cash runway.

But you mentioned the $25 million tranche you have potentially available. Can you share anything about the achievability of those targets? And do you expect to be able to access that cash? Or is that still a little bit up in the air?

Dennis Reilly -- Chief Financial Officer

We're sure we get the $31 million right now, and we were able to tap the ATM. On Perceptive, there are targets there. We haven't disclosed them. They're challenging targets for us, but they've been a great partner to us for years now.

And we'll continue the dialogue, and we'll let you know. It's not a slam dunk. We'll get that money from them. But yes, we kind of trust the partnership, and we'll continue with dialogue.

Daniel Busby -- RBC Capital Markets -- Analyst

OK. Got it. Thanks. 

Dennis Reilly -- Chief Financial Officer

Thanks.

Operator

Our next question coming from the line of Naz Rahman with Maxim Group. Your line is open.

Naz Rahman -- Maxim Group, LLC -- Analyst

Hey, guys, thanks for taking my question. Now that you've seen more demand sales, are you guys seeing the demand script the patients see a $0 co-pay? Or do you find them mostly using the co-pay cards or paying for the product? I have a follow-up question.

Al Altomari -- Chairman and Chief Executive Officer

Yes. It's a tough question. I don't have them all at the top of my head, but a significant amount of patients get us for zero co-pay just on the Affordable Care Act. And so to answer your question, can be all around the board.

The Medicaid patient, we're in a strong contracting position with them. Some places, it could be $2 or $5. And it's really virtually zero. So on those books of business, the patient is really paying virtually none, nothing.

So that's really good for the patients and it's really good for us. Our co-pay business -- I mean, our co-pay card, I don't believe, are run away and any means. We use it on a really situational basis. That's something Dennis keeps an eye on.

That's a lot of -- release a lot of cash in the space to the patient. So we haven't over-relied on our co-pay cards. I mean, this is a real healthy brand without them, knock on wood. But it's there in case we need it.

It's meant to be -- we don't just hope it's sound great, but we don't want the co-pay cards -- we want the co-pay cards to be a bridge to a better outcome for the patient, either navigating her view on co-pay or us getting on events on formulary. We just can't see us running a long-term business on the back of co-pays. I think they're very needed as a situational basis, if you will. And that's the way we use it, very strategically.

But we're pleased that our overall growth in that is pretty good right now. We haven't over relied on them, knock on wood. So far, so good. It's a situational bridge for patients or plans, but the bigger idea is get on formulary.

We just -- we, as a company, believe in getting on formulary. We just don't -- we just can't run a business not kind of a good relationship with our payers. So we just are really always at the table with them trying to even get formulary access to get better access.

Naz Rahman -- Maxim Group, LLC -- Analyst

Got it. And the patients that are getting Twirla, at this point, how many cycles of Twirla scripts are they getting for? Is it still like 1.3 to 1.4x months? Or are you seeing patients get longer prescriptions?

Al Altomari -- Chairman and Chief Executive Officer

No. You know, it's pretty steady. You'll see in those graphs that we provided when you get a chance to look at some of the screen shots. As you see TRx if you look at the ratio, it's the 1.3.

Some weeks, it's 1.32, but it's hovering. We expect some plans in the mail-order business, they're allowed to get more, if you will, cycles at a time. So if anything, it should eke up a little bit, but we're not -- it's pretty steady right now. But I'd leave it at that until we talk the otherwise.

And some of the negotiations we're in, they're going to be let doctors write longer prescriptions. And that'd be great for us, by the way, we'll take it. But for right now, it's really steady at around 1.3, which is -- let me just -- what that means is for those that are kind of new to us is while -- that means every TRx is worth 30% more to us. So rather than -- so the value of the patient on that first script is obviously a lot more.

It really ends up being a big number. You could see on the curve. It doesn't take much to get the curves spending upwards pretty quickly because of that and new refills and -- it's a good business. We're just getting at a point.

We're going to have a base of refills. We've got some new business coming in, and we get that 1.3 multiplier, and it's starting to become a real healthy little business to run. So we're excited. So our job is getting new prescriptions.

The more we get, we get a multiplier on them.

Naz Rahman -- Maxim Group, LLC -- Analyst

Got it. And the final question is some of the larger nonretail orders you saw in 2Q. Is there like a potential to sign a recurring contract with those purchasers? Or would they just have to kind of go through wholesalers?

Al Altomari -- Chairman and Chief Executive Officer

No. That is a fabulous question. The answer is we'd love to sign an agreement because it's not -- we're at the whims of a purchasing manager that like -- we'd like to be in a long-term better relationships in that. It's not just here-and-there purchase.

So the answer to your question, we would love to do that. That goes with Planned Parenthoods, that goes with student health centers, that goes with all these clinics. We just have a bias to get on the contract. So we just like that.

For now, it's a little bit more lumpy. But just from our own planning, it keeps us better organized if we can get them. And for right now, they can buy the product to the wholesalers, which is great. So we could see the movement.

There's a fair number of hospitals around the country to buy our product, but that was the most significant one. They're starting to get doctors and treating patients and university centers -- settings. And so this kind of like nonretail business is starting to get interesting enough. But we don't want to chase it.

We want to develop a strategy for opening this channel in a big way. But for right now, we'll take the business. We'll take the sale. That was a nice book of business.

As I told Tim when he asked that question is that wasn't about as much as we sold in the retail channel that month. So one order was great because this was a good day. So yes, we would like to get on the contract but going to develop a strategic relationship with them.

Naz Rahman -- Maxim Group, LLC -- Analyst

Got it. Thanks for taking my questions.

Al Altomari -- Chairman and Chief Executive Officer

My pleasure. Thank you.

Operator

Thank you. There are no further questions at this time. I will now turn the call back over to Al Altomari.

Al Altomari -- Chairman and Chief Executive Officer

Well, thank you, operator, and thank you for listening. I'd like to close today by saying that we believe we have the building blocks in place for continued growth and remain on track to achieve our near-term goal, which is establishing Twirla in this multibillion-dollar hormonal contraceptive market. And I hope you can hear some of the excitement in our voices that we believe we're just on the way on that journey. Number one, we have an approved product that's growing and all the major performance metrics in a valuable market.

And we believe it's only scratched the surface. And we're unleashing very -- in a very responsible way, DTC advertising and that we're further developing some of these channels you all ask me about. But in the meantime, our bread and butter is in the retail market, and we need to continue to get doctors aware and comfortable writing our products, in particular those that are already comfortable writing patches. While we're happy with the growth to date, we believe there's a lot more on the table.

So hopefully, as we talk to in the future, you'll hear more about how these programs are working and more about our growth. I'd like to thank everybody for joining us on the call. Be well, as always, and we look forward to providing you updates in the future on the advancement of our business on our next earnings call. And hopefully, see each other, hopefully, face to face in not-too-near future.

So thank you, everybody. Be well and be safe.

Operator

[Operator signoff]

Duration: 46 minutes

Call participants:

Matt Riley -- Head of Investor Relations

Al Altomari -- Chairman and Chief Executive Officer

Dennis Reilly -- Chief Financial Officer

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

Tim Lugo -- William Blair & Company -- Analyst

Leland Gershell -- Oppenheimer & Co. Inc. -- Analyst

Daniel Busby -- RBC Capital Markets -- Analyst

Naz Rahman -- Maxim Group, LLC -- Analyst

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