Egalet's (EGLT) CEO Bob Radie on Q3 2017 Results - Earnings Call Transcript

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About: Egalet Ltd. (EGLT)
by: SA Transcripts

Egalet Ltd. (OTC:EGLT) Q3 2017 Earnings Conference Call November 8, 2017 4:30 PM ET

Executives

Blair Clark-Schoeb - SVP, Communications

Bob Radie - President & CEO

Stan Musial - CFO

Analysts

Jason Butler - JMP Securities

Brandon Folkes - Cantor Fitzgerald

Operator

Good morning, ladies and gentlemen and welcome to the Egalet 2017 Third Quarter Earnings Conference Call. Now all participants are in listen-only mode. [Operator Instructions] After managements' remarks, there will be an opportunity to ask questions. [Operator Instructions] As a reminder, today's conference call is being recorded.

I'd like to turn the conference over to Ms. Blair Clark-Schoeb, Senior Vice President of Communications. Please go ahead ma'am.

Blair Clark-Schoeb

Thanks, Cherie. Thank you all for joining us to discuss our third quarter financial results. If you have not already received an earnings press release from this morning, you can find it on our website at egalet.com under the Investors tab.

Leading the call today will be Bob Radie, our President and CEO; who is joined by Stan Musial, our Chief Financial Officer. Also in the room is Mark Strobeck, our Chief Operating Officer; and Pat Shea, our Chief Commercial Officer.

During this call, management will make projections and other forward-looking remarks, regarding future events and the company's future performance. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties including those noted in this morning's press release and Egalet's filings with the SEC.

Investors, potential investors, and other listeners are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements.

Egalet specifically disclaims any intent or obligation to update these forward-looking statements except as required by law. In addition, we refer you to arymoer.com, oxaydo.com, and sprix.com, for full prescribing information for our approved products.

A telephone replay of the call will be available shortly after completion through Wednesday, November 15th. You can find the dial-in information in today's press release. The archived webcast will be available for six months on our website, egalet.com.

For the benefit of those who may be listening to the replay or the archived webcast, this call is held and recorded on November 8, 2017. Since then, Egalet may have made announcements related to the topics discussed. So please refer to the most recent press releases and SEC filings.

Now, I'll turn the call over to Bob. Bob?

Bob Radie

Thanks, Blair. Good morning everyone, and welcome to our conference call to discuss our third quarter financial results. In the third quarter we focused on driving prescription demand for all three of our products SPRIX Nasal Spray, OXAYDO and ARYMO ER. We grew aggregate prescriptions for our products by 124% over the third quarter of 2016 and 31% over the second quarter of 2017.

Total prescriptions generated for our marketed products were almost 17,000 in the third quarter. This growth was driven by expanding the breadth of our prescriber base, going from approximately 3,200 writers in the second quarter to approximately 3,700 writers in the third quarter with prescribers writing on average more than four prescriptions for each of our products. These results demonstrate our commercial organization as having significant success despite the complicated environment in which we operate. Well part of their efforts to work in hand-in-hand with payers, prescribers and patients to enhance utilization of our products.

For SPRIX in the third quarter we had a record number of prescribers with over 2,100 healthcare providers who wrote almost 9,000 prescriptions representing over 100% over the same period in 2016 and 18% growth over the second quarter of 2017. We have $5.1 million in net revenue for SPRIX in the third quarter.

We’re excited by the growth seen for SPRIX from our newest partners ASCEND Therapeutics. ASCEND begin promotional efforts to its approximately 11,000 target women's healthcare providers in September and initial feedback has been very positive. We continue to hear that ASCEND target welcome our non-narcotic provide that provides opioid level pain relief for moderate to severe short-term pain.

ASCEND generated 187 prescriptions in the first month of promotion. We plan to pursue other partnerships like this to extend our customer reach to other specify areas. SPRIX is a key component of our commercial portfolio, SPRIX nasal spray has profile attractive healthcare providers looking for a product with opioid level NOC that is not in narcotic. In today's environment there is a focus on treatment options that have a lower potential for use.

SPRIX is a key component of our portfolio of commercial products, to maximize the potential for this product we have begun work to optimize the formulation to potentially provide a more attractive product profile for patients. We believe this formulation work will be completed in the first half of 2018 and will require additional clinical studies for registration. We will provide update as this program progresses but it is our intention to bring an improved version SPRIX to the market as quickly as possible.

