Agile Therapeutics (AGRX) Q4 2021 Earnings Call Transcript

Agile Therapeutics (AGRX -0.61%)
Q4 2021 Earnings Call
Mar 30, 2022, 4:30 p.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Good afternoon, and welcome to the Agile Therapeutics fourth quarter and full year 2021 financial results conference call. [Operator instructions] Please note today's event is being recorded. I would now like to turn the conference over to Matt Riley, head of investor relations.

Matt Riley -- Head of Investor Relations

Hello, everyone, and welcome to today's conference call to discuss our fourth quarter and full year 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, our outlook for the first quarter of 2022, management's expectations for our future financial and operational performance, our business strategy and our assessment of the combined hormonal contraceptive market, 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 the website for 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.

I will now turn the call over to Dennis.

Dennis Reilly -- Chief Financial Officer

Thank you, Matt, and thank you all for joining us on our call this afternoon. I will review the key areas of our financial performance for fourth quarter and full year 2021, and then discuss our cash position and plans to finance the company. I will then hand the call over to Al for an update on our business plan for 2022. Overall, 2021 was our first full year of commercialization, and we saw steady growth in Twirla across a number of metrics in both demand and revenue as we have sought to establish Twirla in the market.

Beginning with revenue, we realized net product sales revenue of $1.5 billion in the fourth quarter, as compared to $1.3 million in the third quarter of 2021. Our net revenue for the fourth quarter was at the high end of the range we guided in January and brings us to $4.1 million of revenue for the full year 2021. Our cost of product revenue for Q4 2021 was $5.7 million, which included a $4.5 million inventory obsolescence charge for product not expected to be sold prior to its shelf-life date, which is 12 months prior to expiry. Full year cost of product revenue was $10.7 million, including $5.9 million of inventory obsolescence reserves.

While we believe we have managed our inventory down to a level that more closely tracks the demand, we will continue to closely monitor this area and take the appropriate steps when necessary. Our operating expenses were $18.2 million in Q4 2021 versus $17.2 million in the same period a year ago. And again, were within our guidance of $17.5 million to $19.5 million communicated in January. Full year operating expenses were $64.4 million compared to $49.5 million in 2020.

The overall increase is primarily related to our spend in support of building and promoting our total brand in order to establish it in the marketplace through our direct to consumer, or DTC, marketing and our sales force, which was in place for the full year of 2021. We remain focused on maintaining our disciplined spending approach and making the right investments to encourage strategic growth, while implementing what we believe to be impactful partnerships and agreements. Al will provide more detail on our 2022 business plan in a moment. We anticipate our quarterly spending for the first quarter of 2022 to decrease slightly and to be in the range of $16 million to $18 million, while maintaining spend on product sample batches and brand marketing.

This reflects our plan to reduce spending in other parts of our operations in order to maximize and focus our investments on the DTC campaign that Al will describe. We closed out the fourth quarter 2021 with a net loss of $23.4 million or $0.20 per share compared to the net loss of $17.6 million or $0.20 per share for the comparable period in 2020. The full year net loss was $74.9 million or $0.77 per share for 2021 compared to $51.9 million or $0.61 per share in 2020. At December 31, 2021, lead cash, cash equivalents of $19.1 million as compared to $14.7 million of cash and cash equivalents at the end of the third quarter of 2021.

This increase on hand related to a public offering completed in the fourth quarter, netting $21.1 million, offset by our working capital during the quarter. Financing update. We continue to explore financing options to support the growth of Twirla. Our plan to finance the company is focused on three parts.

One, working down our debt facility with Perceptive Advisors. Two, regaining compliance with the NASDAQ listing requirements. And three, raising additional capital. We currently have no plans to further leverage the company, and therefore, will not add additional funds under our debt facility.

In January of '22, we retired $5 million in debt from Perceptive Advisors, reducing our debt to $15 million, in exchange for relief on certain of our financial covenants. And in the second quarter, we plan to make another payment of $5 million in principle in exchange for further release. In March 2022, we closed a $4.85 million registered direct offering of preferred stock with a single healthcare-focused institutional investor. In addition, we anticipate an additional $4.7 million in funding in the coming weeks from the sale of New Jersey net operating losses.

As we have previously reported, we were notified by NASDAQ that we are out of compliance with their minimum bid requirement, which requires our stock to trade consistently over $1, and that we have until May 9, 2022, to regain compliance. While we might be able to secure an additional six months to regain compliance, we are working to regain compliance by NASDAQ's original target date. We believe that increasing the price of our common stock at this time would allow us to regain compliance with NASDAQ and better position us for further fundraising, thereby helping to derisk the company. To that purpose, we have called a special meeting of stockholders on April 21, 2022, to seek approval for a reverse stock split.

We will require additional capital to achieve our goal of being cash flow positive. We anticipate that as our sales growth continues to gather momentum, our optics on revenue will become clearer and allow us to better define the path and timeline to positive cash flow. We will continue to evaluate all options available to us to finance the company, including further equity offerings and various business development and partnership opportunities to accelerate our path to profitability. We believe we ended 2021 with momentum behind Twirla and a focused, targeted plan to build on that momentum in 2022, which Al will now describe for you.

Al, over to you.

Al Altomari -- Chairman and Chief Executive Officer

Great. Thank you, Dennis, and thank you, Matt. I thank everyone for joining us today and continuing to follow our story at Agile. Dennis referenced our belief that in 2021, we began to build momentum for Twirla.

I want to spend my time today providing further context and highlighting our plan to build on that progress throughout 2022. In the first half of 2021, we laid the foundation for Twirla by deploying our sales force and sampling program to create awareness with healthcare providers. Beginning in the third quarter of 2021, we started to see consistent and meaningful demand growth. From the end of the third quarter to the end of the fourth quarter in 2021, we saw the following: Total cycle expense grew 35% to 12,849.

Total prescriptions, or TRx, grew 33% to 9,837. New prescriptions, or NRxs, grew 22% to 4,381. Refills grew 47% to 5,456 and total prescribers grew 40% to 4,640 prescribers. Another quarter of double-digit growth is encouraging, and we believe there are many signs of a healthy growing brand, for instance, the level of refills.

Now, our objective is to continue this trend into '22 by executing on our business plan. We believe we designed a plan that could allow us to continue to build on this team and the Twirla growth while assuming no changes in the reimbursement for Affordable Care Act agreement. We believe that any positive change in reimbursement and the ACA could have potential upside in the growth of Twirla in 2022. This plan has three primary components that we think will contribute to reaching our objectives.

First, our partnership with Afaxys. In January 2022, we launched our co-promotion partnership with Afaxys through their group purchasing organization, which primarily provides services to the non-retail channel. And Afaxys has the potential to access to over 25,000 accounts including colleges and university student health centers and Planned Parenthoods. We have previously stated that access to Planned Parenthood was a priority for Agile and Twirla.

And we believe the partnership with Afaxys gets us there in an efficient targeted way. The growth graph we just showed and have shown to date reflects the traditional retail channel only. Generally, retail sales are units dispensed to the end user at pharmacy or through mail order telemedicine and non-retail sales are units sold or dispensed to public health clinics or institutions. In the second quarter of 2021, a single state purchased 2,200 non-retail units, which showed us the potential impact that this non-retail channel can have on our business.

We believe that Afaxys and sales force can deliver on the non-retail growth, and we expect to see contributions from that channel ramp throughout 2022. The second component of our business plan is to focus on California, the largest U.S. market for contraceptives through the preferred position on Medi-Cal formulary. On last quarter's call, we announced that Medi-Cal, the largest Medicaid program in the United States added Twirla to the preferred drug list.

At October 1, 2021, the preferred drug placement for Medi-Cal applied to those beneficiaries who receive their pharmacy benefits through the fee-for-service plans and related programs with the remainder of the beneficiaries gaining access as of January 1, 2022. This is significant for Agile and Twirla because Medi-Cal provides healthcare to approximately 15 million beneficiaries and a third of the existing patch market comes from Medicaid. Because Twirla is now active on the Medi-Cal formulary, driving further awareness and adoption in California as a priority, which leads us to the third component of our business plan. We are excited to announce a brand-new Twirla direct-to-consumer commercial that will air on connected TV, also known as CTV, and is set to launch in early April.