As the orange book listed patent for SPRIX expires in December 2018, there remained only one generic filer with who we have settled and we get not received any notice of any new end of filers. This formulation efforts to improve these products combined with that factor that there is only filer leads us to believe the remains continued growth potential for this product. We're focused on protecting this exciting product and investing in new and potentially patentable SPRIX for patients. For data we generated strong prescription demand with nearly 1000 healthcare providers prescription data in the third quarter of 2017.

OXAYDO prescription grew 71% over the same period in 2016 and 7% over the second quarter of 2017 with $1.4 million in net revenue for the 2017 third quarter. We continue to explore ways to enhance our OXAYDO's product profile. We submitted a category one labeling supplement in December of 2016 seeking to [enter] stability data to the product label. We've been in discussions with the FDA and based on our dialog we're contemplating a contemporary internasal human abuse potential study to bring the label in line with current FDA ADF guidelines.

We do not expect an action from the FDA on the labeling supplement in the near-term. In addition, we continue to evaluate the best path forward for the 10 and 15 milligram dosage strengths.

Our goal with our proprietary guardian technology product ARYMO ER is to execute a highly focused selling effort to a core group of healthcare providers who have patients who could potentially benefit from these returns extended release morphine. Prescriptions for ARYMO ER more than doubled from approximately 1,100 prescriptions in the second quarter 2017 to approximately 2,600 in the third quarter written by almost 600 providers.

Imperilments to market access are common for ADS gaining formulary for ARYMO ER remains a key objective for us. Our near-term focus has been to overcome access barriers with key commercial plans while we engage in a lengthier processes and discussions to achieve access for government insured patients.

We were pleased to announce on Monday that a large payer will provide coverage for ARYMO ER to its Medicare Part D members. We believe that it is important given that a majority of the patients that are treated with extended-release morphine are government insured and this development came earlier in our launch than we expected. In fact, among the recently launched ADS this is one of the earliest to receive coverage in the Medicare Part D plan.

Since we launched we've improved commercial coverage of ARYMO ER. 64% of commercially insured lives are now in a covered position with respect to ARYMO ER however roughly half of those covered lives still require a step edit or prior authorization.

We plan to continue to work to improve ARYMO ER's formulary position in both commercial and government plans. Total net revenue for ARYMO ER in the third quarter 2017 was $210,000. Total net revenue for all three products in the third quarter of 2017 was $6.7 million representing 41% growth over the same quarter of last year.

While we're focused on growing the demand for our products we're also paying close attention to what is taking place in Washington. The problem of prescription opioid abuse is a complex one and we advocate for a multifaceted solution that includes many of the themes identified over the last few months during hearings in Washington. These solutions include prescription opioid limits, prescription drug monitoring programs, prescriber education, access to addiction and rescue treatments and a development of innovative pain treatment options.

While the effort to identify potent medicines to treat severe pain that have a lower abuse liability continues the reality is that traditional opioids are necessary for patients with severe pain where alternative treatments are inadequate.

In this interim it makes sense that when an opioid is prescribed it should be in an abusive deterrent formulation. The actions and the words of the FDA show support for ADS. In fact, on October 5th at the Senate health committee hearing Dr. Gottlieb said "the FDA strongly supports the transition from conventional opioids to opioids that have meaningful abuse deterrent properties".

He made the same statement the following week on October 11th at the Energy and Commerce Committee hearing. Also at that hearing when asked about cutting-edge research Dr. Nora Volkow of NIDA responded that abuse deterrent formulations are examples of cutting edge research. Dr. Gottlieb also highlighted the issue with reimbursement of ADS.

He shared that there's a preferential treatment on formularies for inexpensive generic opioids and stated that "we should find incentives to use these abuse deterrent formula drugs".

These are a few recent statements that support the development and adoption of ADS. On October 5th I had the honor of attending a Health and Human Services Roundtable where senior biotech leaders had an opportunity to share the work that their companies are doing and made suggestions on what additional steps HHS could take to address the prescription opioid epidemic.

There were a few things that came out including the following; seeing consistency in the FDA continuing to approve non-ADS forms of opioids. CMS, not supporting access to abuse deterrent formulations for Medicare and Medicaid patients.

The implications of payers not covering these products and the complicated requirements to develop novel pain treatments. We plan to continue to have a presence at the state and federal level to advocate for adoption of products like SPRIX with a lower abuse potential and for abuse deterrent formulations when an opioid is warranted.