The tag line for this commercial is Patch and Play. And the objective of this spot is simple, we want patients to ask for doctors about Twirla. For those of you who are unfamiliar with CTV, it refers to Internet-connected video streaming across smart TVs, desktops, mobile and tablet which has allowed us to buy exposure to a specific target viewer wherever they are watching streaming content rather than buying space on particularly TV shows or networks. We are deploying the commercial with a highly targeted, efficient focus on women in our target age demographic 18 to 24 in the big five states of California, Texas, Florida, Illinois and New York.

These states have large markets for contraception and potentially strong commercial coverage for Twirla. By targeting these five states, we believe we're able to reach between 41% and 45% of our key customer base in this country for approximately 5.7 million women, ages 18 to 24. For those of you interested in viewing of the -- an 18- or 24-year-old woman, it will be made available on Twirla's YouTube channel and in the future on agiletherapeutics.com. We've been adamant that traditional cable TV is an inefficient mass advertising approach that does not land directly on our target Twirla's audience.

Moreover, we believe Cable TV is an expensive strategy that is currently not a responsible way to utilize our valuable consumer marketing dollars. We think CTV is a highly targeted and cost-effective way for us to reach nearly half of our target market. CTV is the next phase of our DTC approach to increase Twirla awareness and encourage Twirla adoption. This complements the digital DTC programs we announced on the third quarter call of 2021, and it's worth noting we are seeing territories or there are no Twirla sales representatives, producing prescriptions.

We believe this signals that current DTC efforts are gaining traction and producing results. This is the plan we have in place for 2022, and our focus is on building upon the momentum we established throughout 2021. The Afaxys partnership and new Medi-Cal program development have effectively come online in January 2022, and we expect that the contribution to our growth to ramp well into 2022. The Twirla's CTV commercial will air early in April 2022, and we believe will contribute to the demand growth we're seeing.

Even without these components being fully deployed in the first quarter, we saw the brand's momentum continue, as you will see on the graph here that shows the four-week rolling average for the fourth quarter of 2021 and the first quarter of 2022. This is why we have confidence that as our key initiatives for 2022 begin to contribute for our Twirla results, our business plan can be successful. Before we get into Q&A, I want to touch on the federal activities surrounding the enforcement of the Affordable Care Act or the ACA. We believe the high interest level regarding contraceptive access and the implementation of the ACA requirements across advocacy groups, members of Congress and the Senate Congressional and Senate Committee Chairs is an effort to support a basic sound policy.

Women and their providers are the best determinants of contraceptive care. As a result of that interest in January 2022, U.S. Departments of labor, health and human services and treasury updated guidelines, reinforcing the requirements for most commercial insurers and their PBMs to cover all FDA-approved contraceptives as no cost if deemed medically necessary by the provider.  They specifically indicated that the plans may not require patients to try and fail multiple options who require patients to try methods other than the one recommended.

In addition, health resources services, or also known HRSA, updated their women's preventive service line for plan years beginning in 2023 to include coverage of all FDA-approved granted or clear contraceptives be made available as part of contraceptive care. These updated guidelines are potentially significant. We will continue to engage with plans as they begin to evaluate their practices to comply with the ACA requirements. We will continue to monitor developments in this area very closely.

We think we have a well-designed plan for 2022. And if we continue to execute consistently, we can achieve meaningful progress in building our business in 2022. We'd like to give a chance for our covering analysts to take this opportunity to ask any questions. Operator, you may now open the line for Q&A.

Questions & Answers:

Operator

[Operator instructions] Your first question comes from the line of Leland Gershell.

Leland Gershell -- Oppenheimer and Company -- Analyst

Hi. Congratulations on the progress. Thanks for taking my question. A couple of questions.

First, just as you expand DTC campaign, just wanted to ask if you have any metrics or kind of feedback on the effectiveness on the different aspects if you have your DTC initiatives. And also, with respect to the enforcement under the ACA, just wanted to ask if you've seen any tangible signs of either enforcement or that of enforcements, how that may have positively impacted Twirla at this point? Thank you.

Al Altomari -- Chairman and Chief Executive Officer

Yes. Thanks, Leland. So let's do it in order, your first question about metrics or signs of DTC. So we're pretty excited about what we're seeing so far.