As it relates to our pipeline the phase 3 program for Egalet 002 are abuse deterrent extended release Oxycodone developed using our guardian technology is ongoing. The phase 3 studies have been fully enrolled and dosing has been completed. We anticipate having results from these studies by year end.

Assuming positive results this could provide a business, development opportunity given that we're not planning to move this program forward on our own at this point.

Having closed a $30 million equity offering in the third quarter we believe that we’re well position to closing the quarter with over $102 million in cash, to support our operations into 2020.

Now I will turn the call over to Stan Musial, our CFO, who will provide the full financial update for the 2017 third quarter. Stan?

Stan Musial

Thanks Bob. As Bob stated, as of September 30, 2017 the company had cash, cash equivalents, and marketable securities totaling $102.1 million which we believe based on future revenue and expense expectations will be sufficient to take us into 2020

Net product sales revenue was $6.7 million for the quarter ended September 30, 2017, compared to $4.7 million for the quarter ended September 30, 2016.

Cost of sales was $1.2 million for the third quarter ended September 30, 2017, compared to $914,000 for the third quarter of 2016. Cost of sales for the quarter ended September 30, 2017, reflect the average cost of inventory produced and dispensed to patients.

General and administrative expenses decreased to $6.8 million for the third quarter 2017, from $8.0 million for the third quarter 2016. The decrease was primarily attributable to expenses relating to ARYMO ER FDA advisory committee that was held in the third quarter of 2016.

Sales and marketing expenses increased to $8.8 million for the third quarter ended 2017, from $7 million in the third quarter 2016. This increase was primarily attributable to sales and marketing support related to ARYMO ER.

Research and development expenses decreased to $2.1 million for the quarter ended September 30, 2017, from $12.7 million for the quarter ended September 30, 2016. The decreased was primarily driven by decrease costs for the development of EG-002, ARYMO ER, and OXAYDO all of which took place last year.

Total cost and expenses for the third quarter 2017 totaled $22.5 million, a reduction of 20% from total cost and expense of $28 million incurred during the second quarter of 2017. The reduction in expenses reflects our previously announced efforts to prioritize projects, reduce our non-sales workforce along with elimination of certain other expenditures and other non-recurring expenses.

Interest expense increased to $4.8 million for the quarter ended September 30, 2017, from $3.6 million for the same period in 2016.

Interest expense for the third quarter 2017 was primarily attributable to the 13% senior secured notes which were issued in August 2016 and January 2017. As of September 30, 2017, we had -- Egalet had 43.1 million common shares outstanding. The net loss for the quarter ended September 30, 2017 was $19.1 million or $0.46 per share compared to a net loss of $27 million or a $0.10 per share for the quarter ended September 30, 2016.

Now I will turn the call back over to Bob. Bob?

Bob Radie

Great, thanks Stan. In the fourth quarter we're continually focused on commercial execution. We're committed to protecting our brands and driving growth with all three of our products and working to expand commercial access. In addition, we continue to pursue business development opportunities to add late stage products to our portfolio in areas that complement our business. Also, we plan to evaluate partnership opportunities for SPRIX similar to our arrangements with ASCEND Therapeutics.

At this time, we're happy to take any questions, Cherie can you please open the line for questions.

Question-and-Answer Session

Operator

Certainly, sir. We'll now begin the question-and-answer session. [Operator Instructions] The first question comes from Jason Butler of JMP Securities. Please go ahead.

Jason Butler

So first sorry if I missed it but could you break out the net revenue for OXAYDO and ARYMO?

Stan Musial

So, for OXAYDO the net revenue for the quarter was 1.4 million and for ARYMO it was 200,000.

Jason Butler

And then just in terms of the gross to net for ARYMO, can you talk about where you think you can go in 2018 as you continue to improve the reimbursement coverage and have more reimbursement wins?

Bob Radie

Obviously, we were talking about coverage earlier, we've made some real improvements on the coverage side of things but I think we also highlighted that even in commercial plans where we are covered there's still a significant place where we have prior authorizations and step edits and so we're working hard to improve that formulary position.

We're also working with the government payers, so Medicare, Medicaid, as I said very early on that we didn't expect to have significant wins. On the Medicare side of things, Part D until 2019, obviously we had early win that we just announced earlier this week and we're going to continue to look for early wins like that but I think until we improve that access that we'll continue to see challenges from a gross to net perspective, we do expect it to improve in 2018 and we'll continue to do all we can to improve the access. So, the extent of that of improvement is difficult to prognosticate right now.

Jason Butler

Then for SPRIX can you just remind us of the settlement terms for the generic filer and how would new formulations from you impact that settlement if at all?

Bob Radie

So, the settlement was for the opportunity for the filer to actually sell and authorize generic as early as March of this year that would for 180 days which we would have to provide products that would be at a cost plus and then the actual patterns expire in December of 2018. So that’s the best thing of the settlement at this point in time.

And then in terms of the new formulation, so obviously we're still doing some work here but the thought process would be to look for and develop a formulation that would offer improvements in the product profile, ideally also be patentable and extend and also have a patent that would extend the life of its product in a differentiated form.

Unidentified Analyst

Okay great and then just last question for me, for OXAYDO, can you talk about what the possible scenarios to move forward the 10 and 15 milligram doses are at this point.

Bob Radie

Sure, so if you recall we received the CRL for the product this summer, if CRL identified really two questions or that the agency was looking for further characterization on one, was the effective food on the 15-milligram dose and the other was further characterizing the intranasal human abuse potential properties of these higher dosage strengths.

So, we're still contemplating how best to address those issues with the FDA, we really haven't made any final decisions regarding that and I guess we just say that once we have made any decisions we will be communicating that moving forward.

Operator

The next question is from Annabel Samimy of Stifel. Please go ahead.

Unidentified Analyst

This is [indiscernible] on for Annabel Samimy. First of all, congratulations on the recent addition of ARYMO to Medicare Part D plan. So first, can you tell whether the recent public house and emergency that was cleared by the federal government any sort of specifications back on how you meet on the business, how you speak with payers and how it impacts the Medicare and medicate negotiations.

Bob Radie

So obviously as we think about the national emergency and the declaration from the President to us, it is obviously continuing to highlight the importance of the efforts that all folks are putting into address this issue. Exactly how that’s is going to fold in terms of potential funds, support for innovation, all that I think is still being determined and ironed out at this point in time.

At the highest level I will just say that it certainly continues to bring in a very significant spotlight, the challenge that we're facing in our country right now with this issue and the balancing act of making sure that post medications like traditional opioids are available for the legitimate paying patients who can't live functional lives without them but also that we find a way to make products like this available in a way that hopefully deters abuse going forward.

So, we also know that [indiscernible] has come out and made a strong statement that they believe ADS are part of the cutting-edge research that everybody is calling on and obviously we find ourselves in a place in time where there's a need for potent pain medications that don't have as high an abuse liability and I think here at Egalet we completely agree with that and support that.

The reality though is that that there's going to be the interim period between where we are today and that moment in time whenever that maybe and that's where we think the ADS really are the right solutions during this interim period.

Unidentified Analyst

And then just a separate follow-up, regarding the settlement with the [indiscernible] SPRIX would the new formulation be part of that settlement or would there be -- would you have to renegotiate settlement if the formulation gains patent approval?

Bob Radie

So, the goal here would be to the work that we're doing would not be applicable to the settlement.

Operator

The next question is from Brandon Folkes of Cantor Fitzgerald. Please go ahead, sir.

Brandon Folkes

What do you think insurers need to see to convince them of the value of [ADS], do you expect you have to enter into verified contracts with insurers to gain coverage in future?

And then you mentioned the comment about Dr. Gottlieb in terms of incentives to use ADS, I just last to get a bit of your thoughts there on what these may look like, and then secondly did you see anything in the [indiscernible] approval that maybe a positive read through for these internasal labeling on ARYMO, we could expect next year?

Bob Radie

I'll try to address all three of these. In terms of what do insurers need to see the value of ADS, we've been surprised at the general lack of understanding not just with healthcare professionals, but I think amongst those that make decisions within insurers and payers, about just what these abuse deterrent formulations do, the types of abuse that they deter, the need for these products, a bit of a naïve [indiscernible] I think on the part of insurers as it relates to the issue of diversion, where they're often thinking about the covered life but not perhaps the other covered lives associated with that same insured patient like children at home, teenagers, who might look to get their hands on legitimately prescribed product for issues for purposes of abuse.

And so just I would start at the beginning of that question to say that it's just a lot of education and we find ourselves having those types of discussions with those that are clinically oriented at these various insurance companies and doing a lot of education my guess is similar to what the other abuse deterrent companies are doing as well.

On the value side of things, I know that there's been some published work showing the overall impact of minimizing harm and then what the economics associated with that are.