I mentioned in my talk that, clearly, DTC works better when we have a sales representative in front of a doctor while we're deploying DTC. It's clear that that's the best outcome. But we have kind of an experiment we look at where we said, well, where don't we have sales representatives. We have ZIP codes, and in some case, states, where we don't have sales representatives that we set off deploy DTC and see if we can move the needle, and we can.

So we know DTC is strong enough to work on its own. We know it's better when it works in parallel with our sales force. So that's an important metric for us. So we gave us confidence to say, OK, let's take it to the next level because our DTC has generally been.

Amy Welsh, our Head of Marketing, I'm not sure she would agree if I called it print advertising, but it's print, it's flat media. It's for the most part, digital print. And it works really hard, but we think we could take it to the next level, and that's why we're excited about the CTV. It's a video.

It's a video. We don't want to call it a commercial, but it's a video. Hopefully, you'll get a -- that's not only a good laugh at it because it shows women interacting with other women because we know that the No. 1, and if you will, advocate for a brand is a women's girlfriends.

That's why we do the influencer programs we do. So we want to take advantage of that dynamic. So then the other metric we look at is to complete the answer is we look at when we run media then we light up our websites and we -- either we get traffic, and we do. So we see a pretty quick response.

So we know it works. We know it can work harder. And then, what we want to do is be smart with it, as I mentioned in the talk, because we know we're throwing a DTC into some States where we don't have great coverage. So we don't have enough of a sales footprint.

So we said, why do we deploy we our spending? Let's go heavier in areas that the pumps already primed, if you will. So with the sales force footprint, reimbursement covers and obviously, high density. So that's why we picked the big five. So that's what we looked at Leland, to kind of get to the next level.

The second question you asked is of the ACA. I wish I could tell you that we're seeing a lot of changes in behavior. We're seeing a lot of interest, a lot of activity. We've got an inbound calls about our coverage.

And so, I think that the issue has come -- to at least to the forefront, of the insurance companies, the PBM's mind. But now it's got to get to the next level that we've got to change behavior. And so, we're starting to see that work a little bit better. So we get a better conversion of our scripts.

I don't think it's a coincidence that we had our best month ever in put my neck on the line a little bit. We saw the highest growth we've seen in this brand in March and we're not quite over yet. So we see -- so we think the market is evolving, Leland, probably not as fast as I want. So we said let's just develop a business plan that says status quo.

We've got to play the cards we're dealt, and that's what we're doing. And we're just -- I hope that I could say to you at the end of the first quarter that we'd put up three monster quarters in a row where we've grown our top units well over 30%. To keep compounding 30% on 30% on 30% on the cycles going out the back door, it's just, I think, a great testimony to the brands that are the people in our company. So we're optimistic and we just see it as an upside, Leland.

We think basically it's guidelines, HRSA -- and we think what's going on in DTC and the awareness, we still think our better days are ahead of us but doesn't mean it's going doom right now. We're motoring right now. And we've officially dropped the flag and so we've got momentum on this brand. We don't see growth.

We see real momentum now. So we're pleased but we want to do more. And I think these initiatives we did hopefully accelerate that. But right now, we're pleased.

And so, on the ACA side, Leland, the scripts go through a little bit easier. We're seeing some upside. We think there's less friction, if you will, in the marketplace, but not enough just yet. So we think it's an evolving story, but we're ready.

We'll keep working hard and with the cards we're dealt. In the meantime, we see that as a big upside for later in '22 and then hopefully into '23. So if you like the 30%, 35% growth, but that get cleaned up and where we really rock. Sorry, two really important questions, so.?

Leland Gershell -- Oppenheimer and Company -- Analyst

Not at all. Very helpful. Thanks so much, Al.

Operator

Your next question comes from the line of Oren Livnat with H.C. Wainwright.

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

Hi, guys. Thanks for taking the question. And a nice growth curve you got going. I hope you can keep it up.

Regarding these, I guess, key focus areas for 2022 in terms of the most exciting growth opportunities you've called out being a Medi-Cal and the Afaxys, so I was just hoping, if possible, you can just help me better understand, I guess, sort of the size of those pies, potentially. I think you said that one-third of all patches go through Medicaid, I guess that's overall Medicaid. Are you able to give us a sense of what sort of CHC volume, prescription volume, patch, maybe specific volume goes through Medi-Cal specifically? And on the Afaxys front, I guess I don't really have a great -- I mean, I know that's not -- it doesn't show up in IQVIA, right? That's the volume. I can't track.

Are you able to give us any sense of sort of how big the volume of their overall contraceptive portfolio businesses, just to have kind of a sense of what kind of scale potential I mean if this was within those channels? And I have a follow-up or two.

Al Altomari -- Chairman and Chief Executive Officer

Super questions, Oren. So let's talk on Medi-Cal first. California is roughly in line with the donation. So in general, about a third of the current patch volume in this country runs through the Medicaid books.

And we see that in California. So I don't have the exact numbers in front of me, but it's a huge potential market for us running through that Medicaid book. It's meaningful, it can move the national needle itself. What's exciting for me is that, generally, you put reps in front of doctors, and you say, well, it takes multiple times that kind of get doctors the right product Oren.

Like the first week of January, we sold scripts -- not many, but we sold California scripts and is growing at a pretty nice clip. So I think of market share sometimes -- our market share in Medi-Cal in California might be at or beyond the national market share we have. So we're already doing as well in Medicaid -- in Medi-Cal, I'm sorry, after two months that we took us the better part of '21. That shows you how excited the doctors are in California.

So I wish I had at top of my head, the size of the market. But patches are a big piece of business there. It's a significant amount of volume in California. It's meaningful, they move the national needle.

So the other thing with Afaxys, they have their own brands. So they have a lot of generic pills they sell. So they have their own products. They obviously don't have a patch and they don't have other forms of contraception like the ring.

So they kind of work with partners to complete their offering, if you will. And you're right, their volume in -- generally, the Planned Parenthood volumes don't run through IQVIA or Symphony because you get the data for these. Generally, everything runs through there, but these don't. They don't report to IQVIA and a lot of student health centers don't either.

So I mean, nationally, we think there's hundreds of thousands of potential cycles up for grabs and patch volumes, hundreds of thousands. So we'd like to take a piece of that pie, right? So if we take a reasonable slice of that pie, based on what I just reported, like in the quarter it was -- we said we were proud of the 12,000 cycles we did in the fourth quarter. That's less than 4% or 5% of Afaxys' patch volume. So imagine I can get a decent slice of the Afaxys business or it's meaningful.

So there's hundreds of thousands of patch volumes that's up for grab in the Afaxys current book. And we want to get a piece of it. So now it's going to take us some time. These are contracts.

It's not like you walk into a doctor's office and they write a script for you. This takes us time to get under contract, and they have to purchase through the GPO. So we're starting to see a smidgen, small amount, not very meaningful to show up in the first couple of weeks they've been in business. We think this is going to build over time and we think probably in the next couple of quarters, more than likely the second and third, it will be more meaningful that we might report it separately to you.

But for right now, we're just going to lay the groundwork for that. So I think Afaxys is going to contribute more, I think, to the top line of Agile, I'd say, in the second half of the year. I think Medi-Cal will start paying -- getting some scripts that already getting now, and we'd expect that's already contributing. But I think that's why our March data is starting to light off.

That's why you -- thank you for the comment about the curve. We like March a lot. We'd like to think -- if you see that March, it really looks good because we're having a really great March. We'd like to see that to continue, obviously.

But thank you for noticing it. So it's important to us. And I think that's -- we want to keep going.

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

All right. And if I may, just you talked about targeting 18 to 24-year-olds, and you also mentioned taking PAT share. And so, I'm not sure these are the same pools of patients. I just want to understand your targeting and how you've sort of chosen -- obviously, the oral contraceptive market is the vast majority of the overall volume and switches from there or new starts, it represents a bigger potential pie overall for you long term.

So is that why you're targeting younger patients because they're earlier on the journey? Or is there some other profile that you're targeting?

Al Altomari -- Chairman and Chief Executive Officer

No, I think you answered your own question. I mean, I think in general, I think we mentioned before that about 50% of our business comes from a woman who probably more than likely as this is her first supplement journey or maybe she's been on pill before, roughly 75% to 80% of our business comes either from a new start or somebody that's been on pills. So we think she's relatively early in our journey, as we probably all know is that women can start before 18 and oftentimes do. But we think the 18 to 24 kind of is that sweet spot whereas more than likely she's either tried a pill or more than likely haven't been that happy with a pill and is looking for something different, and isn't ready to sign up for tubal ligation or a ring or potentially an IUD.