We've also put some work out around our harm reduction model, at recent meetings in [post-recession], so I think we're working to provide that type of information to these payers as well.

And certainly, one of the goals I think would be to have more information over time as we are all involved in doing required post marketing studies to show the impact of these products in the real world and as more of that data becomes available over the coming years I think that will certainly move the needle with payers.

And yes, we are absolutely open to and interested and developing value based contracts to find ways to share risk if you will with these payers and there will be more to come on that moving forward.

To your second question about Scott Gottlieb's statements during both the help and energy in commerce committee meeting and the comment he made around incentives, we were really encouraged by this primarily because it’s the first time we know of the government I guess somebody in a position like Scott recognizing while they have gone ahead and approved a number of these products ten products plus at this point in time, they are now recognizing that insurers are putting up barriers to the actual adoption of these products.

And so, they can approve it as many as they wanted if they don’t start to weigh in on what can they do to incentivize the use of these products. It becomes a little bit [chicken on egg] problem and so, we're encouraged by that statement in terms of they meant by incentives we’re less clear on this point in time but certainly we’re very active both as an individual company and coloration with other companies trying to understand and provide inputs as to what types of incentives might make some sense but I think it all start with awareness. Awareness that the federal government that we're facing challenges to get these abuse deterrent formulations available to patients and physicians who want to prescribe them and reimburse without significant burden on the patient.

Brian you last question around [indiscernible] any read through, I would again just say that to be very encouraging to see the agency continuing to support ADS to start to understand and recognize the differences between and on the case of ARYMO ADF product versus primary use morphine formulation used in extended release in the U.S. being a non-ADF typically generic version and being really decrypting in a label highlight that and of course in the case of [indiscernible] highlighting one some of the differences between a two branded ADF products and the agency has said that they want to drive towards incremental improvements and certainly that’s an indication that they are acting in that regard. And yes. Hopefully Brian that answer your questions.

Operator

The next question is from Kevin [indiscernible]. Please go ahead.

Unidentified Analyst

First, I want to ask, what are you guys seeing out there with competitive products, MorphaBond, what impact you are seeing in the field from that or are they showing up -- you guys are out there trying to talk with payers as far as negotiations.

And then secondly when do we start to expect to see revenue growth tracking with prescription growth, you guys are obviously doing well prescription growth trends, will we start to see that in 2018 and I just have a couple of follow ups.

Bob Radie

So, Kevin thanks for your questions. First on MorphaBond, so certainly we know that they have launched their promotional efforts over the last month or so, I think this is the right time frame and our view on this hasn’t changed at all. We believe that having a company with the resources and strengths of their sales force out there is a positive, selling out, talking to physicians about the attributes of an abuse deterrent products and specifically indicates of MorphaBond having another company out there talking about the attributes of an abuse deterrent morphine formulation, it really Pfizer has a small presence but this is a much larger presence.

We think this is good, we think that certainly ARYMO can benefit from having that we know that they're in many of the offices, that we're in, we also know the remaining offices that we're not in because we obviously don't have the same reach that they do, but I think generally in the offices that we're in we think having another company is causing the benefits of abuse deterrent formulation, it's causing the benefits of morphine is only a positive and will help with our efforts with ARYMO as well.

So, that kind of our view from a payer perspective I would say that we're starting to hear, that they're beginning to make presentations but this is an area where we obviously felt having the lead time that we had out in advance event in front of payers is to our benefit, we've announced a couple of key wins over the last -- since the launch of ARYMO, both the commercial plans and the recent Medicare Part D, when they were hoping that some of the efforts that we've had with plans that we haven't finalized anything yet will pay off here as well, so certainly but we're starting to see them there.

In terms of your question about revenue matching up to prescriptions I mean great question, we're really excited about more than doubling of the prescriptions from second quarter to first quarter, the gross revenue numbers obviously significantly higher, we just did the average math here, of about 1.5 million in gross revenue but we're still under significant challenges from a getting payer access and so that goes back to the question asked earlier.

We'll continue -- how it's going to be reflected going into 2018 is by continuing to get managed care wins, moving ARYMO in places where we are blocked to available and places where we are available but still require step edits or prior ops to tier three preferred without those step edits.

Just remembering that in most instances where we're blocked or require those types of hurdles are required, we're doing everything we can to make that product, make ARYMO accessible to patients even if we have to buy those early prescriptions down significantly, and that of course is what's driving that big gross to net impact, but that will improve and that’s why you heard sort of in the perspective comments we made at the beginning of the call why we have so focused on market access as a commercial organization.