So we think it's a sweet spot. It also happens to be, Oren -- like there's some science to buy in media. It actually is a real clean media buy. So we think they're very engaged with their media.

So we think they're very responsive. And at that point, they're making a lot of decisions for themselves about what brands they go on. So we think it's a really smart buy of media, but we also think it lines up with what we're seeing in who's using our product right now. So then you're right, there's not a case to be made, we should go a little older and maybe be a little younger, but we've got to walk before we run a little bit.

We'll put our media where we think we get the best bang for the buck.

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

OK. And if I may, I appreciate you're not hiding from the liquidity situation. You're not alone. Obviously, tough launching a single drug as a small company, and you're not the only one even in the women's health business that is facing those challenges.

So just strategically, given there are several companies in this space in similar situation, how much thought do you lend to strategic alternatives, whether it's merger, buying, selling -- some way to get some leverage in this space so that they could tell you where one plus one equals three.

Al Altomari -- Chairman and Chief Executive Officer

Yes. I mean, it's probably sort of running our business. It's the second thought that hits my mind. I think all of us that have a one-product company with deploying the sales force should look for ways to make that more efficient.

We are really open to collaborating with other women's healthcare companies. We're open to finding another -- if we could find another product for our bag. If we can help somebody else. I think we all should be looking for ways to leverage our infrastructure costs.

So I think it's a really important effort that we take really serious. So we're in a lot of conversations. We try real hard. Obviously, we don't have anything to show you, but I think it is top of mind for me.

I do. I think if there's two things, if we can get another product in our bag, it makes our math clearly a lot better. But also, I leave a lot of open gaps on the math. There's only so many sales reps that we can afford.

We put them where we think that's the best bang for our buck, but if somebody wants to put our product in their bag, and to do it more efficiently enough, we're open for that, too. So basically, in your comments about the capital market, we all should be thinking of that, Oren. So it's certainly top of mind. Unfortunately, it's a relatively small space.

There is not a ton of opportunities. But we all -- so just we don't have 50 choices, if you will. So we've got to work harder at it. And so, we're in good conversations.

But for right now, that's all I could tell you that I'm just being straight.

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

All right. Well thanks for coordination all the questions.

Operator

And I'd like to turn the call over to Al Altomari for any closing remarks.

Al Altomari -- Chairman and Chief Executive Officer

No. Thank you, operator. And thank you, Matt and Dennis, for their help. Dennis described that we're trying to -- and Oren just touched on it, look at our -- managing our quarterly operating expenses and working to regain compliance with NASDAQ.

Then we have to finance the company. So we're not -- we want to lay out our plans as Dennis did and let you know exactly what's in our mind. We think we're using our marketing spend in a very wise way, focusing on large markets with potential good coverage for Twirla, a strong commercial coverage. In summary, we believe this brand is demonstrating steady growth and steady momentum.

So it's beyond -- it's now predictable. So it's not now a surprise that we had one or two good quarters, and we now strongly got our three quarters, hopefully, to go into the first quarter, strong growth. And we think our business plan that we're working with is designed to help Twirla even more in '22. But in the meantime, you can keep an eye out for the CTV ad we mentioned.

We'll put out an announcement shortly about it. And also, I want to let you know that the company has gone through a very major conference. It's the American College of Obstetrics and Gynecology or called ACOG. It's in May.

So we're going to have a strong footprint there, both on the commercial side and also on the scientific side, so more to come there. So anybody would like to know more about that, we'll be putting out some information about that. I think the other thing I want to mention about ACOG, but I think it's important for you to know is that sometimes you just get lucky. So ACOG this year is our key market, ACOG in California, in San Diego.

So we're thrilled that we put our major presence out and our foot forward in the California market in such a critical time. So thank you for joining us, and we look forward to updating you as we go through to 2022. And thanks for following our story, and thanks for your interest in the company. So we appreciate it.

Operator

[Operator signoff]

Duration: 38 minutes

Call participants:

Matt Riley -- Head of Investor Relations

Dennis Reilly -- Chief Financial Officer

Al Altomari -- Chairman and Chief Executive Officer

Leland Gershell -- Oppenheimer and Company -- Analyst

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

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