Unidentified Analyst

And then Stan want to ask, first you guys are doing a great job on bringing down cost structure of the business, so a little bit more to go from that run rate at least of 55 million to 60 million run rate coming out of 2018, what line items should we expect to see the costs coming down as we head into 2018.

And then just want to ask about the economics of the ASCEND, how does that flow through the P&L for your guys?

Bob Radie

So, from an overall perspective in 2018 compared to '17 we would expect two primary line items to go down, one would be G&A, again reflecting some of the reduction in work force, additionally you may recall that we had a one-time catch up this year with regards to joining the opioid consortium which was roughly $4 million to $5 million in the second quarter.

So, G&A will continue to decline in 2018 and more significantly the R&D as we focus more on commercial execution less on developing the additional products in the pipeline, we would expect a significant reduction in R&D in 2018 compared to '17. You may also recall that in '17 a lot of the R&D was driven by the Egalet 002 phase 3 clinical trials which have now rapped up and will be in that burn for 2018.

From the ASCEND deal we both in growth and net and then there is a profit sharing agreement with them in place, so that will primarily be in the net revenue reflection as we move forward.

Operator

The next question is from John [indiscernible]. Please go ahead.

Unidentified Analyst

First question on just some forecasting items, in terms of restructuring charges, will we see another in the fourth quarter.

Stan Musial

It's not our expectation if we will see additional, we believe we appropriately captured everything based on our decision to do that during the third quarter and the number on the restructuring line in our press release and will be reflected in our 10-K.

Unidentified Analyst

Okay and then we also saw that reduction from earlier quarters and G&A then also in R&D and should we expected third quarter levels to continue in the fourth quarter or for this two months in R&D and G&A

Stan Musial

I think G&A will be probably -- our expectations would be similar for fourth quarter, in R&D the number has been declining over the year and then we would expect it to be probably in line with what we saw in the third quarter.

Unidentified Analyst

And you know we've seen a number of payers at this year, kind this one you can talk through -- and I guess would be kind of [indiscernible] of how you ramp up to a steady state with these groups and kind of the term of that trend.

Bob Radie

So, John this is Bob, you know one of the things that you’re up against when you launch a product in any given calendar year is when that plan reviews the class of drug in their normal cycle and so for many plans at the mercy of the next time.

So, we been working hard to getting front of a lot of this plans but sometimes we’re at the mercy of when are they even look at this class or contemplate making addition. So, we continue to go out and speak to obviously all of the larger payers across the country on the commercial side as well as even some of the larger regional players and then as stated earlier we’re meeting with and doing all of the necessary paper work and following the necessary processes from a government payer prospective going through what's necessary this quarter to fill our all the appropriate paper work for Medicare coverage in 2019.

So, the bids are going out this fall for '19 and of course we missed that window because we didn’t have approval for ARYMO at the end -- in the fall of '16, we missed that window for 2018, doesn't mean we can't potentially get wins with Medicare much like we just announced, but it's at the plan level some of these -- commercially insured plans, also have in the Medicare Part D insured patients as well.

So, we'll continue to chip away, we're optimistic and that is going to be the single biggest driver of improvements in gross to nets is our ability to improve ARYMO status on these various insurance plans.

So more to come there, of course in the interim our field force is out there trying to generate demand, and as we've shown -- we're definitely growing quarter-on-quarter which like I said doubling of prescriptions in Q3 over Q2 as well as a significant jump in the base of prescribers during that period of time.

Unidentified Analyst

And we've also seen [Sensa] approved and a few payers pick it up on their formularies, does that bode well for the ADS class as a whole, the payers picking it up? I think [CIGNA] was one example and then I think the blue -- I saw some blues as well announced?

Bob Radie

So, there's definitely been a focus on more adoption of the whole class, of abuse deterrent products and we're certainly starting to see payers recognize the importance of these products and then just the sheer number of abuse deterrent formulations that are out there now, so we're seeing more-and-more formularies picking up on abuse deterrent forms of opioids going forward.

Operator

There're no further questions at this time. I'd like to turn the conference back over to Mr. Bob Radie for any closing remarks.

Bob Radie

Thank you, Cherie, and thanks everyone for joining this morning. We appreciate your interest in Egalet. And obviously look forward to updating you on our fourth quarter earnings call. Thanks very much.

Operator

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.